118 STAT. 2364 PUBLIC LAW 108–419—NOV. 30, 2004 (iii) in the last sentence by striking ‘‘negotiated as provided’’ and inserting ‘‘described in’’; and (C) by amending subparagraph (C) to read as follows: ‘‘(C) The procedures under subparagraphs (A) and (B) shall also be initiated pursuant to a petition filed by any copyright owners of sound recordings or any eligible nonsubscription service or new subscription service indicating that a new type of eligible nonsubscription service or new subscription service on which sound recordings are performed is or is about to become operational, for the purpose of determining reasonable terms and rates of royalty payments with respect to such new type of service for the period beginning with the inception of such new type of service and ending on the date on which the royalty rates and terms for preexisting subscription digital audio transmission services or preexisting satellite digital radio audio services, as the case may be, most recently determined under subparagraph (A) or (B) and chapter 8 expire, or such other period as the parties may agree.’’; (3) in paragraph (3), by striking ‘‘determination by a copy right arbitration royalty panel or decision by the Librarian of Congress’’ and inserting ‘‘decision by the Librarian of Con gress or determination by the Copyright Royalty Judges’’; and (4) in paragraph (4)— (A) by striking ‘‘Librarian of Congress’’ each place it appears and inserting ‘‘Copyright Royalty Judges’’; and (B) by adding after the first sentence of subparagraph (A) the following: ‘‘The notice and recordkeeping rules in effect on the day before the effective date of the Copyright Royalty and Distribution Reform Act of 2004 shall remain in effect unless and until new regulations are promulgated by the Copyright Royalty Judges. If new regulations are promulgated under this subparagraph, the Copyright Roy alty Judges shall take into account the substance and effect of the rules in effect on the day before the effective date of the Copyright Royalty and Distribution Reform Act of 2004 and shall, to the extent practicable, avoid significant disruption of the functions of any designated agent authorized to collect and distribute royalty fees.’’. (d) PHONORECORDS OF NONDRAMATIC MUSICAL WORKS.—Section 115(c)(3) is amended— (1) in subparagraph (A)(ii), by striking ‘‘(F)’’ and inserting ‘‘(E)’’; (2) in subparagraph (B)— (A) by striking ‘‘under this paragraph’’ and inserting ‘‘under this section’’; (B) by inserting ‘‘on a nonexclusive basis’’ after ‘‘common agents’’; and (C) by striking ‘‘subparagraphs (C) through (F)’’ and inserting ‘‘this subparagraph and subparagraphs (C) through (E)’’; and (3) in subparagraph (C)— (A) by amending the first sentence to read as follows: ‘‘Proceedings under chapter 8 shall determine reasonable rates and terms of royalty payments for the activities speci fied by this section during the period beginning with the effective date of such rates and terms, but not earlier than January 1 of the second year following the year in
�
