II
Calendar No. 241
103D CONGRESS
1ST SESSION
H. R. 2840
IN THE SENATE OF THE UNITED STATES
OCTOBER 13, 1993
Received
OCTOBER 20 (legislative day, OCTOBER 13), 1993
Read twice and ordered placed on the calendar
AN ACT
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 Tri-
bunal 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 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’’;
(D) in paragraph (3), by striking ‘‘In de-
termining’’ 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 dis-
tribution 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, be-
fore 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 ar-
bitration royalty panels
‘‘(a) COMPOSITION
OF COPYRIGHT ARBITRATION
ROYALTY 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 ac-
cordance with procedures specified by the Register of
Copyrights, the Librarian of Congress shall, upon the rec-
ommendation of the Register of Copyrights, select 2 arbi-
trators from lists of arbitrators provided to the Librarian
by parties participating in the arbitration and by profes-
sional arbitration associations or such similar organiza-
tions as the Librarian shall select. The 2 arbitrators so
selected shall, within 10 days after their selection, 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 third arbitrator, the
Librarian of Congress shall promptly select the third arbi-
trator.
‘‘(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(c). Any copyright owner who claims to be enti-
tled to royalties under section 111, 116, or 119, or any
interested copyright party who claims to be entitled to roy-
alties under section 1006, may submit relevant informa-
tion and proposals to the arbitration 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 proceed-
ings. The parties to the proceedings shall bear the entire
cost thereof in such manner and proportion as the arbitra-
tion 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. If no ap-
peal 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
‘‘(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
authorized 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 quantity of musical works not substantially smaller than
the quantity of such works performed on coin-operated
phonorecord players during the 1-year period ending
March 1, 1989, the Librarian of Congress shall, upon peti-
tion filed under paragraph (1) within 1 year after such
termination or expiration, convene a copyright arbitration
royalty panel. The arbitration panel shall promptly estab-
lish an interim royalty rate or rates for the public perform-
ance by means of a coin-operated phonorecord player of
non-dramatic musical works embodied in phonorecords
which had been subject to the terminated or expired nego-
tiated license agreement. 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 roy-
alty rates applicable to such works, or until superseded
by a new negotiated license agreement, as provided in sec-
tion 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
Tribunal 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 Tribu-
nal’’ 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 sec-
tions 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 chapter 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),
respectively;
(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 ‘‘ARBI-
TRATION 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
amended—
(1) in subsection (b)—
(A) by striking the first 2 sentences;
(B) in the third sentence by striking
‘‘works specified by this subsection’’ and insert-
ing ‘‘published 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 para-
graph (2), shall be binding on all owners of
copyright in works specified by this sub-
section and public broadcasting entities,
regardless of whether such copyright own-
ers have submitted proposals to the Li-
brarian of Congress.’’;
(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 ‘‘para-
graph (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
Tribunal’’ and inserting ‘‘a copyright arbitra-
tion 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
inserting ‘‘paragraph’’.
SEC. 5. SECONDARY TRANSMISSIONS BY SUPERSTATIONS
AND 
NETWORK 
STATIONS 
FOR 
PRIVATE
VIEWING.
Section 119 of title 17, United States Code, is
amended—
(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
Congress’’; and
(iii) in subparagraph (B) by striking
‘‘conduct a proceeding’’ in the last sen-
tence and inserting ‘‘convene a copyright
arbitration 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 con-
ducted 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 con-
stituted),’’.
(2) Paragraph (1)(A) is amended by striking ‘‘,
after consultation with the Copyright Royalty Tribu-
nal (if and when the Tribunal has been con-
stituted),’’.
(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
Treasury shall be invested in interest-bearing United
States securities for later distribution with interest
by the Librarian of Congress in the event no con-
troversy 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
follows:
‘‘(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
concerning the distribution of royalty fees. If
the Librarian determines that no such con-
troversy exists, the Librarian shall, after de-
ducting reasonable administrative costs under
this section, distribute such fees to the copy-
right owners entitled to such fees, or to their
designated agents. If the Librarian finds the ex-
istence 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.—
Section 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
Congress’’; 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
Congress’’; and
(ii) by striking ‘‘Tribunal’’ each place
it appears and inserting ‘‘Librarian of
Congress’’; and
(C) in subsection (c)—
(i) by striking the first sentence and
inserting ‘‘If the Librarian of Congress
finds the existence of a controversy, the Li-
brarian shall, pursuant to chapter 8 of this
title, convene a copyright arbitration roy-
alty panel to determine the distribution of
royalty payments.’’;
(ii) by striking ‘‘Tribunal’’ each place
it appears and inserting ‘‘Librarian of
Congress’’; and
(iii) in the last sentence by striking
‘‘its reasonable administrative costs’’ and
inserting ‘‘the reasonable administrative
costs incurred by the Librarian’’.
(5) ARBITRATION OF CERTAIN DISPUTES.—Sec-
tion 1010 of title 17, United States Code, is amend-
ed—
(A) in subsection (b)—
(i) by striking ‘‘Copyright Royalty
Tribunal’’ and inserting ‘‘Librarian of
Congress’’; and
(ii) by striking ‘‘Tribunal’’ each place
it appears and inserting ‘‘Librarian of
Congress’’;
(B) in subsection (e)—
(i) in the subsection caption by strik-
ing ‘‘COPYRIGHT
ROYALTY
TRIBUNAL’’
and inserting ‘‘LIBRARIAN OF CONGRESS’’;
and
(ii) by striking ‘‘Copyright Royalty
Tribunal’’ and inserting ‘‘Librarian of
Congress’’;
(C) in subsection (f)—
(i) in the subsection caption by strik-
ing ‘‘COPYRIGHT
ROYALTY
TRIBUNAL’’
and inserting ‘‘LIBRARIAN OF CONGRESS’’;