IIA

105TH CONGRESS

1ST SESSION H. R. 672

IN THE SENATE OF THE UNITED STATES

MARCH 19, 1997

Received; read twice and referred to the Committee on the Judiciary

AN ACT

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’

8 and inserting ‘17.5 cents per subscriber in the

9 case of superstations that as retransmitted by

10 the satellite carrier include any program which,

11 if delivered by any cable system in the United

12 States, would be subject to the syndicated ex13 clusivity rules of the Federal Communications

14 Commission, and 14 cents per subscriber in the

15 case of superstations that are syndex-proof as

16 defined in section 258.2 of title 37, Code of

17 Federal Regulations’; 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,

3 1996’; and

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

5 ‘December 31, 1994’ and inserting ‘De6 cember 31, 1999, or in accordance with

7 the terms of the agreement, whichever is

8 later’; and

9 ‘‘(C) in paragraph (3)—

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

11 ‘December 31, 1991’ and inserting ‘Janu12 ary 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

21 the fair market value of secondary trans22 missions. In determining the fair market value,

23 the panel shall base its decision on economic,

24 competitive, and programming information pre25 sented by the parties, including—
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1 ‘‘‘(i) the competitive environment in

2 which such programming is distributed,

3 the cost of similar signals in similar pri4 vate and compulsory license marketplaces,

5 and any special features and conditions of

6 the retransmission marketplace;

7 ‘‘‘(ii) the economic impact of such

8 fees on copyright owners and satellite car9 riers; 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

21 16, 1988’; and’’.

22 SEC. 2. COPYRIGHT IN RESTORED WORKS.

23 Section 104A of title 17, United States Code, is

24 amended 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

4 the case of a derivative work that is based upon a

5 restored work and is created—

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

7 the Uruguay Round Agreements Act, if the

8 source country of the restored work is an eligi9 ble country on such date, or

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

11 country of the restored work becomes an eligi12 ble country, if that country is not an eligible

13 country on such date of enactment,

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

16 if the reliance party pays to the owner of the re17 stored copyright reasonable compensation for con18 duct which would be subject to a remedy for in19 fringement but for the provisions of this para20 graph.’’.

21 (2) Subsection (e)(1)(B)(ii) is amended by

22 striking the last sentence.

23 (3) Subsection (h)(2) is amended to read as fol24 lows:
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1 ‘‘(2) The ‘date of restoration’ of a restored

2 copyright is—

3 ‘‘(A) January 1, 1996, if the source coun4 try of the restored work is a nation adhering to

5 the Berne Convention or a WTO member coun6 try on such date, or

7 ‘‘(B) the date of adherence or proclama8 tion, in the case of any other source country of

9 the restored work.’’.

10 (4) Subsection (h)(3) is amended to read as fol11 lows:

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

13 other than the United States, that—

14 ‘‘(A) becomes a WTO member country

15 after the date of the enactment of the Uruguay

16 Round Agreements Act;

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

18 such date of enactment becomes, a member of

19 the Berne Convention; or

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

21 subject to a proclamation under subsection (g).

22 For purposes of this section, a nation that is a mem23 ber of the Berne Convention on the date of the en24 actment of the Uruguay Round Agreements Act
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1 shall be construed to become an eligible country on

2 such date of enactment.’’.

3 SEC. 3. LICENSES FOR NONEXEMPT SUBSCRIPTION TRANS4 MISSIONS.

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

6 amended—

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

8 copyright arbitration royalty panel is convened, end9 ing 30 days after the Librarian issues and publishes

10 in the Federal Register an order adopting the deter11 mination of the copyright arbitration royalty panel

12 or an order setting the terms and rates (if the Li13 brarian rejects the panel’s determination)’’ after

14 ‘‘December 31, 2000’’; and

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

16 in the Federal Register’’.

17 SEC. 4. ROYALTY PAYABLE UNDER COMPULSORY LICENSE.

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

19 is amended by striking ‘‘and publish in the Federal Reg20 ister’’.

