II 
Calendar No. 744
108TH CONGRESS 
2D SESSION 
H.R. 1417 
IN THE SENATE OF THE UNITED STATES 
MARCH 4, 2004
Received; read twice and referred to the Committee on the Judiciary 
SEPTEMBER 29, 2004
Reported by Mr. HATCH, with an amendment 
[Strike out all after the enacting clause and insert the part printed in italic] 
A BILL 
To amend title 17, United States Code, to replace copyright 
arbitration royalty panels with Copyright Royalty 
Judges, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Copyright Royalty and 
Distribution Reform Act of 2004’’. 
SEC. 2. REFERENCE. 
Except as otherwise expressly provided, whenever in 
this Act an amendment or repeal is expressed in terms
of an amendment to, or repeal of, a section or other provi-
sion, the reference shall be considered to be made to a 
section or other provision of title 17, United States Code. 
SEC. 3. COPYRIGHT ROYALTY JUDGE AND STAFF. 
(a) IN GENERAL.—Chapter 8 is amended to read as 
follows: 
‘‘CHAPTER 8—PROCEEDINGS BY 
COPYRIGHT ROYALTY JUDGES
‘‘Sec. 
‘‘801. Copyright Royalty Judges; appointment and functions. 
‘‘802. Copyright Royalty Judgeships; staff. 
‘‘803. Proceedings of Copyright Royalty Judges. 
‘‘804. Institution of proceedings. 
‘‘805. General rule for voluntarily negotiated agreements.
‘‘§ 801. Copyright Royalty Judges; appointment and 
functions 
‘‘(a) APPOINTMENT.—The Librarian of Congress 
shall appoint 3 full-time Copyright Royalty Judges, and 
shall appoint one of the three as the Chief Copyright Roy-
alty Judge. In making such appointments, the Librarian 
shall consult with the Register of Copyrights. 
‘‘(b) FUNCTIONS.—Subject to the provisions of this 
chapter, the functions of the Copyright Royalty Judges 
shall be as follows: 
‘‘(1) To make determinations and adjustments 
of reasonable terms and rates of royalty payments as 
provided in sections 112(e), 114, 115, 116, 118, 119 
and
1004.
The
rates
applicable
under
sections
114(f)(1)(B), 115, and 116 shall be calculated to 
achieve the following objectives: 
‘‘(A) To maximize the availability of cre-
ative works to the public. 
‘‘(B) To afford the copyright owner a fair 
return for his or her creative work and the 
copyright user a fair income under existing eco-
nomic conditions. 
‘‘(C) To reflect the relative roles of the 
copyright owner and the copyright user in the 
product made available to the public with re-
spect to relative creative contribution, techno-
logical contribution, capital investment, cost, 
risk, and contribution to the opening of new 
markets for creative expression and media for 
their communication. 
‘‘(D) To minimize any disruptive impact 
on the structure of the industries involved and 
on generally prevailing industry practices. 
‘‘(2) To make determinations concerning the 
adjustment of the copyright royalty rates under sec-
tion 111 solely in accordance with the following pro-
visions: 
‘‘(A)
The
rates
established
by
section 
111(d)(1)(B) may be adjusted to reflect—
by subscriber rate regulating authorities from 
increasing the rates for the basic service of pro-
viding secondary transmissions. 
‘‘(B) In the event that the rules and regu-
lations of the Federal Communications Com-
mission are amended at any time after April 8, 
1976, to permit the carriage by cable systems 
of additional television broadcast signals beyond 
the local service area of the primary transmit-
ters of such signals, the royalty rates estab-
lished by section 111(d)(1)(B) may be adjusted 
to insure that the rates for the additional dis-
tant signal equivalents resulting from such car-
riage are reasonable in the light of the changes 
effected by the amendment to such rules and 
regulations. In determining the reasonableness 
of rates proposed following an amendment of 
Federal Communications Commission rules and 
regulations, the Copyright Royalty Judges shall 
consider, among other factors, the economic im-
pact on copyright owners and users; except that 
no adjustment in royalty rates shall be made 
under this subparagraph with respect to any 
distant signal equivalent or fraction thereof rep-
resented by—
‘‘(i) carriage of any signal permitted 
under the rules and regulations of the Fed-
eral Communications Commission in effect 
on April 15, 1976, or the carriage of a sig-
nal of the same type (that is, independent, 
network,
or
noncommercial
educational) 
substituted for such permitted signal; or 
‘‘(ii) a television broadcast signal first 
carried after April 15, 1976, pursuant to 
an individual waiver of the rules and regu-
lations
of
the
Federal
Communications 
Commission, as such rules and regulations 
were in effect on April 15, 1976. 
‘‘(C) In the event of any change in the 
rules and regulations of the Federal Commu-
nications
Commission
with
respect
to
syn-
dicated and sports program exclusivity after 
April 15, 1976, the rates established by section 
111(d)(1)(B) may be adjusted to assure that 
such
rates
are
reasonable
in
light
of
the 
changes to such rules and regulations, but any 
such adjustment shall apply only to the affected 
television broadcast signals carried on those 
systems affected by the change.
‘‘(D) The gross receipts limitations estab-
lished by section 111(d)(1)(C) and (D) shall be 
adjusted to reflect national monetary inflation 
or deflation or changes in the average rates 
charged cable system subscribers for the basic 
service of providing secondary transmissions to 
maintain the real constant dollar value of the 
exemption provided by such section, and the 
royalty rate specified therein shall not be sub-
ject to adjustment. 
‘‘(3)(A) To authorize the distribution, under 
sections 111, 119, and 1007, of those royalty fees 
collected under sections 111, 119, and 1005, as the 
case may be, to the extent that the Copyright Roy-
alty Judges have found that the distribution of such 
fees is not subject to controversy. 
‘‘(B) In cases where the Copyright Royalty 
Judges determine that controversy exists, the Copy-
right Royalty Judges shall determine the distribu-
tion of such fees, including partial distributions, in 
accordance with section 111, 119, or 1007, as the 
case may be. 
‘‘(C) the Copyright Royalty Judges shall make 
a partial distribution of such fees during the pend-
ency of the proceeding under subparagraph (B) if all
participants under section 803(b)(2) in the pro-
ceeding that are entitled to receive those fees that 
are to be partially distributed—
‘‘(i) agree to such partial distribution; 
‘‘(ii) sign an agreement obligating them to 
return any excess amounts to the extent nec-
essary to comply with the final determination 
on the distribution of the fees made under sub-
paragraph (B); and 
‘‘(iii) file the agreement with the Copyright 
Royalty Judges. 
‘‘(D) The Copyright Royalty Judges and any 
other officer or employee acting in good faith in dis-
tributing funds under subparagraph (C) shall not be 
held liable for the payment of any excess fees under 
subparagraph (C). The Copyright Royalty Judges 
shall, at the time the final determination is made, 
calculate any such excess amounts. 
‘‘(4) To accept or reject royalty claims filed 
under section 111, 119, and 1007, on the basis of 
timeliness or the failure to establish the basis for a 
claim. 
‘‘(5) To accept or reject rate adjustment peti-
tions as provided in section 804 and petitions to par-
ticipate as provided in section 803(b)(1) and (2).
‘‘(6) To determine the status of a digital audio 
recording device or a digital audio interface device 
under sections 1002 and 1003, as provided in sec-
tion 1010. 
‘‘(7)(A) To adopt as the basis for statutory 
terms and rates or as a basis for the distribution of 
statutory
royalty
payments,
an
agreement
con-
cerning such matters reached among some or all of 
the participants in a proceeding at any time during 
the proceeding, except that—
‘‘(i) the Copyright Royalty Judges shall 
provide to the other participants in the pro-
ceeding under section 803(b)(2) that would be 
bound by the terms, rates, distribution, or other 
determination set by the agreement an oppor-
tunity to comment on the agreement and object 
to its adoption as the basis for statutory terms 
and rates or as a basis for the distribution of 
statutory royalty payments, as the case may be; 
and
‘‘(ii) the Copyright Royalty Judges may 
decline to adopt the agreement as the basis for 
statutory terms and rates or as the basis for 
the distribution of statutory royalty payments, 
as the case may be, if any other participant de-
scribed in subparagraph (A) objects to the 
agreement and the Copyright Royalty Judges 
find, based on the record before them, that the 
agreement is not likely to meet the statutory 
standard for setting the terms and rates, or for 
distributing the royalty payments, as the case 
may be.
‘‘(B) License agreements voluntarily negotiated 
pursuant
to
section
112(e)(5),
114(f)(3), 
115(c)(3)(E)(i), 116(c), or 118(b)(2) that do not re-
sult in statutory terms and rates shall not be subject 
to clauses (i) and (ii) of subparagraph (A). 
‘‘(c) RULINGS.—The Copyright Royalty Judges may 
make any necessary procedural or evidentiary rulings in 
any proceeding under this chapter and may, before com-
mencing a proceeding under this chapter, make any such 
rulings that would apply to the proceedings conducted by 
the Copyright Royalty Judges. The Copyright Royalty 
Judges may consult with the Register of Copyrights in 
making any rulings under section 802(f)(1).
‘‘(d) ADMINISTRATIVE SUPPORT.—The Librarian of 
Congress shall provide the Copyright Royalty Judges with 
the necessary administrative services related to pro-
ceedings under this chapter.
‘‘(e) LOCATION IN LIBRARY OF CONGRESS.—The of-
fices of the Copyright Royalty Judges and staff shall be 
in the Library of Congress. 
‘‘§ 802. Copyright Royalty Judgeships; staff 
‘‘(a)
QUALIFICATIONS
OF
COPYRIGHT
ROYALTY 
JUDGES.—Each Copyright Royalty Judge shall be an at-
torney who has at least 7 years of legal experience. The 
Chief Copyright Royalty Judge shall have at least 5 years 
of experience in adjudications, arbitrations, or court trials. 
Of the other two Copyright Royalty Judges, one shall have 
significant knowledge of copyright law, and the other shall 
have significant knowledge of economics. An individual 
may serve as a Copyright Royalty Judge only if the indi-
vidual is free of any financial conflict of interest under 
subsection (h). In this subsection, ‘adjudication’ has the 
meaning given that term in section 551 of title 5, but does 
not include mediation. 
‘‘(b) STAFF.—The Chief Copyright Royalty Judge 
shall hire 3 full-time staff members to assist the Copyright 
Royalty Judges in performing their functions. 
‘‘(c) TERMS.—The terms of the Copyright Royalty 
Judges shall each be 6 years, except of the individuals first 
appointed, the Chief Copyright Royalty Judge shall be ap-
pointed to a term of 6 years, and of the remaining Copy-
right Royalty Judges, one shall be appointed to a term
of 2 years, and the other shall be appointed to a term 
of 4 years. An individual serving as a Copyright Royalty 
Judge may be reappointed to subsequent terms. The term 
of a Copyright Royalty Judge shall begin when the term 
of the predecessor of that Copyright Royalty Judge ends. 
When the term of office of a Copyright Royalty Judge 
ends, the individual serving that term may continue to 
serve until a successor is selected. 
‘‘(d) VACANCIES OR INCAPACITY.—
‘‘(1) VACANCIES.—If a vacancy should occur in 
the position of Copyright Royalty Judge, the Librar-
ian of Congress shall act expeditiously to fill the va-
cancy, and may appoint an interim Copyright Roy-
alty Judge to serve until another Copyright Royalty 
Judge is appointed under this section. An individual 
appointed to fill the vacancy occurring before the ex-
piration of the term for which the predecessor of 
that individual was appointed shall be appointed for 
the remainder of that term. 
‘‘(2) INCAPACITY.—In the case in which a 
Copyright Royalty Judge is temporarily unable to 
perform his or her duties, the Librarian of Congress 
may appoint an interim Copyright Royalty Judge to 
perform such duties during the period of such inca-
pacity.
‘‘(e) COMPENSATION.—
‘‘(1) JUDGES.—The Chief Copyright Royalty 
Judge shall receive compensation at the rate of basic 
pay payable for level AL–1 for administrative law 
judges pursuant to section 5372(b) of title 5, and 
each of the other two Copyright Royalty Judges 
shall receive compensation at the rate of basic pay 
payable for level AL–2 for administrative law judges 
pursuant to such section. The compensation of the 
Copyright Royalty Judges shall not be subject to 
any regulations adopted by the Office of Personnel 
Management pursuant to its authority under section 
5376(b)(1) of title 5. 
‘‘(2) STAFF MEMBERS.—Of the staff members 
appointed under subsection (b)—
‘‘(A) the rate of pay of one staff member 
shall be not more than the basic rate of pay 
payable for GS–15 of the General Schedule; 
‘‘(B) the rate of pay of one staff member 
shall be not less than the basic rate of pay pay-
able for GS–13 of the General Schedule and not 
more than the basic rate of pay payable for 
GS–14 of such Schedule; and 
‘‘(C) the rate of pay for the third staff 
member shall be not less than the basic rate of
pay payable for GS–8 of the General Schedule 
and not more than the basic rate of pay payable 
for GS–11 of such Schedule. 
‘‘(f)
INDEPENDENCE
OF
COPYRIGHT
ROYALTY 
JUDGE.—
‘‘(1) IN MAKING DETERMINATIONS.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), the Copyright Royalty Judges shall 
have full independence in making determina-
tions concerning adjustments and determina-
tions of copyright royalty rates and terms, the 
distribution of copyright royalties, the accept-
ance or rejection of royalty claims, rate adjust-
ment petitions, and petitions to participate, and 
in issuing other rulings under this title, except 
that the Copyright Royalty Judges may consult 
with the Register of Copyrights on any matter 
other than a question of fact. Any such con-
sultations
between
the
Copyright
Royalty 
Judges and the Register of Copyright on any 
question of law shall be in writing or on the 
record. 
‘‘(B)
NOVEL
QUESTIONS.—(i)
Notwith-
standing the provisions of subparagraph (A), in 
any case in which the Copyright Royalty Judges
in a proceeding under this title are presented 
with a novel question of law concerning an in-
terpretation of those provisions of this title that 
are the subject of the proceeding, the Copyright 
Royalty Judges shall request the Register of 
Copyrights, in writing, to submit a written 
opinion on the resolution of such novel question. 
The Register shall submit and make public that 
opinion within such time period as the Copy-
right Royalty Judges may prescribe. Any con-
sultations under this subparagraph between the 
Copyright Royalty Judges and the Register of 
Copyrights shall be in writing or on the record. 
The opinion of the Register shall not be binding 
on the Copyright Royalty Judges, but the Copy-
right Royalty Judges shall take the opinion of 
the Register into account in making the judges’ 
determination on the question concerned. 
‘‘(ii) In clause (i), a ‘novel question of law’ 
is a question of law that has not been deter-
mined in prior decisions, determinations, and 
rulings described in section 803(a). 
‘‘(2) PERFORMANCE APPRAISALS.—
‘‘(A) IN GENERAL.—Notwithstanding any 
other provision of law or any regulation of the
Library of Congress, and subject to subpara-
graph (B), the Copyright Royalty Judges shall 
not receive performance appraisals. 
‘‘(B)
RELATING
TO
SANCTION
OR
RE-
MOVAL.—To the extent that the Librarian of 
Congress adopts regulations under subsection 
(h) relating to the sanction or removal of a 
Copyright Royalty Judge and such regulations 
require documentation to establish the cause of 
such sanction or removal, the Copyright Roy-
alty Judge may receive an appraisal related 
specifically to the cause of the sanction or re-
moval. 
‘‘(g) INCONSISTENT DUTIES BARRED.—No Copy-
right Royalty Judge may undertake duties inconsistent 
with his or her duties and responsibilities as Copyright 
Royalty Judge. 
‘‘(h) STANDARDS OF CONDUCT.—The Librarian of 
Congress shall adopt regulations regarding the standards 
of conduct, including financial conflict of interest and re-
strictions against ex parte communications, which shall 
govern the Copyright Royalty Judges and the proceedings 
under this chapter. 
‘‘(i) REMOVAL OR SANCTION.—The Librarian of Con-
gress may sanction or remove a Copyright Royalty Judge
for violation of the standards of conduct adopted under 
subsection (h), misconduct, neglect of duty, or any dis-
qualifying physical or mental disability. Any such sanction 
or removal may be made only after notice and opportunity 
for a hearing, but the Librarian of Congress may suspend 
the Copyright Royalty Judge during the pendency of such 
hearing. The Librarian shall appoint an interim Copyright 
Royalty Judge during the period of any such suspension. 
‘‘§ 803. Proceedings of Copyright Royalty Judges 
‘‘(a) PROCEEDINGS.—
‘‘(1)
IN
GENERAL.—The
Copyright
Royalty 
Judges shall act in accordance with this title, and to 
the extent not inconsistent with this title, in accord-
ance with subchapter II of chapter 5 of title 5, in 
carrying out the purposes set forth in section 801. 
