A bill to amend title 17, United States Code, relating to the copyright interests of certain musical performances, and for other purposes.

Exempts from copyright infringement the communication within a commercial establishment of the transmission of a performance or display of a work by the reception of a broadcast, cable, satellite, or other transmission, if no direct charge is made to see or hear the transmission, its reception is authorized, and such transmission is not retransmitted to the public beyond such premises, and if communicated: (1) in an area where a transmission is intended to be received by the general public that is smaller than 5,000 square feet; (2) within an establishment whose gross annual income does not exceed 20 percent of the gross annual income of a small business as defined by the Small Business Administration; (3) by means of ten or fewer loudspeakers; or (4) by means of speakers in audiovisual devices only.

(Sec. 2) Requires any controversy or dispute arising out of the appropriate fee to be paid for the user's past or future performance of nondramatic musical works in the repertoire of a performing rights society (PRS) to be settled by arbitration administered by the American Arbitration Association. Outlines provisions: (1) requiring the confidentiality of arbitration findings; (2) limiting the length of time that the finding of an appropriate fee shall apply; (3) requiring a PRS to make available to all interested persons access to copyright and licensing information for each nondramatic musical work in its repertoire; and (4) requiring a PRS to make available a printed directory of each title in its repertoire. Provides restrictions for PRSs not in compliance with such requirements.

(Sec. 3) Requires each PRS to offer to any radio broadcaster that so requests a per programming period license (license) to perform nondramatic musical works in the repertoire of the PRS. Outlines provisions: (1) determining the price of each such license; (2) providing for the determination of the performance of nondramatic musical works by a broadcaster under any such license; and (3) enforcing a broadcaster's right to apply for and receive such a license.

(Sec. 4) Exempts from copyright infringement the transmission of religious services, or the recording of a program embodying such services in their entirety, if there is no commercial advertisement or commercial sponsor within such program.

(Sec. 5) Defines "performing rights society," "general music user," and "loudspeaker" for purposes of the copyright laws.