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[House Report 105-25]
[From the U.S. Government Publishing Office]

105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                     105-25
_______________________________________________________________________

 
                   COPYRIGHT TECHNICAL AMENDMENTS ACT

                                _______
                                

 March 17, 1997.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

_______________________________________________________________________

Mr. Coble, from the Committee on the Judiciary, submitted the following

                              R E P O R T

                        [To accompany H.R. 672]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on the Judiciary, to whom was referred the 
bill (H.R. 672) to make technical amendments to certain 
provisions of title 17, United States Code, having considered 
the same, report favorably thereon with an amendment and 
recommend that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     6
Background and Need for the Legislation..........................     6
Hearings.........................................................     7
Committee Consideration..........................................     7
Vote of the Committee............................................     7
Committee Oversight Findings.....................................     7
Committee on Government Reform and Oversight.....................     7
New Budget Authority and Tax Expenditures........................     7
Congressional Budget Office Estimate.............................     7
Constitutional Authority Statement...............................    11
Section-by-Section Analysis and Discussion.......................    11
Changes in Existing Law..........................................    18

  The amendment is as follows:
  Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. TECHNICAL CORRECTIONS TO THE SATELLITE HOME VIEWER ACT OF 
                    1994.

  The Satellite Home Viewer Act of 1994 (Public Law 103-369) is amended 
as follows:
          (1) Section 2(3)(A) is amended to read as follows:
                  ``(A) in clause (i) by striking `12 cents' and 
                inserting `17.5 cents per subscriber in the case of 
                superstations that as retransmitted by the satellite 
                carrier include any program which, if delivered by any 
                cable system in the United States, would be subject to 
                the syndicated exclusivity rules of the Federal 
                Communications Commission, and 14 cents per subscriber 
                in the case of superstations that are syndex-proof as 
                defined in section 258.2 of title 37, Code of Federal 
                Regulations'; and ''.
          (2) Section 2(4) is amended to read as follows:
          ``(4) Subsection (c) is amended--
                  ``(A) in paragraph (1)--
                          ``(i) by striking `until December 31, 1992,';
                          ``(ii) by striking `(2), (3) or (4)' and 
                        inserting `(2) or (3)'; and
                          ``(iii) by striking the second sentence;
                  ``(B) in paragraph (2)--
                          ``(i) in subparagraph (A) by striking `July 
                        1, 1991' and inserting `July 1, 1996'; and
                          ``(ii) in subparagraph (D) by striking 
                        `December 31, 1994' and inserting `December 31, 
                        1999, or in accordance with the terms of the 
                        agreement, whichever is later'; and
                  ``(C) in paragraph (3)--
                          ``(i) in subparagraph (A) by striking 
                        `December 31, 1991' and inserting `January 1, 
                        1997';
                          ``(ii) by amending subparagraph (B) to read 
                        as follows:
                  ```(B) Establishment of royalty fees.--In determining 
                royalty fees under this paragraph, the copyright 
                arbitration royalty panel appointed under chapter 8 
                shall establish fees for the retransmission of network 
                stations and superstations that most clearly represent 
                the fair market value of secondary transmissions. In 
                determining the fair market value, the panel shall base 
                its decision on economic, competitive, and programming 
                information presented by the parties, including--
                          ```(i) the competitive environment in which 
                        such programming is distributed, the cost of 
                        similar signals in similar private and 
                        compulsory license marketplaces, and any 
                        special features and conditions of the 
                        retransmission marketplace;
                          ```(ii) the economic impact of such fees on 
                        copyright owners and satellite carriers; and
                          ```(iii) the impact on the continued 
                        availability of secondary transmissions to the 
                        public.'; and
                          ``(iii) in subparagraph (C), by inserting `or 
                        July 1, 1997, whichever is later' after 
                        `section 802(g)'.''.
          (3) Section 2(5)(A) is amended to read as follows:
                  ``(A) in paragraph (5)(C) by striking `the date of 
                the enactment of the Satellite Home Viewer Act of 1988' 
                and inserting `November 16, 1988'; and''.

SEC. 2. COPYRIGHT IN RESTORED WORKS.

  Section 104A of title 17, United States Code, is amended as follows:
          (1) Subsection (d)(3)(A) is amended to read as follows:
          ``(3) Existing derivative works.--(A) In the case of a 
        derivative work that is based upon a restored work and is 
        created--
                  ``(i) before the date of the enactment of the Uruguay 
                Round Agreements Act, if the source country of the 
                restored work is an eligible country on such date, or
                  ``(ii) before the date on which the source country of 
                the restored work becomes an eligible country, if that 
                country is not an eligible country on such date of 
                enactment,
        a reliance party may continue to exploit that derivative work 
        for the duration of the restored copyright if the reliance 
        party pays to the owner of the restored copyright reasonable 
        compensation for conduct which would be subject to a remedy for 
        infringement but for the provisions of this paragraph.''.
          (2) Subsection (e)(1)(B)(ii) is amended by striking the last 
        sentence.
          (3) Subsection (h)(2) is amended to read as follows:
          ``(2) The `date of restoration' of a restored copyright is--
                  ``(A) January 1, 1996, if the source country of the 
                restored work is a nation adhering to the Berne 
                Convention or a WTO member country on such date, or
                  ``(B) the date of adherence or proclamation, in the 
                case of any other source country of the restored 
                work.''.
          (4) Subsection (h)(3) is amended to read as follows:
          ``(3) The term `eligible country' means a nation, other than 
        the United States, that--
                  ``(A) becomes a WTO member country after the date of 
                the enactment of the Uruguay Round Agreements Act;
                  ``(B) on such date of enactment is, or after such 
                date of enactment becomes, a member of the Berne 
                Convention; or
                  ``(C) after such date of enactment becomes subject to 
                a proclamation under subsection (g).
        For purposes of this section, a nation that is a member of the 
        Berne Convention on the date of the enactment of the Uruguay 
        Round Agreements Act shall be construed to become an eligible 
        country on such date of enactment.''.

SEC. 3. LICENSES FOR NONEXEMPT SUBSCRIPTION TRANSMISSIONS.

  Section 114(f) of title 17, United States Code, is amended--
          (1) in paragraph (1), by inserting ``, or, if a copyright 
        arbitration royalty panel is convened, ending 30 days after the 
        Librarian issues and publishes in the Federal Register an order 
        adopting the determination of the copyright arbitration royalty 
        panel or an order setting the terms and rates (if the Librarian 
        rejects the panel's determination)'' after ``December 31, 
        2000''; and
          (2) in paragraph (2), by striking ``and publish in the 
        Federal Register''.

SEC. 4. ROYALTY PAYABLE UNDER COMPULSORY LICENSE.

  Section 115(c)(3)(D) of title 17, United States Code, is amended by 
striking ``and publish in the Federal Register''.

SEC. 5. NEGOTIATED LICENSE FOR JUKEBOXES.

  Section 116 of title 17, United States Code, is amended--
          (1) by amending subsection (b)(2) to read as follows:
          ``(2) Arbitration.--Parties not subject to such a negotiation 
        may determine, by arbitration in accordance with the provisions 
        of chapter 8, the terms and rates and the division of fees 
        described in paragraph (1).''; and
          (2) by adding at the end the following new subsection:
  ``(d) Definitions.--As used in this section, the following terms mean 
the following:
          ``(1) A `coin-operated phonorecord player' is a machine or 
        device that--
                  ``(A) is employed solely for the performance of 
                nondramatic musical works by means of phonorecords upon 
                being activated by the insertion of coins, currency, 
                tokens, or other monetary units or their equivalent;
                  ``(B) is located in an establishment making no direct 
                or indirect charge for admission;
                  ``(C) is accompanied by a list which is comprised of 
                the titles of all the musical works available for 
                performance on it, and is affixed to the phonorecord 
                player or posted in the establishment in a prominent 
                position where it can be readily examined by the 
                public; and
                  ``(D) affords a choice of works available for 
                performance and permits the choice to be made by the 
                patrons of the establishment in which it is located.
          ``(2) An `operator' is any person who, alone or jointly with 
        others--
                  ``(A) owns a coin-operated phonorecord player;
                  ``(B) has the power to make a coin-operated 
                phonorecord player available for placement in an 
                establishment for purposes of public performance; or
                  ``(C) has the power to exercise primary control over 
                the selection of the musical works made available for 
                public performance on a coin-operated phonorecord 
                player.''.

SEC. 6. REGISTRATION AND INFRINGEMENT ACTIONS.

  Section 411(b)(1) of title 17, United States Code, is amended to read 
as follows:
          ``(1) serves notice upon the infringer, not less than 48 
        hours before such fixation, identifying the work and the 
        specific time and source of its first transmission, and 
        declaring an intention to secure copyright in the work; and''.

SEC. 7. COPYRIGHT OFFICE FEES.

  (a) Fee Increases.--Section 708(b) of title 17, United States Code, 
is amended to read as follows:
  ``(b) In calendar year 1997 and in any subsequent calendar year, the 
Register of Copyrights, by regulation, may increase the fees specified 
in subsection (a) in the following manner:
          ``(1) The Register shall conduct a study of the costs 
        incurred by the Copyright Office for the registration of 
        claims, the recordation of documents, and the provision of 
        services. The study shall also consider the timing of any 
        increase in fees and the authority to use such fees consistent 
        with the budget.
          ``(2) The Register may, on the basis of the study under 
        paragraph (1), and subject to paragraph (5), increase fees to 
        not more than that necessary to cover the reasonable costs 
        incurred by the Copyright Office for the services described in 
        paragraph (1), plus a reasonable inflation adjustment to 
        account for any estimated increase in costs.
          ``(3) Any fee established under paragraph (2) shall be 
        rounded off to the nearest dollar, or for a fee less than $12, 
        rounded off to the nearest 50 cents.
          ``(4) Fees established under this subsection shall be fair 
        and equitable and give due consideration to the objectives of 
        the copyright system.
          ``(5) If the Register determines under paragraph (2) that 
        fees should be increased, the Register shall prepare a proposed 
        fee schedule and submit the schedule with the accompanying 
        economic analysis to the Congress. The fees proposed by the 
        Register may be instituted after the end of 120 days after the 
        schedule is submitted to the Congress unless, within that 120-
        day period, a law is enacted stating in substance that the 
        Congress does not approve the schedule.''.
  (b) Deposit of Fees.--Section 708(d) of such title is amended to read 
as follows:
  ``(d)(1) Except as provided in paragraph (2), all fees received under 
this section shall be deposited by the Register of Copyrights in the 
Treasury of the United States and shall be credited to the 
appropriations for necessary expenses of the Copyright Office. Such 
fees that are collected shall remain available until expended. The 
Register may, in accordance with regulations that he or she shall 
prescribe, refund any sum paid by mistake or in excess of the fee 
required by this section.
  ``(2) In the case of fees deposited against future services, the 
Register of Copyrights shall request the Secretary of the Treasury to 
invest in interest-bearing securities in the United States Treasury any 
portion of the fees that, as determined by the Register, is not 
required to meet current deposit account demands. Funds from such 
portion of fees shall be invested in securities that permit funds to be 
available to the Copyright Office at all times if they are determined 
to be necessary to meet current deposit account demands. Such 
investments shall be in public debt securities with maturities suitable 
to the needs of the Copyright Office, as determined by the Register of 
Copyrights, and bearing interest at rates determined by the Secretary 
of the Treasury, taking into consideration current market yields on 
outstanding marketable obligations of the United States of comparable 
maturities.
  ``(3) The income on such investments shall be deposited in the 
Treasury of the United States and shall be credited to the 
appropriations for necessary expenses of the Copyright Office.''.

SEC. 8. COPYRIGHT ARBITRATION ROYALTY PANELS.

