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‘‘(y) CONDUCT OF PARTIES AND ATTORNEYS.— 
‘‘(1) CERTIFICATION.—The Register of Copy-
rights shall establish regulations requiring certifi-
cation of the accuracy and truthfulness of state-
ments made by participants in proceedings before 
the Copyright Claims Board. 
‘‘(2) BAD
FAITH
CONDUCT.—Notwithstanding 
any other provision of law, in any proceeding in 
which a determination is rendered and it is estab-
lished that a party pursued a claim, counterclaim, or 
defense for a harassing or other improper purpose, 
or without a reasonable basis in law or fact, then, 
unless inconsistent with the interests of justice, the 
Copyright Claims Board shall in such determination 
award reasonable costs and attorneys’ fees to any 
adversely affected party of in an amount of not more 
than $5,000, except that— 
‘‘(A) if an adversely affected party ap-
peared pro se in the proceeding, the award to 
that party shall be for costs only, in an amount 
of not more than $2,500; and 
‘‘(B) in extraordinary circumstances, such 
as where a party has demonstrated a pattern or 
practice of bad faith conduct as described in 
this paragraph, the Copyright Claims Board 
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may, in the interests of justice, award costs and 
attorneys’ fees in excess of the limitations 
under this paragraph. 
‘‘(3) ADDITIONAL
PENALTY.—If the Board 
finds that on more than one occasion within a 12- 
month period a party pursued a claim, counterclaim, 
or defense before the Copyright Claims Board for a 
harassing or other improper purpose, or without a 
reasonable basis in law or fact, that party shall be 
barred from initiating a claim before the Copyright 
Claims Board under this chapter for a period of 12 
months beginning on the date on which the Board 
makes such a finding. Any proceeding commenced 
by that party that is still pending before the Board 
when such a finding is made shall be dismissed with-
out prejudice, except that if a proceeding has been 
deemed active under subsection (i), the proceeding 
shall be dismissed under this paragraph only if the 
respondent provides written consent thereto. 
‘‘(z) REGULATIONS
FOR SMALLER CLAIMS.—The 
Register of Copyrights shall establish regulations to pro-
vide for the consideration and determination, by at least 
one Copyright Claims Officer, of any claim under this 
chapter in which total damages sought do not exceed 
$5,000 (exclusive of attorneys’ fees and costs) that are 
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otherwise consistent with this chapter. A determination 
issued under this subsection shall have the same effect as 
a determination issued by the entire Copyright Claims 
Board. 
‘‘§ 1507. Effect of proceeding 
‘‘(a) DETERMINATION.—Subject to the reconsider-
ation and review processes provided under subsections (w) 
and (x) of section 1506 and section 1508(c), the issuance 
of a final determination by the Copyright Claims Board 
in a proceeding, including a default determination or de-
termination based on a failure to prosecute, shall, solely 
with respect to the parties to such determination, preclude 
relitigation before any court or tribunal, or before the 
Copyright Claims Board, of the claims and counterclaims 
asserted and finally determined by the Board, and may 
be relied upon for such purpose in a future action or pro-
ceeding arising from the same specific activity or activi-
ties, subject to the following: 
‘‘(1) A determination of the Copyright Claims 
Board shall not preclude litigation or relitigation as 
between the same or different parties before any 
court or tribunal, or the Copyright Claims Board, of 
the same or similar issues of fact or law in connec-
tion with claims or counterclaims not asserted or not 
finally determined by the Copyright Claims Board. 
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‘‘(2) A determination of ownership of a copy-
righted work for purposes of resolving a matter be-
fore the Copyright Claims Board may not be relied 
upon, and shall not have any preclusive effect, in 
any other action or proceeding before any court or 
tribunal, including the Copyright Claims Board. 
‘‘(3) Except to the extent permitted under this 
subsection and section 1508, any determination of 
the Copyright Claims Board may not be cited or re-
lied upon as legal precedent in any other action or 
proceeding before any court or tribunal, including 
the Copyright Claims Board. 
