Union Calendar No. 16

105TH CONGRESS

1ST SESSION H. R. 672

[Report No. 105–25]

A BILL

provisions of title 17, United States Code.

To make technical amendments to certain

MARCH 17, 1997

Reported with an amendment, committed to the Commitordered to be printed tee of the Whole House on the State of the Union, and
IB

Union Calendar No. 16

105TH CONGRESS

1ST SESSION H. R. 672

[Report No. 105–25]

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

States Code.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 11, 1997

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

on the Judiciary

MARCH 17, 1997

Reported with an amendment, committed to the Committee of the Whole

House on the State of the Union, and ordered to be printed

[Strike out all after the enacting clause and insert the part printed in italic]

[For text of introduced bill, see copy of bill as introduced on February 11, 1997]

A BILL

To make technical amendments to certain provisions of title

17, United States Code.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. TECHNICAL CORRECTIONS TO THE SATELLITE

2 HOME VIEWER ACT OF 1994.

3 The Satellite Home Viewer Act of 1994 (Public Law

4 103–369) is amended as follows:

5 (1) Section 2(3)(A) is amended to read as fol6 lows:

7 ‘‘(A) in clause (i) by striking ‘12 cents’ and

8 inserting ‘17.5 cents per subscriber in the case of

9 superstations that as retransmitted by the sat10 ellite carrier include any program which, if de11 livered by any cable system in the United States,

12 would be subject to the syndicated exclusivity

13 rules of the Federal Communications Commis14 sion, and 14 cents per subscriber in the case of

15 superstations that are syndex-proof as defined in

16 section 258.2 of title 37, Code of Federal Regula17 tions’; and ’’.

18 (2) Section 2(4) is amended to read as follows:

19 ‘‘(4) Subsection (c) is amended—

20 ‘‘(A) in paragraph (1)—

21 ‘‘(i) by striking ‘until December 31,

22 1992,’;

23 ‘‘(ii) by striking ‘(2), (3) or (4)’ and

24 inserting ‘(2) or (3)’; and

25 ‘‘(iii) by striking the second sentence;

26 ‘‘(B) in paragraph (2)—
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1 ‘‘(i) in subparagraph (A) by striking

2 ‘July 1, 1991’ and inserting ‘July 1, 1996’;

3 and

4 ‘‘(ii) in subparagraph (D) by striking

5 ‘December 31, 1994’ and inserting ‘Decem6 ber 31, 1999, or in accordance with the

7 terms of the agreement, whichever is later’;

8 and

9 ‘‘(C) in paragraph (3)—

10 ‘‘(i) in subparagraph (A) by striking

11 ‘December 31, 1991’ and inserting ‘January

12 1, 1997’;

13 ‘‘(ii) by amending subparagraph (B)

14 to read as follows:

15 ‘‘‘(B) ESTABLISHMENT OF ROYALTY

16 FEES.—In determining royalty fees under this

17 paragraph, the copyright arbitration royalty

18 panel appointed under chapter 8 shall establish

19 fees for the retransmission of network stations

20 and superstations that most clearly represent the

21 fair market value of secondary transmissions. In

22 determining the fair market value, the panel

23 shall base its decision on economic, competitive,

24 and programming information presented by the

25 parties, including—
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1 ‘‘‘(i) the competitive environment in

2 which such programming is distributed, the

3 cost of similar signals in similar private

4 and compulsory license marketplaces, and

5 any special features and conditions of the

6 retransmission marketplace;

7 ‘‘‘(ii) the economic impact of such fees

8 on copyright owners and satellite carriers;

9 and

10 ‘‘‘(iii) the impact on the continued

11 availability of secondary transmissions to

12 the public.’; and

13 ‘‘(iii) in subparagraph (C), by insert14 ing ‘or July 1, 1997, whichever is later’

15 after ‘section 802(g)’.’’.

