IB 
Union Calendar No. 234
108TH CONGRESS 
2D SESSION 
H. R. 1417
[Report No. 108–408] 
To amend title 17, United States Code, to replace copyright arbitration 
royalty panels with a Copyright Royalty Judge, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 25, 2003
Mr. SMITH of Texas (for himself, Mr. BERMAN, and Mr. CONYERS) introduced 
the following bill; which was referred to the Committee on the Judiciary 
JANUARY 30, 2004
Reported with amendments, committed to the Committee of the Whole House 
on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on March 25, 2003] 
A BILL 
To amend title 17, United States Code, to replace copyright 
arbitration royalty panels with a Copyright Royalty 
Judge, 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 and 
Distribution Reform Act of 2003’’. 
SEC. 2. REFERENCE. 
Except as otherwise expressly provided, whenever in 
this Act an amendment or repeal is expressed in terms of 
an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or 
other provision of title 17, United States Code. 
SEC. 3. COPYRIGHT ROYALTY JUDGE AND STAFF. 
(a) IN GENERAL.—Chapter 8 is amended to read as 
follows: 
‘‘CHAPTER 8—PROCEEDINGS BY 
COPYRIGHT ROYALTY JUDGES
‘‘Sec. 
‘‘801. Copyright Royalty Judges; appointment and functions. 
‘‘802. Copyright Royalty Judgeships; staff. 
‘‘803. Proceedings of Copyright Royalty Judges. 
‘‘804. Institution of proceedings. 
‘‘805. General rule for voluntarily negotiated agreements.
‘‘§ 801. Copyright Royalty Judges; appointment and 
functions 
‘‘(a) APPOINTMENT.—The Librarian of Congress shall 
appoint 3 full-time Copyright Royalty Judges, and shall 
appoint one of the three as the Chief Copyright Royalty 
Judge. In making such appointments, the Librarian shall 
consult with the Register of Copyrights.
‘‘(b) FUNCTIONS.—Subject to the provisions of this 
chapter, the functions of the Copyright Royalty Judges shall 
be as follows: 
‘‘(1) To make determinations and adjustments of 
reasonable terms and rates of royalty payments as 
provided in sections 112(e), 114, 115, 116, 118, 119 
and 1004. The rates applicable under sections 
114(f)(1)(B), 115, and 116 shall be calculated to 
achieve the following objectives: 
‘‘(A) To maximize the availability of cre-
ative works to the public. 
‘‘(B) To afford the copyright owner a fair 
return for his or her creative work and the copy-
right user a fair income under existing economic 
conditions. 
‘‘(C) To reflect the relative roles of the copy-
right owner and the copyright user in the prod-
uct made available to the public with respect to 
relative creative contribution, technological con-
tribution, capital investment, cost, risk, and con-
tribution to the opening of new markets for cre-
ative expression and media for their communica-
tion.
‘‘(D) To minimize any disruptive impact 
on the structure of the industries involved and on 
generally prevailing industry practices. 
‘‘(2) To make determinations concerning the ad-
justment of the copyright royalty rates under section 
111 solely in accordance with the following provi-
sions: 
‘‘(A) The rates established by section 
111(d)(1)(B) may be adjusted to reflect—
‘‘(i) national monetary inflation or de-
flation; or 
‘‘(ii) changes in the average rates 
charged cable subscribers for the basic serv-
ice of providing secondary transmissions to 
maintain the real constant dollar level of 
the royalty fee per subscriber which existed 
as of the date of October 19, 1976, 
except that—
‘‘(I) if the average rates charged cable 
system subscribers for the basic service of 
providing 
secondary 
transmissions 
are 
changed so that the average rates exceed na-
tional monetary inflation, no change in the 
rates established by section 111(d)(1)(B) 
shall be permitted; and
‘‘(II) no increase in the royalty fee 
shall be permitted based on any reduction 
in the average number of distant signal 
equivalents per subscriber. 
The Copyright Royalty Judges may consider all 
factors relating to the maintenance of such level 
of payments, including, as an extenuating factor, 
whether the industry has been restrained by sub-
scriber rate regulating authorities from increas-
ing the rates for the basic service of providing 
secondary transmissions. 
‘‘(B) In the event that the rules and regula-
tions of the Federal Communications Commis-
sion are amended at any time after April 8, 
1976, to permit the carriage by cable systems of 
additional television broadcast signals beyond 
the local service area of the primary transmitters 
of such signals, the royalty rates established by 
section 111(d)(1)(B) may be adjusted to insure 
that the rates for the additional distant signal 
equivalents resulting from such carriage are rea-
sonable in the light of the changes effected by the 
amendment to such rules and regulations. In de-
termining the reasonableness of rates proposed 
following an amendment of Federal Communica-
tions Commission rules and regulations, the 
Copyright Royalty Judges shall consider, among 
other factors, the economic impact on copyright 
owners and users; except that no adjustment in 
royalty rates shall be made under this subpara-
graph with respect to any distant signal equiva-
lent or fraction thereof represented by—
‘‘(i) carriage of any signal permitted 
under the rules and regulations of the Fed-
eral Communications Commission in effect 
on April 15, 1976, or the carriage of a sig-
nal of the same type (that is, independent, 
network, or noncommercial educational) 
substituted for such permitted signal; or 
‘‘(ii) a television broadcast signal first 
carried after April 15, 1976, pursuant to an 
individual waiver of the rules and regula-
tions of the Federal Communications Com-
mission, as such rules and regulations were 
in effect on April 15, 1976. 
‘‘(C) In the event of any change in the rules 
and regulations of the Federal Communications 
Commission with respect to syndicated and 
sports program exclusivity after April 15, 1976, 
the rates established by section 111(d)(1)(B) may
be adjusted to assure that such rates are reason-
able in light of the changes to such rules and reg-
ulations, but any such adjustment shall apply 
only to the affected television broadcast signals 
carried on those systems affected by the change. 
‘‘(D) The gross receipts limitations estab-
lished by section 111(d)(1)(C) and (D) shall be 
adjusted to reflect national monetary inflation or 
deflation or changes in the average rates charged 
cable system subscribers for the basic service of 
providing secondary transmissions to maintain 
the real constant dollar value of the exemption 
provided by such section, and the royalty rate 
specified therein shall not be subject to adjust-
ment. 
‘‘(3) To authorize the distribution, under sections 
111, 119, and 1007, of those royalty fees collected 
under sections 111, 119, and 1005, as the case may 
be, to the extent that the Copyright Royalty Judges 
have found that the distribution of such fees is not 
subject to controversy. In cases where the Copyright 
Royalty Judges determine that controversy exists—
‘‘(A) the Copyright Royalty Judges shall de-
termine the distribution of such fees, in accord-
ance with section 111, 119, or 1007, as the case 
may be; and 
‘‘(B) the Copyright Royalty Judges shall 
make a partial distribution of such fees during 
the pendency of the proceeding under subpara-
graph (A) if all participants under section 
803(b)(2) in the proceeding—
‘‘(i) agree to such partial distribution; 
‘‘(ii) sign an agreement obligating 
them to return any excess amounts to the 
extent necessary to comply with the final 
determination on the distribution of the fees 
made under subparagraph (A); and 
‘‘(iii) file the agreement with the Copy-
right Royalty Judges. 
The Copyright Royalty Judges and any other officer 
or employee acting in good faith in distributing funds 
under subparagraph (B) shall not be held liable for 
the payment of any excess fees under subparagraph 
(B). The Copyright Royalty Judges shall, at the time 
the final determination is made, calculate any such 
excess amounts. 
