IB 

Union Calendar No. 234

108TH CONGRESS 

2D SESSION H. R. 1417

[Report No. 108–408] 

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

royalty panels with a Copyright Royalty Judge, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 25, 2003

Mr. SMITH of Texas (for himself, Mr. BERMAN, and Mr. CONYERS) introduced 

the following bill; which was referred to the Committee on the Judiciary 

JANUARY 30, 2004

Reported with amendments, committed to the Committee of the Whole House 

on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on March 25, 2003] 

A BILL

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

arbitration royalty panels with a Copyright Royalty 

Judge, 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 2003’’. 

4 SEC. 2. REFERENCE. 

5 Except as otherwise expressly provided, whenever in 

6 this Act an amendment or repeal is expressed in terms of 

7 an amendment to, or repeal of, a section or other provision, 

8 the reference shall be considered to be made to a section or 

9 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 shall 

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

19 appoint one of the three as the Chief Copyright Royalty 

20 Judge. In making such appointments, the Librarian shall 

21 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 shall 

3 be as follows: 

4 ‘‘(1) To make determinations and adjustments of 

5 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 copy14 right user a fair income under existing economic 

15 conditions. 

16 ‘‘(C) To reflect the relative roles of the copy17 right owner and the copyright user in the prod18 uct made available to the public with respect to 

19 relative creative contribution, technological con20 tribution, capital investment, cost, risk, and con21 tribution to the opening of new markets for cre22 ative expression and media for their communica23 tion. 
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1 ‘‘(D) To minimize any disruptive impact 

2 on the structure of the industries involved and on 

3 generally prevailing industry practices. 

4 ‘‘(2) To make determinations concerning the ad5 justment of the copyright royalty rates under section 

6 111 solely in accordance with the following provi7 sions: 

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 serv14 ice of providing secondary transmissions to 

15 maintain the real constant dollar level of 

16 the royalty fee per subscriber which existed 

17 as of the date of October 19, 1976, 

18 except that—

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

20 system subscribers for the basic service of 

21 providing secondary transmissions are 

22 changed so that the average rates exceed na23 tional monetary inflation, no change in the 

24 rates established by section 111(d)(1)(B) 

25 shall be permitted; and
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1 ‘‘(II) no increase in the royalty fee 

2 shall be permitted based on any reduction 

3 in the average number of distant signal 

4 equivalents per subscriber. 

5 The Copyright Royalty Judges may consider all 

6 factors relating to the maintenance of such level 

7 of payments, including, as an extenuating factor, 

8 whether the industry has been restrained by sub9 scriber rate regulating authorities from increas10 ing the rates for the basic service of providing 

11 secondary transmissions. 

12 ‘‘(B) In the event that the rules and regula13 tions of the Federal Communications Commis14 sion are amended at any time after April 8, 

15 1976, to permit the carriage by cable systems of 

16 additional television broadcast signals beyond 

17 the local service area of the primary transmitters 

18 of such signals, the royalty rates established by 

19 section 111(d)(1)(B) may be adjusted to insure 

20 that the rates for the additional distant signal 

21 equivalents resulting from such carriage are rea22 sonable in the light of the changes effected by the 

23 amendment to such rules and regulations. In de24 termining the reasonableness of rates proposed 

25 following an amendment of Federal Communica-
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1 tions Commission rules and regulations, the 

2 Copyright Royalty Judges shall consider, among 

3 other factors, the economic impact on copyright 

4 owners and users; except that no adjustment in 

5 royalty rates shall be made under this subpara6 graph with respect to any distant signal equiva7 lent or fraction thereof represented by—

8 ‘‘(i) carriage of any signal permitted 

9 under the rules and regulations of the Fed10 eral Communications Commission in effect 

11 on April 15, 1976, or the carriage of a sig12 nal of the same type (that is, independent, 

13 network, or noncommercial educational) 

14 substituted for such permitted signal; or 

15 ‘‘(ii) a television broadcast signal first 

16 carried after April 15, 1976, pursuant to an 

17 individual waiver of the rules and regula18 tions of the Federal Communications Com19 mission, as such rules and regulations were 

20 in effect on April 15, 1976. 

21 ‘‘(C) In the event of any change in the rules 

22 and regulations of the Federal Communications 

23 Commission with respect to syndicated and 

24 sports program exclusivity after April 15, 1976, 

25 the rates established by section 111(d)(1)(B) may 
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1 be adjusted to assure that such rates are reason2 able in light of the changes to such rules and reg3 ulations, but any such adjustment shall apply 

4 only to the affected television broadcast signals 

5 carried on those systems affected by the change. 

6 ‘‘(D) The gross receipts limitations estab7 lished by section 111(d)(1)(C) and (D) shall be 

8 adjusted to reflect national monetary inflation or 

9 deflation or changes in the average rates charged 

10 cable system subscribers for the basic service of 

11 providing secondary transmissions to maintain 

12 the real constant dollar value of the exemption 

13 provided by such section, and the royalty rate 

14 specified therein shall not be subject to adjust15 ment. 

16 ‘‘(3) To authorize the distribution, under sections 

17 111, 119, and 1007, of those royalty fees collected 

18 under sections 111, 119, and 1005, as the case may 

19 be, to the extent that the Copyright Royalty Judges 

20 have found that the distribution of such fees is not 

21 subject to controversy. In cases where the Copyright 

22 Royalty Judges determine that controversy exists—

23 ‘‘(A) the Copyright Royalty Judges shall de24 termine the distribution of such fees, in accord-
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1 ance with section 111, 119, or 1007, as the case 

2 may be; and 

3 ‘‘(B) the Copyright Royalty Judges shall 

4 make a partial distribution of such fees during 

5 the pendency of the proceeding under subpara6 graph (A) if all participants under section 

7 803(b)(2) in the proceeding—

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

9 ‘‘(ii) sign an agreement obligating 

10 them to return any excess amounts to the 

11 extent necessary to comply with the final 

12 determination on the distribution of the fees 

13 made under subparagraph (A); and 

14 ‘‘(iii) file the agreement with the Copy15 right Royalty Judges. 

16 The Copyright Royalty Judges and any other officer 

17 or employee acting in good faith in distributing funds 

18 under subparagraph (B) shall not be held liable for 

19 the payment of any excess fees under subparagraph 

20 (B). The Copyright Royalty Judges shall, at the time 

21 the final determination is made, calculate any such 

22 excess amounts. 

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

24 under section 111, 119, and 1007, on the basis of 
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1 timeliness or the failure to establish the basis for a 

2 claim. 

3 ‘‘(5) To accept or reject rate adjustment petitions 

4 as provided in section 804 and petitions to partici5 pate as provided in section 803(b)(1) and (2). 

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

7 recording device or a digital audio interface device 

8 under sections 1002 and 1003, as provided in section 

9 1010. 

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

11 and rates or as a basis for the distribution of statu12 tory royalty payments, an agreement concerning such 

13 matters reached among some or all of the participants 

14 in a proceeding at any time during the proceeding, 

15 except that—

16 ‘‘(i) the Copyright Royalty Judges shall 

17 provide to the other participants in the pro18 ceeding under section 803(b)(2) that would be 

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

20 determination set by the agreement an oppor21 tunity to comment on the agreement and object 

22 to its adoption as the basis for statutory terms 

23 and rates or as a basis for the distribution of 

24 statutory royalty payments, as the case may be; 

25 and
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1 ‘‘(ii) the Copyright Royalty Judges may de2 cline to adopt the agreement as the basis for stat3 utory terms and rates or as the basis for the dis4 tribution of statutory royalty payments, as the 

5 case may be, if any other participant described 

6 in subparagraph (A) objects to the agreement 

7 and the Copyright Royalty Judges find, based on 

8 the record before them, that the agreement is not 

9 likely to meet the statutory standard for setting 

10 the terms and rates, or for distributing the roy11 alty payments, as the case may be.

12 ‘‘(B) License agreements voluntarily negotiated 

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

14 115(c)(3)(E)(i), 116(c), or 118(b)(2) that do not re15 sult in statutory terms and rates shall not be subject 

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

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

18 make any necessary procedural or evidentiary rulings in 

19 any proceeding under this chapter and may, before com20 mencing a proceeding under this chapter, make any such 

21 rulings that would apply to the proceedings conducted by 

22 the Copyright Royalty Judges. The Copyright Royalty 

23 Judges may consult with the Register of Copyrights in mak24 ing any rulings under section 802(f)(1).
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1 ‘‘(d) ADMINISTRATIVE SUPPORT.—The Librarian of 

2 Congress shall provide the Copyright Royalty Judges with 

3 the necessary administrative services related to proceedings 

4 under this chapter. 