16 (3) Section 2(5)(A) is amended to read as fol17 lows:

18 ‘‘(A) in paragraph (5)(C) by striking ‘the

19 date of the enactment of the Satellite Home

20 Viewer Act of 1988’ and inserting ‘November 16,

21 1988’; and’’.

22 SEC. 2. COPYRIGHT IN RESTORED WORKS.

23 Section 104A of title 17, United States Code, is amend24 ed as follows:
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1 (1) Subsection (d)(3)(A) is amended to read as

2 follows:

3 ‘‘(3) EXISTING DERIVATIVE WORKS.—(A) In the

4 case of a derivative work that is based upon a re5 stored work and is created—

6 ‘‘(i) before the date of the enactment of the

7 Uruguay Round Agreements Act, if the source

8 country of the restored work is an eligible coun9 try on such date, or

10 ‘‘(ii) before the date on which the source

11 country of the restored work becomes an eligible

12 country, if that country is not an eligible coun13 try on such date of enactment,

14 a reliance party may continue to exploit that deriva15 tive work for the duration of the restored copyright if

16 the reliance party pays to the owner of the restored

17 copyright reasonable compensation for conduct which

18 would be subject to a remedy for infringement but for

19 the provisions of this paragraph.’’.

20 (2) Subsection (e)(1)(B)(ii) is amended by strik21 ing the last sentence.

22 (3) Subsection (h)(2) is amended to read as fol23 lows:

24 ‘‘(2) The ‘date of restoration’ of a restored copy25 right is—
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1 ‘‘(A) January 1, 1996, if the source country

2 of the restored work is a nation adhering to the

3 Berne Convention or a WTO member country on

4 such date, or

5 ‘‘(B) the date of adherence or proclamation,

6 in the case of any other source country of the re7 stored work.’’.

8 (4) Subsection (h)(3) is amended to read as fol9 lows:

10 ‘‘(3) The term ‘eligible country’ means a nation,

11 other than the United States, that—

12 ‘‘(A) becomes a WTO member country after

13 the date of the enactment of the Uruguay Round

14 Agreements Act;

15 ‘‘(B) on such date of enactment is, or after

16 such date of enactment becomes, a member of the

17 Berne Convention; or

18 ‘‘(C) after such date of enactment becomes

19 subject to a proclamation under subsection (g).

20 For purposes of this section, a nation that is a mem21 ber of the Berne Convention on the date of the enact22 ment of the Uruguay Round Agreements Act shall be

23 construed to become an eligible country on such date

24 of enactment.’’.
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1 SEC. 3. LICENSES FOR NONEXEMPT SUBSCRIPTION TRANS2 MISSIONS.

3 Section 114(f) of title 17, United States Code, is

4 amended—

5 (1) in paragraph (1), by inserting ‘‘, or, if a

6 copyright arbitration royalty panel is convened, end7 ing 30 days after the Librarian issues and publishes

8 in the Federal Register an order adopting the deter9 mination of the copyright arbitration royalty panel

10 or an order setting the terms and rates (if the Librar11 ian rejects the panel’s determination)’’ after ‘‘Decem12 ber 31, 2000’’; and

13 (2) in paragraph (2), by striking ‘‘and publish

14 in the Federal Register’’.

15 SEC. 4. ROYALTY PAYABLE UNDER COMPULSORY LICENSE.

16 Section 115(c)(3)(D) of title 17, United States Code,

17 is amended by striking ‘‘and publish in the Federal Reg18 ister’’.

