The Audio Home Recording Act of 1992 (AHRA) amended the United States copyright law by adding chapter 10 "Digital Audio Recording Devices and Media." The act enabled the release of recordable digital formats such as Sony and Phillips' Digital Audio Tape DAT without fear of contributory infringement lawsuits. The RIAA and music publishers, concerned that consumers ability to make perfect digital copies of music would destroy the market for audio recordings, had threatened to sue both companies and lobbied Congress to pass legislation imposing mandatory copy protection technology and royalties on devices and media. United States copyright law governs the legally enforceable rights of creative and artistic works in the United States. ... To meet Wikipedias quality standards, this article or section may require cleanup. ... Phillips can refer to: // Antony Phillips, resident of Worcester in England, actor and celebrity Ethan Phillips, American actor, playwright and author Henry F. Phillips, American businessman and inventor of the Phillips Head screwdriver Jeffrey W. Phillips Un-Official Mayor and sworn guardian of Scottish Heritage town Dùn Èideann (Dunedin... DAT can mean: day after tomorrow, a J-Pop band. ... The RIAA Logo. ...

The AHRA is often overlooked, but it establishes a number of important precedents in US copyright law that defined the debate between device makers and the content industry for the ensuing two decades.These include: United States copyright law is rooted in Article One of the United States Constitution, which states: The Congress shall have the power. ...

• the first government technology mandate in the copyright law, requiring all digital audio recording devices sold, manufactured or imported in the US to include the Serial Copy Management System (SCMS).
• the first anti-circumvention provisions in copyright law, later applied on a much broader scale by the Digital Millenium Copyright Act.
• the first government-imposed royalties on devices and media, a portion of which is paid to the record industry directly.

The Act also includes blanket protection from infringement actions for private, non-commercial analog audio copying, and for digital audio copies made with digital audio recording devices. The Serial Copy Management System or SCMS was created in response to the digital audio tape (DAT) invention, in order to prevent DAT recorders from making second-generation or serial copies. ... The Digital Millennium Copyright Act (DMCA) is a controversial United States copyright law which criminalizes production and dissemination of technology that can circumvent measures taken to protect copyright, not merely infringement of copyright itself, and heightens the penalties for copyright infringement on the Internet. ... A royalty is a sum paid to the creator of performance art for the use of that art. ... In the early years of the phonograph in the late 19th century, the music industry was dominated by the publishers of sheet music. ...

History and Legislative Background

By the late 1980s, several manufacturers were prepared to introduce read/write digital audio formats to the United States. These new formats were a significant improvement over the newly introduced read-only digital format of the compact disc, allowing consumers to make perfect, multi-generation copies of digital audio recordings. Most prominent among these formats was Digital Audio Tape (DAT), followed in the early 1990's by Phillips' Digital Compact Cassette (DCC) and Sony's Minidisc. Digital audio comprises audio signals stored in a digital format. ... This article or section does not cite its references or sources. ... In digital recording, the analog signal of a motion-picture/sound is converted into a stream of discrete numbers, representing the changes in air pressure (chroma and luminace values in case of video) through time; thus making an abstract template for the original sound. ... Digital audio tape can also refer to a compact cassette with digital storage. ... Phillips can refer to: // Antony Phillips, resident of Worcester in England, actor and celebrity Ethan Phillips, American actor, playwright and author Henry F. Phillips, American businessman and inventor of the Phillips Head screwdriver Jeffrey W. Phillips Un-Official Mayor and sworn guardian of Scottish Heritage town Dùn Èideann (Dunedin... The DCC logo was inspired by that of the original Compact Cassette Digital Compact Cassette (DCC) was a short-lived sound recording format introduced by Philips and Matsushita late 1992. ... See also IBMs VM operating system family, where minidisk refers to a logical unit of storage. ...

