IIB 

108TH CONGRESS 

2D SESSION H. R. 1417

IN THE SENATE OF THE UNITED STATES 

MARCH 4, 2004

Received; read twice and referred to the Committee on the Judiciary 

AN ACT

To amend title 17, United States Code, to replace copyright 

arbitration royalty panels with Copyright Royalty 

Judges, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Copyright Royalty and 

3 Distribution Reform Act of 2004’’. 

4 SEC. 2. REFERENCE. 

5 Except as otherwise expressly provided, whenever in 

6 this Act an amendment or repeal is expressed in terms 

7 of an amendment to, or repeal of, a section or other provi8 sion, the reference shall be considered to be made to a 

9 section or other provision of title 17, United States Code. 

10 SEC. 3. COPYRIGHT ROYALTY JUDGE AND STAFF. 

11 (a) IN GENERAL.—Chapter 8 is amended to read as 

12 follows: 

13 ‘‘CHAPTER 8—PROCEEDINGS BY 

14 COPYRIGHT ROYALTY JUDGES

‘‘Sec. 

‘‘801. Copyright Royalty Judges; appointment and functions. 

‘‘802. Copyright Royalty Judgeships; staff. 

‘‘803. Proceedings of Copyright Royalty Judges. 

‘‘804. Institution of proceedings. 

‘‘805. General rule for voluntarily negotiated agreements.

15 ‘‘§ 801. Copyright Royalty Judges; appointment and 

16 functions 

17 ‘‘(a) APPOINTMENT.—The Librarian of Congress 

18 shall appoint 3 full-time Copyright Royalty Judges, and 

19 shall appoint one of the three as the Chief Copyright Roy20 alty Judge. In making such appointments, the Librarian 

21 shall consult with the Register of Copyrights. 
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1 ‘‘(b) FUNCTIONS.—Subject to the provisions of this 

2 chapter, the functions of the Copyright Royalty Judges 

3 shall be as follows: 

4 ‘‘(1) To make determinations and adjustments 

5 of reasonable terms and rates of royalty payments as 

6 provided in sections 112(e), 114, 115, 116, 118, 119 

7 and 1004. The rates applicable under sections 

8 114(f)(1)(B), 115, and 116 shall be calculated to 

9 achieve the following objectives: 

10 ‘‘(A) To maximize the availability of cre11 ative works to the public. 

12 ‘‘(B) To afford the copyright owner a fair 

13 return for his or her creative work and the 

14 copyright user a fair income under existing eco15 nomic conditions. 

16 ‘‘(C) To reflect the relative roles of the 

17 copyright owner and the copyright user in the 

18 product made available to the public with re19 spect to relative creative contribution, techno20 logical contribution, capital investment, cost, 

21 risk, and contribution to the opening of new 

22 markets for creative expression and media for 

23 their communication. 
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1 ‘‘(D) To minimize any disruptive impact 

2 on the structure of the industries involved and 

3 on generally prevailing industry practices. 

4 ‘‘(2) To make determinations concerning the 

5 adjustment of the copyright royalty rates under sec6 tion 111 solely in accordance with the following pro7 visions: 

8 ‘‘(A) The rates established by section 

9 111(d)(1)(B) may be adjusted to reflect—

10 ‘‘(i) national monetary inflation or de11 flation; or 

12 ‘‘(ii) changes in the average rates 

13 charged cable subscribers for the basic 

14 service of providing secondary trans15 missions to maintain the real constant dol16 lar level of the royalty fee per subscriber 

17 which existed as of the date of October 19, 

18 1976, 

19 except that—

20 ‘‘(I) if the average rates charged cable 

21 system subscribers for the basic service of 

22 providing secondary transmissions are 

23 changed so that the average rates exceed 

24 national monetary inflation, no change in 
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1 the rates established by section 

2 111(d)(1)(B) shall be permitted; and

3 ‘‘(II) no increase in the royalty fee 

4 shall be permitted based on any reduction 

5 in the average number of distant signal 

6 equivalents per subscriber. 

7 The Copyright Royalty Judges may consider all 

8 factors relating to the maintenance of such level 

9 of payments, including, as an extenuating fac10 tor, whether the industry has been restrained 

11 by subscriber rate regulating authorities from 

12 increasing the rates for the basic service of pro13 viding secondary transmissions. 

14 ‘‘(B) In the event that the rules and regu15 lations of the Federal Communications Com16 mission are amended at any time after April 8, 

17 1976, to permit the carriage by cable systems 

18 of additional television broadcast signals beyond 

19 the local service area of the primary transmit20 ters of such signals, the royalty rates estab21 lished by section 111(d)(1)(B) may be adjusted 

22 to insure that the rates for the additional dis23 tant signal equivalents resulting from such car24 riage are reasonable in the light of the changes 

25 effected by the amendment to such rules and 
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1 regulations. In determining the reasonableness 

2 of rates proposed following an amendment of 

3 Federal Communications Commission rules and 

4 regulations, the Copyright Royalty Judges shall 

5 consider, among other factors, the economic im6 pact on copyright owners and users; except that 

7 no adjustment in royalty rates shall be made 

8 under this subparagraph with respect to any 

9 distant signal equivalent or fraction thereof rep10 resented by—

11 ‘‘(i) carriage of any signal permitted 

12 under the rules and regulations of the Fed13 eral Communications Commission in effect 

14 on April 15, 1976, or the carriage of a sig15 nal of the same type (that is, independent, 

16 network, or noncommercial educational) 

17 substituted for such permitted signal; or 

18 ‘‘(ii) a television broadcast signal first 

19 carried after April 15, 1976, pursuant to 

20 an individual waiver of the rules and regu21 lations of the Federal Communications 

22 Commission, as such rules and regulations 

23 were in effect on April 15, 1976. 

24 ‘‘(C) In the event of any change in the 

25 rules and regulations of the Federal Commu-
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1 nications Commission with respect to syn2 dicated and sports program exclusivity after 

3 April 15, 1976, the rates established by section 

4 111(d)(1)(B) may be adjusted to assure that 

5 such rates are reasonable in light of the 

6 changes to such rules and regulations, but any 

7 such adjustment shall apply only to the affected 

8 television broadcast signals carried on those 

9 systems affected by the change. 

10 ‘‘(D) The gross receipts limitations estab11 lished by section 111(d)(1)(C) and (D) shall be 

12 adjusted to reflect national monetary inflation 

13 or deflation or changes in the average rates 

14 charged cable system subscribers for the basic 

15 service of providing secondary transmissions to 

16 maintain the real constant dollar value of the 

17 exemption provided by such section, and the 

18 royalty rate specified therein shall not be sub19 ject to adjustment. 

20 ‘‘(3)(A) To authorize the distribution, under 

21 sections 111, 119, and 1007, of those royalty fees 

22 collected under sections 111, 119, and 1005, as the 

23 case may be, to the extent that the Copyright Roy24 alty Judges have found that the distribution of such 

25 fees is not subject to controversy. 
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1 ‘‘(B) In cases where the Copyright Royalty 

2 Judges determine that controversy exists, the Copy3 right Royalty Judges shall determine the distribu4 tion of such fees, including partial distributions, in 

5 accordance with section 111, 119, or 1007, as the 

6 case may be. 

7 ‘‘(C) the Copyright Royalty Judges shall make 

8 a partial distribution of such fees during the pend9 ency of the proceeding under subparagraph (B) if all 

10 participants under section 803(b)(2) in the pro11 ceeding that are entitled to receive those fees that 

12 are to be partially distributed—

13 ‘‘(i) agree to such partial distribution; 

14 ‘‘(ii) sign an agreement obligating them to 

15 return any excess amounts to the extent nec16 essary to comply with the final determination 

17 on the distribution of the fees made under sub18 paragraph (B); and 

19 ‘‘(iii) file the agreement with the Copyright 

20 Royalty Judges. 

21 ‘‘(D) The Copyright Royalty Judges and any 

22 other officer or employee acting in good faith in dis23 tributing funds under subparagraph (C) shall not be 

24 held liable for the payment of any excess fees under 

25 subparagraph (C). The Copyright Royalty Judges 
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1 shall, at the time the final determination is made, 

2 calculate any such excess amounts. 

3 ‘‘(4) To accept or reject royalty claims filed 

4 under section 111, 119, and 1007, on the basis of 

5 timeliness or the failure to establish the basis for a 

6 claim. 

7 ‘‘(5) To accept or reject rate adjustment peti8 tions as provided in section 804 and petitions to par9 ticipate as provided in section 803(b)(1) and (2). 

10 ‘‘(6) To determine the status of a digital audio 

11 recording device or a digital audio interface device 

12 under sections 1002 and 1003, as provided in sec13 tion 1010. 

14 ‘‘(7)(A) To adopt as the basis for statutory 

15 terms and rates or as a basis for the distribution of 

16 statutory royalty payments, an agreement con17 cerning such matters reached among some or all of 

18 the participants in a proceeding at any time during 

19 the proceeding, except that—

20 ‘‘(i) the Copyright Royalty Judges shall 

21 provide to the other participants in the pro22 ceeding under section 803(b)(2) that would be 

23 bound by the terms, rates, distribution, or other 

24 determination set by the agreement an oppor25 tunity to comment on the agreement and object 
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1 to its adoption as the basis for statutory terms 

2 and rates or as a basis for the distribution of 

3 statutory royalty payments, as the case may be; 

4 and

5 ‘‘(ii) the Copyright Royalty Judges may 

6 decline to adopt the agreement as the basis for 

7 statutory terms and rates or as the basis for 

8 the distribution of statutory royalty payments, 

9 as the case may be, if any other participant de10 scribed in subparagraph (A) objects to the 

11 agreement and the Copyright Royalty Judges 

12 find, based on the record before them, that the 

13 agreement is not likely to meet the statutory 

14 standard for setting the terms and rates, or for 

15 distributing the royalty payments, as the case 

16 may be.

