I agree with you, that is not workable (8.5 cents) as far as streaming/on demand. What Congress envisioned with compulsary law was that a digital phonorecord and a physical phonerecord are one in the same. So delivery of a PERMANANT digital entity (a DPD) that embodies the sound recording and artwork would be the equivalent of a physical recording, and that is what is subject to compulsary law as far as the underlying musical compositions. This is what ITUNES and everyone else is doing right now.

But, from that link above, the Copyright Office seems to be grappling with the request of some factions of the music industry that two other items be considered a DPD 1) Streaming/On Demand Audio 2) Limited Time downloads (they only work for a certain time period, and then you can't listen to them anymore).

As far as item 1), to me that is not what the law says and that's not what Congress invisioned as a DPD. As far as item 2), I'm not sure that law allows for that either, but I'm neutral about that one.

I did wade through section 114 again. Section 106 gives this right:

6) in the case of sound recordings, to perform the copyrighted work publicly by means of a digital audio transmission.

And then section 114 gives some limitiations of those rights, especially as it applies to radio/digital audio transmissions.

Now, someone can certainly correct me if I'm wrong, but my lay reading of 114 is that it makes it clear that an interactive subscription service (basically - paraphrased - where the user picks what is heard - subject to some limitations) is not subject to the same statutory licensing as a non-interactive web-cast (subscription or otherwise). And an interactive service would not be included in the webcast royality agreements of a few years ago.

That leaves an interactive service (subscription or otherwise) subject to having to obtain license rights with each and every copyright holder independently for the SR, and for the public performance of the underlying compositions (which can be handled by a PRO), and the SR owner (who traditionally handles mech rights) would have to have mech reproduction rights to the underlying compositions, because I can't find anything in any other section, ephemerials, etc, that limits that. An interactive service is creating copy upon digital copy of the underlying musical composition.

Now, I'm totally open to being wrong, that's why I think it would be cool if we could find someone to explain to us the legal workings behind a streaming/on demand service. I think that would be good for songwriters to know.

Boo...my name is Doug