‘‘(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
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
(C) in paragraph (3)—
(i) in the second sentence—
(I) by striking ‘‘copyright arbi-
tration royalty panel’’ and inserting
‘‘Copyright Royalty Judges’’; and
(II) by striking ‘‘paragraph (2).’’
and inserting ‘‘paragraph (2) or (3).’’;
(ii) in the last sentence, by striking
‘‘‘Librarian of Congress’’ and inserting
‘‘Copyright Royalty Judges’’; and
(iii) by striking ‘‘(3) In’’ and all that
follows through the end of the first sen-
tence and inserting the following:
‘‘(3) Voluntary negotiation proceedings initiated
pursuant to a petition filed under section 804(a) for
the purpose of determining a schedule of terms and
rates of royalty payments by public broadcasting en-
tities to copyright owners in works specified by this
subsection and the proportionate division of fees
paid among various copyright owners shall cover the
5-year period beginning on January 1 of the second
year following the year in which the petition is filed.
The parties to each negotiation proceeding shall bear
their own costs.
‘‘(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.
Passed the House of Representatives March 3,
2004.
Attest:
Clerk.