IB
Union Calendar No. 158
103D CONGRESS
1ST SESSION
H. R. 2840
[Report No. 103–286]
To amend title 17, United States Code, to establish copyright arbitration
royalty panels to replace the Copyright Royalty Tribunal, and for other
purposes.
IN THE HOUSE OF REPRESENTATIVES
AUGUST 3, 1993
Mr. HUGHES (for himself and Mr. FRANK of Massachusetts) introduced the
following bill; which was referred to the Committee on the Judiciary
OCTOBER 12, 1993
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed in italic]
[For text of introduced bill, see copy of bill as introduced on August 3, 1993]
A BILL
To amend title 17, United States Code, to establish copyright
arbitration royalty panels to replace the Copyright Roy-
alty Tribunal, 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
Tribunal Reform Act of 1993’’.
SEC. 2. COPYRIGHT ARBITRATION ROYALTY PANELS.
(a) ESTABLISHMENT AND PURPOSE.—Section 801 of
title 17, United States Code, is amended as follows:
(1) The section designation and heading are
amended to read as follows:
‘‘§ 801. Copyright arbitration royalty panels: estab-
lishment and purpose’’.
(2) Subsection (a) is amended to read as follows:
‘‘(a) ESTABLISHMENT.—The Librarian of Congress,
upon the recommendation of the Register of Copyrights, is
authorized to appoint and convene copyright arbitration
royalty panels.’’.
(3) Subsection (b) is amended—
(A) by inserting ‘‘PURPOSES.—’’ after
‘‘(b)’’;
(B) in the matter preceding paragraph (1),
by striking ‘‘Tribunal’’ and inserting ‘‘copyright
arbitration royalty panels’’;
(C) in paragraph (2)—
(i) in subparagraph (A), by striking
‘‘Commission’’ and inserting ‘‘copyright ar-
bitration royalty panels’’; and
(ii) in subparagraph (B), by striking
‘‘Copyright Royalty Tribunal’’ and insert-
ing ‘‘copyright arbitration royalty panels’’;
(D) in paragraph (3), by striking ‘‘In deter-
mining’’ and all that follows through the end of
the paragraph; and
(E) in paragraph (4) by striking ‘‘to deter-
mine’’ and all that follows through ‘‘chapter 10’’
and inserting ‘‘and to determine the distribution
of such payments.’’.
(4) By amending subsection (c) to read as fol-
lows:
‘‘(c) RULINGS.—The Librarian of Congress, upon the
recommendation of the Register of Copyrights, may, before
a copyright arbitration royalty panel is convened, make
any necessary procedural or evidentiary rulings that would
apply to the proceedings conducted by such panel.’’.
(b) MEMBERSHIP AND PROCEEDINGS.—Section 802 of
title 17, United States Code, is amended to read as follows:
‘‘§ 802. Membership and proceedings of copyright arbi-
tration royalty panels
‘‘(a) COMPOSITION OF COPYRIGHT ARBITRATION ROY-
ALTY PANELS.—A copyright arbitration royalty panel shall
consist of 3 arbitrators selected by the Librarian of Congress
pursuant to subsection (b).
‘‘(b) SELECTION OF ARBITRATION PANEL.—Not later
than 10 days after publication of a notice initiating an
arbitration proceeding under section 804, and in accord-
ance with procedures specified by the Register of Copy-
rights, the Librarian of Congress shall, upon the rec-
ommendation of the Register of Copyrights, select 2 arbitra-
tors from lists of arbitrators provided to the Librarian by
parties participating in the arbitration and by professional
arbitration associations or such similar organizations as
the Librarian shall select. The 2 arbitrators so selected shall,
within 10 days after their selection, choose a third arbitra-
tor from the same lists, who shall serve as the chairperson
of the arbitrators. If such 2 arbitrators fail to agree upon
the selection of a third arbitrator, the Librarian of Congress
shall promptly select the third arbitrator.