17 ‘‘(B) License agreements voluntarily negotiated 

18 pursuant to section 112(e)(5), 114(f)(3), 

19 115(c)(3)(E)(i), 116(c), or 118(b)(2) that do not re20 sult in statutory terms and rates shall not be subject 

21 to clauses (i) and (ii) of subparagraph (A). 

22 ‘‘(c) RULINGS.—The Copyright Royalty Judges may 

23 make any necessary procedural or evidentiary rulings in 

24 any proceeding under this chapter and may, before com25 mencing a proceeding under this chapter, make any such 
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1 rulings that would apply to the proceedings conducted by 

2 the Copyright Royalty Judges. The Copyright Royalty 

3 Judges may consult with the Register of Copyrights in 

4 making any rulings under section 802(f)(1).

5 ‘‘(d) ADMINISTRATIVE SUPPORT.—The Librarian of 

6 Congress shall provide the Copyright Royalty Judges with 

7 the necessary administrative services related to pro8 ceedings under this chapter. 

9 ‘‘(e) LOCATION IN LIBRARY OF CONGRESS.—The of10 fices of the Copyright Royalty Judges and staff shall be 

11 in the Library of Congress. 

12 ‘‘§ 802. Copyright Royalty Judgeships; staff 

13 ‘‘(a) QUALIFICATIONS OF COPYRIGHT ROYALTY

14 JUDGES.—Each Copyright Royalty Judge shall be an at15 torney who has at least 7 years of legal experience. The 

16 Chief Copyright Royalty Judge shall have at least 5 years 

17 of experience in adjudications, arbitrations, or court trials. 

18 Of the other two Copyright Royalty Judges, one shall have 

19 significant knowledge of copyright law, and the other shall 

20 have significant knowledge of economics. An individual 

21 may serve as a Copyright Royalty Judge only if the indi22 vidual is free of any financial conflict of interest under 

23 subsection (h). In this subsection, ‘adjudication’ has the 

24 meaning given that term in section 551 of title 5, but does 

25 not include mediation. 
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1 ‘‘(b) STAFF.—The Chief Copyright Royalty Judge 

2 shall hire 3 full-time staff members to assist the Copyright 

3 Royalty Judges in performing their functions. 

4 ‘‘(c) TERMS.—The terms of the Copyright Royalty 

5 Judges shall each be 6 years, except of the individuals first 

6 appointed, the Chief Copyright Royalty Judge shall be ap7 pointed to a term of 6 years, and of the remaining Copy8 right Royalty Judges, one shall be appointed to a term 

9 of 2 years, and the other shall be appointed to a term 

10 of 4 years. An individual serving as a Copyright Royalty 

11 Judge may be reappointed to subsequent terms. The term 

12 of a Copyright Royalty Judge shall begin when the term 

13 of the predecessor of that Copyright Royalty Judge ends. 

14 When the term of office of a Copyright Royalty Judge 

15 ends, the individual serving that term may continue to 

16 serve until a successor is selected. 

17 ‘‘(d) VACANCIES OR INCAPACITY.—

18 ‘‘(1) VACANCIES.—If a vacancy should occur in 

19 the position of Copyright Royalty Judge, the Librar20 ian of Congress shall act expeditiously to fill the va21 cancy, and may appoint an interim Copyright Roy22 alty Judge to serve until another Copyright Royalty 

23 Judge is appointed under this section. An individual 

24 appointed to fill the vacancy occurring before the ex25 piration of the term for which the predecessor of 
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1 that individual was appointed shall be appointed for 

2 the remainder of that term. 

3 ‘‘(2) INCAPACITY.—In the case in which a 

4 Copyright Royalty Judge is temporarily unable to 

5 perform his or her duties, the Librarian of Congress 

6 may appoint an interim Copyright Royalty Judge to 

7 perform such duties during the period of such inca8 pacity. 

9 ‘‘(e) COMPENSATION.—

10 ‘‘(1) JUDGES.—The Chief Copyright Royalty 

11 Judge shall receive compensation at the rate of basic 

12 pay payable for level AL–1 for administrative law 

13 judges pursuant to section 5372(b) of title 5, and 

14 each of the other two Copyright Royalty Judges 

15 shall receive compensation at the rate of basic pay 

16 payable for level AL–2 for administrative law judges 

17 pursuant to such section. The compensation of the 

18 Copyright Royalty Judges shall not be subject to 

19 any regulations adopted by the Office of Personnel 

20 Management pursuant to its authority under section 

21 5376(b)(1) of title 5. 

22 ‘‘(2) STAFF MEMBERS.—Of the staff members 

23 appointed under subsection (b)—
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1 ‘‘(A) the rate of pay of one staff member 

2 shall be not more than the basic rate of pay 

3 payable for GS–15 of the General Schedule; 

4 ‘‘(B) the rate of pay of one staff member 

5 shall be not less than the basic rate of pay pay6 able for GS–13 of the General Schedule and not 

7 more than the basic rate of pay payable for 

8 GS–14 of such Schedule; and 

9 ‘‘(C) the rate of pay for the third staff 

10 member shall be not less than the basic rate of 

11 pay payable for GS–8 of the General Schedule 

12 and not more than the basic rate of pay payable 

13 for GS–11 of such Schedule. 

14 ‘‘(f) INDEPENDENCE OF COPYRIGHT ROYALTY

15 JUDGE.—

16 ‘‘(1) IN MAKING DETERMINATIONS.—

17 ‘‘(A) IN GENERAL.—Subject to subpara18 graph (B), the Copyright Royalty Judges shall 

19 have full independence in making determina20 tions concerning adjustments and determina21 tions of copyright royalty rates and terms, the 

22 distribution of copyright royalties, the accept23 ance or rejection of royalty claims, rate adjust24 ment petitions, and petitions to participate, and 

25 in issuing other rulings under this title, except 
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1 that the Copyright Royalty Judges may consult 

2 with the Register of Copyrights on any matter 

3 other than a question of fact. Any such con4 sultations between the Copyright Royalty 

5 Judges and the Register of Copyright on any 

6 question of law shall be in writing or on the 

7 record. 

8 ‘‘(B) NOVEL QUESTIONS.—(i) Notwith9 standing the provisions of subparagraph (A), in 

10 any case in which the Copyright Royalty Judges 

11 in a proceeding under this title are presented 

12 with a novel question of law concerning an in13 terpretation of those provisions of this title that 

14 are the subject of the proceeding, the Copyright 

15 Royalty Judges shall request the Register of 

16 Copyrights, in writing, to submit a written 

17 opinion on the resolution of such novel question. 

18 The Register shall submit and make public that 

19 opinion within such time period as the Copy20 right Royalty Judges may prescribe. Any con21 sultations under this subparagraph between the 

22 Copyright Royalty Judges and the Register of 

23 Copyrights shall be in writing or on the record. 

24 The opinion of the Register shall not be binding 

25 on the Copyright Royalty Judges, but the Copy-
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1 right Royalty Judges shall take the opinion of 

2 the Register into account in making the judges’ 

3 determination on the question concerned. 

4 ‘‘(ii) In clause (i), a ‘novel question of law’ 

5 is a question of law that has not been deter6 mined in prior decisions, determinations, and 

7 rulings described in section 803(a). 

8 ‘‘(2) PERFORMANCE APPRAISALS.—

9 ‘‘(A) IN GENERAL.—Notwithstanding any 

10 other provision of law or any regulation of the 

11 Library of Congress, and subject to subpara12 graph (B), the Copyright Royalty Judges shall 

13 not receive performance appraisals. 

14 ‘‘(B) RELATING TO SANCTION OR RE15 MOVAL.—To the extent that the Librarian of 

16 Congress adopts regulations under subsection 

17 (h) relating to the sanction or removal of a 

18 Copyright Royalty Judge and such regulations 

19 require documentation to establish the cause of 

20 such sanction or removal, the Copyright Roy21 alty Judge may receive an appraisal related 

22 specifically to the cause of the sanction or re23 moval. 

24 ‘‘(g) INCONSISTENT DUTIES BARRED.—No Copy25 right Royalty Judge may undertake duties inconsistent 
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1 with his or her duties and responsibilities as Copyright 

2 Royalty Judge. 

3 ‘‘(h) STANDARDS OF CONDUCT.—The Librarian of 

4 Congress shall adopt regulations regarding the standards 

5 of conduct, including financial conflict of interest and re6 strictions against ex parte communications, which shall 

7 govern the Copyright Royalty Judges and the proceedings 

8 under this chapter. 

9 ‘‘(i) REMOVAL OR SANCTION.—The Librarian of Con10 gress may sanction or remove a Copyright Royalty Judge 

11 for violation of the standards of conduct adopted under 

12 subsection (h), misconduct, neglect of duty, or any dis13 qualifying physical or mental disability. Any such sanction 

14 or removal may be made only after notice and opportunity 

15 for a hearing, but the Librarian of Congress may suspend 

16 the Copyright Royalty Judge during the pendency of such 

17 hearing. The Librarian shall appoint an interim Copyright 

18 Royalty Judge during the period of any such suspension. 

19 ‘‘§ 803. Proceedings of Copyright Royalty Judges 

20 ‘‘(a) PROCEEDINGS.—

21 ‘‘(1) IN GENERAL.—The Copyright Royalty 

22 Judges shall act in accordance with this title, and to 

23 the extent not inconsistent with this title, in accord24 ance with subchapter II of chapter 5 of title 5, in 

25 carrying out the purposes set forth in section 801. 
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1 The Copyright Royalty Judges shall act in accord2 ance with regulations issued by the Copyright Roy3 alty Judges and on the basis of a fully documented 

4 written record, prior decisions of the Copyright Roy5 alty Tribunal, prior copyright arbitration royalty 

6 panel determinations, rulings by the Librarian of 

7 Congress before the effective date of the Copyright 

8 Royalty and Distribution Reform Act of 2004, prior 

9 determinations of Copyright Royalty Judges under 

10 this chapter, and decisions of the court in appeals 

11 under this chapter before, on, or after such effective 

12 date. Any participant in a proceeding under sub13 section (b)(2) may submit relevant information and 

14 proposals to the Copyright Royalty Judges. 

