I

105TH CONGRESS

1ST SESSION H. R. 672

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

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,

3 SECTION 1. TECHNICAL CORRECTIONS TO THE SATELLITE

4 HOME VIEWER ACT OF 1994.

5 The Satellite Home Viewer Act of 1994 (Public Law

6 103–369) is amended as follows:

7 (1) Section 2(3)(A) is amended to read as fol8 lows:

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

10 and inserting ‘17.5 cents per subscriber in the
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1 case of superstations that as retransmitted by

2 the satellite carrier include any program which,

3 if delivered by any cable system in the United

4 States, would be subject to the syndicated ex5 clusivity rules of the Federal Communications

6 Commission, and 14 cents per subscriber in the

7 case of superstations that are syndex-proof as

8 defined in section 258.2 of title 37, Code of

9 Federal Regulations’; and ’’.

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

11 ‘‘(4) Subsection (c) is amended—

12 ‘‘(A) in paragraph (1)—

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

14 1992,’;

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

16 inserting ‘(2) or (3)’; and

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

18 ‘‘(B) in paragraph (2)—

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

20 ‘July 1, 1991’ and inserting ‘July 1,

21 1996’; and

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

23 ‘December 31, 1994’ and inserting ‘De24 cember 31, 1999, or in accordance with
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1 the terms of the agreement, whichever is

2 later’; and

3 ‘‘(C) in paragraph (3)—

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

5 ‘December 31, 1991’ and inserting ‘Janu6 ary 1, 1997’;

7 ‘‘(ii) by amending subparagraph (B)

8 to read as follows:

9 ‘‘‘(B) ESTABLISHMENT OF ROYALTY

10 FEES.—In determining royalty fees under this

11 paragraph, the copyright arbitration royalty

12 panel appointed under chapter 8 shall establish

13 fees for the retransmission of network stations

14 and superstations that most clearly represent

15 the fair market value of secondary trans16 missions. In determining the fair market value,

17 the panel shall base its decision on economic,

18 competitive, and programming information pre19 sented by the parties, including—

20 ‘‘‘(i) the competitive environment in

21 which such programming is distributed,

22 the cost of similar signals in similar pri23 vate and compulsory license marketplaces,

24 and any special features and conditions of

25 the retransmission marketplace;
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1 ‘‘‘(ii) the economic impact of such

2 fees on copyright owners and satellite car3 riers; and

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

5 availability of secondary transmissions to

6 the public.’; and

7 ‘‘(iii) in subparagraph (C), by insert8 ing ‘or July 1, 1997, whichever is later’

9 after ‘section 802(g)’.’’.

10 (3) Section 2(5)(A) is amended to read as fol11 lows:

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

13 date of the enactment of the Satellite Home

14 Viewer Act of 1988’ and inserting ‘November

15 16, 1988’; and’’.

16 SEC. 2. COPYRIGHT IN RESTORED WORKS.

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

18 amended as follows:

19 (1) Subsection (d)(3)(A) is amended to read as

20 follows:

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

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

23 restored work and is created—

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

25 the Uruguay Round Agreements Act, if the
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1 source country of the restored work is an eligi2 ble country on such date, or

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

4 country of the restored work becomes an eligi5 ble country, if that country is not an eligible

6 country on such date of enactment,

7 a reliance party may continue to exploit that deriva8 tive work for the duration of the restored copyright

9 if the reliance party pays to the owner of the re10 stored copyright reasonable compensation for con11 duct which would be subject to a remedy for in12 fringement but for the provisions of this para13 graph.’’.

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

15 striking the last sentence.

16 (3) Subsection (h)(2) is amended to read as fol17 lows:

18 ‘‘(2) The ‘date of restoration’ of a restored

19 copyright is—

20 ‘‘(A) January 1, 1996, if the source coun21 try of the restored work is a nation adhering to

22 the Berne Convention or a WTO member coun23 try on such date, or
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1 ‘‘(B) the date of adherence or proclama2 tion, in the case of any other source country of

3 the restored work.’’.

4 (4) Subsection (h)(3) is amended to read as fol5 lows:

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

7 other than the United States, that—

8 ‘‘(A) becomes a WTO member country

9 after the date of the enactment of the Uruguay

10 Round Agreements Act;

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

12 such date of enactment becomes, a member of

13 the Berne Convention; or

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

15 subject to a proclamation under subsection (g).

