I 

110TH CONGRESS 

1ST SESSION H. R. 2060 

To nullify the March 2, 2007, determination of the Copyright Royalty Judges 

with respect to webcasting, to modify the basis for making such a 

determination, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 26, 2007 

Mr. INSLEE introduced the following bill; which was referred to the Committee 

on the Judiciary, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in 

each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To nullify the March 2, 2007, determination of the Copyright 

Royalty Judges with respect to webcasting, to modify 

the basis for making such a determination, and for other 

purposes. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Internet Radio Equal5 ity Act’’. 


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1 SEC. 2. NULLIFICATION OF DECISION OF COPYRIGHT ROY2 ALTY JUDGES. 

3 The March 2, 2007, Determination of Rates and 

4 Terms of the United States Copyright Royalty Judges re5 garding rates and terms for the digital performance of 

6 sound recordings and ephemeral recordings, including that 

7 determination as modified by the April 17, 2007, Order 

8 Denying Motions for Rehearing and any subsequent modi9 fication to that determination by the Copyright Royalty 

10 Judges that is published in the Federal Register, is not 

11 effective, and shall be deemed never to have been effective. 

12 SEC. 3. COMPUTATION OF ROYALTY FEES FOR COMMER13 CIAL INTERNET RADIO SERVICES OFFERING 

14 DIGITAL PERFORMANCES OF SOUND RE15 CORDINGS. 

16 (a) STANDARD FOR DETERMINING RATES AND

17 TERMS.—Section 114(f)(2)(B) of title 17, United States 

18 Code, is amended by striking ‘‘Such rates and terms shall 

19 distinguish’’ and all that follows through the end of clause 

20 (ii) and inserting the following: ‘‘The Copyright Royalty 

21 Judges shall establish rates and terms in accordance with 

22 the objectives set forth in section 801(b)(1). Such rates 

23 and terms may include a minimum annual royalty of not 

24 more than $500 for each provider of services that are sub25 ject to such rates and terms, which shall be the only minVerDate Aug 31 2005 02:57 Apr 28, 2007 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2060.IH H2060

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1 imum royalty fee and shall be assessed only once annually 

2 to that provider.’’. 

3 (b) TRANSITION RULE.—Except for services covered 

4 by section 118 of title 17, United States Code, each pro5 vider of digital audio transmissions that otherwise would 

6 have been subject to the rates and terms of the determina7 tion of the Copyright Royalty Judges made ineffective by 

8 section 2 of this Act shall instead pay royalties for each 

9 year of the 5-year period beginning on January 1, 2006, 

10 at one of the following rates, as selected by the provider 

11 for that year: 

12 (1) 0.33 cents per hour of sound recordings 

13 transmitted to a single listener. 

14 (2) 7.5 percent of the revenues received by the 

15 provider during that year that are directly related to 

16 the provider’s digital transmissions of sound record17 ings. 

18 SEC. 4. COMPUTATION OF ROYALTY FEES FOR NON19 COMMERCIAL STATIONS OFFERING DIGITAL 

20 PERFORMANCES OF SOUND RECORDINGS. 

21 (a) AMENDMENTS TO SECTION 118 OF TITLE 17, 

22 UNITED STATES CODE.—Section 118 of title 17, United 

23 States Code, is amended— 

24 (1) in subsection (b), in the matter preceding 

25 paragraph (1), by striking ‘‘and published pictorial’’ 


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1 and inserting ‘‘, sound recordings, and published 

2 pictorial’’; 

3 (2) in subsection (c)— 

4 (A) in the matter preceding paragraph (1), 

5 by striking ‘‘and published pictorial’’ and in6 serting ‘‘, sound recordings, and published pic7 torial’’; and 

8 (B) in paragraph (1), by inserting ‘‘or non9 profit institution or organization’’ after ‘‘broad10 cast station’’; and 

11 (3) in subsection (f), by striking ‘‘paragraph 

12 (2)’’ and inserting ‘‘paragraph (1) or (2)’’. 

