musicians
(whether or not members of the American Federation of Musicians) who
have performed on sound recordings.

(B) 21/2 percent of the receipts shall be deposited in an escrow account
managed by an independent administrator jointly appointed by copyright
owners of sound recordings and the American Federation of Television and
Radio Artists (or any successor entity) to be distributed to nonfeatured
vocalists (whether or not members of the American Federation of
Television and Radio Artists) who have performed on sound recordings.

(C) 45 percent of the receipts shall be allocated, on a per sound
recording basis, to the recording artist or artists featured on such
sound recording (or the persons conveying rights in the artists'
performance in the sound recordings).

(h) Licensing to Affiliates.-

(1) If the copyright owner of a sound recording licenses an affiliated
entity the right to publicly perform a sound recording by means of a
digital audio transmission under section 106(6), the copyright owner
shall make the licensed sound recording available under section 106(6)
on no less favorable terms and conditions to all bona fide entities that
offer similar services, except that, if there are material differences
in the scope of the requested license with respect to the type of
service, the particular sound recordings licensed, the frequency of use,
the number of subscribers served, or the duration, then the copyright
owner may establish different terms and conditions for such other
services.

(2) The limitation set forth in paragraph (1) of this subsection shall
not apply in the case where the copyright owner of a sound recording
licenses-

(A) an interactive service; or

(B) an entity to perform publicly up to 45 seconds of the sound
recording and the sole purpose of the performance is to promote the
distribution or performance of that sound recording.

(i) No Effect on Royalties for Underlying Works. License fees payable
for the public performance of sound recordings under section 106(6)
shall not be taken into account in any administrative, judicial, or
other governmental proceeding to set or adjust the royalties payable to
copyright owners of musical works for the public performance of their
works. It is the intent of Congress that royalties payable to copyright
owners of musical works for the public performance of their works shall
not be diminished in any respect as a result of the rights granted by