I 

108TH CONGRESS 

1ST SESSION H. R. 1417

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 

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,

3 SECTION 1. SHORT TITLE. 

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

5 Distribution Reform Act of 2003’’. 

6 SEC. 2. REFERENCE. 

7 Except as otherwise expressly provided, whenever in 

8 this Act an amendment or repeal is expressed in terms 

9 of an amendment to, or repeal of, a section or other provi-
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1 sion, the reference shall be considered to be made to a 

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

3 SEC. 3. COPYRIGHT ROYALTY JUDGE AND STAFF. 

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

5 follows: 

6 CHAPTER 8—PROCEEDINGS BY 

7 COPYRIGHT ROYALTY JUDGE

‘‘Sec. 

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

‘‘802. Copyright Royalty Judgeship; professional staff. 

‘‘803. Proceedings of Copyright Royalty Judges. 

‘‘804. Institution and conclusion of proceedings.

8 ‘‘§ 801. Copyright Royalty Judge; appointment and 

9 functions 

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

11 shall appoint a full-time Copyright Royalty Judge. In 

12 making the appointment, the Librarian may consult with 

13 the Register of Copyrights. 

14 ‘‘(b) FUNCTIONS.—Subject to the provisions of this 

15 chapter, the functions of the Copyright Royalty Judge 

16 shall be as follows: 

17 ‘‘(1) To make determinations concerning the 

18 adjustment of reasonable copyright royalty rates as 

19 provided in sections 111, 114, 115, 119, and 1004. 

20 ‘‘(2) To make determinations as to reasonable 

21 terms and rates of royalty payments as provided in 

22 sections 112(e), 114, 115, 116, and 118. The rates 

23 applicable under sections 114(f)(1)(B), 115, and 
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1 116 shall be calculated to achieve the following ob2 jectives: 

3 ‘‘(A) To maximize the availability of cre4 ative works to the public. 

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

6 return for his or her creative work and the 

7 copyright user a fair income under existing eco8 nomic conditions. 

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

10 copyright owner and the copyright user in the 

11 product made available to the public with re12 spect to relative creative contribution, techno13 logical contribution, capital investment, cost, 

14 risk, and contribution to the opening of new 

15 markets for creative expression and media for 

16 their communication. 

17 ‘‘(D) To minimize any disruptive impact 

18 on the structure of the industries involved and 

19 on generally prevailing industry practices. 

20 ‘‘(3) To make determinations concerning the 

21 adjustment of the copyright royalty rates under sec22 tion 111 solely in accordance with the following pro23 visions: 

24 ‘‘(A) The rates established by section 

25 111(d)(1)(B) may be adjusted to reflect—
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1 ‘‘(i) national monetary inflation or de2 flation; or 

3 ‘‘(ii) changes in the average rates 

4 charged cable subscribers for the basic 

5 service of providing secondary trans6 missions to maintain the real constant dol7 lar level of the royalty fee per subscriber 

8 which existed as of the date of October 19, 

9 1976, 

10 except that—

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

12 system subscribers for the basic service of 

13 providing secondary transmissions are 

14 changed so that the average rates exceed 

15 national monetary inflation, no change in 

16 the rates established by section 

17 111(d)(1)(B) shall be permitted; and 

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

19 shall be permitted based on any reduction 

20 in the average number of distant signal 

21 equivalents per subscriber. 

22 The Copyright Royalty Judge may consider all 

23 factors relating to the maintenance of such level 

24 of payments, including, as an extenuating fac25 tor, whether the industry has been restrained 
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1 by subscriber rate regulating authorities from 

2 increasing the rates for the basic service of pro3 viding secondary transmissions. 

4 ‘‘(B) In the event that the rules and regu5 lations of the Federal Communications Com6 mission are amended at any time after April 8, 

7 1976, to permit the carriage by cable systems 

8 of additional television broadcast signals beyond 

9 the local service area of the primary transmit10 ters of such signals, the royalty rates estab11 lished by section 111(d)(1)(B) may be adjusted 

12 to insure that the rates for the additional dis13 tant signal equivalents resulting from such car14 riage are reasonable in the light of the changes 

15 effected by the amendment to such rules and

16 regulations. In determining the reasonableness 

17 of rates proposed following an amendment of 

18 Federal Communications Commission rules and 

19 regulations, the Copyright Royalty Judge shall 

20 consider, among other factors, the economic im21 pact on copyright owners and users; except that 

22 no adjustment in royalty rates shall be made 

23 under this subparagraph with respect to any 

24 distant signal equivalent or fraction thereof rep25 resented by—
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1 ‘‘(i) carriage of any signal permitted 

2 under the rules and regulations of the Fed3 eral Communications Commission in effect 

4 on April 15, 1976, or the carriage of a sig5 nal of the same type (that is, independent, 

6 network, or noncommercial educational) 

7 substituted for such permitted signal; or 

8 ‘‘(ii) a television broadcast signal first 

9 carried after April 15, 1976, pursuant to 

10 an individual waiver of the rules and regu11 lations of the Federal Communications 

12 Commission, as such rules and regulations 

13 were in effect on April 15, 1976. 

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

15 rules and regulations of the Federal Commu16 nications Commission with respect to syn17 dicated and sports program exclusivity after 

18 April 15, 1976, the rates established by section 

19 111(d)(1)(B) may be adjusted to assure that 

20 such rates are reasonable in light of the 

21 changes to such rules and regulations, but any 

22 such adjustment shall apply only to the affected 

23 television broadcast signals carried on those 

24 systems affected by the change. 
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1 ‘‘(D) The gross receipts limitations estab2 lished by section 111(d)(1)(C) and (D) shall be 

3 adjusted to reflect national monetary inflation 

4 or deflation or changes in the average rates 

5 charged cable system subscribers for the basic 

6 service of providing secondary transmissions to 

7 maintain the real constant dollar value of the 

8 exemption provided by such section, and the 

9 royalty rate specified therein shall not be sub10 ject to adjustment. 