5 ‘‘(e) LOCATION IN LIBRARY OF CONGRESS.—The offices 

6 of the Copyright Royalty Judges and staff shall be in the 

7 Library of Congress. 

8 ‘‘§ 802. Copyright Royalty Judgeships; staff 

9 ‘‘(a) QUALIFICATIONS OF COPYRIGHT ROYALTY

10 JUDGES.—Each Copyright Royalty Judge shall be an attor11 ney who has at least 7 years of legal experience. The Chief 

12 Copyright Royalty Judge shall have at least 5 years of expe13 rience in adjudications, arbitrations, or court trials. Of the 

14 other two Copyright Royalty Judges, one shall have signifi15 cant knowledge of copyright law, and the other shall have 

16 significant knowledge of economics. An individual may 

17 serve as a Copyright Royalty Judge only if the individual 

18 is free of any financial conflict of interest under subsection 

19 (h). In this subsection, ‘adjudication’ has the meaning given 

20 that term in section 551 of title 5, but does not include 

21 mediation. 

22 ‘‘(b) STAFF.—The Chief Copyright Royalty Judge 

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

24 Royalty Judges in performing their functions. 
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1 ‘‘(c) TERMS.—The terms of the Copyright Royalty 

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

3 appointed, the Chief Copyright Royalty Judge shall be ap4 pointed to a term of 6 years, and of the remaining Copy5 right Royalty Judges, one shall be appointed to a term of 

6 2 years, and the other shall be appointed to a term of 4 

7 years. An individual serving as a Copyright Royalty Judge 

8 may be reappointed to subsequent terms. The term of a 

9 Copyright Royalty Judge shall begin when the term of the 

10 predecessor of that Copyright Royalty Judge ends. When the 

11 term of office of a Copyright Royalty Judge ends, the indi12 vidual serving that term may continue to serve until a suc13 cessor is selected. 

14 ‘‘(d) VACANCIES OR INCAPACITY.—

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

16 the position of Copyright Royalty Judge, the Librar17 ian of Congress shall act expeditiously to fill the va18 cancy, and may appoint an interim Copyright Roy19 alty Judge to serve until another Copyright Royalty 

20 Judge is appointed under this section. An individual 

21 appointed to fill the vacancy occurring before the ex22 piration of the term for which the predecessor of that 

23 individual was appointed shall be appointed for the 

24 remainder of that term. 
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1 ‘‘(2) INCAPACITY.—In the case in which a Copy2 right Royalty Judge is temporarily unable to perform 

3 his or her duties, the Librarian of Congress may ap4 point an interim Copyright Royalty Judge to perform 

5 such duties during the period of such incapacity. 

6 ‘‘(e) COMPENSATION.—

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

8 Judge shall receive compensation at the rate of basic 

9 pay payable for level AL–1 for administrative law 

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

11 of the other two Copyright Royalty Judges shall re12 ceive compensation at the rate of basic pay payable 

13 for level AL–2 for administrative law judges pursuant 

14 to such section. The compensation of the Copyright 

15 Royalty Judges shall not be subject to any regulations 

16 adopted by the Office of Personnel Management pur17 suant to its authority under section 5376(b)(1) of title 

18 5. 

19 ‘‘(2) STAFF MEMBERS.—Of the staff members ap20 pointed under subsection (b)—

21 ‘‘(A) the rate of pay of one staff member 

22 shall be not more than the basic rate of pay pay23 able for GS–15 of the General Schedule; 

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

25 shall be not less than the basic rate of pay pay-
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1 able for GS–13 of the General Schedule and not 

2 more than the basic rate of pay payable for GS–

3 14 of such Schedule; and 

4 ‘‘(C) the rate of pay for the third staff mem5 ber shall be not less than the basic rate of pay 

6 payable for GS–8 of the General Schedule and 

7 not more than the basic rate of pay payable for 

8 GS–11 of such Schedule. 

9 ‘‘(f) INDEPENDENCE OF COPYRIGHT ROYALTY

10 JUDGE.—

11 ‘‘(1) IN MAKING DETERMINATIONS.—

12 ‘‘(A) IN GENERAL.—Subject to subpara13 graph (B), the Copyright Royalty Judges shall 

14 have full independence in making determinations 

15 concerning adjustments and determinations of 

16 copyright royalty rates and terms, the distribu17 tion of copyright royalties, the acceptance or re18 jection of royalty claims, rate adjustment peti19 tions, and petitions to participate, and in 

20 issuing other rulings under this title, except that 

21 the Copyright Royalty Judges may consult with 

22 the Register of Copyrights on any matter other 

23 than a question of fact. Any such consultations 

24 between the Copyright Royalty Judges and the
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1 Register of Copyright on any question of law 

2 shall be in writing or on the record. 

3 ‘‘(B) NOVEL QUESTIONS.—(i) Notwith4 standing the provisions of subparagraph (A), in 

5 any case in which the Copyright Royalty Judges 

6 in a proceeding under this title are presented 

7 with a novel question of law concerning an in8 terpretation of those provisions of this title that 

9 are the subject of the proceeding, the Copyright 

10 Royalty Judges shall request the Register of 

11 Copyrights, in writing, to submit a written 

12 opinion on the resolution of such novel question. 

13 The Register shall submit and make public that 

14 opinion within such time period as the Copy15 right Royalty Judges may prescribe. Any con16 sultations under this subparagraph between the 

17 Copyright Royalty Judges and the Register of 

18 Copyrights shall be in writing or on the record. 

19 The opinion of the Register shall not be binding 

20 on the Copyright Royalty Judges, but the Copy21 right Royalty Judges shall take the opinion of 

22 the Register into account in making the judges’ 

23 determination on the question concerned. 

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

25 is a question of law that has not been determined 
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1 in prior decisions, determinations, and rulings 

2 described in section 803(a). 

3 ‘‘(2) PERFORMANCE APPRAISALS.—

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

5 other provision of law or any regulation of the 

6 Library of Congress, and subject to subpara7 graph (B), the Copyright Royalty Judges shall 

8 not receive performance appraisals. 

9 ‘‘(B) RELATING TO SANCTION OR RE10 MOVAL.—To the extent that the Librarian of 

11 Congress adopts regulations under subsection (h) 

12 relating to the sanction or removal of a Copy13 right Royalty Judge and such regulations re14 quire documentation to establish the cause of 

15 such sanction or removal, the Copyright Royalty 

16 Judge may receive an appraisal related specifi17 cally to the cause of the sanction or removal. 

18 ‘‘(g) INCONSISTENT DUTIES BARRED.—No Copyright 

19 Royalty Judge may undertake duties inconsistent with his 

20 or her duties and responsibilities as Copyright Royalty 

21 Judge. 

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

23 Congress shall adopt regulations regarding the standards 

24 of conduct, including financial conflict of interest and re25 strictions against ex parte communications, which shall 
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1 govern the Copyright Royalty Judges and the proceedings 

2 under this chapter. 

3 ‘‘(i) REMOVAL OR SANCTION.—The Librarian of Con4 gress may sanction or remove a Copyright Royalty Judge 

5 for violation of the standards of conduct adopted under sub6 section (h), misconduct, neglect of duty, or any disquali7 fying physical or mental disability. Any such sanction or 

8 removal may be made only after notice and opportunity 

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

10 the Copyright Royalty Judge during the pendency of such 

11 hearing. The Librarian shall appoint an interim Copyright 

12 Royalty Judge during the period of any such suspension. 

13 ‘‘§ 803. Proceedings of Copyright Royalty Judges 

14 ‘‘(a) PROCEEDINGS.—

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

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

17 the extent not inconsistent with this title, in accord18 ance with subchapter II of chapter 5 of title 5, in car19 rying out the purposes set forth in section 801. The 

20 Copyright Royalty Judges shall act in accordance 

21 with regulations issued by the Copyright Royalty 

22 Judges and on the basis of a fully documented written 

23 record, prior decisions of the Copyright Royalty Tri24 bunal, prior copyright arbitration royalty panel de25 terminations, rulings by the Librarian of Congress be-
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1 fore the effective date of the Copyright Royalty and 

2 Distribution Reform Act of 2003, prior determina3 tions of Copyright Royalty Judges under this chapter, 

4 and decisions of the court in appeals under this chap5 ter before, on, or after such effective date. Any partici6 pant in a proceeding under subsection (b)(2) may 

7 submit relevant information and proposals to the 

8 Copyright Royalty Judges. 

9 ‘‘(2) JUDGES ACTING AS PANEL AND INDIVID10 UALLY.—The Copyright Royalty Judges shall preside 

11 over hearings in proceedings under this chapter en 

12 banc. The Chief Copyright Royalty Judge may des13 ignate a Copyright Royalty Judge to preside individ14 ually over such collateral and administrative pro15 ceedings, and over such proceedings under paragraphs 

16 (1) through (5) of subsection (b), as the Chief Judge 

17 considers appropriate. 

18 ‘‘(3) DETERMINATIONS.—Final determinations 

19 of the Copyright Royalty Judges in proceedings under 

20 this chapter shall be made by majority vote. A Copy21 right Royalty Judge dissenting from the majority on 

22 any determination under this chapter may issue his 

23 or her dissenting opinion, which shall be included 

24 with the determination. 

