IIB 
108TH CONGRESS 
2D SESSION 
H. R. 1417
IN THE SENATE OF THE UNITED STATES 
MARCH 4, 2004
Received; read twice and referred to the Committee on the Judiciary 
AN ACT 
To amend title 17, United States Code, to replace copyright 
arbitration royalty panels with Copyright Royalty 
Judges, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
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‘‘(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 
adjustment of the copyright royalty rates under sec-
tion 111 solely in accordance with the following pro-
visions: 
‘‘(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 
service of providing secondary trans-
missions to maintain the real constant dol-
lar 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 
national monetary inflation, no change in
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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 fac-
tor, whether the industry has been restrained 
by subscriber rate regulating authorities from 
increasing the rates for the basic service of pro-
viding secondary transmissions. 
‘‘(B) In the event that the rules and regu-
lations of the Federal Communications Com-
mission 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 transmit-
ters of such signals, the royalty rates estab-
lished by section 111(d)(1)(B) may be adjusted 
to insure that the rates for the additional dis-
tant signal equivalents resulting from such car-
riage are reasonable in the light of the changes 
effected by the amendment to such rules and
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regulations. In determining the reasonableness 
of rates proposed following an amendment of 
Federal Communications Commission rules and 
regulations, the Copyright Royalty Judges shall 
consider, among other factors, the economic im-
pact on copyright owners and users; except that 
no adjustment in royalty rates shall be made 
under this subparagraph with respect to any 
distant signal equivalent or fraction thereof rep-
resented 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 regu-
lations of the Federal Communications 
Commission, 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 Commu-
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nications Commission with respect to syn-
dicated 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 reasonable in light of the 
changes to such rules and regulations, 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 sub-
ject to adjustment. 
‘‘(3)(A) 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 Roy-
alty Judges have found that the distribution of such 
fees is not subject to controversy.
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‘‘(B) In cases where the Copyright Royalty 
Judges determine that controversy exists, the Copy-
right Royalty Judges shall determine the distribu-
tion of such fees, including partial distributions, in 
accordance with section 111, 119, or 1007, as the 
case may be. 
‘‘(C) the Copyright Royalty Judges shall make 
a partial distribution of such fees during the pend-
ency of the proceeding under subparagraph (B) if all 
participants under section 803(b)(2) in the pro-
ceeding that are entitled to receive those fees that 
are to be partially distributed—
‘‘(i) agree to such partial distribution; 
‘‘(ii) sign an agreement obligating them to 
return any excess amounts to the extent nec-
essary to comply with the final determination 
on the distribution of the fees made under sub-
paragraph (B); and 
‘‘(iii) file the agreement with the Copyright 
Royalty Judges. 
‘‘(D) The Copyright Royalty Judges and any 
other officer or employee acting in good faith in dis-
tributing funds under subparagraph (C) shall not be 
held liable for the payment of any excess fees under 
subparagraph (C). The Copyright Royalty Judges
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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 peti-
tions as provided in section 804 and petitions to par-
ticipate 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 sec-
tion 1010. 
‘‘(7)(A) To adopt as the basis for statutory 
terms and rates or as a basis for the distribution of 
statutory royalty payments, an agreement con-
cerning 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
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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 
decline to adopt the agreement as the basis for 
statutory terms and rates or as the basis for 
the distribution of statutory royalty payments, 
as the case may be, if any other participant de-
scribed 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 royalty 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
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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 
making 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 pro-
ceedings under this chapter. 
‘‘(e) LOCATION IN LIBRARY OF CONGRESS.—The of-
fices 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 at-
torney who has at least 7 years of legal experience. The 
Chief Copyright Royalty Judge shall have at least 5 years 
of experience in adjudications, arbitrations, or court trials. 
Of the other two Copyright Royalty Judges, one shall have 
significant 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 indi-
vidual 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.
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‘‘(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 individual serving that term may continue to 
serve until a successor 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
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that individual was appointed shall be appointed for 
the remainder of that term. 
‘‘(2) INCAPACITY.—In the case in which a 
Copyright Royalty Judge is temporarily unable to 
perform his or her duties, the Librarian of Congress 
may appoint an interim Copyright Royalty Judge to 
perform such duties during the period of such inca-
pacity. 
‘‘(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 receive 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 pursuant to its authority under section 
5376(b)(1) of title 5. 
‘‘(2) STAFF MEMBERS.—Of the staff members 
appointed under subsection (b)—
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‘‘(A) the rate of pay of one staff member 
shall be not more than the basic rate of pay 
payable 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 
member 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 determina-
tions concerning adjustments and determina-
tions of copyright royalty rates and terms, the 
distribution of copyright royalties, the accept-
ance or rejection of royalty claims, rate adjust-
ment petitions, and petitions to participate, and 
in issuing other rulings under this title, except
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that the Copyright Royalty Judges may consult 
with the Register of Copyrights on any matter 
other than a question of fact. Any such con-
sultations 
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-
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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 deter-
mined 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 
Copyright Royalty Judge and such regulations 
require documentation to establish the cause of 
such sanction or removal, the Copyright Roy-
alty Judge may receive an appraisal related 
specifically to the cause of the sanction or re-
moval. 