11 ‘‘(4) To authorize the distribution of those roy12 alty fees collected under sections 111, 119, and 

13 1005 that the judge has found are not subject to 

14 controversy. 

15 ‘‘(5) To authorize the distribution of royalty 

16 fees deposited with the Register of Copyrights under 

17 sections 111, 116, 119(b), and 1003, and to deter18 mine, in cases where controversy exists, the distribu19 tion of such fees. 

20 ‘‘(6) To accept or reject royalty claims filed 

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

22 timeliness or the failure to establish the basis for a 

23 claim. 

24 ‘‘(7) To determine the status of a digital audio 

25 recording device or a digital audio interface device 
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1 under sections 1002 and 1003, as provided in sec2 tion 1010. 

3 ‘‘(c) RULINGS.—The Copyright Royalty Judge may 

4 make any necessary procedural or evidentiary rulings in 

5 any proceeding under this chapter and may, before com6 mencing a proceeding under this chapter, make any such 

7 rulings that would apply to the proceedings conducted by 

8 the Copyright Royalty Judge. The Copyright Royalty 

9 Judge may consult with the Register of Copyrights in 

10 making any rulings under this subsection. 

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

12 Congress shall provide the Copyright Royalty Judge with 

13 the necessary administrative services related to pro14 ceedings under this chapter. 

15 ‘‘§ 802. Copyright Royalty Judgeship; professional 

16 staff 

17 ‘‘(a) QUALIFICATIONS OF COPYRIGHT ROYALTY

18 JUDGE.—The Copyright Royalty Judge shall be an attor19 ney with 10 or more years of legal practice with dem20 onstrated experience in administrative hearings or court 

21 trials and demonstrated knowledge of copyright law who 

22 is free of any financial conflict of interest under subsection 

23 (h). 

24 ‘‘(b) PROFESSIONAL STAFF.—The Copyright Royalty 

25 Judge shall appoint 2 full-time staff members to assist 
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1 the Copyright Royalty Judge in performing the functions 

2 of the Copyright Royalty Judge. Each staff member shall 

3 be an individual with expertise in copyright law and in 

4 the business and economics of industries affected by the 

5 actions taken by the Copyright Royalty Judge under this 

6 chapter. 

7 ‘‘(c) TERMS.—The term of the Copyright Royalty 

8 Judge shall be 5 years. An individual serving as a Copy9 right Royalty Judge may be reappointed to subsequent 

10 terms as such judge. The term of the Copyright Royalty 

11 Judge shall begin when the term of the predecessor of that 

12 Judge ends. When the term of office of a Copyright Roy13 alty Judge ends, the individual serving that term may con14 tinue to serve until a successor is selected. 

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

16 position of Copyright Royalty Judge, the Librarian of 

17 Congress shall act expeditiously to fill the vacancy, and 

18 may appoint an interim Copyright Royalty Judge to serve 

19 until another Copyright Royalty Judge is appointed under 

20 this section. An individual appointed to fill the vacancy 

21 occurring before the expiration of the term for which the 

22 predecessor of that individual was appointed shall be ap23 pointed for the remainder of that term. 

24 ‘‘(e) COMPENSATION.—The Copyright Royalty Judge 

25 shall receive compensation at the rate of basic pay payable 
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1 for level AL–2 for administrative law judges pursuant to 

2 section 5372(b) of title 5, and the staff members ap3 pointed under subsection (b) shall each be paid at a rate 

4 of pay determined by the Librarian of Congress which 

5 shall be not less than the basic rate of pay payable for 

6 GS–14 of the General Schedule and not more than the 

7 basic rate of pay payable for GS–15 of such Schedule. The 

8 compensation of the Copyright Royalty Judge and such 

9 staff members shall not be subject to any regulations 

10 adopted by the Office of Personnel Management pursuant 

11 to its authority under section 5376(b)(1) of title 5. 

12 ‘‘(f) INDEPENDENCE OF COPYRIGHT ROYALTY

13 JUDGE.—

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

15 Judge shall have full independence in making deter16 minations concerning adjustments and determina17 tions of copyright royalty rates and terms, the dis18 tribution of copyright royalties, the acceptance or re19 jection of royalty claims and rate adjustment peti20 tions, and in issuing rulings under this title, except 

21 that the Copyright Royalty Judge may consult with 

22 the Register of Copyrights in making such deter23 minations. 

24 ‘‘(2) PERFORMANCE APPRAISALS.—
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1 ‘‘(A) IN GENERAL.—Notwithstanding any 

2 other provision of law or any regulation of the 

3 Library of Congress, the Copyright Royalty 

4 Judge shall not receive an annual performance 

5 appraisal. 

6 ‘‘(B) RELATING TO SANCTION OR RE7 MOVAL.—To the extent that the Librarian of 

8 Congress adopts regulations under subsection 

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

10 Copyright Royalty Judge and such regulations 

11 require documentation to establish the cause of 

12 such sanction or removal, the Copyright Roy13 alty Judge may receive an appraisal related 

14 specifically to the cause of the sanction or re15 moval. 

16 ‘‘(g) INCONSISTENT DUTIES BARRED.—The Copy17 right Royalty Judge may not undertake duties incon18 sistent with his or her duties and responsibilities as Copy19 right Royalty Judge. 