25 ‘‘(b) PROCEDURES.—
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1 ‘‘(1) INITIATION.—

2 ‘‘(A) CALL FOR PETITIONS TO PARTICI3 PATE.—(i) Promptly upon the filing of a peti4 tion for a rate adjustment or determination 

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

6 than January 5 of a year specified in section 

7 804 for the commencement of a proceeding if a 

8 petition has not been filed by that date, the 

9 Copyright Royalty Judges shall cause to be pub10 lished in the Federal Register notice of com11 mencement of proceedings under this chapter 

12 calling for the filing of petitions to participate 

13 in a proceeding under this chapter for the pur14 pose of making the relevant determination under 

15 section 111, 112, 114, 115, 116, 118, 119, 1004 

16 or 1007, as the case may be. 

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

18 by no later than 30 days after publication of no19 tice of commencement of a proceeding, under 

20 clause (i), except that the Copyright Royalty 

21 Judges may, for substantial good cause shown 

22 and if there is no prejudice to the participants 

23 that have already filed petitions, accept late peti24 tions to participate at any time up to the date 

25 that is 90 days before the date on which partici-
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1 pants in the proceeding are to file their written 

2 direct statements. 

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

4 petition to participate in a proceeding shall de5 scribe the petitioner’s interest in the subject mat6 ter of the proceeding. Parties with similar inter7 ests may file a single petition to participate. 

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

9 paragraph (4), a person may participate in a pro10 ceeding under this chapter, including through the sub11 mission of briefs or other information, only if—

12 ‘‘(A) that person has filed a petition to par13 ticipate in accordance with paragraph (1) (ei14 ther individually or as a group under paragraph 

15 (1)(B)), together with a filing fee of $150; 

16 ‘‘(B) the Copyright Royalty Judges have not 

17 determined that the petition to participate is 

18 facially invalid; and 

19 ‘‘(C) the Copyright Royalty Judges have not 

20 determined, sua sponte or on the motion of an21 other participant in the proceeding, that the per22 son lacks a significant interest in the proceeding. 

23 ‘‘(3) VOLUNTARY NEGOTIATION PERIOD.—

24 ‘‘(A) IN GENERAL.—Promptly after the date 

25 for filing of petitions to participate in a pro-
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1 ceeding, the Copyright Royalty Judges shall 

2 make available to all participants in the pro3 ceeding a list of such participants and shall ini4 tiate a voluntary negotiation period among the 

5 participants. 

6 ‘‘(B) LENGTH OF PROCEEDINGS.—The vol7 untary negotiation period initiated under sub8 paragraph (A) shall be 3 months. 

9 ‘‘(C) DETERMINATION OF SUBSEQUENT

10 PROCEEDINGS.—At the close of the voluntary ne11 gotiation proceedings, the Copyright Royalty 

12 Judges shall, if further proceedings under this 

13 chapter are necessary, determine whether and to 

14 what extent paragraphs (4) and (5) will apply 

15 to the parties. 

16 ‘‘(4) SMALL CLAIMS PROCEDURE IN DISTRIBU17 TION PROCEEDINGS.—

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

19 under this chapter to determine the distribution 

20 of royalties, a participant in the proceeding as21 serts that the contested amount of the claim is 

22 $10,000 or less, the Copyright Royalty Judges 

23 shall decide the controversy on the basis of the 

24 filing in writing of the initial claim, the initial 

25 response by any opposing participant, and one 
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1 additional response by each such party. The par2 ticipant asserting the claim shall not be required 

3 to pay the filing fee under paragraph (2). 

4 ‘‘(B) BAD FAITH INFLATION OF CLAIM.—If 

5 the Copyright Royalty Judges determine that a 

6 participant asserts in bad faith an amount in 

7 controversy in excess of $10,000 for the purpose 

8 of avoiding a determination under the procedure 

9 set forth in subparagraph (A), the Copyright 

10 Royalty Judges shall impose a fine on that par11 ticipant in an amount not to exceed the dif12 ference between the actual amount distributed 

13 and the amount asserted by the participant. 

14 ‘‘(5) PAPER PROCEEDINGS IN RATEMAKING PRO15 CEEDINGS.—The Copyright Royalty Judges in pro16 ceedings under this chapter to determine royalty rates 

17 may decide, sua sponte or upon motion of a partici18 pant, to determine issues on the basis of initial filings 

19 in writing, initial responses by any opposing partici20 pant, and one additional response by each such par21 ticipant. Prior to making such decision to proceed on 

22 such a paper record only, the Copyright Royalty 

23 Judges shall offer to all parties to the proceeding the 

24 opportunity to comment on the decision. The proce25 dure under this paragraph—
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1 ‘‘(A) shall be applied in cases in which 

2 there is no genuine issue of material fact, there 

3 is no need for evidentiary hearings, and all par4 ticipants in the proceeding agree in writing to 

5 the procedure; and 

6 ‘‘(B) may be applied under such other cir7 cumstances as the Copyright Royalty Judges 

8 consider appropriate. 

9 ‘‘(6) REGULATIONS.—

10 ‘‘(A) IN GENERAL.—The Copyright Royalty 

11 Judges may issue regulations to carry out their 

12 functions under this title. Not later than 120 

13 days after Copyright Royalty Judges or interim 

14 Copyright Royalty Judges, as the case may be, 

15 are first appointed after the enactment of the 

16 Copyright Royalty and Distribution Reform Act 

17 of 2003, such judges shall issue regulations to 

18 govern proceedings under this chapter. 

19 ‘‘(B) INTERIM REGULATIONS.—Until regu20 lations are adopted under subparagraph (A), the 

21 Copyright Royalty Judges shall apply the regu22 lations in effect under this chapter on the day 

23 before the effective date of the Copyright Royalty 

24 and Distribution Reform Act of 2003, to the ex25 tent such regulations are not inconsistent with
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1 this chapter, except that functions carried out 

2 under such regulations by the Librarian of Con3 gress, the Register of Copyrights, or copyright ar4 bitration royalty panels that, as of such date of 

5 enactment, are to be carried out by the Copy6 right Royalty Judges under this chapter, shall 

7 be carried out by the Copyright Royalty Judges 

8 under such regulations. 

9 ‘‘(C) REQUIREMENTS.—Regulations issued 

10 under subparagraph (A) shall include the fol11 lowing: 

12 ‘‘(i) The written direct statements of 

13 all participants in a proceeding under 

14 paragraph (2) shall be filed by a date speci15 fied by the Copyright Royalty Judges, 

16 which may be no earlier than four months, 

17 and no later than five months, after the end 

18 of the voluntary negotiation period under 

19 paragraph (3). Notwithstanding the pre20 ceding sentence, a participant in a pro21 ceeding may, within 15 days after the end 

22 of the discovery period specified in clause 

23 (iii), file an amended written direct state24 ment based on new information received 

25 during the discovery process. 
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1 ‘‘(ii)(I) Following the submission to 

2 the Copyright Royalty Judges of written di3 rect statements by the participants in a 

4 proceeding under paragraph (2), the judges 

5 shall meet with the participants for the pur6 pose of setting a schedule for conducting 

7 and completing discovery. Such schedule 

8 shall be determined by the Copyright Roy9 alty Judges. 

10 ‘‘(II) In this chapter, the term ‘written 

11 direct statements’ means witness statements, 

12 testimony, and exhibits to be presented in 

13 the proceedings, and such other information 

14 that is necessary to establish terms and 

15 rates, or the distribution of royalty pay16 ments, as the case may be, as set forth in 

17 regulations issued by the Copyright Royalty 

18 Judges.

19 ‘‘(iii) Hearsay may be admitted in 

20 proceedings under this chapter to the extent 

21 deemed appropriate by the Copyright Roy22 alty Judges. 

23 ‘‘(iv) Discovery in such proceedings 

24 shall be permitted for a period of 60 days, 

25 except for discovery ordered by the Copy-
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1 right Royalty Judges in connection with the 

2 resolution of motions, orders and disputes 

3 pending at the end of such period.

4 ‘‘(v) Any participant under paragraph 

5 (2) in a proceeding under this chapter to 

6 determine royalty rates may, upon written 

7 notice, seek discovery of information and 

8 materials relevant and material to the pro9 ceeding. Any objection to any such discovery 

10 request shall be resolved by a motion or re11 quest to compel discovery made to the Copy12 right Royalty Judges. Each motion or re13 quest to compel discovery shall be deter14 mined by the Copyright Royalty Judges, or 

15 by a Copyright Royalty Judge when per16 mitted under subsection (a)(2), who may 

17 approve the request only if the evidence that 

18 would be produced is relevant and material. 

19 A Copyright Royalty Judge may refuse a 

20 request to compel discovery of evidence that 

21 has been found to be relevant and material, 

22 only upon good cause shown. For purposes 

23 of the preceding sentence, the basis for ‘good 

24 cause’ may only be that—
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1 ‘‘(I) the discovery sought is unrea2 sonably cumulative or duplicative, or 

3 is obtainable from another source that 

4 is more convenient, less burdensome, or 

5 less expensive; 

6 ‘‘(II) the participant seeking dis7 covery has had ample opportunity by 

8 discovery in the action to obtain the 

9 information sought; or 

10 ‘‘(III) the burden or expense of the 

11 proposed discovery outweighs its likely 

12 benefit, taking into account the needs 

13 and resources of the participants, the 

14 importance of the issues at stake, and 

15 the importance of the proposed dis16 covery in resolving the issues. 

