/* We continue on with Chapter 1 of the Copyright Code. Section

117 is specifically about computers!*/

S 114. Scope of exclusive rights in sound recordings

(a) The exclusive rights of the owner of copyright in a sound

recording are limited to the rights specified by clauses (1),

(2), and (3) of section 106 [17 USC S 106 (1)-(3)], and do not

include any right of performance under section 106(4) [17 USC S

106(4)].

(b) The exclusive right of the owner of copyright in a sound

recording under clause (1) of section 106 [17 USC S 106(1)] is

limited to the right to duplicate the sound recording in the form

of phonorecords, or of copies of motion pictures and other

audiovisual works, that directly or indirectly recapture the

actual sounds fixed in the recording. The exclusive right of the

owner of copyright in a sound recording under clause (2) of

section 106 [17 USC S 106(2)] is limited to the right to prepare

a derivative work in which the actual sounds fixed in the sound

recording are rearranged, remixed, or otherwise altered in

sequence or quality. The exclusive rights of the owner of

copyright in sound recording under clauses (1) and (2) of section

106 [17 USC S 106(1) and (2)] do not extend to the making of

duplication of another sound recording that consists entirely of

an independent fixation of other sounds, even though such sounds

imitate or simulate those in the copyrighted sound recording. The

exclusive rights of the owner of copyright in a sound recording

under clause (1), (2), and (3) of section 106 [17 USC S

106(1)-(3)] do not apply to sound recordings included in

educational television and radio programs (as defined in section

397 of title 47) [47 USC S 397] distributed or transmitted by or

through public broadcasting entities (as defined by section

118(g) [17 USC S 118(g)]), Provided, That copies or phonorecords

of said programs are not commercially distributed by or through

public broadcasting entities to the general public.

(c) This section does not limit or impair the exclusive right to

perform publicly, by means of a phonorecord, any of the works

specified by section 106(4) [17 USC S 106(4)].

(d) On January 3, 1978, the Register of Copyrights, after

consulting with representatives of owners of copyrighted

materials, representatives of the broadcasting, recording, motion

picture, entertainment industries, and arts organizations,

representatives of organized labor and performers of copyrighted

materials, shall submit to the Congress a report setting forth

recommendations as to whether this section should be amended to

provide for performers and copyright owners of copyrighted

material any performance rights in such material. The report

should describe the status of such rights in foreign countries,

the views of major interested parties, and specific legislative

or other recommendations, if any.

S 115. Scope of exclusive rights in nondramatic musical works:

Compulsory license for making and distributing phonorecords

In the case of nondramatic musical works, the exclusive rights

provided by clauses (1) and (3) of section 106 [17 USC S

106(1)-(3)], to make and to distribute phonorecords of such

works, are subject to compulsory licensing under the conditions

specified by this section.

(a) Availability and scope of compulsory license. (1) When

phonorecords of a nondramatic musical work have been

distributed to the public in the United States under the

authority of the copyright owner, any other person may, by

complying with the provisions of this section, obtain a

compulsory license to make and distribute phonorecords of the

work. A person may obtain a compulsory license only if his or

her primary purpose in making phonorecords is to distribute them

to the public for private use. A person may not obtain a

compulsory license for use of the work in the making of

phonorecords duplicating a sound recording fixed by another,

unless: (i) such sound recording was fixed lawfully; and (ii)

the making of the phonorecords was authorized by the owner of

copyright in the sound recording, or, if the sound recording was

fixed before February 15, 1972, by any person who fixed the

sound recording pursuant to an express license from the owner of

the copyright in the musical work or pursuant to a valid

compulsory license for use of such work in a sound recording.

(2) A compulsory license includes the privilege of making a

musical arrangement of the work to the extent necessary to

conform it to the style or manner of interpretation of the

performance involved, but the arrangement shall not change the

basic melody or fundamental character of the work, and shall not

be subject to protection as a derivative work under this title

[17 USC SS 101 et seq.], except with the express consent of the

copyright owner.