‘‘(g) INCONSISTENT DUTIES BARRED.—No Copy-
right Royalty Judge may undertake duties inconsistent
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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 
subsection (h), misconduct, neglect of duty, or any dis-
qualifying 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 
carrying out the purposes set forth in section 801.
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The Copyright Royalty Judges shall act in accord-
ance with regulations issued by the Copyright Roy-
alty Judges and on the basis of a fully documented 
written record, prior decisions of the Copyright Roy-
alty Tribunal, prior copyright arbitration royalty 
panel determinations, rulings by the Librarian of 
Congress before the effective date of the Copyright 
Royalty and Distribution Reform Act of 2004, prior 
determinations of Copyright Royalty Judges under 
this chapter, and decisions of the court in appeals 
under this chapter before, on, or after such effective 
date. Any participant in a proceeding under sub-
section (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 pre-
side over hearings in proceedings under this chapter 
en banc. The Chief Copyright Royalty Judge may 
designate a Copyright Royalty Judge to preside indi-
vidually over such collateral and administrative pro-
ceedings, and over such proceedings under para-
graphs (1) through (5) of subsection (b), as the 
Chief Judge considers appropriate. 
‘‘(3) DETERMINATIONS.—Final determinations 
of the Copyright Royalty Judges in proceedings
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under this chapter shall be made by majority vote. 
A Copyright Royalty Judge dissenting from the ma-
jority on any determination under this chapter may 
issue his or her dissenting opinion, which shall be in-
cluded 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 sec-
tion 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 
published 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 
notice of commencement of a proceeding, under
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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 pe-
titions to participate at any time up to the date 
that is 90 days before the date on which par-
ticipants in the proceeding are to file their writ-
ten direct statements. 
‘‘(B) PETITIONS TO PARTICIPATE.—Each 
petition to participate in a proceeding shall de-
scribe the petitioner’s interest in the subject 
matter of the proceeding. Parties with similar 
interests may file a single petition to partici-
pate. 
‘‘(2) PARTICIPATION IN GENERAL.—Subject to 
paragraph (4), a person may participate in a pro-
ceeding under this chapter, including through the 
submission of briefs or other information, only if—
‘‘(A) that person has filed a petition to 
participate in accordance with paragraph (1) 
(either individually or as a group under para-
graph (1)(B)), together with a filing fee of 
$150;
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‘‘(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 
another participant in the proceeding, that the 
person lacks a significant interest in the pro-
ceeding. 
‘‘(3) VOLUNTARY NEGOTIATION PERIOD.—
‘‘(A) IN
GENERAL.—Promptly after the 
date for filing of petitions to participate in a 
proceeding, 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 
negotiation proceedings, the Copyright Royalty 
Judges shall, if further proceedings under this 
chapter are necessary, determine whether and
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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 
participant asserting the claim shall not be re-
quired 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 pur-
pose of avoiding a determination under the pro-
cedure set forth in subparagraph (A), the Copy-
right Royalty Judges shall impose a fine on 
that participant in an amount not to exceed the 
difference between the actual amount distrib-
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uted and the amount asserted by the partici-
pant. 
‘‘(5) PAPER
PROCEEDINGS
IN
RATEMAKING 
PROCEEDINGS.—The Copyright Royalty Judges in 
proceedings under this chapter to determine royalty 
rates may decide, sua sponte or upon motion of a 
participant, to determine issues on the basis of ini-
tial filings in writing, initial responses by any oppos-
ing participant, and one additional response by each 
such participant. Prior to making such decision to 
proceed on such a paper record only, the Copyright 
Royalty Judges shall offer to all parties to the pro-
ceeding the opportunity to comment on the decision. 
The procedure 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 Roy-
alty Judges may issue regulations to carry out
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their functions under this title. Not later than 
120 days after Copyright Royalty Judges or in-
terim Copyright Royalty Judges, as the case 
may be, are first appointed after the enactment 
of the Copyright Royalty and Distribution Re-
form Act of 2004, such judges shall issue regu-
lations to govern proceedings under this chap-
ter. 
‘‘(B) INTERIM REGULATIONS.—Until regu-
lations are adopted under subparagraph (A), 
the Copyright Royalty Judges shall apply the 
regulations in effect under this chapter on the 
day before the effective date of the Copyright 
Royalty and Distribution Reform Act of 2004, 
to the extent such regulations are not incon-
sistent with this chapter, except that functions 
carried out under such regulations by the Li-
brarian of Congress, the Register of Copyrights, 
or copyright arbitration royalty panels that, as 
of such date of enactment, are to be carried out 
by the Copyright Royalty Judges under this 
chapter, shall be carried out by the Copyright 
Royalty Judges under such regulations.