  (a) Establishment and Purpose.--Section 801 of title 17, United 
States Code, is amended--
          (1) in subsection (b)(1) by striking ``and 116'' in the first 
        sentence and inserting ``116, and 119'';
          (2) in subsection (c) by inserting after ``panel'' at the end 
        of the sentence the following:
``, including--
          ``(1) authorizing the distribution of those royalty fees 
        collected under sections 111, 119, and 1005 that the Librarian 
        has found are not subject to controversy; and
          ``(2) accepting or rejecting royalty claims filed under 
        sections 111, 119, and 1007 on the basis of timeliness or the 
        failure to establish the basis for a claim''; and
          (3) by amending subsection (d) to read as follows:
  ``(d) Support and Reimbursement of Arbitration Panels.--The Librarian 
of Congress, upon the recommendation of the Register of Copyrights, 
shall provide the copyright arbitration royalty panels with the 
necessary administrative services related to proceedings under this 
chapter, and shall reimburse the arbitrators presiding in distribution 
proceedings at such intervals and in such manner as the Librarian shall 
provide by regulation. Each such arbitrator is an independent 
contractor acting on behalf of the United States, and shall be hired 
pursuant to a signed agreement between the Library of Congress and the 
arbitrator. Payments to the arbitrators shall be considered reasonable 
costs incurred by the Library of Congress and the Copyright Office for 
purposes of section 802(h)(1).''.
  (b) Proceedings.--Section 802 of title 17, United States Code, is 
amended--
          (1) in subsection (c) by striking the last sentence; and
          (2) in subsection (h) by amending paragraph (1) to read as 
        follows:
          ``(1) Deduction of costs of library of congress and copyright 
        office from royalty fees.--The Librarian of Congress and the 
        Register of Copyrights may, to the extent not otherwise 
        provided under this title, deduct from royalty fees deposited 
        or collected under this title the reasonable costs incurred by 
        the Library of Congress and the Copyright Office under this 
        chapter. Such deduction may be made before the fees are 
        distributed to any copyright claimants. In addition, all funds 
        made available by an appropriations Act as offsetting 
        collections and available for deductions under this subsection 
        shall remain available until expended. In ratemaking 
        proceedings, the reasonable costs of the Librarian of Congress 
        and the Copyright Office shall be borne by the parties to the 
        proceedings as directed by the arbitration panels under 
        subsection (c).''.

SEC. 9. DIGITAL AUDIO RECORDING DEVICES AND MEDIA.

  Section 1007(b) of title 17, United States Code, is amended by 
striking ``Within 30 days after'' in the first sentence and inserting 
``After''.

SEC. 10. CONFORMING AMENDMENT.

  Section 4 of the Digital Performance Right in Sound Recordings Act of 
1995 (Public Law 104-39) is amended by redesignating paragraph (5) as 
paragraph (4).

SEC. 11. MISCELLANEOUS TECHNICAL AMENDMENTS.

  (a) Amendments to Title 17, United States Code.--Title 17, United 
States Code, is amended as follows:
          (1) The table of chapters at the beginning of title 17, 
        United States Code, is amended--
                  (A) in the item relating to chapter 6, by striking 
                ``Requirement'' and inserting ``Requirements'';
                  (B) in the item relating to chapter 8, by striking 
                ``Royalty Tribunal'' and inserting ``Arbitration 
                Royalty Panels'';
                  (C) in the item relating to chapter 9, by striking 
                ``semiconductor chip products'' and inserting 
                ``Semiconductor Chip Products''; and
                  (D) by inserting after the item relating to chapter 9 
                the following:

``10. Digital Audio Recording Devices and Media.............    1001''.

          (2) The item relating to section 117 in the table of sections 
        at the beginning of chapter 1 is amended to read as follows:

``117. Limitations on exclusive rights: Computer programs.''.

          (3) Section 101 is amended in the definition of to perform or 
        display a work ``publicly'' by striking ``processs'' and 
        inserting ``process''.
          (4) Section 108(e) is amended by striking ``pair'' and 
        inserting ``fair''.
          (5) Section 109(b)(2)(B) is amended by striking ``Copyright'' 
        and inserting ``Copyrights''.
          (6) Section 110 is amended--
                  (A) in paragraph (8) by striking the period at the 
                end and inserting a semicolon;
                  (B) in paragraph (9) by striking the period at the 
                end and inserting ``; and''; and
                  (C) in paragraph (10) by striking ``4 above'' and 
                inserting ``(4)''.
          (7) Section 115(c)(3)(E) is amended--
                  (A) in clause (i) by striking ``sections 106(1) and 
                (3)'' each place it appears and inserting ``paragraphs 
                (1) and (3) of section 106''; and
                  (B) in clause (ii)(II) by striking ``sections 106(1) 
                and 106(3)'' and inserting ``paragraphs (1) and (3) of 
                section 106''.
          (8) Section 119(c)(1) is amended by striking ``until unless'' 
        and inserting ``unless''.
          (9) Section 304(c) is amended in the matter preceding 
        paragraph (1) by striking ``the subsection (a)(1)(C)'' and 
        inserting ``subsection (a)(1)(C)''.
          (10) Section 405(b) is amended by striking ``condition or'' 
        and inserting ``condition for''.
          (11) Section 407(d)(2) is amended by striking ``cost of'' and 
        inserting ``cost to''.
          (12) The item relating to section 504 in the table of 
        sections at the beginning of chapter 5 is amended by striking 
        ``Damage'' and inserting ``Damages''.
          (13) Section 504(c)(2) is amended by striking ``court it'' 
        and inserting ``court in''.
          (14) Section 509(b) is amended by striking ``merchandise; and 
        baggage'' and inserting ``merchandise, and baggage''.
          (15) Section 601(a) is amended by striking ``nondramtic'' and 
        inserting ``nondramatic''.
          (16) Section 601(b)(1) is amended by striking 
        ``subsustantial'' and inserting ``substantial''.
          (17) The item relating to section 710 in the table of 
        sections at the beginning of chapter 7 is amended by striking 
        ``Reproductions'' and inserting ``Reproduction''.
          (18) The item relating to section 801 in the table of 
        sections at the beginning of chapter 8 is amended by striking 
        ``establishment'' and inserting ``Establishment''.
          (19) Section 801(b) is amended--
                  (A) by striking ``shall be--'' and inserting ``shall 
                be as follows:'';
                  (B) in paragraph (1) by striking ``to make'' and 
                inserting ``To make'';
                  (C) in paragraph (2)--
                          (i) by striking ``to make'' and inserting 
                        ``To make''; and
                          (ii) in subparagraph (D) by striking 
                        ``adjustment; and'' and inserting 
                        ``adjustment.''; and
                  (D) in paragraph (3) by striking ``to distribute'' 
                and inserting ``To distribute''.
          (20) Section 803(b) is amended in the second sentence by 
        striking ``subsection subsection'' and inserting 
        ``subsection''.
          (21) The item relating to section 903 in the table of 
        sections at the beginning of chapter 9 is amended to read as 
        follows:

``903. Ownership, transfer, licensure, and recordation.''.

          (22) Section 909(b)(1) is amended--
                  (A) by striking ``force'' and inserting ``work''; and
                  (B) by striking ``sumbol'' and inserting ``symbol''.
          (23) Section 910(a) is amended in the second sentence by 
        striking ``as used'' and inserting ``As used''.
          (24) Section 1006(b)(1) is amended by striking ``Federation 
        Television'' and inserting ``Federation of Television''.
          (25) Section 1007 is amended--
                  (A) in subsection (a)(1) by striking ``the calendar 
                year in which this chapter takes effect'' and inserting 
                ``calendar year 1992''; and
                  (B) in subsection (b) by striking ``the year in which 
                this section takes effect'' and inserting ``1992''.
  (b) Related Provisions.--
          (1) Section 1(a)(1) of the Act entitled ``An Act to amend 
        chapter 9 of title 17, United States Code, regarding protection 
        extended to semiconductor chip products of foreign entities'', 
        approved November 9, 1987 (17 U.S.C. 914 note), is amended by 
        striking ``orginating'' and inserting ``originating''.
          (2) Section 2319(b)(1) of title 18, United States Code, is 
        amended by striking ``last 10'' and inserting ``least 10''.

SEC. 12. EFFECTIVE DATES.

  (a) In General.--Except as provided in subsections (b) and (c), the 
amendments made by this Act shall take effect on the date of the 
enactment of this Act.
  (b) Satellite Home Viewer Act.--The amendments made by section 1 
shall be effective as if enacted as part of the Satellite Home Viewer 
Act of 1994 (Public Law 103-369).
  (c) Technical Amendment.--The amendment made by section 11(b)(1) 
shall be effective as if enacted on November 9, 1987.

                          Purpose and Summary

    H.R. 672 accomplishes many purposes. Some of its provisions 
will assist the U.S. Copyright Office in carrying out its 
duties, including giving the Office the ability to set 
reasonable fees for basic services, subject to congressional 
approval. Others correct or clarify the language in several 
recent amendments to the law so that Congress' original intent 
can be better achieved. None of the amendments contained in 
H.R. 672 change substantive copyright law. All of the 
amendments are non-controversial and technical or clarifying in 
nature.

                Background and Need for the Legislation

    The Copyright Act was last generally revised in 1976, in 
response to the many technological changes that had occurred 
since the enactment of the 1909 Act. Since 1976, Congress 
regularly has had to address new issues, especially those 
raised by new technologies or new methods of exploitation. Each 
session of Congress has produced at least one major amendment 
to the Copyright Act.

                                Hearings

    The Committee's Subcommittee on Courts and Intellectual 
Property held a hearing on H.R. 1861, a technical corrections 
bill containing almost all of the provisions contained in H.R. 
672 on November 9, 1995. Testimony was received from Ms. 
Marybeth Peters, Register of Copyrights, United States 
Copyright Office, The Library of Congress (Serial 32). No 
hearings were held on H.R. 672 in the 105th Congress.

                        Committee Consideration

    On March 5, 1997, the Subcommittee held a markup on H.R. 
672. The Subcommittee adopted, by voice vote, en bloc 
amendments to H.R. 672 offered by Chairman Coble, and favorably 
reported, by voice vote, a quorum being present, a single 
amendment in the nature of a substitute to H.R. 672 to the full 
Committee. On March 12, 1997, the Committee adopted, by voice 
vote, en bloc amendments offered by Mr. Coble to the amendment 
in the nature of a substitute, and favorably reported, by voice 
vote, a quorum being present, the amendment in the nature of a 
substitute, as amended, to the House.

                         Vote of the Committee

    There were no recorded votes.

                      Committee Oversight Findings

    In compliance with clause 2(l)(3)(A) of rule XI of the 
Rules of the House of Representatives, the Committee reports 
that the findings and recommendations of the Committee, based 
on oversight activities under clause 2(b)(1) of rule X of the 
Rules of the House of Representatives, are incorporated in the 
descriptive portions of this report.

         Committee on Government Reform and Oversight Findings

    No findings or recommendations of the Committee on 
Government Reform and Oversight were received as referred to in 
clause 2(l)(3)(D) of rule XI of the Rules of the House of 
Representatives.

               New Budget Authority and Tax Expenditures

    Clause 2(l)(3)(B) of House rule XI is inapplicable because 
this legislation does not provide new budgetary authority or 
increased tax expenditures.

               Congressional Budget Office Cost Estimate

    In compliance with clause 2(l)(C)(3) of rule XI of the 
Rules of the House of Representatives, the Committee sets 
forth, with respect to the bill, H.R. 672, the following 
estimate and comparison prepared by the Director of the 
Congressional Budget Office under section 403 of the 
Congressional Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, March 17, 1997.
Hon. Henry J. Hyde,
Chairman, Committee on the Judiciary,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 672, a bill to 
make technical amendments to certain provisions of Title 17, 
United States Code.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Rachel 
Forward.
            Sincerely,
                                         June E. O'Neill, Director.
    Enclosure.

H.R. 672--A bill to make technical amendments to certain provisions of 
        Title 17, United States Code

                                summary

    H.R. 672 would amend the United States Copyright Act to 
make a numerous technical corrections and clarifications. 
Specifically, the bill would eliminate certain reporting 
requirements, enable the Librarian of Congress to distribute 
uncontested royalties without convening a copyright arbitration 
royalty panel (CARP), and authorize the Librarian of Congress 
to deduct expenses for CARPs from the royalties collected and 
distributed by the government. The bill also would authorize 
the Register of Copyrights to adjust the current Copyright 
Office fees to reflect the fair cost of registering claims and 
providing services. The bill specifies that the fees would be 
credited as offsetting collections to the office's 
appropriations account.
    By allowing for increases in fees, H.R. 672 would eliminate 
the need for appropriations to fund the Copyright Office, thus 
reducing discretionary spending by about $11 million a year 
over the 1999-2002 period. In addition, CBO estimates that 
enacting this bill would result in direct spending of $5 
million over the 1998-2002 period and would increase revenues 
by $5 million over the same period. Because the legislation 
would affect direct spending and receipts in fiscal year 1998, 
pay-as-you-go procedures would apply. CBO estimates a net pay-
as-you-go impact of zero for 1998.
    The legislation also contains a private-sector mandate but 
the amount of the mandate would not exceed the $100 million 
threshold specified in the Unfunded Mandates Reform Act of 1995 
(UMRA). The bill contains no intragovernmental mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments.

                estimated cost to the federal government

    Under current law, the Copyright Office has the authority 
to collect and spend user fees; H.R. 672 would enable the 
office to increase the amount of such fees to cover its 
expenses, thus eliminating the need for an annual appropriation 
starting in 1999. The 1997 appropriation--net of offsetting 
collections--is $11 million. Because H.R. 672 would enable the 
Copyright Office to collect and spend the fees without further 
authorization, the net impact of these fees on direct spending 
would be roughly zero.
    H.R. 672 would make a number of changes affecting the 
administration of the copyright arbitration royalty panels and 
the distribution of royalties. Most of the changes would not 
affect the federal budget because they would either codify 
current practice or would not apply within the foreseeable 
future. CBO estimates, however, that authorizing the Library of 
Congress to collect and spend fees to cover the cost of 
ratemaking proceedings conducted by the CARPs would increase 
federal receipts and outlays by about $1 million in each of 
fiscal years 1998 through 2002.
    For the purposes of this estimate, CBO has assumed that 
H.R. 672 would be enacted by the end of fiscal year 1997 and 
that outlays would follow the historical spending patterns for 
the Copyright Office. The following table shows the estimated 
impact of this bill on direct spending and revenues.

