Service [Patents] Law and Legal Definition

According to 37 CFR 370.1 (b) [Title 37 -- Patents, Trademarks, and Copyrights; Chapter III -- Copyright Royalty Board, Library of Congress; Subchapter D -- Notice and Recordkeeping Requirements for Statutory Licenses; Part 370--Notice and Recordkeeping Requirements for Statutory Licenses], the term service “is an entity engaged in either the digital transmission of sound recordings pursuant to section 114(d)(2) of title 17 of the United States Code or making ephemeral phonorecords of sound recordings pursuant to section 112(e) of title 17 of the United States Code or both. The definition of a Service includes an entity that transmits an AM/FM broadcast signal over a digital communications network such as the Internet, regardless of whether the transmission is made by the broadcaster that originates the AM/FM signal or by a third party, provided that such transmission meets the applicable requirements of the statutory license set forth in 17 U.S.C. 114(d)(2). A Service may be further characterized as either a preexisting subscription service, preexisting satellite digital audio radio service, nonsubscription transmission service, new subscription service, business establishment service or a combination of those.”

According to 37 CFR 385.11 [Title 37 -- Patents, Trademarks, and Copyrights; Chapter III -- Copyright Royalty Board, Library of Congress; Subchapter E -- Rates and Terms for Statutory Licenses; Part 385 -- Rates and Terms for use of Musical Works Under Compulsory License for Making and Distributing of Physical and Digital Phonorecords; Subpart B -- Interactive Streaming, Other Incidental Digital Phonorecord Deliveries and Limited Downloads], the term service means “that entity (which may or may not be the licensee) that, with respect to the licensed activity,

(1) Contracts with or has a direct relationship with end users in a case where a contract or relationship exists, or otherwise controls the content made available to end users;

(2) Is able to report fully on service revenue from the provision of the licensed activity to the public, and to the extent applicable, verify service revenue through an audit; and

(3) Is able to report fully on usage of musical works by the service, or procure such reporting, and to the extent applicable, verify usage through an audit.”