tant signal equivalent shall
be computed at its fractional value and, in the case of any cable
system located partly within and partly without the local service area
of a primary transmitter, gross receipts shall be limited to those
gross receipts derived from subscribers located without the local
service area of such primary transmitter; and

(C) if the actual gross receipts paid by subscribers to a cable system
for the period covered by the statement for the basic service of
providing secondary transmissions of primary broadcast transmitters
total $80,000 or less, gross receipts of the cable system for the
purpose of this subclause shall be computed by subtracting from such
actual gross receipts the amount by which $80,000 exceeds such actual
gross receipts, except that in no case shall a cable system's gross
receipts be reduced to less that $3,000. The royalty fee payable under
this subclause shall be 0.5 of 1 per centum, regardless of the number
of distant signal equivalents, if any; and

(D) if the actual gross receipts paid by subscribers to a cable system
for the period covered by the statement, for the basic service of
providing secondary transmissions of primary broadcast transmitters,
are more than $80,000 but less than $160,000, the royalty fee payable
under this subclause shall be (i) 0.5 of 1 per centum of any gross
receipts up to $80,000; and (ii) 1 per centum of any gross receipts in
excess of $80,000 but less than $160,000, regardless of the number of
distant signal equivalents, if any.

(3) 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. The Register shall submit to the Copyright
royalty Tribunal, on a semiannual basis, a compilation of all
statements of account covering the relevant six-month period provided
by clause (2) of this subsection.

(4) The royalty fees thus deposited shall, in accordance with the
procedures provided by clause (5), be distributed to those among the
following copyright owners who claim that their works were the subject
of