I
107TH CONGRESS
2D SESSION
H. R. 5285
To amend title 17, United States Code, with respect to royalty fees for
webcasting, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JULY 26, 2002
Mr. INSLEE (for himself, Mr. NETHERCUTT, Mr. BOUCHER, Mr. MANZULLO,
Mr. MORAN of Virginia, Mrs. MINK of Hawaii, Mr. LARSEN of Wash-
ington, Mr. KUCINICH, Mr. KLECZKA, Mr. LEACH, Ms. LOFGREN, Ms.
BROWN of Florida, Mr. DICKS, and Mr. SMITH of Washington) intro-
duced the following bill; which was referred to the Committee on the Ju-
diciary
A BILL
To amend title 17, United States Code, with respect to
royalty fees for webcasting, 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 ‘‘Internet Radio Fair-
ness Act’’.
SEC. 2. APPLICABILITY OF ROYALTY RATES TO SMALL
BUSINESS CONCERNS.
(a) INAPPLICABILITY OF DETERMINATION OF JULY
8, 2002.—The determination by the Librarian of Congress
of rates and terms for the digital performance of sound
recordings and ephemeral recordings of July 8, 2002, pur-
suant to section 112(e) and section 114(f)(2)(B) of title
17, United States Code, shall not apply to transmissions
and ephemeral recordings by small entities.
(b) FUTURE PROCEEDINGS.—The first determination
of terms and rates of royalty payments that is made pur-
suant to section 114(f)(2)(B) of title 17, United States
Code, after the enactment of this Act shall apply to trans-
missions (to which such section applies) that are made by
small business concerns during the period beginning on
the date of the enactment of the Digital Millennium Copy-
right Act and ending on the date provided for in that de-
termination.
(c) VOLUNTARY NEGOTIATIONS.—Nothing in this
section shall affect the participation of small entities in
voluntary 
negotiation 
proceedings 
under 
section
114(f)(2)(A) and (C)(i) of title 17, United States Code.
SEC. 3. STANDARD FOR DETERMINING RATES.
Section 114(f)(2)(B) of title 17, United States Code,
is amended—
fore the period ‘‘and to the provisions of chapter 6 of title
5’’.
SEC. 5. ELIMINATION OF CERTAIN STATUTORY LICENSES
FOR EPHEMERAL RECORDINGS.
(a) ELIMINATION OF STATUTORY LICENSE.—Section
112(a) of title 17, United States Code, is amended by add-
ing at the end the following:
‘‘(3) Notwithstanding the provisions of section 106
and paragraph (1) of this subsection, and except in the
case of a motion picture or other audiovisual work, it is
not an infringement of copyright for a transmitting orga-
nization entitled to transmit to the public a performance
or display of a work, under a license, including a statutory
license under section 114(f), or transfer of the copyright
or for a transmitting organization that is a broadcast
radio station licensed as such by the Federal Communica-
tions Commission and that makes a broadcast trans-
mission of a sound recording in a digital format on a non-
subscription basis, to make one or more copies or
phonorecords of that work, if—
‘‘(A) each copy or phonorecord is retained and
used solely by the transmitting organization that
made it; and
‘‘(B) each copy or phonorecord is used solely
for the purpose of making the transmitting organi-
zation’s own transmissions or for purposes of archi-
val preservation or security.’’.
(b) CONFORMING AMENDMENTS.—Section 112(e) of
title 17, United States Code, is amended—
(1) by striking in paragraph (1) ‘‘or under a
statutory license in accordance with section 114(f)’’;
and
(2) by striking in paragraph (1)(B) ‘‘a statu-
tory license in accordance with section 114(f) or’’.
(c) EFFECTIVE DATE.—The amendments made by
subsection (a) take effect on January 1, 2003.
SEC. 6. DEFINITION.
In this Act, the term ‘‘small entity’’ means a small
business, small organization, or small governmental juris-
diction, as those terms are defined in section 601 of title
5, United States Code.
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