DAT was available as early as 1987 in Japan and Europe, but device manufacturers delayed introducing the format to the United States in the face of opposition from the recording industry. The recording industry, who feared that the ability to make perfect, multi-generation copies would spur widespread copyright infringement and lost sales, had two main points of leverage over device makers. First, consumer electronics manufacturers felt they needed the recording industry's cooperation to induce consumers—many of whom were in the process of replacing their cassettes and records with compact discs—to embrace a new music format. Second, device makers feared a lawsuit for contributory copyright infringement. DAT can mean: day after tomorrow, a J-Pop band. ... 1987 (MCMLXXXVII) was a common year starting on Thursday of the Gregorian calendar. ... Europe at its furthest extent, reaching to the Urals. ... In the early years of the phonograph in the late 19th century, the music industry was dominated by the publishers of sheet music. ... Copyright infringement (or copyright violation) is the unauthorized use of material that is protected by intellectual property rights law particularly the copyright in a manner that violates one of the original copyright owners exclusive rights, such as the right to reproduce or perform the copyrighted work, or to make... For the meaning of cassette in genetics, see cassette (genetics). ... Manufacturers put records inside protective and decorative cardboard jackets and an inner paper sleeve to protect the grooves from dust and scratches. ... CD re-directs here; see Cd for other meanings of CD. Image of a compact disc (pencil included for scale) A compact disc (or CD) is an optical disc used to store digital data, originally developed for storing digital audio. ... Copyright infringement (or copyright violation) is the unauthorized use of material that is protected by intellectual property rights law particularly the copyright in a manner that violates one of the original copyright owners exclusive rights, such as the right to reproduce or perform the copyrighted work, or to make...

Despite their strong playing hand, the recording industry failed to convince consumer electronics companies to voluntarily adopt copy restriction technology. The recording industry concurrently sought a legislative solution to the perceived threat posed by perfect multi-generation copies, introducing legislation mandating that device makers incorporate copy protection technology as early as 1987. These efforts were defeated by the consumer electronics industry along with songwriters and music publishers, who rejected any solution that did not compensate copyright owners for lost sales due to home taping.

The impasse was broken at a meeting in Athens in 1989, when representatives from the recording industry and the consumer electronics industry reached a compromise intended to enable the sale of DAT recorders in the United States. Device manufacturers agreed to include Serial Copy Management System (SCMS) in all consumer DAT recorders in order to prevent serial copying. The recording industry would independently pursue legislation requiring royalties on digital audio recording devices and media. Nickname: City of Athena or Cradle of Democracy Location of the city of Athens (red dot) within the Prefecture of Athens and Periphery of Attica Coordinates: Country Greece Peripheries Attica Prefecture Athens Founded circa 2000 BC Mayor Nikitas Kaklamanis Area    - City 38. ... 1989 (MCMLXXXIX) was a common year starting on Sunday of the Gregorian calendar. ... The Serial Copy Management System or SCMS was created in response to the digital audio tape (DAT) invention, in order to prevent DAT recorders from making second-generation or serial copies. ... DAT can mean: day after tomorrow, a J-Pop band. ... A royalty is a sum paid to the creator of performance art for the use of that art. ...

A year later the songwriter Sammy Cahn and four music publishers, unhappy with the absence of a royalties provision in the Athens agreement, filed a class action copyright infringement suit against Sony. The plaintiffs sought declaratory and injunctive relief that would have prevented the manufacture, importation or distribution of DAT recorders or media in the United States. The suit brought Sony to heel. In July 1991, Sony, as part of larger agreement between the recording industry and consumer electronics makers, agreed to support legislation creating a royalty scheme for digital media. In exchange, Cahn and the publishers agreed to drop the suit. Sammy Cahn (June 18, 1913 - January 15, 1993) was a songwriter and musician, playing the piano and violin. ... 1991 (MCMXCI) was a common year starting on Tuesday of the Gregorian calendar. ...