‘‘(c) ARBITRATION PROCEEDINGS.—Copyright arbitra-
tion royalty panels shall conduct arbitration proceedings,
in accordance with such procedures as they may adopt, for
the purpose of making their determinations in carrying out
the purposes set forth in section 801. The arbitration panels
shall act on the basis of a fully documented written record,
prior decisions of the Copyright Royalty Tribunal, prior
copyright arbitration panel determinations, and rulings by
the Librarian of Congress under section 801(c). Any copy-
right owner who claims to be entitled to royalties under
section 111, 116, or 119, or any interested copyright party
who claims to be entitled to royalties under section 1006,
may submit relevant information and proposals to the arbi-
tration panels in proceedings applicable to such copyright
owner or interested copyright party, and any other person
participating in arbitration proceedings may submit such
relevant information and proposals to the arbitration panel
conducting the proceedings. The parties to the proceedings
shall bear the entire cost thereof in such manner and pro-
portion as the arbitration panels shall direct.
‘‘(d) REPORT TO THE LIBRARIAN OF CONGRESS.—Not
later than 180 days after publication of the notice initiat-
ing an arbitration proceeding, the copyright arbitration
royalty panel conducting the proceeding shall report to the
Librarian of Congress its determination concerning the roy-
alty fee or distribution of royalty fees, as the case may be.
Such report shall be accompanied by the written record,
and shall set forth the facts that the arbitration panel found
relevant to its determination.
‘‘(e) ACTION BY LIBRARIAN OF CONGRESS.—Within 60
days after receiving the report of a copyright arbitration
royalty panel under subsection (d), the Librarian of Con-
gress, upon the recommendation of the Register of Copy-
rights, shall adopt or reject the determination of the arbitra-
tion panel. The Librarian shall adopt the determination of
the arbitration panel unless the Librarian finds that the
determination is arbitrary. If the Librarian rejects the de-
termination of the arbitration panel, the Librarian shall,
before the end of that 60-day period, and after full examina-
tion of the record created in the arbitration proceeding,
issue an order setting the royalty fee or distribution of fees,
as the case may be. The Librarian shall cause to be pub-
lished in the Federal Register the determination of the arbi-
tration panel, and the decision of the Librarian (including
an order issued under the preceding sentence). The Librar-
ian shall also publicize such determination and decision in
such other manner as the Librarian considers appropriate.
The Librarian shall also make the report of the arbitration
panel and the accompanying record available for public in-
spection and copying.
‘‘(f) JUDICIAL REVIEW.—Any decision of the Librar-
ian of Congress under subsection (e) with respect to a deter-
mination of an arbitration panel may be appealed, by any
aggrieved party who would be bound by the determination,
to the United States Court of Appeals for the District of
Columbia Circuit, within 30 days after the publication of
the decision in the Federal Register. If no appeal is brought
within such 30-day period, the decision of the Librarian
is final, and the royalty fee or determination with respect
to the distribution of fees, as the case may be, shall take
effect as set forth in the decision. The pendency of an appeal
under this paragraph shall not relieve persons obligated to
make royalty payments under sections 111, 115, 116, 118,
119, or 1003 who would be affected by the determination
on appeal to deposit the statement of account and royalty
fees specified in those sections. The court shall have jurisdic-
tion to modify or vacate a decision of the Librarian only
if it finds, on the basis of the record before the Librarian,
that the Librarian acted in an arbitrary manner. If the
court modifies the decision of the Librarian, the court shall
have jurisdiction to enter its own determination with re-
spect to the amount or distribution of royalty fees and costs,
to order the repayment of any excess fees, and to order the
payment of any underpaid fees, and the interest pertaining
respectively thereto, in accordance with its final judgment.
The court may further vacate the decision of the arbitration
panel and remand the case for arbitration proceedings in
accordance with subsection (c).