16 For purposes of this section, a nation that is a mem17 ber of the Berne Convention on the date of the en18 actment of the Uruguay Round Agreements Act

19 shall be construed to become an eligible country on

20 such date of enactment.’’.

21 SEC. 3. LICENSES FOR NONEXEMPT SUBSCRIPTION TRANS22 MISSIONS.

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

24 amended—
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1 (1) in paragraph (1), by inserting ‘‘, or, if a

2 copyright arbitration royalty panel is convened, end3 ing 30 days after the Librarian issues and publishes

4 in the Federal Register an order adopting the deter5 mination of the copyright arbitration royalty panel

6 or an order setting the terms and rates (if the Li7 brarian rejects the panel’s determination)’’ after

8 ‘‘December 31, 2000’’; and

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

10 in the Federal Register’’.

11 SEC. 4. ROYALTY PAYABLE UNDER COMPULSORY LICENSE.

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

13 is amended by striking ‘‘and publish in the Federal Reg14 ister’’.

15 SEC. 5. NEGOTIATED LICENSE FOR JUKEBOXES.

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

17 amended—

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

19 follows:

20 ‘‘(2) ARBITRATION.—Parties not subject to

21 such a negotiation may determine, by arbitration in

22 accordance with the provisions of chapter 8, the

23 terms and rates and the division of fees described in

24 paragraph (1).’’; and
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1 (2) by adding at the end the following new sub2 section:

3 ‘‘(d) DEFINITIONS.—As used in this section, the fol4 lowing terms mean the following:

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

6 machine or device that—

7 ‘‘(A) is employed solely for the perform8 ance of nondramatic musical works by means of

9 phonorecords upon being activated by the inser10 tion of coins, currency, tokens, or other mone11 tary units or their equivalent;

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

13 no direct or indirect charge for admission;

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

15 comprised of the titles of all the musical works

16 available for performance on it, and is affixed

17 to the phonorecord player or posted in the es18 tablishment in a prominent position where it

19 can be readily examined by the public; and

20 ‘‘(D) affords a choice of works available

21 for performance and permits the choice to be

22 made by the patrons of the establishment in

23 which it is located.

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

25 jointly with others—
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1 ‘‘(A) owns a coin-operated phonorecord

2 player;

3 ‘‘(B) has the power to make a coin-oper4 ated phonorecord player available for placement

5 in an establishment for purposes of public per6 formance; or

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

8 control over the selection of the musical works

9 made available for public performance on a

10 coin-operated phonorecord player.’’.

11 SEC. 6. REGISTRATION AND INFRINGEMENT ACTIONS.

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

13 amended to read as follows:

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

15 than 48 hours before such fixation, identifying the

16 work and the specific time and source of its first

17 transmission, and declaring an intention to secure

18 copyright in the work; and’’.

19 SEC. 7. COPYRIGHT OFFICE FEES.

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

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

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

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

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

25 following manner:
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1 ‘‘(1) The Register shall conduct a study of the

2 costs incurred by the Copyright Office for the reg3 istration of claims, the recordation of documents,

4 and the provision of services. The study shall also

5 consider the timing of any increase in fees and the

6 authority to use such fees consistent with the budg7 et.

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

9 study under paragraph (1), and subject to para10 graph (5), increase fees to not more than that nec11 essary to cover the reasonable costs incurred by the

12 Copyright Office for the services described in para13 graph (1), plus a reasonable inflation adjustment to

14 account for any estimated increase in costs.

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

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

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

18 cents.

19 ‘‘(4) Fees established under this subsection

20 shall be fair and equitable and give due consider21 ation to the objectives of the copyright system.

22 ‘‘(5) If the Register determines under para23 graph (2) that fees should be increased, the Register

24 shall prepare a proposed fee schedule and submit the

25 schedule with the accompanying economic analysis to
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1 the Congress. The fees proposed by the Register

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

3 schedule is submitted to the Congress unless, within

4 that 120-day period, a law is enacted stating in sub5 stance that the Congress does not approve the

6 schedule.’’.

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

8 is amended to read as follows:

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

10 received under this section shall be deposited by the Reg11 ister of Copyrights in the Treasury of the United States

12 and shall be credited to the appropriations for necessary

13 expenses of the Copyright Office. Such fees that are col14 lected shall remain available until expended. The Register

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

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

17 of the fee required by this section.

