for the use of the infringed work may not be 
made under subparagraph (A) if— 
‘‘(I) the infringement is performed 
without any purpose of direct or indirect 
commercial advantage and primarily for a 
charitable, religious, scholarly, or edu-
cational purpose, and 
‘‘(II) the infringer ceases the infringe-
ment expeditiously after receiving notice of 
the claim for infringement, 
unless the copyright owner proves, and the 
court finds, that the infringer has earned pro-
ceeds directly attributable to the infringement. 
‘‘(ii) If the infringer fails to negotiate in 
good faith with the owner of the infringed work 
regarding the amount of reasonable compensa-
tion for the use of the infringed work, the court 
may award full costs, including a reasonable at-
torney’s fee, against the infringer under section 
505, subject to section 412. 
‘‘(2) INJUNCTIVE RELIEF.— 
‘‘(A) GENERAL
RULE.—Subject to sub-
paragraph (B), the court may impose injunctive 
relief to prevent or restrain the infringing use, 
except that, if the infringer has met the re-
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quirements of subsection (a), the relief shall, to 
the extent practicable, account for any harm 
that the relief would cause the infringer due to 
its reliance on having performed a reasonably 
diligent search under subsection (a). 
‘‘(B) SPECIAL RULE FOR NEW WORKS.—In 
a case in which the infringer recasts, trans-
forms, adapts, or integrates the infringed work 
with the infringer’s original expression in a new 
work of authorship, the court may not, in 
granting injunctive relief, restrain the infring-
er’s continued preparation or use of that new 
work, if the infringer— 
‘‘(i) pays reasonable compensation to 
the owner of the infringed copyright for 
the use of the infringed work; and 
‘‘(ii) provides attribution to the owner 
of the infringed copyright in a manner that 
the court determines is reasonable under 
the circumstances. 
‘‘(C) TREATMENT OF PARTIES NOT SUB-
JECT
TO
SUIT.—The limitations on remedies 
under this paragraph shall not be available to 
an infringer that asserts in an action under sec-
tion 501(b) that neither it nor its representative 
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acting in an official capacity is subject to suit 
in Federal court for an award of damages to 
the copyright owner under section 504, unless 
the court finds that such infringer has— 
‘‘(i) complied with the requirements of 
subsection (a) of this section; 
‘‘(ii) made a good faith offer of com-
pensation that was rejected by the copy-
right owner; and 
‘‘(iii) affirmed in writing its willing-
ness to pay such compensation to the copy-
right owner upon the determination by the 
court that such compensation was reason-
able under paragraph (3) of this sub-
section. 
‘‘(D) CONSTRUCTION.—Nothing in sub-
paragraph (C) shall be deemed to authorize or 
require, and no action taken pursuant to sub-
paragraph (C) shall be deemed to constitute, an 
award of damages by the court against the in-
fringer. 
‘‘(E) 
RIGHTS
AND
PRIVILEGES
NOT 
WAIVED.—No action taken by an infringer pur-
suant to subparagraph (C) shall be deemed to 
waive any right or privilege that, as a matter of 
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law, protects such infringer from being subject 
to suit in Federal court for an award of dam-
ages to the copyright owner under section 504. 
‘‘(3) REASONABLE COMPENSATION.—In estab-
lishing reasonable compensation under paragraph 
(1) or (2), the owner of the infringed copyright has 
the burden of establishing the amount on which a 
reasonable willing buyer and a reasonable willing 
seller in the positions of the owner and the infringer 
would have agreed with respect to the infringing use 
of the work immediately before the infringement 
began. 
‘‘(c) PRESERVATION
OF OTHER RIGHTS, LIMITA-
TIONS, AND DEFENSE.—This section does not affect any 
right, limitation, or defense to copyright infringement, in-
cluding fair use, under this title. If another provision of 
this title provides for a statutory license when the copy-
right owner cannot be located, that provision applies in 
lieu of this section. 
‘‘(d) COPYRIGHT
FOR DERIVATIVE WORKS.—Not-
withstanding section 103(a), the infringing use of a work 
in accordance with this section shall not limit or affect 
the copyright protection for a work that uses the infringed 
work.’’. 
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(b) CONFORMING AMENDMENT.—The table of sec-
tions for chapter 5 of title 17, United States Code, is 
amended by adding at the end the following new item: 
‘‘514. Limitation on remedies in cases involving orphan works’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply only to infringing uses that com-
mence on or after June 1, 2008. 
SEC. 3. REPORT TO CONGRESS ON AMENDMENTS. 
The Register of Copyrights shall, not later than De-
cember 12, 2014, report to the Committee on the Judici-
ary of the House of Representatives and the Committee 
on the Judiciary of the Senate on the implementation and 
effects of the amendments made by section 2, including 
any recommendations for legislative changes that the Reg-
ister considers appropriate. 
SEC. 4. INQUIRY ON REMEDIES FOR SMALL COPYRIGHT 
CLAIMS. 
(a) IN GENERAL.—The Register of Copyrights shall 
conduct an inquiry with respect to remedies for copyright 
infringement claims seeking limited amounts of monetary 
relief, including consideration of alternatives to disputes 
currently heard in the United States district courts. The 
inquiry shall cover infringement claims to which section 
514 of title 17, United States Code (as added by section 
2 of this Act), apply, and other infringement claims under 
title 17, United States Code. 
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