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DIGITAL AUDIO RECORDING TECHNOLOGY ACT

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A U.S. federal law, called the DART Act (originally passed on October 7, 1992) that requires manufacturers and importers of digital audio recording devices and those who distribute such products in the U.S., to file an initial notice upon distribution of such devices and media and to pay the appropriate royalty fees to the Licensing Division of the Copyright Office. And also to submit quarterly and annual statements of account to that Office. See: COPYRIGHT LAW under "Copyrightable Material," and "Sound Recordings," ROYALTY.

These royalties are then administered by the Copyright Arbitration Royalty Panel (CARP) and distributed to eligible claimants who file the proper claims according to a specified timetable. The royalty fees are separated into two funds. The Musical Works Fund where the royalties are distributed to music publishers and songwriters who own copyrights in musical compositions. The other is the Sound Recordings Fund. The royalties from this fund are distributed to the copyright owners of sound recordings.

The percentages distributed are broken down into these categories: record labels receive…

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