H. R. 672

One Hundred Fifth Congress

of the

United States of America

AT THE FIRST SESSION

Begun and held at the City of Washington on Tuesday,

the seventh day of January, one thousand nine hundred and ninety-seven

An Act

To make technical amendments to certain provisions of title 17, United States

Code.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

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 syndexproof 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
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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).
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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.’’.
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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
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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(h) of title 17, United States

Code, is amended 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).’’.
H. R. 672—6

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. DISTRIBUTION OF PHONORECORDS.

Section 303 of title 17, United States Code, is amended—

(1) by striking ‘‘Copyright’’ and inserting ‘‘(a) Copyright’’;

and

(2) by inserting at the end the following:

‘‘(b) The distribution before January 1, 1978, of a phonorecord

shall not for any purpose constitute a publication of the musical

work embodied therein.’’.

SEC. 12. 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
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(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—
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(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. 13. 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

12(b)(1) shall be effective as if enacted on November 9, 1987.

Speaker of the House of Representatives.

Vice President of the United States and

President of the Senate.