21 SEC. 5. NEGOTIATED LICENSE FOR JUKEBOXES.

22 Section 116 of title 17, United States Code, is

23 amended—

24 (1) by amending subsection (b)(2) to read as

25 follows:
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1 ‘‘(2) ARBITRATION.—Parties not subject to

2 such a negotiation may determine, by arbitration in

3 accordance with the provisions of chapter 8, the

4 terms and rates and the division of fees described in

5 paragraph (1).’’; and

6 (2) by adding at the end the following new sub7 section:

8 ‘‘(d) DEFINITIONS.—As used in this section, the fol9 lowing terms mean the following:

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

11 machine or device that—

12 ‘‘(A) is employed solely for the perform13 ance of nondramatic musical works by means of

14 phonorecords upon being activated by the inser15 tion of coins, currency, tokens, or other mone16 tary units or their equivalent;

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

18 no direct or indirect charge for admission;

19 ‘‘(C) is accompanied by a list which is

20 comprised of the titles of all the musical works

21 available for performance on it, and is affixed

22 to the phonorecord player or posted in the es23 tablishment in a prominent position where it

24 can be readily examined by the public; and
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1 ‘‘(D) affords a choice of works available

2 for performance and permits the choice to be

3 made by the patrons of the establishment in

4 which it is located.

5 ‘‘(2) An ‘operator’ is any person who, alone or

6 jointly with others—

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

8 player;

9 ‘‘(B) has the power to make a coin-oper10 ated phonorecord player available for placement

11 in an establishment for purposes of public per12 formance; or

13 ‘‘(C) has the power to exercise primary

14 control over the selection of the musical works

15 made available for public performance on a

16 coin-operated phonorecord player.’’.

17 SEC. 6. REGISTRATION AND INFRINGEMENT ACTIONS.

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

19 amended to read as follows:

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

21 than 48 hours before such fixation, identifying the

22 work and the specific time and source of its first

23 transmission, and declaring an intention to secure

24 copyright in the work; and’’.
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1 SEC. 7. COPYRIGHT OFFICE FEES.

2 (a) FEE INCREASES.—Section 708(b) of title 17,

3 United States Code, is amended to read as follows:

4 ‘‘(b) In calendar year 1997 and in any subsequent

5 calendar year, the Register of Copyrights, by regulation,

6 may increase the fees specified in subsection (a) in the

7 following manner:

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

9 costs incurred by the Copyright Office for the reg10 istration of claims, the recordation of documents,

11 and the provision of services. The study shall also

12 consider the timing of any increase in fees and the

13 authority to use such fees consistent with the budg14 et.

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

16 study under paragraph (1), and subject to para17 graph (5), increase fees to not more than that nec18 essary to cover the reasonable costs incurred by the

19 Copyright Office for the services described in para20 graph (1), plus a reasonable inflation adjustment to

21 account for any estimated increase in costs.

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

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

24 fee less than $12, rounded off to the nearest 50

25 cents.
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1 ‘‘(4) Fees established under this subsection

2 shall be fair and equitable and give due consider3 ation to the objectives of the copyright system.

4 ‘‘(5) If the Register determines under para5 graph (2) that fees should be increased, the Register

6 shall prepare a proposed fee schedule and submit the

7 schedule with the accompanying economic analysis to

8 the Congress. The fees proposed by the Register

9 may be instituted after the end of 120 days after the

10 schedule is submitted to the Congress unless, within

11 that 120-day period, a law is enacted stating in sub12 stance that the Congress does not approve the

13 schedule.’’.

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

15 is amended to read as follows:

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

17 received under this section shall be deposited by the Reg18 ister of Copyrights in the Treasury of the United States

19 and shall be credited to the appropriations for necessary

20 expenses of the Copyright Office. Such fees that are col21 lected shall remain available until expended. The Register

22 may, in accordance with regulations that he or she shall

23 prescribe, refund any sum paid by mistake or in excess

24 of the fee required by this section.
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1 ‘‘(2) In the case of fees deposited against future serv2 ices, the Register of Copyrights shall request the Secretary

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

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

5 as determined by the Register, is not required to meet cur6 rent deposit account demands. Funds from such portion

7 of fees shall be invested in securities that permit funds

8 to be available to the Copyright Office at all times if they

9 are determined to be necessary to meet current deposit

10 account demands. Such investments shall be in public debt

11 securities with maturities suitable to the needs of the

12 Copyright Office, as determined by the Register of Copy13 rights, and bearing interest at rates determined by the

14 Secretary of the Treasury, taking into consideration cur15 rent market yields on outstanding marketable obligations

16 of the United States of comparable maturities.

