130
rates and terms, or such other period as the par-
ties may agree.’’; 
(B) in the third sentence, by striking ‘‘Li-
brarian of Congress’’ and inserting ‘‘Copyright 
Royalty Judges’’; and 
(C) in the fourth sentence, by striking ‘‘ne-
gotiation’’; 
(4) in subparagraph (D)—
(A) by amending the first sentence to read 
as follows: ‘‘The schedule of reasonable rates and 
terms determined by the Copyright Royalty 
Judges shall, subject to subparagraph (E), be 
binding on all copyright owners of nondramatic 
musical works and persons entitled to obtain a 
compulsory license under subsection (a)(1) dur-
ing the period specified in subparagraph (C), 
such other period as may be determined pursu-
ant to subparagraphs (B) and (C), or such other 
period as the parties may agree.’’; 
(B) in the third sentence, by striking ‘‘copy-
right arbitration royalty panel’’ and inserting 
‘‘Copyright Royalty Judges’’; and 
(C) in the third sentence, by striking ‘‘nego-
tiated as provided in subparagraphs (B) and 
(C)’’ and inserting ‘‘described’’;
131
(5) in subparagraph (E)—
(A) in clause (i)—
(i) in the first sentence, by striking 
‘‘Librarian of Congress’’ and inserting ‘‘Li-
brarian of Congress, Copyright Royalty 
Judges, or a copyright arbitration royalty 
panel to the extent those determinations 
were accepted by the Librarian of Con-
gress’’; 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 8 PROCEEDING.—Parties not sub-
ject to such a negotiation may have the terms and
132
rates and the division of fees described in paragraph 
(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 DE-
TERMINATIONS’’ and inserting ‘‘DETERMINA-
TIONS 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 amend-
ed—
(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 ‘‘Librar-
ian of Congress:’’ and all that follows through the 
end of the sentence and inserting ‘‘Librarian of 
Congress, a copyright arbitration royalty panel,
133
or the Copyright Royalty Judges, to the extent 
that they were accepted by the Librarian of Con-
gress, 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 arbitra-
tion 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 sentence 
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
134
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, conduct 
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, regardless of whether 
such copyright owners have submitted 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
135
(C) by striking ‘‘a copyright arbitration 
royalty panel under subsection (b)(3)’’ and in-
serting ‘‘the Copyright Royalty Judges under 
subsection (b)(3), to the extent that they were ac-
cepted by the Librarian of Congress’’; 
(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 
shall prescribe’’ and inserting ‘‘Copyright Roy-
alty Judges shall prescribe as provided in section 
803(b)(6)’’; and 
(5) in subsection (f), as so redesignated, by strik-
ing ‘‘(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
136
(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 controversy con-
cerning the distribution of royalty fees. If the 
Copyright Royalty Judges determine that no 
such controversy exists, the Librarian of Con-
gress shall, after deducting reasonable adminis-
trative costs under this paragraph, distribute 
such fees to the copyright owners entitled to re-
ceive 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 roy-
alty fees. 
‘‘(C) WITHHOLDING OF FEES DURING CON-
TROVERSY.—During the pendency of any pro-
ceeding 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, but shall
137
have the discretion to proceed to distribute any 
amounts that are not in controversy.’’.
(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 Royalty 
Judges’’.
(2) ENTITLEMENT TO ROYALTY PAYMENTS.—Sec-
tion 1006(c) is amended by striking ‘‘Librarian of 
Congress shall convene a copyright arbitration roy-
alty panel which’’ and inserting ‘‘Copyright Royalty 
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
138
(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 de-
termine that no such controversy exists, the Librarian of 
Congress shall, within 30 days after such determination, 
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 Li-
brarian of Congress shall, before such royalty payments are 
distributed, deduct the reasonable administrative costs in-
curred 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 distribution 
of royalty payments. During the pendency of such a pro-
ceeding, 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
139
not in controversy. The Librarian of Congress shall, before 
such royalty payments are distributed, deduct the reason-
able 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 determine 
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 Copyright Roy-
alty 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 ac-
tion brought under section 1009 against a party to a pro-
ceeding under this section shall, on application of one of
140
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 Copyright 
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 informa-
tion 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 ap-
pealed, 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 Copy-
right Royalty Judges. If the court modifies the determina-
tion of the Copyright Royalty Judges, the court shall have 
jurisdiction to enter its own decision in accordance with 
its final judgment. The court may further vacate the deter-
mination of the Copyright Royalty Judges and remand the 
case for proceedings as provided in this section.’’. 
(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.’’.
141
SEC. 6. EFFECTIVE DATE AND TRANSITION PROVISIONS. 
(a) EFFECTIVE DATE.—This Act and the amendments 
made by this Act shall take effect 6 months after the date 
of the enactment of this Act, except that the Librarian of 
Congress shall appoint 1 or more 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 amend-
ed by this Act, have not been appointed before the end of 
that 90-day period. 
(b) TRANSITION PROVISIONS.—
(1) IN GENERAL.—Subject to paragraphs (2) and 
(3), the amendments made by this Act shall not affect 
any proceedings commenced, petitions filed, or vol-
untary agreements entered into before the enactment 
of this Act under the provisions of title 17, United 
States Code, amended by this Act, and pending on 
such date of enactment. Such proceedings shall con-
tinue, determinations made in such proceedings, 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 voluntary agree-
142
ments entered into shall remain in effect as if this Act 
had not been enacted. For the purposes of this para-
graph, the Librarian of Congress may determine 
whether a proceeding has commenced. 
(2) PENDING
PROCEEDINGS.—Notwithstanding 
paragraph (1), any proceeding commenced before the 
enactment of this Act may be terminated by the Li-
brarian of Congress, with the approval of the Copy-
right Royalty Judges. In such cases, the Copyright 
Royalty Judges shall initiate a new proceeding in ac-
cordance with regulations adopted pursuant to section 
803(b)(6) of title 17, United States Code. 
(3) 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 sub-
scription services, eligible nonsubscription 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 Federal Register under the au-
thority of the Small Webcaster Settlement Act of 2002 
for the years 2003 through 2004, shall be effective 
until the later of 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
143
until such later date as the parties may agree or the 
Copyright Royalty Judges may establish. If successor 
terms and rates have not yet been established by such 
date, licensees shall continue to make royalty pay-
ments at the rates and on the terms previously in ef-
fect, subject to retroactive adjustment when successor 
rates and terms for such services are established. 
(c) EXISTING APPROPRIATIONS.—Any funds made 
available in an appropriations Act before the effective date 
of this Act to carry out chapter 8 of title 17, United States 
Code, shall be available to the extent necessary to carry out 
this section.
Calendar No. 744
108TH CONGRESS 
2D SESSION 
H. R. 1417
AN ACT 
To amend title 17, United States Code, to replace 
copyright arbitration royalty panels with Copy-
right Royalty Judges, and for other purposes. 
SEPTEMBER 29, 2004
Reported with an amendment