(b) Notice of intention to obtain compulsory license. (1) Any

person who wishes to obtain a compulsory license under this

section shall, before or within thirty days after making, and

before distributing any phonorecords of the work, serve notice of

intention to do so on the copyright owner. If the registration or

other public records of the Copyright Office do not identify the

copyright owner and include an address at which notice can be

served, it shall be sufficient to file the notice of intention

in the Copyright Office. The notice shall comply, in form,

content, and manner of service, with requirements that the

Register of Copyrights shall prescribe by regulation.

(2) Failure to serve or file the notice required by clause

(1) forecloses the possibility of a compulsory license and,

in the absence of a negotiated license, renders the making

and distribution of phonorecords actionable as acts of

infringement under section 501 [17 USC S 501] and fully

subject to the remedies provided by sections 502 through 506

and 509 [17 USC SS 502-506, 509].

(c) Royalty payable under compulsory license. (1) To be entitled

to receive royalties under a compulsory license, the copyright

owner must be identified in the registration or other public

records of the Copyright Office. 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, 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-fourth cents, or one-half of one cent per minute of

playing time or fraction thereof, whichever amount is larger.

(3) Royalty payments shall be made on or before the twentieth

day of each month and shall include all royalties for the month

next preceding. Each monthly payment shall be made under oath and

shall comply with requirements that the Register of Copyrights

shall prescribe by regulation. The Register shall also

prescribe regulations under which detailed cumulative annual

statements of account, certified by a certified public

accountant, shall be filed for every compulsory license under

this section. The regulations covering both the monthly and

the annual statements of account shall prescribe the form,

content, and manner of certification with respect to the number

of records made and the number of records distributed. (4) If

the copyright owner does not receive the monthly payment and

monthly and annual statements of account when due, the owner

may give written notice to the licensee that, unless the default

is remedied within thirty days from the date of the notice, the

compulsory license will be automati- cally terminated. Such

termination renders either the making or the distribution, or

both, of all phonorecords for which the royalty has not been

paid, actionable as acts of infringement under section 501 [17

USC S 501] and fully subject to the remedies provided by

sections 502 through 506 and 509 [17 USC SS 502-506, 509].

S 116. Scope of exclusive rights in nondramatic musical works:

Public Performances by means of coin-operated phonorecord players

(a) Limitation on exclusive right. In the case of a nondramatic

musical work embodied in a phonorecord, the exclusive right under

clause (4) of section 106 [17 USC S 106(4)] to perform the work

publicly by means of a coin-operated phonorecord player is

limited as follows:

(1) The proprietor of the establishment in which the public

performance takes place is not liable for infringement with

respect to such public performance unless --

(A) such proprietor is the operator of the phonorecord

player; or

(B) such proprietor refuses or fails, within one month after

receipt by registered or certified mail of a request, at a time

during which the certificate required by clause (1)(C) of

subsection (b) is not affixed to the phonorecord player, by the

copyright owner, to make full disclosure, by registered or

certified mail, of the identity of the operator of the

phonorecord player.

(2) The operator of the coin-operated phonorecord player may

obtain a compulsory license to perform the work publicly on that

phonorecord player by filing the application, affixing the

certificate, and paying the royalties provided by subsection (b).

(b) Recordation of coin-operated phonorecord player, affixation

of certificate, and royalty payable under compulsory license.

(1) Any operator who wishes to obtain a compulsory license for

the public performance of works on a coin- operated

phonorecord player shall fulfill the following requirements: (A)