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

21 Congress shall adopt regulations regarding the standards 

22 of conduct, including financial conflict of interest and re23 strictions against ex parte communications, which shall 

24 govern the Copyright Royalty Judge and the proceedings 

25 under this chapter. 
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1 ‘‘(i) REMOVAL OR SANCTION.—The Librarian of Con2 gress may sanction or remove a Copyright Royalty Judge 

3 for violation of the standards of conduct adopted under 

4 subsection (h), misconduct, neglect of duty, or any dis5 qualifying physical or mental disability. Any such sanction 

6 or removal may be made only after notice and opportunity 

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

8 the Copyright Royalty Judge during the pendency of such 

9 hearing. The Librarian shall appoint an interim Copyright 

10 Royalty Judge during the period of any such suspension. 

11 ‘‘§ 803. Proceedings of Copyright Royalty Judges 

12 ‘‘(a) PROCEEDINGS.—The Copyright Royalty Judge 

13 shall conduct proceedings in accordance with subchapter 

14 II of chapter 5 of title 5, for the purpose of making deter15 minations in carrying out the purposes set forth in section 

16 801. The Copyright Royalty Judge shall act on the basis 

17 of a fully documented written record, prior decisions of 

18 the Copyright Royalty Tribunal, prior copyright arbitra19 tion panel determinations, and rulings by the Librarian 

20 of Congress before the effective date of the Copyright Roy21 alty and Distribution Reform Act of 2003. Any person 

22 participating in proceedings under this chapter may sub23 mit relevant information and proposals to the Copyright 

24 Royalty Judge in such proceedings. 

25 ‘‘(b) PROCEDURES.—
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1 ‘‘(1) PARTICIPATION IN GENERAL.—Subject to 

2 paragraph (2), a person may participate in pro3 ceedings under this chapter, including through the 

4 submission of briefs or other information, only if 

5 that person files with the Copyright Royalty Judge, 

6 in such form and manner as the Librarian of Con7 gress may by regulation prescribe, a notice of intent 

8 to participate in the proceedings, together with a fil9 ing fee of $150, before the proceedings commence. 

10 ‘‘(2) SMALL CLAIMS PROCEEDINGS.—If the 

11 amount in controversy that a party to a proceeding 

12 under this chapter to determine the distribution of 

13 royalties asserts is $500 or less, that party may elect 

14 to have the controversy decided by the Copyright 

15 Royalty Judge on the basis of the filing in writing 

16 of the initial claim, initial response by any opposing 

17 party, and one additional response by each of such 

18 party. The party making such election shall not be 

19 required to pay the filing fee under paragraph (1). 

20 ‘‘(3) REGULATIONS.—

21 ‘‘(A) IN GENERAL.—The Register of Copy22 rights shall, not later than 60 days after the 

23 date of the enactment of the Copyright Royalty 

24 and Distribution Reform Act of 2003, issue 
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1 regulations to govern proceedings under this 

2 chapter, subject to section 801(c). 

3 ‘‘(B) INTERIM REGULATIONS.—Until such 

4 regulations are adopted, the regulations in ef5 fect under this chapter on the day before such 

6 date of enactment shall continue to apply, ex7 cept that functions carried out under such regu8 lations by the Librarian of Congress, the Reg9 ister of Copyrights, or copyright arbitration 

10 royalty panels that, as of such date of enact11 ment, are to be carried out by the Copyright 

12 Royalty Judge under this chapter, shall be car13 ried out by the Copyright Royalty Judge under 

14 such regulations. 

15 ‘‘(C) REQUIREMENTS.—Regulations issued 

16 under subparagraph (A) shall include the fol17 lowing: 

18 ‘‘(i) The Federal Rules of Evidence 

19 with respect to hearsay shall apply to pro20 ceedings under this chapter. 

21 ‘‘(ii) Discovery in such proceedings 

22 shall be permitted for a period of 60 days. 

23 Final witness lists for the proceedings shall 

24 not be required until the end of the dis25 covery period. 
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1 ‘‘(iii) A defending party to a claim in 

2 a proceeding may serve upon an adverse 

3 party an offer to allow for a determination 

4 to be made against the adverse party for 

5 the claimed money or property or other 

6 specified amount up to the day on which 

7 hearings in the proceeding begin. If before 

8 the day on which hearings in the pro9 ceeding begin an offer under this clause is 

10 accepted, either party may file the offer 

11 and notice of acceptance of the offer with 

12 the Copyright Royalty Judge, who shall 

13 enter his or her determination pursuant 

14 thereto.

15 ‘‘(c) DECISION OF COPYRIGHT ROYALTY JUDGE.—

16 Not later than 6 months after the date of publication of 

17 the notice in the Federal Register initiating a proceeding 

18 under this chapter, the Copyright Royalty Judge shall 

19 issue his or her determination in the proceeding, except 

20 that the Copyright Royalty Judge may extend that 6-

21 month period to 1 year for that proceeding if the Copy22 right Royalty Judge determines such extension to be nec23 essary. The Copyright Royalty Judge’s determination shall 

24 be accompanied by the written record, and shall set forth 

25 the facts that the Copyright Royalty Judge found relevant 
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1 to his or her determination. The Librarian of Congress 

2 shall cause such determination to be published in the Fed3 eral Register. The Librarian shall also publicize the deter4 mination in such other manner as the Librarian considers 

5 appropriate, including, but not limited to, publication on 

6 the official website of the Copyright Office. The Librarian 

7 shall also make the determination and the accompanying 

8 record available for public inspection and copying. 

9 ‘‘(d) JUDICIAL REVIEW.—Any determination of the 

10 Copyright Royalty Judge under subsection (c) may, within 

11 30 days after the publication of the determination in the 

12 Federal Register, be appealed, by any aggrieved party who 

13 would be bound by the determination, to the United States 

14 Court of Appeals for the District of Columbia Circuit. If 

15 no appeal is brought within that 30-day period, the deter16 mination of the Copyright Royalty Judge is final, and the 

17 royalty fee or determination with respect to the distribu18 tion of fees, as the case may be, shall take effect as set 

19 forth in the determination of the Copyright Royalty 

20 Judge. When this title provides that the royalty rates or 

21 terms that were previously in effect are to expire on a 

22 specified date, any adjustment by the Copyright Royalty 

23 Judge of those rates or terms shall be effective as of the 

24 day following the date of expiration of the rates or terms 

25 that were previously in effect, even if the Copyright Roy-
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1 alty Judge’s determination is rendered on a later date. 

