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-fourths cents, or one-half of one cent
per minute of playing time or fraction thereof, which amount is larger.

(3) A compulsory license under this section includes the right of the
maker of a phonorecord of a nondramatic musical work under subsection
(a)(1) to distribute or authorize distribution of such phonorecord by
rental, lease, or lending (or by acts or practices in the nature of
rental, lease, or lending). In addition to any royalty payable under
clause (2) and chapter 8 of this title, a royalty shall be payable by
the compulsory licensee for every act of distribution of a phonorecord
by or in the nature of rental, lease, or lending, by or under the
authority of the compulsory licensee. With respect to each nondramatic
musical work embodied in the phonorecord, the royalty shall be a
proportion of the revenue received by the compulsory licensee from
every such act of distribution of the phonorecord under this clause
equal to the proportion of the revenue received by the compulsory
licensee from distribution of the phonorecord under clause (2) that is
payable by a compulsory licensee under that clause and under chapter 8.
The Register of Copyrights shall issue regulations to carry out the
purpose of this clause.

(4) 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 a