Before or within one month after such performances are made

available on a particular phonorecord player, and during the

month of January in each succeeding year that such performances

are made available on that particular phonorecord player, the

operator shall file in the Copyright Office, in

accordance with requirements that the Register of

Copyrights, after consultation with the Copyright Royalty

Tribunal (if and when the Tribunal has been constituted),

shall prescribe by regulation, an application containing the

name and address of the operator of the phonorecord player

and the manufacturer and serial number or other explicit

identification of the phonorecord player, and deposit with the

Register of Copyrights a royalty fee for the calendar year of

$8 for that particular pho- norecord player. If such

performances are	made available on a particular phonorecord

player for the first time after July 1 of any year, the royalty

fee to be deposited for the remainder of that year shall be

$4. (B) Within twenty days of receipt of an application and a

royalty fee pursuant to subclause (A), the Register of

Copyrights shall issue to the applicant a certifi- cate for the

phonorecord player. (C) On or before March 1 of the year in

which the certificate prescribed by subclause (B) of this

clause is issued, or within ten days after the date of issue of

the certificate, the operator shall affix to the particular

phonorecord player, in a position where it can be readily

examined by the public, the certificate, issued by the Register

of Copyrights under subclause (B), of the latest application

made by such operator under subclause (A) of this clause with

respect to that phonorecord player. (2) Failure to file the

application, to affix the certifi- cate, or to pay the royalty

required by clause (1) of this subsection renders the public

performance actionable as an act of infringement under section

501 [17 USC S 501] and fully subject to the remedies

provided by sections 520 through 506 and 509 [17 USC SS

502-506, 509].

(c) Distribution of royalties. (1) The Register of Copyrights

shall receive all fees deposited under this section and, after

deducting the reasonable costs incurred by the Copyright Office

under this section, shall deposit the balance in the Treasury of

the United States, in such manner as the Secretary of the

Treasury directs. All funds held by the Secretary of the

Treasury shall be invested in interest- bearing United States

securities for later distribution with interest by the Copyright

Royalty Tribunal as provided by this title [17 USC SS 101 et

seq.]. The Register shall submit to the Copyright Royalty

Tribunal, on an annual basis, a detailed statement of account

covering all fees received for the relevant period provided by

subsection (b).

(2) During the month of January in each year, every person

claiming to be entitled to compulsory license fees under this

section shall file a claim with the Copyright Royalty Tribunal,

in accordance with requirements that the Tribunal shall prescribe

by regulation. Such claim shall include an agreement to accept

as final, except as provided in section 810 of this title [17 USC

S 810], the determination of the Copyright Royalty Tribunal in

any controversy concerning the distribution of royalty fees

deposited under subclause (A) of subsection (b)(1) of this

section to which the claimant is a party. Notwithstanding any

provisions of the antitrust laws, for purposes of this subsection

any claimants may agree among themselves as to the proportionate

division of compulsory licensing fees among them, may lump their

claims together and file them jointly or as a single claim, or

may designate a common agent to receive payment on their behalf.

