PUBLIC LAW 109–303—OCT. 6, 2006

COPYRIGHT ROYALTY JUDGES PROGRAM

TECHNICAL CORRECTIONS ACT

120 STAT. 1478 PUBLIC LAW 109–303—OCT. 6, 2006

Public Law 109–303

109th Congress

An Act

To amend title 17, United States Code, to make technical corrections relating

to Copyright Royalty Judges, and for other purposes.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘‘Copyright Royalty Judges Program Technical Corrections Act’’.

SEC. 2. REFERENCE.

Any reference in this Act to a provision of title 17, United

States Code, refers to such provision as amended by the Copyright

Royalty and Distribution Reform Act of 2004 (Public Law 108–

419) and the Satellite Home Viewer Extension and Reauthorization

Act of 2004 (title IX of division J of Public Law 108–447).

SEC. 3. AMENDMENTS TO CHAPTER 8 OF TITLE 17, UNITED STATES

CODE.

Chapter 8 of title 17, United States Code, is amended as follows:

(1) Section 801(b)(1) is amended, in the matter preceding

subparagraph (A), by striking ‘‘119 and 1004’’ and inserting

‘‘119, and 1004’’.

(2) Section 801 is amended by adding at the end the following:

‘‘(f) EFFECTIVE DATE OF ACTIONS.—On and after the date of

the enactment of the Copyright Royalty and Distribution Reform

Act of 2004, in any case in which time limits are prescribed under

this title for performance of an action with or by the Copyright

Royalty Judges, and in which the last day of the prescribed period

falls on a Saturday, Sunday, holiday, or other nonbusiness day

within the District of Columbia or the Federal Government, the

action may be taken on the next succeeding business day, and

is effective as of the date when the period expired.’’.

(3) Section 802(f)(1)(A) is amended—

(A) in clause (i), by striking ‘‘clause (ii) of this subparagraph and subparagraph (B)’’ and inserting ‘‘subparagraph

(B) and clause (ii) of this subparagraph’’; and

(B) by striking clause (ii) and inserting the following:

‘‘(ii) One or more Copyright Royalty Judges may, or

by motion to the Copyright Royalty Judges, any participant

in a proceeding may, request from the Register of Copyrights an interpretation of any material questions of substantive law that relate to the construction of provisions

of this title and arise in the course of the proceeding.

17 USC 101 note.

Copyright

Royalty Judges

Program

Technical

Corrections Act.

Oct. 6, 2006

[H.R. 1036]

PUBLIC LAW 109–303—OCT. 6, 2006 120 STAT. 1479

Any request for a written interpretation shall be in writing

and on the record, and reasonable provision shall be made

to permit participants in the proceeding to comment on

the material questions of substantive law in a manner

that minimizes duplication and delay. Except as provided

in subparagraph (B), the Register of Copyrights shall

deliver to the Copyright Royalty Judges a written response

within 14 days after the receipt of all briefs and comments

from the participants. The Copyright Royalty Judges shall

apply the legal interpretation embodied in the response

of the Register of Copyrights if it is timely delivered, and

the response shall be included in the record that accompanies the final determination. The authority under this

clause shall not be construed to authorize the Register

of Copyrights to provide an interpretation of questions

of procedure before the Copyright Royalty Judges, the ultimate adjustments and determinations of copyright royalty

rates and terms, the ultimate distribution of copyright

royalties, or the acceptance or rejection of royalty claims,

rate adjustment petitions, or petitions to participate in

a proceeding.’’.

(4) Section 802(f)(1)(D) is amended by inserting a comma

after ‘‘undertakes to consult with’’.

(5) Section 803(a)(1) is amended—

(A) by striking ‘‘The Copyright’’ and inserting ‘‘The

Copyright Royalty Judges shall act in accordance with this

title, and to the extent not inconsistent with this title,

in accordance with subchapter II of chapter 5 of title 5,

in carrying out the purposes set forth in section 801. The

Copyright’’; and

(B) by inserting after ‘‘Congress, the Register of Copyrights,’’ the following: ‘‘copyright arbitration royalty panels

(to the extent those determinations are not inconsistent

with a decision of the Librarian of Congress or the Register

of Copyrights),’’.