17 ‘‘(vi) The rules in effect on the day be18 fore the effective date of the Copyright Roy19 alty and Distribution Reform Act of 2003, 

20 relating to discovery in proceedings under 

21 this title to determine the distribution of 

22 royalty fees, shall continue to apply to such 

23 proceedings on and after such effective date. 

24 ‘‘(vii) The Copyright Royalty Judges 

25 may issue subpoenas requiring the produc-
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1 tion of evidence or witnesses, but only if the 

2 evidence requested to be produced or that 

3 would be proffered by the witness is relevant 

4 and material. 

5 ‘‘(viii) The Copyright Royalty Judges 

6 shall order a settlement conference among 

7 the participants in the proceeding to facili8 tate the presentation of offers of settlement 

9 among the participants. The settlement con10 ference shall be held during a 21-day period 

11 following the end of the discovery period. 

12 ‘‘(c) DETERMINATION OF COPYRIGHT ROYALTY

13 JUDGES.—

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

15 shall issue their determination in a proceeding not 

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

17 day settlement conference period under subsection 

18 (b)(3)(C)(vi), but, in the case of a proceeding to deter19 mine successors to rates or terms that expire on a 

20 specified date, in no event later than 15 days before 

21 the expiration of the then current statutory rates and 

22 terms. 

23 ‘‘(2) REHEARINGS.—

24 ‘‘(A) IN GENERAL.—The Copyright Royalty 

25 Judges may, in exceptional cases, upon motion
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1 of a participant under subsection (b)(2), order 

2 a rehearing, after the determination in a pro3 ceeding is issued under paragraph (1), on such 

4 matters as the Copyright Royalty Judges deter5 mine to be appropriate. 

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

7 motion for a rehearing under subparagraph (A) 

8 may only be filed within 15 days after the date 

9 on which the Copyright Royalty Judges deliver 

10 their initial determination concerning rates and 

11 terms to the participants in the proceeding. 

12 ‘‘(C) PARTICIPATION BY OPPOSING PARTY

13 NOT REQUIRED.—In any case in which a rehear14 ing is ordered, any opposing party shall not be 

15 required to participate in the rehearing. 

16 ‘‘(D) NO NEGATIVE INFERENCE.—No nega17 tive inference shall be drawn from lack of par18 ticipation in a rehearing. 

19 ‘‘(E) CONTINUITY OF RATES AND TERMS.—

20 (i) If the decision of the Copyright Royalty 

21 Judges on any motion for a rehearing is not ren22 dered before the expiration of the statutory rates 

23 and terms that were previously in effect, in the 

24 case of a proceeding to determine successors to 
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1 rates and terms that expire on a specified date, 

2 then—

3 ‘‘(I) the initial determination of the 

4 Copyright Royalty Judges that is the sub5 ject of the rehearing motion shall be effective 

6 as of the day following the date on which 

7 the rates and terms that were previously in 

8 effect expire; and 

9 ‘‘(II) in the case of a proceeding under 

10 section 114(f)(1)(C) or 114(f)(2)(C), royalty 

11 rates and terms shall, for purposes of sec12 tion 114(f)(4)(B), be deemed to have been 

13 set at those rates and terms contained in the 

14 initial determination of the Copyright Roy15 alty Judges that is the subject of the rehear16 ing motion, as of the date of that deter17 mination. 

18 ‘‘(ii) The pendency of a motion for a re19 hearing under this paragraph shall not relieve 

20 persons obligated to make royalty payments who 

21 would be affected by the determination on that 

22 motion from providing the statements of account 

23 and any reports of use, to the extent required, 

24 and paying the royalties required under the rel25 evant determination or regulations. 
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1 ‘‘(iii) Notwithstanding clause (ii), whenever 

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

3 person other than the Copyright Office, the entity 

4 designated by the Copyright Royalty Judges to 

5 which such royalties are paid by the copyright 

6 user (and any successor thereto) shall, within 60 

7 days after the motion for rehearing is resolved 

8 or, if the motion is granted, within 60 days after 

9 the rehearing is concluded, return any excess 

10 amounts previously paid to the extent necessary 

11 to comply with the final determination of roy12 alty rates by the Copyright Royalty Judges. 

13 ‘‘(3) CONTENTS OF DETERMINATION.—A deter14 mination of the Copyright Royalty Judges shall be 

15 accompanied by the written record, and shall set forth 

16 the facts that the Copyright Royalty Judges found rel17 evant to their determination. Among other terms 

18 adopted in a determination, the Copyright Royalty 

19 Judges may specify notice and recordkeeping require20 ments of users of the copyrights at issue that apply 

21 in lieu of those that would otherwise apply under reg22 ulations. 

23 ‘‘(4) CONTINUING JURISDICTION.—The Copyright 

24 Royalty Judges may amend the determination or the 

25 regulations issued pursuant to the determination in 
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1 order to correct any technical errors in the determina2 tion or to respond to unforeseen circumstances that 

3 preclude the proper effectuation of the determination. 

4 ‘‘(5) PROTECTIVE ORDER.—The Copyright Roy5 alty Judges may issue such orders as may be appro6 priate to protect confidential information, including 

7 orders excluding confidential information from the 

8 record of the determination that is published or made 

9 available to the public, except that any terms or rates 

10 of royalty payments or distributions may not be ex11 cluded. 

12 ‘‘(6) PUBLICATION OF DETERMINATION.—The Li13 brarian of Congress shall cause the determination, 

14 and any corrections thereto, to be published in the 

15 Federal Register. The Librarian of Congress shall also 

16 publicize the determination and corrections in such 

17 other manner as the Librarian considers appropriate, 

18 including, but not limited to, publication on the 

19 Internet. The Librarian of Congress shall also make 

20 the determination, corrections, and the accompanying 

21 record available for public inspection and copying. 

22 ‘‘(d) JUDICIAL REVIEW.—

23 ‘‘(1) APPEAL.—Any determination of the Copy24 right Royalty Judges under subsection (c) may, with25 in 30 days after the publication of the determination 
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1 in the Federal Register, be appealed, to the United 

2 States Court of Appeals for the District of Columbia 

3 Circuit, by any aggrieved participant in the pro4 ceeding under subsection (b)(2) who fully participated 

5 in the proceeding and who would be bound by the de6 termination. If no appeal is brought within that 30-

7 day period, the determination of the Copyright Roy8 alty Judges shall be final, and the royalty fee or de9 termination with respect to the distribution of fees, as 

10 the case may be, shall take effect as set forth in para11 graph (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 de17 termination by the Copyright Royalty Judges of 

18 successor rates and terms for an ensuing statu19 tory license period shall be effective as of the day 

20 following the date of expiration of the rates and 

21 terms that were previously in effect, even if the 

22 determination of the Copyright Royalty Judges 

23 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 publica4 tion of the determination of the Copyright Roy5 alty Judges in the Federal Register, except as 

6 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.—(i) 

11 The pendency of an appeal under this subsection 

12 shall not relieve persons obligated to make roy13 alty payments under section 111, 112, 114, 115, 

14 116, 118, 119, or 1003, who would be affected by 

15 the determination on appeal, from providing the 

16 statements of account (and any report of use, to 

17 the extent required) and paying the royalties re18 quired under the relevant determination or regu19 lations. 

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

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

22 person other than the Copyright Office, the entity 

23 designated by the Copyright Royalty Judges to 

24 which such royalties are paid by the copyright 

25 user (and any successor thereto) shall, within 60 
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1 days after the final resolution of the appeal, re2 turn any excess amounts previously paid (and 

3 interest thereon, if ordered pursuant to para4 graph (3)) to the extent necessary to comply with 

5 the final determination of royalty rates on ap6 peal. 

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

8 pursuant to section 706 of title 5, modifies or vacates 

9 a determination of the Copyright Royalty Judges, the 

10 court may enter its own determination with respect 

11 to the amount or distribution of royalty fees and 

12 costs, and order the repayment of any excess fees, the 

13 payment of any underpaid fees, and the payment of 

14 interest pertaining respectively thereto, in accordance 

15 with its final judgment. The court may also vacate 

16 the determination of the Copyright Royalty Judges 

17 and remand the case to the Copyright Royalty Judges 

18 for further proceedings in accordance with subsection 

19 (a). 

20 ‘‘(e) ADMINISTRATIVE MATTERS.—

21 ‘‘(1) DEDUCTION OF COSTS OF LIBRARY OF CON22 GRESS AND COPYRIGHT OFFICE FROM FILING FEES.—

23 ‘‘(A) DEDUCTION FROM FILING FEES.—The 

24 Librarian of Congress may, to the extent not oth25 erwise provided under this title, deduct from the 
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1 filing fees collected under subsection (b) for a 

2 particular proceeding under this chapter the rea3 sonable costs incurred by the Librarian of Con4 gress, the Copyright Office, and the Copyright 

5 Royalty Judges in conducting that proceeding, 

6 other than the salaries of the Copyright Royalty 

7 Judges and the 3 staff members appointed under 

8 section 802(b).