The Copyright Royalty Judges shall act in accord-
ance with regulations issued by the Copyright Roy-
alty Judges and on the basis of a fully documented 
written record, prior decisions of the Copyright Roy-
alty Tribunal, prior copyright arbitration royalty 
panel determinations, rulings by the Librarian of 
Congress before the effective date of the Copyright 
Royalty and Distribution Reform Act of 2004, prior 
determinations of Copyright Royalty Judges under 
this chapter, and decisions of the court in appeals
under this chapter before, on, or after such effective 
date. Any participant in a proceeding under sub-
section (b)(2) may submit relevant information and 
proposals to the Copyright Royalty Judges. 
‘‘(2) JUDGES ACTING AS PANEL AND INDIVID-
UALLY.—The Copyright Royalty Judges shall pre-
side over hearings in proceedings under this chapter 
en banc. The Chief Copyright Royalty Judge may 
designate a Copyright Royalty Judge to preside indi-
vidually over such collateral and administrative pro-
ceedings, and over such proceedings under para-
graphs (1) through (5) of subsection (b), as the 
Chief Judge considers appropriate. 
‘‘(3) DETERMINATIONS.—Final determinations 
of the Copyright Royalty Judges in proceedings 
under this chapter shall be made by majority vote. 
A Copyright Royalty Judge dissenting from the ma-
jority on any determination under this chapter may 
issue his or her dissenting opinion, which shall be in-
cluded with the determination. 
‘‘(b) PROCEDURES.—
‘‘(1) INITIATION.—
‘‘(A) CALL
FOR
PETITIONS
TO
PARTICI-
PATE.—(i) Promptly upon the filing of a peti-
tion for a rate adjustment or determination
under section 804(a) or 804(b)(8), or by no 
later than January 5 of a year specified in sec-
tion 804 for the commencement of a proceeding 
if a petition has not been filed by that date, the 
Copyright Royalty Judges shall cause to be 
published in the Federal Register notice of com-
mencement of proceedings under this chapter 
calling for the filing of petitions to participate 
in a proceeding under this chapter for the pur-
pose
of
making
the
relevant
determination 
under section 111, 112, 114, 115, 116, 118, 
119, 1004 or 1007, as the case may be. 
‘‘(ii) Petitions to participate shall be filed 
by no later than 30 days after publication of 
notice of commencement of a proceeding, under 
clause (i), except that the Copyright Royalty 
Judges may, for substantial good cause shown 
and if there is no prejudice to the participants 
that have already filed petitions, accept late pe-
titions to participate at any time up to the date 
that is 90 days before the date on which par-
ticipants in the proceeding are to file their writ-
ten direct statements. 
‘‘(B) PETITIONS TO PARTICIPATE.—Each 
petition to participate in a proceeding shall de-
scribe the petitioner’s interest in the subject 
matter of the proceeding. Parties with similar 
interests may file a single petition to partici-
pate. 
‘‘(2) PARTICIPATION IN GENERAL.—Subject to 
paragraph (4), a person may participate in a pro-
ceeding under this chapter, including through the 
submission of briefs or other information, only if—
‘‘(A) that person has filed a petition to 
participate in accordance with paragraph (1) 
(either individually or as a group under para-
graph (1)(B)), together with a filing fee of 
$150; 
‘‘(B) the Copyright Royalty Judges have 
not determined that the petition to participate 
is facially invalid; and 
‘‘(C) the Copyright Royalty Judges have 
not determined, sua sponte or on the motion of 
another participant in the proceeding, that the 
person lacks a significant interest in the pro-
ceeding. 
‘‘(3) VOLUNTARY NEGOTIATION PERIOD.—
‘‘(A) IN
GENERAL.—Promptly after the 
date for filing of petitions to participate in a 
proceeding, the Copyright Royalty Judges shall
make available to all participants in the pro-
ceeding a list of such participants and shall ini-
tiate a voluntary negotiation period among the 
participants. 
‘‘(B) LENGTH OF PROCEEDINGS.—The vol-
untary negotiation period initiated under sub-
paragraph (A) shall be 3 months. 
‘‘(C)
DETERMINATION
OF
SUBSEQUENT 
PROCEEDINGS.—At the close of the voluntary 
negotiation proceedings, the Copyright Royalty 
Judges shall, if further proceedings under this 
chapter are necessary, determine whether and 
to what extent paragraphs (4) and (5) will 
apply to the parties. 
‘‘(4) SMALL CLAIMS PROCEDURE IN DISTRIBU-
TION PROCEEDINGS.—
‘‘(A) IN
GENERAL.—If, in a proceeding 
under this chapter to determine the distribution 
of royalties, a participant in the proceeding as-
serts that the contested amount of the claim is 
$10,000 or less, the Copyright Royalty Judges 
shall decide the controversy on the basis of the 
filing in writing of the initial claim, the initial 
response by any opposing participant, and one 
additional response by each such party. The
participant asserting the claim shall not be re-
quired to pay the filing fee under paragraph 
(2). 
‘‘(B) BAD FAITH INFLATION OF CLAIM.—
If the Copyright Royalty Judges determine that 
a participant asserts in bad faith an amount in 
controversy in excess of $10,000 for the pur-
pose of avoiding a determination under the pro-
cedure set forth in subparagraph (A), the Copy-
right Royalty Judges shall impose a fine on 
that participant in an amount not to exceed the 
difference between the actual amount distrib-
uted and the amount asserted by the partici-
pant. 
‘‘(5)
PAPER
PROCEEDINGS
IN
RATEMAKING 
PROCEEDINGS.—The Copyright Royalty Judges in 
proceedings under this chapter to determine royalty 
rates may decide, sua sponte or upon motion of a 
participant, to determine issues on the basis of ini-
tial filings in writing, initial responses by any oppos-
ing participant, and one additional response by each 
such participant. Prior to making such decision to 
proceed on such a paper record only, the Copyright 
Royalty Judges shall offer to all parties to the pro-
ceeding the opportunity to comment on the decision. 
The procedure under this paragraph—
‘‘(A) shall be applied in cases in which 
there is no genuine issue of material fact, there 
is no need for evidentiary hearings, and all par-
ticipants in the proceeding agree in writing to 
the procedure; and 
‘‘(B) may be applied under such other cir-
cumstances as the Copyright Royalty Judges 
consider appropriate. 
‘‘(6) REGULATIONS.—
‘‘(A) IN GENERAL.—The Copyright Roy-
alty Judges may issue regulations to carry out 
their functions under this title. Not later than 
120 days after Copyright Royalty Judges or in-
terim Copyright Royalty Judges, as the case 
may be, are first appointed after the enactment 
of the Copyright Royalty and Distribution Re-
form Act of 2004, such judges shall issue regu-
lations to govern proceedings under this chap-
ter. 
‘‘(B) INTERIM REGULATIONS.—Until regu-
lations are adopted under subparagraph (A), 
the Copyright Royalty Judges shall apply the 
regulations in effect under this chapter on the
day before the effective date of the Copyright 
Royalty and Distribution Reform Act of 2004, 
to the extent such regulations are not incon-
sistent with this chapter, except that functions 
carried out under such regulations by the Li-
brarian of Congress, the Register of Copyrights, 
or copyright arbitration royalty panels that, as 
of such date of enactment, are to be carried out 
by the Copyright Royalty Judges under this 
chapter, shall be carried out by the Copyright 
Royalty Judges under such regulations. 
‘‘(C) REQUIREMENTS.—Regulations issued 
under subparagraph (A) shall include the fol-
lowing: 
‘‘(i) The written direct statements of 
all
participants
in
a
proceeding
under 
paragraph (2) shall be filed by a date spec-
ified by the Copyright Royalty Judges, 
which may be no earlier than four months, 
and no later than five months, after the 
end of the voluntary negotiation period 
under paragraph (3). Notwithstanding the 
preceding sentence, a participant in a pro-
ceeding may, within 15 days after the end 
of the discovery period specified in clause
(iii), file an amended written direct state-
ment based on new information received 
during the discovery process. 
‘‘(ii)(I) Following the submission to 
the Copyright Royalty Judges of written 
direct statements by the participants in a 
proceeding
under
paragraph
(2),
the 
judges shall meet with the participants for 
the purpose of setting a schedule for con-
ducting and completing discovery. Such 
schedule shall be determined by the Copy-
right Royalty Judges. 
‘‘(II) In this chapter, the term ‘writ-
ten direct statements’ means witness state-
ments, testimony, and exhibits to be pre-
sented in the proceedings, and such other 
information that is necessary to establish 
terms and rates, or the distribution of roy-
alty payments, as the case may be, as set 
forth in regulations issued by the Copy-
right Royalty Judges.
‘‘(iii) Hearsay may be admitted in 
proceedings under this chapter to the ex-
tent deemed appropriate by the Copyright 
Royalty Judges.
‘‘(iv) Discovery in such proceedings 
shall be permitted for a period of 60 days, 
except for discovery ordered by the Copy-
right Royalty Judges in connection with 
the resolution of motions, orders and dis-
putes pending at the end of such period.
‘‘(v) Any participant under paragraph 
(2) in a proceeding under this chapter to 
determine royalty rates may, upon written 
notice, seek discovery of information and 
materials relevant and material to the pro-
ceeding. Any objection to any such dis-
covery request shall be resolved by a mo-
tion or request to compel discovery made 
to the Copyright Royalty Judges. Each 
motion or request to compel discovery shall 
be determined by the Copyright Royalty 
Judges, or by a Copyright Royalty Judge 
when permitted under subsection (a)(2), 
who may approve the request only if the 
evidence that would be produced is relevant 
and material. A Copyright Royalty Judge 
may refuse a request to compel discovery 
of evidence that has been found to be rel-
evant and material, only upon good cause
shown. For purposes of the preceding sen-
tence, the basis for ‘good cause’ may only 
be that—
‘‘(I) the discovery sought is un-
reasonably cumulative or duplicative, 
or is obtainable from another source 
that is more convenient, less burden-
some, or less expensive; 
‘‘(II) the participant seeking dis-
covery has had ample opportunity by 
discovery in the action to obtain the 
information sought; or 
‘‘(III) the burden or expense of 
the proposed discovery outweighs its 
likely benefit, taking into account the 
needs and resources of the partici-
pants, the importance of the issues at 
stake, and the importance of the pro-
posed
discovery
in
resolving
the 
issues. 
‘‘(vi) The rules in effect on the day 
before the effective date of the Copyright 
Royalty and Distribution Reform Act of 
2004, relating to discovery in proceedings 
under this title to determine the distribu-
tion of royalty fees, shall continue to apply 
to such proceedings on and after such ef-
fective date. 
‘‘(vii) The Copyright Royalty Judges 
may issue subpoenas requiring the produc-
tion of evidence or witnesses, but only if 
the evidence requested to be produced or 
that would be proffered by the witness is 
relevant and material. 
‘‘(viii) The Copyright Royalty Judges 
shall order a settlement conference among 
the participants in the proceeding to facili-
tate the presentation of offers of settle-
ment among the participants. The settle-
ment conference shall be held during a 21-
day period following the end of the dis-
covery period. 
‘‘(c)
DETERMINATION
OF
COPYRIGHT
ROYALTY 
JUDGES.—
‘‘(1) TIMING.—The Copyright Royalty Judges 
shall issue their determination in a proceeding not 
later than 11 months after the conclusion of the 21-
day settlement conference period under subsection 
(b)(3)(C)(vi), but, in the case of a proceeding to de-
termine successors to rates or terms that expire on
a specified date, in no event later than 15 days be-
fore the expiration of the then current statutory 
rates and terms. 
‘‘(2) REHEARINGS.—
‘‘(A) IN GENERAL.—The Copyright Roy-
alty Judges may, in exceptional cases, upon mo-
tion of a participant under subsection (b)(2), 
order a rehearing, after the determination in a 
proceeding is issued under paragraph (1), on 
such matters as the Copyright Royalty Judges 
determine to be appropriate. 
‘‘(B) TIMING FOR FILING MOTION.—Any 
motion for a rehearing under subparagraph (A) 
may only be filed within 15 days after the date 
on which the Copyright Royalty Judges deliver 
their initial determination concerning rates and 
terms to the participants in the proceeding. 
‘‘(C) PARTICIPATION BY OPPOSING PARTY 
NOT REQUIRED.—In any case in which a re-
hearing is ordered, any opposing party shall not 
be required to participate in the rehearing. 
‘‘(D) NO NEGATIVE INFERENCE.—No neg-
ative inference shall be drawn from lack of par-
ticipation in a rehearing.
‘‘(E)
CONTINUITY
OF
RATES
AND 
TERMS.—(i) If the decision of the Copyright 
Royalty Judges on any motion for a rehearing 
is not rendered before the expiration of the 
statutory rates and terms that were previously 
in effect, in the case of a proceeding to deter-
mine successors to rates and terms that expire 
on a specified date, then—
‘‘(I) the initial determination of the 
Copyright Royalty Judges that is the sub-
ject of the rehearing motion shall be effec-
tive as of the day following the date on 
which the rates and terms that were pre-
viously in effect expire; and 
‘‘(II) in the case of a proceeding 
under section 114(f)(1)(C) or 114(f)(2)(C), 
royalty rates and terms shall, for purposes 
of section 114(f)(4)(B), be deemed to have 
been set at those rates and terms con-
tained in the initial determination of the 
Copyright Royalty Judges that is the sub-
ject of the rehearing motion, as of the date 
of that determination. 
‘‘(ii) The pendency of a motion for a re-
hearing under this paragraph shall not relieve
persons obligated to make royalty payments 
who would be affected by the determination on 
that motion from providing the statements of 
account and any reports of use, to the extent 
required, and paying the royalties required 
under the relevant determination or regulations. 
‘‘(iii) Notwithstanding clause (ii), whenever 
royalties described in clause (ii) are paid to a 
person other than the Copyright Office, the en-
tity
designated
by
the
Copyright
Royalty 
Judges to which such royalties are paid by the 
copyright
user
(and
any
successor
thereto) 
shall, within 60 days after the motion for re-
hearing is resolved or, if the motion is granted, 
within 60 days after the rehearing is concluded, 
return any excess amounts previously paid to 
the extent necessary to comply with the final 
determination of royalty rates by the Copyright 
Royalty Judges. 
‘‘(3) CONTENTS OF DETERMINATION.—A deter-
mination of the Copyright Royalty Judges shall be 
accompanied by the written record, and shall set 
forth the facts that the Copyright Royalty Judges 
found relevant to their determination. Among other 
terms adopted in a determination, the Copyright
Royalty Judges may specify notice and record-
keeping requirements of users of the copyrights at 
issue that apply in lieu of those that would otherwise 
apply under regulations. 
‘‘(4) CONTINUING
JURISDICTION.—The Copy-
right Royalty Judges may amend the determination 
or the regulations issued pursuant to the determina-
tion in order to correct any technical errors in the 
determination
or
to
respond
to
unforeseen
cir-
cumstances that preclude the proper effectuation of 
the determination. 
‘‘(5) PROTECTIVE ORDER.—The Copyright Roy-
alty Judges may issue such orders as may be appro-
priate to protect confidential information, including 
orders excluding confidential information from the 
record of the determination that is published or 
made available to the public, except that any terms 
or rates of royalty payments or distributions may 
not be excluded. 
‘‘(6) PUBLICATION OF DETERMINATION.—The 
Librarian of Congress shall cause the determination, 
and any corrections thereto, to be published in the 
Federal Register. The Librarian of Congress shall 
also publicize the determination and corrections in 
such other manner as the Librarian considers appro-
priate, including, but not limited to, publication on 
the Internet. The Librarian of Congress shall also 
make the determination, corrections, and the accom-
panying record available for public inspection and 
copying. 
‘‘(d) JUDICIAL REVIEW.—
‘‘(1) APPEAL.—Any determination of the Copy-
right Royalty Judges under subsection (c) may, 
within 30 days after the publication of the deter-
mination in the Federal Register, be appealed, to the 
United States Court of Appeals for the District of 
Columbia Circuit, by any aggrieved participant in 
the proceeding under subsection (b)(2) who fully 
participated in the proceeding and who would be 
bound by the determination. If no appeal is brought 
within that 30-day period, the determination of the 
Copyright Royalty Judges shall be final, and the 
royalty fee or determination with respect to the dis-
tribution of fees, as the case may be, shall take ef-
fect as set forth in paragraph (2). 
‘‘(2) EFFECT OF RATES.—
‘‘(A) EXPIRATION ON SPECIFIED DATE.—
When this title provides that the royalty rates 
and terms that were previously in effect are to 
expire on a specified date, any adjustment or
determination by the Copyright Royalty Judges 
of successor rates and terms for an ensuing 
statutory license period shall be effective as of 
the day following the date of expiration of the 
rates and terms that were previously in effect, 
even if the determination of the Copyright Roy-
alty Judges is rendered on a later date. 
‘‘(B) OTHER CASES.—In cases where rates 
and terms do not expire on a specified date or 
have not yet been established, successor or new 
rates or terms shall take effect on the first day 
of the second month that begins after the publi-
cation of the determination of the Copyright 
Royalty Judges in the Federal Register, except 
as otherwise provided in this title, and the rates 
and terms previously in effect, to the extent ap-
plicable, shall remain in effect until such suc-
cessor rates and terms become effective. 