With all the major stakeholders satisfied, the bill easily passed both houses of Congress. President George H. W. Bush signed the AHRA into law in 1992 proclaiming " S. 1623 [AHRA] will ensure that American consumers have access to equipment embodying the new digital audio recording technology. It also protects the legitimate rights of our songwriters, performers, and recording companies to be fairly rewarded for their tremendous talent, expertise, and capital investment." Order: 41st President Term of Office: January 20, 1989–January 20, 1993 Preceded by: Ronald Reagan Succeeded by: Bill Clinton Date of birth: June 12, 1924 Place of birth: Milton, Massachusetts Date of death: Place of death: First Lady: Barbara Pierce Bush Political party: Republican Vice President: Dan Quayle... 1992 (MCMXCII) was a leap year starting on Wednesday. ...

Devices Covered by the AHRA

Digital Audio Recording Device Defined

The AHRA's statutory definitions of “digital audio recording device” and “digital audio recording media” are crucial to understanding the implications of the Act. The distinction between covered and non-covered devices or media dictates whether or not royalties are paid and whether the SCMS copy control technologies are included. The language of the act protects all noncommercial copying by consumers of digital and analog musical recordings regardless if the copy control technology is present or the royalty has been paid.

The statutory definitions, codified at 17 USC §1001 states:

A "digital audio recording device" is any machine or device of a type commonly distributed to individuals for use by individuals, whether or not included with or as part of some other machine or device, the digital recording function of which is designed or marketed for the primary purpose of, and that is capable of, making a digital audio copied recording for private use.17 USC §1001(3)

The definition of “digital audio recording medium” is similar:

A “digital audio recording medium” is any material object in a form commonly distributed for use by individuals, that is primarily marketed or most commonly used by consumers for the purpose of making digital audio copied recordings by use of a digital audio recording device.17 USC §1001(4)

In each case, the principal distinction between what is and is not covered by the AHRA is determined by whether or not the device is marketed or designed (or in the case of media, commonly used by consumers) to make audio recordings, not the device's capabilities. A CD-R recorder included as part of a personal computer would not be a digital audio recording device under the Act, since the personal computer was not marketed primarily for making copies of music. The same recorder, sold as a peripheral and marketed for the express purpose of making digital audio recordings, would fall under the Act's definition of a recording device.

Exceptions

The AHRA's definition of "digital audio recording device" includes explicit exceptions for devices that are used primarily to record non-musical sounds (such as dictation devices and answering machines) and for “professional equipment.” 17 U.S.C. 1001(3)(A-B) The definition of professional equipment was to have been set by the Department of Commerce, though these regulations have never been issued. “Professional” minidisc recorders without SCMS cost thousands of dollars.

The AHRA's definition of "digital audio recording media" explicitly excludes pre-recorded but recordable media, and storage media used primarily to store information other than musical works.17 U.S.C. 1001(4)(B)

This exception was crucial in RIAA v. Diamond Multimedia, 29 F. Supp. 2d 624 (C.D. Cal. 1998), the only case in which the AHRA's provisions have been examined by the federal courts. The RIAA filed suit to enjoin the manufacture and distribution of the Rio PMP300, one of the first portable MP3 players and the forerunner to the iPod, because it did not include the SCMS copy protection required by the act, and Diamond did not intend to pay royalties. The 9th Circuit, affirming an earlier District Court ruling in favor Diamond Multimedia, ruled that the “digital music recording” for the purposes of the act was not intended to include songs fixed on computer hard drives. The court also found that the Rio was not a digital audio recording device for the purposes of the AHRA, because 1) the Rio reproduced files from computer hard drives, which were specifically exempted from the SCMS and Royalty payments under the act, 2) could not directly record from the radio or other transmissions. The court also found; 1) The operation of the Rio was entirely consistent with the Act's main purpose which was the facilitation of home taping for personal use, 2) Ruled that section 1008 protects all noncommercial copying by consumers of digital and analog musical recordings, and 3) Also ruled that use of such was fair use because the Rio merely makes copies in order to render portable, or "space-shift," those files that already reside on a user's hard drive. The Rio PMP-300 portable mp3 player The top view shows the face of the player. ... The current iPod line. ... The U.S. Court of Appeals for the Ninth Circuit is a federal court with appellate jurisdiction over the district courts in the following districts: District of Alaska District of Arizona Central District of California Eastern District of California Northern District of California Southern District of California District of Hawaii...

