mining reasonable terms and rates of royalty payments
for the activities specified by subparagraph (A) during the period
beginning January 1, 1998, and ending on the effective date of any new
terms and rates established pursuant to subparagraph (C), (D) or (F), or
such other date (regarding digital phonorecord deliveries) as the
parties may agree. Such terms and rates shall distinguish between (i)
digital phonorecord deliveries where the reproduction or distribution of
a phonorecord is incidental to the transmission which constitutes the
digital phonorecord delivery, and (ii) digital phonorecord deliveries in
general. Any copyright owners of nondramatic musical works and any
persons entitled to obtain a compulsory license under subsection (a)(1)
may submit to the Librarian of Congress licenses covering such
activities. The parties to each negotiation proceeding shall bear their
own costs.

(D) In the absence of license agreements negotiated under subparagraphs
(B) and (C), upon the filing of a petition in accordance with section
803(a)(1), the Librarian of Congress shall, pursuant to chapter 8,
convene a copyright arbitration royalty panel to determine a schedule of
rates and terms which, subject to subparagraph (E), shall be binding on
all copyright owners of nondramatic musical works and persons entitled
to obtain a compulsory license under subsection (a)(1) during the period
beginning January 1, 1998, and ending on the effective date of any new
terms and rates established pursuant to subparagraph (C), (D) or (F), or
such other date (regarding digital phonorecord deliveries) as may be
determined pursuant to subparagraphs (B) and (C). Such terms and rates
shall distinguish between (i) digital phonorecord deliveries where the
reproduction or distribution of a phonorecord is incidental to the
transmission which constitutes the digital phonorecord delivery, and
(ii) digital phonorecord deliveries in general. In addition to the
objectives set forth in section 801(b)(1), in establishing such rates
and terms, the copyright arbitration royalty panel may consider rates
and terms under voluntary license agreements negotiated as provided in
subparagraphs (B) and (C). The royalty rates payable for a compulsory
license for a digital phonorecord delivery under this section shall be
established de novo and no precedential effect shall be given to the
amount of the royalty payable by a compulsory licensee for digital
phonorecord deli