Final answer:
The Digital Performance Right in Sound Recordings Act of 1995 provided copyright protection for sound recordings in the digital realm, ensuring fair compensation for digital music streaming. It created a new performance right for copyright holders in response to the changing digital landscape. This act is integral to the modern music industry's distribution and monetization via digital media.
Step-by-step explanation:
The Digital Performance Right in Sound Recordings Act of 1995 was a significant piece of legislation that addressed the issue of copyright protection for sound recordings in digital formats. This act effectively created a new right for copyright holders, specifically concerning the public performance of sound recordings in a digital environment. Prior to this, copyright in sound recordings primarily covered distribution and reproduction rights, but with the advent of digital transmission, there was a need for clearer laws.
The act did not allow free access to all sound recordings, nor did it abolish copyright for sound recordings. Instead, it provided copyright protection for sound recordings in the digital realm, ensuring that performers and producers could be fairly compensated for the public performance of their recordings online or through other digital media. This includes digital music streaming services, which are required to pay royalties to copyright holders.
This legislation plays a crucial role in today's music industry, as it affects how music is distributed and monetized over the internet. It also aligns with the broader principles of intellectual property protection, and the MGM Studios v. Grokster (2005) Supreme Court ruling reinforces the importance of holding companies accountable for facilitating copyright infringement.