The owner is entitled to royalties for
phonorecords made and distributed after being so identified, but is not
entitled to recover for any phonorecords previously made and
distributed.
(2) Except as provided by clause (1), the royalty under a compulsory
license shall be payable for every phonorecord made and distributed in
accordance with the license. For this purpose, and other than as
provided in paragraph (3), a phonorecord is considered "distributed" if
the person exercising the compulsory license has voluntarily and
permanently parted with its possession. With respect to each work
embodied in the phonorecord, the royalty shall be either two and three-
fourths cents, or one-half of one cent per minute of playing time or
fraction thereof, whichever amount is larger. [51]
(3)(A) A compulsory license under this section includes the right of the
compulsory licensee to distribute or authorize the distribution of a
phonorecord of a nondramatic musical work by means of a digital
transmission which constitutes a digital phonorecord delivery,
regardless of whether the digital transmission is also a public
performance of the sound recording under section 106(6) of this title or
of any nondramatic musical work embodied therein under section 106(4) of
this title.
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