The Digital Performance Right in Sound Recordings Act of 1995 (PL 104-39) (the "Act" or "Digital Performance Act") was signed into law in the United States, on November 1, 1995, and creates an exclusive right for copyright owners of sound recordings, subject to certain limitations, to perform publicly sound recordings by means of certain digital transmissions. The new Act also amends the compulsory mechanical license provisions of the United States Copyright Act to include a right to distribute recordings by digital transmissions. Under US law, a copyright is a series of rights in a particular piece of intellectual property that is controlled by the copyright owner [37].

Essentially, the Digital Performance Act creates an exclusive public performance right in the digital subscription of sound recordings, subject to certain limitations. Accordingly, the Act only applies to digital audio performances, not to transmissions of motion pictures or other audio-visual works. Similarly, the legislation does not apply to the transmissions by conventional (non-subscription) over-the-air broadcasters, rather only to digital audio transmissions in subscription circumstances (e.g. on demand to receive particular sound recordings). Such transmissions are currently those in cable and other electronic delivery media.

A specific composition is divided into two definitions - a song and a recording . A song is defined as the words and music that make up the structure of the song or the composition of an instrumental piece, while a recording is the actual physical sound and recorded version of the song. Similarly, there are various rights assigned to the copyright owners which need clearance for use on the Internet, depending on the way the song is used online.

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