‘‘(C) OBLIGATION TO MAKE PAYMENTS.—
(i) The pendency of an appeal under this sub-
section shall not relieve persons obligated to 
make royalty payments under section 111, 112, 
114, 115, 116, 118, 119, or 1003, who would 
be affected by the determination on appeal, 
from providing the statements of account (and
any report of use, to the extent required) and 
paying the royalties required under the relevant 
determination or regulations. 
‘‘(ii) Notwithstanding clause (i), whenever 
royalties described in clause (i) are paid to a 
person other than the Copyright Office, the en-
tity
designated
by
the
Copyright
Royalty 
Judges to which such royalties are paid by the 
copyright
user
(and
any
successor
thereto) 
shall, within 60 days after the final resolution 
of the appeal, return any excess amounts pre-
viously paid (and interest thereon, if ordered 
pursuant to paragraph (3)) to the extent nec-
essary to comply with the final determination of 
royalty rates on appeal. 
‘‘(3) JURISDICTION OF COURT.—If the court, 
pursuant to section 706 of title 5, modifies or va-
cates a determination of the Copyright Royalty 
Judges, the court may enter its own determination 
with respect to the amount or distribution of royalty 
fees and costs, and order the repayment of any ex-
cess fees, the payment of any underpaid fees, and 
the payment of interest pertaining respectively there-
to, in accordance with its final judgment. The court 
may also vacate the determination of the Copyright
Royalty Judges and remand the case to the Copy-
right Royalty Judges for further proceedings in ac-
cordance with subsection (a). 
‘‘(e) ADMINISTRATIVE MATTERS.—
‘‘(1) DEDUCTION
OF
COSTS
OF
LIBRARY
OF 
CONGRESS
AND
COPYRIGHT
OFFICE
FROM
FILING 
FEES.—
‘‘(A) DEDUCTION
FROM
FILING
FEES.—
The Librarian of Congress may, to the extent 
not otherwise provided under this title, deduct 
from the filing fees collected under subsection 
(b) for a particular proceeding under this chap-
ter the reasonable costs incurred by the Librar-
ian of Congress, the Copyright Office, and the 
Copyright Royalty Judges in conducting that 
proceeding, other than the salaries of the Copy-
right Royalty Judges and the 3 staff members 
appointed under section 802(b).
‘‘(B)
AUTHORIZATION
OF
APPROPRIA-
TIONS.—There are authorized to be appro-
priated such sums as may be necessary to pay 
the costs of proceedings under this chapter not 
covered by the filing fees collected under sub-
section (b). All funds made available pursuant
to this subparagraph shall remain available 
until expended. 
‘‘(2) POSITIONS
REQUIRED
FOR
ADMINISTRA-
TION OF COMPULSORY LICENSING.—Section 307 of 
the Legislative Branch Appropriations Act, 1994, 
shall not apply to employee positions in the Library 
of Congress that are required to be filled in order 
to carry out section 111, 112, 114, 115, 116, 118, 
or 119 or chapter 10. 
‘‘§ 804. Institution of proceedings 
‘‘(a) FILING OF PETITION.—With respect to pro-
ceedings referred to in paragraphs (1) and (2) of section 
801(b) concerning the determination or adjustment of roy-
alty rates as provided in sections 111, 112, 114, 115, 116, 
118, and 1004, during the calendar years specified in the 
schedule set forth in subsection (b), any owner or user 
of a copyrighted work whose royalty rates are specified 
by this title, or are established under this chapter before 
or after the enactment of the Copyright Royalty and Dis-
tribution Reform Act of 2004, may file a petition with the 
Copyright Royalty Judges declaring that the petitioner re-
quests a determination or adjustment of the rate. The 
Copyright Royalty Judges shall make a determination as 
to whether the petitioner has such a significant interest 
in the royalty rate in which a determination or adjustment
is requested. If the Copyright Royalty Judges determine 
that the petitioner has such a significant interest, the 
Copyright Royalty Judges shall cause notice of this deter-
mination, with the reasons therefor, to be published in the 
Federal Register, together with the notice of commence-
ment of proceedings under this chapter. With respect to 
proceedings under paragraph (1) of section 801(b) con-
cerning the determination or adjustment of royalty rates 
as provided in sections 112 and 114, during the calendar 
years specified in the schedule set forth in subsection (b), 
the Copyright Royalty Judges shall cause notice of com-
mencement of proceedings under this chapter to be pub-
lished in the Federal Register as provided in section 
803(b)(1)(A). 
‘‘(b) TIMING OF PROCEEDINGS.—
‘‘(1) SECTION 111 PROCEEDINGS.—(A) A peti-
tion described in subsection (a) to initiate pro-
ceedings under section 801(b)(2) concerning the ad-
justment of royalty rates under section 111 to which 
subparagraph (A) or (D) of section 801(b)(2) ap-
plies may be filed during the year 2005 and in each 
subsequent fifth calendar year. 
‘‘(B) In order to initiate proceedings under sec-
tion 801(b)(2) concerning the adjustment of royalty 
rates under section 111 to which subparagraph (B)
or (C) of section 801(b)(2) applies, within 12 
months after an event described in either of those 
subsections, any owner or user of a copyrighted 
work whose royalty rates are specified by section 
111, or by a rate established under this chapter be-
fore or after the enactment of the Copyright Royalty 
and Distribution Reform Act of 2004, may file a pe-
tition with the Copyright Royalty Judges declaring 
that the petitioner requests an adjustment of the 
rate. The Copyright Royalty Judges shall then pro-
ceed as set forth in subsection (a) of this section. 
Any change in royalty rates made under this chapter 
pursuant to this subparagraph may be reconsidered 
in the year 2005, and each fifth calendar year there-
after, in accordance with the provisions in section 
801(b)(3)(B) or (C), as the case may be. A petition 
for adjustment of rates under section 11(d)(1)(B) as 
a result of a change is the rules and regulations of 
the Federal Communications Commission shall set 
forth the change on which the petition is based. 
‘‘(C) Any adjustment of royalty rates under sec-
tion 111 shall take effect as of the first accounting 
period commencing after the publication of the de-
termination of the Copyright Royalty Judges in the
Federal Register, or on such other date as is speci-
fied in that determination. 
‘‘(2) CERTAIN
SECTION
112
PROCEEDINGS.—
Proceedings under this chapter shall be commenced 
in the year 2007 to determine reasonable terms and 
rates of royalty payments for the activities described 
in section 112(e)(1) relating to the limitation on ex-
clusive rights specified by section 114(d)(1)(C)(iv), 
to become effective on January 1, 2009. Such pro-
ceedings shall be repeated in each subsequent fifth 
calendar year. 
‘‘(3) SECTION
114
AND
CORRESPONDING
112 
PROCEEDINGS.—
‘‘(A)
FOR
ELIGIBLE
NONSUBSCRIPTION 
SERVICES AND NEW SUBSCRIPTION SERVICES.—
Proceedings under this chapter shall be com-
menced as soon as practicable after the effective 
date of the Copyright Royalty and Distribution 
Reform Act of 2004 to determine reasonable 
terms and rates of royalty payments under sec-
tions 114 and 112 for the activities of eligible 
nonsubscription transmission services and new 
subscription services, to be effective for the pe-
riod beginning on January 1, 2006, and ending 
on December 31, 2010. Such proceedings shall
next be commenced in January 2009 to deter-
mine reasonable terms and rates of royalty pay-
ments, to become effective on January 1, 2011. 
Thereafter, such proceedings shall be repeated 
in each subsequent fifth calendar year. 
‘‘(B)
FOR
PREEXISTING
SUBSCRIPTION 
AND SATELLITE DIGITAL AUDIO RADIO SERV-
ICES.—Proceedings under this chapter shall be 
commenced in January 2006 to determine rea-
sonable terms and rates of royalty payments 
under sections 114 and 112 for the activities of 
preexisting subscription services, to be effective 
during the period beginning on January 1, 
2008, and ending on December 31, 2012, and 
preexisting satellite digital audio radio services, 
to be effective during the period beginning on 
January 1, 2007, and ending on December 31, 
2012. Such proceedings shall next be com-
menced in 2011 to determine reasonable terms 
and rates of royalty payments, to become effec-
tive on January 1, 2013. Thereafter, such pro-
ceedings shall be repeated in each subsequent 
fifth calendar year. 
‘‘(C)(i) Notwithstanding any other provi-
sion of this chapter, this subparagraph shall
govern proceedings commenced pursuant to sec-
tions 114(f)(1)(C) and 114(f)(2)(C) concerning 
new types of services. 
‘‘(ii) Not later than 30 days after a peti-
tion to determine rates and terms for a new 
type of service that is filed by any copyright 
owner of sound recordings, or such new type of 
service, indicating that such new type of service 
is or is about to become operational, the Copy-
right Royalty Judges shall issue a notice for a 
proceeding to determine rates and terms for 
such service. 
‘‘(iii)
The
proceeding
shall
follow
the 
schedule set forth in such subsections (b), (c), 
and (d) of section 803, except that—
‘‘(I) the determination shall be issued 
by not later than 24 months after the pub-
lication of the notice under clause (ii); and 
‘‘(II) the decision shall take effect as 
provided in subsections (c)(2) and (d)(2) of 
section 803 and section 114(f)(4)(B)(ii) 
and (C). 
‘‘(iv) The rates and terms shall remain in 
effect
for
the
period
set
forth
in
section
114(f)(1)(C) or 114(f)(2)(C), as the case may 
be. 
‘‘(4) SECTION
115
PROCEEDINGS.—A petition 
described in subsection (a) to initiate proceedings 
under section 801(b)(1) concerning the adjustment 
or determination of royalty rates as provided in sec-
tion 115 may be filed in the year 2006 and in each 
subsequent fifth calendar year, or at such other 
times as the parties have agreed under section 
115(c)(3)(B) and (C). 
‘‘(5) SECTION 116 PROCEEDINGS.—(A) A peti-
tion described in subsection (a) to initiate pro-
ceedings under section 801(b) concerning the deter-
mination of royalty rates and terms as provided in 
section 116 may be filed at any time within 1 year 
after negotiated licenses authorized by section 116 
are terminated or expire and are not replaced by 
subsequent agreements. 
‘‘(B) If a negotiated license authorized by sec-
tion 116 is terminated or expires and is not replaced 
by another such license agreement which provides 
permission to use a quantity of musical works not 
substantially smaller than the quantity of such 
works performed on coin-operated phonorecord play-
ers during the 1-year period ending March 1, 1989,
the Copyright Royalty Judges shall, upon petition 
filed under paragraph (1) within 1 year after such 
termination or expiration, commence a proceeding to 
promptly establish an interim royalty rate or rates 
for the public performance by means of a coin-oper-
ated phonorecord player of nondramatic musical 
works embodied in phonorecords which had been 
subject to the terminated or expired negotiated li-
cense agreement. Such rate or rates shall be the 
same as the last such rate or rates and shall remain 
in force until the conclusion of proceedings by the 
Copyright Royalty Judges, in accordance with sec-
tion 803, to adjust the royalty rates applicable to 
such works, or until superseded by a new negotiated 
license agreement, as provided in section 116(b).
‘‘(6) SECTION
118
PROCEEDINGS.—A petition 
described in subsection (a) to initiate proceedings 
under section 801(b)(1) concerning the determina-
tion of reasonable terms and rates of royalty pay-
ments as provided in section 118 may be filed in the 
year 2006 and in each subsequent fifth calendar 
year. 
‘‘(7) SECTION 1004 PROCEEDINGS.—A petition 
described in subsection (a) to initiate proceedings 
under section 801(b)(1) concerning the adjustment
of reasonable royalty rates under section 1004 may 
be filed as provided in section 1004(a)(3). 
‘‘(8) PROCEEDINGS CONCERNING DISTRIBUTION 
OF
ROYALTY
FEES.—With respect to proceedings 
under section 801(b)(3) concerning the distribution 
of royalty fees in certain circumstances under sec-
tion 111, 116, 119, or 1007, the Copyright Royalty 
Judges shall, upon a determination that a con-
troversy exists concerning such distribution, cause to 
be published in the Federal Register notice of com-
mencement of proceedings under this chapter. 
‘‘§ 805. General rule for voluntarily negotiated agree-
ments 
‘‘Any rates or terms under this title that—
‘‘(1) are agreed to by participants to a pro-
ceeding under section 803(b)(2), 
‘‘(2) are adopted by the Copyright Royalty 
Judges as part of a determination under this chap-
ter, and 
‘‘(3) are in effect for a period shorter than 
would otherwise apply under a determination pursu-
ant to this chapter, 
shall remain in effect for such period of time as would 
otherwise apply under such determination, except that the 
Copyright Royalty Judges shall adjust the rates pursuant
to the voluntary negotiations to reflect national monetary 
inflation during the additional period the rates remain in 
effect.’’. 
(b) CONFORMING AMENDMENT.—The table of chap-
ters for title 17, United States Code, is amended by strik-
ing the item relating to chapter 8 and inserting the fol-
lowing:
‘‘8. Proceedings by Copyright Royalty Judges .......................
801’’.
SEC. 4. DEFINITION. 
Section 101 is amended by inserting after the defini-
tion of ‘‘copies’’ the following: 
‘‘A ‘Copyright Royalty Judge’ is a Copyright 
Royalty Judge appointed under section 802 of this 
title, and includes any individual serving as an in-
terim Copyright Royalty Judge under such section.’’. 
SEC. 5. TECHNICAL AMENDMENTS. 
(a) CABLE RATES.—Section 111(d) is amended—
(1) in paragraph (2), in the second sentence, by 
striking ‘‘a copyright arbitration royalty panel’’ and 
inserting ‘‘the Copyright Royalty Judges.’’; and 
(2) in paragraph (4)—
(A) in subparagraph (A), by striking ‘‘Li-
brarian of Congress’’ each place it appears and 
inserting ‘‘Copyright Royalty Judges’’; 
(B) in subparagraph (B)—
(i) in the first sentence, by striking 
‘‘Librarian of Congress shall, upon the rec-
ommendation of the Register of Copy-
rights,’’ and inserting ‘‘Copyright Royalty 
Judges shall’’; 
(ii) in the second sentence, by striking 
‘‘Librarian
determines’’
and
inserting 
‘‘Copyright
Royalty
Judges
determine’’; 
and 
(iii) in the third sentence—
(I) by striking ‘‘Librarian’’ each 
place it appears and inserting ‘‘Copy-
right Royalty Judges’’; and 
(II) by striking ‘‘convene a copy-
right arbitration royalty panel’’ and 
inserting ‘‘conduct a proceeding’’; and 
(C) in subparagraph (C), by striking ‘‘Li-
brarian of Congress’’ and inserting ‘‘Copyright 
Royalty Judges’’.
(b) EPHEMERAL RECORDINGS.—Section 112(e) is 
amended—
(1) in paragraph (3)—
(A) by amending the first sentence to read 
as follows: ‘‘Voluntary negotiation proceedings 
initiated pursuant to section 804(a) for the pur-
pose of determining reasonable terms and rates 
of royalty payments for the activities specified 
by paragraph (1) shall cover the 5-year period 
beginning on January 1 of the second year fol-
lowing the year in which the proceedings are 
commenced, or such other period as the parties 
may agree.’’; and 
(B) in the third sentence, by striking ‘‘Li-
brarian of Congress’’ and inserting ‘‘Copyright 
Royalty Judges’’; 
(2) in paragraph (4)—
(A) by amending the first sentence to read 
as follows: ‘‘In the absence of license agree-
ments negotiated under paragraphs (2) and (3), 
the Copyright Royalty Judges shall commence a 
proceeding pursuant to chapter 8 to determine 
and publish in the Federal Register a schedule 
of reasonable rates and terms which, subject to 
paragraph (5), shall be binding on all copyright 
owners of sound recordings and transmitting 
organizations entitled to a statutory license 
under this subsection during the 5-year period 
specified in paragraph (3), or such other period 
as the parties may agree.’’;
(B) by striking ‘‘copyright arbitration roy-
alty panel’’ each subsequent place it appears 
and inserting ‘‘Copyright Royalty Judges’’; 
(C) in the fourth sentence, by striking ‘‘its 
decision’’ and inserting ‘‘their decision’’; and 
(D) in the last sentence, by striking ‘‘Li-
brarian of Congress’’ and inserting ‘‘Copyright 
Royalty Judges’’; 
(3) in paragraph (5), by striking ‘‘or decision 
by the Librarian of Congress’’ and inserting ‘‘, deci-
sion by the Librarian of Congress, or determination 
by the Copyright Royalty Judges’’;
(4) by striking paragraph (6) and redesignating 
paragraphs (7), (8), and (9), as paragraphs (6), (7), 
and (8), respectively; and 
(5) in paragraph (6)(A), as so redesignated, by 
striking
‘‘Librarian
of
Congress’’
and
inserting 
‘‘Copyright Royalty Judges’’. 
