IIA
105TH CONGRESS
1ST SESSION H. R. 672
IN THE SENATE OF THE UNITED STATES
MARCH 19, 1997
Received; read twice and referred to the Committee on the Judiciary
AN ACT
To make technical amendments to certain provisions of title
17, United States Code.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
‘‘‘(i) the competitive environment in
which such programming is distributed,
the cost of similar signals in similar pri-
vate and compulsory license marketplaces,
and any special features and conditions of
the retransmission marketplace;
‘‘‘(ii) the economic impact of such
fees on copyright owners and satellite car-
riers; and
‘‘‘(iii) the impact on the continued
availability of secondary transmissions to
the public.’; and
‘‘(iii) in subparagraph (C), by insert-
ing ‘or July 1, 1997, whichever is later’
after ‘section 802(g)’.’’.
(3) Section 2(5)(A) is amended to read as fol-
lows:
‘‘(A) in paragraph (5)(C) by striking ‘the
date of the enactment of the Satellite Home
Viewer Act of 1988’ and inserting ‘November
16, 1988’; and’’.
SEC. 2. COPYRIGHT IN RESTORED WORKS.
Section 104A of title 17, United States Code, is
amended as follows:
(1) Subsection (d)(3)(A) is amended to read as
follows:
‘‘(3) EXISTING
DERIVATIVE
WORKS.—(A) In
the case of a derivative work that is based upon a
restored work and is created—
‘‘(i) before the date of the enactment of
the Uruguay Round Agreements Act, if the
source country of the restored work is an eligi-
ble country on such date, or
‘‘(ii) before the date on which the source
country of the restored work becomes an eligi-
ble country, if that country is not an eligible
country on such date of enactment,
a reliance party may continue to exploit that deriva-
tive work for the duration of the restored copyright
if the reliance party pays to the owner of the re-
stored copyright reasonable compensation for con-
duct which would be subject to a remedy for in-
fringement but for the provisions of this para-
graph.’’.
(2) Subsection (e)(1)(B)(ii) is amended by
striking the last sentence.
(3) Subsection (h)(2) is amended to read as fol-
lows:
‘‘(2) The ‘date of restoration’ of a restored
copyright is—
‘‘(A) January 1, 1996, if the source coun-
try of the restored work is a nation adhering to
the Berne Convention or a WTO member coun-
try on such date, or
‘‘(B) the date of adherence or proclama-
tion, in the case of any other source country of
the restored work.’’.
(4) Subsection (h)(3) is amended to read as fol-
lows:
‘‘(3) The term ‘eligible country’ means a nation,
other than the United States, that—
‘‘(A) becomes a WTO member country
after the date of the enactment of the Uruguay
Round Agreements Act;
‘‘(B) on such date of enactment is, or after
such date of enactment becomes, a member of
the Berne Convention; or
‘‘(C) after such date of enactment becomes
subject to a proclamation under subsection (g).
For purposes of this section, a nation that is a mem-
ber of the Berne Convention on the date of the en-
actment of the Uruguay Round Agreements Act
shall be construed to become an eligible country on
such date of enactment.’’.
SEC. 3. LICENSES FOR NONEXEMPT SUBSCRIPTION TRANS-
MISSIONS.
Section 114(f) of title 17, United States Code, is
amended—
(1) in paragraph (1), by inserting ‘‘, or, if a
copyright arbitration royalty panel is convened, end-
ing 30 days after the Librarian issues and publishes
in the Federal Register an order adopting the deter-
mination of the copyright arbitration royalty panel
or an order setting the terms and rates (if the Li-
brarian rejects the panel’s determination)’’ after
‘‘December 31, 2000’’; and
(2) in paragraph (2), by striking ‘‘and publish
in the Federal Register’’.
SEC. 4. ROYALTY PAYABLE UNDER COMPULSORY LICENSE.
Section 115(c)(3)(D) of title 17, United States Code,
is amended by striking ‘‘and publish in the Federal Reg-
ister’’.
SEC. 5. NEGOTIATED LICENSE FOR JUKEBOXES.
Section 116 of title 17, United States Code, is
amended—
(1) by amending subsection (b)(2) to read as
follows:
‘‘(2) ARBITRATION.—Parties not subject to
such a negotiation may determine, by arbitration in
accordance with the provisions of chapter 8, the
terms and rates and the division of fees described in
paragraph (1).’’; and
(2) by adding at the end the following new sub-
section:
‘‘(d) DEFINITIONS.—As used in this section, the fol-
lowing terms mean the following:
‘‘(1) A ‘coin-operated phonorecord player’ is a
machine or device that—
‘‘(A) is employed solely for the perform-
ance of nondramatic musical works by means of
phonorecords upon being activated by the inser-
tion of coins, currency, tokens, or other mone-
tary units or their equivalent;
‘‘(B) is located in an establishment making
no direct or indirect charge for admission;
‘‘(C) is accompanied by a list which is
comprised of the titles of all the musical works
available for performance on it, and is affixed
to the phonorecord player or posted in the es-
tablishment in a prominent position where it
can be readily examined by the public; and
‘‘(D) affords a choice of works available
for performance and permits the choice to be
made by the patrons of the establishment in
which it is located.
‘‘(2) An ‘operator’ is any person who, alone or
jointly with others—
‘‘(A) owns a coin-operated phonorecord
player;
‘‘(B) has the power to make a coin-oper-
ated phonorecord player available for placement
in an establishment for purposes of public per-
formance; or
‘‘(C) has the power to exercise primary
control over the selection of the musical works
made available for public performance on a
coin-operated phonorecord player.’’.
SEC. 6. REGISTRATION AND INFRINGEMENT ACTIONS.