(3) After the first day of October of each year, the Copyright

Royalty Tribunal shall determine whether there exists a

controversy concerning the distribution of royalty fees deposited

under subclause (A) of subsection (b)(1). If the Tribunal

determines that no such controversy exists, it shall, after

deducting its reasonable administrative costs under this

section, distribute such fees to the copyright owners entitled,

or to their designated agents. If it finds that such a

controversy exists, it shall, pursuant to chapter 8 of this title

[17 USC SS 801 et seq.], conduct a proceeding to determine the

distribution of royalty fees. (4) The fees to be distributed

shall be divided as follows: (A) to every copyright owner not

affiliated with a performing rights society, the pro rata share

of the fees to be distributed to which such copyright owner

proves entitlement. (B) to performing rights societies, the

remainder of the fees to be distributed in such pro rata shares

as they shall by agreement stipulate among themselves, or, if

they fail to agree, the pro rata share to which such performing

rights societies prove entitlement. (C) during the pendency of

any proceeding under this section, the Copyright Royalty Tribunal

shall withhold from distribution an amount sufficient to satisfy

all claims with respect to which a controversy exists, but shall

have discretion to proceed to distribute any amounts that are

not in controversy. (5) The Copyright Royalty Tribunal shall

promulgate regulations under which persons who can reasonably be

expected to have claims may, during the year in which

performances take place, without expense to or harassment of

operators or proprietors of establishments in which phonorecord

players are located, have such access to such establishments and

to the phonorecord players located therein and such opportunity

to obtain information with respect thereto as may be reasonably

necessary to determine, by sampling procedures or otherwise,

the proportion of contribution of the musical works of each such

person to the earnings of the phonorecord players for which fees

shall have been deposited. Any person who alleges that he or she

has been denied the access permitted under the regulations

prescribed by the Copyright Royalty Tribunal may bring an action

in the United States District Court for the District of Columbia

for the cancellation of the compulsory license of the phonorecord

player to which such access has been denied, and the court

shall have the power to declare the compulsory license thereof

invalid from the date of issue thereof.

(d) Criminal penalties. Any person who knowingly makes a false

representation of a material fact in an application filed under

clause (1)(A) of subsection (b), or who knowingly alters a

certificate issued under clause (1)(B) of subsection (b)

or knowingly affixes such a certificate to a phonorecord player

other than the one it covers, shall be fined not more than

$2,500.

(e) Definitions. As used in this section, the following terms

and their variant forms mean the following:

(1) A "coin-operated phonorecord player" is a machine or

device that --

(A) is employed solely for the performance of nondramatic musical

works by means of phonorecords upon being activated by insertion

of coins, currency, tokens, or other monetary units or their

equivalent;

(B) is located in an establishment making no direct or indirect

charge for admission; (C) is accompanied by a list of the titles

of all the musical works available for performance on it,

which list is affixed to the phonorecord player or posted in the

establishment in a prominent position where it can be readily

examined by the public; and (D) affords a choice of works

available for performance and permits the choice to be made by

the patrons of the establishment in which it is located.

(2) An "operator" is any person who, alone or jointly with

others: (A) owns a coin-operated phonorecord player; or (B) has

the power to make a coin-operated phonorecord player available

for placement in an establishment for purposes of public

performance; or (C) has the power to exercise primary control

over the selection of the musical works made available for public

performance on a coin-operated phonorecord player.

(3) A "performing rights society" is an association or

corporation that licenses the public performance of nondramatic

musical works on behalf of the copyright owners, such as the

American Society of Composers, Authors and Publishers, Broadcast

Music, Inc., and SESAC, Inc.

/* We begin with the original wording of this section; on Dec. 2,

1980, the Congress changed this section. The present wording of

this section follows second.*/

S 117. Scope of exclusive rights: Use in conjunction with

computers and similar information systems [ORIGINAL TEXT, changed

on 12/12/80]

Notwithstanding the provisions of sections 106 through 116 and

118 [17 USC SS 106-116,118], this title [17 USC SS 101 et seq.]

does not afford to the owner of copyright in a work any greater

or lesser rights with respect to the use of the work in

conjunction with automatic systems capable of storing,

processing, retrieving, or transferring information, or in

conjunction with any similar device, machine, or process, than

those afforded to works under the law, whether title 17 [17 USC

SS 101 et seq.] or the common law or statutes of a State, in

effect on December 31, 1977, as held applicable and construed by

a court in an action brought under this title [17 USC SS 101 et

seq.].

S 117. Scope of exlusive rights: Use in conjunction with

computers and similar information systems [PRESENT TEXT]

Notwithstanding the provisions of section 106, it is not an

infringement for the owner of a copy of a computer program to

make or authorize the making of another copy or adaptation of

that computer program provided:

(1) that such a new copy or adaptation is created as an

essential step to the utilization of the computer program

in conjunction with a machine and that it is used in no other

manner, or

(2) that such new copy or adaptation is for archival purposes

only and that all archival copies are destroyed in the event

that continued possession of the computer program should cease

to be rightful.

Any exact copies prepared in accordance with the provisions of

this section may be leased, sold, or otherwise transferred,

along with the copy from which such copies were prepared, only

as a part of the lease, sale, or other transfer of all rights

in the program. Adaptaions so prepared may be transferred only

with the authorization of the copyright owner.