(c) SCOPE OF EXCLUSIVE RIGHTS IN SOUND RE-
CORDINGS.—Section 114(f) is amended—
(1) in paragraph (1)—
(A) in subparagraph (A)—
(i) by amending the first sentence to 
read as follows: ‘‘Voluntary negotiation 
proceedings initiated pursuant to section
804(a) for the purpose of determining rea-
sonable terms and rates of royalty pay-
ments for subscription transmissions by 
preexisting subscription services and trans-
missions
by
preexisting
satellite
digital 
audio radio services shall cover the 5-year 
period beginning on January 1 of the year 
following the second year in which the pro-
ceedings are commenced, except where dif-
ferential transitional periods are provided 
in section 804(b)(3), or such other period 
as the parties may agree.’’; and 
(ii) in the third sentence, by striking 
‘‘Librarian
of
Congress’’
and
inserting 
‘‘Copyright Royalty Judges’’; 
(B) in subparagraph (B)—
(i) by amending the first sentence to 
read as follows: ‘‘In the absence of license 
agreements negotiated under subparagraph 
(A), the Copyright Royalty Judges shall 
commence a proceeding pursuant to chap-
ter 8 to determine and publish in the Fed-
eral Register a schedule of rates and terms 
which, subject to paragraph (3), shall be 
binding on all copyright owners of sound
recordings and entities performing sound 
recordings affected by this paragraph dur-
ing the 5-year period specified in subpara-
graph (A), or such other date as the par-
ties may agree.’’; and 
(ii) in the second sentence, by striking 
‘‘copyright arbitration royalty panel’’ and 
inserting ‘‘Copyright Royalty Judges’’; and
(C) by amending subparagraph (C) to read 
as follows: 
‘‘(C) The procedures under subparagraphs (A) 
and (B) also shall be initiated pursuant to a petition 
filed by any copyright owners of sound recordings, 
any preexisting subscription services, or any pre-
existing satellite digital audio radio services indi-
cating that a new type of subscription digital audio 
transmission service on which sound recordings are 
performed is or is about to become operational, for 
the purpose of determining reasonable terms and 
rates of royalty payments with respect to such new 
type of transmission service for the period beginning 
with the inception of such new type of service and 
ending on the date on which the royalty rates and 
terms for subscription digital audio transmission 
services most recently determined under subpara-
graph (A) or (B) and chapter 8 expire, or such other 
period as the parties may agree.’’; 
(2) in paragraph (2)—
(A) in subparagraph (A)—
(i) by amending the first sentence to 
read as follows: ‘‘Voluntary negotiation 
proceedings initiated pursuant to section 
804(a) for the purpose of determining rea-
sonable terms and rates of royalty pay-
ments for public performances of sound re-
cordings by means of eligible nonsubscrip-
tion transmissions and transmissions by 
new subscription services specified by sub-
section (d)(2) shall cover the 5-year period 
beginning on January 1 of the second year 
following the year in which the proceedings 
are
commenced,
except
where
different 
transitional periods are provided in section 
804(b)(3)(A), or such other period as the 
parties may agree.’’; and 
(ii) in the third sentence, by striking 
‘‘Librarian
of
Congress’’
and
inserting 
‘‘Copyright Royalty Judges’’; 
(B) in subparagraph (B)—
(i) by amending the first sentence to 
read as follows: ‘‘In the absence of license 
agreements negotiated under subparagraph 
(A), the Copyright Royalty Judges shall 
commence a proceeding pursuant to chap-
ter 8 to determine and publish in the Fed-
eral Register a schedule of rates and terms 
which, subject to paragraph (3), shall be 
binding on all copyright owners of sound 
recordings and entities performing sound 
recordings affected by this paragraph dur-
ing the period specified in subparagraph 
(A), or such other period as the parties 
may agree.’’; and 
(ii) by striking ‘‘copyright arbitration 
royalty panel’’ each subsequent place it ap-
pears and inserting ‘‘Copyright Royalty 
Judges’’; and
(C) by amending subparagraph (C) to read 
as follows: 
‘‘(C) The procedures under subparagraphs (A) 
and (B) shall also be initiated pursuant to a petition 
filed by any copyright owners of sound recordings or 
any eligible nonsubscription service or new subscrip-
tion service indicating that a new type of eligible
nonsubscription service or new subscription service 
on which sound recordings are performed is or is 
about to become operational, for the purpose of de-
termining reasonable terms and rates of royalty pay-
ments with respect to such new type of service for 
the period beginning with the inception of such new 
type of service and ending on the date on which the 
royalty rates and terms for preexisting subscription 
digital audio transmission services or preexisting sat-
ellite digital radio audio services, as the case may be, 
most recently determined under subparagraph (A) or 
(B) and chapter 8 expire, or such other period as 
the parties may agree.’’;
(3) in paragraph (3), by striking ‘‘or decision 
by the Librarian of Congress’’ and inserting ‘‘, deci-
sion by the Librarian of Congress, or determination 
by the Copyright Royalty Judges’’; and 
(4) in paragraph (4), by striking ‘‘Librarian of 
Congress’’
each
place
it
appears
and
inserting 
‘‘Copyright Royalty Judges’’.
(d) PHONORECORDS
OF NONDRAMATIC MUSICAL 
WORKS.—Section 115(c)(3) is amended—
(1) in subparagraph (A)(ii), by striking ‘‘(F)’’ 
and inserting ‘‘(E)’’; 
(2) in subparagraph (B)—
(A) by striking ‘‘under this paragraph’’ 
and inserting ‘‘under this section’’; and 
(B)
by
striking
‘‘subparagraphs
(B) 
through (F)’’ and inserting ‘‘this subparagraph 
and subparagraphs (B) through (E)’’; 
(3) in subparagraph (C)—
(A) by amending the first sentence to read 
as follows: ‘‘Voluntary negotiation proceedings 
initiated pursuant to a petition filed under sec-
tion 804(a) for the purpose of determining rea-
sonable terms and rates of royalty payments for 
the activities specified by this section shall 
cover the period beginning with the effective 
date of such terms and rates, but not earlier 
than January 1 of the second year following the 
year in which the petition is filed, and ending 
on the effective date of successor terms and 
rates, or such other period as the parties may 
agree.’’; and 
(B) in the third sentence, by striking ‘‘Li-
brarian of Congress’’ and inserting ‘‘Copyright 
Royalty Judges’’; 
(4) in subparagraph (D)—
(A) by amending the first sentence to read 
as follows: ‘‘In the absence of license agree-
ments negotiated under subparagraphs (B) and 
(C), the Copyright Royalty Judges shall com-
mence proceedings pursuant to chapter 8 to de-
termine and publish in the Federal Register a 
schedule of rates and terms which, subject to 
subparagraph (E), shall be binding on all copy-
right owners of nondramatic musical works and 
persons entitled to obtain a compulsory license 
under subsection (a)(1) during the period speci-
fied in subparagraph (C) or such other period 
as may be determined pursuant to subpara-
graphs (B) and (C), or such other period as the 
parties may agree.’’; 
(B) in the third sentence, by striking 
‘‘copyright arbitration royalty panel’’ and in-
serting ‘‘Copyright Royalty Judges’’; and 
(C) in the last sentence, by striking ‘‘Li-
brarian of Congress’’ and inserting ‘‘Copyright 
Royalty Judges’’; 
(5) in subparagraph (E)—
(A) in clause (i)—
(i) in the first sentence, by striking 
‘‘the Librarian of Congress’’ and inserting 
‘‘a copyright arbitration royalty panel, the
Librarian of Congress, or the Copyright 
Royalty Judges’’; and 
(ii) in the second sentence, by striking 
‘‘(C), (D) or (F) shall be given effect’’ and 
inserting ‘‘(C) or (D) shall be given effect 
as to digital phonorecord deliveries’’; and 
(B) in clause (ii)(I), by striking ‘‘(C), (D) 
or (F)’’ each place it appears and inserting 
‘‘(C) or (D)’’; and
(6) by striking subparagraph (F) and redesig-
nating subparagraphs (G) through (L) as subpara-
graphs (F) through (K), respectively.
(e) COIN-OPERATED PHONORECORD PLAYERS.—Sec-
tion 116 is amended—
(1) in subsection (b), by amending paragraph 
(2) to read as follows: 
‘‘(2) CHAPTER
PROCEEDING.—Parties not 
subject to such a negotiation may have the terms 
and rates and the division of fees described in para-
graph (1) determined in a proceeding in accordance 
with the provisions of chapter 8.’’; and 
(2) in subsection (c)—
(A) in the subsection heading, by striking 
‘‘COPYRIGHT ARBITRATION ROYALTY PANEL 
DETERMINATIONS’’
and
inserting
‘‘DETER-
MINATIONS BY COPYRIGHT ROYALTY JUDGES’’; 
and 
(B) by striking ‘‘a copyright arbitration 
royalty panel’’ and inserting ‘‘the Copyright 
Royalty Judges’’. 
(f) USE OF CERTAIN WORKS IN CONNECTION WITH 
NONCOMMERCIAL
BROADCASTING.—Section
118
is 
amended—
(1) in subsection (b)—
(A) in paragraph (1)—
(i) in the first sentence, by striking 
‘‘Librarian
of
Congress’’
and
inserting 
‘‘Copyright Royalty Judges’’; and 
(ii) by striking the second and third 
sentences; 
(B) in paragraph (2), by striking ‘‘the Li-
brarian of Congress:’’ and all that follows 
through the end of the sentence and inserting 
‘‘a copyright arbitration royalty panel, the Li-
brarian of Congress, or the Copyright Royalty 
Judge, if copies of such agreements are filed 
with the Copyright Royalty Judges within 30 
days of execution in accordance with regulations 
that the Copyright Royalty Judges shall issue.’’; 
and
‘‘(4) In the absence of license agreements nego-
tiated under paragraph (2) or (3), the Copyright 
Royalty Judges shall, pursuant to chapter 8, con-
duct a proceeding to determine and publish in the 
Federal Register a schedule of rates and terms 
which, subject to paragraph (2), shall be binding on 
all owners of copyright in works specified by this 
subsection and public broadcasting entities, regard-
less of whether such copyright owners have sub-
mitted proposals to the Copyright Royalty Judges.’’;
(2) by striking subsection (c) and redesignating 
subsections
(d)
through
(g)
as
subsections
(c) 
through (f), respectively; 
(3) in subsection (c), as so redesignated, in the 
matter preceding paragraph (1)—
(A) by striking ‘‘(b)(2)’’ and inserting 
‘‘(b)(2) or (3)’’; 
(B) by striking ‘‘(b)(3)’’ and inserting 
‘‘(b)(4)’’; and 
(C) by striking ‘‘a copyright arbitration 
royalty panel’’ and inserting ‘‘the Copyright 
Royalty Judges’’; 
(4) in subsection (d), as so redesignated—
(A) by striking ‘‘in the Copyright Office’’ 
and
inserting
‘‘with
the
Copyright
Royalty 
Judges’’; and 
(B) by striking ‘‘Register of Copyrights’’ 
and inserting ‘‘Copyright Royalty Judges’’; and 
(5) in subsection (f), as so redesignated, by 
striking ‘‘(d)’’ and inserting ‘‘(c)’’. 
(g) SECONDARY TRANSMISSIONS BY SATELLITE CAR-
RIERS.—Section 119(b) is amended—
(1) in paragraph (3), by striking ‘‘Librarian of 
Congress’’
and
inserting
‘‘Copyright
Royalty 
Judges’’; and 
(2) in paragraph (4)—
(A) in subparagraph (A), by striking ‘‘Li-
brarian of Congress’’ each place it appears and 
inserting ‘‘Copyright Royalty Judges’’; and 
(B) by amending subparagraphs (B) and 
(C) to read as follows: 
‘‘(B) DETERMINATION OF CONTROVERSY; 
DISTRIBUTIONS.—After the first day of August 
of each year, the Copyright Royalty Judges 
shall determine whether there exists a con-
troversy concerning the distribution of royalty 
fees. If the Copyright Royalty Judges determine 
that no such controversy exists, the Librarian
of Congress shall, after deducting reasonable 
administrative costs under this paragraph, dis-
tribute such fees to the copyright owners enti-
tled to receive them, or to their designated 
agents. If the Copyright Royalty Judges find 
the existence of a controversy, the Copyright 
Royalty Judges shall, pursuant to chapter 8 of 
this title, conduct a proceeding to determine the 
distribution of royalty fees. 
‘‘(C)
WITHHOLDING
OF
FEES
DURING 
CONTROVERSY.—During the pendency of any 
proceeding under this subsection, the Copyright 
Royalty Judges shall withhold from distribution 
an amount sufficient to satisfy all claims with 
respect to which a controversy exists, subject to 
any
distributions
made
under
section 
801(b)(3).’’.
(h) DIGITAL AUDIO RECORDING DEVICES.—
(1) ROYALTY PAYMENTS.—Section 1004(a)(3) 
is amended by striking ‘‘Librarian of Congress’’ 
each place it appears and inserting ‘‘Copyright Roy-
alty Judges’’.
(2) ENTITLEMENT TO ROYALTY PAYMENTS.—
Section 1006(c) is amended by striking ‘‘Librarian 
of Congress shall convene a copyright arbitration
royalty panel which’’ and inserting ‘‘Copyright Roy-
alty Judges’’. 
(3) PROCEDURES FOR DISTRIBUTING ROYALTY 
PAYMENTS.—Section 1007 is amended—
(A) in subsection (a), by amending para-
graph (1) to read as follows: 
‘‘(1) FILING OF CLAIMS.—During the first 2 
months of each calendar year, every interested copy-
right party seeking to receive royalty payments to 
which such party is entitled under section 1006 shall 
file with the Copyright Royalty Judges a claim for 
payments collected during the preceding year in such 
form and manner as the Copyright Royalty Judges 
shall prescribe by regulation.’’; and 
(B) by amending subsections (b) and (c) to 
read as follows: 
‘‘(b) DISTRIBUTION OF PAYMENTS IN THE ABSENCE 
OF A DISPUTE.—After the period established for the filing 
of claims under subsection (a), in each year, the Copyright 
Royalty Judges shall determine whether there exists a con-
troversy concerning the distribution of royalty payments 
under section 1006(c). If the Copyright Royalty Judges 
determine that no such controversy exists, the Librarian 
of Congress shall, within 30 days after such determina-
tion, authorize the distribution of the royalty payments as
set forth in the agreements regarding the distribution of 
royalty payments entered into pursuant to subsection (a). 
The Librarian of Congress shall, before such royalty pay-
ments are distributed, deduct the reasonable administra-
tive costs incurred by the Librarian under this section.
‘‘(c) RESOLUTION OF DISPUTES.—If the Copyright 
Royalty Judges find the existence of a controversy, the 
Copyright Royalty Judges shall, pursuant to chapter 8 of 
this title, conduct a proceeding to determine the distribu-
tion of royalty payments. During the pendency of such a 
proceeding, the Copyright Royalty Judges shall withhold 
from distribution an amount sufficient to satisfy all claims 
with respect to which a controversy exists, but shall, to 
the extent feasible, authorize the distribution of any 
amounts that are not in controversy. The Librarian of 
Congress shall, before such royalty payments are distrib-
uted, deduct the reasonable administrative costs incurred 
by the Librarian under this section.’’. 
(4) DETERMINATION OF CERTAIN DISPUTES.—
(A) Section 1010 is amended to read as follows: 
‘‘§ 1010. Determination of certain disputes 
‘‘(a) SCOPE OF DETERMINATION.—Before the date 
of first distribution in the United States of a digital audio 
recording device or a digital audio interface device, any 
party manufacturing, importing, or distributing such de-
vice, and any interested copyright party may mutually 
agree to petition the Copyright Royalty Judges to deter-
mine whether such device is subject to section 1002, or 
the basis on which royalty payments for such device are 
to be made under section 1003. 
‘‘(b) INITIATION
OF PROCEEDINGS.—The parties 
under subsection (a) shall file the petition with the Copy-
right Royalty Judges requesting the commencement of a 
proceeding. Within 2 weeks after receiving such a petition, 
the Chief Copyright Royalty Judge shall cause notice to 
be published in the Federal Register of the initiation of 
the proceeding. 
‘‘(c) STAY OF JUDICIAL PROCEEDINGS.—Any civil 
action brought under section 1009 against a party to a 
proceeding under this section shall, on application of one 
of the parties to the proceeding, be stayed until completion 
of the proceeding. 
‘‘(d) PROCEEDING.—The Copyright Royalty Judges 
shall conduct a proceeding with respect to the matter con-
cerned, in accordance with such procedures as the Copy-
right Royalty Judges may adopt. The Copyright Royalty 
Judges shall act on the basis of a fully documented written 
record. Any party to the proceeding may submit relevant 
information and proposals to the Copyright Royalty
Judges. The parties to the proceeding shall each bear their 
respective costs of participation. 
‘‘(e) JUDICIAL REVIEW.—Any determination of the 
Copyright Royalty Judges under subsection (d) may be 
appealed, by a party to the proceeding, in accordance with 
section 803(d) of this title. The pendency of an appeal 
under this subsection shall not stay the determination of 
the Copyright Royalty Judges. If the court modifies the 
determination of the Copyright Royalty Judges, the court 
shall have jurisdiction to enter its own decision in accord-
ance with its final judgment. The court may further vacate 
the determination of the Copyright Royalty Judges and 
remand the case for proceedings as provided in this sec-
tion.’’. 
