As used in this chapter, the following terms have the following meanings:
(3) 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, except for—
(B) Such term does not include any material object—
that embodies a sound recording at the time it is first distributed by the importer or manufacturer; or
(A) A “digital musical recording” is a material object—
in which are fixed, in a digital recording format, only sounds, and material, statements, or instructions incidental to those fixed sounds, if any, and
(B) A “digital musical recording” does not include a material object—
in which the fixed sounds consist entirely of spoken word recordings, or
in which one or more computer programs are fixed, except that a digital musical recording may contain statements or instructions constituting the fixed sounds and incidental material, and statements or instructions to be used directly or indirectly in order to bring about the perception, reproduction, or communication of the fixed sounds and incidental material.
(C) For purposes of this paragraph—
the term “incidental” means related to and relatively minor by comparison.
(7) An “interested copyright party” is—
a featured recording artist who performs on a sound recording that has been distributed; or
(D) any association or other organization—
engaged in licensing rights in musical works to music users on behalf of writers and publishers.
A “music publisher” is a person that is authorized to license the reproduction of a particular musical work in a sound recording.
The term “serial copying” means the duplication in a digital format of a copyrighted musical work or sound recording from a digital reproduction of a digital musical recording. The term “digital reproduction of a digital musical recording” does not include a digital musical recording as distributed, by authority of the copyright owner, for ultimate sale to consumers.
(12) The “transfer price” of a digital audio recording device or a digital audio recording medium—
(A) is, subject to subparagraph (B)—
in the case of an imported product, the actual entered value at United States Customs (exclusive of any freight, insurance, and applicable duty), and
shall, in a case in which the transferor and transferee are related entities or within a single entity, not be less than a reasonable arms-length price under the principles of the regulations adopted pursuant to section 482 of the Internal Revenue Code of 1986, or any successor provision to such section.
A “writer” is the composer or lyricist of a particular musical work.