/* This package contains all of the cases which we could find

that mention this section. What this section means is that back-

up copies of programs can be made, and that the original

purchaser can "adapt" the program, that is alter the object code

if needed, if it is needed for "an essential step in the use

of the program", whatever that means. (Sorry, little certainty

here!) Further, an adapted copy can only be used by the person

who created the adaptation. The section states a general rule

that computer programs may be sold in their entirety by an owner

to another. Of course this section refers to "owners" and on its

face it would seem that true leases of computer software would

not be covered. Much more problematic is "shrink wrap"

"licensing of computer programs." Cases that construe this

section are: Apple v. Formula, The Various Vault Software Cases,

GCA v. Chance, Micro-Sparc, Rand McNally. The Copyright tutorial

discusses this at length. */

S 118. Scope of exclusive rights: Use of certain works in

connection with noncommercial broadcasting

(a) The exclusive rights provided by section 106 [17 USC S 106]

shall, with respect to the works specified by subsection (b) and

the activities specified by subsection (d), be subject to the

conditions and limitations prescribed by this section.

(b) Not later than thirty days after the Copyright Royalty

Tribunal has been constituted in accordance with section 802 [17

USC S 802], the Chairman of the Tribunal shall cause notice to be

published in the Federal Register of the initiation of

proceedings for the purpose of determining reasonable terms and

rates of royalty payments for the activities specified by

subsection (d) with respect to published nondramatic musical

works and published pictorial, graphic, and sculptural works

during a period beginning as provided in clause (3) of this

subsection and ending on December 31, 1982. Copyright owners and

public broadcasting entities shall negotiate in good faith and

cooperate fully with the Tribunal in an effort to reach

reasonable and expeditious results. Notwithstanding any provision

of the antitrust laws, any owners of copyright in works specified

by this subsection and any public broadcasting entities,

respectively, may negotiate and agree upon the terms and rates

of royalty payments and the proportionate division of fees paid

among various copyright owners, and may designate common agents

to negotiate, agree to, pay, or receive payments.

(1) Any owner of copyright in a work specified in this subsection

or any public broadcasting entity may, within one hundred and

twenty days after publication of the notice specified in this

subsection, submit to the Copyright Royalty Tribunal proposed

licenses covering such activities with respect to such works. The

Copyright Royalty Tribunal shall proceed on the basis of the

proposals submitted to it as well as any other relevant

information. The Copyright Royalty Tribunal shall permit any

interested party to submit information relevant to such

proceedings.

(2) License agreements voluntarily negotiated at any time between

one or more copyright owners and one or more public broadcasting

entities shall be given effect in lieu of any determination by

the Tribunal: Provided, That copies of such agreements are filed

in the Copyright Office within thirty days of execution in

accordance with regulations that the Register of Copyrights shall

prescribe.

(3) Within six months, but not earlier than one hundred and

twenty days, from the date of publication of the notice specified

in this subsection the Copyright Royalty Tribunal shall make a

determination and publish in the Federal Register a schedule of

rates and terms which, subject to clause (2) of this subsection,

shall be binding on all owners of copyright in works specified in

this subsection and public broadcasting entities, regardless of

whether or not such copyright owners and public broadcasting

entities have submitted proposals to the Tribunal. In

establishing such rates and terms the Copyright Royalty Tribunal

may consider the rates for comparable circumstances under

voluntary license agreements negotiated as provided in clause

(2) of this subsection. The Copyright Royalty Tribunal shall also

establish requirements by which copyright owners may receive

reasonable notice of the use of their works under this section,

and under which records of such use shall be kept by public

broadcasting entities.

(4) With respect to the period beginning on the effective date

of this title [17 USC SS 101 et seq.] and ending on the date of

publication of such rates and terms, this title [17 USC SS 101

et seq.] shall not afford to owners of copyright or public

broadcasting entities any greater or lesser rights with respect

to the activities specified in subsection (d) as applied to

works specified in this subsection than those afforded under the

law in effect on December 31, 1977, as held applicable and

construed by a court in an action brought under this title [17

USC SS 101 et seq.].