2 The pendency of an appeal under this paragraph shall not 

3 relieve persons obligated to make royalty payments under 

4 section 111, 112, 114, 115, 116, 118, 119, or 1003 who 

5 would be affected by the determination on appeal to de6 posit the statement of account and royalty fees specified 

7 in those sections. The court shall have jurisdiction to mod8 ify or vacate a determination of the Copyright Royalty 

9 Judge only if it finds, on the basis of the record before 

10 the Copyright Royalty Judge, that the Copyright Royalty 

11 Judge acted in an arbitrary or capricious manner. If the 

12 court modifies the determination of the Copyright Royalty 

13 Judge, the court shall have jurisdiction to enter its own 

14 determination with respect to the amount or distribution 

15 of royalty fees and costs, to order the repayment of any 

16 excess fees, and to order the payment of any underpaid 

17 fees, and the interest pertaining respectively thereto, in 

18 accordance with its final judgment. The court may further 

19 vacate the determination of the Copyright Royalty Judge 

20 and remand the case to the Copyright Royalty Judge for 

21 proceedings in accordance with subsection (a). 

22 ‘‘(e) ADMINISTRATIVE MATTERS.—

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

24 CONGRESS AND COPYRIGHT OFFICE FROM ROYALTY

25 FEES.—
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1 ‘‘(A) DEDUCTION FROM FILING FEES AND

2 ROYALTY FEES.—The Librarian of Congress 

3 may, to the extent not otherwise provided under 

4 this title, deduct from the filing fees collected 

5 under subsection (b) for a particular proceeding 

6 under this chapter the reasonable costs incurred 

7 by the Library of Congress, the Copyright Of8 fice, and the Copyright Royalty Judge in con9 ducting that proceeding, other than the salaries 

10 of the Copyright Royalty Judge and the two 

11 professional staff members appointed under sec12 tion 802(b). To the extent that such costs ex13 ceed the amount of such filing fees, the Librar14 ian of Congress may, after making the deduc15 tion from such filing fees, deduct the balance of 

16 such costs from not more than 1 percent of the 

17 royalty fees deposited or collected under this 

18 title that relate to that proceeding. Such deduc19 tion may be made before the fees are distrib20 uted to any copyright claimants. 

21 ‘‘(B) REMAINING COSTS.—Any costs de22 scribed in subparagraph (A) that remain after 

23 the deductions under subparagraph (A)—
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1 ‘‘(i) in ratemaking proceedings, shall 

2 be borne by the parties to the proceedings 

3 in equal proportions; and 

4 ‘‘(ii) in distribution proceedings, shall 

5 be borne by the parties to the proceedings 

6 in equal proportions. 

7 ‘‘(C) APPROPRIATIONS.—All funds made 

8 available by an appropriations Act as offsetting 

9 collections and available for deductions under 

10 this subsection shall remain available until ex11 pended. 

12 ‘‘(2) POSITIONS REQUIRED FOR ADMINISTRA13 TION OF COMPULSORY LICENSING.—Section 307 of 

14 the Legislative Branch Appropriations Act, 1994, 

15 shall not apply to employee positions in the Library 

16 of Congress that are required to be filled in order 

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

18 or 119 or chapter 10. 

19 ‘‘§ 804. Institution and conclusion of proceedings 

20 ‘‘(a) FILING OF PETITION.—With respect to pro21 ceedings under paragraphs (1) and (2) of section 801(b) 

22 concerning the determination or adjustment of royalty 

23 rates as provided in sections 111, 112, 114, 115, 116, 

24 118, and 1004, during the calendar years specified in the 

25 schedule set forth in subsection (b), any owner or user 
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1 of a copyrighted work whose royalty rates are specified 

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

3 or after the enactment of the Copyright Royalty and Dis4 tribution Reform Act of 2003, may file a petition with the 

5 Copyright Royalty Judge declaring that the petitioner re6 quests a determination or adjustment of the rate. The 

7 Copyright Royalty Judge shall make a determination as 

8 to whether the petitioner has such a significant interest 

9 in the royalty rate in which a determination or adjustment 

10 is requested. If the Copyright Royalty Judge determines 

11 that the petitioner has such a significant interest, the 

12 Copyright Royalty Judge shall cause notice of this deter13 mination, with the reasons therefor, to be published in the 

14 Federal Register, together with the notice of commence15 ment of proceedings under this chapter. 

16 ‘‘(b) TIMING OF PETITIONS.—

17 ‘‘(1) SECTION 111 PROCEEDINGS.—(A) In pro18 ceedings under section 801(b)(1) concerning the ad19 justment of royalty rates under section 111 to which 

20 subparagraph (A) or (D) of section 801(b)(3) ap21 plies, a petition described in subsection (a) may be 

22 filed during the year 2005 and in each subsequent 

23 fifth calendar year. 

24 ‘‘(B) In proceedings under section 801(b)(1) 

25 concerning the adjustment of royalty rates under 
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1 section 111 to which subparagraph (B) or (C) of 

2 section 801(b)(3) applies, within 12 months after an 

3 event described in either of those subsections, any 

4 owner or user of a copyrighted work whose royalty 

5 rates are specified by section 111, or by a rate es6 tablished under this chapter before or after the en7 actment of the Copyright Royalty and Distribution 

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

9 Copyright Royalty Judge declaring that the peti10 tioner requests an adjustment of the rate. The Copy11 right Royalty Judge shall then proceed as set forth 

12 in subsection (a) of this section. Any change in roy13 alty rates made under this chapter pursuant to this 

14 subparagraph may be reconsidered in the year 2005, 

15 and each fifth calendar year thereafter, in accord16 ance with the provisions in section 801(b)(3)(B) or 

17 (C), as the case may be. 

