U.S. Copyright Office Issues Final Payment and Statement of Account Regulations for Section 115 Statutory License
Issue No. 561 - September 18, 2014
The United States Copyright Office is issuing a final rule to implement section 115(c)(5) of the Copyright Act of 1976, title 17 of the United States Code. Section 115 establishes a compulsory license for the making and distribution of phonorecords of nondramatic musical works. Section 115(c)(5), in turn, requires the Register of Copyrights to prescribe by regulation the procedures for the monthly payment of royalties and preparation and service of monthly and annual statements of account by licensees. This final rule updates the existing payment and statement-of-account regulations in response to legal and marketplace developments, including the Copyright Royalty Board’s adoption of newer percentage-of-revenue royalty rate structures for certain digital music services, and changes in accounting and industry practice in the years since the rules were last substantially amended.