9 ‘‘(B) AUTHORIZATION OF APPROPRIA10 TIONS.—There are authorized to be appropriated 

11 such sums as may be necessary to pay the costs 

12 of proceedings under this chapter not covered by 

13 the filing fees collected under subsection (b). All 

14 funds made available pursuant to this subpara15 graph shall remain available until expended. 

16 ‘‘(2) POSITIONS REQUIRED FOR ADMINISTRATION

17 OF COMPULSORY LICENSING.—Section 307 of the Leg18 islative Branch Appropriations Act, 1994, shall not 

19 apply to employee positions in the Library of Con20 gress that are required to be filled in order to carry 

21 out section 111, 112, 114, 115, 116, 118, or 119 or 

22 chapter 10. 

23 ‘‘§ 804. Institution of proceedings 

24 ‘‘(a) FILING OF PETITION.—With respect to pro25 ceedings referred to in paragraphs (1) and (2) of section 
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1 801(b) concerning the determination or adjustment of roy2 alty rates as provided in sections 111, 112, 114, 115, 116, 

3 118, and 1004, during the calendar years specified in the 

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

5 a copyrighted work whose royalty rates are specified by this 

6 title, or are established under this chapter before or after 

7 the enactment of the Copyright Royalty and Distribution 

8 Reform Act of 2003, may file a petition with the Copyright 

9 Royalty Judges declaring that the petitioner requests a de10 termination or adjustment of the rate. The Copyright Roy11 alty Judges shall make a determination as to whether the 

12 petitioner has such a significant interest in the royalty rate 

13 in which a determination or adjustment is requested. If the 

14 Copyright Royalty Judges determine that the petitioner has 

15 such a significant interest, the Copyright Royalty Judges 

16 shall cause notice of this determination, with the reasons 

17 therefor, to be published in the Federal Register, together 

18 with the notice of commencement of proceedings under this 

19 chapter. With respect to proceedings under paragraph (1) 

20 of section 801(b) concerning the determination or adjust21 ment of royalty rates as provided in sections 112 and 114, 

22 during the calendar years specified in the schedule set forth 

23 in subsection (b), the Copyright Royalty Judges shall cause 

24 notice of commencement of proceedings under this chapter 
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1 to be published in the Federal Register as provided in sec2 tion 803(b)(1)(A). 

3 ‘‘(b) TIMING OF PROCEEDINGS.—

4 ‘‘(1) SECTION 111 PROCEEDINGS.—(A) A petition 

5 described in subsection (a) to initiate proceedings 

6 under section 801(b)(2) concerning the adjustment of 

7 royalty rates under section 111 to which subpara8 graph (A) or (D) of section 801(b)(2) applies may be 

9 filed during the year 2004 and in each subsequent 

10 fifth calendar year. 

11 ‘‘(B) In order to initiate proceedings under sec12 tion 801(b)(2) concerning the adjustment of royalty 

13 rates under section 111 to which subparagraph (B) or 

14 (C) of section 801(b)(2) applies, within 12 months 

15 after an event described in either of those subsections, 

16 any owner or user of a copyrighted work whose roy17 alty rates are specified by section 111, or by a rate 

18 established under this chapter before or after the en19 actment of the Copyright Royalty and Distribution 

20 Reform Act of 2003, may file a petition with the 

21 Copyright Royalty Judges declaring that the peti22 tioner requests an adjustment of the rate. The Copy23 right Royalty Judges shall then proceed as set forth 

24 in subsection (a) of this section. Any change in roy25 alty rates made under this chapter pursuant to this
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1 subparagraph may be reconsidered in the year 2005, 

2 and each fifth calendar year thereafter, in accordance 

3 with the provisions in section 801(b)(3)(B) or (C), as 

4 the case may be. A petition for adjustment of rates 

5 under section 11(d)(1)(B) as a result of a change is 

6 the rules and regulations of the Federal Communica7 tions Commission shall set forth the change on which 

8 the petition is based. 

9 ‘‘(2) CERTAIN SECTION 112 PROCEEDINGS.—Pro10 ceedings under this chapter shall be commenced in the 

11 year 2007 to determine reasonable terms and rates of 

12 royalty payments for the activities described in sec13 tion 112(e)(1) relating to the limitation on exclusive 

14 rights specified by section 114(d)(1)(C)(iv), to become 

15 effective on January 1, 2009. Such proceedings shall 

16 be repeated in each subsequent fifth calendar year. 

17 ‘‘(3) SECTION 114 AND CORRESPONDING 112 PRO18 CEEDINGS.—

19 ‘‘(A) FOR ELIGIBLE NONSUBSCRIPTION

20 SERVICES AND NEW SUBSCRIPTION SERVICES.—

21 Proceedings under this chapter shall be com22 menced as soon as practicable after the effective 

23 date of the Copyright Royalty and Distribution 

24 Reform Act of 2003 to determine reasonable 

25 terms and rates of royalty payments under sec-
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1 tions 114 and 112 for the activities of eligible 

2 nonsubscription transmission services and new 

3 subscription services, to be effective for the period 

4 beginning on January 1, 2006, and ending on 

5 December 31, 2010. Such proceedings shall next 

6 be commenced in January 2009 to determine 

7 reasonable terms and rates of royalty payments, 

8 to become effective on January 1, 2011. There9 after, such proceedings shall be repeated in each 

10 subsequent fifth calendar year. 

11 ‘‘(B) FOR PREEXISTING SUBSCRIPTION AND

12 SATELLITE DIGITAL AUDIO RADIO SERVICES.—

13 Proceedings under this chapter shall be com14 menced in January 2006 to determine reasonable 

15 terms and rates of royalty payments under sec16 tions 114 and 112 for the activities of pre17 existing subscription services, to be effective dur18 ing the period beginning on January 1, 2008, 

19 and ending on December 31, 2012, and pre20 existing satellite digital audio radio services, to 

21 be effective during the period beginning on Janu22 ary 1, 2007, and ending on December 31, 2012. 

23 Such proceedings shall next be commenced in 

24 2011 to determine reasonable terms and rates of 

25 royalty payments, to become effective on Janu-
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1 ary 1, 2013. Thereafter, such proceedings shall be 

2 repeated in each subsequent fifth calendar year. 

3 ‘‘(C)(i) Notwithstanding any other provi4 sion of this chapter, this subparagraph shall gov5 ern proceedings commenced pursuant to sections 

6 114(f)(1)(C) and 114(f)(2)(C) concerning new 

7 types of services. 

8 ‘‘(ii) Not later than 30 days after a petition 

9 to determine rates and terms for a new type of 

10 service that is filed by any copyright owner of 

11 sound recordings, or such new type of service, in12 dicating that such new type of service is or is 

13 about to become operational, the Copyright Roy14 alty Judges shall issue a notice for a proceeding 

15 to determine rates and terms for such service. 

16 ‘‘(iii) The proceeding shall follow the sched17 ule set forth in such subsections (b), (c), and (d) 

18 of section 803, except that—

19 ‘‘(I) the determination shall be issued 

20 by not later than 24 months after the publi21 cation of the notice under clause (ii); and 

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

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

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

25 (C). 
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1 ‘‘(iv) The rates and terms shall remain in 

2 effect for the period set forth in section 

3 114(f)(1)(C) or 114(f)(2)(C), as the case may be. 

4 ‘‘(4) SECTION 115 PROCEEDINGS.—A petition de5 scribed in subsection (a) to initiate proceedings under 

6 section 801(b)(1) concerning the adjustment or deter7 mination of royalty rates as provided in section 115 

8 may be filed in the year 2006 and in each subsequent 

9 fifth calendar year, or at such other times as the par10 ties have agreed under section 115(c)(3)(B) and (C). 

11 ‘‘(5) SECTION 116 PROCEEDINGS.—(A) A petition 

12 described in subsection (a) to initiate proceedings 

13 under section 801(b) concerning the determination of 

14 royalty rates and terms as provided in section 116 

15 may be filed at any time within 1 year after nego16 tiated licenses authorized by section 116 are termi17 nated or expire and are not replaced by subsequent 

18 agreements. 

19 ‘‘(B) If a negotiated license authorized by section 

20 116 is terminated or expires and is not replaced by 

21 another such license agreement which provides per22 mission to use a quantity of musical works not sub23 stantially smaller than the quantity of such works 

24 performed on coin-operated phonorecord players dur25 ing the 1-year period ending March 1, 1989, the 
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1 Copyright Royalty Judges shall, upon petition filed 

2 under paragraph (1) within 1 year after such termi3 nation or expiration, commence a proceeding to 

4 promptly establish an interim royalty rate or rates 

5 for the public performance by means of a coin-oper6 ated phonorecord player of nondramatic musical 

7 works embodied in phonorecords which had been sub8 ject to the terminated or expired negotiated license 

9 agreement. Such rate or rates shall be the same as the 

10 last such rate or rates and shall remain in force until 

11 the conclusion of proceedings by the Copyright Roy12 alty Judges, in accordance with section 803, to adjust 

13 the royalty rates applicable to such works, or until 

14 superseded by a new negotiated license agreement, as 

15 provided in section 116(b).