‘‘(g) ADMINISTRATIVE MATTERS.—
‘‘(1) DEDUCTION
OF
COSTS
FROM
ROYALTY
FEES.—The Librarian of Congress and the Register of
Copyrights may, to the extent not otherwise provided
under this title, deduct from royalty fees deposited 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 be-
fore the fees are distributed to any copyright claim-
ants.
‘‘(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, 115, 116, 118, or 119 or chapter 10.’’.
(c) ADJUSTMENT OF COMPULSORY LICENSE RATES.—
Section 803 of title 17, United States Code, and the item
relating to such section in the table of sections at the begin-
ning of chapter 8 of such title, are repealed.
(d) INSTITUTION
AND CONCLUSION
OF PROCEED-
INGS.—Section 804 of title 17, United States Code, is
amended as follows:
(1) Subsection (a) is amended to read as follows:
‘‘(a)(1) With respect to proceedings under section
801(b)(1) concerning the adjustment of royalty rates as pro-
vided in sections 115 and 116, and with respect to proceed-
ings under subparagraphs (A) and (D) of section 801(b)(2),
during the calendar years specified in the schedule set forth
in paragraphs (2), (3), and (4), any owner or user of a
copyrighted work whose royalty rates are specified by this
title, established by the Copyright Royalty Tribunal before
the date of the enactment of the Copyright Royalty Tribunal
Reform Act of 1993, or established by a copyright arbitra-
tion royalty panel after such date of enactment, may file
a petition with the Librarian of Congress declaring that
the petitioner requests an adjustment of the rate. The Li-
brarian of Congress shall, upon the recommendation of the
Register of Copyrights, make a determination as to whether
the petitioner has such a significant interest in the royalty
rate in which an adjustment is requested. If the Librarian
determines that the petitioner has such a significant inter-
est, the Librarian shall cause notice of this determination,
with the reasons therefor, to be published in the Federal
Register, together with the notice of commencement of pro-
ceedings under this chapter.
‘‘(2) In proceedings under section 801(b)(2)(A) and
(D), a petition described in paragraph (1) may be filed dur-
ing 1995 and in each subsequent fifth calendar year.
‘‘(3) In proceedings under section 801(b)(1) concerning
the adjustment of royalty rates as provided in section 115,
a petition described in paragraph (1) may be filed in 1997
and in each subsequent tenth calendar year.
‘‘(4)(A) In proceedings under section 801(b)(1) con-
cerning the adjustment of royalty rates as provided in sec-
tion 116, a petition described in paragraph (1) may be filed
at any time within 1 year after negotiated licenses author-
ized by section 116 are terminated 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 permission to use a quan-
tity of musical works not substantially smaller than the
quantity of such works performed on coin-operated phono-
record players during the 1-year period ending March 1,
1989, the Librarian of Congress shall, upon petition filed
under paragraph (1) within 1 year after such termination
or expiration, convene a copyright arbitration royalty
panel. The arbitration panel shall promptly establish an
interim royalty rate or rates for the public performance by
means of a coin-operated phonorecord player of non-dra-
matic musical works embodied in phonorecords which had
been subject 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 con-
clusion of proceedings by the arbitration panel, in accord-
ance with section 802, to adjust the royalty rates applicable
to such works, or until superseded by a new negotiated li-
cense agreement, as provided in section 116(b).’’.
(2) Subsection (b) is amended—
(A) by striking ‘‘subclause’’ and inserting
‘‘subparagraph’’;
(B) by striking ‘‘Tribunal’’ the first place it
appears and inserting ‘‘Copyright Royalty Tri-
bunal or the Librarian of Congress’’;
(C) by striking ‘‘Tribunal’’ the second and
third places it appears and inserting ‘‘Librar-
ian’’;
(D) by striking ‘‘Tribunal’’ the last place it
appears and inserting ‘‘Copyright Royalty Tri-
bunal or the Librarian of Congress’’; and
(E) by striking ‘‘(a)(2), above’’ and insert-
ing ‘‘subsection (a) of this section’’.