15 ‘‘(2) JUDGES ACTING AS PANEL AND INDIVID16 UALLY.—The Copyright Royalty Judges shall pre17 side over hearings in proceedings under this chapter 

18 en banc. The Chief Copyright Royalty Judge may 

19 designate a Copyright Royalty Judge to preside indi20 vidually over such collateral and administrative pro21 ceedings, and over such proceedings under para22 graphs (1) through (5) of subsection (b), as the 

23 Chief Judge considers appropriate. 

24 ‘‘(3) DETERMINATIONS.—Final determinations 

25 of the Copyright Royalty Judges in proceedings 
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1 under this chapter shall be made by majority vote. 

2 A Copyright Royalty Judge dissenting from the ma3 jority on any determination under this chapter may 

4 issue his or her dissenting opinion, which shall be in5 cluded with the determination. 

6 ‘‘(b) PROCEDURES.—

7 ‘‘(1) INITIATION.—

8 ‘‘(A) CALL FOR PETITIONS TO PARTICI9 PATE.—(i) Promptly upon the filing of a peti10 tion for a rate adjustment or determination 

11 under section 804(a) or 804(b)(8), or by no 

12 later than January 5 of a year specified in sec13 tion 804 for the commencement of a proceeding 

14 if a petition has not been filed by that date, the 

15 Copyright Royalty Judges shall cause to be 

16 published in the Federal Register notice of com17 mencement of proceedings under this chapter 

18 calling for the filing of petitions to participate 

19 in a proceeding under this chapter for the pur20 pose of making the relevant determination 

21 under section 111, 112, 114, 115, 116, 118, 

22 119, 1004 or 1007, as the case may be. 

23 ‘‘(ii) Petitions to participate shall be filed 

24 by no later than 30 days after publication of 

25 notice of commencement of a proceeding, under 
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1 clause (i), except that the Copyright Royalty 

2 Judges may, for substantial good cause shown 

3 and if there is no prejudice to the participants 

4 that have already filed petitions, accept late pe5 titions to participate at any time up to the date 

6 that is 90 days before the date on which par7 ticipants in the proceeding are to file their writ8 ten direct statements. 

9 ‘‘(B) PETITIONS TO PARTICIPATE.—Each 

10 petition to participate in a proceeding shall de11 scribe the petitioner’s interest in the subject 

12 matter of the proceeding. Parties with similar 

13 interests may file a single petition to partici14 pate. 

15 ‘‘(2) PARTICIPATION IN GENERAL.—Subject to 

16 paragraph (4), a person may participate in a pro17 ceeding under this chapter, including through the 

18 submission of briefs or other information, only if—

19 ‘‘(A) that person has filed a petition to 

20 participate in accordance with paragraph (1) 

21 (either individually or as a group under para22 graph (1)(B)), together with a filing fee of 

23 $150; 
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1 ‘‘(B) the Copyright Royalty Judges have 

2 not determined that the petition to participate 

3 is facially invalid; and 

4 ‘‘(C) the Copyright Royalty Judges have 

5 not determined, sua sponte or on the motion of 

6 another participant in the proceeding, that the 

7 person lacks a significant interest in the pro8 ceeding. 

9 ‘‘(3) VOLUNTARY NEGOTIATION PERIOD.—

10 ‘‘(A) IN GENERAL.—Promptly after the 

11 date for filing of petitions to participate in a 

12 proceeding, the Copyright Royalty Judges shall 

13 make available to all participants in the pro14 ceeding a list of such participants and shall ini15 tiate a voluntary negotiation period among the 

16 participants. 

17 ‘‘(B) LENGTH OF PROCEEDINGS.—The vol18 untary negotiation period initiated under sub19 paragraph (A) shall be 3 months. 

20 ‘‘(C) DETERMINATION OF SUBSEQUENT

21 PROCEEDINGS.—At the close of the voluntary 

22 negotiation proceedings, the Copyright Royalty 

23 Judges shall, if further proceedings under this 

24 chapter are necessary, determine whether and 
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1 to what extent paragraphs (4) and (5) will 

2 apply to the parties. 

3 ‘‘(4) SMALL CLAIMS PROCEDURE IN DISTRIBU4 TION PROCEEDINGS.—

5 ‘‘(A) IN GENERAL.—If, in a proceeding 

6 under this chapter to determine the distribution 

7 of royalties, a participant in the proceeding as8 serts that the contested amount of the claim is 

9 $10,000 or less, the Copyright Royalty Judges 

10 shall decide the controversy on the basis of the 

11 filing in writing of the initial claim, the initial 

12 response by any opposing participant, and one 

13 additional response by each such party. The 

14 participant asserting the claim shall not be re15 quired to pay the filing fee under paragraph 

16 (2). 

17 ‘‘(B) BAD FAITH INFLATION OF CLAIM.—

18 If the Copyright Royalty Judges determine that 

19 a participant asserts in bad faith an amount in 

20 controversy in excess of $10,000 for the pur21 pose of avoiding a determination under the pro22 cedure set forth in subparagraph (A), the Copy23 right Royalty Judges shall impose a fine on 

24 that participant in an amount not to exceed the 

25 difference between the actual amount distrib-
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1 uted and the amount asserted by the partici2 pant. 

3 ‘‘(5) PAPER PROCEEDINGS IN RATEMAKING

4 PROCEEDINGS.—The Copyright Royalty Judges in 

5 proceedings under this chapter to determine royalty 

6 rates may decide, sua sponte or upon motion of a 

7 participant, to determine issues on the basis of ini8 tial filings in writing, initial responses by any oppos9 ing participant, and one additional response by each 

10 such participant. Prior to making such decision to 

11 proceed on such a paper record only, the Copyright 

12 Royalty Judges shall offer to all parties to the pro13 ceeding the opportunity to comment on the decision. 

14 The procedure under this paragraph—

15 ‘‘(A) shall be applied in cases in which 

16 there is no genuine issue of material fact, there 

17 is no need for evidentiary hearings, and all par18 ticipants in the proceeding agree in writing to 

19 the procedure; and 

20 ‘‘(B) may be applied under such other cir21 cumstances as the Copyright Royalty Judges 

22 consider appropriate. 

23 ‘‘(6) REGULATIONS.—

24 ‘‘(A) IN GENERAL.—The Copyright Roy25 alty Judges may issue regulations to carry out 
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1 their functions under this title. Not later than 

2 120 days after Copyright Royalty Judges or in3 terim Copyright Royalty Judges, as the case 

4 may be, are first appointed after the enactment 

5 of the Copyright Royalty and Distribution Re6 form Act of 2004, such judges shall issue regu7 lations to govern proceedings under this chap8 ter. 

9 ‘‘(B) INTERIM REGULATIONS.—Until regu10 lations are adopted under subparagraph (A), 

11 the Copyright Royalty Judges shall apply the 

12 regulations in effect under this chapter on the 

13 day before the effective date of the Copyright 

14 Royalty and Distribution Reform Act of 2004, 

15 to the extent such regulations are not incon16 sistent with this chapter, except that functions 

17 carried out under such regulations by the Li18 brarian of Congress, the Register of Copyrights, 

19 or copyright arbitration royalty panels that, as 

20 of such date of enactment, are to be carried out 

21 by the Copyright Royalty Judges under this 

22 chapter, shall be carried out by the Copyright 

23 Royalty Judges under such regulations. 
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1 ‘‘(C) REQUIREMENTS.—Regulations issued 

2 under subparagraph (A) shall include the fol3 lowing: 

4 ‘‘(i) The written direct statements of 

5 all participants in a proceeding under 

6 paragraph (2) shall be filed by a date spec7 ified by the Copyright Royalty Judges, 

8 which may be no earlier than four months, 

9 and no later than five months, after the 

10 end of the voluntary negotiation period 

11 under paragraph (3). Notwithstanding the 

12 preceding sentence, a participant in a pro13 ceeding may, within 15 days after the end 

14 of the discovery period specified in clause 

15 (iii), file an amended written direct state16 ment based on new information received 

17 during the discovery process. 

18 ‘‘(ii)(I) Following the submission to 

19 the Copyright Royalty Judges of written 

20 direct statements by the participants in a 

21 proceeding under paragraph (2), the 

22 judges shall meet with the participants for 

23 the purpose of setting a schedule for con24 ducting and completing discovery. Such 
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1 schedule shall be determined by the Copy2 right Royalty Judges. 

3 ‘‘(II) In this chapter, the term ‘writ4 ten direct statements’ means witness state5 ments, testimony, and exhibits to be pre6 sented in the proceedings, and such other 

7 information that is necessary to establish 

8 terms and rates, or the distribution of roy9 alty payments, as the case may be, as set 

10 forth in regulations issued by the Copy11 right Royalty Judges.

12 ‘‘(iii) Hearsay may be admitted in 

13 proceedings under this chapter to the ex14 tent deemed appropriate by the Copyright 

15 Royalty Judges. 

16 ‘‘(iv) Discovery in such proceedings 

17 shall be permitted for a period of 60 days, 

18 except for discovery ordered by the Copy19 right Royalty Judges in connection with 

20 the resolution of motions, orders and dis21 putes pending at the end of such period.

22 ‘‘(v) Any participant under paragraph 

23 (2) in a proceeding under this chapter to 

24 determine royalty rates may, upon written 

25 notice, seek discovery of information and 
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1 materials relevant and material to the pro2 ceeding. Any objection to any such dis3 covery request shall be resolved by a mo4 tion or request to compel discovery made 

5 to the Copyright Royalty Judges. Each 

6 motion or request to compel discovery shall 

7 be determined by the Copyright Royalty 

8 Judges, or by a Copyright Royalty Judge 

9 when permitted under subsection (a)(2), 

10 who may approve the request only if the 

11 evidence that would be produced is relevant 

12 and material. A Copyright Royalty Judge 

13 may refuse a request to compel discovery 

14 of evidence that has been found to be rel15 evant and material, only upon good cause 

16 shown. For purposes of the preceding sen17 tence, the basis for ‘good cause’ may only 

18 be that—

19 ‘‘(I) the discovery sought is un20 reasonably cumulative or duplicative, 

21 or is obtainable from another source 

22 that is more convenient, less burden23 some, or less expensive; 

24 ‘‘(II) the participant seeking dis25 covery has had ample opportunity by 
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1 discovery in the action to obtain the 

2 information sought; or 

3 ‘‘(III) the burden or expense of 

4 the proposed discovery outweighs its 

5 likely benefit, taking into account the 

6 needs and resources of the partici7 pants, the importance of the issues at 

8 stake, and the importance of the pro9 posed discovery in resolving the 

10 issues. 