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‘‘(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 spec-
ified 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 
preceding 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 
direct statements by the participants in a 
proceeding 
under 
paragraph 
(2), 
the 
judges shall meet with the participants for 
the purpose of setting a schedule for con-
ducting and completing discovery. Such
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schedule shall be determined by the Copy-
right Royalty Judges. 
‘‘(II) In this chapter, the term ‘writ-
ten direct statements’ means witness state-
ments, testimony, and exhibits to be pre-
sented in the proceedings, and such other 
information that is necessary to establish 
terms and rates, or the distribution of roy-
alty payments, as the case may be, as set 
forth in regulations issued by the Copy-
right Royalty Judges.
‘‘(iii) Hearsay may be admitted in 
proceedings under this chapter to the ex-
tent deemed appropriate by the Copyright 
Royalty 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 dis-
putes 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
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materials relevant and material to the pro-
ceeding. Any objection to any such dis-
covery request shall be resolved by a mo-
tion or request to compel discovery made 
to the Copyright Royalty Judges. Each 
motion or request to compel discovery shall 
be determined by the Copyright Royalty 
Judges, or by a Copyright Royalty Judge 
when permitted 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 rel-
evant and material, only upon good cause 
shown. For purposes of the preceding sen-
tence, the basis for ‘good cause’ may only 
be that—
‘‘(I) the discovery sought is un-
reasonably cumulative or duplicative, 
or is obtainable from another source 
that is more convenient, less burden-
some, or less expensive; 
‘‘(II) the participant seeking dis-
covery has had ample opportunity by
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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 partici-
pants, the importance of the issues at 
stake, and the importance of the pro-
posed 
discovery 
in 
resolving 
the 
issues. 
‘‘(vi) The rules in effect on the day 
before the effective date of the Copyright 
Royalty and Distribution Reform Act of 
2004, relating to discovery in proceedings 
under this title to determine the distribu-
tion of royalty fees, shall continue to apply 
to such proceedings on and after such ef-
fective 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.
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‘‘(viii) The Copyright Royalty Judges 
shall order a settlement conference among 
the participants in the proceeding to facili-
tate the presentation of offers of settle-
ment among the participants. The settle-
ment conference shall be held during a 21-
day period following the end of the dis-
covery 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 de-
termine successors to rates or terms that expire on 
a specified date, in no event later than 15 days be-
fore the expiration of the then current statutory 
rates and terms. 
‘‘(2) REHEARINGS.—
‘‘(A) IN GENERAL.—The Copyright Roy-
alty Judges may, in exceptional cases, upon mo-
tion of a participant under subsection (b)(2), 
order a rehearing, after the determination in a 
proceeding is issued under paragraph (1), on
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such matters as the Copyright Royalty Judges 
determine 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 re-
hearing is ordered, any opposing party shall not 
be required to participate in the rehearing. 
‘‘(D) NO NEGATIVE INFERENCE.—No neg-
ative 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 rendered before the expiration of the 
statutory rates and terms that were previously 
in effect, in the case of a proceeding to deter-
mine 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-
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ject of the rehearing motion shall be effec-
tive as of the day following the date on 
which the rates and terms that were pre-
viously 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 section 114(f)(4)(B), be deemed to have 
been set at those rates and terms con-
tained in the initial determination of the 
Copyright Royalty Judges that is the sub-
ject of the rehearing motion, as of the date 
of that determination. 
‘‘(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 relevant determination or regulations. 
‘‘(iii) Notwithstanding clause (ii), whenever 
royalties described in clause (ii) are paid to a 
person other than the Copyright Office, the en-
tity designated by the Copyright Royalty
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Judges to which such royalties are paid by the 
copyright user (and any successor thereto) 
shall, within 60 days after the motion for re-
hearing 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 royalty 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 relevant to their determination. Among other 
terms adopted in a determination, the Copyright 
Royalty Judges may specify notice and record-
keeping requirements of users of the copyrights at 
issue that apply in lieu of those that would otherwise 
apply under regulations. 
‘‘(4) CONTINUING
JURISDICTION.—The Copy-
right Royalty Judges may amend the determination 
or the regulations issued pursuant to the determina-
tion in order to correct any technical errors in the 
determination or to respond to unforeseen cir-
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cumstances 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 excluded. 
‘‘(6) PUBLICATION OF DETERMINATION.—The 
Librarian 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 appro-
priate, including, but not limited to, publication on 
the Internet. The Librarian of Congress shall also 
make the determination, corrections, and the accom-
panying record available for public inspection and 
copying. 