18 ‘‘(2) SECTION 115 PROCEEDINGS.—In pro19 ceedings under section 801(b)(1) or (2) concerning 

20 the adjustment or determination of royalty rates as 

21 provided in section 115, a petition described in para22 graph (1) may be filed in the year 2007 and in each 

23 subsequent fifth calendar year or as prescribed in 

24 section 115(c)(3)(B), (C), or (D). 
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1 ‘‘(3) SECTION 116 PROCEEDINGS.—(A) In pro2 ceedings under section 801(b)(2) concerning the de3 termination of royalty rates and terms as provided 

4 in section 116, a petition described in paragraph (1) 

5 may be filed at any time within 1 year after nego6 tiated licenses authorized by section 116 are termi7 nated or expire and are not replaced by subsequent 

8 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 Judge 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 Judge, in accordance with section 

3 803, to adjust the royalty rates applicable to such 

4 works, or until superseded by a new negotiated li5 cense agreement, as provided in section 116(b). 

6 ‘‘(4) SECTION 112 AND 114.—With respect to 

7 proceedings under section 801(b)(2) concerning the 

8 determination of reasonable terms and rates of roy9 alty payments as provided in section 112 or 114, the 

10 Librarian of Congress and the Copyright Royalty 

11 Judge shall proceed when and as provided by those 

12 sections. 

13 ‘‘(5) SECTION 118 PROCEEDINGS.—With respect 

14 to proceedings under section 801(b)(2) concerning 

15 the determination of reasonable terms and rates of 

16 royalty payments as provided in section 118, the Li17 brarian of Congress and the Copyright Royalty 

18 Judge shall proceed when and as provided by that 

19 section. 

20 ‘‘(6) PROCEEDINGS CONCERNING DISTRIBUTION

21 OF ROYALTY FEES.—With respect to proceedings 

22 under section 801(b)(5) concerning the distribution 

23 of royalty fees in certain circumstances under sec24 tion 111, 116, 119, or 1007, the Copyright Royalty 

25 Judge shall, upon a determination that a con-
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1 troversy exists concerning such distribution, cause to 

2 be published in the Federal Register notice of com3 mencement of proceedings under this chapter.’’. 

4 (b) CONFORMING AMENDMENT.—The table of chap5 ters for title 17, United States Code, is amended by strik6 ing the item relating to chapter 8 and inserting the fol7 lowing:

‘‘8. PROCEEDINGS OF COPYRIGHT ROYALTY JUDGE ................ 801’’.

8 SEC. 4. DEFINITION. 

9 Section 101 is amended by inserting after the defini10 tion of ‘‘copies’’ the following: 

11 ‘‘The ‘Copyright Royalty Judge’ is the Copy12 right Royalty Judge appointed under section 802 of 

13 this title, and includes any individual serving as an 

14 interim Copyright Royalty Judge under such sec15 tion.’’. 

16 SEC. 5. TECHNICAL AMENDMENTS. 

17 (a) CABLE RATES.—Section 111(d)(4) is amended—

18 (1) in subparagraph (B)—

19 (A) by striking ‘‘Librarian of Congress 

20 shall, upon the recommendation of the Register 

21 of Copyrights,’’ and inserting ‘‘Copyright Roy22 alty Judge shall’’; 

23 (B) by striking ‘‘Librarian’’ each subse24 quent place it appears and inserting ‘‘Copyright 

25 Royalty Judge’’; and 
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1 (C) by striking ‘‘convene a copyright arbi2 tration royalty panel’’ and inserting ‘‘conduct a 

3 proceeding’’; and 

4 (2) in subparagraph (C), by striking ‘‘Librarian 

5 of Congress’’ and inserting ‘‘Copyright Royalty 

6 Judge’’. 

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

8 amended—

9 (1) in paragraph (3), by amending the first sen10 tence to read as follows: ‘‘During the first week of 

11 January 2007, the Librarian of Congress shall cause 

12 notice to be published in the Federal Register of the 

13 initiation of voluntary negotiation proceedings for 

14 the purpose of determining reasonable terms and 

15 rates of royalty payments for the activities specified 

16 by paragraph (1) during the period beginning on

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

18 2011, or such other date as the parties may agree.’’; 

19 (2) in paragraph (4)—

20 (A) by amending the first sentence to read 

21 as follows: ‘‘In the absence of license agree22 ments negotiated under paragraph (2), during 

23 the 60-day period beginning on the date that is 

24 6 months after publication of the notice speci25 fied in paragraph (3), and upon the filing of a 
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1 petition in accordance with section 804(a), the 

2 Copyright Royalty Judge shall commence a pro3 ceeding pursuant to chapter 8 to determine and 

4 publish in the Federal Register a schedule of 

5 reasonable rates and terms which, subject to 

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

7 owners of sound recordings and transmitting 

8 organizations entitled to a statutory license 

9 under this subsection during the 5-year period 

10 specified in paragraph (3), or such other date 

11 as the parties may agree.’’; 

12 (B) by striking ‘‘copyright arbitration roy13 alty panel’’ each subsequent place it appears 

14 and inserting ‘‘Copyright Royalty Judge’’; and 

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

16 decision’’ and inserting ‘‘his or her decision’’; 

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

18 by the Librarian of Congress’’ and inserting ‘‘, deci19 sion by Librarian of Congress, or determination by 

20 the Copyright Royalty Judge’’; and 

21 (4) in paragraph (6)—

22 (A) in the first sentence, by striking ‘‘Jan23 uary 2000, and at 2-year’’ and inserting ‘‘Janu24 ary 2012, and at 5-year’’; 

25 (B) in the second sentence—
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1 (i) by striking ‘‘803(a)(1)’’ and insert2 ing ‘‘804(a)’’; and 

3 (ii) by striking ‘‘July 1, 2000, and at 

4 2-year’’ and inserting ‘‘July 1, 2012, and 

5 at 5-year’’; and 

6 (C) in the last sentence, by striking ‘‘802’’ 

7 and inserting ‘‘803’’. 

