The Compulsory License for Digital Performance
Performers are affected by compulsory licenses governing the use of sound recording. Sound recordings do not have general performance rights. So when an over-the-air radio station plays a song, performers cannot expect any compensation much less prevent the station from playing it.
In 1995, the Digital Performance Right in Sound Recordings Act (DPRSRA) introduced a performance right for sound recordings transmitted digitally. The concern behind this legislation was that digital technologies would enable consumers to substitute digital subscriptions for record purchases and this would deplete the stream of revenue for copyright owners of sound recordings. Purchase of records would further go down because of increased home taping.
The DPRSRA creates three classes of users. The first class of users, mainly terrestrial broadcasters of free radio and television programming, are completely exempt from the right. The second class, consisting of non-interactive subscription services such as XM and Sirius radio and Internet radio are subjected to a compulsory license. The third class, consisting of interactive services such as limited downloads, does not get the benefit of the license. They have to negotiate directly with the copyright owners.
The compulsory license discriminates between non-interactive subscriptions services established before July 31, 1998 and those established later. It requires all services to satisfy the following conditions to qualify for the license:
Services will not play more than two consecutive selections from single album in a 3 hour period.
Services will not give advance notice to consumers about selection that will be played.
New services have to meet following additional conditions:
Avoid giving advance notice of names of featured artists.
Limitations on retransmitting archived programs.
Do not abet consumer copying.
Take reasonable steps to assure that technological protection measures will function.