SCMS

The AHRA required that all digital audio recording devices conform to a form of copy protection called the Serial Copy Management System or its functional equivalent.17 U.S.C. 1002(a), the AHRA also prohibited circumvention of SCMS and importation, distribution or manufacture of such tools. 17 U.S.C. 1002(c-d) Violations of either provision are punishable by up to $25 per recording, or $2,500 per device. 17 U.S.C. 1009(d) The Serial Copy Management System or SCMS was created in response to the digital audio tape (DAT) invention, in order to prevent DAT recorders from making second-generation or serial copies. ...

AHRA Royalties

Payment of Royalties

Under the AHRA, importers and manufacturers pay royalties on “digital audio recording devices” and “digital audio recording media.” Those who wish to import, manufacture and distribute must seek a statutory license from the Copyright Office. Royalties are based on “transfer price,” either the sale price or the price recorded for customs purposes in the case of importers. The United States Copyright Office, a part of the Library of Congress, is the official U.S. government body that maintains records of copyright registration in the United States. ... A royalty is a sum paid to the creator of performance art for the use of that art. ...

For digital audio recording devices, manufacturers and importers pay a 2% royalty on the device's transfer price, with a minimum royalty of $1 and a maximum of $8 ($12 for dual recorders) per device. For digital audio recording media, manufacturers and importers pay a 3% royalty.

Distribution of Royalties

Under the AHRA, royalties collected by the Copyright Office on digital recording devices and digital recording media are divided into two separate funds, the Musical Works Fund and the Sound Recordings Fund. One third of the royalties goes to the Musical Works Fund, which splits its cut 50/50 between writers (distributed by ASCAP, BMI, and SESAC) and music publishers (distributed by Harry Fox). These parties receive royalties according to the extent to which their recordings were distributed or broadcast. The United States Copyright Office, a part of the Library of Congress, is the official U.S. government body that maintains records of copyright registration in the United States. ... The American Society of Composers, Authors, and Publishers (ASCAP) is an organization known as a collecting society that protects intellectual property, ensuring that music which is broadcast, commercially recorded, or otherwise used for profit, pays a fee to compensate the creators of that music. ... Broadcast Music Incorporated (BMI) is a collecting society that protects composers intellectual property in the communications business, especially radio. ... This article needs to be wikified. ... For the US music rights agency, see Harry Fox Agency Harry Fox was a vaudeville dancer and comedian, most famous for giving his name to the Fox Trot dance. ...

The remaining two thirds of the royalties are placed in the Sound Recordings Fund. Four percent of these funds are taken off the top for nonfeatured musicians and vocalists (distributed by the American Federation of Musicians (AFM) and AFTRA), what remains is split 60/40 between two sets of “interested copyright parties.” Interested copyright parties, a heretofore unknown category in copyright law, is defined by the act as featured artists(40%), and the owners of the right to reproduce sound recordings (60%). These parties receive royalties through the Alliance of Artists and Recording Companies according to the extent to which their recordings were distributed. The American Federation of Musicians (AFM) is a labor union of professional musicians in the United States and Canada. ... The American Federation of Television and Radio Artists (AFTRA) is an actors union that aims to represent actors in radio and television, much like the Screen Actors Guild does for movies. ... The AARC Logo. ...

The inclusion of this last group, reproduction rights holders, was unprecedented in United States copyright law. Almost thirty-nine percent of the royalties collected under the AHRA go not to songwriters and musicians, but to the record labels who own the right to copy and distribute their recordings. The justification for this cross subsidy is that the copying enabled by the digital technology is a loss of profits for the recording industry, and that they should be compensated for this loss. United States copyright law governs the legally enforceable rights of creative and artistic works in the United States. ... A songwriter is someone who writes either the lyrics or the music for songs. ... A musician is a person who plays or composes music. ... The record industry (or recording industry) is the industry that manufactures and distributes mechanical recordings of music. ...