‘‘(b) CLASS ACTIONS NOT AFFECTED.— 
‘‘(1) IN
GENERAL.—A proceeding before the 
Copyright Claims Board shall not have any effect on 
a class action proceeding in a district court of the 
United States, and section 1509(a) shall not apply 
to a class action proceeding in a district court of the 
United States. 
‘‘(2) NOTICE OF CLASS ACTION.—Any party to 
an active proceeding before the Copyright Claims 
Board who receives notice of a pending class action, 
arising out of the same transaction or occurrence as 
the proceeding before the Copyright Claims Board, 
in which the party is a class member shall either— 
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‘‘(A) opt out of the class action, in accord-
ance with regulations established by the Reg-
ister of Copyrights; or 
‘‘(B) 
seek 
dismissal 
under 
section 
1506(q)(3) of the proceeding before the Copy-
right Claims Board. 
‘‘(c) OTHER MATERIALS IN PROCEEDING.—Except 
as permitted under this section and section 1508, a sub-
mission or statement of a party or witness made in connec-
tion with a proceeding before the Copyright Claims Board, 
including a proceeding that is dismissed, may not be cited 
or relied upon in, or serve as the basis of, any action or 
proceeding concerning rights or limitations on rights 
under this title before any court or tribunal, including the 
Copyright Claims Board. 
‘‘(d) APPLICABILITY OF SECTION 512(g).—A claim 
or counterclaim before the Copyright Claims Board that 
is brought under subsection (c)(1) or (c)(4) of section 
1504, or brought under subsection (c)(6) of section 1504 
and that relates to a claim under subsection (c)(1) or 
(c)(4) of such section, qualifies as an action seeking an 
order to restrain a subscriber from engaging in infringing 
activity under section 512(g)(2)(C) if— 
‘‘(1) notice of the commencement of the Copy-
right Claims Board proceeding is provided by the 
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claimant to the service provider’s designated agent 
before the service provider replaces the material fol-
lowing receipt of a counter notification under section 
512(g); and 
‘‘(2) the claim brought alleges infringement of 
the material identified in the notification of claimed 
infringement under section 512(c)(1)(C). 
‘‘(e) FAILURE TO ASSERT COUNTERCLAIM.—The 
failure or inability to assert a counterclaim in a proceeding 
before the Copyright Claims Board shall not preclude the 
assertion of that counterclaim in a subsequent court action 
or proceeding before the Copyright Claims Board. 
‘‘(f) OPT-OUT OR DISMISSAL OF PARTY.—If a party 
has timely opted out of a proceeding under section 1506(i) 
or is dismissed from a proceeding before the Copyright 
Claims Board issues a final determination in the pro-
ceeding, the determination shall not be binding upon and 
shall have no preclusive effect with respect to that party. 
‘‘§ 1508. Review and confirmation by district court 
‘‘(a) IN GENERAL.—In any proceeding in which a 
party has failed to pay damages, or has failed otherwise 
to comply with the relief, awarded in a final determination 
of the Copyright Claims Board, including a default deter-
mination or a determination based on a failure to pros-
ecute, the aggrieved party may, not later than 1 year after 
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Copyright Claims Board that resulted in the deter-
mination, in accordance with the procedures applica-
ble to service of a motion in the district court of the 
United States where the application is made. 
‘‘(2) CONTENTS OF APPLICATION.—The appli-
cation shall include the following: 
‘‘(A) A certified copy of the final or 
amended final determination of the Copyright 
Claims Board, as reflected in the records of the 
Copyright Claims Board, following any process 
of reconsideration or review by the Register of 
Copyrights, to be confirmed and rendered to 
judgment. 