Section 411(b)(1) of title 17, United States Code, is
amended to read as follows:
‘‘(1) serves notice upon the infringer, not less
than 48 hours before such fixation, identifying the
work and the specific time and source of its first
transmission, and declaring an intention to secure
copyright in the work; and’’.
SEC. 7. COPYRIGHT OFFICE FEES.
(a) FEE INCREASES.—Section 708(b) of title 17,
United States Code, is amended to read as follows:
‘‘(b) In calendar year 1997 and in any subsequent
calendar year, the Register of Copyrights, by regulation,
may increase the fees specified in subsection (a) in the
following manner:
‘‘(1) The Register shall conduct a study of the
costs incurred by the Copyright Office for the reg-
istration of claims, the recordation of documents,
and the provision of services. The study shall also
consider the timing of any increase in fees and the
authority to use such fees consistent with the budg-
et.
‘‘(2) The Register may, on the basis of the
study under paragraph (1), and subject to para-
graph (5), increase fees to not more than that nec-
essary to cover the reasonable costs incurred by the
Copyright Office for the services described in para-
graph (1), plus a reasonable inflation adjustment to
account for any estimated increase in costs.
‘‘(3) Any fee established under paragraph (2)
shall be rounded off to the nearest dollar, or for a
fee less than $12, rounded off to the nearest 50
cents.
‘‘(4) Fees established under this subsection
shall be fair and equitable and give due consider-
ation to the objectives of the copyright system.
‘‘(5) If the Register determines under para-
graph (2) that fees should be increased, the Register
shall prepare a proposed fee schedule and submit the
schedule with the accompanying economic analysis to
the Congress. The fees proposed by the Register
may be instituted after the end of 120 days after the
schedule is submitted to the Congress unless, within
that 120-day period, a law is enacted stating in sub-
stance that the Congress does not approve the
schedule.’’.
(b) DEPOSIT OF FEES.—Section 708(d) of such title
is amended to read as follows:
‘‘(d)(1) Except as provided in paragraph (2), all fees
received under this section shall be deposited by the Reg-
ister of Copyrights in the Treasury of the United States
and shall be credited to the appropriations for necessary
expenses of the Copyright Office. Such fees that are col-
lected shall remain available until expended. The Register
may, in accordance with regulations that he or she shall
prescribe, refund any sum paid by mistake or in excess
of the fee required by this section.
‘‘(2) In the case of fees deposited against future serv-
ices, the Register of Copyrights shall request the Secretary
of the Treasury to invest in interest-bearing securities in
the United States Treasury any portion of the fees that,
as determined by the Register, is not required to meet cur-
rent deposit account demands. Funds from such portion
of fees shall be invested in securities that permit funds
to be available to the Copyright Office at all times if they
are determined to be necessary to meet current deposit
account demands. Such investments shall be in public debt
securities with maturities suitable to the needs of the
Copyright Office, as determined by the Register of Copy-
rights, and bearing interest at rates determined by the
Secretary of the Treasury, taking into consideration cur-
rent market yields on outstanding marketable obligations
of the United States of comparable maturities.
‘‘(3) The income on such investments shall be depos-
ited in the Treasury of the United States and shall be
credited to the appropriations for necessary expenses of
the Copyright Office.’’.
SEC. 8. COPYRIGHT ARBITRATION ROYALTY PANELS.
(a) ESTABLISHMENT AND PURPOSE.—Section 801 of
title 17, United States Code, is amended—
(1) in subsection (b)(1) by striking ‘‘and 116’’
in the first sentence and inserting ‘‘116, and 119’’;
(2) in subsection (c) by inserting after ‘‘panel’’
at the end of the sentence the following:
‘‘, including—
‘‘(1) authorizing the distribution of those roy-
alty fees collected under sections 111, 119, and
1005 that the Librarian has found are not subject
to controversy; and
‘‘(2) accepting or rejecting royalty claims filed
under sections 111, 119, and 1007 on the basis of
timeliness or the failure to establish the basis for a
claim’’; and
(3) by amending subsection (d) to read as fol-
lows:
‘‘(d) SUPPORT AND REIMBURSEMENT OF ARBITRA-
TION PANELS.—The Librarian of Congress, upon the rec-
ommendation of the Register of Copyrights, shall provide
the copyright arbitration royalty panels with the necessary
administrative services related to proceedings under this
chapter, and shall reimburse the arbitrators presiding in
distribution proceedings at such intervals and in such
manner as the Librarian shall provide by regulation. Each
such arbitrator is an independent contractor acting on be-
half of the United States, and shall be hired pursuant to
a signed agreement between the Library of Congress and
the arbitrator. Payments to the arbitrators shall be consid-
ered reasonable costs incurred by the Library of Congress
and the Copyright Office for purposes of section
802(h)(1).’’.
(b) PROCEEDINGS.—Section 802(h) of title 17, Unit-
ed States Code, is amended by amending paragraph (1)
to read as follows:
‘‘(1) DEDUCTION
OF
COSTS
OF
LIBRARY
OF
CONGRESS AND COPYRIGHT OFFICE FROM ROYALTY
FEES.—The Librarian of Congress and the Register
of Copyrights may, to the extent not otherwise pro-
vided under this title, deduct from royalty fees de-
posited or collected under this title the reasonable
costs incurred by the Library of Congress and the
Copyright Office under this chapter. Such deduction
may be made before the fees are distributed to any
copyright claimants. In addition, all funds made
available by an appropriations Act as offsetting col-
lections and available for deductions under this sub-
section shall remain available until expended. In
ratemaking proceedings, the reasonable costs of the
Librarian of Congress and the Copyright Office shall
be borne by the parties to the proceedings as di-
rected by the arbitration panels under subsection
(c).’’.