In the case of nondramatic musical works, the exclusive rights
provided by clauses (1) and (3) of section 106, to make and to distribute
phonorecords of such works, are subject to compulsory licensing under the
conditions specified by this section.

(a) Availability and Scope of Compulsory License.-

(1) When phonorecords of a nondramatic musical work have been
distributed to the public in the United States under the authority
of the copyright owner, any other person may, by complying with
the provisions of this section, obtain a compulsory license only if
his or her primary purpose in making phonorecords is to distribute
them to the public for private use. A person may obtain a
compulsory license for use of the work in the making of
phonorecords duplicating a sound recording fixed by another,
unless: (i) such sound recording was fixed lawfully; and (ii) the
making of the phonorecords was authorized by the owner of
copyright in the sound recording or, if the sound recording was fixed
before February 15, 1972, by any person who fixed the sound
recording pursuant to an express license from the owner of the
copyright in the musical work or pursuant to a valid compulsory
license for use of such work in a sound recording.

(2) A compulsory license includes the privilege of making a
musical arrangement of the work to the extent necessary to conform
it to the style or manner of interpretation of the performance
involved, but the arrangement shall not change the basic melody or
fundamental character of the work, and shall not be subject to
protection as a derivative work under this title, except with the
express consent of the copyright owner.