‘‘(B) A declaration by the applicant, under 
penalty of perjury— 
‘‘(i) that the copy is a true and cor-
rect copy of such determination; 
‘‘(ii) stating the date it was issued; 
‘‘(iii) stating the basis for the chal-
lenge under subsection (c)(1); and 
‘‘(iv) stating whether the applicant is 
aware of any other proceedings before the 
court concerning the same determination 
of the Copyright Claims Board. 
‘‘(c) CHALLENGES TO THE DETERMINATION.— 
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‘‘(1) BASES FOR CHALLENGE.—Not later than 
90 days after the date on which Copyright Claims 
Board issues a final or amended final determination 
in a proceeding, or not later than 90 days after the 
date on which the Register of Copyrights completes 
any process of reconsideration or review of the deter-
mination, whichever occurs later, a party may seek 
a court order vacating, modifying, or correcting the 
determination of the Copyright Claims Board in the 
following cases: 
‘‘(A) If the determination was issued as a 
result of fraud, corruption, misrepresentation, 
or other misconduct. 
‘‘(B) If the Copyright Claims Board ex-
ceeded its authority or failed to render a final 
determination concerning the subject matter at 
issue. 
‘‘(C) In the case of a default determination 
or determination based on a failure to pros-
ecute, if it is established that the default or fail-
ure was due to excusable neglect. 
‘‘(2) PROCEDURE TO CHALLENGE.— 
‘‘(A) NOTICE OF APPLICATION.—Notice of 
the application to challenge a determination of 
the Copyright Claims Board shall be provided 
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to all parties to the proceeding before the Copy-
right Claims Board, in accordance with the pro-
cedures applicable to service of a motion in the 
court where the application is made. 
‘‘(B) STAYING
OF
PROCEEDINGS.—For 
purposes of an application under this sub-
section, any judge who is authorized to issue an 
order to stay the proceedings in an any other 
action brought in the same court may issue an 
order, to be served with the notice of applica-
tion, staying proceedings to enforce the award 
while the challenge is pending. 
‘‘§ 1509. Relationship to other district court actions 
‘‘(a) STAY OF DISTRICT COURT PROCEEDINGS.— 
Subject to section 1507(b), a district court of the United 
States shall issue a stay of proceedings or such other relief 
as the court determines appropriate with respect to any 
claim brought before the court that is already the subject 
of a pending or active proceeding before the Copyright 
Claims Board. 
‘‘(b) ALTERNATIVE DISPUTE RESOLUTION PROC-
ESS.—A proceeding before the Copyright Claims Board 
under this chapter shall qualify as an alternative dispute 
resolution process under section 651 of title 28 for pur-
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poses of referral of eligible cases by district courts of the 
United States upon the consent of the parties. 
‘‘§ 1510. Implementation by Copyright Office 
‘‘(a) REGULATIONS.— 
‘‘(1) IMPLEMENTATION GENERALLY.—The Reg-
ister of Copyrights shall establish regulations to 
carry out this chapter. Such regulations shall include 
the fees prescribed under subsections (e) and (x) of 
section 1506. The authority to issue such fees shall 
not limit the authority of the Register of Copyrights 
to establish fees for services under section 708. All 
fees received by the Copyright Office in connection 
with the activities under this chapter shall be depos-
ited by the Register of Copyrights and credited to 
the appropriations for necessary expenses of the Of-
fice in accordance with section 708(d). In estab-
lishing regulations under this subsection, the Reg-
ister of Copyrights shall provide for the efficient ad-
ministration of the Copyright Claims Board, and for 
the ability of the Copyright Claims Board to timely 
complete proceedings instituted under this chapter, 
including by implementing mechanisms to prevent 
harassing or improper use of the Copyright Claims 
Board by any party. 
‘‘(2) LIMITS ON MONETARY RELIEF.— 
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‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), not earlier than 3 years after the 
date on which Copyright Claims Board issues 
the first determination of the Copyright Claims 
Board, the Register of Copyrights may, in order 
to further the goals of the Copyright Claims 
Board, conduct a rulemaking to adjust the lim-
its on monetary recovery or attorneys’ fees and 
costs that may be awarded under this chapter. 