16 ‘‘(6) SECTION 118 PROCEEDINGS.—A petition de17 scribed in subsection (a) to initiate proceedings under 

18 section 801(b)(1) concerning the determination of rea19 sonable terms and rates of royalty payments as pro20 vided in section 118 may be filed in the year 2006 

21 and in each subsequent fifth calendar year. 

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

23 described in subsection (a) to initiate proceedings 

24 under section 801(b)(1) concerning the adjustment of
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1 reasonable royalty rates under section 1004 may be 

2 filed as provided in section 1004(a)(3). 

3 ‘‘(8) PROCEEDINGS CONCERNING DISTRIBUTION

4 OF ROYALTY FEES.—With respect to proceedings 

5 under section 801(b)(3) concerning the distribution of 

6 royalty fees in certain circumstances under section 

7 111, 116, 119, or 1007, the Copyright Royalty Judges 

8 shall, upon a determination that a controversy exists 

9 concerning such distribution, cause to be published in 

10 the Federal Register notice of commencement of pro11 ceedings under this chapter. 

12 ‘‘§ 805. General rule for voluntarily negotiated agree13 ments 

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

15 ‘‘(1) are agreed to by participants to a pro16 ceeding under section 803(b)(2), 

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

18 Judges as part of a determination under this chapter, 

19 and 

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

21 otherwise apply under a determination pursuant to 

22 this chapter, 

23 shall remain in effect for such period of time as would other24 wise apply under such determination, except that the Copy25 right Royalty Judges shall adjust the rates pursuant to the 
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1 voluntary negotiations to reflect national monetary infla2 tion during the additional period the rates remain in ef3 fect.’’. 

4 (b) CONFORMING AMENDMENT.—The table of chapters 

5 for title 17, United States Code, is amended by striking the 

6 item relating to chapter 8 and inserting the following:

‘‘8. Proceedings by Copyright Royalty Judges ........................... 801’’.

7 SEC. 4. DEFINITION. 

8 Section 101 is amended by inserting after the defini9 tion of ‘‘copies’’ the following: 

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

11 Royalty Judge appointed under section 802 of this 

12 title, and includes any individual serving as an in13 terim Copyright Royalty Judge under such section.’’. 

14 SEC. 5. TECHNICAL AMENDMENTS. 

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

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

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

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

19 (2) in paragraph (4)—

20 (A) in subparagraph (A), by striking ‘‘Li21 brarian of Congress’’ each place it appears and 

22 inserting ‘‘Copyright Royalty Judges’’; 

23 (B) in subparagraph (B)—

24 (i) in the first sentence, by striking 

25 ‘‘Librarian of Congress shall, upon the rec-
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1 ommendation of the Register of Copy2 rights,’’ and inserting ‘‘Copyright Royalty 

3 Judges shall’’; 

4 (ii) in the second sentence, by striking 

5 ‘‘Librarian determines’’ and inserting 

6 ‘‘Copyright Royalty Judges determine’’; and 

7 (iii) in the third sentence—

8 (I) by striking ‘‘Librarian’’ each 

9 place it appears and inserting ‘‘Copy10 right Royalty Judges’’; and 

11 (II) by striking ‘‘convene a copy12 right arbitration royalty panel’’ and 

13 inserting ‘‘conduct a proceeding’’; and 

14 (C) in subparagraph (C), by striking ‘‘Li15 brarian of Congress’’ and inserting ‘‘Copyright 

16 Royalty Judges’’.

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

18 amended—

19 (1) in paragraph (3)—

20 (A) by amending the first sentence to read 

21 as follows: ‘‘Voluntary negotiation proceedings 

22 initiated pursuant to section 804(a) for the pur23 pose of determining reasonable terms and rates 

24 of royalty payments for the activities specified 

25 by paragraph (1) shall cover the 5-year period 
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1 beginning on January 1 of the second year fol2 lowing the year in which the proceedings are 

3 commenced, or such other period as the parties 

4 may agree.’’; and 

5 (B) in the third sentence, by striking ‘‘Li6 brarian of Congress’’ and inserting ‘‘Copyright 

7 Royalty Judges’’; 

8 (2) in paragraph (4)—

9 (A) by amending the first sentence to read 

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

11 negotiated under paragraphs (2) and (3), the 

12 Copyright Royalty Judges shall commence a pro13 ceeding pursuant to chapter 8 to determine and 

14 publish in the Federal Register a schedule of rea15 sonable rates and terms which, subject to para16 graph (5), shall be binding on all copyright own17 ers of sound recordings and transmitting organi18 zations entitled to a statutory license under this 

19 subsection during the 5-year period specified in 

20 paragraph (3), or such other period as the par21 ties may agree.’’; 

22 (B) by striking ‘‘copyright arbitration roy23 alty panel’’ each subsequent place it appears and 

24 inserting ‘‘Copyright Royalty Judges’’; 
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1 (C) in the fourth sentence, by striking ‘‘its 

2 decision’’ and inserting ‘‘their decision’’; and 

3 (D) in the last sentence, by striking ‘‘Li4 brarian of Congress’’ and inserting ‘‘Copyright 

5 Royalty Judges’’; 

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

7 the Librarian of Congress’’ and inserting ‘‘, decision 

8 by the Librarian of Congress, or determination by the 

9 Copyright Royalty Judges’’;

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

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

12 and (8), respectively; and 

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

14 striking ‘‘Librarian of Congress’’ and inserting 

15 ‘‘Copyright Royalty Judges’’. 

16 (c) SCOPE OF EXCLUSIVE RIGHTS IN SOUND RECORD17 INGS.—Section 114(f) is amended—

18 (1) in paragraph (1)—

19 (A) in subparagraph (A)—

20 (i) by amending the first sentence to 

21 read as follows: ‘‘Voluntary negotiation pro22 ceedings initiated pursuant to section 

23 804(a) for the purpose of determining rea24 sonable terms and rates of royalty payments 

25 for subscription transmissions by pre-
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1 existing subscription services and trans2 missions by preexisting satellite digital 

3 audio radio services shall cover the 5-year 

4 period beginning on January 1 of the year 

5 following the second year in which the pro6 ceedings are commenced, except where dif7 ferential transitional periods are provided 

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

9 the parties may agree.’’; and 

10 (ii) in the third sentence, by striking 

11 ‘‘Librarian of Congress’’ and inserting 

12 ‘‘Copyright Royalty Judges’’; 

13 (B) in subparagraph (B)—

14 (i) by amending the first sentence to 

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

16 agreements negotiated under subparagraph 

17 (A), the Copyright Royalty Judges shall 

18 commence a proceeding pursuant to chapter 

19 8 to determine and publish in the Federal 

20 Register a schedule of rates and terms 

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

22 binding on all copyright owners of sound 

23 recordings and entities performing sound 

24 recordings affected by this paragraph dur25 ing the 5-year period specified in subpara-
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1 graph (A), or such other date as the parties 

2 may agree.’’; and 

3 (ii) in the second sentence, by striking 

4 ‘‘copyright arbitration royalty panel’’ and 

5 inserting ‘‘Copyright Royalty Judges’’; and

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

7 as follows: 

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

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

10 filed by any copyright owners of sound recordings, 

11 any preexisting subscription services, or any pre12 existing satellite digital audio radio services indi13 cating that a new type of subscription digital audio 

14 transmission service on which sound recordings are 

15 performed is or is about to become operational, for the 

16 purpose of determining reasonable terms and rates of 

17 royalty payments with respect to such new type of 

18 transmission service for the period beginning with the 

19 inception of such new type of service and ending on 

20 the date on which the royalty rates and terms for sub21 scription digital audio transmission services most re22 cently determined under subparagraph (A) or (B) 

23 and chapter 8 expire, or such other period as the par24 ties may agree.’’; 

25 (2) in paragraph (2)—
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1 (A) in subparagraph (A)—

2 (i) by amending the first sentence to 

3 read as follows: ‘‘Voluntary negotiation pro4 ceedings initiated pursuant to section 

5 804(a) for the purpose of determining rea6 sonable terms and rates of royalty payments 

7 for public performances of sound recordings 

8 by means of eligible nonsubscription trans9 missions and transmissions by new sub10 scription services specified by subsection 

11 (d)(2) shall cover the 5-year period begin12 ning on January 1 of the second year fol13 lowing the year in which the proceedings 

14 are commenced, except where different tran15 sitional periods are provided in section 

16 804(b)(3)(A), or such other period as the 

17 parties may agree.’’; and 

18 (ii) in the third sentence, by striking 

19 ‘‘Librarian of Congress’’ and inserting 

20 ‘‘Copyright Royalty Judges’’; 

21 (B) in subparagraph (B)—

22 (i) by amending the first sentence to 

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

24 agreements negotiated under subparagraph 

25 (A), the Copyright Royalty Judges shall 
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1 commence a proceeding pursuant to chapter 