(6) Section 803(b) is amended—

(A) in paragraph (1)(A)(i)(V)—

(i) by striking ‘‘in the case of’’ and inserting ‘‘the

publication of notice requirement shall not apply in

the case of’’; and

(ii) by striking ‘‘, such notice may not be published.’’;

(B) in paragraph (2)—

(i) in subparagraph (A), by striking ‘‘, together

with a filing fee of $150’’;

(ii) in subparagraph (B), by striking ‘‘and’’ after

the semicolon;

(iii) in subparagraph (C), by striking the period

and inserting ‘‘; and’’; and

(iv) by adding at the end the following:

‘‘(D) the petition to participate is accompanied by

either—

‘‘(i) in a proceeding to determine royalty rates,

a filing fee of $150; or

‘‘(ii) in a proceeding to determine distribution of

royalty fees—

‘‘(I) a filing fee of $150; or

Deadline.

120 STAT. 1480 PUBLIC LAW 109–303—OCT. 6, 2006

‘‘(II) a statement that the petitioner (individually or as a group) will not seek a distribution

of more than $1000, in which case the amount

distributed to the petitioner shall not exceed

$1000.’’;

(C) in paragraph (3)(A)—

(i) by striking ‘‘(A) IN GENERAL.—Promptly’’ and

inserting ‘‘(A) COMMENCEMENT OF PROCEEDINGS.— ‘‘(i) RATE ADJUSTMENT PROCEEDING.—Promptly’’;

and

(ii) by adding at the end the following:

‘‘(ii) DISTRIBUTION PROCEEDING.—Promptly after

the date for filing of petitions to participate in a proceeding to determine the distribution of royalties, the

Copyright Royalty Judges shall make available to all

participants in the proceeding a list of such participants. The initiation of a voluntary negotiation period

among the participants shall be set at a time determined by the Copyright Royalty Judges.’’.

(D) in paragraph (4)(A), by striking the last sentence;

and

(E) in paragraph (6)(C)—

(i) in clause (i)—

(I) in the first sentence, by inserting ‘‘and written rebuttal statements’’ after ‘‘written direct

statements’’;

(II) in the first sentence, by striking ‘‘which

may’’ and inserting ‘‘which, in the case of written

direct statements, may’’; and

(III) by striking ‘‘clause (iii)’’ and inserting

‘‘clause (iv)’’;

(ii) by amending clause (ii)(I) to read as follows:

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

Royalty Judges of written direct statements and written rebuttal statements by the participants in a proceeding under paragraph (2), the Copyright Royalty

Judges, after taking into consideration the views of

the participants in the proceeding, shall determine a

schedule for conducting and completing discovery.’’;

(iii) by amending clause (iv) to read as follows:

‘‘(iv) Discovery in connection with written direct

statements shall be permitted for a period of 60 days,

except for discovery ordered by the Copyright Royalty

Judges in connection with the resolution of motions,

orders, and disputes pending at the end of such period.

The Copyright Royalty Judges may order a discovery

schedule in connection with written rebuttal statements.’’; and

(iv) by amending clause (x) to read as follows:

‘‘(x) The Copyright Royalty Judges shall order a

settlement conference among the participants in the

proceeding to facilitate the presentation of offers of

settlement among the participants. The settlement conference shall be held during a 21-day period following

the 60-day discovery period specified in clause (iv)

and shall take place outside the presence of the Copyright Royalty Judges.’’.

PUBLIC LAW 109–303—OCT. 6, 2006 120 STAT. 1481

(7) Section 803(c)(2)(B) is amended by striking ‘‘concerning

rates and terms’’.

(8) Section 803(c)(4) is amended by striking ‘‘, with the

approval of the Register of Copyrights,’’.

(9) Section 803(c)(7) is amended by striking ‘‘of Copyright’’

and inserting ‘‘of the Copyright’’.

(10) Section 803(d)(2)(C)(i)(I) is amended by striking ‘‘statements of account and any report of use’’ and inserting

‘‘applicable statements of account and reports of use’’.

(11) Section 803(d)(3) is amended by striking ‘‘If the court,

pursuant to section 706 of title 5, modifies’’ and inserting ‘‘Section 706 of title 5 shall apply with respect to review by the

court of appeals under this subsection. If the court modifies’’.

