Distribution of certain royalties

Section 114(g) of title 17, United States Code, is amended— (1) in paragraph (1), by inserting or in the case of a transmission to which paragraph (5) applies after this section; (2) by redesignating paragraphs (5), (6), and (7) as paragraphs (6), (7), and (8), respectively; and (3) by inserting after paragraph (4) the following new paragraph: (5) Notwithstanding paragraph (1), to the extent that a license granted by the copyright owner of a sound recording to a transmitting entity eligible for a statutory license under subsection (d)(2) extends to such entity’s transmissions otherwise licensable under a statutory license in accordance with subsection (f), such entity shall pay to the collective designated to distribute statutory licensing receipts from the licensing of transmissions in accordance with subsection (f), 50 percent of the total royalties that such entity is required, pursuant to the applicable license agreement, to pay for such transmissions otherwise licensable under a statutory license in accordance with subsection (f). That collective shall distribute such payments in proportion to the distributions provided in subparagraphs (B) through (D) of paragraph (2), and such payments shall be the only payments to which featured and nonfeatured artists are entitled by virtue of such transmissions under the direct license with such entity..