(B) The item relating to section 1010 in the 
table of sections for chapter 10 is amended to read 
as follows:
‘‘1010. Determination of certain disputes.’’.
SEC. 6. EFFECTIVE DATE AND TRANSITION PROVISIONS. 
(a) EFFECTIVE DATE.—This Act and the amend-
ments made by this Act shall take effect 6 months after 
the date of the enactment of this Act, except that the Li-
brarian of Congress shall appoint interim Copyright Roy-
alty Judges under section 802(d) of title 17, United States 
Code, as amended by this Act, within 90 days after such 
date of enactment to carry out the functions of the Copy-
right Royalty Judges under title 17, United States Code, 
to the extent that Copyright Royalty Judges provided for 
in section 801(a) of title 17, United States Code, as 
amended by this Act, have not been appointed before the 
end of that 90-day period. 
(b) TRANSITION PROVISIONS.—
(1) IN GENERAL.—Subject to paragraph (2), 
the amendments made by this Act shall not affect 
any proceedings commenced, petitions filed, or vol-
untary agreements entered into before the enact-
ment of this Act under the provisions of title 17, 
United States Code, amended by this Act, and pend-
ing on such date of enactment. Such proceedings 
shall continue, determinations made in such pro-
ceedings, and appeals taken therefrom, as if this Act 
had not been enacted, and shall continue in effect 
until modified under title 17, United States Code, as 
amended by this Act. Such petitions filed and vol-
untary agreements entered into shall remain in ef-
fect as if this Act had not been enacted. 
(2) EFFECTIVE PERIODS FOR CERTAIN RATE-
MAKING PROCEEDINGS.—Notwithstanding paragraph 
(1),
terms
and
rates
in
effect
under
section 
114(f)(2) or 112(e) of title 17, United States Code, 
for new subscription services, eligible nonsubscrip-
tion services, and services exempt under section 
114(d)(1)(C)(iv) of such title for the period 2003 
through 2004, and any rates published in the Fed-
eral Register under the authority of the Small 
Webcaster Settlement Act of 2002 for the years 
2003 through 2004, shall be effective until the first 
applicable effective date for successor terms and 
rates specified in section 804(b)(2) or (3)(A) of title 
17, United States Code, or until such later date as 
the parties may agree. Any proceeding commenced 
before the enactment of this Act pursuant to section 
114(f)(2) and chapter 8 of title 17, United States 
Code, to adjust or determine such rates and terms 
for periods following 2004 shall be terminated upon 
the enactment of this Act and shall be null and void. 
(c) EXISTING APPROPRIATIONS.—Any funds made 
available in an appropriations Act before the date of the 
enactment of this Act to carry out chapter 8 of title 17, 
United States Code, shall be available to the extent nec-
essary to carry out this section.
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Copyright Royalty and 
Distribution Reform Act of 2004’’.
SEC. 2. REFERENCE. 
Except as otherwise expressly provided, whenever in 
this Act an amendment or repeal is expressed in terms of 
an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or 
other provision of title 17, United States Code. 
SEC. 3. COPYRIGHT ROYALTY JUDGE AND STAFF. 
(a) IN GENERAL.—Chapter 8 is amended to read as 
follows: 
‘‘CHAPTER 8—PROCEEDINGS BY 
COPYRIGHT ROYALTY JUDGES
‘‘Sec. 
‘‘801. Copyright Royalty Judges; appointment and functions. 
‘‘802. Copyright Royalty Judgeships; staff. 
‘‘803. Proceedings of Copyright Royalty Judges. 
‘‘804. Institution of proceedings. 
‘‘805. General rule for voluntarily negotiated agreements.
‘‘§ 801. Copyright Royalty Judges; appointment and 
functions 
‘‘(a) APPOINTMENT.—Upon the recommendation of the 
Register of Copyrights, the Librarian of Congress shall ap-
point 3 full-time Copyright Royalty Judges, and shall ap-
point 1 of the 3 as the Chief Copyright Royalty Judge. 
‘‘(b) FUNCTIONS.—Subject to the provisions of this 
chapter, the functions of the Copyright Royalty Judges shall 
be as follows: 
‘‘(1) To make determinations and adjustments of 
reasonable terms and rates of royalty payments as
provided in sections 112(e), 114, 115, 116, 118, 119 
and 1004. The rates applicable under sections 
114(f)(1)(B), 115, and 116 shall be calculated to 
achieve the following objectives: 
‘‘(A) To maximize the availability of cre-
ative works to the public. 
‘‘(B) To afford the copyright owner a fair 
return for his or her creative work and the copy-
right user a fair income under existing economic 
conditions. 
‘‘(C) To reflect the relative roles of the copy-
right owner and the copyright user in the prod-
uct made available to the public with respect to 
relative creative contribution, technological con-
tribution, capital investment, cost, risk, and con-
tribution to the opening of new markets for cre-
ative expression and media for their communica-
tion. 
‘‘(D) To minimize any disruptive impact 
on the structure of the industries involved and on 
generally prevailing industry practices. 
‘‘(2) To make determinations concerning the ad-
justment of the copyright royalty rates under section 
111 solely in accordance with the following provi-
sions:
‘‘(A) The rates established by section 
111(d)(1)(B) may be adjusted to reflect—
‘‘(i) national monetary inflation or de-
flation; or 
‘‘(ii) changes in the average rates 
charged cable subscribers for the basic serv-
ice of providing secondary transmissions to 
maintain the real constant dollar level of 
the royalty fee per subscriber which existed 
as of the date of October 19, 1976, 
except that—
‘‘(I) if the average rates charged cable 
system subscribers for the basic service of 
providing 
secondary 
transmissions 
are 
changed so that the average rates exceed na-
tional monetary inflation, no change in the 
rates established by section 111(d)(1)(B) 
shall be permitted; and
‘‘(II) no increase in the royalty fee 
shall be permitted based on any reduction 
in the average number of distant signal 
equivalents per subscriber. 
The Copyright Royalty Judges may consider all 
factors relating to the maintenance of such level 
of payments, including, as an extenuating factor,
whether the industry has been restrained by sub-
scriber rate regulating authorities from increas-
ing the rates for the basic service of providing 
secondary transmissions. 
‘‘(B) In the event that the rules and regula-
tions of the Federal Communications Commis-
sion are amended at any time after April 8, 
1976, to permit the carriage by cable systems of 
additional television broadcast signals beyond 
the local service area of the primary transmitters 
of such signals, the royalty rates established by 
section 111(d)(1)(B) may be adjusted to insure 
that the rates for the additional distant signal 
equivalents resulting from such carriage are rea-
sonable in the light of the changes effected by the 
amendment to such rules and regulations. In de-
termining the reasonableness of rates proposed 
following an amendment of Federal Communica-
tions Commission rules and regulations, the 
Copyright Royalty Judges shall consider, among 
other factors, the economic impact on copyright 
owners and users; except that no adjustment in 
royalty rates shall be made under this subpara-
graph with respect to any distant signal equiva-
lent or fraction thereof represented by—
‘‘(i) carriage of any signal permitted 
under the rules and regulations of the Fed-
eral Communications Commission in effect 
on April 15, 1976, or the carriage of a sig-
nal of the same type (that is, independent, 
network, or noncommercial educational) 
substituted for such permitted signal; or 
‘‘(ii) a television broadcast signal first 
carried after April 15, 1976, pursuant to an 
individual waiver of the rules and regula-
tions of the Federal Communications Com-
mission, as such rules and regulations were 
in effect on April 15, 1976. 
‘‘(C) In the event of any change in the rules 
and regulations of the Federal Communications 
Commission with respect to syndicated and 
sports program exclusivity after April 15, 1976, 
the rates established by section 111(d)(1)(B) may 
be adjusted to assure that such rates are reason-
able in light of the changes to such rules and reg-
ulations, but any such adjustment shall apply 
only to the affected television broadcast signals 
carried on those systems affected by the change. 
‘‘(D) The gross receipts limitations estab-
lished by section 111(d)(1)(C) and (D) shall be
adjusted to reflect national monetary inflation or 
deflation or changes in the average rates charged 
cable system subscribers for the basic service of 
providing secondary transmissions to maintain 
the real constant dollar value of the exemption 
provided by such section, and the royalty rate 
specified therein shall not be subject to adjust-
ment. 
‘‘(3)(A) To authorize the distribution, under sec-
tions 111, 119, and 1007, of those royalty fees col-
lected under sections 111, 119, and 1005, as the case 
may be, to the extent that the Copyright Royalty 
Judges have found that the distribution of such fees 
is not subject to controversy. 
‘‘(B) In cases where the Copyright Royalty 
Judges determine that controversy exists, the Copy-
right Royalty Judges shall determine the distribution 
of such fees, including partial distributions, in ac-
cordance with section 111, 119, or 1007, as the case 
may be. 
‘‘(C) The Copyright Royalty Judges may make a 
partial distribution of such fees during the pendency 
of the proceeding under subparagraph (B) if all par-
ticipants under section 803(b)(2) in the proceeding
that are entitled to receive those fees that are to be 
partially distributed—
‘‘(i) agree to such partial distribution; 
‘‘(ii) sign an agreement obligating them to 
return any excess amounts to the extent nec-
essary to comply with the final determination on 
the distribution of the fees made under subpara-
graph (B); 
‘‘(iii) file the agreement with the Copyright 
Royalty Judges; and 
‘‘(iv) agree that such funds are available for 
distribution. 
‘‘(D) The Copyright Royalty Judges and any 
other officer or employee acting in good faith in dis-
tributing funds under subparagraph (C) shall not be 
held liable for the payment of any excess fees under 
subparagraph (C). The Copyright Royalty Judges 
shall, at the time the final determination is made, 
calculate any such excess amounts. 
‘‘(4) To accept or reject royalty claims filed 
under sections 111, 119, and 1007, on the basis of 
timeliness or the failure to establish the basis for a 
claim.
‘‘(5) To accept or reject rate adjustment petitions 
as provided in section 804 and petitions to partici-
pate as provided in section 803(b) (1) and (2). 
‘‘(6) To determine the status of a digital audio 
recording device or a digital audio interface device 
under sections 1002 and 1003, as provided in section 
1010. 
‘‘(7)(A) To adopt as a basis for statutory terms 
and rates or as a basis for the distribution of statu-
tory royalty payments, an agreement concerning such 
matters reached among some or all of the participants 
in a proceeding at any time during the proceeding, 
except that—
‘‘(i) the Copyright Royalty Judges shall 
provide to those that would be bound by the 
terms, rates, distribution, or other determination 
set by the agreement an opportunity to comment 
on the agreement and shall provide to the other 
participants in the proceeding under section 
803(b)(2) that would be bound by the terms, 
rates, distribution, or other determination set by 
the agreement an opportunity to comment on the 
agreement and object to its adoption as a basis 
for statutory terms and rates or as a basis for
the distribution of statutory royalty payments, 
as the case may be; and
‘‘(ii) the Copyright Royalty Judges may de-
cline to adopt the agreement as a basis for statu-
tory terms and rates or as a basis for the dis-
tribution of statutory royalty payments, as the 
case may be, if any other participant described 
in subparagraph (A) objects to the agreement 
and the Copyright Royalty Judges conclude, 
based on the record before them if one exists, that 
the agreement does not provide a reasonable 
basis for setting statutory terms or rates, or for 
distributing the royalty payments, as the case 
may be.
‘‘(B) License agreements voluntarily negotiated 
pursuant 
to 
section 
112(e)(5), 
114(f)(3), 
115(c)(3)(E)(i), 116(c), or 118(b) (2) or (3) that do 
not result in statutory terms and rates shall not be 
subject to clauses (i) and (ii) of subparagraph (A). 
‘‘(C) Interested parties may negotiate and agree 
to, and the Copyright Royalty Judges may adopt, an 
agreement that specifies as terms notice and record-
keeping requirements that apply in lieu of those that 
would otherwise apply under regulations.
‘‘(8) To perform other duties, as assigned by the 
Register of Copyrights within the Library of Con-
gress, except as provided in section 802(g) at times 
when Copyright Royalty Judges are not engaged in 
performing the other duties set forth in this section. 
‘‘(c) RULINGS.—As provided in section 802(f)(1), the 
Copyright Royalty Judges may make any necessary proce-
dural or evidentiary rulings in any proceeding under this 
chapter and may, before commencing a proceeding under 
this chapter, make any such rulings that would apply to 
the proceedings conducted by the Copyright Royalty Judges.
‘‘(d) ADMINISTRATIVE SUPPORT.—The Librarian of 
Congress shall provide the Copyright Royalty Judges with 
the necessary administrative services related to proceedings 
under this chapter. 
‘‘(e) LOCATION IN LIBRARY OF CONGRESS.—The offices 
of the Copyright Royalty Judges and staff shall be in the 
Library of Congress. 
‘‘§ 802. Copyright Royalty Judgeships; staff 
‘‘(a) 
QUALIFICATIONS
OF
COPYRIGHT
ROYALTY 
JUDGES.—
‘‘(1) IN
GENERAL.—Each Copyright Royalty 
Judge shall be an attorney who has at least 7 years 
of legal experience. The Chief Copyright Royalty 
Judge shall have at least 5 years of experience in ad-
judications, arbitrations, or court trials. Of the other 
two Copyright Royalty Judges, one shall have signifi-
cant knowledge of copyright law, and the other shall 
have significant knowledge of economics. An indi-
vidual may serve as a Copyright Royalty Judge only 
if the individual is free of any financial conflict of 
interest under subsection (h). 
‘‘(2) DEFINITION.—In this subsection, the term 
‘adjudication’ has the meaning given that term in 
section 551 of title 5, but does not include mediation. 
‘‘(b) STAFF.—The Chief Copyright Royalty Judge 
shall hire 3 full-time staff members to assist the Copyright 
Royalty Judges in performing their functions. 
‘‘(c) TERMS.—The terms of the Copyright Royalty 
Judges shall each be 6 years, except of the individuals first 
appointed, the Chief Copyright Royalty Judge shall be ap-
pointed to a term of 6 years, and of the remaining Copy-
right Royalty Judges, one shall be appointed to a term of 
2 years, and the other shall be appointed to a term of 4 
years. An individual serving as a Copyright Royalty Judge 
may be reappointed to subsequent terms. The term of a 
Copyright Royalty Judge shall begin when the term of the 
predecessor of that Copyright Royalty Judge ends. When the 
term of office of a Copyright Royalty Judge ends, the indi-
vidual serving that term may continue to serve until a suc-
cessor is selected. 
‘‘(d) VACANCIES OR INCAPACITY.—
‘‘(1) VACANCIES.—If a vacancy should occur in 
the position of Copyright Royalty Judge, the Librar-
ian of Congress shall act expeditiously to fill the va-
cancy, and may appoint an interim Copyright Roy-
alty Judge to serve until another Copyright Royalty 
Judge is appointed under this section. An individual 
appointed to fill the vacancy occurring before the ex-
piration of the term for which the predecessor of that 
individual was appointed shall be appointed for the 
remainder of that term. 
‘‘(2) INCAPACITY.—In the case in which a Copy-
right Royalty Judge is temporarily unable to perform 
his or her duties, the Librarian of Congress may ap-
point an interim Copyright Royalty Judge to perform 
such duties during the period of such incapacity. 
‘‘(e) COMPENSATION.—
‘‘(1) JUDGES.—The Chief Copyright Royalty 
Judge shall receive compensation at the rate of basic 
pay payable for level AL–1 for administrative law 
judges pursuant to section 5372(b) of title 5, and each 
of the other two Copyright Royalty Judges shall re-
ceive compensation at the rate of basic pay payable
for level AL–2 for administrative law judges pursuant 
to such section. The compensation of the Copyright 
Royalty Judges shall not be subject to any regulations 
adopted by the Office of Personnel Management pur-
suant to its authority under section 5376(b)(1) of title 
5. 
‘‘(2) STAFF MEMBERS.—Of the staff members ap-
pointed under subsection (b)—
‘‘(A) the rate of pay of one staff member 
shall be not more than the basic rate of pay pay-
able for level 10 of GS–15 of the General Sched-
ule; 
‘‘(B) the rate of pay of one staff member 
shall be not less than the basic rate of pay pay-
able for GS–13 of the General Schedule and not 
more than the basic rate of pay payable for level 
10 of GS–14 of such Schedule; and 
‘‘(C) the rate of pay for the third staff mem-
ber shall be not less than the basic rate of pay 
payable for GS–8 of the General Schedule and 
not more than the basic rate of pay payable for 
level 10 of GS–11 of such Schedule. 
‘‘(3) LOCALITY PAY.—All rates of pay referred to 
under this subsection shall include locality pay.