11 ‘‘(vi) The rules in effect on the day 

12 before the effective date of the Copyright 

13 Royalty and Distribution Reform Act of 

14 2004, relating to discovery in proceedings 

15 under this title to determine the distribu16 tion of royalty fees, shall continue to apply 

17 to such proceedings on and after such ef18 fective date. 

19 ‘‘(vii) The Copyright Royalty Judges 

20 may issue subpoenas requiring the produc21 tion of evidence or witnesses, but only if 

22 the evidence requested to be produced or 

23 that would be proffered by the witness is 

24 relevant and material. 
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1 ‘‘(viii) The Copyright Royalty Judges 

2 shall order a settlement conference among 

3 the participants in the proceeding to facili4 tate the presentation of offers of settle5 ment among the participants. The settle6 ment conference shall be held during a 21-

7 day period following the end of the dis8 covery period. 

9 ‘‘(c) DETERMINATION OF COPYRIGHT ROYALTY

10 JUDGES.—

11 ‘‘(1) TIMING.—The Copyright Royalty Judges 

12 shall issue their determination in a proceeding not 

13 later than 11 months after the conclusion of the 21-

14 day settlement conference period under subsection 

15 (b)(3)(C)(vi), but, in the case of a proceeding to de16 termine successors to rates or terms that expire on 

17 a specified date, in no event later than 15 days be18 fore the expiration of the then current statutory 

19 rates and terms. 

20 ‘‘(2) REHEARINGS.—

21 ‘‘(A) IN GENERAL.—The Copyright Roy22 alty Judges may, in exceptional cases, upon mo23 tion of a participant under subsection (b)(2), 

24 order a rehearing, after the determination in a 

25 proceeding is issued under paragraph (1), on 
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1 such matters as the Copyright Royalty Judges 

2 determine to be appropriate. 

3 ‘‘(B) TIMING FOR FILING MOTION.—Any 

4 motion for a rehearing under subparagraph (A) 

5 may only be filed within 15 days after the date 

6 on which the Copyright Royalty Judges deliver 

7 their initial determination concerning rates and 

8 terms to the participants in the proceeding. 

9 ‘‘(C) PARTICIPATION BY OPPOSING PARTY

10 NOT REQUIRED.—In any case in which a re11 hearing is ordered, any opposing party shall not 

12 be required to participate in the rehearing. 

13 ‘‘(D) NO NEGATIVE INFERENCE.—No neg14 ative inference shall be drawn from lack of par15 ticipation in a rehearing. 

16 ‘‘(E) CONTINUITY OF RATES AND

17 TERMS.—(i) If the decision of the Copyright 

18 Royalty Judges on any motion for a rehearing 

19 is not rendered before the expiration of the 

20 statutory rates and terms that were previously 

21 in effect, in the case of a proceeding to deter22 mine successors to rates and terms that expire 

23 on a specified date, then—

24 ‘‘(I) the initial determination of the 

25 Copyright Royalty Judges that is the sub-
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1 ject of the rehearing motion shall be effec2 tive as of the day following the date on 

3 which the rates and terms that were pre4 viously in effect expire; and 

5 ‘‘(II) in the case of a proceeding 

6 under section 114(f)(1)(C) or 114(f)(2)(C), 

7 royalty rates and terms shall, for purposes 

8 of section 114(f)(4)(B), be deemed to have 

9 been set at those rates and terms con10 tained in the initial determination of the 

11 Copyright Royalty Judges that is the sub12 ject of the rehearing motion, as of the date 

13 of that determination. 

14 ‘‘(ii) The pendency of a motion for a re15 hearing under this paragraph shall not relieve 

16 persons obligated to make royalty payments 

17 who would be affected by the determination on 

18 that motion from providing the statements of 

19 account and any reports of use, to the extent 

20 required, and paying the royalties required 

21 under the relevant determination or regulations. 

22 ‘‘(iii) Notwithstanding clause (ii), whenever 

23 royalties described in clause (ii) are paid to a 

24 person other than the Copyright Office, the en25 tity designated by the Copyright Royalty 
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1 Judges to which such royalties are paid by the 

2 copyright user (and any successor thereto) 

3 shall, within 60 days after the motion for re4 hearing is resolved or, if the motion is granted, 

5 within 60 days after the rehearing is concluded, 

6 return any excess amounts previously paid to 

7 the extent necessary to comply with the final 

8 determination of royalty rates by the Copyright 

9 Royalty Judges. 

10 ‘‘(3) CONTENTS OF DETERMINATION.—A deter11 mination of the Copyright Royalty Judges shall be 

12 accompanied by the written record, and shall set 

13 forth the facts that the Copyright Royalty Judges 

14 found relevant to their determination. Among other 

15 terms adopted in a determination, the Copyright 

16 Royalty Judges may specify notice and record17 keeping requirements of users of the copyrights at 

18 issue that apply in lieu of those that would otherwise 

19 apply under regulations. 

20 ‘‘(4) CONTINUING JURISDICTION.—The Copy21 right Royalty Judges may amend the determination 

22 or the regulations issued pursuant to the determina23 tion in order to correct any technical errors in the 

24 determination or to respond to unforeseen cir-
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1 cumstances that preclude the proper effectuation of 

2 the determination. 

3 ‘‘(5) PROTECTIVE ORDER.—The Copyright Roy4 alty Judges may issue such orders as may be appro5 priate to protect confidential information, including 

6 orders excluding confidential information from the 

7 record of the determination that is published or 

8 made available to the public, except that any terms 

9 or rates of royalty payments or distributions may 

10 not be excluded. 

11 ‘‘(6) PUBLICATION OF DETERMINATION.—The 

12 Librarian of Congress shall cause the determination, 

13 and any corrections thereto, to be published in the 

14 Federal Register. The Librarian of Congress shall 

15 also publicize the determination and corrections in 

16 such other manner as the Librarian considers appro17 priate, including, but not limited to, publication on 

18 the Internet. The Librarian of Congress shall also 

19 make the determination, corrections, and the accom20 panying record available for public inspection and 

21 copying. 

22 ‘‘(d) JUDICIAL REVIEW.—

23 ‘‘(1) APPEAL.—Any determination of the Copy24 right Royalty Judges under subsection (c) may, 

25 within 30 days after the publication of the deter-
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1 mination in the Federal Register, be appealed, to the 

2 United States Court of Appeals for the District of 

3 Columbia Circuit, by any aggrieved participant in 

4 the proceeding under subsection (b)(2) who fully 

5 participated in the proceeding and who would be 

6 bound by the determination. If no appeal is brought 

7 within that 30-day period, the determination of the 

8 Copyright Royalty Judges shall be final, and the 

9 royalty fee or determination with respect to the dis10 tribution of fees, as the case may be, shall take ef11 fect as set forth in paragraph (2). 

12 ‘‘(2) EFFECT OF RATES.—

13 ‘‘(A) EXPIRATION ON SPECIFIED DATE.—

14 When this title provides that the royalty rates 

15 and terms that were previously in effect are to 

16 expire on a specified date, any adjustment or 

17 determination by the Copyright Royalty Judges 

18 of successor rates and terms for an ensuing 

19 statutory license period shall be effective as of 

20 the day following the date of expiration of the 

21 rates and terms that were previously in effect, 

22 even if the determination of the Copyright Roy23 alty Judges is rendered on a later date. 

24 ‘‘(B) OTHER CASES.—In cases where rates 

25 and terms do not expire on a specified date or 
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1 have not yet been established, successor or new 

2 rates or terms shall take effect on the first day 

3 of the second month that begins after the publi4 cation of the determination of the Copyright 

5 Royalty Judges in the Federal Register, except 

6 as otherwise provided in this title, and the rates 

7 and terms previously in effect, to the extent ap8 plicable, shall remain in effect until such suc9 cessor rates and terms become effective. 

10 ‘‘(C) OBLIGATION TO MAKE PAYMENTS.—

11 (i) The pendency of an appeal under this sub12 section shall not relieve persons obligated to 

13 make royalty payments under section 111, 112, 

14 114, 115, 116, 118, 119, or 1003, who would 

15 be affected by the determination on appeal, 

16 from providing the statements of account (and 

17 any report of use, to the extent required) and 

18 paying the royalties required under the relevant 

19 determination or regulations. 

20 ‘‘(ii) Notwithstanding clause (i), whenever 

21 royalties described in clause (i) are paid to a 

22 person other than the Copyright Office, the en23 tity designated by the Copyright Royalty 

24 Judges to which such royalties are paid by the 

25 copyright user (and any successor thereto) 
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1 shall, within 60 days after the final resolution 

2 of the appeal, return any excess amounts pre3 viously paid (and interest thereon, if ordered 

4 pursuant to paragraph (3)) to the extent nec5 essary to comply with the final determination of 

6 royalty rates on appeal. 

7 ‘‘(3) JURISDICTION OF COURT.—If the court, 

8 pursuant to section 706 of title 5, modifies or va9 cates a determination of the Copyright Royalty 

10 Judges, the court may enter its own determination 

11 with respect to the amount or distribution of royalty 

12 fees and costs, and order the repayment of any ex13 cess fees, the payment of any underpaid fees, and 

14 the payment of interest pertaining respectively there15 to, in accordance with its final judgment. The court 

16 may also vacate the determination of the Copyright 

17 Royalty Judges and remand the case to the Copy18 right Royalty Judges for further proceedings in ac19 cordance with subsection (a). 