‘‘(4) To accept or reject royalty claims filed 
under section 111, 119, and 1007, on the basis of
timeliness or the failure to establish the basis for a 
claim. 
‘‘(5) To accept or reject rate adjustment petitions 
as provided in section 804 and petitions to partici-
pate as provided in section 803(b)(1) and (2). 
‘‘(6) To determine the status of a digital audio 
recording device or a digital audio interface device 
under sections 1002 and 1003, as provided in section 
1010. 
‘‘(7)(A) To adopt as the basis for statutory terms 
and rates or as a basis for the distribution of statu-
tory royalty payments, an agreement concerning such 
matters reached among some or all of the participants 
in a proceeding at any time during the proceeding, 
except that—
‘‘(i) the Copyright Royalty Judges shall 
provide to the other participants in the pro-
ceeding under section 803(b)(2) that would be 
bound by the terms, rates, distribution, or other 
determination set by the agreement an oppor-
tunity to comment on the agreement and object 
to its adoption as the basis for statutory terms 
and rates or as a basis for the distribution of 
statutory royalty payments, as the case may be; 
and
‘‘(ii) the Copyright Royalty Judges may de-
cline to adopt the agreement as the basis for stat-
utory terms and rates or as the basis for the dis-
tribution of statutory royalty payments, as the 
case may be, if any other participant described 
in subparagraph (A) objects to the agreement 
and the Copyright Royalty Judges find, based on 
the record before them, that the agreement is not 
likely to meet the statutory standard for setting 
the terms and rates, or for distributing the roy-
alty payments, as the case may be.
‘‘(B) License agreements voluntarily negotiated 
pursuant 
to 
section 
112(e)(5), 
114(f)(3), 
115(c)(3)(E)(i), 116(c), or 118(b)(2) that do not re-
sult in statutory terms and rates shall not be subject 
to clauses (i) and (ii) of subparagraph (A). 
‘‘(c) RULINGS.—The Copyright Royalty Judges may 
make any necessary procedural or evidentiary rulings in 
any proceeding under this chapter and may, before com-
mencing a proceeding under this chapter, make any such 
rulings that would apply to the proceedings conducted by 
the Copyright Royalty Judges. The Copyright Royalty 
Judges may consult with the Register of Copyrights in mak-
ing any rulings under section 802(f)(1).
‘‘(d) ADMINISTRATIVE SUPPORT.—The Librarian of 
Congress shall provide the Copyright Royalty Judges with 
the necessary administrative services related to proceedings 
under this chapter. 
‘‘(e) LOCATION IN LIBRARY OF CONGRESS.—The offices 
of the Copyright Royalty Judges and staff shall be in the 
Library of Congress. 
‘‘§ 802. Copyright Royalty Judgeships; staff 
‘‘(a) 
QUALIFICATIONS
OF
COPYRIGHT
ROYALTY 
JUDGES.—Each Copyright Royalty Judge shall be an attor-
ney who has at least 7 years of legal experience. The Chief 
Copyright Royalty Judge shall have at least 5 years of expe-
rience in adjudications, arbitrations, or court trials. Of the 
other two Copyright Royalty Judges, one shall have signifi-
cant knowledge of copyright law, and the other shall have 
significant knowledge of economics. An individual may 
serve as a Copyright Royalty Judge only if the individual 
is free of any financial conflict of interest under subsection 
(h). In this subsection, ‘adjudication’ has the meaning given 
that term in section 551 of title 5, but does not include 
mediation. 
‘‘(b) STAFF.—The Chief Copyright Royalty Judge 
shall hire 3 full-time staff members to assist the Copyright 
Royalty Judges in performing their functions.
‘‘(c) TERMS.—The terms of the Copyright Royalty 
Judges shall each be 6 years, except of the individuals first 
appointed, the Chief Copyright Royalty Judge shall be ap-
pointed to a term of 6 years, and of the remaining Copy-
right Royalty Judges, one shall be appointed to a term of 
2 years, and the other shall be appointed to a term of 4 
years. An individual serving as a Copyright Royalty Judge 
may be reappointed to subsequent terms. The term of a 
Copyright Royalty Judge shall begin when the term of the 
predecessor of that Copyright Royalty Judge ends. When the 
term of office of a Copyright Royalty Judge ends, the indi-
vidual serving that term may continue to serve until a suc-
cessor is selected. 
‘‘(d) VACANCIES OR INCAPACITY.—
‘‘(1) VACANCIES.—If a vacancy should occur in 
the position of Copyright Royalty Judge, the Librar-
ian of Congress shall act expeditiously to fill the va-
cancy, and may appoint an interim Copyright Roy-
alty Judge to serve until another Copyright Royalty 
Judge is appointed under this section. An individual 
appointed to fill the vacancy occurring before the ex-
piration of the term for which the predecessor of that 
individual was appointed shall be appointed for the 
remainder of that term.
‘‘(2) INCAPACITY.—In the case in which a Copy-
right Royalty Judge is temporarily unable to perform 
his or her duties, the Librarian of Congress may ap-
point an interim Copyright Royalty Judge to perform 
such duties during the period of such incapacity. 
‘‘(e) COMPENSATION.—
‘‘(1) JUDGES.—The Chief Copyright Royalty 
Judge shall receive compensation at the rate of basic 
pay payable for level AL–1 for administrative law 
judges pursuant to section 5372(b) of title 5, and each 
of the other two Copyright Royalty Judges shall re-
ceive compensation at the rate of basic pay payable 
for level AL–2 for administrative law judges pursuant 
to such section. The compensation of the Copyright 
Royalty Judges shall not be subject to any regulations 
adopted by the Office of Personnel Management pur-
suant to its authority under section 5376(b)(1) of title 
5. 
‘‘(2) STAFF MEMBERS.—Of the staff members ap-
pointed under subsection (b)—
‘‘(A) the rate of pay of one staff member 
shall be not more than the basic rate of pay pay-
able for GS–15 of the General Schedule; 
‘‘(B) the rate of pay of one staff member 
shall be not less than the basic rate of pay pay-
able for GS–13 of the General Schedule and not 
more than the basic rate of pay payable for GS–
14 of such Schedule; and 
‘‘(C) the rate of pay for the third staff mem-
ber shall be not less than the basic rate of pay 
payable for GS–8 of the General Schedule and 
not more than the basic rate of pay payable for 
GS–11 of such Schedule. 
‘‘(f) 
INDEPENDENCE
OF
COPYRIGHT
ROYALTY 
JUDGE.—
‘‘(1) IN MAKING DETERMINATIONS.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), the Copyright Royalty Judges shall 
have full independence in making determinations 
concerning adjustments and determinations of 
copyright royalty rates and terms, the distribu-
tion of copyright royalties, the acceptance or re-
jection of royalty claims, rate adjustment peti-
tions, and petitions to participate, and in 
issuing other rulings under this title, except that 
the Copyright Royalty Judges may consult with 
the Register of Copyrights on any matter other 
than a question of fact. Any such consultations 
between the Copyright Royalty Judges and the
Register of Copyright on any question of law 
shall be in writing or on the record. 
‘‘(B) 
NOVEL
QUESTIONS.—(i) 
Notwith-
standing the provisions of subparagraph (A), in 
any case in which the Copyright Royalty Judges 
in a proceeding under this title are presented 
with a novel question of law concerning an in-
terpretation of those provisions of this title that 
are the subject of the proceeding, the Copyright 
Royalty Judges shall request the Register of 
Copyrights, in writing, to submit a written 
opinion on the resolution of such novel question. 