19 SEC. 5. NEGOTIATED LICENSE FOR JUKEBOXES.

20 Section 116 of title 17, United States Code, is amend21 ed—

22 (1) by amending subsection (b)(2) to read as fol23 lows:

24 ‘‘(2) ARBITRATION.—Parties not subject to such

25 a negotiation may determine, by arbitration in ac26 cordance with the provisions of chapter 8, the terms
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1 and rates and the division of fees described in para2 graph (1).’’; and

3 (2) by adding at the end the following new sub4 section:

5 ‘‘(d) DEFINITIONS.—As used in this section, the follow6 ing terms mean the following:

7 ‘‘(1) A ‘coin-operated phonorecord player’ is a

8 machine or device that—

9 ‘‘(A) is employed solely for the performance

10 of nondramatic musical works by means of

11 phonorecords upon being activated by the inser12 tion of coins, currency, tokens, or other monetary

13 units or their equivalent;

14 ‘‘(B) is located in an establishment making

15 no direct or indirect charge for admission;

16 ‘‘(C) is accompanied by a list which is com17 prised of the titles of all the musical works avail18 able for performance on it, and is affixed to the

19 phonorecord player or posted in the establish20 ment in a prominent position where it can be

21 readily examined by the public; and

22 ‘‘(D) affords a choice of works available for

23 performance and permits the choice to be made

24 by the patrons of the establishment in which it

25 is located.
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1 ‘‘(2) An ‘operator’ is any person who, alone or

2 jointly with others—

3 ‘‘(A) owns a coin-operated phonorecord

4 player;

5 ‘‘(B) has the power to make a coin-operated

6 phonorecord player available for placement in

7 an establishment for purposes of public perform8 ance; or

9 ‘‘(C) has the power to exercise primary con10 trol over the selection of the musical works made

11 available for public performance on a coin-oper12 ated phonorecord player.’’.

13 SEC. 6. REGISTRATION AND INFRINGEMENT ACTIONS.

14 Section 411(b)(1) of title 17, United States Code, is

15 amended to read as follows:

16 ‘‘(1) serves notice upon the infringer, not less

17 than 48 hours before such fixation, identifying the

18 work and the specific time and source of its first

19 transmission, and declaring an intention to secure

20 copyright in the work; and’’.

21 SEC. 7. COPYRIGHT OFFICE FEES.

22 (a) FEE INCREASES.—Section 708(b) of title 17, Unit23 ed States Code, is amended to read as follows:

24 ‘‘(b) In calendar year 1997 and in any subsequent cal25 endar year, the Register of Copyrights, by regulation, may
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1 increase the fees specified in subsection (a) in the following

2 manner:

3 ‘‘(1) The Register shall conduct a study of the

4 costs incurred by the Copyright Office for the registra5 tion of claims, the recordation of documents, and the

6 provision of services. The study shall also consider the

7 timing of any increase in fees and the authority to

8 use such fees consistent with the budget.

9 ‘‘(2) The Register may, on the basis of the study

10 under paragraph (1), and subject to paragraph (5),

11 increase fees to not more than that necessary to cover

12 the reasonable costs incurred by the Copyright Office

13 for the services described in paragraph (1), plus a

14 reasonable inflation adjustment to account for any es15 timated increase in costs.

16 ‘‘(3) Any fee established under paragraph (2)

17 shall be rounded off to the nearest dollar, or for a fee

18 less than $12, rounded off to the nearest 50 cents.

19 ‘‘(4) Fees established under this subsection shall

20 be fair and equitable and give due consideration to

21 the objectives of the copyright system.

22 ‘‘(5) If the Register determines under paragraph

23 (2) that fees should be increased, the Register shall

24 prepare a proposed fee schedule and submit the sched25 ule with the accompanying economic analysis to the
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1 Congress. The fees proposed by the Register may be

2 instituted after the end of 120 days after the schedule

3 is submitted to the Congress unless, within that 120-

4 day period, a law is enacted stating in substance that

5 the Congress does not approve the schedule.’’.

6 (b) DEPOSIT OF FEES.—Section 708(d) of such title

7 is amended to read as follows:

8 ‘‘(d)(1) Except as provided in paragraph (2), all fees

9 received under this section shall be deposited by the Register

10 of Copyrights in the Treasury of the United States and shall

11 be credited to the appropriations for necessary expenses of

12 the Copyright Office. Such fees that are collected shall re13 main available until expended. The Register may, in ac14 cordance with regulations that he or she shall prescribe, re15 fund any sum paid by mistake or in excess of the fee re16 quired by this section.