(c) The initial procedure specified in subsection (b) shall be

repeated and concluded between June 30 and December 31, 1982, and

at five-year intervals thereafter, in accordance with regulations

that the Copyright Royalty Tribunal shall prescribe.

(d) Subject to the transitional provisions of subsection (b)(4),

and to the terms of any voluntary license agreements that have

been negotiated as provided by subsection (b)(2), a public

broadcasting entity may, upon compliance with the provisions of

this section, including the rates and terms established by the

Copyright Royalty Tribunal under subsection (b)(3), engage in the

following activities with respect to published nondramatic

musical works and published pictorial, graphic, and sculptural

works: (1) performance or display of work by or in the course of

a transmission made by a noncommercial educational broadcast

station referred to in subsection (g); and (2) production of a

transmission program, reproduction of copies or phonorecords of

such a transmission program, and distribution of such copies or

phonorecords, where such production, reproduction, or

distribution is made by a nonprofit institution or organization

solely for the purpose of transmissions specified in clause (1);

and (3) the making of reproductions by a governmental body or a

nonprofit institution of a transmission program simultaneously

with its transmission as specified in clause (1), and the

performance or display of the contents of such program under

the conditions specified by clause (1) of section 110 [17 USC

S 110], but only if the reproductions are used for performances

or displays for a period of no more than seven days from the

date of the transmission specified in clause (1), and are

destroyed before or at the end of such period. No person

supplying, in accordance with clause (2), a reproduction of a

transmission program to governmental bodies or nonprofit

institutions under this clause shall have any liability as a

result of failure of such body or institution to destroy

such reproduction: Provided, That it shall have notified such

body or institution of the requirement for such destruction

pursuant to this clause: And provided further, That if such body

or institution itself fails to destroy such reproduction it

shall be deemed to have infringed.

(e) Except as expressly provided in this subsection, this section

shall have no applicability to works other than those specified

in subsection (b). (1) Owners of copyright in nondramatic

literary works and public broadcasting entities may, during

the course of voluntary negotiations,	agree	among

themselves, respectively, as to the terms and rates of royalty

payments without liability under the antitrust laws. Any such

terms and rates of royalty payments shall be effective upon

filing in the Copyright Office, in accordance with regulations

that the Register of Copyrights shall prescribe. (2) On January

3, 1980, the Register of Copyrights, after consulting with

authors and other owners of copyright in nondramatic literary

works and their representatives, and with public broadcasting

entities and their representatives, shall submit to the

Congress a report setting forth the extent to which voluntary

licensing arrangements have been reached with respect to the

use of nondramatic literary works by such broadcast stations.

The report should also describe any problems that may have

arisen, and present legislative or other recommendations, if

warranted.

(f) Nothing in this section shall be construed to permit, beyond

the limits of fair use as provided by section 107 [17 USC S

107], the unauthorized dramatization of a nondramatic musical

work, the production of a transmission program drawn to any

substantial extent from a published compilation of pictorial,

graphic, or sculptural works, or the unauthorized use of any

portion of an audiovisual work.

(g) As used in this section, the term "public broadcasting

entity" means a noncommercial educational broadcast station as

defined in section 397 of title 47 [47 USC S 397] and any

nonprofit institution or organization engaged in the activities

Section 120. Scope of exclusive rights in architectural works

(a) Pictorial representations permitted.-- The copyright in an

architectural work that has been constructed does not include the

right to prevent the making, distributing, or public display or

pircutres, paintings, photographs, or other pictorial

representations of the work, if the building in which the work is

emboided is located in or ordinarily visible from a public place.

(b) Alterations to and destruction of buildings.--

Notwithstanding the provisions of section 106(2), the owners of a

building embodying an archetectural work may, without the consent

of the autor or copyright owner of the architectural work, make

or authorize themaking of alterations to such building, and

destroy or authorize the destruction of such building.