2 8 to determine and publish in the Federal 

3 Register a schedule of rates and terms 

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

5 binding on all copyright owners of sound 

6 recordings and entities performing sound 

7 recordings affected by this paragraph dur8 ing the period specified in subparagraph 

9 (A), or such other period as the parties may 

10 agree.’’; and 

11 (ii) by striking ‘‘copyright arbitration 

12 royalty panel’’ each subsequent place it ap13 pears and inserting ‘‘Copyright Royalty 

14 Judges’’; and

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

16 as follows: 

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

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

19 filed by any copyright owners of sound recordings or 

20 any eligible nonsubscription service or new subscrip21 tion service indicating that a new type of eligible 

22 nonsubscription service or new subscription service on 

23 which sound recordings are performed is or is about 

24 to become operational, for the purpose of determining 

25 reasonable terms and rates of royalty payments with
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1 respect to such new type of service for the period be2 ginning with the inception of such new type of service 

3 and ending on the date on which the royalty rates 

4 and terms for preexisting subscription digital audio 

5 transmission services or preexisting satellite digital 

6 radio audio services, as the case may be, most re7 cently determined under subparagraph (A) or (B) 

8 and chapter 8 expire, or such other period as the par9 ties may agree.’’;

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

11 the Librarian of Congress’’ and inserting ‘‘, decision 

12 by the Librarian of Congress, or determination by the 

13 Copyright Royalty Judges’’; and 

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

15 Congress’’ each place it appears and inserting ‘‘Copy16 right Royalty Judges’’.

17 (d) PHONORECORDS OF NONDRAMATIC MUSICAL

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

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

20 and inserting ‘‘(E)’’; 

21 (2) in subparagraph (B)—

22 (A) by striking ‘‘under this paragraph’’ and 

23 inserting ‘‘under this section; and 
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1 (B) by striking ‘‘subparagraphs (B) through 

2 (F)’’ and inserting ‘‘this subparagraph and sub3 paragraphs (B) through (E)’’; 

4 (3) in subparagraph (C)—

5 (A) by amending the first sentence to read 

6 as follows: ‘‘Voluntary negotiation proceedings 

7 initiated pursuant to a petition filed under sec8 tion 804(a) for the purpose of determining rea9 sonable terms and rates of royalty payments for 

10 the activities specified by this section shall cover 

11 the period beginning with the effective date of 

12 such terms and rates, but not earlier than Janu13 ary 1 of the second year following the year in 

14 which the petition is filed, and ending on the ef15 fective date of successor terms and rates, or such 

16 other period as the parties may agree.’’; and 

17 (B) in the third sentence, by striking ‘‘Li18 brarian of Congress’’ and inserting ‘‘Copyright 

19 Royalty Judges’’; 

20 (4) in subparagraph (D)—

21 (A) by amending the first sentence to read 

22 as follows: ‘‘In the absence of license agreements 

23 negotiated under subparagraphs (B) and (C), the 

24 Copyright Royalty Judges shall commence pro25 ceedings pursuant to chapter 8 to determine and 
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1 publish in the Federal Register a schedule of 

2 rates and terms which, subject to subparagraph 

3 (E), shall be binding on all copyright owners of 

4 nondramatic musical works and persons entitled 

5 to obtain a compulsory license under subsection 

6 (a)(1) during the period specified in subpara7 graph (C) or such other period as may be deter8 mined pursuant to subparagraphs (B) and (C), 

9 or such other period as the parties may agree.’’; 

10 (B) in the third sentence, by striking ‘‘copy11 right arbitration royalty panel’’ and inserting 

12 ‘‘Copyright Royalty Judges’’; and 

13 (C) in the last sentence, by striking ‘‘Li14 brarian of Congress’’ and inserting ‘‘Copyright 

15 Royalty Judges’’; 

16 (5) in subparagraph (E)—

17 (A) in clause (i)—

18 (i) in the first sentence, by striking 

19 ‘‘the Librarian of Congress’’ and inserting 

20 ‘‘a copyright arbitration royalty panel, the 

21 Librarian of Congress, or the Copyright 

22 Royalty Judges’’; and 

23 (ii) in the second sentence, by striking 

24 ‘‘(C), (D) or (F) shall be given effect’’ and 
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1 inserting ‘‘(C) or (D) shall be given effect as 

2 to digital phonorecord deliveries’’; and 

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

4 or (F)’’ each place it appears and inserting ‘‘(C) 

5 or (D)’’; and

6 (6) by striking subparagraph (F) and redesig7 nating subparagraphs (G) through (L) as subpara8 graphs (F) through (K), respectively.

9 (e) COIN-OPERATED PHONORECORD PLAYERS.—Sec10 tion 116 is amended—

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

12 (2) to read as follows: 

13 ‘‘(2) CHAPTER 8 PROCEEDING.—Parties not sub14 ject to such a negotiation may have the terms and 

15 rates and the division of fees described in paragraph 

16 (1) determined in a proceeding in accordance with 

17 the provisions of chapter 8.’’; and 

18 (2) in subsection (c)—

19 (A) in the subsection heading, by striking 

20 ‘‘COPYRIGHT ARBITRATION ROYALTY PANEL DE21 TERMINATIONS’’ and inserting ‘‘DETERMINA22 TIONS BY COPYRIGHT ROYALTY JUDGES’’; and 

23 (B) by striking ‘‘a copyright arbitration 

24 royalty panel’’ and inserting ‘‘the Copyright 

25 Royalty Judges’’. 
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1 (f) USE OF CERTAIN WORKS IN CONNECTION WITH

2 NONCOMMERCIAL BROADCASTING.—Section 118 is amend3 ed—

4 (1) in subsection (b)—

5 (A) in paragraph (1)—

6 (i) in the first sentence, by striking 

7 ‘‘Librarian of Congress’’ and inserting 

8 ‘‘Copyright Royalty Judges’’; and 

9 (ii) by striking the second and third 

10 sentences; 

11 (B) in paragraph (2), by striking ‘‘the Li12 brarian of Congress:’’ and all that follows 

13 through the end of the sentence and inserting ‘‘a 

14 copyright arbitration royalty panel, the Librar15 ian of Congress, or the Copyright Royalty Judge, 

16 if copies of such agreements are filed with the 

17 Copyright Royalty Judges within 30 days of exe18 cution in accordance with regulations that the 

19 Copyright Royalty Judges shall issue.’’; and

20 (C) in paragraph (3)—

21 (i) in the second sentence—

22 (I) by striking ‘‘copyright arbitra23 tion royalty panel’’ and inserting 

24 ‘‘Copyright Royalty Judges’’; and
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1 (II) by striking ‘‘paragraph (2).’’ 

2 and inserting ‘‘paragraph (2) or (3).’’; 

3 (ii) in the last sentence, by striking 

4 ‘‘‘Librarian of Congress’’ and inserting 

5 ‘‘Copyright Royalty Judges’’; and 

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

7 follows through the end of the first sentence 

8 and inserting the following: 

9 ‘‘(3) Voluntary negotiation proceedings initiated 

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

11 the purpose of determining a schedule of terms and 

12 rates of royalty payments by public broadcasting en13 tities to copyright owners in works specified by this 

14 subsection and the proportionate division of fees paid 

15 among various copyright owners shall cover the 5-

16 year period beginning on January 1 of the second 

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

18 The parties to each negotiation proceeding shall bear 

19 their own costs. 

20 ‘‘(4) In the absence of license agreements nego21 tiated under paragraph (2) or (3), the Copyright 

22 Royalty Judges shall, pursuant to chapter 8, conduct 

23 a proceeding to determine and publish in the Federal 

24 Register a schedule of rates and terms which, subject 

25 to paragraph (2), shall be binding on all owners of 
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1 copyright in works specified by this subsection and 

2 public broadcasting entities, regardless of whether 

3 such copyright owners have submitted proposals to the 

4 Copyright Royalty Judges.’’;

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

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

7 (f), respectively; 

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

9 matter preceding paragraph (1)—

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

11 ‘‘(b)(2) or (3)’’; 

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

13 ‘‘(b)(4)’’; and 

14 (C) by striking ‘‘a copyright arbitration 

15 royalty panel’’ and inserting ‘‘the Copyright 

16 Royalty Judges’’; 

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

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

19 and inserting ‘‘with the Copyright Royalty 

20 Judges’’; and 

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

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

23 (5) in subsection (f), as so redesignated, by strik24 ing ‘‘(d)’’ and inserting ‘‘(c)’’. 
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1 (g) SECONDARY TRANSMISSIONS BY SATELLITE CAR2 RIERS.—Section 119(b) is amended—

3 (1) in paragraph (3), by striking ‘‘Librarian of 

4 Congress’’ and inserting ‘‘Copyright Royalty Judges’’; 

5 and 

6 (2) in paragraph (4)—

7 (A) in subparagraph (A), by striking ‘‘Li8 brarian of Congress’’ each place it appears and 

9 inserting ‘‘Copyright Royalty Judges’’; and 

10 (B) by amending subparagraphs (B) and 

11 (C) to read as follows: 

12 ‘‘(B) DETERMINATION OF CONTROVERSY; 

13 DISTRIBUTIONS.—After the first day of August of 

14 each year, the Copyright Royalty Judges shall 

15 determine whether there exists a controversy con16 cerning the distribution of royalty fees. If the 

17 Copyright Royalty Judges determine that no 

18 such controversy exists, the Librarian of Con19 gress shall, after deducting reasonable adminis20 trative costs under this paragraph, distribute 

21 such fees to the copyright owners entitled to re22 ceive them, or to their designated agents. If the 

23 Copyright Royalty Judges find the existence of a 

24 controversy, the Copyright Royalty Judges shall, 

25 pursuant to chapter 8 of this title, conduct a 
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1 proceeding to determine the distribution of roy2 alty fees. 