17 ‘‘(2) In the case of fees deposited against future serv18 ices, the Register of Copyrights shall request the Secretary

19 of the Treasury to invest in interest-bearing securities in

20 the United States Treasury any portion of the fees that,

21 as determined by the Register, is not required to meet cur22 rent deposit account demands. Funds from such portion of

23 fees shall be invested in securities that permit funds to be

24 available to the Copyright Office at all times if they are

25 determined to be necessary to meet current deposit account
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1 demands. Such investments shall be in public debt securities

2 with maturities suitable to the needs of the Copyright Office,

3 as determined by the Register of Copyrights, and bearing

4 interest at rates determined by the Secretary of the Treas5 ury, taking into consideration current market yields on out6 standing marketable obligations of the United States of

7 comparable maturities.

8 ‘‘(3) The income on such investments shall be deposited

9 in the Treasury of the United States and shall be credited

10 to the appropriations for necessary expenses of the Copy11 right Office.’’.

12 SEC. 8. COPYRIGHT ARBITRATION ROYALTY PANELS.

13 (a) ESTABLISHMENT AND PURPOSE.—Section 801 of

14 title 17, United States Code, is amended—

15 (1) in subsection (b)(1) by striking ‘‘and 116’’ in

16 the first sentence and inserting ‘‘116, and 119’’;

17 (2) in subsection (c) by inserting after ‘‘panel’’

18 at the end of the sentence the following:

19 ‘‘, including—

20 ‘‘(1) authorizing the distribution of those royalty

21 fees collected under sections 111, 119, and 1005 that

22 the Librarian has found are not subject to con23 troversy; and

24 ‘‘(2) accepting or rejecting royalty claims filed

25 under sections 111, 119, and 1007 on the basis of
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1 timeliness or the failure to establish the basis for a

2 claim’’; and

3 (3) by amending subsection (d) to read as fol4 lows:

5 ‘‘(d) SUPPORT AND REIMBURSEMENT OF ARBITRATION

6 PANELS.—The Librarian of Congress, upon the rec7 ommendation of the Register of Copyrights, shall provide

8 the copyright arbitration royalty panels with the necessary

9 administrative services related to proceedings under this

10 chapter, and shall reimburse the arbitrators presiding in

11 distribution proceedings at such intervals and in such man12 ner as the Librarian shall provide by regulation. Each such

13 arbitrator is an independent contractor acting on behalf of

14 the United States, and shall be hired pursuant to a signed

15 agreement between the Library of Congress and the arbitra16 tor. Payments to the arbitrators shall be considered reason17 able costs incurred by the Library of Congress and the

18 Copyright Office for purposes of section 802(h)(1).’’.

19 (b) PROCEEDINGS.—Section 802 of title 17, United

20 States Code, is amended—

21 (1) in subsection (c) by striking the last sentence;

22 and

23 (2) in subsection (h) by amending paragraph (1)

24 to read as follows:
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1 ‘‘(1) DEDUCTION OF COSTS OF LIBRARY OF CON2 GRESS AND COPYRIGHT OFFICE FROM ROYALTY

3 FEES.—The Librarian of Congress and the Register of

4 Copyrights may, to the extent not otherwise provided

5 under this title, deduct from royalty fees deposited or

6 collected under this title the reasonable costs incurred

7 by the Library of Congress and the Copyright Office

8 under this chapter. Such deduction may be made be9 fore the fees are distributed to any copyright claim10 ants. In addition, all funds made available by an ap11 propriations Act as offsetting collections and avail12 able for deductions under this subsection shall remain

13 available until expended. In ratemaking proceedings,

14 the reasonable costs of the Librarian of Congress and

15 the Copyright Office shall be borne by the parties to

16 the proceedings as directed by the arbitration panels

17 under subsection (c).’’.