(3) Subsection (c) is amended by striking ‘‘Tri-
bunal’’ and inserting ‘‘Librarian of Congress’’.
(4) Subsection (d) is amended—
(A) by striking ‘‘Chairman of the Tribunal’’
and inserting ‘‘Librarian of Congress’’; and
(B) by striking ‘‘determination by the Tri-
bunal’’ and inserting ‘‘a determination’’.
(5) Section 804 is further amended by striking
subsection (e).
(e) REPEAL.—Sections 805 through 810 of title 17,
United States Code, and the items relating to such sections
in the table of sections at the beginning of chapter 8 of such
title, are repealed.
(f) CLERICAL AMENDMENT.—The table of sections at
the beginning of chapter 8 of title 17, United States Code,
is amended by striking the items relating to sections 801
and 802 and inserting the following:
‘‘801. Copyright arbitration royalty panels: establishment and purpose.
‘‘802. Membership and proceedings of copyright arbitration royalty panels.’’.
SEC. 3. JUKEBOX LICENSES.
(a) REPEAL OF COMPULSORY LICENSE.—Section 116
of title 17, United States Code, and the item relating to
section 116 in the table of sections at the beginning of chap-
ter 1 of such title, are repealed.
(b) NEGOTIATED LICENSES.—(1) Section 116A of title
17, United States Code, is amended—
(A) by redesignating such section as section 116;
(B) by striking subsection (b) and redesignating
subsections (c) and (d) as subsections (b) and (c), re-
spectively;
(C) in subsection (b)(2) (as so redesignated) by
striking ‘‘Copyright Royalty Tribunal’’ each place it
appears and inserting ‘‘Librarian of Congress’’;
(D) in subsection (c) (as so redesignated)—
(i) in the subsection caption by striking
‘‘ROYALTY TRIBUNAL’’ and inserting ‘‘ARBITRA-
TION ROYALTY PANEL’’;
(ii) by striking ‘‘subsection (c)’’ and insert-
ing ‘‘subsection (b)’’; and
(iii) by striking ‘‘the Copyright Royalty
Tribunal’’ and inserting ‘‘a copyright arbitra-
tion royalty panel’’; and
(E) by striking subsections (e), (f), and (g).
(2) The table of sections at the beginning of chapter
1 of title 17, United States Code, is amended by striking
‘‘116A’’ and inserting ‘‘116’’.
SEC. 4. PUBLIC BROADCASTING COMPULSORY LICENSE.
Section 118 of title 17, United States Code, is amend-
ed—
(1) in subsection (b)—
(A) by striking the first 2 sentences;
(B) in the third sentence by striking ‘‘works
specified by this subsection’’ and inserting ‘‘pub-
lished nondramatic musical works and published
pictorial, graphic, and sculptural works’’;
(C) in paragraph (1)—
(i) in the first sentence by striking ‘‘,
within one hundred and twenty days after
publication of the notice specified in this
subsection,’’; and
(ii) by striking ‘‘Copyright Royalty
Tribunal’’ each place it appears and insert-
ing ‘‘Librarian of Congress’’;
(D) in paragraph (2) by striking ‘‘Tribu-
nal’’ and inserting ‘‘Librarian of Congress’’;
(E) in paragraph (3)—
(i) by striking the first sentence and
inserting the following: ‘‘In the absence of
license agreements negotiated under para-
graph (2), the Librarian of Congress shall,
pursuant to chapter 8, convene a copyright
arbitration royalty panel 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 copy-
right in works specified by this subsection
and public broadcasting entities, regardless
of whether such copyright owners have sub-
mitted proposals to the Librarian of Con-
gress.’’;
(ii) in the second sentence—
(I) by striking ‘‘Copyright Roy-
alty Tribunal’’ and inserting ‘‘copy-
right arbitration royalty panel’’; and
(II) by striking ‘‘clause (2) of this
subsection’’ and inserting ‘‘paragraph
(2)’’; and
(iii) in the last sentence by striking
‘‘Copyright Royalty Tribunal’’ and insert-
ing ‘‘Librarian of Congress’’; and
(F) by striking paragraph (4);
(2) in subsection (c)—
(A) by striking ‘‘1982’’ and inserting
‘‘1997’’; and
(B) by striking ‘‘Copyright Royalty Tribu-
nal’’ and inserting ‘‘Librarian of Congress’’;
(3) in subsection (d)—
(A) by striking ‘‘to the transitional provi-
sions of subsection (b)(4), and’’;
(B) by striking ‘‘the Copyright Royalty Tri-
bunal’’ and inserting ‘‘a copyright arbitration
royalty panel’’; and
(C) in paragraphs (2) and (3) by striking
‘‘clause’’ each place it appears and inserting
‘‘paragraph’’; and
(4) in subsection (g) by striking ‘‘clause’’ and in-
serting ‘‘paragraph’’.
