Originally Posted by kelevraco

What this means for operators of web sites who wish to provide their users with MP3 files, either by streaming or downloading, is that they must first obtain a license by paying a fee to the appropriate agency. A performing rights organization such as ASCAP can issue a blanket license which will cover performances of all the music in its repertoire. Recently, ASCAP signed a ground-breaking deal with MP3.com in precisely this fashion. However, after the implementation of this Act, there are now three potential tiers of licensing with which the hapless would-be music distributor would do well to become familiar. There is the license for performing the work (the same as in the non-Internet world, and handled by an organization like ASCAP, BMI, or SESAC), then there is the license for the digital performance right in the sound recording (often being handled by RIAA now), and the license for the distribution right in the phonorecord (a mechanical royalty like those handled by the Harry Fox Agency). The industry catchphrase these days is "one-stop shopping" and it doesn't exist. One must negotiate separate licenses on all three levels or risk the possibility of suit.