18 SEC. 9. DIGITAL AUDIO RECORDING DEVICES AND MEDIA.

19 Section 1007(b) of title 17, United States Code, is

20 amended by striking ‘‘Within 30 days after’’ in the first

21 sentence and inserting ‘‘After’’.

22 SEC. 10. CONFORMING AMENDMENT.

23 Section 4 of the Digital Performance Right in Sound

24 Recordings Act of 1995 (Public Law 104–39) is amended

25 by redesignating paragraph (5) as paragraph (4).
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1 SEC. 11. MISCELLANEOUS TECHNICAL AMENDMENTS.

2 (a) AMENDMENTS TO TITLE 17, UNITED STATES

3 CODE.—Title 17, United States Code, is amended as fol4 lows:

5 (1) The table of chapters at the beginning of title

6 17, United States Code, is amended—

7 (A) in the item relating to chapter 6, by

8 striking ‘‘Requirement’’ and inserting ‘‘Re9 quirements’’;

10 (B) in the item relating to chapter 8, by

11 striking ‘‘Royalty Tribunal’’ and inserting

12 ‘‘Arbitration Royalty Panels’’;

13 (C) in the item relating to chapter 9, by

14 striking ‘‘semiconductor chip products’’

15 and inserting ‘‘Semiconductor Chip Prod16 ucts’’; and

17 (D) by inserting after the item relating to

18 chapter 9 the following:

‘‘10. Digital Audio Recording Devices and Media ................... 1001’’.

19 (2) The item relating to section 117 in the table

20 of sections at the beginning of chapter 1 is amended

21 to read as follows:

‘‘117. Limitations on exclusive rights: Computer programs.’’.

22 (3) Section 101 is amended in the definition of

23 to perform or display a work ‘‘publicly’’ by striking

24 ‘‘processs’’ and inserting ‘‘process’’.
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1 (4) Section 108(e) is amended by striking ‘‘pair’’

2 and inserting ‘‘fair’’.

3 (5) Section 109(b)(2)(B) is amended by striking

4 ‘‘Copyright’’ and inserting ‘‘Copyrights’’.

5 (6) Section 110 is amended—

6 (A) in paragraph (8) by striking the period

7 at the end and inserting a semicolon;

8 (B) in paragraph (9) by striking the period

9 at the end and inserting ‘‘; and’’; and

10 (C) in paragraph (10) by striking ‘‘4

11 above’’ and inserting ‘‘(4)’’.

12 (7) Section 115(c)(3)(E) is amended—

13 (A) in clause (i) by striking ‘‘sections

14 106(1) and (3)’’ each place it appears and in15 serting ‘‘paragraphs (1) and (3) of section 106’’;

16 and

17 (B) in clause (ii)(II) by striking ‘‘sections

18 106(1) and 106(3)’’ and inserting ‘‘paragraphs

19 (1) and (3) of section 106’’.

20 (8) Section 119(c)(1) is amended by striking

21 ‘‘until unless’’ and inserting ‘‘unless’’.

22 (9) Section 304(c) is amended in the matter pre23 ceding paragraph (1) by striking ‘‘the subsection

24 (a)(1)(C)’’ and inserting ‘‘subsection (a)(1)(C)’’.
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1 (10) Section 405(b) is amended by striking ‘‘con2 dition or’’ and inserting ‘‘condition for’’.

3 (11) Section 407(d)(2) is amended by striking

4 ‘‘cost of’’ and inserting ‘‘cost to’’.

5 (12) The item relating to section 504 in the table

6 of sections at the beginning of chapter 5 is amended

7 by striking ‘‘Damage’’ and inserting ‘‘Damages’’.

8 (13) Section 504(c)(2) is amended by striking

9 ‘‘court it’’ and inserting ‘‘court in’’.