The Register shall submit and make public that 
opinion within such time period as the Copy-
right Royalty Judges may prescribe. Any con-
sultations under this subparagraph between the 
Copyright Royalty Judges and the Register of 
Copyrights shall be in writing or on the record. 
The opinion of the Register shall not be binding 
on the Copyright Royalty Judges, but the Copy-
right Royalty Judges shall take the opinion of 
the Register into account in making the judges’ 
determination on the question concerned. 
‘‘(ii) In clause (i), a ‘novel question of law’ 
is a question of law that has not been determined
in prior decisions, determinations, and rulings 
described in section 803(a). 
‘‘(2) PERFORMANCE APPRAISALS.—
‘‘(A) IN
GENERAL.—Notwithstanding any 
other provision of law or any regulation of the 
Library of Congress, and subject to subpara-
graph (B), the Copyright Royalty Judges shall 
not receive performance appraisals. 
‘‘(B) RELATING
TO
SANCTION
OR
RE-
MOVAL.—To the extent that the Librarian of 
Congress adopts regulations under subsection (h) 
relating to the sanction or removal of a Copy-
right Royalty Judge and such regulations re-
quire documentation to establish the cause of 
such sanction or removal, the Copyright Royalty 
Judge may receive an appraisal related specifi-
cally to the cause of the sanction or removal. 
‘‘(g) INCONSISTENT DUTIES BARRED.—No Copyright 
Royalty Judge may undertake duties inconsistent with his 
or her duties and responsibilities as Copyright Royalty 
Judge. 
‘‘(h) STANDARDS
OF CONDUCT.—The Librarian of 
Congress shall adopt regulations regarding the standards 
of conduct, including financial conflict of interest and re-
strictions against ex parte communications, which shall
govern the Copyright Royalty Judges and the proceedings 
under this chapter. 
‘‘(i) REMOVAL OR SANCTION.—The Librarian of Con-
gress may sanction or remove a Copyright Royalty Judge 
for violation of the standards of conduct adopted under sub-
section (h), misconduct, neglect of duty, or any disquali-
fying physical or mental disability. Any such sanction or 
removal may be made only after notice and opportunity 
for a hearing, but the Librarian of Congress may suspend 
the Copyright Royalty Judge during the pendency of such 
hearing. The Librarian shall appoint an interim Copyright 
Royalty Judge during the period of any such suspension. 
‘‘§ 803. Proceedings of Copyright Royalty Judges 
‘‘(a) PROCEEDINGS.—
‘‘(1) IN
GENERAL.—The Copyright Royalty 
Judges shall act in accordance with this title, and to 
the extent not inconsistent with this title, in accord-
ance with subchapter II of chapter 5 of title 5, in car-
rying out the purposes set forth in section 801. The 
Copyright Royalty Judges shall act in accordance 
with regulations issued by the Copyright Royalty 
Judges and on the basis of a fully documented written 
record, prior decisions of the Copyright Royalty Tri-
bunal, prior copyright arbitration royalty panel de-
terminations, rulings by the Librarian of Congress be-
fore the effective date of the Copyright Royalty and 
Distribution Reform Act of 2003, prior determina-
tions of Copyright Royalty Judges under this chapter, 
and decisions of the court in appeals under this chap-
ter before, on, or after such effective date. Any partici-
pant in a proceeding under subsection (b)(2) may 
submit relevant information and proposals to the 
Copyright Royalty Judges. 
‘‘(2) JUDGES ACTING AS PANEL AND INDIVID-
UALLY.—The Copyright Royalty Judges shall preside 
over hearings in proceedings under this chapter en 
banc. The Chief Copyright Royalty Judge may des-
ignate a Copyright Royalty Judge to preside individ-
ually over such collateral and administrative pro-
ceedings, and over such proceedings under paragraphs 
(1) through (5) of subsection (b), as the Chief Judge 
considers appropriate. 
‘‘(3) DETERMINATIONS.—Final determinations 
of the Copyright Royalty Judges in proceedings under 
this chapter shall be made by majority vote. A Copy-
right Royalty Judge dissenting from the majority on 
any determination under this chapter may issue his 
or her dissenting opinion, which shall be included 
with the determination. 
‘‘(b) PROCEDURES.—
‘‘(1) INITIATION.—
‘‘(A) CALL
FOR
PETITIONS
TO
PARTICI-
PATE.—(i) Promptly upon the filing of a peti-
tion for a rate adjustment or determination 
under section 804(a) or 804(b)(8), or by no later 
than January 5 of a year specified in section 
804 for the commencement of a proceeding if a 
petition has not been filed by that date, the 
Copyright Royalty Judges shall cause to be pub-
lished in the Federal Register notice of com-
mencement of proceedings under this chapter 
calling for the filing of petitions to participate 
in a proceeding under this chapter for the pur-
pose of making the relevant determination under 
section 111, 112, 114, 115, 116, 118, 119, 1004 
or 1007, as the case may be. 
‘‘(ii) Petitions to participate shall be filed 
by no later than 30 days after publication of no-
tice of commencement of a proceeding, under 
clause (i), except that the Copyright Royalty 
Judges may, for substantial good cause shown 
and if there is no prejudice to the participants 
that have already filed petitions, accept late peti-
tions to participate at any time up to the date 
that is 90 days before the date on which partici-
pants in the proceeding are to file their written 
direct statements. 
‘‘(B) PETITIONS
TO
PARTICIPATE.—Each 
petition to participate in a proceeding shall de-
scribe the petitioner’s interest in the subject mat-
ter of the proceeding. Parties with similar inter-
ests may file a single petition to participate. 
‘‘(2) PARTICIPATION
IN
GENERAL.—Subject to 
paragraph (4), a person may participate in a pro-
ceeding under this chapter, including through the sub-
mission of briefs or other information, only if—
‘‘(A) that person has filed a petition to par-
ticipate in accordance with paragraph (1) (ei-
ther individually or as a group under paragraph 
(1)(B)), together with a filing fee of $150; 
‘‘(B) the Copyright Royalty Judges have not 
determined that the petition to participate is 
facially invalid; and 
‘‘(C) the Copyright Royalty Judges have not 
determined, sua sponte or on the motion of an-
other participant in the proceeding, that the per-
son lacks a significant interest in the proceeding. 
‘‘(3) VOLUNTARY NEGOTIATION PERIOD.—
‘‘(A) IN GENERAL.—Promptly after the date 
for filing of petitions to participate in a pro-
ceeding, the Copyright Royalty Judges shall 
make available to all participants in the pro-
ceeding a list of such participants and shall ini-
tiate a voluntary negotiation period among the 
participants. 
‘‘(B) LENGTH OF PROCEEDINGS.—The vol-
untary negotiation period initiated under sub-
paragraph (A) shall be 3 months. 
‘‘(C) 
DETERMINATION
OF
SUBSEQUENT 
PROCEEDINGS.—At the close of the voluntary ne-
gotiation proceedings, the Copyright Royalty 
Judges shall, if further proceedings under this 
chapter are necessary, determine whether and to 
what extent paragraphs (4) and (5) will apply 
to the parties. 
‘‘(4) SMALL CLAIMS PROCEDURE IN DISTRIBU-
TION PROCEEDINGS.—
‘‘(A) IN
GENERAL.—If, in a proceeding 
under this chapter to determine the distribution 
of royalties, a participant in the proceeding as-
serts that the contested amount of the claim is 
$10,000 or less, the Copyright Royalty Judges 
shall decide the controversy on the basis of the 
filing in writing of the initial claim, the initial 
response by any opposing participant, and one
additional response by each such party. The par-
ticipant asserting the claim shall not be required 
to pay the filing fee under paragraph (2). 