20 ‘‘(e) ADMINISTRATIVE MATTERS.—

21 ‘‘(1) DEDUCTION OF COSTS OF LIBRARY OF

22 CONGRESS AND COPYRIGHT OFFICE FROM FILING

23 FEES.—

24 ‘‘(A) DEDUCTION FROM FILING FEES.—

25 The Librarian of Congress may, to the extent 
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1 not otherwise provided under this title, deduct 

2 from the filing fees collected under subsection 

3 (b) for a particular proceeding under this chap4 ter the reasonable costs incurred by the Librar5 ian of Congress, the Copyright Office, and the 

6 Copyright Royalty Judges in conducting that 

7 proceeding, other than the salaries of the Copy8 right Royalty Judges and the 3 staff members 

9 appointed under section 802(b).

10 ‘‘(B) AUTHORIZATION OF APPROPRIA11 TIONS.—There are authorized to be appro12 priated such sums as may be necessary to pay 

13 the costs of proceedings under this chapter not 

14 covered by the filing fees collected under sub15 section (b). All funds made available pursuant 

16 to this subparagraph shall remain available 

17 until expended. 

18 ‘‘(2) POSITIONS REQUIRED FOR ADMINISTRA19 TION OF COMPULSORY LICENSING.—Section 307 of 

20 the Legislative Branch Appropriations Act, 1994, 

21 shall not apply to employee positions in the Library 

22 of Congress that are required to be filled in order 

23 to carry out section 111, 112, 114, 115, 116, 118, 

24 or 119 or chapter 10. 
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1 ‘‘§ 804. Institution of proceedings 

2 ‘‘(a) FILING OF PETITION.—With respect to pro3 ceedings referred to in paragraphs (1) and (2) of section 

4 801(b) concerning the determination or adjustment of roy5 alty rates as provided in sections 111, 112, 114, 115, 116, 

6 118, and 1004, during the calendar years specified in the 

7 schedule set forth in subsection (b), any owner or user 

8 of a copyrighted work whose royalty rates are specified 

9 by this title, or are established under this chapter before 

10 or after the enactment of the Copyright Royalty and Dis11 tribution Reform Act of 2004, may file a petition with the 

12 Copyright Royalty Judges declaring that the petitioner re13 quests a determination or adjustment of the rate. The 

14 Copyright Royalty Judges shall make a determination as 

15 to whether the petitioner has such a significant interest 

16 in the royalty rate in which a determination or adjustment 

17 is requested. If the Copyright Royalty Judges determine 

18 that the petitioner has such a significant interest, the 

19 Copyright Royalty Judges shall cause notice of this deter20 mination, with the reasons therefor, to be published in the 

21 Federal Register, together with the notice of commence22 ment of proceedings under this chapter. With respect to 

23 proceedings under paragraph (1) of section 801(b) con24 cerning the determination or adjustment of royalty rates 

25 as provided in sections 112 and 114, during the calendar 

26 years specified in the schedule set forth in subsection (b), 
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1 the Copyright Royalty Judges shall cause notice of com2 mencement of proceedings under this chapter to be pub3 lished in the Federal Register as provided in section 

4 803(b)(1)(A). 

5 ‘‘(b) TIMING OF PROCEEDINGS.—

6 ‘‘(1) SECTION 111 PROCEEDINGS.—(A) A peti7 tion described in subsection (a) to initiate pro8 ceedings under section 801(b)(2) concerning the ad9 justment of royalty rates under section 111 to which 

10 subparagraph (A) or (D) of section 801(b)(2) ap11 plies may be filed during the year 2005 and in each 

12 subsequent fifth calendar year. 

13 ‘‘(B) In order to initiate proceedings under sec14 tion 801(b)(2) concerning the adjustment of royalty 

15 rates under section 111 to which subparagraph (B) 

16 or (C) of section 801(b)(2) applies, within 12 

17 months after an event described in either of those 

18 subsections, any owner or user of a copyrighted 

19 work whose royalty rates are specified by section 

20 111, or by a rate established under this chapter be21 fore or after the enactment of the Copyright Royalty 

22 and Distribution Reform Act of 2004, may file a pe23 tition with the Copyright Royalty Judges declaring 

24 that the petitioner requests an adjustment of the 

25 rate. The Copyright Royalty Judges shall then pro-
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1 ceed as set forth in subsection (a) of this section. 

2 Any change in royalty rates made under this chapter 

3 pursuant to this subparagraph may be reconsidered 

4 in the year 2005, and each fifth calendar year there5 after, in accordance with the provisions in section 

6 801(b)(3)(B) or (C), as the case may be. A petition 

7 for adjustment of rates under section 11(d)(1)(B) as 

8 a result of a change is the rules and regulations of 

9 the Federal Communications Commission shall set 

10 forth the change on which the petition is based. 

11 ‘‘(C) Any adjustment of royalty rates under sec12 tion 111 shall take effect as of the first accounting 

13 period commencing after the publication of the de14 termination of the Copyright Royalty Judges in the 

15 Federal Register, or on such other date as is speci16 fied in that determination. 

17 ‘‘(2) CERTAIN SECTION 112 PROCEEDINGS.—

18 Proceedings under this chapter shall be commenced 

19 in the year 2007 to determine reasonable terms and 

20 rates of royalty payments for the activities described 

21 in section 112(e)(1) relating to the limitation on ex22 clusive rights specified by section 114(d)(1)(C)(iv), 

23 to become effective on January 1, 2009. Such pro24 ceedings shall be repeated in each subsequent fifth 

25 calendar year. 
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1 ‘‘(3) SECTION 114 AND CORRESPONDING 112

2 PROCEEDINGS.—

3 ‘‘(A) FOR ELIGIBLE NONSUBSCRIPTION

4 SERVICES AND NEW SUBSCRIPTION SERVICES.—

5 Proceedings under this chapter shall be com6 menced as soon as practicable after the effective 

7 date of the Copyright Royalty and Distribution 

8 Reform Act of 2004 to determine reasonable 

9 terms and rates of royalty payments under sec10 tions 114 and 112 for the activities of eligible 

11 nonsubscription transmission services and new 

12 subscription services, to be effective for the pe13 riod beginning on January 1, 2006, and ending 

14 on December 31, 2010. Such proceedings shall 

15 next be commenced in January 2009 to deter16 mine reasonable terms and rates of royalty pay17 ments, to become effective on January 1, 2011. 

18 Thereafter, such proceedings shall be repeated 

19 in each subsequent fifth calendar year. 

20 ‘‘(B) FOR PREEXISTING SUBSCRIPTION

21 AND SATELLITE DIGITAL AUDIO RADIO SERV22 ICES.—Proceedings under this chapter shall be 

23 commenced in January 2006 to determine rea24 sonable terms and rates of royalty payments 

25 under sections 114 and 112 for the activities of 
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1 preexisting subscription services, to be effective 

2 during the period beginning on January 1, 

3 2008, and ending on December 31, 2012, and 

4 preexisting satellite digital audio radio services, 

5 to be effective during the period beginning on 

6 January 1, 2007, and ending on December 31, 

7 2012. Such proceedings shall next be com8 menced in 2011 to determine reasonable terms 

9 and rates of royalty payments, to become effec10 tive on January 1, 2013. Thereafter, such pro11 ceedings shall be repeated in each subsequent 

12 fifth calendar year. 

13 ‘‘(C)(i) Notwithstanding any other provi14 sion of this chapter, this subparagraph shall 

15 govern proceedings commenced pursuant to sec16 tions 114(f)(1)(C) and 114(f)(2)(C) concerning 

17 new types of services. 

18 ‘‘(ii) Not later than 30 days after a peti19 tion to determine rates and terms for a new 

20 type of service that is filed by any copyright 

21 owner of sound recordings, or such new type of 

22 service, indicating that such new type of service 

23 is or is about to become operational, the Copy24 right Royalty Judges shall issue a notice for a 
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1 proceeding to determine rates and terms for 

2 such service. 

3 ‘‘(iii) The proceeding shall follow the 

4 schedule set forth in such subsections (b), (c), 

5 and (d) of section 803, except that—

6 ‘‘(I) the determination shall be issued 

7 by not later than 24 months after the pub8 lication of the notice under clause (ii); and 

9 ‘‘(II) the decision shall take effect as 

10 provided in subsections (c)(2) and (d)(2) of 

11 section 803 and section 114(f)(4)(B)(ii) 

12 and (C). 

13 ‘‘(iv) The rates and terms shall remain in 

14 effect for the period set forth in section 

15 114(f)(1)(C) or 114(f)(2)(C), as the case may 

16 be. 

17 ‘‘(4) SECTION 115 PROCEEDINGS.—A petition 

18 described in subsection (a) to initiate proceedings 

19 under section 801(b)(1) concerning the adjustment 

20 or determination of royalty rates as provided in sec21 tion 115 may be filed in the year 2006 and in each 

22 subsequent fifth calendar year, or at such other 

23 times as the parties have agreed under section 

24 115(c)(3)(B) and (C). 
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1 ‘‘(5) SECTION 116 PROCEEDINGS.—(A) A peti2 tion described in subsection (a) to initiate pro3 ceedings under section 801(b) concerning the deter4 mination of royalty rates and terms as provided in 

5 section 116 may be filed at any time within 1 year 

6 after negotiated licenses authorized by section 116 

7 are terminated or expire and are not replaced by 

8 subsequent agreements. 

9 ‘‘(B) If a negotiated license authorized by sec10 tion 116 is terminated or expires and is not replaced 

11 by another such license agreement which provides 

12 permission to use a quantity of musical works not 

13 substantially smaller than the quantity of such 

14 works performed on coin-operated phonorecord play15 ers during the 1-year period ending March 1, 1989, 

16 the Copyright Royalty Judges shall, upon petition 

17 filed under paragraph (1) within 1 year after such 

18 termination or expiration, commence a proceeding to 

19 promptly establish an interim royalty rate or rates 

20 for the public performance by means of a coin-oper21 ated phonorecord player of nondramatic musical 

22 works embodied in phonorecords which had been 

23 subject to the terminated or expired negotiated li24 cense agreement. Such rate or rates shall be the 

25 same as the last such rate or rates and shall remain 
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1 in force until the conclusion of proceedings by the 

2 Copyright Royalty Judges, in accordance with sec3 tion 803, to adjust the royalty rates applicable to 

4 such works, or until superseded by a new negotiated 

5 license agreement, as provided in section 116(b).