3 ‘‘(C) WITHHOLDING OF FEES DURING CON4 TROVERSY.—During the pendency of any pro5 ceeding under this subsection, the Copyright 

6 Royalty Judges shall withhold from distribution 

7 an amount sufficient to satisfy all claims with 

8 respect to which a controversy exists, subject to 

9 any distributions made under section 

10 801(b)(3).’’.

11 (h) DIGITAL AUDIO RECORDING DEVICES.—

12 (1) ROYALTY PAYMENTS.—Section 1004(a)(3) is 

13 amended by striking ‘‘Librarian of Congress’’ each 

14 place it appears and inserting ‘‘Copyright Royalty 

15 Judges’’.

16 (2) ENTITLEMENT TO ROYALTY PAYMENTS.—Sec17 tion 1006(c) is amended by striking ‘‘Librarian of 

18 Congress shall convene a copyright arbitration roy19 alty panel which’’ and inserting ‘‘Copyright Royalty 

20 Judges’’. 

21 (3) PROCEDURES FOR DISTRIBUTING ROYALTY

22 PAYMENTS.—Section 1007 is amended—

23 (A) in subsection (a), by amending para24 graph (1) to read as follows: 
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1 ‘‘(1) FILING OF CLAIMS.—During the first 2 

2 months of each calendar year, every interested copy3 right party seeking to receive royalty payments to 

4 which such party is entitled under section 1006 shall 

5 file with the Copyright Royalty Judges a claim for 

6 payments collected during the preceding year in such 

7 form and manner as the Copyright Royalty Judges 

8 shall prescribe by regulation.’’; and 

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

10 read as follows: 

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

12 A DISPUTE.—After the period established for the filing of 

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

14 Royalty Judges shall determine whether there exists a con15 troversy concerning the distribution of royalty payments 

16 under section 1006(c). If the Copyright Royalty Judges de17 termine that no such controversy exists, the Librarian of 

18 Congress shall, within 30 days after such determination, 

19 authorize the distribution of the royalty payments as set 

20 forth in the agreements regarding the distribution of royalty 

21 payments entered into pursuant to subsection (a). The Li22 brarian of Congress shall, before such royalty payments are 

23 distributed, deduct the reasonable administrative costs in24 curred by the Librarian under this section.
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1 ‘‘(c) RESOLUTION OF DISPUTES.—If the Copyright 

2 Royalty Judges find the existence of a controversy, the 

3 Copyright Royalty Judges shall, pursuant to chapter 8 of 

4 this title, conduct a proceeding to determine the distribution 

5 of royalty payments. During the pendency of such a pro6 ceeding, the Copyright Royalty Judges shall withhold from 

7 distribution an amount sufficient to satisfy all claims with 

8 respect to which a controversy exists, but shall, to the extent 

9 feasible, authorize the distribution of any amounts that are 

10 not in controversy. The Librarian of Congress shall, before 

11 such royalty payments are distributed, deduct the reason12 able administrative costs incurred by the Librarian under 

13 this section.’’. 

14 (4) DETERMINATION OF CERTAIN DISPUTES.—

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

16 ‘‘§ 1010. Determination of certain disputes 

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

18 first distribution in the United States of a digital audio 

19 recording device or a digital audio interface device, any 

20 party manufacturing, importing, or distributing such de21 vice, and any interested copyright party may mutually 

22 agree to petition the Copyright Royalty Judges to determine 

23 whether such device is subject to section 1002, or the basis 

24 on which royalty payments for such device are to be made 

25 under section 1003. 
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1 ‘‘(b) INITIATION OF PROCEEDINGS.—The parties under 

2 subsection (a) shall file the petition with the Copyright Roy3 alty Judges requesting the commencement of a proceeding. 

4 Within 2 weeks after receiving such a petition, the Chief 

5 Copyright Royalty Judge shall cause notice to be published 

6 in the Federal Register of the initiation of the proceeding. 

7 ‘‘(c) STAY OF JUDICIAL PROCEEDINGS.—Any civil ac8 tion brought under section 1009 against a party to a pro9 ceeding under this section shall, on application of one of 

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

11 the proceeding. 

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

13 shall conduct a proceeding with respect to the matter con14 cerned, in accordance with such procedures as the Copyright 

15 Royalty Judges may adopt. The Copyright Royalty Judges 

16 shall act on the basis of a fully documented written record. 

17 Any party to the proceeding may submit relevant informa18 tion and proposals to the Copyright Royalty Judges. The 

19 parties to the proceeding shall each bear their respective 

20 costs of participation. 

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

22 Copyright Royalty Judges under subsection (d) may be ap23 pealed, by a party to the proceeding, in accordance with 

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

25 this subsection shall not stay the determination of the Copy-
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1 right Royalty Judges. If the court modifies the determina2 tion of the Copyright Royalty Judges, the court shall have 

3 jurisdiction to enter its own decision in accordance with 

4 its final judgment. The court may further vacate the deter5 mination of the Copyright Royalty Judges and remand the 

6 case for proceedings as provided in this section.’’. 

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

8 table of sections for chapter 10 is amended to read as 

9 follows:

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

10 SEC. 6. EFFECTIVE DATE AND TRANSITION PROVISIONS. 

11 (a) EFFECTIVE DATE.—This Act and the amendments 

12 made by this Act shall take effect 6 months after the date 

13 of the enactment of this Act, except that the Librarian of 

14 Congress shall appoint interim Copyright Royalty Judges 

15 under section 802(d) of title 17, United States Code, as 

16 amended by this Act, within 90 days after such date of en17 actment to carry out the functions of the Copyright Royalty 

18 Judges under title 17, United States Code, to the extent that 

19 Copyright Royalty Judges provided for in section 801(a) 

20 of title 17, United States Code, as amended by this Act, 

21 have not been appointed before the end of that 90-day pe22 riod. 

23 (b) TRANSITION PROVISIONS.—

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

25 amendments made by this Act shall not affect any 
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1 proceedings commenced, petitions filed, or voluntary 

2 agreements entered into before the enactment of this 

3 Act under the provisions of title 17, United States 

4 Code, amended by this Act, and pending on such date 

5 of enactment. Such proceedings shall continue, deter6 minations made in such proceedings, and appeals 

7 taken therefrom, as if this Act had not been enacted, 

8 and shall continue in effect until modified under title 

9 17, United States Code, as amended by this Act. Such 

10 petitions filed and voluntary agreements entered into 

11 shall remain in effect as if this Act had not been en12 acted. 

13 (2) EFFECTIVE PERIODS FOR CERTAIN RATE14 MAKING PROCEEDINGS.—Notwithstanding paragraph 

15 (1), terms and rates in effect under section 114(f)(2) 

16 or 112(e) of title 17, United States Code, for new sub17 scription services, eligible nonsubscription services, 

18 and services exempt under section 114(d)(1)(C)(iv) of 

19 such title for the period 2003 through 2004, and any 

20 rates published in the Federal Register under the au21 thority of the Small Webcaster Settlement Act of 2002 

22 for the years 2003 through 2004, shall be effective 

23 until the first applicable effective date for successor 

24 terms and rates specified in section 804(b)(2) or 

25 (3)(A) of title 17, United States Code, or until such 
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1 later date as the parties may agree. Any proceeding 

2 commenced before the enactment of this Act pursuant 

3 to section 114(f)(2) and chapter 8 of title 17, United 

4 States Code, to adjust or determine such rates and 

5 terms for periods following 2004 shall be terminated 

6 upon the enactment of this Act and shall be null and 

7 void. 

8 (c) EXISTING APPROPRIATIONS.—Any funds made 

9 available in an appropriations Act before the date of the 

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

11 United States Code, shall be available to the extent nec12 essary to carry out this section.

Amend the title so as to read: ‘‘A bill to amend title 

17, United States Code, to replace copyright arbitration 

royalty panels with Copyright Royalty Judges, and for 

other purposes.’’.
Union Calendar No. 234

108TH CONGRESS 

2D SESSION H. R. 1417

[Report No. 108–408] 

A BILL

To amend title 17, United States Code, to replace 

copyright arbitration royalty panels with a Copyright Royalty Judge, and for other purposes. 

JANUARY 30, 2004

Reported with amendments, committed to the Committee 

of the Whole House on the State of the Union, and ordered to be printed