‘‘(B) BAD FAITH INFLATION OF CLAIM.—If 
the Copyright Royalty Judges determine that a 
participant asserts in bad faith an amount in 
controversy in excess of $10,000 for the purpose 
of avoiding a determination under the procedure 
set forth in subparagraph (A), the Copyright 
Royalty Judges shall impose a fine on that par-
ticipant in an amount not to exceed the dif-
ference between the actual amount distributed 
and the amount asserted by the participant. 
‘‘(5) PAPER PROCEEDINGS IN RATEMAKING PRO-
CEEDINGS.—The Copyright Royalty Judges in pro-
ceedings under this chapter to determine royalty rates 
may decide, sua sponte or upon motion of a partici-
pant, to determine issues on the basis of initial filings 
in writing, initial responses by any opposing partici-
pant, and one additional response by each such par-
ticipant. Prior to making such decision to proceed on 
such a paper record only, the Copyright Royalty 
Judges shall offer to all parties to the proceeding the 
opportunity to comment on the decision. The proce-
dure under this paragraph—
‘‘(A) shall be applied in cases in which 
there is no genuine issue of material fact, there 
is no need for evidentiary hearings, and all par-
ticipants in the proceeding agree in writing to 
the procedure; and 
‘‘(B) may be applied under such other cir-
cumstances as the Copyright Royalty Judges 
consider appropriate. 
‘‘(6) REGULATIONS.—
‘‘(A) IN GENERAL.—The Copyright Royalty 
Judges may issue regulations to carry out their 
functions under this title. Not later than 120 
days after Copyright Royalty Judges or interim 
Copyright Royalty Judges, as the case may be, 
are first appointed after the enactment of the 
Copyright Royalty and Distribution Reform Act 
of 2003, such judges shall issue regulations to 
govern proceedings under this chapter. 
‘‘(B) INTERIM REGULATIONS.—Until regu-
lations are adopted under subparagraph (A), the 
Copyright Royalty Judges shall apply the regu-
lations in effect under this chapter on the day 
before the effective date of the Copyright Royalty 
and Distribution Reform Act of 2003, to the ex-
tent such regulations are not inconsistent with
this chapter, except that functions carried out 
under such regulations by the Librarian of Con-
gress, the Register of Copyrights, or copyright ar-
bitration royalty panels that, as of such date of 
enactment, are to be carried out by the Copy-
right Royalty Judges under this chapter, shall 
be carried out by the Copyright Royalty Judges 
under such regulations. 
‘‘(C) REQUIREMENTS.—Regulations issued 
under subparagraph (A) shall include the fol-
lowing: 
‘‘(i) The written direct statements of 
all participants in a proceeding under 
paragraph (2) shall be filed by a date speci-
fied by the Copyright Royalty Judges, 
which may be no earlier than four months, 
and no later than five months, after the end 
of the voluntary negotiation period under 
paragraph (3). Notwithstanding the pre-
ceding sentence, a participant in a pro-
ceeding may, within 15 days after the end 
of the discovery period specified in clause 
(iii), file an amended written direct state-
ment based on new information received 
during the discovery process.
‘‘(ii)(I) Following the submission to 
the Copyright Royalty Judges of written di-
rect statements by the participants in a 
proceeding under paragraph (2), the judges 
shall meet with the participants for the pur-
pose of setting a schedule for conducting 
and completing discovery. Such schedule 
shall be determined by the Copyright Roy-
alty Judges. 
‘‘(II) In this chapter, the term ‘written 
direct statements’ means witness statements, 
testimony, and exhibits to be presented in 
the proceedings, and such other information 
that is necessary to establish terms and 
rates, or the distribution of royalty pay-
ments, as the case may be, as set forth in 
regulations issued by the Copyright Royalty 
Judges.
‘‘(iii) Hearsay may be admitted in 
proceedings under this chapter to the extent 
deemed appropriate by the Copyright Roy-
alty Judges. 
‘‘(iv) Discovery in such proceedings 
shall be permitted for a period of 60 days, 
except for discovery ordered by the Copy-
right Royalty Judges in connection with the 
resolution of motions, orders and disputes 
pending at the end of such period.
‘‘(v) Any participant under paragraph 
(2) in a proceeding under this chapter to 
determine royalty rates may, upon written 
notice, seek discovery of information and 
materials relevant and material to the pro-
ceeding. Any objection to any such discovery 
request shall be resolved by a motion or re-
quest to compel discovery made to the Copy-
right Royalty Judges. Each motion or re-
quest to compel discovery shall be deter-
mined by the Copyright Royalty Judges, or 
by a Copyright Royalty Judge when per-
mitted under subsection (a)(2), who may 
approve the request only if the evidence that 
would be produced is relevant and material. 
A Copyright Royalty Judge may refuse a 
request to compel discovery of evidence that 
has been found to be relevant and material, 
only upon good cause shown. For purposes 
of the preceding sentence, the basis for ‘good 
cause’ may only be that—
‘‘(I) the discovery sought is unrea-
sonably cumulative or duplicative, or 
is obtainable from another source that 
is more convenient, less burdensome, or 
less expensive; 
‘‘(II) the participant seeking dis-
covery has had ample opportunity by 
discovery in the action to obtain the 
information sought; or 
‘‘(III) the burden or expense of the 
proposed discovery outweighs its likely 
benefit, taking into account the needs 
and resources of the participants, the 
importance of the issues at stake, and 
the importance of the proposed dis-
covery in resolving the issues. 
‘‘(vi) The rules in effect on the day be-
fore the effective date of the Copyright Roy-
alty and Distribution Reform Act of 2003, 
relating to discovery in proceedings under 
this title to determine the distribution of 
royalty fees, shall continue to apply to such 
proceedings on and after such effective date. 
‘‘(vii) The Copyright Royalty Judges 
may issue subpoenas requiring the produc-
tion of evidence or witnesses, but only if the 
evidence requested to be produced or that 
would be proffered by the witness is relevant 
and material. 
‘‘(viii) The Copyright Royalty Judges 
shall order a settlement conference among 
the participants in the proceeding to facili-
tate the presentation of offers of settlement 
among the participants. The settlement con-
ference shall be held during a 21-day period 
following the end of the discovery period. 
‘‘(c) 
DETERMINATION
OF
COPYRIGHT
ROYALTY 
JUDGES.—
‘‘(1) TIMING.—The Copyright Royalty Judges 
shall issue their determination in a proceeding not 
later than 11 months after the conclusion of the 21-
day settlement conference period under subsection 
(b)(3)(C)(vi), but, in the case of a proceeding to deter-
mine successors to rates or terms that expire on a 
specified date, in no event later than 15 days before 
the expiration of the then current statutory rates and 
terms. 
‘‘(2) REHEARINGS.—
‘‘(A) IN GENERAL.—The Copyright Royalty 
Judges may, in exceptional cases, upon motion
of a participant under subsection (b)(2), order 
a rehearing, after the determination in a pro-
ceeding is issued under paragraph (1), on such 
matters as the Copyright Royalty Judges deter-
mine to be appropriate. 
‘‘(B) TIMING
FOR
FILING
MOTION.—Any 
motion for a rehearing under subparagraph (A) 
may only be filed within 15 days after the date 
on which the Copyright Royalty Judges deliver 
their initial determination concerning rates and 
terms to the participants in the proceeding. 