10 (14) Section 509(b) is amended by striking

11 ‘‘merchandise; and baggage’’ and inserting ‘‘merchan12 dise, and baggage’’.

13 (15) Section 601(a) is amended by striking

14 ‘‘nondramtic’’ and inserting ‘‘nondramatic’’.

15 (16) Section 601(b)(1) is amended by striking

16 ‘‘subsustantial’’ and inserting ‘‘substantial’’.

17 (17) The item relating to section 710 in the table

18 of sections at the beginning of chapter 7 is amended

19 by striking ‘‘Reproductions’’ and inserting ‘‘Repro20 duction’’.

21 (18) The item relating to section 801 in the table

22 of sections at the beginning of chapter 8 is amended

23 by striking ‘‘establishment’’ and inserting ‘‘Establish24 ment’’.

25 (19) Section 801(b) is amended—
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1 (A) by striking ‘‘shall be—’’ and inserting

2 ‘‘shall be as follows:’’;

3 (B) in paragraph (1) by striking ‘‘to make’’

4 and inserting ‘‘To make’’;

5 (C) in paragraph (2)—

6 (i) by striking ‘‘to make’’ and inserting

7 ‘‘To make’’; and

8 (ii) in subparagraph (D) by striking

9 ‘‘adjustment; and’’ and inserting ‘‘adjust10 ment.’’; and

11 (D) in paragraph (3) by striking ‘‘to dis12 tribute’’ and inserting ‘‘To distribute’’.

13 (20) Section 803(b) is amended in the second

14 sentence by striking ‘‘subsection subsection’’ and in15 serting ‘‘subsection’’.

16 (21) The item relating to section 903 in the table

17 of sections at the beginning of chapter 9 is amended

18 to read as follows:

‘‘903. Ownership, transfer, licensure, and recordation.’’.

19 (22) Section 909(b)(1) is amended—

20 (A) by striking ‘‘force’’ and inserting

21 ‘‘work’’; and

22 (B) by striking ‘‘sumbol’’ and inserting

23 ‘‘symbol’’.
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1 (23) Section 910(a) is amended in the second

2 sentence by striking ‘‘as used’’ and inserting ‘‘As

3 used’’.

4 (24) Section 1006(b)(1) is amended by striking

5 ‘‘Federation Television’’ and inserting ‘‘Federation of

6 Television’’.

7 (25) Section 1007 is amended—

8 (A) in subsection (a)(1) by striking ‘‘the

9 calendar year in which this chapter takes effect’’

10 and inserting ‘‘calendar year 1992’’; and

11 (B) in subsection (b) by striking ‘‘the year

12 in which this section takes effect’’ and inserting

13 ‘‘1992’’.

14 (b) RELATED PROVISIONS.—

15 (1) Section 1(a)(1) of the Act entitled ‘‘An Act

16 to amend chapter 9 of title 17, United States Code,

17 regarding protection extended to semiconductor chip

18 products of foreign entities’’, approved November 9,

19 1987 (17 U.S.C. 914 note), is amended by striking

20 ‘‘orginating’’ and inserting ‘‘originating’’.

21 (2) Section 2319(b)(1) of title 18, United States

22 Code, is amended by striking ‘‘last 10’’ and inserting

23 ‘‘least 10’’.
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1 SEC. 12. EFFECTIVE DATES.

2 (a) IN GENERAL.—Except as provided in subsections

3 (b) and (c), the amendments made by this Act shall take

4 effect on the date of the enactment of this Act.

5 (b) SATELLITE HOME VIEWER ACT.—The amend6 ments made by section 1 shall be effective as if enacted as

7 part of the Satellite Home Viewer Act of 1994 (Public Law

8 103–369).

9 (c) TECHNICAL AMENDMENT.—The amendment made

10 by section 11(b)(1) shall be effective as if enacted on Novem11 ber 9, 1987.