8 (c) SCOPE OF EXCLUSIVE RIGHTS IN SOUND RE9 CORDINGS.—Section 114(f) is amended—

10 (1) in paragraph (1)—

11 (A) in subparagraph (A), by amending the 

12 first sentence to read as follows: ‘‘During the 

13 first week of January 2006, the Librarian of 

14 Congress shall cause notice to be published in 

15 the Federal Register of the initiation of vol16 untary negotiation proceedings for the purpose 

17 of determining reasonable terms and rates of 

18 royalty payments for subscription transmissions 

19 by preexisting subscription services and trans20 missions by preexisting satellite digital audio 

21 radio services specified by subsection (d)(2) 

22 during the period beginning on January 1, 

23 2006, and ending on December 31, 2010, or 

24 such other date as the parties may agree.’’; 

25 (B) in subparagraph (B)—
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1 (i) by amending the first sentence to 

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

3 agreements negotiated under subparagraph 

4 (A), during the 60-day period beginning on 

5 the date that is 6 months after publication 

6 of the notice specified in subparagraph 

7 (A), and upon the filing of a petition in ac8 cordance with section 804(a), the Copy9 right Royalty Judge shall commence pro10 ceedings pursuant to chapter 8 to deter11 mine and publish in the Federal Register 

12 a schedule of rates and terms which, sub13 ject to paragraph (3), shall be binding on 

14 all copyright owners of sound recordings 

15 and entities performing sound recordings 

16 affected by this paragraph.’’; and 

17 (ii) by striking ‘‘copyright arbitration 

18 royalty panel’’ and inserting ‘‘Copyright 

19 Royalty Judge’’; and 

20 (C) in subparagraph (C)—

21 (i) in clause (i)(II), by striking 

22 ‘‘2001’’ and inserting ‘‘2011’’; 

23 (ii) in clause (ii)—

24 (I) by striking ‘‘803(a)(1)’’ and 

25 inserting ‘‘804(a)’’; and 
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1 (II) in subclause (II), by striking 

2 ‘‘2001’’ and inserting ‘‘2011’’; and 

3 (iii) in clause (iii), by striking ‘‘802’’ 

4 and inserting ‘‘803’’; 

5 (2) in paragraph (2)—

6 (A) in subparagraph (A), by amending the 

7 first sentence to read as follows: ‘‘During the 

8 first week of January 2007, the Librarian of 

9 Congress shall cause notice to be published in 

10 the Federal Register of the initiation of vol11 untary negotiation proceedings for the purpose 

12 of determining reasonable terms and rates of 

13 royalty payments for public performances of 

14 sound recordings by means of eligible non15 subscription transmissions and transmissions by 

16 new subscription services specified by sub17 section (d)(2) during the period beginning on 

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

19 2011, or such other date as the parties may 

20 agree.’’; 

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), during the 60-day period beginning on 
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1 the date that is 6 months after publication 

2 of the notice specified in subparagraph 

3 (A), and upon the filing of a petition in ac4 cordance with section 804(a), the Copy5 right Royalty Judge shall commence pro6 ceedings pursuant to chapter 8 to deter7 mine and publish in the Federal Register 

8 a schedule of rates and terms which, sub9 ject to paragraph (3), shall be binding on 

10 all copyright owners of sound recordings 

11 and entities performing sound recordings 

12 affected by this paragraph during the pe13 riod beginning on January 1, 2007, and 

14 ending on December 31, 2011, or such 

15 other date as the parties may agree.’’; and 

16 (ii) by striking ‘‘copyright arbitration 

17 royalty panel’’ each subsequent place it ap18 pears and inserting ‘‘Copyright Royalty 

19 Judge’’; 

20 (C) in subparagraph (C)—

21 (i) in clause (i)(II), by striking ‘‘Janu22 ary 2000, and at 2-year’’ and inserting 

23 ‘‘January 2012, and at 5-year’’; 

24 (ii) in clause (ii)—
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1 (I) by striking ‘‘803(a)(1)’’ and 

2 inserting ‘‘804(a)’’; and 

3 (II) in subclause (II), by striking 

4 ‘‘July 1, 2000, and at 2-year’’ and in5 serting ‘‘July 1, 2012, and at 5-year’’; 

6 and 

7 (iii) in clause (iii), by striking ‘‘802’’ 

8 and inserting ‘‘803’’; and 

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

10 by the Librarian of Congress’’ and inserting ‘‘, deci11 sion by the Librarian of Congress, or determination 

12 by the Copyright Royalty Judge’’. 