‘‘(C) PARTICIPATION
BY
OPPOSING
PARTY 
NOT REQUIRED.—In any case in which a rehear-
ing is ordered, any opposing party shall not be 
required to participate in the rehearing. 
‘‘(D) NO NEGATIVE INFERENCE.—No nega-
tive inference shall be drawn from lack of par-
ticipation in a rehearing. 
‘‘(E) CONTINUITY OF RATES AND TERMS.—
(i) If the decision of the Copyright Royalty 
Judges on any motion for a rehearing is not ren-
dered before the expiration of the statutory rates 
and terms that were previously in effect, in the 
case of a proceeding to determine successors to
rates and terms that expire on a specified date, 
then—
‘‘(I) the initial determination of the 
Copyright Royalty Judges that is the sub-
ject of the rehearing motion shall be effective 
as of the day following the date on which 
the rates and terms that were previously in 
effect expire; and 
‘‘(II) in the case of a proceeding under 
section 114(f)(1)(C) or 114(f)(2)(C), royalty 
rates and terms shall, for purposes of sec-
tion 114(f)(4)(B), be deemed to have been 
set at those rates and terms contained in the 
initial determination of the Copyright Roy-
alty Judges that is the subject of the rehear-
ing motion, as of the date of that deter-
mination. 
‘‘(ii) The pendency of a motion for a re-
hearing under this paragraph shall not relieve 
persons obligated to make royalty payments who 
would be affected by the determination on that 
motion from providing the statements of account 
and any reports of use, to the extent required, 
and paying the royalties required under the rel-
evant determination or regulations.
‘‘(iii) Notwithstanding clause (ii), whenever 
royalties described in clause (ii) are paid to a 
person other than the Copyright Office, the entity 
designated by the Copyright Royalty Judges to 
which such royalties are paid by the copyright 
user (and any successor thereto) shall, within 60 
days after the motion for rehearing is resolved 
or, if the motion is granted, within 60 days after 
the rehearing is concluded, return any excess 
amounts previously paid to the extent necessary 
to comply with the final determination of roy-
alty rates by the Copyright Royalty Judges. 
‘‘(3) CONTENTS OF DETERMINATION.—A deter-
mination of the Copyright Royalty Judges shall be 
accompanied by the written record, and shall set forth 
the facts that the Copyright Royalty Judges found rel-
evant to their determination. Among other terms 
adopted in a determination, the Copyright Royalty 
Judges may specify notice and recordkeeping require-
ments of users of the copyrights at issue that apply 
in lieu of those that would otherwise apply under reg-
ulations. 
‘‘(4) CONTINUING JURISDICTION.—The Copyright 
Royalty Judges may amend the determination or the 
regulations issued pursuant to the determination in
order to correct any technical errors in the determina-
tion or to respond to unforeseen circumstances that 
preclude the proper effectuation of the determination. 
‘‘(5) PROTECTIVE ORDER.—The Copyright Roy-
alty Judges may issue such orders as may be appro-
priate to protect confidential information, including 
orders excluding confidential information from the 
record of the determination that is published or made 
available to the public, except that any terms or rates 
of royalty payments or distributions may not be ex-
cluded. 
‘‘(6) PUBLICATION OF DETERMINATION.—The Li-
brarian of Congress shall cause the determination, 
and any corrections thereto, to be published in the 
Federal Register. The Librarian of Congress shall also 
publicize the determination and corrections in such 
other manner as the Librarian considers appropriate, 
including, but not limited to, publication on the 
Internet. The Librarian of Congress shall also make 
the determination, corrections, and the accompanying 
record available for public inspection and copying. 
‘‘(d) JUDICIAL REVIEW.—
‘‘(1) APPEAL.—Any determination of the Copy-
right Royalty Judges under subsection (c) may, with-
in 30 days after the publication of the determination
in the Federal Register, be appealed, to the United 
States Court of Appeals for the District of Columbia 
Circuit, by any aggrieved participant in the pro-
ceeding under subsection (b)(2) who fully participated 
in the proceeding and who would be bound by the de-
termination. If no appeal is brought within that 30-
day period, the determination of the Copyright Roy-
alty Judges shall be final, and the royalty fee or de-
termination with respect to the distribution of fees, as 
the case may be, shall take effect as set forth in para-
graph (2). 
‘‘(2) EFFECT OF RATES.—
‘‘(A) EXPIRATION
ON
SPECIFIED
DATE.—
When this title provides that the royalty rates 
and terms that were previously in effect are to 
expire on a specified date, any adjustment or de-
termination by the Copyright Royalty Judges of 
successor rates and terms for an ensuing statu-
tory license period shall be effective as of the day 
following the date of expiration of the rates and 
terms that were previously in effect, even if the 
determination of the Copyright Royalty Judges 
is rendered on a later date. 
‘‘(B) OTHER CASES.—In cases where rates 
and terms do not expire on a specified date or
have not yet been established, successor or new 
rates or terms shall take effect on the first day 
of the second month that begins after the publica-
tion of the determination of the Copyright Roy-
alty Judges in the Federal Register, except as 
otherwise provided in this title, and the rates 
and terms previously in effect, to the extent ap-
plicable, shall remain in effect until such suc-
cessor rates and terms become effective. 
‘‘(C) OBLIGATION TO MAKE PAYMENTS.—(i) 
The pendency of an appeal under this subsection 
shall not relieve persons obligated to make roy-
alty payments under section 111, 112, 114, 115, 
116, 118, 119, or 1003, who would be affected by 
the determination on appeal, from providing the 
statements of account (and any report of use, to 
the extent required) and paying the royalties re-
quired under the relevant determination or regu-
lations. 
‘‘(ii) Notwithstanding clause (i), whenever 
royalties described in clause (i) are paid to a 
person other than the Copyright Office, the entity 
designated by the Copyright Royalty Judges to 
which such royalties are paid by the copyright 
user (and any successor thereto) shall, within 60
days after the final resolution of the appeal, re-
turn any excess amounts previously paid (and 
interest thereon, if ordered pursuant to para-
graph (3)) to the extent necessary to comply with 
the final determination of royalty rates on ap-
peal. 
‘‘(3) JURISDICTION
OF
COURT.—If the court, 
pursuant to section 706 of title 5, modifies or vacates 
a determination of the Copyright Royalty Judges, the 
court may enter its own determination with respect 
to the amount or distribution of royalty fees and 
costs, and order the repayment of any excess fees, the 
payment of any underpaid fees, and the payment of 
interest pertaining respectively thereto, in accordance 
with its final judgment. The court may also vacate 
the determination of the Copyright Royalty Judges 
and remand the case to the Copyright Royalty Judges 
for further proceedings in accordance with subsection 
(a). 
‘‘(e) ADMINISTRATIVE MATTERS.—
‘‘(1) DEDUCTION OF COSTS OF LIBRARY OF CON-
GRESS AND COPYRIGHT OFFICE FROM FILING FEES.—
‘‘(A) DEDUCTION FROM FILING FEES.—The 
Librarian of Congress may, to the extent not oth-
erwise provided under this title, deduct from the
filing fees collected under subsection (b) for a 
particular proceeding under this chapter the rea-
sonable costs incurred by the Librarian of Con-
gress, the Copyright Office, and the Copyright 
Royalty Judges in conducting that proceeding, 
other than the salaries of the Copyright Royalty 
Judges and the 3 staff members appointed under 
section 802(b).