‘‘(B) 
EFFECTIVE
DATE
OF
ADJUST-
MENT.—Any rule under subparagraph (A) that 
makes an adjustment shall take effect at the 
end of the 120-day period beginning on the 
date on which the Register of Copyrights sub-
mits the rule to Congress and only if Congress 
does not, during that 120-day period, enact a 
law that provides in substance that Congress 
does not approve the rule. 
‘‘(b) NECESSARY FACILITIES.—Subject to applicable 
law, the Register of Copyrights may retain outside vendors 
to establish internet-based, teleconferencing, and other fa-
cilities required to operate the Copyright Claims Board. 
‘‘(c) FEES.—Any filing fees, including the fee to com-
mence a proceeding under section 1506(e), shall be pre-
scribed in regulations established by the Register of Copy-
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rights. The sum total of such filing fees shall be in an 
amount of at least $100, may not exceed the cost of filing 
an action in a district court of the United States, and shall 
be fixed in amounts that further the goals of the Copyright 
Claims Board. 
‘‘§ 1511. Funding 
‘‘There are authorized to be appropriated such sums 
as may be necessary to pay the costs incurred by the Copy-
right Office under this chapter that are not covered by 
fees collected for services rendered under this chapter, in-
cluding the costs of establishing and maintaining the 
Copyright Claims Board and its facilities.’’. 
(b) CLERICAL AMENDMENT.—The table of chapters 
for title 17, United States Code, is amended by adding 
after the item relating to chapter 14 the following: 
‘‘15. Copyright Small Claims ........................................................ 1501’’. 
SEC. 3. IMPLEMENTATION. 
Not later 1 year after the date of enactment of this 
Act, the Copyright Claims Board established under section 
1502 of title 17, United States Code, as added by section 
2 of this Act, shall begin operations. 
SEC. 4. STUDY. 
Not later than 3 years after the date on which Copy-
right Claims Board issues the first determination of the 
Copyright Claims Board under chapter 15 of title 17, 
United States Code, as added by section 2 of this Act, 
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the Register of Copyrights shall conduct, and report to 
Congress on, a study that addresses the following: 
(1) The use and efficacy of the Copyright 
Claims Board in resolving copyright claims, includ-
ing the number of proceedings the Copyright Claims 
Board could reasonably administer. 
(2) Whether adjustments to the authority of the 
Copyright Claims Board are necessary or advisable, 
including with respect to— 
(A) eligible claims, such as claims under 
section 1202 of title 17, United States Code; 
and 
(B) works and applicable damages limita-
tions. 
(3) Whether greater allowance should be made 
to permit awards of attorneys’ fees and costs to pre-
vailing parties, including potential limitations on 
such awards. 
(4) Potential mechanisms to assist copyright 
owners with small claims in ascertaining the identity 
and location of unknown online infringers. 
(5) Whether the Copyright Claims Board 
should be expanded to offer mediation or other non-
binding alternative dispute resolution services to in-
terested parties. 
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(6) Such other matters as the Register of Copy-
rights believes may be pertinent concerning the 
Copyright Claims Board. 
SEC. 5. SEVERABILITY. 
If any provision of this Act, an amendment made by 
this Act, or the application of such provision or amend-
ment to any person or circumstance is held to be unconsti-
tutional, the remainder of this Act and the amendments 
made by this Act, and the application of the provision or 
the amendment to any other person or circumstance, shall 
not be affected. 
Passed the House of Representatives October 22, 
2019. 
Attest: 
CHERYL L. JOHNSON, 
Clerk. 
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Calendar No. 266 
116TH CONGRESS 
1ST SESSION 
H. R. 2426 
AN ACT 
To amend title 17, United States Code, to establish 
an alternative dispute resolution program for 
copyright small claims, and for other purposes. 
OCTOBER 23, 2019 
Received; read twice and placed on the calendar 
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