13 (d) PHONORECORDS OF NONDRAMATIC MUSICAL

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

15 (1) in subparagraph (C), by amending the first 

16 sentence to read as follows: ‘‘During the period of

17 June 30, 2006, through December 31, 2006, the Li18 brarian of Congress shall cause notice to be pub19 lished in the Federal Register of the initiation of vol20 untary negotiation proceedings for the purpose of 

21 determining reasonable terms and rates of royalty 

22 payments for the activities specified by subpara23 graph (A) during the period beginning January 1, 

24 2008, and ending on the effective date of any new 

25 terms and rates established pursuant to this sub-
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1 paragraph or subparagraph (D) or (F), or such 

2 other date (regarding digital phonorecord deliveries) 

3 as the parties may agree.’’; 

4 (2) in subparagraph (D)—

5 (A) by amending the first sentence to read 

6 as follows: ‘‘In the absence of license agree7 ments negotiated under subparagraphs (B) and 

8 (C), upon the filing of a petition in accordance 

9 with section 804(a), the Copyright Royalty 

10 Judge shall commence proceedings pursuant to 

11 chapter 8 to determine and publish in the Fed12 eral Register a schedule or rates and terms 

13 which, subject to subparagraph (E), shall be 

14 binding on all copyright owners of nondramatic 

15 musical works and persons entitled to obtain a 

16 compulsory license under subsection (a)(1) dur17 ing the period beginning January 1, 2008, and 

18 ending on the effective date of any new terms 

19 and rates established pursuant to subparagraph 

20 (C) or (F) or this subparagraph, or such other 

21 date (regarding digital phonorecord deliveries) 

22 as may be determined pursuant to subpara23 graphs (B) and (C).’’; and 
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1 (B) in the second sentence, by striking 

2 ‘‘copyright arbitration royalty panel’’ and in3 serting ‘‘Copyright Royalty Judge’’; 

4 (3) in subparagraph (E)(i), in the first sen5 tence, by striking ‘‘the Librarian of Congress’’ and 

6 inserting ‘‘a copyright arbitration royalty panel, the 

7 Librarian of Congress, or the Copyright Royalty 

8 Judge’’; and 

9 (4) in subparagraph (F), by striking ‘‘1997’’ 

10 and inserting ‘‘2007’’. 

11 (e) COIN-OPERATED PHONORECORD PLAYERS.—Sec12 tion 116 is amended—

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

14 (2) to read as follows: 

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

16 subject to such a negotiation may have the terms 

17 and rates and the division of fees described in para18 graph (1) determined in a proceeding in accordance 

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

20 (2) in subsection (c)—

21 (A) in the subsection heading, by striking 

22 ‘‘COPYRIGHT ARBITRATION ROYALTY PANEL

23 DETERMINATIONS’’ and inserting ‘‘DETER24 MINATIONS BY COPYRIGHT ROYALTY JUDGE’’; 

25 and 
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1 (B) by striking ‘‘a copyright arbitration 

2 royalty panel’’ and inserting ‘‘the Copyright 

3 Royalty Judge’’. 

4 (f) USE OF CERTAIN WORKS IN CONNECTION WITH

5 NONCOMMERCIAL BROADCASTING.—Section 118 is 

6 amended—

7 (1) in subsection (b)—

8 (A) in paragraph (1), by striking the sec9 ond and third sentences; 

10 (B) in paragraph (2), by striking ‘‘the Li11 brarian of Congress: Provided, That’’ and in12 serting ‘‘a copyright arbitration royalty panel, 

13 the Librarian of Congress, or the Copyright 

14 Royalty Judge, if’’; and 

15 (C) in paragraph (3)—

16 (i) by amending the first sentence to 

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

18 agreements negotiated under paragraph 

19 (2), the Copyright Royalty Judge shall, 

20 pursuant to chapter 8, conduct a pro21 ceeding to determine and publish in the 

22 Federal Register a schedule of rates and 

23 terms which, subject to paragraph (2), 

24 shall be binding on all owners of copyright 

25 in works specified by this subsection and 
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1 public broadcasting entities, regardless of 

2 whether such copyright owners have sub3 mitted proposals to the Librarian of Con4 gress.’’; and 

5 (ii) in the second sentence, by striking 

6 ‘‘copyright arbitration royalty panel’’ and 

7 inserting ‘‘Copyright Royalty Judge’’; 

8 (2) in subsection (c), by striking ‘‘1997’’ and 

9 inserting ‘‘2007’’; and 

10 (3) in subsection (d), by striking ‘‘a copyright 

11 arbitration royalty panel’’ and inserting ‘‘the Copy12 right Royalty Judge’’. 

13 (g) SECONDARY TRANSMISSIONS BY SATELLITE CAR14 RIERS.—Section 119(b)(4) is amended—

15 (1) in subparagraph (A), by striking ‘‘Librarian 

16 of Congress’’ the first place it appears and inserting 

17 ‘‘Copyright Royalty Judge’’; and 

18 (2) by amending subparagraphs (B) and (C) to 

19 read as follows: 

20 ‘‘(B) DETERMINATION OF CONTROVERSY; 

21 DISTRIBUTIONS.—After the first day of August 

22 of each year, the Copyright Royalty Judge shall 

23 determine whether there exists a controversy 

24 concerning the distribution of royalty fees. If 

25 the Copyright Royalty Judge determines that 
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1 no such controversy exists, the Copyright Roy2 alty Judge shall, after deducting reasonable ad3 ministrative costs under this paragraph, dis4 tribute such fees to the copyright owners enti5 tled to receive them, or to their designated 

6 agents. If the Copyright Royalty Judge finds 

7 the existence of a controversy, the Copyright 

8 Royalty Judge shall, pursuant to chapter 8 of 

9 this title, conduct a proceeding to determine the 

10 distribution of royalty fees. 

11 ‘‘(C) WITHHOLDING OF FEES DURING

12 CONTROVERSY.—During the pendency of any 

13 proceeding under this subsection, the Copyright 

14 Royalty Judge shall withhold from distribution 

15 an amount sufficient to satisfy all claims with 

16 respect to which a controversy exists, but shall

17 have discretion to proceed to distribute any 

18 amounts that are not in controversy.’’. 