18 ‘‘(2) In the case of fees deposited against future serv19 ices, the Register of Copyrights shall request the Secretary

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

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

22 as determined by the Register, is not required to meet cur23 rent deposit account demands. Funds from such portion

24 of fees shall be invested in securities that permit funds

25 to be available to the Copyright Office at all times if they
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1 are determined to be necessary to meet current deposit

2 account demands. Such investments shall be in public debt

3 securities with maturities suitable to the needs of the

4 Copyright Office, as determined by the Register of Copy5 rights, and bearing interest at rates determined by the

6 Secretary of the Treasury, taking into consideration cur7 rent market yields on outstanding marketable obligations

8 of the United States of comparable maturities.

9 ‘‘(3) The income on such investments shall be depos10 ited in the Treasury of the United States and shall be

11 credited to the appropriations for necessary expenses of

12 the Copyright Office.’’.

13 SEC. 8. COPYRIGHT ARBITRATION ROYALTY PANELS.

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

15 title 17, United States Code, is amended—

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

17 in the first sentence and inserting ‘‘116, and 119’’;

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

19 at the end of the sentence the following:

20 ‘‘, including—

21 ‘‘(1) authorizing the distribution of those roy22 alty fees collected under sections 111, 119, and

23 1005 that the Librarian has found are not subject

24 to controversy; and
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1 ‘‘(2) accepting or rejecting royalty claims filed

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

3 timeliness or the failure to establish the basis for a

4 claim’’; and

5 (3) by amending subsection (d) to read as fol6 lows:

7 ‘‘(d) SUPPORT AND REIMBURSEMENT OF ARBITRA8 TION PANELS.—The Librarian of Congress, upon the rec9 ommendation of the Register of Copyrights, shall provide

10 the copyright arbitration royalty panels with the necessary

11 administrative services related to proceedings under this

12 chapter, and shall reimburse the arbitrators presiding in

13 distribution proceedings at such intervals and in such

14 manner as the Librarian shall provide by regulation. Each

15 such arbitrator is an independent contractor acting on be16 half of the United States, and shall be hired pursuant to

17 a signed agreement between the Library of Congress and

18 the arbitrator. Payments to the arbitrators shall be consid19 ered reasonable costs incurred by the Library of Congress

20 and the Copyright Office for purposes of section

21 802(h)(1).’’.

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

23 States Code, is amended—

24 (1) in subsection (c) by striking the last sen25 tence; and
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1 (2) in subsection (h) by amending paragraph

2 (1) to read as follows:

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

4 CONGRESS AND COPYRIGHT OFFICE FROM ROYALTY

5 FEES.—The Librarian of Congress and the Register

6 of Copyrights may, to the extent not otherwise pro7 vided under this title, deduct from royalty fees de8 posited or collected under this title the reasonable

9 costs incurred by the Library of Congress and the

10 Copyright Office under this chapter. Such deduction

11 may be made before the fees are distributed to any

12 copyright claimants. In addition, all funds made

13 available by an appropriations Act as offsetting col14 lections and available for deductions under this sub15 section shall remain available until expended. In

16 ratemaking proceedings, the Librarian of Congress

17 and the Copyright Office may assess their reason18 able costs directly to the parties to the most recent

19 relevant arbitration proceeding, 50 percent of the

20 costs to the parties who would receive royalties from

21 the royalty rate adopted in the proceeding and 50

22 percent of the costs to the parties who would pay the

23 royalty rate so adopted.’’.
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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

25 (D) by inserting after the item relating to

26 chapter 9 the following:
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‘‘10. Digital Audio Recording Devices and Media ................. 1001’’.

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

2 of sections at the beginning of chapter 1 is amended

3 to read as follows:

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

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

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

6 ‘‘processs’’ and inserting ‘‘process’’.

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

8 ‘‘pair’’ and inserting ‘‘fair’’.

9 (5) Section 109(a)(2)(B) is amended by strik10 ing ‘‘Copyright’’ and inserting ‘‘Copyrights’’.

11 (6) Section 110 is amended—

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

13 at the end and inserting a semicolon;

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

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

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

17 above’’ and inserting ‘‘(4)’’.

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

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

20 106(1) and (3)’’ each place it appears and in21 serting ‘‘paragraphs (1) and (3) of section

22 106’’; 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 ‘‘unless until’’ 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.

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