                                            [In millions of dollars]                                            
----------------------------------------------------------------------------------------------------------------
                                                                             Fiscal year--                      
                                                     -----------------------------------------------------------
                                                        1997      1998      1999      2000      2001      2002  
----------------------------------------------------------------------------------------------------------------
                                     CHANGES TO DIRECT SPENDING AND REVENUES                                    
                                                                                                                
Estimated Budget Authority..........................         0         1         1         1         1         1
Estimated Outlays...................................         0         1         1         1         1         1
Estimated Revenues..................................         0         1         1         1         1         1
----------------------------------------------------------------------------------------------------------------

    The costs of this legislation fall within budget function 
370 (commerce and housing credit).

                           basis of estimate

Direct spending and revenues

    Enacting H.R. 672 would result in increases in Copyright 
Office fees (which are recorded as offsetting collections) and 
royalty fees (which are recorded as governmental receipts). As 
a result, direct spending would also increase--by the amounts 
of additional fee collections.
    Copyright Office Fees.--Under current law, the Copyright 
Office is authorized to collect and spend about $22 million in 
fees each year. In fiscal year 1997 the Copyright Office 
received an additional $11 million in appropriations for total 
budget authority of $33 million. H.R. 672 would authorize the 
Copyright Office to set fees according to the fair cost of 
registering copyright claims and providing services. CBO 
expects that the Copyright Office would conduct a study on fees 
in 1998 and would become fully fee-funded in fiscal year 1999, 
eliminating the need for appropriations.
    Under current law, the Copyright Office assesses most of 
its fees on copyright registration claims. In order to recover 
the direct cost of the copyright registration process, fees 
would need to be increased from $20 per registration to an 
estimated $35 to $40 per registration. Such an increase in the 
copyright registration fee could cause a drop in demand, but 
CBO expects that the number of copyright registrations would 
not fall sharply below the current level. CBO estimates that 
the office would raise an additional $12 million to $13 million 
in fees per year by increasing the registration fee and other 
user fees over the 1999-2002 period. Although the Copyright 
Office could collect and spend the fees without further 
authorization, we would expect the appropriations acts to 
specify in advance the amount of fees that could be spent in 
any fiscal year.
    Changes to Royalty Fees.--H.R. 672 would change certain 
statutory royalty payments for carriage of network signals by 
satellite carriers. These royalty payments are collected by the 
federal government as governmental receipts (revenues) and are 
distributed without appropriation as direct spending. Because 
H.R. 672 would raise the statutory rates to the amounts 
currently in effect as a result of a 1992 arbitration ruling, 
CBO estimates that this provision would cause no change in 
direct spending or receipts.
    Under current law, the Copyright Office convenes a 
copyright arbitration royalty panel to arbitrate disputes 
between copyright owners and users. The members of CARPs, who 
are not government employees, bill the parties to the 
arbitration directly for their expenses. H.R. 672 would allow 
the Librarian of Congress to deduct the expenses of such CARPs 
from the royalties held in escrow by the government. CBO 
estimates that this provision would have no budgetary impact 
because it would not affect the amount of royalties collected 
or the amount of money disbursed by the government.
    The Copyright Office also convenes a CARP to set royalty 
rates. H.R. 672 would authorize the Librarian of Congress to 
collect fees from parties to a ratemaking proceeding and 
distribute those fees to members of CARPs to cover their 
expenses. Based on information from the Copyright Office, CBO 
estimates that the Librarian would collect and distribute fees 
of about $1 million each year. These fees would increase 
governmental receipts and outlays by about $1 million each 
year. The net budgetary impact of such fees would be roughly 
zero over time.
    H.R. 672 would require the Librarian of Congress to convene 
a CARP to establish royalty rates if copyright owners and 
jukebox operators fail to negotiate an agreement on rates. If a 
CARP were to be convened when the current licensing agreement 
expires in 1999, the office would likely collect and distribute 
disputed royalties of about $7 million a year. Based on 
information from the Copyright Office, CBO expects that the 
jukebox owners will successfully negotiate another agreement 
with copyright owners in 1999 and that the royalty payments 
will not be collected and distributed by the office. Therefore, 
we do not expect that this provision would affect direct 
spending or receipts.

Spending subject to appropriation

    CBO estimates that eliminating certain reporting 
requirements would save the Copyright Office about $150,000 in 
fiscal year 1998. Because additional fee income would be 
available to cover the office's expenses, net outlays from 
appropriations would decline from $11 million in 1997 to close 
to zero in 1999 and subsequent years.

                      pay-as-you-go considerations

    Section 252 of the Balanced Budget and Emergency Deficit 
Control Act of 1985 sets up pay-as-you-go procedures for 
legislation affecting direct spending or receipts through 1998. 
CBO estimates that enactment of H.R. 672 would increase both 
direct spending and governmental receipts (revenues) by about 
$1 million each in 1998 from the collection and spending of 
fees to cover the expenses of the CARPs.

        estimated impact on state, local, and tribal governments

    H.R. 672 contains no intergovernmental mandates as defined 
in the Unfunded Mandates Reform Act of 1995 (UMRA) and would 
impose no costs on state, local, or tribal governments.

                 estimated impact on the private sector

    This bill would impose a new private-sector mandate by 
authorizing the Register of Copyrights to increase the fees 
charged by the Copyright Office. CBO has determined that 
increases to Copyright Office fees are mandates as defined in 
UMRA. The direct costs of the new mandate would total about $12 
million a year, which is significantly below the $100 million 
threshold specified in UMRA.
    Estimate prepared by: Federal cost: Rachel Forward; impact 
on State, local, and tribal governments: Leo Lex; and impact on 
the private sector: Matthew Eyles.
    Estimate approved by: Robert A. Sunshine, Deputy Assistant 
Director for Budget Analysis.

                        Constitutional Authority

    Pursuant to rule XI, clause 2(l)(4) of the Rules of the 
House of Representatives, the Committee finds the authority for 
this legislation in Article I, clause 8, section 8 of the 
Constitution.

                      Section-by-Section Analysis

Section 1. Technical Corrections to Section 119 of the Act.

    Section 119 contains certain drafting errors which were the 
result of amending the Copyright Act without taking into 
account changes made by the Copyright Royalty Tribunal Reform 
Act of 1993.
    Subsection (1) clarifies the royalty rates that are paid by 
satellite carriers for retransmission of network and 
superstation broadcast signals to satellite dish owners for 
private home viewing. Congress intended that the rates adopted 
in the law should be the same as the rates that were set by 
arbitration in 1992. However, the Satellite Home Viewer Act of 
1994 reversed the rates; the current law states that 17.5 cents 
should be paid for signals not subject to the FCC's syndicated 
exclusivity blackout rules, and 14 cents per subscriber for 
signals subject to such rules. Subsection (1) corrects that 
reversal.
    Subsection (2) corrects the section numbers, and 
accompanying references, to take into account the changes made 
to title 17 by the Copyright Royalty Tribunal Reform Act of 
1993.
    Subsection (3) deletes reference to the effective date of 
the Satellite Home Viewer Act of 1988 to avoid any confusion 
that might result from two Acts of the same name, and inserts 
the effective date of the Satellite Home Viewer Act of 1988, 
which was November 16, 1988.

Section 2. Copyright in Restored Works.

    In 1994, a new Section 104A was created to restore 
copyright protection to certain preexisting works from other 
World Trade Organization (``WTO'') and Berne Convention member 
countries that had fallen into the public domain in the United 
States. During the drafting process, some inadvertent errors 
were made. These errors alter the intended meaning of the 
statute or create accidental ambiguities. In order to avoid 
constitutional challenges and unnecessary litigation, the 
amendments to Section 104A in H.R. 672 correct the errors.

1. Provision for already-created derivative works

    The first part of the amendment to section 104A deals with 
establishing special treatment for already-created derivative 
works. The problem with this subsection was created by a word 
change in the bill during technical and conforming revisions. 
This change inadvertently altered the effect of the subsection 
and in large part nullified its purpose. The amendment in H.R. 
672 substitutes the word ``restored'' for the word 
``derivative'' in two places in subsection (3), entitled 
``Existing Derivative Works,'' in order to reverse that 
mistaken change, and inserts the word ``derivative'' in one 
other place in that subsection in order to ensure clarity.
    In enacting section 104A, Congress considered the fact that 
restoring copyright in works that are currently in the public 
domain creates a potential problem: people may have used these 
works as the basis for new derivative works, such as motion 
pictures made from novels. At the time the new derivative work 
was created, the use of the underlying work was completely 
lawful, since it was in the public domain. Once copyright in 
the underlying work is restored, however, the continued use of 
the derivative work without the consent of the owner of the 
copyright in the underlying work would constitute copyright 
infringement. See Stewart v. Abend, 495 U.S. 207 (1990).
    Witnesses at the hearings on the bill testified that 
preventing the creators of derivative works from making use of 
those works might raise Constitutional problems under both the 
Copyright Clause and the Takings Clause of the Fifth Amendment. 
Accordingly, Congress included a special provision for 
derivative works based on restored works where the derivative 
work was created before the date of restoration, allowing the 
owner of the derivative work to continue to use it even after 
the one-year sell-off period provided to all reliance parties, 
upon payment of reasonable compensation to the copyright owner 
of the restored work. See SAA at paragraph B.1.c.(3), 1994 
U.S.C.C.A.N. 4040, 4292.
    In a drafting error, the phrase ``if the source country of 
the restored work is an eligible country'' was changed to ``if 
the source country of the derivative work is an eligible 
country.'' Since ``eligible country'' is defined in the statute 
to exclude the United States, the effect of this word change 
was to exclude all U.S. derivative works from the benefit of 
this provision--the major constituency of works that the 
provision was meant to protect. In other words, U.S. derivative 
works based on now-restored foreign works that were in the 
public domain at the time the derivative works were created can 
no longer legally be exploited in this country without the 
consent of the owner of the foreign work. The amendment 
corrects that unintended inequity.

2. Publication of list of notices of intent

    The second part of the amendment deletes the requirement 
for the Copyright Office to publish in the Federal Register a 
cumulative annual list of notices of intent to enforce restored 
copyrights filed with the Office. The Office is already 
required to publish a list of such notices every four months, 
and publication of a cumulative annual list would be expensive 
and duplicative.