13 (b) TRANSITION RULE.—For each calendar year (or 

14 portion thereof) beginning after December 31, 2004, until 

15 an applicable voluntary license agreement is filed with the 

16 Copyright Royalty Judges pursuant to section 118 of title 

17 17, United States Code (as amended by subsection (a) of 

18 this section) or an applicable determination is issued by 

19 the Copyright Royalty Judges pursuant to section 118 of 

20 such title (as so amended), the annual royalty that a pub21 lic broadcasting entity shall pay to owners of copyrights 

22 in sound recordings for the uses provided under section 

23 118(c) of such title (as so amended) shall be an amount 

24 equal to the 1.5 times the total fees paid by that entity 

25 (or in the case of a group of related entities, the fees paid 


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1 by such group) pursuant to section 114(f)(2) of title 17, 

2 United States Code, for such uses during the calendar 

3 year ending December 31, 2004. 

4 SEC. 5. REPORT BY THE NATIONAL TELECOMMUNICATIONS 

5 AND INFORMATION ADMINISTRATION. 

6 Upon the publication in the Federal Register under 

7 section 803(b)(1) of title 17, United States Code, of the 

8 commencement of proceedings of the Copyright Royalty 

9 Judges under section 114(f) or 118 of title 17, United 

10 States Code, to determine rates and terms for Internet 

11 radio service providers under the statutory license pro12 vided under section 114(d)(2) or 118 (as the case may 

13 be), the Assistant Secretary of Commerce for Communica14 tions and Information, after consulting with representa15 tives of copyright owners, nonprofit educational institu16 tions, and commercial and noncommercial Internet radio 

17 providers, shall submit to the Copyright Royalty Judges 

18 a report on the competitiveness of the Internet radio mar19 ketplace and the effect on Internet radio providers of pro20 posed rate determinations in the proceedings. The Assist21 ant Secretary shall submit the report to the Copyright 

22 Royalty Judges in a timely manner before the conclusion 

23 of the proceedings. 


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1 SEC. 6. REPORT BY THE FEDERAL COMMUNICATIONS COM2 MISSION. 

3 Upon the publication in the Federal Register under 

4 section 803(b)(1) of title 17, United States Code, of the 

5 commencement of proceedings of the Copyright Royalty 

6 Judges under section 114(f) or 118 of title 17, United 

7 States Code, to determine rates and terms for Internet 

8 radio service providers under the statutory license pro9 vided under section 114(d)(2) or 118 (as the case may 

10 be), the Federal Communications Commission shall sub11 mit to the Copyright Royalty Judges a report on the effect 

12 of proposed rate determinations in the proceedings on lo13 calism, diversity, and competition in the Internet radio 

14 marketplace. The report shall include the Commission’s 

15 views on the effects of the proposed rate determinations 

16 on— 

17 (1) localism, diversity, and competition in rural 

18 areas; 

19 (2) diversity of programming, including foreign 

20 language programming; and 

21 (3) competitive barriers to entry into the Inter22 net radio market. 

23 The Commission shall submit the report to the Copyright 

24 Royalty Judges in a timely manner before the conclusion 

25 of the proceedings. 


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1 SEC. 7. REPORT BY CORPORATION FOR PUBLIC BROAD2 CASTING. 

3 Upon the publication in the Federal Register under 

4 section 803(b)(1) of title 17, United States Code, of the 

5 commencement of proceedings of the Copyright Royalty 

6 Judges under section 114(f) or 118 of title 17, United 

7 States Code, to determine rates and terms for Internet 

8 radio service providers under the statutory license pro9 vided under section 114(d)(2) or 118 (as the case may 

10 be), Corporation for Public Broadcasting, in consultation 

11 with public radio licensees or permittees, or their des12 ignated representatives, shall submit to the Congress a re13 port on the effect of the proposed rate determinations on 

14 such licensees and permittees. The Corporation shall sub15 mit the report to the Copyright Royalty Judges in a timely 

16 manner before the conclusion of the proceedings. 

Æ 


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