‘‘(f) 
INDEPENDENCE
OF
COPYRIGHT
ROYALTY 
JUDGE.—
‘‘(1) IN MAKING DETERMINATIONS.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), the Copyright Royalty Judges shall 
have full independence in making determinations 
concerning adjustments and determinations of 
copyright royalty rates and terms, the distribu-
tion of copyright royalties, the acceptance or re-
jection of royalty claims, rate adjustment peti-
tions, and petitions to participate, and in 
issuing other rulings under this title, except that 
the Copyright Royalty Judges may consult with 
the Register of Copyrights on any matter other 
than a question of fact. A Copyright Royalty 
Judge or Judges, or by motion to the Copyright 
Royalty Judge or Judges, any participant in a 
proceeding may request a determination of the 
resolution by the Register of Copyrights on any 
material question of substantive law (not includ-
ing questions of procedure before the Copyright 
Royalty Judges, the ultimate adjustments and 
determinations of copyright royalty rates and 
terms, the ultimate distribution of copyright roy-
alties, or the acceptance or rejection of royalty
claims, rate adjustment petitions, or petitions to 
participate) concerning an interpretation or con-
struction of those provisions of this title that are 
the subject of the proceeding. Any such motion 
requesting a written decision by the Register of 
Copyrights shall be in writing or on the record, 
and reasonable provision shall be made for com-
ment by the participants in the proceeding in 
such a way as to minimize duplication and 
delay. Except as provided in subparagraph (B), 
the Register of Copyrights shall deliver to the 
Copyright Royalty Judges his or her decision 
within 14 days of receipt by the Register of 
Copyrights of all of the briefs or comments of the 
participants. Such decision shall be in writing 
and shall be included by the Copyright Royalty 
Judges in the record that accompanies their final 
determination. If such a decision is timely deliv-
ered to the Register of Copyrights, the Copyright 
Royalty Judges shall apply the legal determina-
tions embodied in the decision of the Register of 
Copyrights in resolving material questions of 
substantive law. 
‘‘(B) NOVEL QUESTIONS.—(i) In any case 
in which a novel question of law concerning an
interpretation of those provisions of this title 
that are the subject of the proceeding is pre-
sented, the Copyright Royalty Judges shall re-
quest a decision of the Register of Copyrights, in 
writing, to resolve such novel question. To the ex-
tent practicable, provision shall be made for 
comment on such request by the participants in 
the proceeding, in such a way as to minimize 
duplication and delay. The Register shall trans-
mit his or her decision to the Copyright Royalty 
Judges within 30 days of receipt by the Register 
of Copyrights of all of the briefs or comments of 
the participants. Such decision shall be in writ-
ing and included by the Copyright Royalty 
Judges in the record that accompanies their final 
determination. If such a decision is timely trans-
mitted, the Copyright Royalty Judges shall 
apply the legal determinations embodied in the 
decision of the Register of Copyrights in resolv-
ing material questions of substantive law. 
‘‘(ii) In clause (i), a ‘novel question of law’ 
is a question of law that has not been determined 
in prior decisions, determinations, and rulings 
described in section 803(a).
‘‘(C) CONSULTATION.—Notwithstanding the 
provisions of subparagraph (A), the Copyright 
Royalty Judges shall consult with the Register of 
Copyrights with respect to any determination or 
ruling that would require that any act be per-
formed by the Copyright Office, and any such de-
termination or ruling shall not be binding upon 
the Register of Copyrights. 
‘‘(D) SUA SPONTE REVIEW OF LEGAL CON-
CLUSIONS BY THE REGISTER OF COPYRIGHTS.—
The Register of Copyrights may review for legal 
error the resolution by the Copyright Royalty 
Judges of a material question of substantive law 
under this title that underlies or is contained in 
a final determination of the Copyright Royalty 
Judges. If the Register of Copyrights concludes, 
after taking into consideration the views of the 
participants in the proceeding, that any resolu-
tion reached by the Copyright Royalty Judges 
was in material error, the Register of Copyrights 
shall issue a written decision correcting such 
legal error, which shall be made part of the 
record of the proceeding. Additionally, the Reg-
ister of Copyrights shall cause to be published in 
the Federal Register such written decision to-
gether with a specific identification of the legal 
conclusion of the Copyright Royalty Judges that 
is determined to be erroneous. As to conclusions 
of substantive law involving an interpretation of 
the statutory provisions of this title, the decision 
of the Register of Copyrights shall be binding 
upon the Copyright Royalty Judges in subse-
quent proceedings under this chapter. When a 
decision has been rendered pursuant to sub-
section 802(f)(1)(D), the Register of Copyrights 
may, on the basis of and in accordance with 
such decision, intervene as of right in any ap-
peal of a final determination of the Copyright 
Royalty Judges pursuant to section 803(d) in the 
United States Court of Appeals for the District 
of Columbia Circuit. If, prior to intervening in 
such an appeal, the Register of Copyrights gives 
notification and undertakes to consult with the 
Attorney General with respect to such interven-
tion, and the Attorney General fails within rea-
sonable period after receipt of such notification 
to intervene in such appeal, the Register of 
Copyrights may intervene in such appeal in his 
or her own name by any attorney designated by 
the Register of Copyrights for such purpose.
Intervention by the Register of Copyrights in his 
or her own name shall not preclude the Attorney 
General from intervening on behalf of the United 
States in such an appeal as may be otherwise 
provided or required by law. 
‘‘(E) EFFECT ON JUDICIAL REVIEW.—Noth-
ing in this section shall be interpreted to alter 
the standard applied by a court in reviewing 
legal determinations involving an interpretation 
or construction of the provisions of this title or 
to affect the extent to which any construction or 
interpretation of the provisions of this title shall 
be accorded deference by a reviewing court. 
‘‘(2) PERFORMANCE APPRAISALS.—
‘‘(A) IN
GENERAL.—Notwithstanding any 
other provision of law or any regulation of the 
Library of Congress, and subject to subpara-
graph (B), the Copyright Royalty Judges shall 
not receive performance appraisals. 
‘‘(B) RELATING
TO
SANCTION
OR
RE-
MOVAL.—To the extent that the Librarian of 
Congress adopts regulations under subsection (h) 
relating to the sanction or removal of a Copy-
right Royalty Judge and such regulations re-
quire documentation to establish the cause of
such sanction or removal, the Copyright Royalty 
Judge may receive an appraisal related specifi-
cally to the cause of the sanction or removal. 
‘‘(g) INCONSISTENT DUTIES BARRED.—No Copyright 
Royalty Judge may undertake duties that conflict with his 
or her duties and responsibilities as a Copyright Royalty 
Judge. 
‘‘(h) STANDARDS
OF CONDUCT.—The Librarian of 
Congress shall adopt regulations regarding the standards 
of conduct, including financial conflict of interest and re-
strictions against ex parte communications, which shall 
govern the Copyright Royalty Judges and the proceedings 
under this chapter. 
‘‘(i) REMOVAL OR SANCTION.—The Librarian of Con-
gress may sanction or remove a Copyright Royalty Judge 
for violation of the standards of conduct adopted under sub-
section (h), misconduct, neglect of duty, or any disquali-
fying physical or mental disability. Any such sanction or 
removal may be made only after notice and opportunity 
for a hearing, but the Librarian of Congress may suspend 
the Copyright Royalty Judge during the pendency of such 
hearing. The Librarian shall appoint an interim Copyright 
Royalty Judge during the period of any such suspension. 
‘‘§ 803. Proceedings of Copyright Royalty Judges 
‘‘(a) PROCEEDINGS.—
‘‘(1) IN
GENERAL.—The Copyright Royalty 
Judges shall act in accordance with regulations issued 
by the Copyright Royalty Judges and the Librarian 
of Congress, and on the basis of a written record, 
prior determinations of the Copyright Royalty Tri-
bunal, Librarian of Congress, copyright arbitration 
royalty panels, the Register of Copyrights, and the 
Copyright Royalty Judges (to the extent those deter-
minations are not inconsistent with a decision of the 
Register of Copyrights that was timely delivered pur-
suant to subsection 802(f)(1)(D)), under this chapter, 
and decisions of the court of appeals under this chap-
ter before, on, or after the effective date of the Copy-
right Royalty and Distribution Reform Act of 2004. 
‘‘(2) JUDGES ACTING AS PANEL AND INDIVID-
UALLY.—The Copyright Royalty Judges shall preside 
over hearings in proceedings under this chapter en 
banc. The Chief Copyright Royalty Judge may des-
ignate a Copyright Royalty Judge to preside individ-
ually over such collateral and administrative pro-
ceedings, and over such proceedings under paragraphs 
(1) through (5) of subsection (b), as the Chief Judge 
considers appropriate. 
‘‘(3) DETERMINATIONS.—Final determinations 
of the Copyright Royalty Judges in proceedings under
this chapter shall be made by majority vote. A Copy-
right Royalty Judge dissenting from the majority on 
any determination under this chapter may issue his 
or her dissenting opinion, which shall be included 
with the determination. 
‘‘(b) PROCEDURES.—
‘‘(1) INITIATION.—
‘‘(A) CALL
FOR
PETITIONS
TO
PARTICI-
PATE.—(i) Promptly upon the filing of a peti-
tion for a rate adjustment or upon a determina-
tion made under section 804(a) or as provided 
under section 804(b)(8), or by no later than Jan-
uary 5 of a year specified in section 804 for the 
commencement of a proceeding if a petition has 
not been filed by that date, the Copyright Roy-
alty Judges shall cause to be published in the 
Federal Register notice of commencement of pro-
ceedings under this chapter calling for the filing 
of petitions to participate in a proceeding under 
this chapter for the purpose of making the rel-
evant determination under section 111, 112, 114, 
115, 116, 118, 119, 1004, or 1007, as the case 
may be. 
‘‘(ii) Petitions to participate shall be filed 
by no later than 30 days after publication of no-
tice of commencement of a proceeding, under 
clause (i), except that the Copyright Royalty 
Judges may, for substantial good cause shown 
and if there is no prejudice to the participants 
that have already filed petitions, accept late peti-
tions to participate at any time up to the date 
that is 90 days before the date on which partici-
pants in the proceeding are to file their written 
direct statements. Notwithstanding the preceding 
sentence, petitioners whose petitions are filed 
more than 30 days after publication of notice of 
commencement of a proceeding are not eligible to 
object to a settlement reached during the vol-
untary 
negotiation 
period 
under 
section 
803(b)(3), and any objection filed by such a peti-
tioner shall not be taken into account by the 
Copyright Royalty Judges. 
‘‘(B) PETITIONS
TO
PARTICIPATE.—Each 
petition to participate in a proceeding shall de-
scribe the petitioner’s interest in the subject mat-
ter of the proceeding. Parties with similar inter-
ests may file a single petition to participate. 
‘‘(2) PARTICIPATION
IN
GENERAL.—Subject to 
paragraph (4), a person may participate in a pro-
ceeding under this chapter, including through the sub-
mission of briefs or other information, only if—
‘‘(A) that person has filed a petition to par-
ticipate in accordance with paragraph (1) (ei-
ther individually or as a group under paragraph 
(1)(B)), together with a filing fee of $150; 
‘‘(B) the Copyright Royalty Judges have not 
determined that the petition to participate is 
facially invalid; and 
‘‘(C) the Copyright Royalty Judges have not 
determined, sua sponte or on the motion of an-
other participant in the proceeding, that the per-
son lacks a significant interest in the proceeding. 
‘‘(3) VOLUNTARY NEGOTIATION PERIOD.—
‘‘(A) IN GENERAL.—Promptly after the date 
for filing of petitions to participate in a pro-
ceeding, the Copyright Royalty Judges shall 
make available to all participants in the pro-
ceeding a list of such participants and shall ini-
tiate a voluntary negotiation period among the 
participants. 
‘‘(B) LENGTH OF PROCEEDINGS.—The vol-
untary negotiation period initiated under sub-
paragraph (A) shall be 3 months.
‘‘(C) 
DETERMINATION
OF
SUBSEQUENT 
PROCEEDINGS.—At the close of the voluntary ne-
gotiation proceedings, the Copyright Royalty 
Judges shall, if further proceedings under this 
chapter are necessary, determine whether and to 
what extent paragraphs (4) and (5) will apply 
to the parties. 
‘‘(4) SMALL CLAIMS PROCEDURE IN DISTRIBU-
TION PROCEEDINGS.—
‘‘(A) IN
GENERAL.—If, in a proceeding 
under this chapter to determine the distribution 
of royalties, a participant in the proceeding as-
serts a claim in the amount of $10,000 or less, 
the Copyright Royalty Judges shall decide the 
controversy on the basis of the filing of the writ-
ten direct statement by the participant, the re-
sponse by any opposing participant, and 1 addi-
tional response by each such party. The partici-
pant asserting the claim shall not be required to 
pay the filing fee under paragraph (2). 
‘‘(B) BAD FAITH INFLATION OF CLAIM.—If 
the Copyright Royalty Judges determine that a 
participant asserts in bad faith an amount in 
controversy in excess of $10,000 for the purpose 
of avoiding a determination under the procedure
set forth in subparagraph (A), the Copyright 
Royalty Judges shall impose a fine on that par-
ticipant in an amount not to exceed the dif-
ference between the actual amount distributed 
and the amount asserted by the participant. 
‘‘(5) PAPER PROCEEDINGS.—The Copyright Roy-
alty Judges in proceedings under this chapter may 
decide, sua sponte or upon motion of a participant, 
to determine issues on the basis of the filing of the 
written direct statement by the participant, the re-
sponse by any opposing participant, and one addi-
tional response by each such participant. Prior to 
making such decision to proceed on such a paper 
record only, the Copyright Royalty Judges shall offer 
to all parties to the proceeding the opportunity to 
comment on the decision. The procedure under this 
paragraph—
‘‘(A) shall be applied in cases in which 
there is no genuine issue of material fact, there 
is no need for evidentiary hearings, and all par-
ticipants in the proceeding agree in writing to 
the procedure; and 
‘‘(B) may be applied under such other cir-
cumstances as the Copyright Royalty Judges 
consider appropriate.
‘‘(6) REGULATIONS.—
‘‘(A) IN GENERAL.—The Copyright Royalty 
Judges may issue regulations to carry out their 
functions under this title. All regulations issued 
by the Copyright Royalty Judges are subject to 
the approval of the Librarian of Congress. Not 
later than 120 days after Copyright Royalty 
Judges or interim Copyright Royalty Judges, as 
the case may be, are first appointed after the en-
actment of the Copyright Royalty and Distribu-
tion Reform Act of 2004, such judges shall issue 
regulations to govern proceedings under this 
chapter. 
‘‘(B) INTERIM REGULATIONS.—Until regu-
lations are adopted under subparagraph (A), the 
Copyright Royalty Judges shall apply the regu-
lations in effect under this chapter on the day 
before the effective date of the Copyright Royalty 
and Distribution Reform Act of 2004, to the ex-
tent such regulations are not inconsistent with 
this chapter, except that functions carried out 
under such regulations by the Librarian of Con-
gress, the Register of Copyrights, or copyright ar-
bitration royalty panels that, as of such date of 
enactment, are to be carried out by the Copy-
right Royalty Judges under this chapter, shall be 
carried out by the Copyright Royalty Judges 
under such regulations. 
‘‘(C) REQUIREMENTS.—Regulations issued 
under subparagraph (A) shall include the fol-
lowing: 
‘‘(i) The written direct statements of 
all participants in a proceeding under 
paragraph (2) shall be filed by a date speci-
fied by the Copyright Royalty Judges, 
which may be no earlier than four months, 
and no later than five months, after the end 
of the voluntary negotiation period under 
paragraph (3). Notwithstanding the pre-
ceding sentence, the Copyright Royalty 
Judges may allow a participant in a pro-
ceeding to file an amended written direct 
statement based on new information re-
ceived during the discovery process, within 
15 days after the end of the discovery period 
specified in clause (iii). 
‘‘(ii)(I) Following the submission to 
the Copyright Royalty Judges of written di-
rect statements by the participants in a 
proceeding under paragraph (2), the judges
shall meet with the participants for the pur-
pose of setting a schedule for conducting 
and completing discovery. Such schedule 
shall be determined by the Copyright Roy-
alty Judges. 
‘‘(II) In this chapter, the term ‘written 
direct statements’ means witness statements, 
testimony, and exhibits to be presented in 
the proceedings, and such other information 
that is necessary to establish terms and 
rates, or the distribution of royalty pay-
ments, as the case may be, as set forth in 
regulations issued by the Copyright Royalty 
Judges. 
‘‘(iii) Hearsay may be admitted in 
proceedings under this chapter to the extent 
deemed appropriate by the Copyright Roy-
alty Judges. 
‘‘(iv) Discovery in such proceedings 
shall be permitted for a period of 60 days, 
except for discovery ordered by the Copy-
right Royalty Judges in connection with the 
resolution of motions, orders and disputes 
pending at the end of such period.