19 (h) DIGITAL AUDIO RECORDING DEVICES.—

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

21 is amended by amending the third sentence to read 

22 as follows: ‘‘Not more than once each year, any in23 terested copyright party may petition the Copyright 

24 Royalty Judge to increase the royalty maximum and, 

25 if more than 20 percent of the royalty payments are 
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1 at the relevant royalty maximum, the Copyright 

2 Royalty Judge shall prospectively increase such roy3 alty maximum with the goal of having no more than 

4 10 percent of such payments at the new royalty 

5 maximum; however the amount of any such increase 

6 as a percentage of the royalty maximum shall in no 

7 event exceed the percentage increase in the Con8 sumer Price Index during the period under review.’’. 

9 (2) ENTITLEMENT TO ROYALTY PAYMENTS.—

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

11 of Congress shall convene a copyright arbitration royalty 

12 panel which’’ and inserting ‘‘Copyright Royalty Judge’’. 

13 (3) PROCEDURES FOR DISTRIBUTING ROYALTY

14 PAYMENTS.—Section 1007 is amended—

15 (A) in subsection (a), by amending para16 graph (1) to read as follows: 

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

18 months of each calendar year, every interested copy19 right party seeking to receive royalty payments to 

20 which such party is entitled under section 1006 shall 

21 file with the Copyright Royalty Judge a claim for 

22 payments collected during the preceding year in such 

23 form and manner as the Librarian of Congress shall 

24 prescribe by regulation.’’; and 
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1 (B) by amending subsections (b) and (c) to 

2 read as follows: 

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

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

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

6 Royalty Judge shall determine whether there exists a con7 troversy concerning the distribution of royalty payments 

8 under section 1006(c). If the Copyright Royalty Judge de9 termines that no such controversy exists, the copyright 

10 royalty judge shall, within 30 days after such determina11 tion, authorize the distribution of the royalty payments as 

12 set forth in the agreements regarding the distribution of 

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

14 The Librarian of Congress shall, before such royalty pay15 ments are distributed, deduct the reasonable administra16 tive costs incurred by the Librarian and the Copyright Of17 fice under this section. 

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

19 Royalty Judge finds the existence of a controversy, the 

20 Copyright Royalty Judge shall, pursuant to chapter 8 of 

21 this title, conduct a proceeding to determine the distribu22 tion of royalty payments. During the pendency of such a 

23 proceeding, the Copyright Royalty Judge shall withhold 

24 from distribution an amount sufficient to satisfy all claims 

25 with respect to which a controversy exists, but shall, to 
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1 the extent feasible, authorize the distribution of any 

2 amounts that are not in controversy. The Librarian of 

3 Congress shall, before such royalty payments are distrib4 uted, deduct the reasonable administrative costs incurred 

5 by the Librarian and the Copyright Office under this sec6 tion.’’. 

7 (4) DETERMINATION OF CERTAIN DISPUTES.—

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

9 ‘‘§ 1010. Determination of certain disputes 

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

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

12 recording device or a digital audio interface device, any 

13 party manufacturing, importing, or distributing such de14 vice, and any interested copyright party may mutually 

15 agree to petition the Copyright Royalty Judge to deter16 mine whether such device is subject to section 1002, or 

17 the basis on which royalty payments for such device are 

18 to be made under section 1003. 

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

20 under subsection (a) shall file the petition with the Copy21 right Royalty Judge requesting the commencement of a 

22 proceeding. Within 2 weeks after receiving such a petition, 

23 the Librarian of Congress shall cause notice to be pub24 lished in the Federal Register of the initiation of the pro25 ceeding. 
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1 ‘‘(c) STAY OF JUDICIAL PROCEEDINGS.—Any civil 

2 action brought under section 1009 against a party to a 

3 proceeding under this section shall, on application of one 

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

5 of the proceeding. 

6 ‘‘(d) PROCEEDING.—The Copyright Royalty Judge 

7 shall conduct a proceeding with respect to the matter con8 cerned, in accordance with such procedures as the Copy9 right Royalty Judge may adopt. The Copyright Royalty 

10 Judge shall act on the basis of a fully documented written 

11 record. Any party to the proceeding may submit relevant 

12 information and proposals to the Copyright Royalty 

13 Judge. The parties to the proceeding shall bear the entire 

14 cost thereof in such manner and proportion as the Copy15 right Royalty Judge shall direct. 

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

17 Copyright Royalty Judge under subsection (d) may be ap18 pealed, by a party to the proceeding, in accordance with 

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

20 under this subsection shall not stay the determination of 

21 the Copyright Royalty Judge. If the court modifies the de22 termination of the Copyright Royalty Judge, the court 

23 shall have jurisdiction to enter its own decision in accord24 ance with its final judgment. The court may further vacate 

25 the determination of the Copyright Royalty Judge and re-
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1 mand the case for proceedings as provided in this sec2 tion.’’. 

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

4 table of sections for chapter 10 is amended to read 

5 as follows:

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

6 SEC. 6. TRANSITION PROVISIONS. 

7 (a) IN GENERAL.—Subject to subsection (b), the 

8 amendments made by this Act shall not affect any pro9 ceedings commenced before the enactment of this Act 

10 under the provisions of title 17, United States Code, 

11 amended by this Act, and pending on such date of enact12 ment. Such proceedings shall continue, determinations 

13 made in such proceedings, and appeals taken therefrom, 

14 as if this Act had not been enacted, and shall continue 

15 in effect until modified under title 17, United States Code, 

16 as amended by this Act. 

17 (b) EFFECTIVE PERIODS FOR CERTAIN RATEMAKING

18 PROCEEDINGS.—Notwithstanding subsection (a), terms 

19 and rates determined under proceedings under section 

20 114(f)(2) or 112(e) of title 17, United States Code, com21 menced in 2002 shall be effective for an additional period 

22 of 3 years, or until such later date as the parties may 

23 agree, in lieu of the 2-year period otherwise provided for 

24 under such sections.

Æ