It is unclear whether the recording industry ever thought that revenue from royalties would compensate for revenues lost to the first generation copying authorized by the AHRA. Given their willingness to block all distribution of all digital audio recording media and devices in the United States, that the combination of SCMS and the price premium imposed by royalties was intended to cripple the market. It is also possible that given a new technology, and the Act's unprecedented provisions (royalties, legislative mandates for copy protection), they could not predict the impact of the AHRA on adoption of the new technology. The Serial Copy Management System or SCMS was created in response to the digital audio tape (DAT) invention, in order to prevent DAT recorders from making second-generation or serial copies. ... A royalty is a sum paid to the creator of performance art for the use of that art. ...

Regardless of their intent, AHRA royalties have never been a significant revenue stream for anyone, least of all the recording industry. Revenues for the Copyright Office's Digital Audio Recording Technologies (DART) Fund peaked at $5.2 million in 2000, and have been declining, at times precipitously, ever since. Revenues for 2005 were approximately $2.4 million. According to its website, the Alliance of Artists and Recording Companies (with its 38% share of all DART royalties) has distributed less than $19 million since 1993, a figure which includes home taping royalties from four other countries. The record industry (or recording industry) is the industry that manufactures and distributes mechanical recordings of music. ... This article is about the year 2000. ... 2005 (MMV) was a common year starting on Saturday of the Gregorian calendar. ... The AARC Logo. ... 1993 (MCMXCIII) was a common year starting on Friday of the Gregorian calendar and marked the Beginning of the International Decade to Combat Racism and Racial Discrimination (1993-2003). ...

Exemption from Infringement Actions

The AHRA contains one positive provision for the consumer electronics industry and consumers, section 1008, a “Prohibition on certain infringement actions:”

No action may be brought under this title alleging infringement of copyright based on the manufacture, importation, or distribution of a digital audio recording device, a digital audio recording medium, an analog recording device, or an analog recording medium, or based on the noncommercial use by a consumer of such a device or medium for making digital musical recordings or analog musical recordings.

According to the Senate, this provision was intended to conclusively resolve the debate over audio home taping, and “[create] an atmosphere of certainty to pave the way for the development and availability of new digital recording technologies and new musical recordings.” They were partially successful: this provision made the sale of DAT and Minidisc possible in the United States, by protecting device manufacturers, importers and distributors from infringement suits like Cahn v. Sony.

Private, noncommercial copies by consumers using "digital audio recording devices" are explicitly protected by §1008. The Senate report defines noncommercial as “not for direct or indirect commercial advantage,” offering examples such as making copies for a family member, or copies for use in a car or portable tape player. It allows the Home Recording Rights Coalition to argue that home taping rights are based not on the flimsy reed of fair use, but on the clear statutory protections of the AHRA. Interestingly, the Senate report that the exemption should apply to consumers regardless of whether the manufacturer of the digital audio recording device or media complied with the provisions requiring SCMS and royalties.

Still, the AHRA was unsuccessful in its attempt to “conclusively . . . resolve this debate” over the legality of home taping. Section 1008 explicitly allows private, noncommercial home copying with analog devices and media. The primary ambiguity rests not in the definition of private or noncommercial, but in the definition of “digital audio recording device.” Though there are no reliable figures on the subject, the meager returns to the Copyright Office's DART fund amidst widespread copying and dissemination of digital audio recordings suggests that a great deal of copying, noncommercial or otherwise, is accomplished using devices not covered by the AHRA.

