Page:United States Statutes at Large Volume 116 Part 4.djvu/355

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PUBLIC LAW 107-321—DEC. 4, 2002 116 STAT. 2783 sound recordings and ephemeral recordings, pursuant to sections 112 and 114. "(E) As used in this paragraph— "(i) the term 'noncommercial webcaster* means a webcaster that— "(I) is exempt from taxation under section 501 of the Internal Revenue Code of 1986 (26 U.S.C. 501); "(II) has applied in good faith to the Internal Revenue Service for exemption from taxation under section 501 of the Internal Revenue Code and has a commercially reasonable expectation that such exemption shall be granted; or "(III) is operated by a State or possession or any governmental entity or subordinate thereof, or by the United States or District of Columbia, for exclusively public purposes; "(ii) the term 'receiving agent' shall have the meaning given that term in section 261.2 of title 37, Code of Federal Regulations, as published in the Federal Register on July 8, 2002; and "(iii) the term 'webcaster* means a person or entity that has obtained a compulsory license under section 112 or 114 and the implementing regulations therefor to make eligible nonsubscription trsinsmissions and ephemeral recordings. "(F) The authority to make settlements pursuant to Expiration date, subparagraph (A) shall expire December 15, 2002, except with respect to noncommercial webcasters for whom the authority shall expire May 31, 2003.". SEC. 5. DEDUCTIBILITY OF COSTS AND EXPENSES OF AGENTS AND DIRECT PAYMENT TO ARTISTS OF ROYALTIES FOR DIG- ITAL PERFORMANCES OF SOUND RECORDINGS. (a) FINDINGS. —Congress finds that— 17 USC 114 note. (1) in the case of royalty payments from the licensing of digital transmissions of sound recordings under subsection (f) of section 114 of title 17, United States Code, the parties have voluntarily negotiated arrangements under which pay- ments shall be made directly to featured recording artists and the administrators of the accounts provided in subsection (g)(2) of that section; (2) such voluntarily negotiated payment arrangements have been codified in regulations issued by the Librarian of Congress, currently found in section 261.4 of title 37, Code of Federal Regulations, as published in the Federal Register on July 8, 2002; (3) other regulations issued by the Librarian of Congress were inconsistent with the voluntarily negotiated arrangements by such parties concerning the deductibility of certain costs incurred for licensing and arbitration, and Congress is therefore restoring those terms as originally negotiated among the parties; and (4) in light of the special circumstances described in this subsection, the uncertainty created by the regulations issued by the Librarian of Congress, and the fact that all of the interested parties have reached agreement, the voluntarily