vided 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. For every digital phonorecord delivery by or under the
authority of the compulsory licensee-

(i) on or before December 31, 1997, the royalty payable by the
compulsory licensee shall be the royalty prescribed under paragraph (2)
and chapter 8 of this title; and

(ii) on or after January 1, 1998, the royalty payable by the compulsory
licensee shall be the royalty prescribed under subparagraphs (B) through
(F) and chapter 8 of this title.

(B) Notwithstanding any provision of the antitrust laws, any copyright
owners of nondramatic musical works and any persons entitled to obtain a
compulsory license under subsection (a)(1) may negotiate and agree upon
the terms and rates of royalty payments under this paragraph and the
proportionate division of fees paid among copyright owners, and may
designate common agents to negotiate, agree to, pay or receive such
royalty payments. Such authority to negotiate the terms and rates of
royalty payments includes, but is not limited to, the authority to
negotiate the year during which the royalty rates prescribed under
subparagraphs (B) through (F) and chapter 8 of this title shall next be
determined.

(C) During the period of June 30, 1996, through December 31, 1996, the
Librarian of Congress shall cause notice to be published in the Federal
Register of the initiation of voluntary negotiation proceedings for the
purpose of deter