17 ‘‘(3) The income on such investments shall be depos18 ited in the Treasury of the United States and shall be

19 credited to the appropriations for necessary expenses of

20 the Copyright Office.’’.

21 SEC. 8. COPYRIGHT ARBITRATION ROYALTY PANELS.

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

23 title 17, United States Code, is amended—

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

25 in the first sentence and inserting ‘‘116, and 119’’;
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1 (2) in subsection (c) by inserting after ‘‘panel’’

2 at the end of the sentence the following:

3 ‘‘, including—

4 ‘‘(1) authorizing the distribution of those roy5 alty fees collected under sections 111, 119, and

6 1005 that the Librarian has found are not subject

7 to controversy; and

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

9 under sections 111, 119, and 1007 on the basis of

10 timeliness or the failure to establish the basis for a

11 claim’’; and

12 (3) by amending subsection (d) to read as fol13 lows:

14 ‘‘(d) SUPPORT AND REIMBURSEMENT OF ARBITRA15 TION PANELS.—The Librarian of Congress, upon the rec16 ommendation of the Register of Copyrights, shall provide

17 the copyright arbitration royalty panels with the necessary

18 administrative services related to proceedings under this

19 chapter, and shall reimburse the arbitrators presiding in

20 distribution proceedings at such intervals and in such

21 manner as the Librarian shall provide by regulation. Each

22 such arbitrator is an independent contractor acting on be23 half of the United States, and shall be hired pursuant to

24 a signed agreement between the Library of Congress and

25 the arbitrator. Payments to the arbitrators shall be consid-
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1 ered reasonable costs incurred by the Library of Congress

2 and the Copyright Office for purposes of section

3 802(h)(1).’’.

4 (b) PROCEEDINGS.—Section 802(h) of title 17, Unit5 ed States Code, is amended by amending paragraph (1)

6 to read as follows:

7 ‘‘(1) DEDUCTION OF COSTS OF LIBRARY OF

8 CONGRESS AND COPYRIGHT OFFICE FROM ROYALTY

9 FEES.—The Librarian of Congress and the Register

10 of Copyrights may, to the extent not otherwise pro11 vided under this title, deduct from royalty fees de12 posited or collected under this title the reasonable

13 costs incurred by the Library of Congress and the

14 Copyright Office under this chapter. Such deduction

15 may be made before the fees are distributed to any

16 copyright claimants. In addition, all funds made

17 available by an appropriations Act as offsetting col18 lections and available for deductions under this sub19 section shall remain available until expended. In

20 ratemaking proceedings, the reasonable costs of the

21 Librarian of Congress and the Copyright Office shall

22 be borne by the parties to the proceedings as di23 rected by the arbitration panels under subsection

24 (c).’’.
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1 SEC. 9. DIGITAL AUDIO RECORDING DEVICES AND MEDIA.

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

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

4 sentence and inserting ‘‘After’’.

5 SEC. 10. CONFORMING AMENDMENT.

6 Section 4 of the Digital Performance Right in Sound

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

8 by redesignating paragraph (5) as paragraph (4).

9 SEC. 11. MISCELLANEOUS TECHNICAL AMENDMENTS.

10 (a) AMENDMENTS TO TITLE 17, UNITED STATES

11 CODE.—Title 17, United States Code, is amended as fol12 lows:

13 (1) The table of chapters at the beginning of

14 title 17, United States Code, is amended—

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

16 striking ‘‘Requirement’’ and inserting ‘‘Re17 quirements’’;

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

19 striking ‘‘Royalty Tribunal’’ and inserting

20 ‘‘Arbitration Royalty Panels’’;

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

22 striking ‘‘semiconductor chip products’’

23 and inserting ‘‘Semiconductor Chip

24 Products’’; and
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1 (D) by inserting after the item relating to

2 chapter 9 the following:

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

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

4 of sections at the beginning of chapter 1 is amended

5 to read as follows:

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

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

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

8 ‘‘processs’’ and inserting ‘‘process’’.

9 (4) Section 108(e) is amended by striking

10 ‘‘pair’’ and inserting ‘‘fair’’.