‘‘(v) Any participant under paragraph 
(2) in a proceeding under this chapter to 
determine royalty rates may request of an 
opposing participant nonprivileged docu-
ments directly related to the written direct 
statement of that participant. Any objection 
to such a request shall be resolved by a mo-
tion or request to compel production made 
to the Copyright Royalty Judges according 
to regulations adopted by the Copyright 
Royalty Judges. Each motion or request to 
compel discovery shall be determined by the 
Copyright Royalty Judges, or by a Copy-
right Royalty Judge when permitted under 
subsection (a)(2). Upon such motion, the 
Copyright Royalty Judges may order dis-
covery pursuant to regulations established 
under this paragraph. 
‘‘(vi) Any participant under para-
graph (2) in a proceeding under this chap-
ter to determine royalty rates may, upon a 
written motion to the Copyright Royalty 
Judges, request of an opposing participant 
or witness other relevant information and 
materials if absent the discovery sought the
moving party would be prejudiced or the 
Copyright Royalty Judges’ resolution of the 
proceeding would be substantially impaired. 
Absent a showing of substantial good cause 
or demonstration of a likelihood of substan-
tial prejudice, no participant in a pro-
ceeding may take more than 3 depositions 
and propound more than 10 interrogatories 
in that proceeding. Absent such a showing, 
the total number of depositions ordered in 
such a proceeding shall not exceed 10, and 
the total number of interrogatories shall not 
exceed 25 in each proceeding. In deter-
mining whether discovery will be granted 
under this clause, the Copyright Royalty 
Judges may consider—
‘‘(I) 
whether 
the 
information 
sought would serve to protect the integ-
rity of the proceeding, to prevent sub-
stantial prejudice to any participant, 
or to correct a material misrepresenta-
tion or omission by any participant; 
‘‘(II) whether the burden or ex-
pense of producing the requested infor-
mation or materials outweighs the like-
100
ly benefit, taking into account the 
needs and resources of the participants, 
the importance of the issues at stake, 
and the probative value of the re-
quested information or materials in re-
solving such issues; 
‘‘(III) whether the requested infor-
mation or materials would be unrea-
sonably cumulative or duplicative, or 
are obtainable from another source that 
is more convenient, less burdensome, or 
less expensive; and 
‘‘(IV) whether the participant 
seeking discovery has had ample oppor-
tunity by discovery in the proceeding 
or by other means to obtain the infor-
mation sought. 
‘‘(vii) The rules and practices in effect 
on the day before the effective date of the 
Copyright Royalty and Distribution Reform 
Act of 2004, relating to discovery in pro-
ceedings under this chapter to determine the 
distribution of royalty fees, shall continue to 
apply to such proceedings on and after such 
effective date.
101
‘‘(viii) In proceedings to determine 
royalty rates, the Copyright Royalty Judges 
may issue a subpoena commanding a par-
ticipant or witness in a proceeding to deter-
mine royalty rates to appear and give testi-
mony or to produce and permit inspection 
of documents or tangible things if the Copy-
right Royalty Judges’ resolution of the pro-
ceeding would be substantially impaired by 
the absence of such testimony or production 
of documents or tangible things. Such sub-
poena shall specify with reasonable particu-
larity the materials to be produced or the 
scope and nature of the required testimony. 
Nothing in this subparagraph shall preclude 
the Copyright Royalty Judges from request-
ing the production by a nonparticipant of 
information or materials relevant to the res-
olution by the Copyright Royalty Judges of 
a material issue of fact. A Copyright Roy-
alty Judge may not issue a subpoena under 
this clause to any person who was a partic-
ipant in a proceeding to determine royalty 
rates and has negotiated a settlement with 
respect to those rates.
102
‘‘(ix) The Copyright Royalty Judges 
shall order a settlement conference among 
the participants in the proceeding to facili-
tate the presentation of offers of settlement 
among the participants. The settlement con-
ference shall be held during a 21-day period 
following the end of the discovery period 
and shall take place outside the presence of 
the Copyright Royalty Judges. 
‘‘(x) No evidence, including exhibits, 
may be submitted in the written direct 
statement of a participant without a spon-
soring witness, except where the Copyright 
Royalty Judges have taken official notice, 
or in the case of incorporation by reference 
of past records, or for good cause shown. 
‘‘(c) 
DETERMINATION
OF
COPYRIGHT
ROYALTY 
JUDGES.—
‘‘(1) TIMING.—The Copyright Royalty Judges 
shall issue their determination in a proceeding not 
later than 11 months after the conclusion of the 21-
day settlement conference period under subsection 
(b)(3)(C)(vi), but, in the case of a proceeding to deter-
mine successors to rates or terms that expire on a 
specified date, in no event later than 15 days before
103
the expiration of the then current statutory rates and 
terms. 
‘‘(2) REHEARINGS.—
‘‘(A) IN GENERAL.—The Copyright Royalty 
Judges may, in exceptional cases, upon motion 
of a participant under subsection (b)(2), order a 
rehearing, after the determination in a pro-
ceeding is issued under paragraph (1), on such 
matters as the Copyright Royalty Judges deter-
mine to be appropriate. 
‘‘(B) TIMING
FOR
FILING
MOTION.—Any 
motion for a rehearing under subparagraph (A) 
may only be filed within 15 days after the date 
on which the Copyright Royalty Judges deliver 
their initial determination concerning rates and 
terms to the participants in the proceeding. 
‘‘(C) PARTICIPATION
BY
OPPOSING
PARTY 
NOT REQUIRED.—In any case in which a rehear-
ing is ordered, any opposing party shall not be 
required to participate in the rehearing, except 
as provided under subsection (d)(1). 
‘‘(D) NO NEGATIVE INFERENCE.—No nega-
tive inference shall be drawn from lack of par-
ticipation in a rehearing.
104
‘‘(E) CONTINUITY OF RATES AND TERMS.—
(i) If the decision of the Copyright Royalty 
Judges on any motion for a rehearing is not ren-
dered before the expiration of the statutory rates 
and terms that were previously in effect, in the 
case of a proceeding to determine successors to 
rates and terms that expire on a specified date, 
then—
‘‘(I) the initial determination of the 
Copyright Royalty Judges that is the sub-
ject of the rehearing motion shall be effective 
as of the day following the date on which 
the rates and terms that were previously in 
effect expire; and 
‘‘(II) in the case of a proceeding under 
section 114(f)(1)(C) or 114(f)(2)(C), royalty 
rates and terms shall, for purposes of sec-
tion 114(f)(4)(B), be deemed to have been 
set at those rates and terms contained in the 
initial determination of the Copyright Roy-
alty Judges that is the subject of the rehear-
ing motion, as of the date of that deter-
mination. 
‘‘(ii) The pendency of a motion for a re-
hearing under this paragraph shall not relieve
105
persons obligated to make royalty payments who 
would be affected by the determination on that 
motion from providing the statements of account 
and any reports of use, to the extent required, 
and paying the royalties required under the rel-
evant determination or regulations. 
‘‘(iii) Notwithstanding clause (ii), whenever 
royalties described in clause (ii) are paid to a 
person other than the Copyright Office, the entity 
designated by the Copyright Royalty Judges to 
which such royalties are paid by the copyright 
user (and any successor thereto) shall, within 60 
days after the motion for rehearing is resolved 
or, if the motion is granted, within 60 days after 
the rehearing is concluded, return any excess 
amounts previously paid to the extent necessary 
to comply with the final determination of roy-
alty rates by the Copyright Royalty Judges. 
‘‘(3) CONTENTS OF DETERMINATION.—A deter-
mination of the Copyright Royalty Judges shall be 
supported by the written record and shall set forth the 
findings of fact relied on by the Copyright Royalty 
Judges. Among other terms adopted in a determina-
tion, the Copyright Royalty Judges may specify no-
tice and recordkeeping requirements of users of the
106
copyrights at issue that apply in lieu of those that 
would otherwise apply under regulations. 
‘‘(4) CONTINUING JURISDICTION.—The Copyright 
Royalty Judges may, with the approval of the Reg-
ister of Copyrights, issue an amendment to a written 
determination to correct any technical or clerical er-
rors in the determination or to modify the terms, but 
not the rates, of royalty payments in response to un-
foreseen circumstances that would frustrate the proper 
implementation of such determination. Such amend-
ment shall be set forth in a written addendum to the 
determination that shall be distributed to the partici-
pants of the proceeding and shall be published in the 
Federal Register. 
‘‘(5) PROTECTIVE ORDER.—The Copyright Roy-
alty Judges may issue such orders as may be appro-
priate to protect confidential information, including 
orders excluding confidential information from the 
record of the determination that is published or made 
available to the public, except that any terms or rates 
of royalty payments or distributions may not be ex-
cluded. 
‘‘(6) PUBLICATION OF DETERMINATION.—The Li-
brarian of Congress shall cause the determination, 
and any corrections thereto, to be published in the
107
Federal Register. The Librarian of Congress shall also 
publicize the determination and corrections in such 
other manner as the Librarian considers appropriate, 
including, but not limited to, publication on the 
Internet. The Librarian of Congress shall also make 
the determination, corrections, and the accompanying 
record available for public inspection and copying. 
‘‘(7) LATE PAYMENT.—A determination of Copy-
right Royalty Judges may include terms with respect 
to late payment, but in no way shall such terms pre-
vent the copyright holder from asserting other rights 
or remedies provided under this title. 
‘‘(d) JUDICIAL REVIEW.—
‘‘(1) APPEAL.—Any determination of the Copy-
right Royalty Judges under subsection (c) may, with-
in 30 days after the publication of the determination 
in the Federal Register, be appealed, to the United 
States Court of Appeals for the District of Columbia 
Circuit, by any aggrieved participant in the pro-
ceeding under subsection (b)(2) who fully participated 
in the proceeding and who would be bound by the de-
termination. Any party that did not participate in a 
rehearing may not raise any issue that was the sub-
ject of that rehearing at any stage of judicial review 
of the hearing determination. If no appeal is brought
108
within that 30-day period, the determination of the 
Copyright Royalty Judges shall be final, and the roy-
alty fee or determination with respect to the distribu-
tion of fees, as the case may be, shall take effect as 
set forth in paragraph (2). 
‘‘(2) EFFECT OF RATES.—
‘‘(A) EXPIRATION
ON
SPECIFIED
DATE.—
When this title provides that the royalty rates 
and terms that were previously in effect are to 
expire on a specified date, any adjustment or de-
termination by the Copyright Royalty Judges of 
successor rates and terms for an ensuing statu-
tory license period shall be effective as of the day 
following the date of expiration of the rates and 
terms that were previously in effect, even if the 
determination of the Copyright Royalty Judges 
is rendered on a later date. 
‘‘(B) OTHER CASES.—In cases where rates 
and terms do not expire on a specified date or 
have not yet been established, the Copyright Roy-
alty Judges shall determine the dates that suc-
cessor or new rates or terms shall take effect. Ex-
cept as otherwise provided in this title, the rates 
and terms previously in effect, to the extent ap-
109
plicable, shall remain in effect until such suc-
cessor rates and terms become effective. 
‘‘(C) OBLIGATION TO MAKE PAYMENTS.—
‘‘(i) The pendency of an appeal under 
this subsection shall not relieve persons obli-
gated to make royalty payments under sec-
tion 111, 112, 114, 115, 116, 118, 119, or 
1003, who would be affected by the deter-
mination on appeal, from—
‘‘(I) providing the statements of 
account and any report of use; and 
‘‘(II) paying the royalties re-
quired under the relevant determina-
tion or regulations. 
‘‘(ii) Notwithstanding clause (i), whenever 
royalties described in clause (i) are paid to a 
person other than the Copyright Office, the entity 
designated by the Copyright Royalty Judges to 
which such royalties are paid by the copyright 
user (and any successor thereto) shall, within 60 
days after the final resolution of the appeal, re-
turn any excess amounts previously paid (and 
interest thereon, if ordered pursuant to para-
graph (3)) to the extent necessary to comply with
110
the final determination of royalty rates on ap-
peal. 
‘‘(3) JURISDICTION
OF
COURT.—If the court, 
pursuant to section 706 of title 5, modifies or vacates 
a determination of the Copyright Royalty Judges, the 
court may enter its own determination with respect 
to the amount or distribution of royalty fees and 
costs, and order the repayment of any excess fees, the 
payment of any underpaid fees, and the payment of 
interest pertaining respectively thereto, in accordance 
with its final judgment. The court may also vacate 
the determination of the Copyright Royalty Judges 
and remand the case to the Copyright Royalty Judges 
for further proceedings in accordance with subsection 
(a). 
‘‘(e) ADMINISTRATIVE MATTERS.—
‘‘(1) DEDUCTION OF COSTS OF LIBRARY OF CON-
GRESS AND COPYRIGHT OFFICE FROM FILING FEES.—
‘‘(A) DEDUCTION FROM FILING FEES.—The 
Librarian of Congress may, to the extent not oth-
erwise provided under this title, deduct from the 
filing fees collected under subsection (b) for a 
particular proceeding under this chapter the rea-
sonable costs incurred by the Librarian of Con-
gress, the Copyright Office, and the Copyright
111
Royalty Judges in conducting that proceeding, 
other than the salaries of the Copyright Royalty 
Judges and the 3 staff members appointed under 
section 802(b).
‘‘(B) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—There are authorized to be appropriated 
such sums as may be necessary to pay the costs 
incurred under this chapter not covered by the 
filing fees collected under subsection (b). All 
funds made available pursuant to this subpara-
graph shall remain available until expended. 
‘‘(2) POSITIONS REQUIRED FOR ADMINISTRATION 
OF COMPULSORY LICENSING.—Section 307 of the Leg-
islative Branch Appropriations Act, 1994, shall not 
apply to employee positions in the Library of Con-
gress that are required to be filled in order to carry 
out section 111, 112, 114, 115, 116, 118, or 119 or 
chapter 10. 
‘‘§ 804. Institution of proceedings 
‘‘(a) FILING
OF PETITION.—With respect to pro-
ceedings referred to in paragraphs (1) and (2) of section 
801(b) concerning the determination or adjustment of roy-
alty rates as provided in sections 111, 112, 114, 115, 116, 
118, 119, and 1004, during the calendar years specified in 
the schedule set forth in subsection (b), any owner or user
112
of a copyrighted work whose royalty rates are specified by 
this title, or are established under this chapter before or 
after the enactment of the Copyright Royalty and Distribu-
tion Reform Act of 2004, may file a petition with the Copy-
right Royalty Judges declaring that the petitioner requests 
a determination or adjustment of the rate. The Copyright 
Royalty Judges shall make a determination as to whether 
the petitioner has such a significant interest in the royalty 
rate in which a determination or adjustment is requested. 
If the Copyright Royalty Judges determine that the peti-
tioner has such a significant interest, the Copyright Roy-
alty Judges shall cause notice of this determination, with 
the reasons for such determination, to be published in the 
Federal Register, together with the notice of commencement 
of proceedings under this chapter. With respect to pro-
ceedings under paragraph (1) of section 801(b) concerning 
the determination or adjustment of royalty rates as pro-
vided in sections 112 and 114, during the calendar years 
specified in the schedule set forth in subsection (b), the 
Copyright Royalty Judges shall cause notice of commence-
ment of proceedings under this chapter to be published in 
the Federal Register as provided in section 803(b)(1)(A). 
‘‘(b) TIMING OF PROCEEDINGS.—
‘‘(1) SECTION 111 PROCEEDINGS.—(A) A petition 
described in subsection (a) to initiate proceedings
113
under section 801(b)(2) concerning the adjustment of 
royalty rates under section 111 to which subpara-
graph (A) or (D) of section 801(b)(2) applies may be 
filed during the year 2005 and in each subsequent 
fifth calendar year. 
‘‘(B) In order to initiate proceedings under sec-
tion 801(b)(2) concerning the adjustment of royalty 
rates under section 111 to which subparagraph (B) or 
(C) of section 801(b)(2) applies, within 12 months 
after an event described in either of those subsections, 
any owner or user of a copyrighted work whose roy-
alty rates are specified by section 111, or by a rate 
established under this chapter before or after the en-
actment of the Copyright Royalty and Distribution 
Reform Act of 2004, may file a petition with the 
Copyright Royalty Judges declaring that the peti-
tioner requests an adjustment of the rate. The Copy-
right Royalty Judges shall then proceed as set forth 
in subsection (a) of this section. Any change in roy-
alty rates made under this chapter pursuant to this 
subparagraph may be reconsidered in the year 2005, 
and each fifth calendar year thereafter, in accordance 
with the provisions in section 801(b)(3) (B) or (C), 
as the case may be. A petition for adjustment of rates 
under section 11(d)(1)(B) as a result of a change is
114
the rules and regulations of the Federal Communica-
tions Commission shall set forth the change on which 
the petition is based. 
‘‘(2) CERTAIN SECTION 112 PROCEEDINGS.—Pro-
ceedings under this chapter shall be commenced in the 
year 2007 to determine reasonable terms and rates of 
royalty payments for the activities described in sec-
tion 112(e)(1) relating to the limitation on exclusive 
rights specified by section 114(d)(1)(C)(iv), to become 
effective on January 1, 2009. Such proceedings shall 
be repeated in each subsequent fifth calendar year. 