SEC. 5. SECONDARY TRANSMISSIONS BY SUPERSTATIONS
AND NETWORK STATIONS FOR PRIVATE VIEW-
ING.
Section 119 of title 17, United States Code, is amend-
ed—
(1) in subsection (b)—
(A) in paragraph (1) by striking ‘‘, after
consultation with the Copyright Royalty Tribu-
nal,’’ each place it appears;
(B) in paragraph (2) by striking ‘‘Copy-
right Royalty Tribunal’’ and inserting ‘‘Librar-
ian of Congress’’;
(C) in paragraph (3) by striking ‘‘Copy-
right Royalty Tribunal’’ and inserting ‘‘Librar-
ian of Congress’’; and
(D) in paragraph (4)—
(i) by striking ‘‘Copyright Royalty
Tribunal’’ each place it appears and insert-
ing ‘‘Librarian of Congress’’;
(ii) by striking ‘‘Tribunal’’ each place
it appears and inserting ‘‘Librarian of Con-
gress’’; and
(iii) in subparagraph (B) by striking
‘‘conduct a proceeding’’ in the last sentence
and inserting ‘‘convene a copyright arbitra-
tion royalty panel’’; and
(2) in subsection (c)—
(A) in the subsection caption by striking
‘‘DETERMINATION’’ 
and 
inserting 
‘‘ADJUST-
MENT’’;
(B) in paragraph (2) by striking ‘‘Copy-
right Royalty Tribunal’’ each place it appears
and inserting ‘‘Librarian of Congress’’;
(C) in paragraph (3)—
(i) in subparagraph (A)—
(I) by striking ‘‘Copyright Roy-
alty Tribunal’’ and inserting ‘‘Librar-
ian of Congress’’; and
(II) by striking the last sentence
and inserting the following: ‘‘Such ar-
bitration proceeding shall be conducted
under chapter 8.’’;
(ii) by striking subparagraphs (B) and
(C);
(iii) in subparagraph (D)—
(I) by redesignating such sub-
paragraph as subparagraph (B); and
(II) 
by 
striking 
‘‘Arbitration
Panel’’ and inserting ‘‘copyright arbi-
tration royalty panel appointed under
chapter 8’’;
(iv) by striking subparagraphs (E) and
(F);
(v) by amending subparagraph (G) to
read as follows:
‘‘(C) PERIOD DURING WHICH DECISION OF
ARBITRATION PANEL OR ORDER OF LIBRARIAN
EFFECTIVE.—The obligation to pay the royalty
fee established under a determination which—
‘‘(i) is made by a copyright arbitration
royalty panel in an arbitration proceeding
under this paragraph and is adopted by the
Librarian of Congress under section 802(e),
or
‘‘(ii) is established by the Librarian of
Congress under section 802(e),
shall become effective as provided in section
802(f).’’; and
(vi) in subparagraph (H)—
(I) by redesignating such sub-
paragraph as subparagraph (D); and
(II) by striking ‘‘adopted or or-
dered under subparagraph (F)’’ and
inserting ‘‘referred to in subparagraph
(C)’’; and
(D) by striking paragraph (4).