6 ‘‘(6) SECTION 118 PROCEEDINGS.—A petition 

7 described in subsection (a) to initiate proceedings 

8 under section 801(b)(1) concerning the determina9 tion of reasonable terms and rates of royalty pay10 ments as provided in section 118 may be filed in the 

11 year 2006 and in each subsequent fifth calendar 

12 year. 

13 ‘‘(7) SECTION 1004 PROCEEDINGS.—A petition 

14 described in subsection (a) to initiate proceedings 

15 under section 801(b)(1) concerning the adjustment 

16 of reasonable royalty rates under section 1004 may 

17 be filed as provided in section 1004(a)(3). 

18 ‘‘(8) PROCEEDINGS CONCERNING DISTRIBUTION

19 OF ROYALTY FEES.—With respect to proceedings 

20 under section 801(b)(3) concerning the distribution 

21 of royalty fees in certain circumstances under sec22 tion 111, 116, 119, or 1007, the Copyright Royalty 

23 Judges shall, upon a determination that a con24 troversy exists concerning such distribution, cause to 
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1 be published in the Federal Register notice of com2 mencement of proceedings under this chapter. 

3 ‘‘§ 805. General rule for voluntarily negotiated agree4 ments 

5 ‘‘Any rates or terms under this title that—

6 ‘‘(1) are agreed to by participants to a pro7 ceeding under section 803(b)(2), 

8 ‘‘(2) are adopted by the Copyright Royalty 

9 Judges as part of a determination under this chap10 ter, and 

11 ‘‘(3) are in effect for a period shorter than 

12 would otherwise apply under a determination pursu13 ant to this chapter, 

14 shall remain in effect for such period of time as would 

15 otherwise apply under such determination, except that the 

16 Copyright Royalty Judges shall adjust the rates pursuant 

17 to the voluntary negotiations to reflect national monetary 

18 inflation during the additional period the rates remain in 

19 effect.’’. 

20 (b) CONFORMING AMENDMENT.—The table of chap21 ters for title 17, United States Code, is amended by strik22 ing the item relating to chapter 8 and inserting the fol23 lowing:

‘‘8. Proceedings by Copyright Royalty Judges ....................... 801’’.
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1 SEC. 4. DEFINITION. 

2 Section 101 is amended by inserting after the defini3 tion of ‘‘copies’’ the following: 

4 ‘‘A ‘Copyright Royalty Judge’ is a Copyright 

5 Royalty Judge appointed under section 802 of this 

6 title, and includes any individual serving as an in7 terim Copyright Royalty Judge under such section.’’. 

8 SEC. 5. TECHNICAL AMENDMENTS. 

9 (a) CABLE RATES.—Section 111(d) is amended—

10 (1) in paragraph (2), in the second sentence, by 

11 striking ‘‘a copyright arbitration royalty panel’’ and 

12 inserting ‘‘the Copyright Royalty Judges.’’; and 

13 (2) in paragraph (4)—

14 (A) in subparagraph (A), by striking ‘‘Li15 brarian of Congress’’ each place it appears and 

16 inserting ‘‘Copyright Royalty Judges’’; 

17 (B) in subparagraph (B)—

18 (i) in the first sentence, by striking 

19 ‘‘Librarian of Congress shall, upon the rec20 ommendation of the Register of Copy21 rights,’’ and inserting ‘‘Copyright Royalty 

22 Judges shall’’; 

23 (ii) in the second sentence, by striking 

24 ‘‘Librarian determines’’ and inserting 

25 ‘‘Copyright Royalty Judges determine’’; 

26 and 
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1 (iii) in the third sentence—

2 (I) by striking ‘‘Librarian’’ each 

3 place it appears and inserting ‘‘Copy4 right Royalty Judges’’; and 

5 (II) by striking ‘‘convene a copy6 right arbitration royalty panel’’ and 

7 inserting ‘‘conduct a proceeding’’; and 

8 (C) in subparagraph (C), by striking ‘‘Li9 brarian of Congress’’ and inserting ‘‘Copyright 

10 Royalty Judges’’.

11 (b) EPHEMERAL RECORDINGS.—Section 112(e) is 

12 amended—

13 (1) in paragraph (3)—

14 (A) by amending the first sentence to read 

15 as follows: ‘‘Voluntary negotiation proceedings 

16 initiated pursuant to section 804(a) for the pur17 pose of determining reasonable terms and rates 

18 of royalty payments for the activities specified 

19 by paragraph (1) shall cover the 5-year period 

20 beginning on January 1 of the second year fol21 lowing the year in which the proceedings are 

22 commenced, or such other period as the parties 

23 may agree.’’; and 
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1 (B) in the third sentence, by striking ‘‘Li2 brarian of Congress’’ and inserting ‘‘Copyright 

3 Royalty Judges’’; 

4 (2) in paragraph (4)—

5 (A) by amending the first sentence to read 

6 as follows: ‘‘In the absence of license agree7 ments negotiated under paragraphs (2) and (3), 

8 the Copyright Royalty Judges shall commence a 

9 proceeding pursuant to chapter 8 to determine 

10 and publish in the Federal Register a schedule 

11 of reasonable rates and terms which, subject to 

12 paragraph (5), shall be binding on all copyright 

13 owners of sound recordings and transmitting 

14 organizations entitled to a statutory license 

15 under this subsection during the 5-year period 

16 specified in paragraph (3), or such other period 

17 as the parties may agree.’’; 

18 (B) by striking ‘‘copyright arbitration roy19 alty panel’’ each subsequent place it appears 

20 and inserting ‘‘Copyright Royalty Judges’’; 

21 (C) in the fourth sentence, by striking ‘‘its 

22 decision’’ and inserting ‘‘their decision’’; and 

23 (D) in the last sentence, by striking ‘‘Li24 brarian of Congress’’ and inserting ‘‘Copyright 

25 Royalty Judges’’; 
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1 (3) in paragraph (5), by striking ‘‘or decision 

2 by the Librarian of Congress’’ and inserting ‘‘, deci3 sion by the Librarian of Congress, or determination 

4 by the Copyright Royalty Judges’’;

5 (4) by striking paragraph (6) and redesignating 

6 paragraphs (7), (8), and (9), as paragraphs (6), (7), 

7 and (8), respectively; and 

8 (5) in paragraph (6)(A), as so redesignated, by 

9 striking ‘‘Librarian of Congress’’ and inserting 

10 ‘‘Copyright Royalty Judges’’. 

11 (c) SCOPE OF EXCLUSIVE RIGHTS IN SOUND RE12 CORDINGS.—Section 114(f) is amended—

13 (1) in paragraph (1)—

14 (A) in subparagraph (A)—

15 (i) by amending the first sentence to 

16 read as follows: ‘‘Voluntary negotiation 

17 proceedings initiated pursuant to section 

18 804(a) for the purpose of determining rea19 sonable terms and rates of royalty pay20 ments for subscription transmissions by 

21 preexisting subscription services and trans22 missions by preexisting satellite digital 

23 audio radio services shall cover the 5-year 

24 period beginning on January 1 of the year 

25 following the second year in which the pro-
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1 ceedings are commenced, except where dif2 ferential transitional periods are provided 

3 in section 804(b)(3), or such other period 

4 as the parties may agree.’’; and 

5 (ii) in the third sentence, by striking 

6 ‘‘Librarian of Congress’’ and inserting 

7 ‘‘Copyright Royalty Judges’’; 

8 (B) in subparagraph (B)—

9 (i) by amending the first sentence to 

10 read as follows: ‘‘In the absence of license 

11 agreements negotiated under subparagraph 

12 (A), the Copyright Royalty Judges shall 

13 commence a proceeding pursuant to chap14 ter 8 to determine and publish in the Fed15 eral Register a schedule of rates and terms 

16 which, subject to paragraph (3), shall be 

17 binding on all copyright owners of sound 

18 recordings and entities performing sound 

19 recordings affected by this paragraph dur20 ing the 5-year period specified in subpara21 graph (A), or such other date as the par22 ties may agree.’’; and 

23 (ii) in the second sentence, by striking 

24 ‘‘copyright arbitration royalty panel’’ and 

25 inserting ‘‘Copyright Royalty Judges’’; and
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1 (C) by amending subparagraph (C) to read 

2 as follows: 

3 ‘‘(C) The procedures under subparagraphs (A) 

4 and (B) also shall be initiated pursuant to a petition 

5 filed by any copyright owners of sound recordings, 

6 any preexisting subscription services, or any pre7 existing satellite digital audio radio services indi8 cating that a new type of subscription digital audio 

9 transmission service on which sound recordings are 

10 performed is or is about to become operational, for 

11 the purpose of determining reasonable terms and 

12 rates of royalty payments with respect to such new 

13 type of transmission service for the period beginning 

14 with the inception of such new type of service and 

15 ending on the date on which the royalty rates and 

16 terms for subscription digital audio transmission 

17 services most recently determined under subpara18 graph (A) or (B) and chapter 8 expire, or such other 

19 period as the parties may agree.’’; 

20 (2) in paragraph (2)—

21 (A) in subparagraph (A)—

22 (i) by amending the first sentence to 

23 read as follows: ‘‘Voluntary negotiation 

24 proceedings initiated pursuant to section 

25 804(a) for the purpose of determining rea-
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1 sonable terms and rates of royalty pay2 ments for public performances of sound re3 cordings by means of eligible nonsubscrip4 tion transmissions and transmissions by 

5 new subscription services specified by sub6 section (d)(2) shall cover the 5-year period 

7 beginning on January 1 of the second year 

8 following the year in which the proceedings 

9 are commenced, except where different 

10 transitional periods are provided in section 

11 804(b)(3)(A), or such other period as the 

12 parties may agree.’’; and 

13 (ii) in the third sentence, by striking 

14 ‘‘Librarian of Congress’’ and inserting 

15 ‘‘Copyright Royalty Judges’’; 