(12) Section 804(b)(1)(B) is amended—

(A) by striking ‘‘801(b)(3)(B) or (C)’’ and inserting

‘‘801(b)(2)(B) or (C)’’; and

(B) in the last sentence, by striking ‘‘change is’’ and

inserting ‘‘change in’’.

(13) Section 804(b)(3) is amended—

(A) in subparagraph (A), by striking ‘‘effective date’’

and inserting ‘‘date of enactment’’; and

(B) in subparagraph (C)—

(i) in clause (ii), by striking ‘‘that is filed’’ and

inserting ‘‘is filed’’; and

(ii) in clause (iii), by striking ‘‘such subsections

(b)’’ and inserting ‘‘subsections (b)’’.

SEC. 4. ADDITIONAL TECHNICAL AMENDMENTS.

(a) DISTRIBUTION OF ROYALTY FEES.—Section 111(d) of title

17, United States Code, is amended—

(1) in the second sentence of paragraph (2), by striking

all that follows ‘‘Librarian of Congress’’ and inserting ‘‘upon

authorization by the Copyright Royalty Judges.’’;

(2) in paragraph (4)—

(A) in subparagraph (B)—

(i) by striking the second sentence and inserting

the following: ‘‘If the Copyright Royalty Judges determine that no such controversy exists, the Copyright

Royalty Judges shall authorize the Librarian of Congress to proceed to distribute such fees to the copyright

owners entitled to receive them, or to their designated

agents, subject to the deduction of reasonable administrative costs under this section.’’; and

(ii) in the last sentence, by striking ‘‘finds’’ and

inserting ‘‘find’’; and

(B) by striking subparagraph (C) and inserting the

following:

‘‘(C) During the pendency of any proceeding under

this subsection, the Copyright Royalty Judges shall have

the discretion to authorize the Librarian of Congress to

proceed to distribute any amounts that are not in controversy.’’.

(b) SOUND RECORDINGS.—Section 114(f) of title 17, United

States Code, is amended—

(1) in paragraph (1)(A), in the first sentence, by striking

‘‘except where’’ and all that follows through the end period

and inserting ‘‘except in the case of a different transitional

120 STAT. 1482 PUBLIC LAW 109–303—OCT. 6, 2006

period provided under section 6(b)(3) of the Copyright Royalty

and Distribution Reform Act of 2004, or such other period

as the parties may agree.’’;

(2) by amending paragraph (2)(A) to read as follows:

‘‘(2)(A) Proceedings under chapter 8 shall determine reasonable rates and terms of royalty payments for public performances of sound recordings by means of eligible nonsubscription

transmission services and new subscription services specified

by subsection (d)(2) during the 5-year period beginning on

January 1 of the second year following the year in which

the proceedings are to be commenced, except in the case of

a different transitional period provided under section 6(b)(3)

of the Copyright Royalty and Distribution Reform Act of 2004,

or such other period as the parties may agree. Such rates

and terms shall distinguish among the different types of eligible

nonsubscription transmission services and new subscription

services then in operation and shall include a minimum fee

for each such type of service. Any copyright owners of sound

recordings or any entities performing sound recordings affected

by this paragraph may submit to the Copyright Royalty Judges

licenses covering such eligible nonsubscription transmissions

and new subscription services with respect to such sound

recordings. The parties to each proceeding shall bear their

own costs.’’; and

(3) in paragraph (2)(B), in the last sentence, by striking

‘‘negotiated under’’ and inserting ‘‘described in’’.

(c) PHONORECORDS OF NONDRAMATIC MUSICAL WORKS.—Section

115(c)(3) of title 17, United States Code, is amended—

(1) in subparagraph (B), by striking ‘‘subparagraphs (B)

through (F)’’ and inserting ‘‘this subparagraph and subparagraphs (C) through (E)’’;

(2) in subparagraph (D), in the third sentence, by inserting

‘‘in subparagraphs (B) and (C)’’ after ‘‘described’’; and

(3) in subparagraph (E), in clauses (i) and (ii)(I), by striking

‘‘(C) or (D)’’ each place it appears and inserting ‘‘(C) and (D)’’.