3. Date of copyright restoration

    The third part of the amendment specifies the date 
``January 1, 1996'' in the statute's definition of ``date of 
restoration'' to make explicit the date on which these foreign 
copyrights were restored.
    Despite Congressional intent that the restoration date be 
January 1, 1996, the statutory language is potentially 
ambiguous on this point. The ``date of restoration'' is defined 
as the date on which the Agreement on Trade-Related Aspects of 
Intellectual Property Rights (``TRIPs'') entered into force 
with respect to the United States for works from countries that 
are members of the Berne Convention or the WTO on that date. 
The reference to when the TRIPs agreement entered into force is 
subject to interpretation. TRIPs is part of the overall WTO 
agreement, which entered into force with respect to the United 
States on January 1, 1995. The TRIPS agreement granted to the 
United States and other developed countries one year, or until 
January 1, 1996, to fully implement its provisions. The TRIPs 
obligation to restore copyrights therefore became effective on 
January 1, 1996.
    In enacting new section 104A, Congress intended the 
restoration of foreign copyrights to take place on January 1, 
1996. The statute itself requires the Copyright Office to issue 
regulations governing restored copyrights no later than 90 days 
before the TRIPs agreement entered into force with respect to 
the United States. Sec. 104A(e)(1)(D)(I). If the restoration 
date were January 1, 1995, the statute did not become law until 
3 weeks prior to that date, making it impossible for the 
Copyright Office to comply with a deadline of 90 days in 
advance.
    The Statement of Administrative Action (``SAA''), approved 
by Congress and the statute's legislative history both confirm 
this interpretation. The SAA unambiguously states that the 
foreign copyrights will be restored on the date ``when the 
TRIPs Agreement's obligations take effect for the United 
States.'' The Joint Report on the Senate version makes this 
explicit, stating that the ``bill would automatically restore 
copyright protection for qualifying works * * * one year after 
the WTO comes into being.'' Joint Report of the Committee on 
Finance, Committee on Agriculture, Nutrition and Forestry, and 
Committee on Governmental Affairs of the United States Senate 
to accompany the Uruguay Round Agreements Act, S. 2467, S. Rep. 
No. 412, 103d Cong., 2d Sess. 225 (1994).
    Since enactment of the TRIPs Agreement, the Copyright 
Office and the White House have attempted to resolve any 
ambiguity. The Copyright Office published a notice of policy 
decision concluding that January 1, 1996 is the date of 
restoration. 60 Fed. Reg. 7793 (February 9, 1995). The 
President issued a proclamation clarifying that January 1, 1996 
is the date on which all the TRIPs obligations take effect for 
the United States. Proclamation 6780 of March 23, 1995, 60 Fed. 
Reg. 15845 (1995).
    Nevertheless, some commentators have concluded that the 
language of the statute requires a restoration date of January 
1, 1995. See, e.g., William F. Patry, Copyright and the GATT: 
An Interpretation and Legislative History of the Uruguay Round 
Agreements Act, 31-36 (1995). Apart from the inconsistency with 
legislative intent, this reading causes problems. First, since 
the Copyright Office did not (and could not administratively) 
start to accept notices of intent to enforce restored 
copyrights until January 1,1996, it would effectively reduce 
the window of opportunity to file such notices from two years 
to one. Second, it would expand the group of foreign works for 
which copyright would be restored, and therefore made 
unavailable for free use by the American public.

4. Definition of ``eligible country'' for purposes of 
determining who qualifies as ``reliance party''

    Finally, the definition of ``eligible country'' creates a 
potential unintended problem when read in the context of the 
definition of who qualifies as a ``reliance party.'' The 
amendment revises the definition of ``eligible country'' to 
resolve this problem.
    A ``reliance party'' is given certain limited rights to 
continue exploiting restored works. In order to qualify as a 
reliance party, the time period of when one engaged in acts 
with respect to the restored work is critical. Ordinarily, 
these acts must have begun prior to the date of the statute's 
enactment (December 8, 1994). If the source country of the work 
has become an ``eligible country'' after that date, however, 
the acts must have begun prior to the date it became an 
eligible country. The problem is that ``eligible country'' is 
defined as ``a nation, other than the United States, that is a 
WTO member country, adheres to the Berne Convention, or is 
subject to a presidential proclamation.'' In the context of 
determining whether someone is a reliance party, this could be 
read to mean that the party's acts must have begun prior to the 
date that the source country became an eligible country by 
joining the Berne Convention. Some countries joined the Berne 
Convention when it was established in 1886; others joined at 
subsequent points between that date and December 8, 1994. 
Obviously, no one will be able to qualify as a reliance party 
if his or her use of a work had to begin before 1886.
    The amendment therefore amends the definition of ``eligible 
country'' to clarify the relevant dates of the events leading 
to eligibility. The reference to a country that ``is a WTO 
member'' is changed to refer to a country that becomes a WTO 
member country after the date of the enactment of the Uruguay 
Round Agreements Act''; the reference to a country that 
``adheres to the Berne Convention'' is changed to refer to a 
country that ``on such date of enactment is, or after such date 
of enactment becomes, a member of the Berne Convention''; and 
the relevant presidential proclamation is defined as one that 
takes place ``after such date of enactment.''

Section 3. Licenses for Nonexempt Subscription Transmissions.

    Subsection (1) is intended to avoid the possibility of a 
gap in the effective dates of the royalty rates established in 
1996 and 2000-2001 for the public performance of sound 
recordings by nonexempt subscription digital transmission 
services. The Digital Performance Right in Sound Recordings Act 
of 1995 directed that the rates established in 1996 are to 
expire on December 31, 2000. New rates are to be established 
during 2000. However, it is possible that the work of the 
copyright arbitration royalty panel (``CARP'') and of the 
Librarian of Congress in reviewing the CARP's report will not 
be concluded by December 31, 2000, thereby creating a period in 
which no rates apply. Subsection (1) avoids this result by 
stating that the effective date of the rates set in 1996 last 
until December 31, 2000, or until 30 days after the Librarian 
has published in the Federal Register his or her decision to 
adopt or reject the CARP's rate adjustment decision. Resorting 
to this second option will be unnecessary if a CARP is not 
convened, or if the CARP and the Librarian conclude their 
functions before December 31, 2000.
    Subsection (2) deletes the phrase from Section 114(f) which 
authorizes a copyright arbitration royalty panel to publish its 
decision in the Federal Register. This was an inadvertent 
mistake, since only government agencies may publish in the 
Federal Register. Any decision of a CARP will be published by 
the Librarian of Congress pursuant to the provisions of chapter 
8 of the Copyright Act.

Section 4. Royalty Payable Under Compulsory License.

    This section deletes the phrase from Section 115(c) which 
authorizes a copyright arbitration royalty panel to publish its 
decision in the Federal Register. Since only agencies may 
publish in the Federal Register, the decision of the CARP will 
be published by the Librarian of Congress pursuant to the 
provisions of chapter 8 of the Copyright Act.

Section 5. Negotiated License for Jukeboxes.

    The Copyright Royalty Tribunal Reform Act of 1993 
eliminated the old Sec. 116 jukebox compulsory license and 
replaced it with the Sec. 116A negotiated jukebox license 
adopted in the Berne Convention implementing legislation in 
1988. This produced two unintended results. It eliminated the 
definitions of a ``jukebox'' and a ``jukebox operator,'' and it 
sanctioned the possibility of an arbitration proceeding which 
is not a copyright arbitration royalty panel (CARP) 
arbitration. This section restores the original definitions as 
they appeared in the Copyright Act in 1978, and it clarifies 
that any jukebox negotiated license which requires arbitration 
is to be a CARP proceeding.

Section 6. Registration and Infringement Actions.

    This section amends section 411(b) of the Copyright Act, 
which covers works that are being transmitted ``live'' at the 
same time that they are being fixed in tangible form for the 
first time. Currently, copyright owners must give the would-be 
infringer at least a 10-day advance notice that a copyright is 
being claimed in the work. When notice is given, an injunction 
can be obtained to prevent the unauthorized use of the work.
    This provision has proven problematic when applied to a 
number of sporting events, especially elimination play-offs. In 
many instances the teams and the times of the games are not 
known 10 days in advance. Therefore, this notice provision is 
amended to provide for notice of not less than 48 hours.

Section 7. Studies on Copyright and Other Matters.

    This section allows the Copyright Office to continue its 
current practice of conducting studies and programs on 
copyright law and on other matters on which it possesses 
expertise such as semiconductor chip protection and database 
protection.

Section 8. Copyright Office Fees.

    The Copyright Fees and Technical Amendments Act of 1989 
established a fee schedule for Copyright Office services which 
could be adjusted in 1995 and every fifth year thereafter 
according to changes in the Consumer Price Index.
    Actual experience with the fee adjustment mechanism, 
however, has highlighted certain problems that underscore the 
need for reform. Because of the relatively low inflation of the 
early 1990s, the change in the Consumer Price Index was not 
great enough to justify incurring the costs associated with 
publicizing and administering a new fee schedule. Therefore, 
the Copyright Office did not publish a new fee schedule in 
1995, and is required by the current statute to wait until 2000 
to modify its fees.
    However, it is not clear from the current wording of the 
law whether, if the Copyright Office were to adopt a new fee 
schedule in 2000, it could take into account the inflation of 
the entire ten-year period since the last fee schedule was 
adopted, 1990-2000, or whether it could only take into account 
the inflation of the period 1995-2000. The fee schedule adopted 
in 1989 is not based on a cost recovery model. Consequently, 
merely adjusting fees based on rises in the Consumer Price 
Index will not solve all of the problems. Therefore, subsection 
(a) gives the Register the authority to set the basic fees.
    Subsection (a) allows fees to be raised beginning in 1996 
and in any subsequent year. Based on a study to determine the 
costs incurred by the Copyright Office, the Register may 
increase fees up to the reasonable costs incurred by the 
Copyright Office plus a reasonable inflation adjustment to 
account for future increases in costs. The fees shall be 
rounded off to the nearest dollar, or, if the fee is less than 
$12, to the nearest half-dollar. The fees must be fair and 
equitable and give due consideration to the objectives of the 
copyright system. This allows the Register to decide that fees 
may be less than the costs of the services provided, if that 
furthers the objectives of the copyright system.
    If the Register wants to increase fees, he or she shall 
submit the proposed fee schedule with the study and its 
economic analysis to Congress. The fees proposed by the 
Register may be instituted after the end of 120 days after the 
schedule is submitted to the Congress unless, within that 120-
day period, a law is enacted stating in substance that the 
Congress does not approve the schedule.
    Subsection (b) of this section gives the Register of 
Copyrights the discretion to invest funds from the Copyright 
Office's prepaid fees (``Deposit Accounts'') that are not 
needed to meet current demands for services in interest-bearing 
securities in the United States Treasury, and to use the income 
from such investments for necessary expenses of the Copyright 
Office. The Copyright Office is currently engaged in developing 
its new electronic registration, recordation and deposit 
system, CORDS (Copyright Office Registration, Recordation and 
Deposit System), and the Committee expects that the Copyright 
Office will, where feasible, use the interest on deposit 
account funds for the development and operation of CORDS.

Section 9. Copyright Arbitration Royalty Panels.

    Subsection (1) makes clear that the 1997 satellite carrier 
rate adjustment is a CARP proceeding. That proceeding was left 
out of section 801 when the Copyright Royalty Tribunal Reform 
Act of 1993 was passed, because, at that time, the satellite 
carrier compulsory license was set to expire in 1994 without 
any further rate adjustment. With the passage of the Satellite 
Home Viewer Act of 1994, the satellite carrier compulsory 
license is extended to December 31, 1999, and the rate 
adjustment proceeding which has been scheduled for 1997 needs 
to be reflected in section 801.
    Subsection (2) gives two concrete examples of the 
procedural and evidentiary rulings the Librarian of Congress 
may render related to CARP proceedings. They include the 
authority to determine the amount and distribute the royalty 
fees that are not in controversy, and the authority to reject 
royalty claims that are untimely or do not establish the basis 
for a claim as required by the Copyright Office's regulations. 
By setting out these examples, the Committee does not intend to 
abridge the authority of the Librarian to make other procedural 
and evidentiary rulings that would apply to a CARP proceeding, 
such as precontroversy discovery rulings.
    Subsection (3) gives the Librarian of Congress the 
authority to pay the CARP arbitrators directly according to a 
signed agreement and any regulations that the Librarian may 
adopt. Currently, the parties to an arbitration proceeding pay 
the arbitrators.
    Subsection (3) further provides that in distribution 
proceedings, the payments made to the arbitrators by the 
Librarian, as well as the costs of the Library and the 
Copyright Office, come from the relevant royalty pool. In 
ratemaking proceedings, the costs are paid by assessing the 
parties to the proceeding subject to the discretion of the 
arbitrators.
    Subsection (3) also clarifies the status of the 
arbitrators. They are independent contractors acting on behalf 
of the United States. The phrase ``acting on behalf of the 
United States'' is intended to make clear that the laws 
governing the conduct and standards of behavior of government 
employees and those who deal with them in a professional 
capacity apply to the CARP arbitrators.

Section 10. Digital Audio Recording Devices and Media.

    The Audio Home Recording Act of 1992 requires the Librarian 
to determine by March 30th of each year whether there are any 
controversies among the claimants in the distribution of 
digital audio recording technology (DART) royalties. However, 
DART royalty claimants file their claims, in person or by mail, 
in January and February of each year. Because claims mailed in 
February may not reach the Copyright Office until early March, 
there is very little time for the Office to compile its 
official claimant list and for the claimants to negotiate with 
each other to determine whether they can settle their 
differences before the March 30th deadline. The March 30th 
deadline has proved to be impracticable. This section removes 
the deadline, and gives the Librarian the flexibility to 
reasonably set the length of the negotiation period in order to 
promote settlements.