11 (5) Section 109(b)(2)(B) is amended by strik12 ing ‘‘Copyright’’ and inserting ‘‘Copyrights’’.

13 (6) Section 110 is amended—

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

15 at the end and inserting a semicolon;

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

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

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

19 above’’ and inserting ‘‘(4)’’.

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

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

22 106(1) and (3)’’ each place it appears and in23 serting ‘‘paragraphs (1) and (3) of section

24 106’’; and
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1 (B) in clause (ii)(II) by striking ‘‘sections

2 106(1) and 106(3)’’ and inserting ‘‘paragraphs

3 (1) and (3) of section 106’’.

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

5 ‘‘until unless’’ and inserting ‘‘unless’’.

6 (9) Section 304(c) is amended in the matter

7 preceding paragraph (1) by striking ‘‘the subsection

8 (a)(1)(C)’’ and inserting ‘‘subsection (a)(1)(C)’’.

9 (10) Section 405(b) is amended by striking

10 ‘‘condition or’’ and inserting ‘‘condition for’’.

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

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

13 (12) The item relating to section 504 in the

14 table of sections at the beginning of chapter 5 is

15 amended by striking ‘‘Damage’’ and inserting

16 ‘‘Damages’’.

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

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

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

20 ‘‘merchandise; and baggage’’ and inserting ‘‘mer21 chandise, and baggage’’.

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

23 ‘‘nondramtic’’ and inserting ‘‘nondramatic’’.

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

25 ‘‘subsustantial’’ and inserting ‘‘substantial’’.
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1 (17) The item relating to section 710 in the

2 table of sections at the beginning of chapter 7 is

3 amended by striking ‘‘Reproductions’’ and inserting

4 ‘‘Reproduction’’.

5 (18) The item relating to section 801 in the

6 table of sections at the beginning of chapter 8 is

7 amended by striking ‘‘establishment’’ and inserting

8 ‘‘Establishment’’.

9 (19) Section 801(b) is amended—

10 (A) by striking ‘‘shall be—’’ and inserting

11 ‘‘shall be as follows:’’;

12 (B) in paragraph (1) by striking ‘‘to

13 make’’ and inserting ‘‘To make’’;

14 (C) in paragraph (2)—

15 (i) by striking ‘‘to make’’ and insert16 ing ‘‘To make’’; and

17 (ii) in subparagraph (D) by striking

18 ‘‘adjustment; and’’ and inserting ‘‘adjust19 ment.’’; and

20 (D) in paragraph (3) by striking ‘‘to dis21 tribute’’ and inserting ‘‘To distribute’’.

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

23 sentence by striking ‘‘subsection subsection’’ and in24 serting ‘‘subsection’’.
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1 (21) The item relating to section 903 in the

2 table of sections at the beginning of chapter 9 is

3 amended to read as follows:

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

4 (22) Section 909(b)(1) is amended—

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

6 ‘‘work’’; and

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

8 ‘‘symbol’’.

9 (23) Section 910(a) is amended in the second

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

11 used’’.

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

13 ‘‘Federation Television’’ and inserting ‘‘Federation

14 of Television’’.

15 (25) Section 1007 is amended—

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

17 calendar year in which this chapter takes ef18 fect’’ and inserting ‘‘calendar year 1992’’; and

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

20 in which this section takes effect’’ and inserting

21 ‘‘1992’’.

22 (b) RELATED PROVISIONS.—

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

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

25 regarding protection extended to semiconductor chip
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1 products of foreign entities’’, approved November 9,

2 1987 (17 U.S.C. 914 note), is amended by striking

3 ‘‘orginating’’ and inserting ‘‘originating’’.

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

5 States Code, is amended by striking ‘‘last 10’’ and

6 inserting ‘‘least 10’’.

7 SEC. 12. EFFECTIVE DATES.

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

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

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

11 (b) SATELLITE HOME VIEWER ACT.—The amend12 ments made by section 1 shall be effective as if enacted

13 as part of the Satellite Home Viewer Act of 1994 (Public

14 Law 103–369).

15 (c) TECHNICAL AMENDMENT.—The amendment

16 made by section 11(b)(1) shall be effective as if enacted

17 on November 9, 1987.

Passed the House of Representatives March 18,

1997.

Attest: ROBIN H. CARLE,

Clerk.