(d) NONCOMMERCIAL BROADCASTING.—Section 118 of title 17,

United States Code, is amended—

(1) in subsection (b)(3), by striking ‘‘copyright owners in

works’’ and inserting ‘‘owners of copyright in works’’; and

(2) in subsection (c)—

(A) in the matter preceding paragraph (1), by striking

‘‘established by’’ and all that follows through ‘‘engage’’ and

inserting ‘‘established by the Copyright Royalty Judges

under subsection (b)(4), engage’’; and

(B) in paragraph (1), by striking ‘‘(g)’’ and inserting

‘‘(f)’’.

(e) SATELLITE CARRIERS.—Section 119 of title 17, United States

Code, is amended—

(1) in subsection (b)(4)—

(A) in subparagraph (B), by striking the second sentence and inserting the following: ‘‘If the Copyright Royalty

Judges determine that no such controversy exists, the

Copyright Royalty Judges shall authorize the Librarian

of Congress to proceed to distribute such fees to the copyright owners entitled to receive them, or to their designated

agents, subject to the deduction of reasonable administrative costs under this section.’’; and

PUBLIC LAW 109–303—OCT. 6, 2006 120 STAT. 1483

(B) by amending subparagraph (C) to read as follows:

‘‘(C) WITHHOLDING OF FEES DURING CONTROVERSY.—

During the pendency of any proceeding under this subsection, the Copyright Royalty Judges shall have the discretion to authorize the Librarian of Congress to proceed

to distribute any amounts that are not in controversy.’’;

and

(2) in subsection (c)(1)(F)(i), in the last sentence, by striking

‘‘arbitrary’’ and inserting ‘‘arbitration’’.

(f) DIGITAL AUDIO RECORDING DEVICES.—Section 1007 of title

17, United States Code, is amended—

(1) in subsection (b)—

(A) in the second sentence, by striking ‘‘Librarian of

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

(B) in the last sentence, by striking ‘‘by the Librarian’’;

and

(2) in subsection (c), in the last sentence, by striking ‘‘by

the Librarian’’.

(g) REMOVAL OF INCONSISTENT PROVISIONS.—The amendments

contained in subsection (h) of section 5 of the Copyright Royalty

and Distribution Reform Act of 2004 shall be deemed never to

have been enacted.

(h) EFFECTIVE DATE.—Section 6(b)(1) of the Copyright Royalty

and Distribution Reform Act of 2004 (Public Law 108–419) is

amended by striking ‘‘commenced before the date of enactment

of this Act’’ and inserting ‘‘commenced before the effective date

provided in subsection (a)’’.

SEC. 5. PARTIAL DISTRIBUTION OF ROYALTY FEES.

Section 801(b)(3)(C) of title 17, United States Code, is

amended—

(1) by striking all that precedes clause (i) and inserting

the following:

‘‘(C) Notwithstanding section 804(b)(8), the Copyright Royalty Judges, at any time after the filing of claims under section

111, 119, or 1007, may, upon motion of one or more of the

claimants and after publication in the Federal Register of a

request for responses to the motion from interested claimants,

make a partial distribution of such fees, if, based upon all

responses received during the 30-day period beginning on the

date of such publication, the Copyright Royalty Judges conclude

that no claimant entitled to receive such fees has stated a

reasonable objection to the partial distribution, and all such

claimants—’’; and

(2) in clause (i), by striking ‘‘such’’ and inserting ‘‘the’’.

SEC. 6. EFFECTIVE DATE.

(a) IN GENERAL.—Except as provided under subsection (b), this

Act and the amendments made by this Act shall be effective as

if included in the Copyright Royalty and Distribution Reform Act

of 2004.

17 USC 111 note.

17 USC 801 note.

17 USC 119 and

note.

120 STAT. 1484 PUBLIC LAW 109–303—OCT. 6, 2006

LEGISLATIVE HISTORY—H.R. 1036:

HOUSE REPORTS: No. 106–64 (Comm. on the Judiciary).

CONGRESSIONAL RECORD:

Vol. 151 (2005): Nov. 16, considered and passed House.

Vol. 152 (2006): July 19, considered and passed Senate, amended.

Sept. 25, House concurred in Senate amendment.

Æ

(b) PARTIAL DISTRIBUTION OF ROYALTY FEES.—Section 5 shall

take effect on the date of enactment of this Act.

Approved October 6, 2006.