Section 11. Conforming Amendment.

    This section corrects a numbering mistake in the Digital 
Performance Right in Sound Recordings Act of 1995.

Section 12. Miscellaneous Technical Amendments.

    This section corrects spelling and typographical errors 
existing in title 17.

Section 13. Effective Dates.

    All amendments to the Copyright Act included in this bill 
take effect on the date of enactment of the legislation, with 
the exception of Section 2, the satellite carrier provisions, 
which are effective on the date of enactment of the Satellite 
Home Viewer Act of 1994, October 18, 1994.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3 of rule XIII of the Rules of the 
House of Representatives, changes in existing law made by the 
bill, as reported, are shown as follows (existing law proposed 
to be omitted is enclosed in black brackets, new matter is 
printed in italic, existing law in which no change is proposed 
is shown in roman):

                   SATELLITE HOME VIEWER ACT OF 1994

          * * * * * * *

SEC. 2. STATUTORY LICENSE FOR SATELLITE CARRIERS.

  Section 119 of title 17, United States Code, is amended as 
follows:
          (1) * * *
          * * * * * * *
          (3) Subsection (b)(1)(B) is amended--
                  [(A) in clause (i) by striking ``12 cents'' 
                and inserting ``17.5 cents per subscriber in 
                the case of superstations not subject to 
                syndicated exclusivity under the regulations of 
                the Federal Communications Commission, and 14 
                cents per subscriber in the case of 
                superstations subject to such syndicated 
                exclusivity''; and]
                  (A) in clause (i) by striking ``12 cents'' 
                and inserting ``17.5 cents per subscriber in 
                the case of superstations that as retransmitted 
                by the satellite carrier include any program 
                which, if delivered by any cable system in the 
                United States, would be subject to the 
                syndicated exclusivity rules of the Federal 
                Communications Commission, and 14 cents per 
                subscriber in the case of superstations that 
                are syndex-proof as defined in section 258.2 of 
                title 37, Code of Federal Regulations''; and
          * * * * * * *
          [(4) Subsection (c) is amended--
                  [(A) in paragraph (1) by striking ``December 
                31, 1992,'';
                  [(B) in paragraph (2)--
                          [(i) in subparagraph (A) by striking 
                        ``July 1, 1991'' and inserting ``July 
                        1, 1996''; and
                          [(ii) in subparagraph (D) by striking 
                        ``December 31, 1994'' and inserting 
                        ``December 31, 1999, or in accordance 
                        with the terms of the agreement, 
                        whichever is later''; and
                  [(C) in paragraph (3)--
                          [(i) in subparagraph (A) by striking 
                        ``December 31, 1991'' and inserting 
                        ``January 1, 1997'';
                          [(ii) by amending subparagraph (D) to 
                        read as follows:
                  [(D) Establishment of royalty fees.--In 
                determining royalty fees under this paragraph, 
                the Copyright Arbitration Panel shall establish 
                fees for the retransmission of network stations 
                and superstations that most clearly represent 
                the fair market value of secondary 
                transmissions. In determining the fair market 
                value, the Panel shall base its decision on 
                economic, competitive, and programming 
                information presented by the parties, 
                including--
                          [``(i) the competitive environment in 
                        which such programming is distributed, 
                        the cost for similar signals in similar 
                        private and compulsory license 
                        marketplaces, and any special features 
                        and conditions of the retransmission 
                        marketplace;
                          [``(ii) the economic impact of such 
                        fees on copyright owners and satellite 
                        carriers; and
                          [``(iii) the impact on the continued 
                        availability of secondary transmissions 
                        to the public.'';
                          [(iii) in subparagraph (E) by 
                        striking ``60'' and inserting ``180''; 
                        and
                          [(iv) in subparagraph (C)--
                                  [(I) by striking ``, or until 
                                December 31, 1994''; and
                                  [(II) by inserting ``or July 
                                1, 1997, whichever is later'' 
                                after ``section 802(g)''.]
          (4) Subsection (c) is amended--
                  (A) in paragraph (1)--
                          (i) by striking ``until December 31, 
                        1992,'';
                          (ii) by striking ``(2), (3) or (4)'' 
                        and inserting ``(2) or (3)''; and
                          (iii) by striking the second 
                        sentence;
                  (B) in paragraph (2)--
                          (i) in subparagraph (A) by striking 
                        ``July 1, 1991'' and inserting ``July 
                        1, 1996''; and
                          (ii) in subparagraph (D) by striking 
                        ``December 31, 1994'' and inserting 
                        ``December 31,1999, or in accordance 
                        with the terms of the agreement, 
                        whichever is later''; and
                  (C) in paragraph (3)--
                          (i) in subparagraph (A) by striking 
                        ``December 31, 1991'' and inserting 
                        ``January 1, 1997'';
                          [(ii) by amending subparagraph (D) to 
                        read as follows:
                  [``(D) Establishment of royalty fees.--In 
                determining royalty fees under this paragraph, 
                the Copyright Arbitration Panel shall establish 
                fees for the retransmission of network stations 
                and superstations that most clearly represent 
                the fair market value of secondary 
                transmissions. In determining the fair market 
                value, the Panel shall base its decision on 
                economic, competitive, and programming 
                information presented by the parties, 
                including--
                          [``(i) the competitive environment in 
                        which such programming is distributed, 
                        the cost for similar signals in similar 
                        private and compulsory license 
                        marketplaces, and any special features 
                        and conditions of the retransmission 
                        marketplace;
                          [``(ii) the economic impact of such 
                        fees on copyright owners and satellite 
                        carriers; and
                          [``(iii) the impact on the continued 
                        availability of secondary transmissions 
                        to the public.'';
                          [(iii) in subparagraph (E) by 
                        striking ``60'' and inserting ``180''; 
                        and
                          [(iv) in subparagraph (C)--
                                  [(I) by striking ``, or until 
                                December 31, 1994''; and
                                  [(II) by inserting ``or July 
                                1, 1997, whichever is later'' 
                                after ``section 802(g)''.]
          (4) Subsection (c) is amended--
                  (A) in paragraph (1)--
                          (i) by striking ``until December 31, 
                        1992,'';
                          (ii) by striking ``(2), (3) or (4)'' 
                        and inserting ``(2) or (3)''; and
                          (iii) by striking the second 
                        sentence;
                  (B) in paragraph (2)--
                          (i) in subparagraph (A) by striking 
                        ``July 1, 1991'' and inserting ``July 
                        1, 1996''; and
                          (ii) in subparagraph (D) by striking 
                        ``December 31, 1994'' and inserting 
                        ``December 31, 1999, or in accordance 
                        with the terms of the agreement, 
                        whichever is later''; and
                  (C) in paragraph (3)--
                          (i) in subparagraph (A) by striking 
                        ``December 31, 1991'' and inserting 
                        ``January 1, 1997'';
                          (ii) by amending subparagraph (B) to 
                        read as follows:
                  ``(B) Establishment of royalty fees.--In 
                determining royalty fees under this paragraph, 
                the copyright arbitration royalty panel 
                appointed under chapter 8 shall establish fees 
                for the retransmission of network stations and 
                superstations that most clearly represent the 
                fair market value of secondary transmissions. 
                In determining the fair market value, the panel 
                shall base its decision on economic, 
                competitive, and programming information 
                presented by the parties, including--
                          ``(i) the competitive environment in 
                        which such programming is distributed, 
                        the cost of similar signals in similar 
                        private and compulsory license 
                        marketplaces, and any special features 
                        and conditions of the retransmission 
                        marketplace;
                          ``(ii) the economic impact of such 
                        fees on copyright owners and satellite 
                        carriers; and
                          ``(iii) the impact on the continued 
                        availability of secondary transmissions 
                        to the public.''; and
                          (iii) in subparagraph (C), by 
                        inserting ``or July 1, 1997, whichever 
                        is later'' after ``section 802(g)''.
          (5) Subsection (a) is amended--
                  [(A) in paragraph (5)(C) by striking ``the 
                Satellite Home Viewer Act of 1988'' and 
                inserting ``this section''; and]
                  (A) in paragraph (5)(C) by striking ``the 
                date of the enactment of the Satellite Home 
                Viewer Act of 1988'' and inserting ``November 
                16, 1988''; and
          * * * * * * *
                              ----------                              

                      TITLE 17, UNITED STATES CODE

Chap.                                                               Sec.
      Subject Matter and Scope of Copyright..........................101
     * * * * * * *
      Manufacturing [Requirement] Requirements and Importation.......601
     * * * * * * *
      Copyright [Royalty Tribunal] Arbitration Royalty Panels........801
      Protection of [semiconductor chip products] Semiconductor Chip  9.
        Products.....................................................901
      Digital Audio Recording Devices and Media.....................1001
     * * * * * * *

            CHAPTER 1--SUBJECT MATTER AND SCOPE OF COPYRIGHT

Sec.
101. Definitions.
     * * * * * * *
[117. Scope of exclusive rights: Use in conjunction with computers]
117. Limitations on exclusive rights: Computer programs.
          * * * * * * *

Sec. 101. Definitions

  Except as otherwise provided in this title, as used in this 
title, the following terms and their variant forms mean the 
following:
          An ``anonymous work'' is a work on the copies or 
        phonorecords of which no natural person is identified 
        as author.
          An ``architectural work'' is the design of a building 
        as embodied in any tangible medium of expression, 
        including a building, architectural plans, or drawings. 
        The work includes the overall form as well as the 
        arrangement and composition of spaces and elements in 
        the design, but does not include individual standard 
        features.
          * * * * * * *
          To perform or display a work ``publicly'' means--
                  (1) to perform or display it at a place open 
                to the public or at any place where a 
                substantial number of persons outside of a 
                normal circle of a family and its social 
                acquaintances is gathered; or
                  (2) to transmit or otherwise communicate a 
                performance or display of the work to a place 
                specified by clause (1) or to the public, by 
                means of any device or [processs] process, 
                whether the members of the public capable of 
                receiving the performance or display receive it 
                in the same place or in separate places and at 
                the same time or at different times.
          * * * * * * *

Sec. 104A. Copyright in restored works

  (a) * * *
          * * * * * * *
  (d) Remedies for Infringement of Restored Copyrights.--
          (1) * * *
          * * * * * * *
          [(3) Existing derivative works.--(A) In the case of a 
        derivative work that is based upon a restored work and 
        is created--
                  [(i) before the date of the enactment of the 
                Uruguay Round Agreements Act, if the source 
                country of the derivative work is an eligible 
                country on such date, or
                  [(ii) before the date of adherence or 
                proclamation, if the source country of the 
                derivative work is not an eligible country on 
                such date of enactment, a reliance party may 
                continue to exploit that work for the duration 
                of the restored copyright if the reliance party 
                pays to the owner of the restored copyright 
                reasonable compensation for conduct which would 
                be subject to a remedy for infringement but for 
                the provisions of this paragraph.]
          (3) Existing derivative works.--(A) In the case of a 
        derivative work that is based upon a restored work and 
        is created--
                  (i) before the date of the enactment of the 
                Uruguay Round Agreements Act, if the source 
                country of the restored work is an eligible 
                country on such date, or
                  (ii) before the date on which the source 
                country of the restored work becomes an 
                eligible country, if that country is not an 
                eligible country on such date of enactment,
        a reliance party may continue to exploit that 
        derivative work for the duration of the restored 
        copyright if the reliance party pays to the owner of 
        the restored copyright reasonable compensation for 
        conduct which would be subject to a remedy for 
        infringement but for the provisions of this paragraph.
          * * * * * * *
  (e) Notices of Intent To Enforce a Restored Copyright.--
          (1) Notices of intent filed with the copyright 
        office.--(A) * * *
          (B)(i) * * *
          (ii) Not less than 1 list containing all notices of 
        intent to enforce shall be maintained in the Public 
        Information Office of the Copyright Office and shall be 
        available for public inspection and copying during 
        regular business hours pursuant to sections 705 and 
        708. [Such list shall also be published in the Federal 
        Register on an annual basis for the first 2 years after 
        the applicable date of restoration.]
          * * * * * * *
  (h) Definitions.--For purposes of this section and section 
109(a):
          (1) * * *
          [(2) The ``date of restoration'' of a restored 
        copyright is the later of--
                  [(A) the date on which the Agreement on 
                Trade-Related Aspects of Intellectual Property 
                referred to in section 101(d)(15) of the 
                Uruguay Round Agreements Act enters into force 
                with respect to the United States, if the 
                source country of the restored work is a nation 
                adhering to the Berne Convention or a WTO 
                member country on such date; or
                  [(B) the date of adherence or proclamation, 
                in the case of any other source country of the 
                restored work.
          [(3) The term ``eligible country'' means a nation, 
        other than the United States, that is a WTO member 
        country, adheres to the Berne Convention, or is subject 
        to a proclamation under subsection (g).]
          (2) The ``date of restoration'' of a restored 
        copyright is--
                  (A) January 1, 1996, if the source country of 
                the restored work is a nation adhering to the 
                Berne Convention or a WTO member country on 
                such date, or
                  (B) the date of adherence or proclamation, in 
                the case of any other source country of the 
                restored work.
          (3) The term ``eligible country'' means a nation, 
        other than the United States, that--
                  (A) becomes a WTO member country after the 
                date of the enactment of the Uruguay Round 
                Agreements Act;
                  (B) on such date of enactment is, or after 
                such date of enactment becomes, a member of the 
                Berne Convention; or
                  (C) after such date of enactment becomes 
                subject to a proclamation under subsection (g).
        For purposes of this section, a nation that is a member 
        of the Berne Convention on the date of the enactment of 
        the Uruguay Round Agreements Act shall be construed to 
        become an eligible country on such date of enactment.
          * * * * * * *

