I
103D CONGRESS
1ST SESSION
H. R. 2840
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
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 heading is amended to read as
follows:
‘‘§ 801. Copyright arbitration royalty panels: estab-
lishment and purpose’’;
(2) Subsection (a) is amended to read as fol-
lows:
‘‘(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’’;
bitrators from lists of arbitrators provided to the Librar-
ian by parties participating in the arbitration. The 2 arbi-
trators so selected shall, within 10 days after their selec-
tion, choose a third arbitrator 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 chair-
person, the Librarian of Congress shall promptly select the
chairperson.
‘‘(c) ARBITRATION PROCEEDINGS.—Copyright arbi-
tration royalty panels shall conduct arbitration proceed-
ings, 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 docu-
mented written record, prior decisions of the Copyright
Royalty Tribunal, prior copyright arbitration panel deter-
minations, and rulings by the Librarian of Congress under
section 801(b). Any copyright owner who claims to be enti-
tled to royalties under section 111 or 119 or any inter-
ested copyright party who claims to be entitled to royalties
under section 1006 may submit relevant information and
proposals to the arbitration panels in proceedings applica-
ble to such copyright owner or interested copyright party.
The parties to the proceedings shall bear the entire cost
thereof in such manner and proportion as the arbitration
panels shall direct.
‘‘(d) REPORT TO THE LIBRARIAN OF CONGRESS.—
Not later than 180 days after publication of the notice
initiating an arbitration proceeding, the copyright arbitra-
tion royalty panel conducting the proceeding shall report
to the Librarian of Congress its determination concerning
the royalty 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 arbitra-
tion royalty panel under subsection (d), the Librarian of
Congress, upon the recommendation of the Register of
Copyrights, shall adopt or reject the determination of the
arbitration panel. The Librarian shall adopt the deter-
mination of the arbitration panel unless the Librarian
finds that the determination is arbitrary. If the Librarian
rejects the determination of the arbitration panel, the Li-
brarian shall, before the end of that 60-day period, and
after full examination of the record created in the arbitra-
tion proceeding, issue an order setting the royalty fee or
distribution of fees, as the case may be. The Librarian
shall cause to be published in the Federal Register the
determination of the arbitration panel, and the decision
of the Librarian (including an order issued under the pre-
ceding sentence). The Librarian 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 accom-
panying record available for public inspection and copying.
‘‘(f) JUDICIAL REVIEW.—Any decision of the Librar-
ian of Congress under subsection (e) with respect to a de-
termination of an arbitration panel may be appealed, by
any aggrieved party who would be bound by the deter-
mination, to the United States Court of Appeals for the
District of Columbia Circuit, within 30 days after the pub-
lication of the decision in the Federal Register. The pend-
ency of an appeal under this paragraph shall not relieve
persons obligated to make royalty payments under sec-
tions 111, 119, or 1003 who would be affected by the de-
termination on appeal to deposit the statement of account
and royalty fees specified in those sections. The court shall
have jurisdiction to modify or vacate a decision of the Li-
brarian 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 Librar-
ian, the court shall have jurisdiction to enter its own deter-
mination with respect to the amount or distribution of roy-
alty 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).’’.
(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 beginning 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—
(A) by repealing paragraph (1); and
(B) in paragraph (2)—
(i) in the matter preceding subpara-
graph (A) by striking ‘‘Tribunal,’’ and all
that follows through ‘‘proceedings under
this chapter.’’ and inserting ‘‘Copyright
Royalty Tribunal before the date of the en-
actment of the Copyright Royalty Tribunal
Reform Act of 1993, or by a copyright ar-
bitration royalty panel after such date of
enactment, may file a petition with the Li-
brarian of Congress declaring that the pe-
titioner requests an adjustment of the rate.
The Librarian of Congress shall, upon the
recommendation of the Register of Copy-
rights, make a determination as to whether
the petitioner has such a significant inter-
est in the royalty rate in which an adjust-
ment is requested. If the Librarian deter-
mines that the petitioner has such a sig-
nificant interest, the Librarian shall cause
notice of this determination, with the rea-
sons therefor, to be published in the Fed-
eral Register, together with the notice of
commencement of proceedings under this
chapter.’’;
(ii) in subparagraph (C)—
(I) in clause (i) by striking ‘‘in
1990 and in each subsequent tenth
calendar year, and’’, and by striking
‘‘116A’’ and inserting ‘‘116’’; and
(II) by amending clause (ii) to
read as follows:
‘‘(ii) If a negotiated license authorized by
section 116 is terminated or expires and is not
replaced by another license agreement under
such section, providing permission to use a
quantity of musical works not substantially
smaller than the quantity of such works per-
formed on coin-operated phonorecord players
during the 1-year period ending March 1, 1989,
the Librarian of Congress shall, upon petition
filed under subsection (a) within 1 year after
such termination or expiration, convene a copy-
right arbitration royalty panel. The arbitration
panel shall promptly establish an interim roy-
alty rate or rates for the public performance by
means of a coin-operated phonorecord player of
nondramatic 
musical 
works 
embodied 
in
phonorecords which had been subject to the ter-
minated or expired negotiated license agree-
ment. Such rate or rates shall be the same as
the last such rate or rates and shall remain in
force until the conclusion of proceedings by the
arbitration panel, in accordance with section
802, to adjust the royalty rates applicable to
such works, or until superseded by a new nego-
tiated license agreement, as provided in section
116(c).’’.
(2) Subsection (b) is amended—