‘‘(B) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—There are authorized to be appropriated 
such sums as may be necessary to pay the costs 
of proceedings under this chapter not covered by 
the filing fees collected under subsection (b). All 
funds made available pursuant to this subpara-
graph shall remain available until expended. 
‘‘(2) POSITIONS REQUIRED FOR ADMINISTRATION 
OF COMPULSORY LICENSING.—Section 307 of the Leg-
islative Branch Appropriations Act, 1994, shall not 
apply to employee positions in the Library of Con-
gress that are required to be filled in order to carry 
out section 111, 112, 114, 115, 116, 118, or 119 or 
chapter 10. 
‘‘§ 804. Institution of proceedings 
‘‘(a) FILING
OF PETITION.—With respect to pro-
ceedings referred to in paragraphs (1) and (2) of section
801(b) concerning the determination or adjustment of roy-
alty rates as provided in sections 111, 112, 114, 115, 116, 
118, and 1004, during the calendar years specified in the 
schedule set forth in subsection (b), any owner or user of 
a copyrighted work whose royalty rates are specified by this 
title, or are established under this chapter before or after 
the enactment of the Copyright Royalty and Distribution 
Reform Act of 2003, may file a petition with the Copyright 
Royalty Judges declaring that the petitioner requests a de-
termination or adjustment of the rate. The Copyright Roy-
alty Judges shall make a determination as to whether the 
petitioner has such a significant interest in the royalty rate 
in which a determination or adjustment is requested. If the 
Copyright Royalty Judges determine that the petitioner has 
such a significant interest, the Copyright Royalty Judges 
shall cause notice of this determination, with the reasons 
therefor, to be published in the Federal Register, together 
with the notice of commencement of proceedings under this 
chapter. With respect to proceedings under paragraph (1) 
of section 801(b) concerning the determination or adjust-
ment of royalty rates as provided in sections 112 and 114, 
during the calendar years specified in the schedule set forth 
in subsection (b), the Copyright Royalty Judges shall cause 
notice of commencement of proceedings under this chapter
to be published in the Federal Register as provided in sec-
tion 803(b)(1)(A). 
‘‘(b) TIMING OF PROCEEDINGS.—
‘‘(1) SECTION 111 PROCEEDINGS.—(A) A petition 
described in subsection (a) to initiate proceedings 
under section 801(b)(2) concerning the adjustment of 
royalty rates under section 111 to which subpara-
graph (A) or (D) of section 801(b)(2) applies may be 
filed during the year 2004 and in each subsequent 
fifth calendar year. 
‘‘(B) In order to initiate proceedings under sec-
tion 801(b)(2) concerning the adjustment of royalty 
rates under section 111 to which subparagraph (B) or 
(C) of section 801(b)(2) applies, within 12 months 
after an event described in either of those subsections, 
any owner or user of a copyrighted work whose roy-
alty rates are specified by section 111, or by a rate 
established under this chapter before or after the en-
actment of the Copyright Royalty and Distribution 
Reform Act of 2003, may file a petition with the 
Copyright Royalty Judges declaring that the peti-
tioner requests an adjustment of the rate. The Copy-
right Royalty Judges shall then proceed as set forth 
in subsection (a) of this section. Any change in roy-
alty rates made under this chapter pursuant to this
subparagraph may be reconsidered in the year 2005, 
and each fifth calendar year thereafter, in accordance 
with the provisions in section 801(b)(3)(B) or (C), as 
the case may be. A petition for adjustment of rates 
under section 11(d)(1)(B) as a result of a change is 
the rules and regulations of the Federal Communica-
tions Commission shall set forth the change on which 
the petition is based. 
‘‘(2) CERTAIN SECTION 112 PROCEEDINGS.—Pro-
ceedings under this chapter shall be commenced in the 
year 2007 to determine reasonable terms and rates of 
royalty payments for the activities described in sec-
tion 112(e)(1) relating to the limitation on exclusive 
rights specified by section 114(d)(1)(C)(iv), to become 
effective on January 1, 2009. Such proceedings shall 
be repeated in each subsequent fifth calendar year. 
‘‘(3) SECTION 114 AND CORRESPONDING 112 PRO-
CEEDINGS.—
‘‘(A) 
FOR
ELIGIBLE
NONSUBSCRIPTION 
SERVICES AND NEW SUBSCRIPTION SERVICES.—
Proceedings under this chapter shall be com-
menced as soon as practicable after the effective 
date of the Copyright Royalty and Distribution 
Reform Act of 2003 to determine reasonable 
terms and rates of royalty payments under sec-
tions 114 and 112 for the activities of eligible 
nonsubscription transmission services and new 
subscription services, to be effective for the period 
beginning on January 1, 2006, and ending on 
December 31, 2010. Such proceedings shall next 
be commenced in January 2009 to determine 
reasonable terms and rates of royalty payments, 
to become effective on January 1, 2011. There-
after, such proceedings shall be repeated in each 
subsequent fifth calendar year. 
‘‘(B) FOR PREEXISTING SUBSCRIPTION AND 
SATELLITE DIGITAL AUDIO RADIO SERVICES.—
Proceedings under this chapter shall be com-
menced in January 2006 to determine reasonable 
terms and rates of royalty payments under sec-
tions 114 and 112 for the activities of pre-
existing subscription services, to be effective dur-
ing the period beginning on January 1, 2008, 
and ending on December 31, 2012, and pre-
existing satellite digital audio radio services, to 
be effective during the period beginning on Janu-
ary 1, 2007, and ending on December 31, 2012. 
Such proceedings shall next be commenced in 
2011 to determine reasonable terms and rates of 
royalty payments, to become effective on Janu-
ary 1, 2013. Thereafter, such proceedings shall be 
repeated in each subsequent fifth calendar year. 
‘‘(C)(i) Notwithstanding any other provi-
sion of this chapter, this subparagraph shall gov-
ern proceedings commenced pursuant to sections 
114(f)(1)(C) and 114(f)(2)(C) concerning new 
types of services. 
‘‘(ii) Not later than 30 days after a petition 
to determine rates and terms for a new type of 
service that is filed by any copyright owner of 
sound recordings, or such new type of service, in-
dicating that such new type of service is or is 
about to become operational, the Copyright Roy-
alty Judges shall issue a notice for a proceeding 
to determine rates and terms for such service. 
‘‘(iii) The proceeding shall follow the sched-
ule set forth in such subsections (b), (c), and (d) 
of section 803, except that—
‘‘(I) the determination shall be issued 
by not later than 24 months after the publi-
cation of the notice under clause (ii); and 
‘‘(II) the decision shall take effect as 
provided in subsections (c)(2) and (d)(2) of 
section 803 and section 114(f)(4)(B)(ii) and 
(C).
‘‘(iv) The rates and terms shall remain in 
effect for the period set forth in section 
114(f)(1)(C) or 114(f)(2)(C), as the case may be. 
‘‘(4) SECTION 115 PROCEEDINGS.—A petition de-
scribed in subsection (a) to initiate proceedings under 
section 801(b)(1) concerning the adjustment or deter-
mination of royalty rates as provided in section 115 
may be filed in the year 2006 and in each subsequent 
fifth calendar year, or at such other times as the par-
ties have agreed under section 115(c)(3)(B) and (C). 