Sec. 108. Limitations on exclusive rights: Reproduction by libraries 
                    and archives

  (a) * * *
          * * * * * * *
  (e) The rights of reproduction and distribution under this 
section apply to the entire work, or to a substantial part of 
it, made from the collection of a library or archives where the 
user makes his or her request or from that of another library 
or archives, if the library or archives has first determined, 
on the basis of a reasonable investigation, that a copy or 
phonorecord of the copyrighted work cannot be obtained at a 
[pair] fair price, if--
          (1) * * *
          * * * * * * *

Sec. 109. Limitations on exclusive rights: Effect of transfer of 
                    particular copy or phonorecord

  (a) * * *
  (b)(1) * * *
  (2)(A) * * *
  (B) Not later than three years after the date of the 
enactment of the Computer Software Rental Amendments Act of 
1990, and at such times thereafter as the Register of 
[Copyright] Copyrights considers appropriate, the Register of 
Copyrights, after consultation with representatives of 
copyright owners and librarians, shall submit to the Congress a 
report stating whether this paragraph has achieved its intended 
purpose of maintaining the integrity of the copyright system 
while providing nonprofit libraries the capability to fulfill 
their function. Such report shall advise the Congress as to any 
information or recommendations that the Register of Copyrights 
considers necessary to carry out the purposes of this 
subsection.
          * * * * * * *

Sec. 110. Limitations on exclusive rights: Exemption of certain 
                    performances and displays

  Notwithstanding the provisions of section 106, the following 
are not infringements of copyright:
          (1) * * *
          * * * * * * *
          (8) performance of a nondramatic literary work, by or 
        in the course of a transmission specifically designed 
        for and primarily directed to blind or other 
        handicapped persons who are unable to read normal 
        printed material as a result of their handicap, or deaf 
        or other handicapped persons who are unable to hear the 
        aural signals accompanying a transmission of visual 
        signals, if the performance is made without any purpose 
        of direct or indirect commercial advantage and its 
        transmission is made through the facilities of: (i) a 
        governmental body; or (ii) a noncommercial educational 
        broadcast station (as defined in section 397 of title 
        47); or (iii) a radio subcarrier authorization (as 
        defined in 47 CFR 73.293-73.295 and 73.593-73.595); or 
        (iv) a cable system (as defined in section 111(f))[.];
          (9) performance on a single occasion of a dramatic 
        literary work published at least ten years before the 
        date of the performance, by or in the course of a 
        transmission specifically designed for and primarily 
        directed to blind or other handicapped persons who are 
        unable to read normal printed material as a result of 
        their handicap, if the performance is made without any 
        purpose of direct or indirect commercial advantage and 
        its transmission is made through the facilities of a 
        radio subcarrier authorization referred to in clause 
        (8)(iii), Provided, That the provisions of this clause 
        shall not be applicable to more than one performance of 
        the same work by the same performers or under the 
        auspices of the same organization[.]; and
          (10) notwithstanding paragraph [4 above] (4), the 
        following is not an infringement of copyright: 
        performance of a nondramatic literary or musical work 
        in the course of a social function which is organized 
        and promoted by a nonprofit veterans' organization or a 
        nonprofit fraternal organization to which the general 
        public is not invited, but not including the invitees 
        of the organizations, if the proceeds from the 
        performance, after deducting the reasonable costs of 
        producing the performance, are used exclusively for 
        charitable purposes and not for financial gain. For 
        purposes of this section the social functions of any 
        college or university fraternity or sorority shall not 
        be included unless the social function is held solely 
        to raise funds for a specific charitable purpose.
          * * * * * * *

Sec. 114. Scope of exclusive rights in sound recordings

  (a) * * *
          * * * * * * *
  (f) Licenses for Nonexempt Subscription Transmissions.--
          (1) No later than 30 days after the enactment of the 
        Digital Performance Right in Sound Recordings Act of 
        1995, the Librarian of Congress shall cause notice to 
        be published in the Federal Register of the initiation 
        of voluntary negotiation proceedings for the purpose of 
        determining reasonable terms and rates of royalty 
        payments for the activities specified by subsection 
        (d)(2) of this section during the period beginning on 
        the effective date of such Act and ending on December 
        31, 2000, or, if a copyright arbitration royalty panel 
        is convened, ending 30 days after the Librarian issues 
        and publishes in the Federal Register an order adopting 
        the determination of the copyright arbitration royalty 
        panel or an order setting the terms and rates (if the 
        Librarian rejects the panel's determination). Such 
        terms and rates shall distinguish among the different 
        types of digital audio transmission services then in 
        operation. Any copyright owners of sound recordings or 
        any entities performing sound recordings affected by 
        this section may submit to the Librarian of Congress 
        licenses covering such activities with respect to such 
        sound recordings. The parties to each negotiation 
        proceeding shall bear their own costs.
          (2) In the absence of license agreements negotiated 
        under paragraph (1), during the 60-day period 
        commencing 6 months after publication of the notice 
        specified in paragraph (1), and upon the filing of a 
        petition in accordance with section 803(a)(1), the 
        Librarian of Congress shall, pursuant to chapter 8, 
        convene a copyright arbitration royalty panel to 
        determine [and publish in the Federal Register] a 
        schedule of rates and terms which, subject to paragraph 
        (3), shall be binding on all copyright owners of sound 
        recordings and entities performing sound recordings. In 
        addition to the objectives set forth in section 
        801(b)(1), in establishing such rates and terms, the 
        copyright arbitration royalty panel may consider the 
        rates and terms for comparable types of digital audio 
        transmission services and comparable circumstances 
        under voluntary license agreements negotiated as 
        provided in paragraph (1). The Librarian of Congress 
        shall also establish requirements by which copyright 
        owners may receive reasonable notice of the use of 
        their sound recordings under this section, and under 
        which records of such use shall be kept and made 
        available by entities performing sound recordings.
          * * * * * * *

Sec. 115. Scope of exclusive rights in nondramatic musical works: 
                    Compulsory license for making and distributing 
                    phonorecords

  In the case of nondramatic musical works, the exclusive 
rights provided by clauses (1) and (3) of section 106, to make 
and to distribute phonorecords of such works, are subject to 
compulsory licensing under the conditions specified by this 
section.
  (a) * * *
          * * * * * * *
  (c) Royalty Payable Under Compulsory License.--
          (1) * * *
          * * * * * * *
          (3)(A) * * *
          * * * * * * *
          (D) In the absence of license agreements negotiated 
        under subparagraphs (B) and (C), upon the filing of a 
        petition in accordance with section 803(a)(1), the 
        Librarian of Congress shall, pursuant to chapter 8, 
        convene a copyright arbitration royalty panel to 
        determine [and publish in the Federal Register] a 
        schedule of rates and terms which, subject to 
        subparagraph (E), shall be binding on all copyright 
        owners of nondramatic musical works and persons 
        entitled to obtain a compulsory license under 
        subsection (a)(1) during the period beginning January 
        1, 1998, and ending on the effective date of any new 
        terms and rates established pursuant to subparagraph 
        (C), (D) or (F), or such other date (regarding digital 
        phonorecord deliveries) as may be determined pursuant 
        to subparagraphs (B) and (C). Such terms and rates 
        shall distinguish between (i) digital phonorecord 
        deliveries where the reproduction or distribution of a 
        phonorecord is incidental to the transmission which 
        constitutes the digital phonorecord delivery, and (ii) 
        digital phonorecord deliveries in general. In addition 
        to the objectives set forth in section 801(b)(1), in 
        establishing such rates and terms, the copyright 
        arbitration royalty panel may consider rates and terms 
        under voluntary license agreements negotiated as 
        provided in subparagraphs (B) and (C). The royalty 
        rates payable for a compulsory license for a digital 
        phonorecord delivery under this section shall be 
        established de novo and no precedential effect shall be 
        given to the amount of the royalty payable by a 
        compulsory licensee for digital phonorecord deliveries 
        on or before December 31, 1997. The Librarian of 
        Congress shall also establish requirements by which 
        copyright owners may receive reasonable notice of the 
        use of their works under this section, and under which 
        records of such use shall be kept and made available by 
        persons making digital phonorecord deliveries.
          (E)(i) License agreements voluntarily negotiated at 
        any time between one or more copyright owners of 
        nondramatic musical works and one or more persons 
        entitled to obtain a compulsory license under 
        subsection (a)(1) shall be given effect in lieu of any 
        determination by the Librarian of Congress. Subject to 
        clause (ii), the royalty rates determined pursuant to 
        subparagraph (C), (D) or (F) shall be given effect in 
        lieu of any contrary royalty rates specified in a 
        contract pursuant to which a recording artist who is 
        the author of a nondramatic musical work grants a 
        license under that person's exclusive rights in the 
        musical work under [sections 106(1) and (3)] paragraphs 
        (1) and (3) of section 106 or commits another person to 
        grant a license in that musical work under [sections 
        106(1) and (3)] paragraphs (1) and (3) of section 106, 
        to a person desiring to fix in a tangible medium of 
        expression a sound recording embodying the musical 
        work.
          (ii) The second sentence of clause (i) shall not 
        apply to--
                  (I) * * *
                  (II) a contract entered into after the date 
                that the sound recording is fixed in a tangible 
                medium of expression substantially in a form 
                intended for commercial release, if at the time 
                the contract is entered into, the recording 
                artist retains the right to grant licenses as 
                to the musical work under [sections 106(1) and 
                106(3)] paragraphs (1) and (3) of section 106.
          * * * * * * *

Sec. 116. Negotiated licenses for public performances by means of coin-
                    operated phonorecord players

  (a) * * *
          * * * * * * *
  (b) Negotiated Licenses.--
          (1) * * *
          [(2) Arbitration.--Parties to such a negotiation, 
        within such time as may be specified by the Librarian 
        of Congress by regulation, may determine the result of 
        the negotiation by arbitration. Such arbitration shall 
        be governed by the provisions of title 9, to the extent 
        such title is not inconsistent with this section. The 
        parties shall give notice to the Librarian of Congress 
        of any determination reached by arbitration and any 
        such determination shall, as between the parties to the 
        arbitration, be dispositive of the issues to which it 
        relates.]
          (2) Arbitration.--Parties not subject to such a 
        negotiation may determine, by arbitration in accordance 
        with the provisions of chapter 8, the terms and rates 
        and the division of fees described in paragraph (1).
          * * * * * * *
  (d) Definitions.--As used in this section, the following 
terms mean the following:
          (1) A ``coin-operated phonorecord player'' is a 
        machine or device that--
                  (A) is employed solely for the performance of 
                nondramatic musical works by means of 
                phonorecords upon being activated by the 
                insertion of coins, currency, tokens, or other 
                monetary units or their equivalent;
                  (B) is located in an establishment making no 
                direct or indirect charge for admission;
                  (C) is accompanied by a list which is 
                comprised of the titles of all the musical 
                works available for performance on it, and is 
                affixed to the phonorecord player or posted in 
                the establishment in a prominent position where 
                it can be readily examined by the public; and
                  (D) affords a choice of works available for 
                performance and permits the choice to be made 
                by the patrons of the establishment in which it 
                is located.
          (2) An ``operator'' is any person who, alone or 
        jointly with others--
                  (A) owns a coin-operated phonorecord player;
                  (B) has the power to make a coin-operated 
                phonorecord player available for placement in 
                an establishment for purposes of public 
                performance; or
                  (C) has the power to exercise primary control 
                over the selection of the musical works made 
                available for public performance on a coin-
                operated phonorecord player.
          * * * * * * *