Relevance to XM Lawsuit

The AHRA is important in the recording industry's suit against XM radio for Samsung's Helix and Pioneer’s Inno XM receivers, which allow users to record blocks of satellite radio and disaggregate individual songs. XM argued that the devices are "digital audio recording devices" (“DARD”) under the AHRA, and thus enjoy an exemption from copyright infringement actions for private, non-commercial copying. A New York District Court judge agreed that these devices are DARDs because they can record from a transmission without the use of an external computer or computer hard drive. As manufacturers or distributors of DARDs, Samsung and Pioneer are immune from suit so long as they satisfy the requirements under the AHRA, including payment of royalties to the US Copyright Office, on a quarterly basis, for each device distributed. However, according to the District Court, this immunity does not protect XM with regard to the recording industry suit. The recording industry's complaint was based on XM’s use of their music, not on the distribution of the devices. XM is currently licensed, under Section 114 of the US Copyright Act, to provide the recording industry’s music via a digital satellite broadcast service. The recording industry's complaint, however, alleges that services such as the XM + MP3 distribute permanent digital copies of sound recordings without a license. XM is being sued for distributing the music industry’s music without a distribution license, not for distributing devices such as the Helix and Inno. Therefore, the District Court denied XM's motion to dismiss on grounds that the AHRA immunity with regard to distribution of DARDs does not protect XM for a copyright infringement suit based on distribution of music without a license. [1] Samsung Group is one of the largest South Korean business groupings. ... Look up Pioneer in Wiktionary, the free dictionary. ... The Pioneer Inno is a second-generation XM2go model for use with the XM satellite radio service. ... XM may stand for: XM Satellite Radio, a United States broadcasting company. ... A satellite radio or subscription radio (SR) is a digital radio that receives signals broadcast by communications satellite, which covers a much wider geographical range than terrestrial radio signals. ... XM may stand for: XM Satellite Radio, a United States broadcasting company. ... Copyright infringement (or copyright violation) is the unauthorized use of material that is protected by intellectual property rights law particularly the copyright in a manner that violates one of the original copyright owners exclusive rights, such as the right to reproduce or perform the copyrighted work, or to make... Samsung Group is one of the largest South Korean business groupings. ... Look up Pioneer in Wiktionary, the free dictionary. ... The United States Copyright Office, a division of the Library of Congress, is the official US government body that maintains records of copyright registration in the United States. ... XM may stand for: XM Satellite Radio, a United States broadcasting company. ... The record industry (or recording industry) is the industry that manufactures and distributes mechanical recordings of music. ... XM may stand for: XM Satellite Radio, a United States broadcasting company. ... XM may stand for: XM Satellite Radio, a United States broadcasting company. ... The record industry (or recording industry) is the industry that manufactures and distributes mechanical recordings of music. ... XM may stand for: XM Satellite Radio, a United States broadcasting company. ... MPEG-1 Audio Layer 3, more commonly referred to as MP3, is a popular digital audio encoding and lossy compression format and algorithm, designed to greatly reduce the amount of data required to represent audio, yet still sound like a faithful reproduction of the original uncompressed audio to most listeners. ... XM may stand for: XM Satellite Radio, a United States broadcasting company. ... The music industry is the industry that creates, performs, promotes, and preserves music. ... The Pioneer Inno is a second-generation XM2go model for use with the XM satellite radio service. ... XM may stand for: XM Satellite Radio, a United States broadcasting company. ... Copyright infringement (or copyright violation) is the unauthorized use of material that is protected by intellectual property rights law particularly the copyright in a manner that violates one of the original copyright owners exclusive rights, such as the right to reproduce or perform the copyrighted work, or to make...

External links

• AHRA Legislative History on Wikisource
• AARC(Alliance of Artists and Recording Companies)
• AFM
• AFTRA
• ASCAP
• BMI
• SESAC
• HARRY FOX
• RIAA
• Chapter 10 of the US Copyright Act
• Bush Statements on Signing the AHRA
• MUSIC PIRACY AND THE AUDIO HOME RECORDING ACT
• Content Protection Progress Report (PDF)
• NET Act
• Chapter 12 US Copyright Act
• Documents Relating to XM lawsuit