‘‘(5) SECTION 116 PROCEEDINGS.—(A) A petition 
described in subsection (a) to initiate proceedings 
under section 801(b) concerning the determination of 
royalty rates and terms as provided in section 116 
may be filed at any time within 1 year after nego-
tiated licenses authorized by section 116 are termi-
nated 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 per-
mission to use a quantity of musical works not sub-
stantially smaller than the quantity of such works 
performed on coin-operated phonorecord players dur-
ing the 1-year period ending March 1, 1989, the
Copyright Royalty Judges shall, upon petition filed 
under paragraph (1) within 1 year after such termi-
nation or expiration, commence a proceeding to 
promptly establish an interim royalty rate or rates 
for the public performance by means of a coin-oper-
ated phonorecord player of nondramatic musical 
works embodied in phonorecords which had been sub-
ject to the terminated or expired negotiated 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 Copyright Roy-
alty Judges, in accordance with section 803, to adjust 
the royalty rates applicable to such works, or until 
superseded by a new negotiated license agreement, as 
provided in section 116(b).
‘‘(6) SECTION 118 PROCEEDINGS.—A petition de-
scribed in subsection (a) to initiate proceedings under 
section 801(b)(1) concerning the determination of rea-
sonable terms and rates of royalty payments as pro-
vided in section 118 may be filed in the year 2006 
and in each subsequent fifth calendar year. 
‘‘(7) SECTION
1004
PROCEEDINGS.—A petition 
described in subsection (a) to initiate proceedings 
under section 801(b)(1) concerning the adjustment of
reasonable royalty rates under section 1004 may be 
filed as provided in section 1004(a)(3). 
‘‘(8) PROCEEDINGS CONCERNING DISTRIBUTION 
OF
ROYALTY
FEES.—With respect to proceedings 
under section 801(b)(3) concerning the distribution of 
royalty fees in certain circumstances under section 
111, 116, 119, or 1007, the Copyright Royalty Judges 
shall, upon a determination that a controversy exists 
concerning such distribution, cause to be published in 
the Federal Register notice of commencement of pro-
ceedings under this chapter. 
‘‘§ 805. General rule for voluntarily negotiated agree-
ments 
‘‘Any rates or terms under this title that—
‘‘(1) are agreed to by participants to a pro-
ceeding under section 803(b)(2), 
‘‘(2) are adopted by the Copyright Royalty 
Judges as part of a determination under this chapter, 
and 
‘‘(3) are in effect for a period shorter than would 
otherwise apply under a determination pursuant to 
this chapter, 
shall remain in effect for such period of time as would other-
wise apply under such determination, except that the Copy-
right Royalty Judges shall adjust the rates pursuant to the
voluntary negotiations to reflect national monetary infla-
tion during the additional period the rates remain in ef-
fect.’’. 
(b) CONFORMING AMENDMENT.—The table of chapters 
for title 17, United States Code, is amended by striking the 
item relating to chapter 8 and inserting the following:
‘‘8. Proceedings by Copyright Royalty Judges ...........................
801’’.
SEC. 4. DEFINITION. 
Section 101 is amended by inserting after the defini-
tion of ‘‘copies’’ the following: 
‘‘A ‘Copyright Royalty Judge’ is a Copyright 
Royalty Judge appointed under section 802 of this 
title, and includes any individual serving as an in-
terim Copyright Royalty Judge under such section.’’. 
SEC. 5. TECHNICAL AMENDMENTS. 
(a) CABLE RATES.—Section 111(d) is amended—
(1) in paragraph (2), in the second sentence, by 
striking ‘‘a copyright arbitration royalty panel’’ and 
inserting ‘‘the 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’’; 
(B) in subparagraph (B)—
(i) in the first sentence, by striking 
‘‘Librarian of Congress shall, upon the rec-
ommendation of the Register of Copy-
rights,’’ and inserting ‘‘Copyright Royalty 
Judges shall’’; 
(ii) in the second sentence, by striking 
‘‘Librarian 
determines’’ 
and 
inserting 
‘‘Copyright Royalty Judges determine’’; and 
(iii) in the third sentence—
(I) by striking ‘‘Librarian’’ each 
place it appears and inserting ‘‘Copy-
right Royalty Judges’’; and 
(II) by striking ‘‘convene a copy-
right arbitration royalty panel’’ and 
inserting ‘‘conduct a proceeding’’; and 
(C) in subparagraph (C), by striking ‘‘Li-
brarian of Congress’’ and inserting ‘‘Copyright 
Royalty Judges’’.
(b) EPHEMERAL RECORDINGS.—Section 112(e) is 
amended—
(1) in paragraph (3)—
(A) by amending the first sentence to read 
as follows: ‘‘Voluntary negotiation proceedings 
initiated pursuant to section 804(a) for the pur-
pose of determining reasonable terms and rates 
of royalty payments for the activities specified 
by paragraph (1) shall cover the 5-year period
beginning on January 1 of the second year fol-
lowing the year in which the proceedings are 
commenced, or such other period as the parties 
may agree.’’; and 
(B) in the third sentence, by striking ‘‘Li-
brarian of Congress’’ and inserting ‘‘Copyright 
Royalty Judges’’; 
(2) in paragraph (4)—
(A) by amending the first sentence to read 
as follows: ‘‘In the absence of license agreements 
negotiated under paragraphs (2) and (3), the 
Copyright Royalty Judges shall commence a pro-
ceeding pursuant to chapter 8 to determine and 
publish in the Federal Register a schedule of rea-
sonable rates and terms which, subject to para-
graph (5), shall be binding on all copyright own-
ers of sound recordings and transmitting organi-
zations entitled to a statutory license under this 
subsection during the 5-year period specified in 
paragraph (3), or such other period as the par-
ties may agree.’’; 
(B) by striking ‘‘copyright arbitration roy-
alty panel’’ each subsequent place it appears and 
inserting ‘‘Copyright Royalty Judges’’;
(C) in the fourth sentence, by striking ‘‘its 
decision’’ and inserting ‘‘their decision’’; and 
(D) in the last sentence, by striking ‘‘Li-
brarian of Congress’’ and inserting ‘‘Copyright 
Royalty Judges’’; 
(3) in paragraph (5), by striking ‘‘or decision by 
the Librarian of Congress’’ and inserting ‘‘, decision 
by the Librarian of Congress, or determination by the 
Copyright Royalty Judges’’;
(4) by striking paragraph (6) and redesignating 
paragraphs (7), (8), and (9), as paragraphs (6), (7), 
and (8), respectively; and 
(5) in paragraph (6)(A), as so redesignated, by 
striking ‘‘Librarian of Congress’’ and inserting 
‘‘Copyright Royalty Judges’’. 