Sec. 119. Limitations on exclusive rights: Secondary transmissions of 
                    superstations and network stations for private home 
                    viewing

  (a) * * *
          * * * * * * *
  (c) Adjustment of Royalty Fees.--
          (1) Applicability and determination of royalty 
        fees.--The rate of the royalty fee payable under 
        subsection (b)(1)(B) shall be effective [until] unless 
        a royalty fee is established under paragraph (2), (3), 
        or (4) of this subsection. After that date, the fee 
        shall be determined either in accordance with the 
        voluntary negotiation procedure specified in paragraph 
        (2) or in accordance with the compulsory arbitration 
        procedure specified in paragraphs (3) and (4).
          * * * * * * *

                    CHAPTER 3--DURATION OF COPYRIGHT

          * * * * * * *

Sec. 304. Duration of copyright: Subsisting copyrights

  (a) * * *
          * * * * * * *
  (c) Termination of Transfers and Licenses Covering Extended 
Renewal Term.--In the case of any copyright subsisting in 
either its first or renewal term on January 1, 1978, other than 
a copyright in a work made for hire, the exclusive or 
nonexclusive grant of a transfer or license of the renewal 
copyright or any right under it, executed before January 1, 
1978, by any of the persons designated by [the] subsection 
(a)(1)(C) of this section, otherwise than by will, is subject 
to termination under the following conditions:
          (1) * * *
          * * * * * * *

         CHAPTER 4--COPYRIGHT NOTICE, DEPOSIT, AND REGISTRATION

          * * * * * * *

Sec. 405. Notice of copyright: Omission of notice on certain copies and 
                    phonorecords

  (a) * * *
  (b) Effect of Omission on Innocent Infringers.--Any person 
who innocently infringes a copyright, in reliance upon an 
authorized copy or phonorecord from which the copyright notice 
has been omitted and which was publicly distributed by 
authority of the copyright owner before the effective date of 
the Berne Convention Implementation Act of 1988, incurs no 
liability for actual or statutory damages under section 504 for 
any infringing acts committed before receiving actual notice 
that registration for the work has been made under section 408, 
if such person proves that he or she was misled by the omission 
of notice. In a suit for infringement in such a case the court 
may allow or disallow recovery of any of the infringer's 
profits attributable to the infringement, and may enjoin the 
continuation of the infringing undertaking or may require, as a 
condition [or] for permitting the continuation of the 
infringing undertaking, that the infringer pay the copyright 
owner a reasonable license fee in an amount and on terms fixed 
by the court.
          * * * * * * *

Sec. 407. Deposit of copies or phonorecords for Library of Congress

  (a) * * *
          * * * * * * *
  (d) At any time after publication of a work as provided by 
subsection (a), the Register of Copyrights may make written 
demand for the required deposit on any of the persons obligated 
to make the deposit under subsection (a). Unless deposit is 
made within three months after the demand is received, the 
person or persons on whom the demand was made are liable--
          (1) to a fine of not more than $250 for each work; 
        and
          (2) to pay into a specially designated fund in the 
        Library of Congress the total retail price of the 
        copies or phonorecords demanded, or, if no retail price 
        has been fixed, the reasonable cost [of] to the Library 
        of Congress of acquiring them; and
          * * * * * * *

Sec. 411. Registration and infringement actions

  (a) * * *
  (b) In the case of a work consisting of sounds, images, or 
both, the first fixation of which is made simultaneously with 
its transmission, the copyright owner may, either before or 
after such fixation takes place, institute an action for 
infringement under section 501, fully subject to the remedies 
provided by sections 502 through 506 and sections 509 and 510, 
if, in accordance with requirements that the Register of 
Copyrights shall prescribe by regulation, the copyright owner--
          [(1) serves notice upon the infringer, not less than 
        ten or more than thirty days before such fixation, 
        identifying the work and the specific time and source 
        of its first transmission, and declaring an intention 
        to secure copyright in the work; and]
          (1) serves notice upon the infringer, not less than 
        48 hours before such fixation, identifying the work and 
        the specific time and source of its first transmission, 
        and declaring an intention to secure copyright in the 
        work; and
          * * * * * * *

             CHAPTER 5--COPYRIGHT INFRINGEMENT AND REMEDIES

Sec.
501. Infringement of copyright.
     * * * * * * *
504. Remedies for infringement: [Damage] Damages and profits.
     * * * * * * *

Sec. 504. Remedies for infringement: Damages and profits

  (a) * * *
          * * * * * * *
  (c) Statutory Damages.--
          (1) * * *
          (2) In a case where the copyright owner sustains the 
        burden of proving, and the court finds, that 
        infringement was committed willfully, the court in its 
        discretion may increase the award of statutory damages 
        to a sum of not more than $100,000. In a case where the 
        infringer sustains the burden of proving, and the court 
        finds, that such infringer was not aware and had no 
        reason to believe that his or her acts constituted an 
        infringement of copyright, the court [it] in its 
        discretion may reduce the award of statutory damages to 
        a sum of not less than $200. The court shall remit 
        statutory damages in any case where an infringer 
        believed and had reasonable grounds for believing that 
        his or her use of the copyrighted work was a fair use 
        under section 107, if the infringer was: (i) an 
        employee or agent of a nonprofit educational 
        institution, library, or archives acting within the 
        scope of his or her employment who, or such 
        institution, library, or archives itself, which 
        infringed by reproducing the work in copies or 
        phonorecords; or (ii) a public broadcasting entity 
        which or a person who, as a regular part of the 
        nonprofit activities of a public broadcasting entity 
        (as defined in subsection (g) of section 118) infringed 
        by performing a published nondramatic literary work or 
        by reproducing a transmission program embodying a 
        performance of such a work.
          * * * * * * *

Sec. 509. Seizure and forfeiture

  (a) * * *
  (b) The applicable procedures relating to (i) the seizure, 
summary and judicial forfeiture, and condemnation of vessels, 
vehicles, merchandise, and baggage for violations of the 
customs laws contained in title 19, (ii) the disposition of 
such vessels, vehicles, merchandise, and baggage or the 
proceeds from the sale thereof, (iii) the remission or 
mitigation of such forfeiture, (iv) the compromise of claims, 
and (v) the award of compensation to informers in respect of 
such forfeitures, shall apply to seizures and forfeitures 
incurred, or alleged to have been incurred, under the 
provisions of this section, insofar as applicable and not 
inconsistent with the provisions of this section; except that 
such duties as are imposed upon any officer or employee of the 
Treasury Department or any other person with respect to the 
seizure and forfeiture of vessels, vehicles, [merchandise; and 
baggage] merchandise, and baggage under the provisions of the 
customs laws contained in title 19 shall be performed with 
respect to seizure and forfeiture of all articles described in 
subsection (a) by such officers, agents, or other persons as 
may be authorized or designated for that purpose by the 
Attorney General.
          * * * * * * *

         CHAPTER 6--MANUFACTURING REQUIREMENTS AND IMPORTATION

          * * * * * * *

Sec. 601. Manufacture, importation, and public distribution of certain 
                    copies

  (a) Prior to July 1, 1986, and except as provided by 
subsection (b), the importation into or public distribution in 
the United States of copies of a work consisting preponderantly 
of [nondramtic] nondramatic literary material that is in the 
English language and is protected under this title is 
prohibited unless the portions consisting of such material have 
been manufactured in the United States or Canada.
  (b) The provisions of subsection (a) do not apply--
          (1) where, on the date when importation is sought or 
        public distribution in the United States is made, the 
        author of any substantial part of such material is 
        neither a national nor a domiciliary of the United 
        States or, if such author is a national of the United 
        States, he or she has been domiciled outside the United 
        States for a continuous period of at least one year 
        immediately preceding that date; in the case of a work 
        made for hire, the exemption provided by this clause 
        does not apply unless a [subsustantial] substantial 
        part of the work was prepared for an employer or other 
        person who is not a national or domiciliary of the 
        United States or a domestic corporation or enterprise;
          * * * * * * *

                      CHAPTER 7--COPYRIGHT OFFICE

Sec.
701. The Copyright Office: General responsibilities and organization.
     * * * * * * *
710. [Reproductions] Reproduction for use of the blind and physically 
          handicapped: Voluntary licensing forms and procedures.
          * * * * * * *

Sec. 708. Copyright Office fees

  (a) * * *
  [(b) In calendar year 1995 and in each subsequent fifth 
calendar year, the Register of Copyrights, by regulation, may 
increase the fees specified in subsection (a) by the percent 
change in the annual average, for the preceding calendar year, 
of the Consumer Price Index published by the Bureau of Labor 
Statistics, over the annual average of the Consumer Price Index 
for the fifth calendar year preceding the calendar year in 
which such increase is authorized.]
  (b) In calendar year 1997 and in any subsequent calendar 
year, the Register of Copyrights, by regulation, may increase 
the fees specified in subsection (a) in the following manner:
          (1) The Register shall conduct a study of the costs 
        incurred by the Copyright Office for the registration 
        of claims, the recordation of documents, and the 
        provision of services. The study shall also consider 
        the timing of any increase in fees and the authority to 
        use such fees consistent with the budget.
          (2) The Register may, on the basis of the study under 
        paragraph (1), and subject to paragraph (5), increase 
        fees to not more than that necessary to cover the 
        reasonable costs incurred by the Copyright Office for 
        the services described in paragraph (1), plus a 
        reasonable inflation adjustment to account for any 
        estimated increase in costs.
          (3) Any fee established under paragraph (2) shall be 
        rounded off to the nearest dollar, or for a fee less 
        than $12, rounded off to the nearest 50 cents.
          (4) Fees established under this subsection shall be 
        fair and equitable and give due consideration to the 
        objectives of the copyright system.
          (5) If the Register determines under paragraph (2) 
        that fees should be increased, the Register shall 
        prepare a proposed fee schedule and submit the schedule 
        with the accompanying economic analysis to the 
        Congress. The fees proposed by the Register may be 
        instituted after the end of 120 days after the schedule 
        is submitted to the Congress unless, within that 120-
        day period, a law is enacted stating in substance that 
        the Congress does not approve the schedule.
          * * * * * * *
  [(d) All fees received under this section shall be deposited 
by the Register of Copyrights in the Treasury of the United 
States and shall be credited to the appropriation for necessary 
expenses of the Copyright Office. The Register may, in 
accordance with regulations that he or she shall prescribe, 
refund any sum paid by mistake or in excess of the fee required 
by this section.]
  (d)(1) Except as provided in paragraph (2), all fees received 
under this section shall be deposited by the Register of 
Copyrights in the Treasury of the United States and shall be 
credited to the appropriations for necessary expenses of the 
Copyright Office. Such fees that are collected shall remain 
available until expended. The Register may, in accordance with 
regulations that he or she shall prescribe, refund any sum paid 
by mistake or in excess of the fee required by this section.
  (2) In the case of fees deposited against future services, 
the Register of Copyrights shall request the Secretary of the 
Treasury to invest in interest-bearing securities in the United 
States Treasury any portion of the fees that, as determined by 
the Register, is not required to meet current deposit account 
demands. Funds from such portion of fees shall be invested in 
securities that permit funds to be available to the Copyright 
Office at all times if they are determined to be necessary to 
meet current deposit account demands. Such investments shall be 
in public debt securities with maturities suitable to the needs 
of the Copyright Office, as determined by the Register of 
Copyrights, and bearing interest at rates determined by the 
Secretary of the Treasury, taking into consideration current 
market yields on outstanding marketable obligations of the 
United States of comparable maturities.
  (3) The income on such investments shall be deposited in the 
Treasury of the United States and shall be credited to the 
appropriations for necessary expenses of the Copyright Office.
          * * * * * * *

            CHAPTER 8--COPYRIGHT ARBITRATION ROYALTY PANELS

Sec.
801. Copyright arbitration royalty panels: [establishment] Establishment 
          and purpose.
     * * * * * * *

Sec. 801. Copyright arbitration royalty panels: Establishment and 
                    purpose

