385.3—Royalty rates for making and distributing phonorecords.

(a) Physical phonorecord deliveries and permanent digital downloads. For every physical phonorecord and permanent digital download made and distributed, the royalty rate payable for each work embodied in such phonorecord shall be either 9.1 cents or 1.75 cents per minute of playing time or fraction thereof, whichever amount is larger.
(b) Ringtones. For every ringtone made and distributed, the royalty rate payable for each work embodied therein shall be 24 cents.