(c) SCOPE OF EXCLUSIVE RIGHTS IN SOUND RECORD-
INGS.—Section 114(f) is amended—
(1) in paragraph (1)—
(A) in subparagraph (A)—
(i) by amending the first sentence to 
read as follows: ‘‘Voluntary negotiation pro-
ceedings initiated pursuant to section 
804(a) for the purpose of determining rea-
sonable terms and rates of royalty payments 
for subscription transmissions by pre-
existing subscription services and trans-
missions by preexisting satellite digital 
audio radio services shall cover the 5-year 
period beginning on January 1 of the year 
following the second year in which the pro-
ceedings are commenced, except where dif-
ferential transitional periods are provided 
in section 804(b)(3), or such other period as 
the parties may agree.’’; and 
(ii) in the third sentence, by striking 
‘‘Librarian of Congress’’ and inserting 
‘‘Copyright Royalty Judges’’; 
(B) in subparagraph (B)—
(i) by amending the first sentence to 
read as follows: ‘‘In the absence of license 
agreements negotiated under subparagraph 
(A), the Copyright Royalty Judges shall 
commence a proceeding pursuant to chapter 
8 to determine and publish in the Federal 
Register a schedule of rates and terms 
which, subject to paragraph (3), shall be 
binding on all copyright owners of sound 
recordings and entities performing sound 
recordings affected by this paragraph dur-
ing the 5-year period specified in subpara-
graph (A), or such other date as the parties 
may agree.’’; and 
(ii) in the second sentence, by striking 
‘‘copyright arbitration royalty panel’’ and 
inserting ‘‘Copyright Royalty Judges’’; and
(C) by amending subparagraph (C) to read 
as follows: 
‘‘(C) The procedures under subparagraphs (A) 
and (B) also shall be initiated pursuant to a petition 
filed by any copyright owners of sound recordings, 
any preexisting subscription services, or any pre-
existing satellite digital audio radio services indi-
cating that a new type of subscription digital audio 
transmission service on which sound recordings are 
performed is or is about to become operational, for the 
purpose of determining reasonable terms and rates of 
royalty payments with respect to such new type of 
transmission service for the period beginning with the 
inception of such new type of service and ending on 
the date on which the royalty rates and terms for sub-
scription digital audio transmission services most re-
cently determined under subparagraph (A) or (B) 
and chapter 8 expire, or such other period as the par-
ties may agree.’’; 
(2) in paragraph (2)—
(A) in subparagraph (A)—
(i) by amending the first sentence to 
read as follows: ‘‘Voluntary negotiation pro-
ceedings initiated pursuant to section 
804(a) for the purpose of determining rea-
sonable terms and rates of royalty payments 
for public performances of sound recordings 
by means of eligible nonsubscription trans-
missions and transmissions by new sub-
scription services specified by subsection 
(d)(2) shall cover the 5-year period begin-
ning on January 1 of the second year fol-
lowing the year in which the proceedings 
are commenced, except where different tran-
sitional periods are provided in section 
804(b)(3)(A), or such other period as the 
parties may agree.’’; and 
(ii) in the third sentence, by striking 
‘‘Librarian of Congress’’ and inserting 
‘‘Copyright Royalty Judges’’; 
(B) in subparagraph (B)—
(i) by amending the first sentence to 
read as follows: ‘‘In the absence of license 
agreements negotiated under subparagraph 
(A), the Copyright Royalty Judges shall
commence a proceeding pursuant to chapter 
8 to determine and publish in the Federal 
Register a schedule of rates and terms 
which, subject to paragraph (3), shall be 
binding on all copyright owners of sound 
recordings and entities performing sound 
recordings affected by this paragraph dur-
ing the period specified in subparagraph 
(A), or such other period as the parties may 
agree.’’; and 
(ii) by striking ‘‘copyright arbitration 
royalty panel’’ each subsequent place it ap-
pears and inserting ‘‘Copyright Royalty 
Judges’’; and
(C) by amending subparagraph (C) to read 
as follows: 
‘‘(C) The procedures under subparagraphs (A) 
and (B) shall also be initiated pursuant to a petition 
filed by any copyright owners of sound recordings or 
any eligible nonsubscription service or new subscrip-
tion service indicating that a new type of eligible 
nonsubscription service or new subscription service on 
which sound recordings are performed is or is about 
to become operational, for the purpose of determining 
reasonable terms and rates of royalty payments with
respect to such new type of service for the period be-
ginning with the inception of such new type of service 
and ending on the date on which the royalty rates 
and terms for preexisting subscription digital audio 
transmission services or preexisting satellite digital 
radio audio services, as the case may be, most re-
cently determined under subparagraph (A) or (B) 
and chapter 8 expire, or such other period as the par-
ties may agree.’’;
(3) in paragraph (3), by striking ‘‘or decision by 
the Librarian of Congress’’ and inserting ‘‘, decision 
by the Librarian of Congress, or determination by the 
Copyright Royalty Judges’’; and 
(4) in paragraph (4), by striking ‘‘Librarian of 
Congress’’ each place it appears and inserting ‘‘Copy-
right Royalty Judges’’.
(d) PHONORECORDS
OF
NONDRAMATIC
MUSICAL 
WORKS.—Section 115(c)(3) is amended—
(1) in subparagraph (A)(ii), by striking ‘‘(F)’’ 
and inserting ‘‘(E)’’; 
(2) in subparagraph (B)—
(A) by striking ‘‘under this paragraph’’ and 
inserting ‘‘under this section; and
(B) by striking ‘‘subparagraphs (B) through 
(F)’’ and inserting ‘‘this subparagraph and sub-
paragraphs (B) through (E)’’; 
(3) in subparagraph (C)—
(A) by amending the first sentence to read 
as follows: ‘‘Voluntary negotiation proceedings 
initiated pursuant to a petition filed under sec-
tion 804(a) for the purpose of determining rea-
sonable terms and rates of royalty payments for 
the activities specified by this section shall cover 
the period beginning with the effective date of 
such terms and rates, but not earlier than Janu-
ary 1 of the second year following the year in 
which the petition is filed, and ending on the ef-
fective date of successor terms and rates, or such 
other period as the parties may agree.’’; and 
(B) in the third sentence, by striking ‘‘Li-
brarian of Congress’’ and inserting ‘‘Copyright 
Royalty Judges’’; 
(4) in subparagraph (D)—
(A) by amending the first sentence to read 
as follows: ‘‘In the absence of license agreements 
negotiated under subparagraphs (B) and (C), the 
Copyright Royalty Judges shall commence pro-
ceedings pursuant to chapter 8 to determine and
publish in the Federal Register a schedule of 
rates and terms which, subject to subparagraph 
(E), shall be binding on all copyright owners of 
nondramatic musical works and persons entitled 
to obtain a compulsory license under subsection 
(a)(1) during the period specified in subpara-
graph (C) or such other period as may be deter-
mined pursuant 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 last sentence, by striking ‘‘Li-
brarian of Congress’’ and inserting ‘‘Copyright 
Royalty Judges’’; 
(5) in subparagraph (E)—
(A) in clause (i)—
(i) in the first sentence, by striking 
‘‘the Librarian of Congress’’ and inserting 
‘‘a copyright arbitration royalty panel, the 
Librarian of Congress, or the Copyright 
Royalty Judges’’; 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 
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 ‘‘the Li-
brarian of Congress:’’ and all that follows 
through the end of the sentence and inserting ‘‘a 
copyright arbitration royalty panel, the Librar-
ian of Congress, or the Copyright Royalty Judge, 
if copies of such agreements are filed with the 
Copyright Royalty Judges within 30 days of exe-
cution 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 
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 
(C) by striking ‘‘a copyright arbitration 
royalty panel’’ and inserting ‘‘the Copyright 
Royalty Judges’’; 
(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’’ 
and inserting ‘‘Copyright Royalty Judges’’; 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 
(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, subject to 
any 
distributions 
made 
under 
section 
801(b)(3).’’.
(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 
(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 
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 
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.’’.
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 interim Copyright Royalty Judges 
under section 802(d) of title 17, United States Code, as 
amended by this Act, within 90 days after such date of en-
actment to carry out the functions of the Copyright 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 amended by this Act, 
have not been appointed before the end of that 90-day pe-
riod. 
(b) TRANSITION PROVISIONS.—
(1) IN GENERAL.—Subject to paragraph (2), the 
amendments made by this Act shall not affect any
proceedings commenced, petitions filed, or voluntary 
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 continue, deter-
minations 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 agreements entered into 
shall remain in effect as if this Act had not been en-
acted. 
(2) 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 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 until such