  (a) * * *
  (b) Purposes.--Subject to the provisions of this chapter, the 
purposes of the copyright arbitration royalty panels [shall 
be--] shall be as follows:
          (1) [to] To make determinations concerning the 
        adjustment of reasonable copyright royalty rates as 
        provided in sections 114, 115, [and 116] 116, and 119, 
        and to make determinations as to reasonable terms and 
        rates of royalty payments as provided in section 118. 
        The rates applicable under sections 114, 115, and 116 
        shall be calculated to achieve the following 
        objectives:
                  (A) * * *
          * * * * * * *
          (2) [to] To make determinations concerning the 
        adjustment of the copyright royalty rates in section 
        111 solely in accordance with the following provisions:
                  (A) * * *
          * * * * * * *
                  (D) The gross receipts limitations 
                established by section 111(d)(1)(C) and (D) 
                shall be adjusted to reflect national monetary 
                inflation or deflation or changes in the 
                average rates charged cable system subscribers 
                for the basic service of providing secondary 
                transmissions to maintain the real constant 
                dollar value of the exemption provided by such 
                section; and the royalty rate specified therein 
                shall not be subject to adjustment[; and].
          (3) [to] To distribute royalty fees deposited with 
        the Register of Copyrights under sections 111, 116, 
        119(b), and 1003, and to determine, in cases where 
        controversy exists, the distribution of such fees.
  (c) Rulings.--The Librarian of Congress, upon the 
recommendation of the Register of Copyrights, may, before a 
copyright arbitration royalty panel is convened, make any 
necessary procedural or evidentiary rulings that would apply to 
the proceedings conducted by such panel, including--
          (1) authorizing the distribution of those royalty 
        fees collected under sections 111, 119, and 1005 that 
        the Librarian has found are not subject to controversy; 
        and
          (2) accepting or rejecting royalty claims filed under 
        sections 111, 119, and 1007 on the basis of timeliness 
        or the failure to establish the basis for a claim.
  [(d) Administrative Support of Copyright Arbitration Royalty 
Panels.--The Library of Congress, upon the recommendation of 
the Register of Copyrights, shall provide the copyright 
arbitration royalty panels with the necessary administrative 
services related to proceedings under this chapter.]
  (d) Support and Reimbursement of Arbitration Panels.--The 
Librarian of Congress, upon the recommendation of the Register 
of Copyrights, shall provide the copyright arbitration royalty 
panels with the necessary administrative services related to 
proceedings under this chapter, and shall reimburse the 
arbitrators presiding in distribution proceedings at such 
intervals and in such manner as the Librarian shall provide by 
regulation. Each such arbitrator is an independent contractor 
acting on behalf of the United States, and shall be hired 
pursuant to a signed agreement between the Library of Congress 
and the arbitrator. Payments to the arbitrators shall be 
considered reasonable costs incurred by the Library of Congress 
and the Copyright Office for purposes of section 802(h)(1).
          * * * * * * *

Sec. 802. Membership and proceedings of copyright arbitration royalty 
                    panels

  (a) * * *
          * * * * * * *
  (c) Arbitration Proceedings.--Copyright arbitration royalty 
panels shall conduct arbitration proceedings, subject to 
subchapter II of chapter 5 of title 5, for the purpose of 
making their determinations in carrying out the purposes set 
forth in section 801. The arbitration panels shall act on the 
basis of a fully documented written record, prior decisions of 
the Copyright Royalty Tribunal, prior copyright arbitration 
panel determinations, and rulings by the Librarian of Congress 
under section 801(c). Any copyright owner who claims to be 
entitled to royalties under section 111, 114, 116, or 119, any 
person entitled to a compulsory license under section 114(d), 
any person entitled to a compulsory license under section 115, 
or any interested copyright party who claims to be entitled to 
royalties under section 1006, may submit relevant information 
and proposals to the arbitration panels in proceedings 
applicable to such copyright owner or interested copyright 
party, and any other person participating in arbitration 
proceedings may submit such relevant information and proposals 
to the arbitration panel conducting the proceedings. In 
ratemaking proceedings, the parties to the proceedings shall 
bear the entire cost thereof in such manner and proportion as 
the arbitration panels shall direct. [In distribution 
proceedings, the parties shall bear the cost in direct 
proportion to their share of the distribution.]
          * * * * * * *
  (h) Administrative Matters.--
          [(1) Deduction of costs from royalty fees.--The 
        Librarian of Congress and the Register of Copyrights 
        may, to the extent not otherwise provided under this 
        title, deduct from royalty fees deposited or collected 
        under this title the reasonable costs incurred by the 
        Library of Congress and the Copyright Office under this 
        chapter. Such deduction may be made before the fees are 
        distributed to any copyright claimants. If no royalty 
        pool exists from which their costs can be deducted, the 
        Librarian of Congress and the Copyright Office may 
        assess their reasonable costs directly to the parties 
        to the most recent relevant arbitration proceeding.]
          (1) Deduction of costs of library of congress and 
        copyright office from royalty fees.--The Librarian of 
        Congress and the Register of Copyrights may, to the 
        extent not otherwise provided under this title, deduct 
        from royalty fees deposited or collected under this 
        title the reasonable costs incurred by the Library of 
        Congress and the Copyright Office under this chapter. 
        Such deduction may be made before the fees are 
        distributed to any copyright claimants. In addition, 
        all funds made available by an appropriations Act as 
        offsetting collections and available for deductions 
        under this subsection shall remain available until 
        expended. In ratemaking proceedings, the reasonable 
        costs of the Librarian of Congress and the Copyright 
        Office shall be borne by the parties to the proceedings 
        as directed by the arbitration panels under subsection 
        (c).
          * * * * * * *

Sec. 803. Institution and conclusion of proceedings

  (a) * * *
  (b) With respect to proceedings under subparagraph (B) or (C) 
of section 801(b)(2), following an event described in either of 
those subsections, any owner or user of a copyrighted work 
whose royalty rates are specified by section 111, or by a rate 
established by the Copyright Royalty Tribunal or the Librarian 
of Congress, may, within twelve months, file a petition with 
the Librarian declaring that the petitioner requests an 
adjustment of the rate. In this event the Librarian shall 
proceed as in [subsection] subsection (a) of this section. Any 
change in royalty rates made by the Copyright Royalty Tribunal 
or the Librarian of Congress pursuant to this subsection may be 
reconsidered in 1980, 1985, and each fifth calendar year 
thereafter, in accordance with the provisions in section 
801(b)(2)(B) or (C), as the case may be.
          * * * * * * *

          CHAPTER 9--PROTECTION OF SEMICONDUCTOR CHIP PRODUCTS

Sec.
901. Definitions.
     * * * * * * *
[903. Ownership and transfer.]
903. Ownership, transfer, licensure, and recordation.
     * * * * * * *

Sec. 909. Mask work notice

  (a) * * *
  (b) The notice referred to in subsection (a) shall consist 
of--
          (1) the words ``mask [force] work'', the [sumbol] 
        symbol, or the symbol M (the letter M in a circle); and
          * * * * * * *

Sec. 910. Enforcement of exclusive rights

  (a) Except as otherwise provided in this chapter, any person 
who violates any of the exclusive rights of the owner of a mask 
work under this chapter, by conduct in or affecting commerce, 
shall be liable as an infringer of such rights. [as] As used in 
this subsection, the term ``any person'' includes any State, 
any instrumentality of a State, and any officer or employee of 
a State or instrumentality of a State acting in his or her 
official capacity. Any State, and any such instrumentality, 
officer, or employee, shall be subject to the provisions of 
this chapter in the same manner and to the same extent as any 
nongovernmental entity.
          * * * * * * *

         CHAPTER 10--DIGITAL AUDIO RECORDING DEVICES AND MEDIA

          * * * * * * *

                     SUBCHAPTER C--ROYALTY PAYMENTS

          * * * * * * *

Sec. 1006. Entitlement to royalty payments

  (a) * * *
  (b) Allocation of Royalty Payments to Groups.--The royalty 
payments shall be divided into 2 funds as follows:
          (1) The sound recordings fund.--66 \2/3\ percent of 
        the royalty payments shall be allocated to the Sound 
        Recordings Fund. 2 \5/8\ percent of the royalty 
        payments allocated to the Sound Recordings Fund shall 
        be placed in an escrow account managed by an 
        independent administrator jointly appointed by the 
        interested copyright parties described in section 
        1001(7)(A) and the American Federation of Musicians (or 
        any successor entity) to be distributed to nonfeatured 
        musicians (whether or not members of the American 
        Federation of Musicians or any successor entity) who 
        have performed on sound recordings distributed in the 
        United States. 1 \3/8\ percent of the royalty payments 
        allocated to the Sound Recordings Fund shall be placed 
        in an escrow account managed by an independent 
        administrator jointly appointed by the interested 
        copyright parties described in section 1001(7)(A) and 
        the American Federation of Television and Radio Artists 
        (or any successor entity) to be distributed to 
        nonfeatured vocalists (whether or not members of the 
        American Federation of Television and Radio Artists or 
        any successor entity) who have performed on sound 
        recordings distributed in the United States. 40 percent 
        of the remaining royalty payments in the Sound 
        Recordings Fund shall be distributed to the interested 
        copyright parties described in section 1001(7)(C), and 
        60 percent of such remaining royalty payments shall be 
        distributed to the interested copyright parties 
        described in section 1001(7)(A).
          * * * * * * *

Sec. 1007. Procedures for distributing royalty payments

  (a) Filing of Claims and Negotiations.--
          (1) Filing of claims.--During the first 2 months of 
        each calendar year after [the calendar year in which 
        this chapter takes effect] calendar year 1992, every 
        interested copyright party seeking to receive royalty 
        payments to which such party is entitled under section 
        1006 shall file with the Librarian of Congress a claim 
        for payments collected during the preceding year in 
        such form and manner as the Librarian of Congress shall 
        prescribe by regulation.
          * * * * * * *
  (b) Distribution of Payments in the Absence of a Dispute.--
[Within 30 days after] After the period established for the 
filing of claims under subsection (a), in each year after [the 
year in which this section takes effect] 1992, the Librarian of 
Congress shall determine whether there exists a controversy 
concerning the distribution of royalty payments under section 
1006(c). If the Librarian of Congress determines that no such 
controversy exists, the Librarian of Congress shall, within 30 
days after such determination, authorize the distribution of 
the royalty payments as set forth in the agreements regarding 
the distribution of royalty payments entered into pursuant to 
subsection (a), after deducting its reasonable administrative 
costs under this section.
          * * * * * * *
                              ----------                              

 SECTION 4 OF THE DIGITAL PERFORMANCE RIGHT IN SOUND RECORDINGS ACT OF 
                                  1995

SEC. 4. MECHANICAL ROYALTIES IN DIGITAL PHONORECORD DELIVERIES.

  Section 115 of title 17, United States Code, is amended--
          (1) * * *
          * * * * * * *
          [(5)] (4) by adding after subsection (c) the 
        following:
  ``(d) Definition.--As used in this section, the following 
term has the following meaning: A `digital phonorecord 
delivery' is each individual delivery of a phonorecord by 
digital transmission of a sound recording which results in a 
specifically identifiable reproduction by or for any 
transmission recipient of a phonorecord of that sound 
recording, regardless of whether the digital transmission is 
also a public performance of the sound recording or any 
nondramatic musical work embodied therein. A digital 
phonorecord delivery does not result from a real-time, non-
interactive subscription transmission of a sound recording 
where no reproduction of the sound recording or the musical 
work embodied therein is made from the inception of the 
transmission through to its receipt by the transmission 
recipient in order to make the sound recording audible.''.
                              ----------                              

                        ACT OF NOVEMBER 9, 1987

 AN ACT To amend chapter 9 of title 17, United States Code, regarding 
protection extended to semiconductor chip products of foreign entities.

SECTION 1. FINDINGS AND PURPOSES.

  (a) Findings.--The Congress finds that--
          (1) section 914 of title 17, United States Code, 
        which authorizes the Secretary of Commerce to issue 
        orders extending interim protection under chapter 9 of 
        title 17, United States Code, to mask works fixed in 
        semiconductor chip products and [orginating] 
        originating in foreign countries that are making good 
        faith efforts and reasonable progress toward providing 
        protection, by treaty or legislation, to mask works of 
        United States nationals, has resulted in substantial 
        and positive legislative developments in foreign 
        countries regarding protection of mask works;
          * * * * * * *
                              ----------                              

              SECTION 2319 OF TITLE 18, UNITED STATES CODE

Sec. 2319. Criminal infringement of a copyright

  (a) * * *
  (b) Any person who commits an offense under subsection (a) of 
this section--
          (1) shall be imprisoned not more than 5 years, or 
        fined in the amount set forth in this title, or both, 
        if the offense consists of the reproduction or 
        distribution, during any 180-day period, of at [last] 
        least 10 copies or phonorecords, of 1 or more 
        copyrighted works, with a retail value of more than 
        $2,500;
          * * * * * * *

                                
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