16 (B) in subparagraph (B)—

17 (i) by amending the first sentence to 

18 read as follows: ‘‘In the absence of license 

19 agreements negotiated under subparagraph 

20 (A), the Copyright Royalty Judges shall 

21 commence a proceeding pursuant to chap22 ter 8 to determine and publish in the Fed23 eral Register a schedule of rates and terms 

24 which, subject to paragraph (3), shall be 

25 binding on all copyright owners of sound 
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1 recordings and entities performing sound 

2 recordings affected by this paragraph dur3 ing the period specified in subparagraph 

4 (A), or such other period as the parties 

5 may agree.’’; and 

6 (ii) by striking ‘‘copyright arbitration 

7 royalty panel’’ each subsequent place it ap8 pears and inserting ‘‘Copyright Royalty 

9 Judges’’; and

10 (C) by amending subparagraph (C) to read 

11 as follows: 

12 ‘‘(C) The procedures under subparagraphs (A) 

13 and (B) shall also be initiated pursuant to a petition 

14 filed by any copyright owners of sound recordings or 

15 any eligible nonsubscription service or new subscrip16 tion service indicating that a new type of eligible 

17 nonsubscription service or new subscription service 

18 on which sound recordings are performed is or is 

19 about to become operational, for the purpose of de20 termining reasonable terms and rates of royalty pay21 ments with respect to such new type of service for 

22 the period beginning with the inception of such new 

23 type of service and ending on the date on which the 

24 royalty rates and terms for preexisting subscription 

25 digital audio transmission services or preexisting sat-
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1 ellite digital radio audio services, as the case may be, 

2 most recently determined under subparagraph (A) or 

3 (B) and chapter 8 expire, or such other period as 

4 the parties may agree.’’;

5 (3) in paragraph (3), by striking ‘‘or decision 

6 by the Librarian of Congress’’ and inserting ‘‘, deci7 sion by the Librarian of Congress, or determination 

8 by the Copyright Royalty Judges’’; and 

9 (4) in paragraph (4), by striking ‘‘Librarian of 

10 Congress’’ each place it appears and inserting 

11 ‘‘Copyright Royalty Judges’’.

12 (d) PHONORECORDS OF NONDRAMATIC MUSICAL

13 WORKS.—Section 115(c)(3) is amended—

14 (1) in subparagraph (A)(ii), by striking ‘‘(F)’’ 

15 and inserting ‘‘(E)’’; 

16 (2) in subparagraph (B)—

17 (A) by striking ‘‘under this paragraph’’ 

18 and inserting ‘‘under this section’’; and 

19 (B) by striking ‘‘subparagraphs (B) 

20 through (F)’’ and inserting ‘‘this subparagraph 

21 and subparagraphs (B) through (E)’’; 

22 (3) in subparagraph (C)—

23 (A) by amending the first sentence to read 

24 as follows: ‘‘Voluntary negotiation proceedings 

25 initiated pursuant to a petition filed under sec-
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1 tion 804(a) for the purpose of determining rea2 sonable terms and rates of royalty payments for 

3 the activities specified by this section shall 

4 cover the period beginning with the effective 

5 date of such terms and rates, but not earlier 

6 than January 1 of the second year following the 

7 year in which the petition is filed, and ending 

8 on the effective date of successor terms and 

9 rates, or such other period as the parties may 

10 agree.’’; and 

11 (B) in the third sentence, by striking ‘‘Li12 brarian of Congress’’ and inserting ‘‘Copyright 

13 Royalty Judges’’; 

14 (4) in subparagraph (D)—

15 (A) by amending the first sentence to read 

16 as follows: ‘‘In the absence of license agree17 ments negotiated under subparagraphs (B) and 

18 (C), the Copyright Royalty Judges shall com19 mence proceedings pursuant to chapter 8 to de20 termine and publish in the Federal Register a 

21 schedule of rates and terms which, subject to 

22 subparagraph (E), shall be binding on all copy23 right owners of nondramatic musical works and 

24 persons entitled to obtain a compulsory license 

25 under subsection (a)(1) during the period speci-
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1 fied in subparagraph (C) or such other period 

2 as may be determined pursuant to subpara3 graphs (B) and (C), or such other period as the 

4 parties may agree.’’; 

5 (B) in the third sentence, by striking 

6 ‘‘copyright arbitration royalty panel’’ and in7 serting ‘‘Copyright Royalty Judges’’; and 

8 (C) in the last sentence, by striking ‘‘Li9 brarian of Congress’’ and inserting ‘‘Copyright 

10 Royalty Judges’’; 

11 (5) in subparagraph (E)—

12 (A) in clause (i)—

13 (i) in the first sentence, by striking 

14 ‘‘the Librarian of Congress’’ and inserting 

15 ‘‘a copyright arbitration royalty panel, the 

16 Librarian of Congress, or the Copyright 

17 Royalty Judges’’; and 

18 (ii) in the second sentence, by striking 

19 ‘‘(C), (D) or (F) shall be given effect’’ and 

20 inserting ‘‘(C) or (D) shall be given effect 

21 as to digital phonorecord deliveries’’; and 

22 (B) in clause (ii)(I), by striking ‘‘(C), (D) 

23 or (F)’’ each place it appears and inserting 

24 ‘‘(C) or (D)’’; and
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1 (6) by striking subparagraph (F) and redesig2 nating subparagraphs (G) through (L) as subpara3 graphs (F) through (K), respectively.

4 (e) COIN-OPERATED PHONORECORD PLAYERS.—Sec5 tion 116 is amended—

6 (1) in subsection (b), by amending paragraph 

7 (2) to read as follows: 

8 ‘‘(2) CHAPTER 8 PROCEEDING.—Parties not 

9 subject to such a negotiation may have the terms 

10 and rates and the division of fees described in para11 graph (1) determined in a proceeding in accordance 

12 with the provisions of chapter 8.’’; and 

13 (2) in subsection (c)—

14 (A) in the subsection heading, by striking 

15 ‘‘COPYRIGHT ARBITRATION ROYALTY PANEL

16 DETERMINATIONS’’ and inserting ‘‘DETER17 MINATIONS BY COPYRIGHT ROYALTY JUDGES’’; 

18 and 

19 (B) by striking ‘‘a copyright arbitration 

20 royalty panel’’ and inserting ‘‘the Copyright 

21 Royalty Judges’’. 

22 (f) USE OF CERTAIN WORKS IN CONNECTION WITH

23 NONCOMMERCIAL BROADCASTING.—Section 118 is 

24 amended—

25 (1) in subsection (b)—
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1 (A) in paragraph (1)—

2 (i) in the first sentence, by striking 

3 ‘‘Librarian of Congress’’ and inserting 

4 ‘‘Copyright Royalty Judges’’; and 

5 (ii) by striking the second and third 

6 sentences; 

7 (B) in paragraph (2), by striking ‘‘the Li8 brarian of Congress:’’ and all that follows 

9 through the end of the sentence and inserting 

10 ‘‘a copyright arbitration royalty panel, the Li11 brarian of Congress, or the Copyright Royalty 

12 Judge, if copies of such agreements are filed 

13 with the Copyright Royalty Judges within 30 

14 days of execution in accordance with regulations 

15 that the Copyright Royalty Judges shall issue.’’; 

16 and

17 (C) in paragraph (3)—

18 (i) in the second sentence—

19 (I) by striking ‘‘copyright arbi20 tration royalty panel’’ and inserting 

21 ‘‘Copyright Royalty Judges’’; and

22 (II) by striking ‘‘paragraph (2).’’ 

23 and inserting ‘‘paragraph (2) or (3).’’; 
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1 (ii) in the last sentence, by striking 

2 ‘‘‘Librarian of Congress’’ and inserting 

3 ‘‘Copyright Royalty Judges’’; and 

4 (iii) by striking ‘‘(3) In’’ and all that 

5 follows through the end of the first sen6 tence and inserting the following: 

7 ‘‘(3) Voluntary negotiation proceedings initiated 

8 pursuant to a petition filed under section 804(a) for 

9 the purpose of determining a schedule of terms and 

10 rates of royalty payments by public broadcasting en11 tities to copyright owners in works specified by this 

12 subsection and the proportionate division of fees 

13 paid among various copyright owners shall cover the 

14 5-year period beginning on January 1 of the second 

15 year following the year in which the petition is filed. 

16 The parties to each negotiation proceeding shall bear 

17 their own costs. 

18 ‘‘(4) In the absence of license agreements nego19 tiated under paragraph (2) or (3), the Copyright 

20 Royalty Judges shall, pursuant to chapter 8, con21 duct a proceeding to determine and publish in the 

22 Federal Register a schedule of rates and terms 

23 which, subject to paragraph (2), shall be binding on 

24 all owners of copyright in works specified by this 

25 subsection and public broadcasting entities, regard-
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1 less of whether such copyright owners have sub2 mitted proposals to the Copyright Royalty Judges.’’;

3 (2) by striking subsection (c) and redesignating 

4 subsections (d) through (g) as subsections (c) 

5 through (f), respectively; 

6 (3) in subsection (c), as so redesignated, in the 

7 matter preceding paragraph (1)—

8 (A) by striking ‘‘(b)(2)’’ and inserting 

9 ‘‘(b)(2) or (3)’’; 

10 (B) by striking ‘‘(b)(3)’’ and inserting 

11 ‘‘(b)(4)’’; and 

12 (C) by striking ‘‘a copyright arbitration 

13 royalty panel’’ and inserting ‘‘the Copyright 

14 Royalty Judges’’; 

15 (4) in subsection (d), as so redesignated—

16 (A) by striking ‘‘in the Copyright Office’’ 

17 and inserting ‘‘with the Copyright Royalty 

18 Judges’’; and 

19 (B) by striking ‘‘Register of Copyrights’’ 

20 and inserting ‘‘Copyright Royalty Judges’’; and 

21 (5) in subsection (f), as so redesignated, by 

22 striking ‘‘(d)’’ and inserting ‘‘(c)’’. 