‘‘(3) SECTION 114 AND CORRESPONDING 112 PRO-
CEEDINGS.—
‘‘(A) 
FOR
ELIGIBLE
NONSUBSCRIPTION 
SERVICES AND NEW SUBSCRIPTION SERVICES.—
Proceedings under this chapter shall be com-
menced as soon as practicable after the effective 
date of the Copyright Royalty and Distribution 
Reform Act of 2004 to determine reasonable 
terms and rates of royalty payments under sec-
tions 114 and 112 for the activities of eligible 
nonsubscription transmission services and new 
subscription services, to be effective for the period 
beginning on January 1, 2006, and ending on 
December 31, 2010. Such proceedings shall next
115
be commenced in January 2009 to determine 
reasonable terms and rates of royalty payments, 
to become effective on January 1, 2011. There-
after, such proceedings shall be repeated in each 
subsequent fifth calendar year. 
‘‘(B) FOR PREEXISTING SUBSCRIPTION AND 
SATELLITE DIGITAL AUDIO RADIO SERVICES.—
Proceedings under this chapter shall be com-
menced in January 2006 to determine reasonable 
terms and rates of royalty payments under sec-
tions 114 and 112 for the activities of pre-
existing subscription services, to be effective dur-
ing the period beginning on January 1, 2008, 
and ending on December 31, 2012, and pre-
existing satellite digital audio radio services, to 
be effective during the period beginning on Janu-
ary 1, 2007, and ending on December 31, 2012. 
Such proceedings shall next be commenced in 
2011 to determine reasonable terms and rates of 
royalty payments, to become effective on Janu-
ary 1, 2013. Thereafter, such proceedings shall be 
repeated in each subsequent fifth calendar year. 
‘‘(C)(i) Notwithstanding any other provi-
sion of this chapter, this subparagraph shall gov-
ern proceedings commenced pursuant to section
116
114(f)(1)(C) and 114(f)(2)(C) concerning new 
types of services. 
‘‘(ii) Not later than 30 days after a petition 
to determine rates and terms for a new type of 
service that is filed by any copyright owner of 
sound recordings, or such new type of service, in-
dicating that such new type of service is or is 
about to become operational, the Copyright Roy-
alty Judges shall issue a notice for a proceeding 
to determine rates and terms for such service. 
‘‘(iii) The proceeding shall follow the sched-
ule set forth in such subsections (b), (c), and (d) 
of section 803, except that—
‘‘(I) the determination shall be issued 
by not later than 24 months after the publi-
cation of the notice under clause (ii); and 
‘‘(II) the decision shall take effect as 
provided in subsections (c)(2) and (d)(2) of 
section 803 and section 114(f)(4)(B)(ii) and 
(C). 
‘‘(iv) The rates and terms shall remain in 
effect for the period set forth in section 
114(f)(1)(C) or 114(f)(2)(C), as the case may be. 
‘‘(4) SECTION 115 PROCEEDINGS.—A petition de-
scribed in subsection (a) to initiate proceedings under
117
section 801(b)(1) concerning the adjustment or deter-
mination of royalty rates as provided in section 115 
may be filed in the year 2006 and in each subsequent 
fifth calendar year, or at such other times as the par-
ties have agreed under section 115(c)(3) (B) and (C). 
‘‘(5) SECTION 116 PROCEEDINGS.—(A) A petition 
described in subsection (a) to initiate proceedings 
under section 801(b) concerning the determination of 
royalty rates and terms as provided in section 116 
may be filed at any time within 1 year after nego-
tiated licenses authorized by section 116 are termi-
nated or expire and are not replaced by subsequent 
agreements. 
‘‘(B) If a negotiated license authorized by section 
116 is terminated or expires and is not replaced by 
another such license agreement which provides per-
mission to use a quantity of musical works not sub-
stantially smaller than the quantity of such works 
performed on coin-operated phonorecord players dur-
ing the 1-year period ending March 1, 1989, the 
Copyright Royalty Judges shall, upon petition filed 
under paragraph (1) within 1 year after such termi-
nation or expiration, commence a proceeding to 
promptly establish an interim royalty rate or rates 
for the public performance by means of a coin-oper-
118
ated phonorecord player of nondramatic musical 
works embodied in phonorecords which had been sub-
ject to the terminated or expired negotiated license 
agreement. Such rate or rates shall be the same as the 
last such rate or rates and shall remain in force until 
the conclusion of proceedings by the Copyright Roy-
alty Judges, in accordance with section 803, to adjust 
the royalty rates applicable to such works, or until 
superseded by a new negotiated license agreement, as 
provided in section 116(b).
‘‘(6) SECTION 118 PROCEEDINGS.—A petition de-
scribed in subsection (a) to initiate proceedings under 
section 801(b)(1) concerning the determination of rea-
sonable terms and rates of royalty payments as pro-
vided in section 118 may be filed in the year 2006 
and in each subsequent fifth calendar year. 
‘‘(7) SECTION
1004
PROCEEDINGS.—A petition 
described in subsection (a) to initiate proceedings 
under section 801(b)(1) concerning the adjustment of 
reasonable royalty rates under section 1004 may be 
filed as provided in section 1004(a)(3). 
‘‘(8) PROCEEDINGS CONCERNING DISTRIBUTION 
OF
ROYALTY
FEES.—With respect to proceedings 
under section 801(b)(3) concerning the distribution of 
royalty fees in certain circumstances under section
119
111, 119, or 1007, the Copyright Royalty Judges 
shall, upon a determination that a controversy exists 
concerning such distribution, cause to be published in 
the Federal Register notice of commencement of pro-
ceedings under this chapter. 
‘‘§ 805. General rule for voluntarily negotiated agree-
ments 
‘‘Any rates or terms under this title that—
‘‘(1) are agreed to by participants to a pro-
ceeding under section 803(b)(3), 
‘‘(2) are adopted by the Copyright Royalty 
Judges as part of a determination under this chapter, 
and 
‘‘(3) are in effect for a period shorter than would 
otherwise apply under a determination pursuant to 
this chapter, 
shall remain in effect for such period of time as would other-
wise apply under such determination, except that the Copy-
right Royalty Judges shall adjust the rates pursuant to the 
voluntary negotiations to reflect national monetary infla-
tion during the additional period the rates remain in ef-
fect.’’. 
(b) CONFORMING AMENDMENT.—The table of chapters 
for title 17, United States Code, is amended by striking the 
item relating to chapter 8 and inserting the following:
‘‘8. Proceedings by Copyright Royalty Judges ...........................
801’’.
120
SEC. 4. DEFINITION. 
Section 101 is amended by inserting after the defini-
tion of ‘‘copies’’ the following: 
‘‘A ‘Copyright Royalty Judge’ is a Copyright 
Royalty Judge appointed under section 802 of this 
title, and includes any individual serving as an in-
terim Copyright Royalty Judge under such section.’’. 
SEC. 5. TECHNICAL AMENDMENTS. 
(a) CABLE RATES.—Section 111(d) is amended—
(1) in paragraph (2), in the second sentence, by 
striking ‘‘a copyright arbitration royalty panel’’ and 
inserting ‘‘the Copyright Royalty Judges.’’; and 
(2) in paragraph (4)—
(A) in subparagraph (A), by striking ‘‘Li-
brarian of Congress’’ each place it appears and 
inserting ‘‘Copyright Royalty Judges’’; 
(B) in subparagraph (B)—
(i) in the first sentence, by striking 
‘‘Librarian of Congress shall, upon the rec-
ommendation of the Register of Copy-
rights,’’ and inserting ‘‘Copyright Royalty 
Judges shall’’; 
(ii) in the second sentence, by striking 
‘‘Librarian 
determines’’ 
and 
inserting 
‘‘Copyright Royalty Judges determine’’; and 
(iii) in the third sentence—
121
(I) by striking ‘‘Librarian’’ each 
place it appears and inserting ‘‘Copy-
right Royalty Judges’’; and 
(II) by striking ‘‘convene a copy-
right arbitration royalty panel’’ and 
inserting ‘‘conduct a proceeding’’; and 
(C) in subparagraph (C), by striking ‘‘Li-
brarian of Congress’’ and inserting ‘‘Copyright 
Royalty Judges’’.
(b) EPHEMERAL RECORDINGS.—Section 112(e) is 
amended—
(1) in paragraph (3)—
(A) by amending the first sentence to read 
as follows: ‘‘Proceedings under chapter 8 shall 
determine reasonable rates and terms of royalty 
payments for the activities specified by para-
graph (1) during the 5-year periods beginning 
on January 1 of the second year following the 
year in which the proceedings are to be com-
menced, or such other periods as the parties may 
agree.’’; and 
(B) by striking the second sentence; 
(C) in the third sentence, by striking ‘‘Li-
brarian of Congress’’ and inserting ‘‘Copyright 
Royalty Judges’’; and
122
(D) in the fourth sentence, by striking ‘‘ne-
gotiation’’; 
(2) in paragraph (4)—
(A) by amending the first sentence to read 
as follows: ‘‘The schedule of reasonable rates and 
terms determined by the Copyright Royalty 
Judges shall, subject to paragraph (5), be bind-
ing on all copyright owners of sound recordings 
and transmitting organizations entitled to a 
statutory license under this subsection during the 
5-year period specified in paragraph (3), or such 
other period as the parties may agree.’’; 
(B) by striking ‘‘copyright arbitration roy-
alty panel’’ each subsequent place it appears and 
inserting ‘‘Copyright Royalty Judges’’; 
(C) in the fourth sentence, by striking ‘‘its 
decision’’ and inserting ‘‘their decision’’; 
(D) in the fifth sentence, by striking ‘‘nego-
tiated as provided’’ and inserting ‘‘described’’; 
and 
(E) in the last sentence, by striking ‘‘Li-
brarian of Congress’’ and inserting ‘‘Copyright 
Royalty Judges’’; 
(3) in paragraph (5), by striking ‘‘or decision by 
the Librarian of Congress’’ and inserting ‘‘, decision
123
by the Librarian of Congress, or determination by the 
Copyright Royalty Judges’’;
(4) by striking paragraph (6) and redesignating 
paragraphs (7), (8), and (9), as paragraphs (6), (7), 
and (8), respectively; and 
(5) in paragraph (6)(A), as so redesignated, by 
striking ‘‘Librarian of Congress’’ and inserting 
‘‘Copyright Royalty Judges’’. 
(c) SCOPE OF EXCLUSIVE RIGHTS IN SOUND RECORD-
INGS.—Section 114(f) is amended—
(1) in paragraph (1)—
(A) in subparagraph (A)—
(i) by amending the first sentence to 
read as follows: ‘‘Proceedings under chapter 
8 shall determine reasonable rates and 
terms of royalty payments for subscription 
transmissions by preexisting subscription 
services and transmissions by preexisting 
satellite digital audio radio services speci-
fied by subsection (d)(2) during 5-year peri-
ods beginning on January 1 of the second 
year following the year in which the pro-
ceedings are to be commenced, except where 
different transitional periods are provided
124
in section 804(b), or such periods as the 
parties may agree.’’; 
(ii) in the third sentence, by striking 
‘‘Librarian of Congress’’ and inserting 
‘‘Copyright Royalty Judges’’; and 
(iii) in the fourth sentence, by striking 
‘‘negotiation’’; 
(B) in subparagraph (B)—
(i) by amending the first sentence to 
read as follows: ‘‘The schedule of reasonable 
rates and terms determined by the Copy-
right Royalty Judges shall, subject to para-
graph (3), be binding on all copyright own-
ers of sound recordings and entities per-
forming sound recordings affected by this 
paragraph during the 5-year period speci-
fied in subparagraph (A), a transitional pe-
riod provided in section 804(b), or such 
other period as the parties may agree.’’; 
(ii) in the second sentence, by striking 
‘‘copyright arbitration royalty panel’’ and 
inserting ‘‘Copyright Royalty Judges’’; and 
(iii) in the second sentence, by striking 
‘‘negotiated as provided’’ and inserting ‘‘de-
scribed’’; and
125
(C) by amending subparagraph (C) to read 
as follows: 
‘‘(C) The procedures under subparagraphs (A) 
and (B) also shall be initiated pursuant to a petition 
filed by any copyright owners of sound recordings, 
any preexisting subscription services, or any pre-
existing satellite digital audio radio services indi-
cating that a new type of subscription digital audio 
transmission service on which sound recordings are 
performed is or is about to become operational, for the 
purpose of determining reasonable terms and rates of 
royalty payments with respect to such new type of 
transmission service for the period beginning with the 
inception of such new type of service and ending on 
the date on which the royalty rates and terms for sub-
scription digital audio transmission services most re-
cently determined under subparagraph (A) or (B) 
and chapter 8 expire, or such other period as the par-
ties may agree.’’; 
(2) in paragraph (2)—
(A) in subparagraph (A)—
(i) by amending the first paragraph to 
read as follows: ‘‘Proceedings under chapter 
8 shall determine reasonable rates and 
terms of royalty payments for subscription
126
transmissions by preexisting subscription 
services and transmissions by preexisting 
satellite digital audio radio services speci-
fied by subsection (d)(2) during 5-year peri-
ods beginning on January 1 of the second 
year following the year in which the pro-
ceedings are to be commenced, except where 
different transitional periods are provided 
in section 804(b), or such periods as the 
parties may agree.’’; 
(ii) in the third sentence, by striking 
‘‘Librarian of Congress’’ and inserting 
‘‘Copyright Royalty Judges’’; and 
(iii) in the fourth sentence, by striking 
‘‘negotiation’’; 
(B) in subparagraph (B)—
(i) by amending the first sentence to 
read as follows: ‘‘The schedule of reasonable 
rates and terms determined by the Copy-
right Royalty Judges shall, subject to para-
graph (3), be binding on all copyright own-
ers of sound recordings and entities per-
forming sound recordings affected by this 
paragraph during the 5-year period speci-
fied in subparagraph (A), a transitional pe-
127
riod provided in section 804(b), or such 
other period as the parties may agree.’’; 
(ii) by striking ‘‘copyright arbitration 
royalty panel’’ each subsequent place it ap-
pears and inserting ‘‘Copyright Royalty 
Judges’’; and 
(iii) in the last sentence by striking 
‘‘negotiated as provided’’ and inserting ‘‘de-
scribed in’’; and
(C) by amending subparagraph (C) to read 
as follows: 
‘‘(C) The procedures under subparagraphs (A) 
and (B) shall also be initiated pursuant to a petition 
filed by any copyright owners of sound recordings or 
any eligible nonsubscription service or new subscrip-
tion service indicating that a new type of eligible 
nonsubscription service or new subscription service on 
which sound recordings are performed is or is about 
to become operational, for the purpose of determining 
reasonable terms and rates of royalty payments with 
respect to such new type of service for the period be-
ginning with the inception of such new type of service 
and ending on the date on which the royalty rates 
and terms for preexisting subscription digital audio 
transmission services or preexisting satellite digital
128
radio audio services, as the case may be, most re-
cently determined under subparagraph (A) or (B) 
and chapter 8 expire, or such other period as the par-
ties may agree.’’;
(3) in paragraph (3), by striking ‘‘or decision by 
the Librarian of Congress’’ and inserting ‘‘, decision 
by the Librarian of Congress, or determination by the 
Copyright Royalty Judges’’; and 
(4) in paragraph (4)— 
(A) by striking ‘‘Librarian of Congress’’ 
each place it appears and inserting ‘‘Copyright 
Royalty Judges’’; and 
(B) by adding after the first sentence ‘‘The 
notice and recordkeeping rules in effect on the 
day before the effective date of the Copyright 
Royalty and Distribution Reform Act of 2004 
shall remain in effect until new regulations are 
promulgated by the Copyright Royalty Judges. If 
new regulations are promulgated under this sub-
paragraph, the Copyright Royalty Judges shall 
take into account the substance and effect of the 
rules in effect on the day before the effective date 
of the Copyright Royalty and Distribution Re-
form Act of 2004 and shall, to the extent prac-
ticable, avoid significant disruption of the func-
129
tion of the designated agents that are authorized 
to collect and distribute royalty fees as such 
functions exist on the day prior to the effective 
date of this Act.’’. 
(d) PHONORECORDS
OF
NONDRAMATIC
MUSICAL 
WORKS.—Section 115(c)(3) is amended—
(1) in subparagraph (A)(ii), by striking ‘‘(F)’’ 
and inserting ‘‘(E)’’; 
(2) in subparagraph (B)—
(A) by striking ‘‘under this paragraph’’ and 
inserting ‘‘under this section’’; and 
(B) by striking ‘‘subparagraphs (B) through 
(F)’’ and inserting ‘‘this subparagraph and sub-
paragraphs (B) through (E)’’; 
(3) in subparagraph (C)—
(A) by amending the first sentence to read 
as follows: ‘‘Proceedings under chapter 8 shall 
determine reasonable rates and terms of royalty 
payments for the activities specified by this sec-
tion during periods beginning with the effective 
date of such rates and terms, but not earlier than 
January 1 of the second year following the year 
in which the petition requesting the proceeding is 
filed, and ending on the effective date of successor