SEC. 6. CONFORMING AMENDMENTS.
(a) CABLE COMPULSORY LICENSE.—Section 111(d) of
title 17, United States Code, is amended as follows:
(1) Paragraph (1) is amended by striking ‘‘,
after consultation with the Copyright Royalty Tribu-
nal (if and when the Tribunal has been constituted),’’.
(2) Paragraph (1)(A) is amended by striking ‘‘,
after consultation with the Copyright Royalty Tribu-
nal (if and when the Tribunal has been constituted),
from time to time prescribe’’ and inserting ‘‘from
time to time prescribe’’.
(3) Paragraph (2) is amended by striking the
second and third sentences and by inserting the fol-
lowing: ‘‘All funds held by the Secretary of the Treas-
ury shall be invested in interest-bearing United States
securities for later distribution with interest by the
Librarian of Congress in the event no controversy
over distribution exists, or by a copyright arbitration
royalty panel in the event a controversy over such
distribution exists.’’.
(4) Paragraph (4)(A) is amended—
(A) by striking ‘‘Copyright Royalty Tribu-
nal’’ and inserting ‘‘Librarian of Congress’’; and
(B) by striking ‘‘Tribunal’’ and inserting
‘‘Librarian of Congress’’.
(5) Paragraph (4)(B) is amended to read as fol-
lows:
‘‘(B) After the first day of August of each
year, the Librarian of Congress shall, upon the
recommendation of the Register of Copyrights,
determine whether there exists a controversy con-
cerning the distribution of royalty fees. If the Li-
brarian determines that no such controversy ex-
ists, the Librarian shall, after deducting reason-
able administrative costs under this section, dis-
tribute such fees to the copyright owners entitled
to such fees, or to their designated agents. If the
Librarian finds the existence of a controversy,
the Librarian shall, pursuant to chapter 8 of this
title, convene a copyright arbitration royalty
panel to determine the distribution of royalty
fees.’’.
(6) Paragraph (4)(C) is amended by striking
‘‘Copyright Royalty Tribunal’’ and inserting ‘‘Li-
brarian of Congress’’.
(b) AUDIO HOME RECORDING ACT.—
(1) ROYALTY PAYMENTS.—Section 1004(a)(3) of
title 17, United States Code, is amended—
(A) by striking ‘‘Copyright Royalty Tribu-
nal’’ and inserting ‘‘Librarian of Congress’’; and
(B) by striking ‘‘Tribunal’’ and inserting
‘‘Librarian of Congress’’.
(2) DEPOSIT OF ROYALTY PAYMENTS.—Section
1005 of title 17, United States Code, is amended by
striking the last sentence.
(3) ENTITLEMENT TO ROYALTY PAYMENTS.—Sec-
tion 1006(c) of title 17, United States Code, is
amended by striking ‘‘Copyright Royalty Tribunal’’
and inserting ‘‘Librarian of Congress shall convene a
copyright arbitration royalty panel which’’.
(4) PROCEDURES
FOR
DISTRIBUTING
ROYALTY
PAYMENTS.—Section 1007 of title 17, United States
Code, is amended—
(A) in subsection (a)(1)—
(i) by striking ‘‘Copyright Royalty
Tribunal’’ and inserting ‘‘Librarian of Con-
gress’’; and
(ii) by striking ‘‘Tribunal’’ and insert-
ing ‘‘Librarian of Congress’’;
(B) in subsection (b)—
(i) by striking ‘‘Copyright Royalty
Tribunal’’ and inserting ‘‘Librarian of Con-
gress’’; and
(ii) by striking ‘‘Tribunal’’ each place
it appears and inserting ‘‘Librarian of Con-
gress’’; and
(C) in subsection (c)—