I 
110TH CONGRESS 
1ST SESSION H. R. 2060 
To nullify the March 2, 2007, determination of the Copyright Royalty Judges 
with respect to webcasting, to modify the basis for making such a 
determination, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 26, 2007 
Mr. INSLEE introduced the following bill; which was referred to the Committee 
on the Judiciary, and in addition to the Committee on Energy and Com-
merce, for a period to be subsequently determined by the Speaker, in 
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned 
A BILL 
To nullify the March 2, 2007, determination of the Copyright 
Royalty Judges with respect to webcasting, to modify 
the basis for making such a determination, 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 Equal-
ity Act’’. 
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SEC. 2. NULLIFICATION OF DECISION OF COPYRIGHT ROY-
ALTY JUDGES. 
The March 2, 2007, Determination of Rates and 
Terms of the United States Copyright Royalty Judges re-
garding rates and terms for the digital performance of 
sound recordings and ephemeral recordings, including that 
determination as modified by the April 17, 2007, Order 
Denying Motions for Rehearing and any subsequent modi-
fication to that determination by the Copyright Royalty 
Judges that is published in the Federal Register, is not 
effective, and shall be deemed never to have been effective. 
SEC. 3. COMPUTATION OF ROYALTY FEES FOR COMMER-
CIAL INTERNET RADIO SERVICES OFFERING 
DIGITAL PERFORMANCES OF SOUND RE-
CORDINGS. 
(a) STANDARD
FOR
DETERMINING
RATES
AND 
TERMS.—Section 114(f)(2)(B) of title 17, United States 
Code, is amended by striking ‘‘Such rates and terms shall 
distinguish’’ and all that follows through the end of clause 
(ii) and inserting the following: ‘‘The Copyright Royalty 
Judges shall establish rates and terms in accordance with 
the objectives set forth in section 801(b)(1). Such rates 
and terms may include a minimum annual royalty of not 
more than $500 for each provider of services that are sub-
ject to such rates and terms, which shall be the only min-
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imum royalty fee and shall be assessed only once annually 
to that provider.’’. 
(b) TRANSITION RULE.—Except for services covered 
by section 118 of title 17, United States Code, each pro-
vider of digital audio transmissions that otherwise would 
have been subject to the rates and terms of the determina-
tion of the Copyright Royalty Judges made ineffective by 
section 2 of this Act shall instead pay royalties for each 
year of the 5-year period beginning on January 1, 2006, 
at one of the following rates, as selected by the provider 
for that year: 
(1) 0.33 cents per hour of sound recordings 
transmitted to a single listener. 
(2) 7.5 percent of the revenues received by the 
provider during that year that are directly related to 
the provider’s digital transmissions of sound record-
ings. 
SEC. 4. COMPUTATION OF ROYALTY FEES FOR NON-
COMMERCIAL STATIONS OFFERING DIGITAL 
PERFORMANCES OF SOUND RECORDINGS. 
(a) AMENDMENTS TO SECTION 118 OF TITLE 17, 
UNITED STATES CODE.—Section 118 of title 17, United 
States Code, is amended— 
(1) in subsection (b), in the matter preceding 
paragraph (1), by striking ‘‘and published pictorial’’ 
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and inserting ‘‘, sound recordings, and published 
pictorial’’; 
(2) in subsection (c)— 
(A) in the matter preceding paragraph (1), 
by striking ‘‘and published pictorial’’ and in-
serting ‘‘, sound recordings, and published pic-
torial’’; and 
(B) in paragraph (1), by inserting ‘‘or non-
profit institution or organization’’ after ‘‘broad-
cast station’’; and 
(3) in subsection (f), by striking ‘‘paragraph 
(2)’’ and inserting ‘‘paragraph (1) or (2)’’. 
(b) TRANSITION RULE.—For each calendar year (or 
portion thereof) beginning after December 31, 2004, until 
an applicable voluntary license agreement is filed with the 
Copyright Royalty Judges pursuant to section 118 of title 
17, United States Code (as amended by subsection (a) of 
this section) or an applicable determination is issued by 
the Copyright Royalty Judges pursuant to section 118 of 
such title (as so amended), the annual royalty that a pub-
lic broadcasting entity shall pay to owners of copyrights 
in sound recordings for the uses provided under section 
118(c) of such title (as so amended) shall be an amount 
equal to the 1.5 times the total fees paid by that entity 
(or in the case of a group of related entities, the fees paid 
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