23 (g) SECONDARY TRANSMISSIONS BY SATELLITE CAR24 RIERS.—Section 119(b) is amended—
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1 (1) in paragraph (3), by striking ‘‘Librarian of 

2 Congress’’ and inserting ‘‘Copyright Royalty 

3 Judges’’; and 

4 (2) in paragraph (4)—

5 (A) in subparagraph (A), by striking ‘‘Li6 brarian of Congress’’ each place it appears and 

7 inserting ‘‘Copyright Royalty Judges’’; and 

8 (B) by amending subparagraphs (B) and 

9 (C) to read as follows: 

10 ‘‘(B) DETERMINATION OF CONTROVERSY; 

11 DISTRIBUTIONS.—After the first day of August 

12 of each year, the Copyright Royalty Judges 

13 shall determine whether there exists a con14 troversy concerning the distribution of royalty 

15 fees. If the Copyright Royalty Judges determine 

16 that no such controversy exists, the Librarian 

17 of Congress shall, after deducting reasonable 

18 administrative costs under this paragraph, dis19 tribute such fees to the copyright owners enti20 tled to receive them, or to their designated 

21 agents. If the Copyright Royalty Judges find 

22 the existence of a controversy, the Copyright 

23 Royalty Judges shall, pursuant to chapter 8 of 

24 this title, conduct a proceeding to determine the 

25 distribution of royalty fees. 
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1 ‘‘(C) WITHHOLDING OF FEES DURING

2 CONTROVERSY.—During the pendency of any 

3 proceeding under this subsection, the Copyright 

4 Royalty Judges shall withhold from distribution 

5 an amount sufficient to satisfy all claims with 

6 respect to which a controversy exists, subject to 

7 any distributions made under section 

8 801(b)(3).’’.

9 (h) DIGITAL AUDIO RECORDING DEVICES.—

10 (1) ROYALTY PAYMENTS.—Section 1004(a)(3) 

11 is amended by striking ‘‘Librarian of Congress’’ 

12 each place it appears and inserting ‘‘Copyright Roy13 alty Judges’’.

14 (2) ENTITLEMENT TO ROYALTY PAYMENTS.—

15 Section 1006(c) is amended by striking ‘‘Librarian 

16 of Congress shall convene a copyright arbitration 

17 royalty panel which’’ and inserting ‘‘Copyright Roy18 alty Judges’’. 

19 (3) PROCEDURES FOR DISTRIBUTING ROYALTY

20 PAYMENTS.—Section 1007 is amended—

21 (A) in subsection (a), by amending para22 graph (1) to read as follows: 

23 ‘‘(1) FILING OF CLAIMS.—During the first 2 

24 months of each calendar year, every interested copy25 right party seeking to receive royalty payments to 
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1 which such party is entitled under section 1006 shall 

2 file with the Copyright Royalty Judges a claim for 

3 payments collected during the preceding year in such 

4 form and manner as the Copyright Royalty Judges 

5 shall prescribe by regulation.’’; and 

6 (B) by amending subsections (b) and (c) to 

7 read as follows: 

8 ‘‘(b) DISTRIBUTION OF PAYMENTS IN THE ABSENCE

9 OF A DISPUTE.—After the period established for the filing 

10 of claims under subsection (a), in each year, the Copyright 

11 Royalty Judges shall determine whether there exists a con12 troversy concerning the distribution of royalty payments 

13 under section 1006(c). If the Copyright Royalty Judges 

14 determine that no such controversy exists, the Librarian 

15 of Congress shall, within 30 days after such determina16 tion, authorize the distribution of the royalty payments as 

17 set forth in the agreements regarding the distribution of 

18 royalty payments entered into pursuant to subsection (a). 

19 The Librarian of Congress shall, before such royalty pay20 ments are distributed, deduct the reasonable administra21 tive costs incurred by the Librarian under this section.

22 ‘‘(c) RESOLUTION OF DISPUTES.—If the Copyright 

23 Royalty Judges find the existence of a controversy, the 

24 Copyright Royalty Judges shall, pursuant to chapter 8 of 

25 this title, conduct a proceeding to determine the distribu-
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1 tion of royalty payments. During the pendency of such a 

2 proceeding, the Copyright Royalty Judges shall withhold 

3 from distribution an amount sufficient to satisfy all claims 

4 with respect to which a controversy exists, but shall, to 

5 the extent feasible, authorize the distribution of any 

6 amounts that are not in controversy. The Librarian of 

7 Congress shall, before such royalty payments are distrib8 uted, deduct the reasonable administrative costs incurred 

9 by the Librarian under this section.’’. 

10 (4) DETERMINATION OF CERTAIN DISPUTES.—

11 (A) Section 1010 is amended to read as follows: 

12 ‘‘§ 1010. Determination of certain disputes 

13 ‘‘(a) SCOPE OF DETERMINATION.—Before the date 

14 of first distribution in the United States of a digital audio 

15 recording device or a digital audio interface device, any 

16 party manufacturing, importing, or distributing such de17 vice, and any interested copyright party may mutually 

18 agree to petition the Copyright Royalty Judges to deter19 mine whether such device is subject to section 1002, or 

20 the basis on which royalty payments for such device are 

21 to be made under section 1003. 

22 ‘‘(b) INITIATION OF PROCEEDINGS.—The parties 

23 under subsection (a) shall file the petition with the Copy24 right Royalty Judges requesting the commencement of a 

25 proceeding. Within 2 weeks after receiving such a petition, 
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1 the Chief Copyright Royalty Judge shall cause notice to 

2 be published in the Federal Register of the initiation of 

3 the proceeding. 

4 ‘‘(c) STAY OF JUDICIAL PROCEEDINGS.—Any civil 

5 action brought under section 1009 against a party to a 

6 proceeding under this section shall, on application of one 

7 of the parties to the proceeding, be stayed until completion 

8 of the proceeding. 

9 ‘‘(d) PROCEEDING.—The Copyright Royalty Judges 

10 shall conduct a proceeding with respect to the matter con11 cerned, in accordance with such procedures as the Copy12 right Royalty Judges may adopt. The Copyright Royalty 

13 Judges shall act on the basis of a fully documented written 

14 record. Any party to the proceeding may submit relevant 

15 information and proposals to the Copyright Royalty 

16 Judges. The parties to the proceeding shall each bear their 

17 respective costs of participation. 

18 ‘‘(e) JUDICIAL REVIEW.—Any determination of the 

19 Copyright Royalty Judges under subsection (d) may be 

20 appealed, by a party to the proceeding, in accordance with 

21 section 803(d) of this title. The pendency of an appeal 

22 under this subsection shall not stay the determination of 

23 the Copyright Royalty Judges. If the court modifies the 

24 determination of the Copyright Royalty Judges, the court 

25 shall have jurisdiction to enter its own decision in accord-
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1 ance with its final judgment. The court may further vacate 

2 the determination of the Copyright Royalty Judges and 

3 remand the case for proceedings as provided in this sec4 tion.’’. 

5 (B) The item relating to section 1010 in the 

6 table of sections for chapter 10 is amended to read 

7 as follows:

‘‘1010. Determination of certain disputes.’’.

8 SEC. 6. EFFECTIVE DATE AND TRANSITION PROVISIONS. 

9 (a) EFFECTIVE DATE.—This Act and the amend10 ments made by this Act shall take effect 6 months after 

11 the date of the enactment of this Act, except that the Li12 brarian of Congress shall appoint interim Copyright Roy13 alty Judges under section 802(d) of title 17, United States 

14 Code, as amended by this Act, within 90 days after such 

15 date of enactment to carry out the functions of the Copy16 right Royalty Judges under title 17, United States Code, 

17 to the extent that Copyright Royalty Judges provided for 

18 in section 801(a) of title 17, United States Code, as 

19 amended by this Act, have not been appointed before the 

20 end of that 90-day period. 

21 (b) TRANSITION PROVISIONS.—

22 (1) IN GENERAL.—Subject to paragraph (2), 

23 the amendments made by this Act shall not affect 

24 any proceedings commenced, petitions filed, or vol25 untary agreements entered into before the enact-
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1 ment of this Act under the provisions of title 17, 

2 United States Code, amended by this Act, and pend3 ing on such date of enactment. Such proceedings 

4 shall continue, determinations made in such pro5 ceedings, and appeals taken therefrom, as if this Act 

6 had not been enacted, and shall continue in effect 

7 until modified under title 17, United States Code, as 

8 amended by this Act. Such petitions filed and vol9 untary agreements entered into shall remain in ef10 fect as if this Act had not been enacted. 

11 (2) EFFECTIVE PERIODS FOR CERTAIN RATE12 MAKING PROCEEDINGS.—Notwithstanding paragraph 

13 (1), terms and rates in effect under section 

14 114(f)(2) or 112(e) of title 17, United States Code, 

15 for new subscription services, eligible nonsubscrip16 tion services, and services exempt under section 

17 114(d)(1)(C)(iv) of such title for the period 2003 

18 through 2004, and any rates published in the Fed19 eral Register under the authority of the Small 

20 Webcaster Settlement Act of 2002 for the years 

21 2003 through 2004, shall be effective until the first 

22 applicable effective date for successor terms and 

23 rates specified in section 804(b)(2) or (3)(A) of title 

24 17, United States Code, or until such later date as 

25 the parties may agree. Any proceeding commenced 
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1 before the enactment of this Act pursuant to section 

2 114(f)(2) and chapter 8 of title 17, United States 

3 Code, to adjust or determine such rates and terms 

4 for periods following 2004 shall be terminated upon 

5 the enactment of this Act and shall be null and void. 

6 (c) EXISTING APPROPRIATIONS.—Any funds made 

7 available in an appropriations Act before the date of the 

8 enactment of this Act to carry out chapter 8 of title 17, 

9 United States Code, shall be available to the extent nec10 essary to carry out this section.

Passed the House of Representatives March 3, 

2004. 

Attest: JEFF TRANDAHL, 

Clerk.