‘‘(d) JUDICIAL REVIEW.—
‘‘(1) APPEAL.—Any determination of the Copy-
right Royalty Judges under subsection (c) may, 
within 30 days after the publication of the deter-
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mination 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 proceeding under subsection (b)(2) who fully 
participated in the proceeding and who would be 
bound by the determination. If no appeal is brought 
within that 30-day period, the determination of the 
Copyright Royalty Judges shall be final, and the 
royalty fee or determination with respect to the dis-
tribution of fees, as the case may be, shall take ef-
fect as set forth in paragraph (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 
determination by the Copyright Royalty Judges 
of successor rates and terms for an ensuing 
statutory 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 Roy-
alty Judges is rendered on a later date. 
‘‘(B) OTHER CASES.—In cases where rates 
and terms do not expire on a specified date or
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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 publi-
cation of the determination of the Copyright 
Royalty 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 sub-
section shall not relieve persons obligated to 
make royalty 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 required under the relevant 
determination or regulations. 
‘‘(ii) Notwithstanding clause (i), whenever 
royalties described in clause (i) are paid to a 
person other than the Copyright Office, the en-
tity designated by the Copyright Royalty 
Judges to which such royalties are paid by the 
copyright user (and any successor thereto)
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shall, within 60 days after the final resolution 
of the appeal, return any excess amounts pre-
viously paid (and interest thereon, if ordered 
pursuant to paragraph (3)) to the extent nec-
essary to comply with the final determination of 
royalty rates on appeal. 
‘‘(3) JURISDICTION OF COURT.—If the court, 
pursuant to section 706 of title 5, modifies or va-
cates 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 ex-
cess fees, the payment of any underpaid fees, and 
the payment of interest pertaining respectively there-
to, in accordance with its final judgment. The court 
may also vacate the determination of the Copyright 
Royalty Judges and remand the case to the Copy-
right Royalty Judges for further proceedings in ac-
cordance with subsection (a). 
‘‘(e) ADMINISTRATIVE MATTERS.—
‘‘(1) DEDUCTION
OF
COSTS
OF
LIBRARY
OF 
CONGRESS
AND
COPYRIGHT
OFFICE
FROM
FILING 
FEES.—
‘‘(A) DEDUCTION
FROM
FILING
FEES.—
The Librarian of Congress may, to the extent
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not otherwise provided under this title, deduct 
from the filing fees collected under subsection 
(b) for a particular proceeding under this chap-
ter the reasonable costs incurred by the Librar-
ian of Congress, the Copyright Office, and the 
Copyright Royalty Judges in conducting that 
proceeding, other than the salaries of the Copy-
right Royalty Judges and the 3 staff members 
appointed under section 802(b).
‘‘(B) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—There are authorized to be appro-
priated such sums as may be necessary to pay 
the costs of proceedings under this chapter not 
covered by the filing fees collected under sub-
section (b). All funds made available pursuant 
to this subparagraph shall remain available 
until expended. 
‘‘(2) POSITIONS
REQUIRED
FOR
ADMINISTRA-
TION OF COMPULSORY LICENSING.—Section 307 of 
the Legislative Branch Appropriations Act, 1994, 
shall not apply to employee positions in the Library 
of Congress that are required to be filled in order 
to carry out section 111, 112, 114, 115, 116, 118, 
or 119 or chapter 10.
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‘‘§ 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 Dis-
tribution Reform Act of 2004, may file a petition with the 
Copyright Royalty Judges declaring that the petitioner re-
quests a determination or adjustment of the rate. The 
Copyright Royalty 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 deter-
mination, with the reasons therefor, to be published in the 
Federal Register, together with the notice of commence-
ment of proceedings under this chapter. With respect to 
proceedings under paragraph (1) of section 801(b) con-
cerning the determination or adjustment of royalty rates 
as provided in sections 112 and 114, during the calendar 
years specified in the schedule set forth in subsection (b),
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the Copyright Royalty Judges shall cause notice of com-
mencement of proceedings under this chapter to be pub-
lished in the Federal Register as provided in section 
803(b)(1)(A). 
‘‘(b) TIMING OF PROCEEDINGS.—
‘‘(1) SECTION 111 PROCEEDINGS.—(A) A peti-
tion described in subsection (a) to initiate pro-
ceedings under section 801(b)(2) concerning the ad-
justment of royalty rates under section 111 to which 
subparagraph (A) or (D) of section 801(b)(2) ap-
plies may be filed during the year 2005 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 royalty rates are specified by section 
111, or by a rate established under this chapter be-
fore or after the enactment of the Copyright Royalty 
and Distribution Reform Act of 2004, may file a pe-
tition with the Copyright Royalty Judges declaring 
that the petitioner requests an adjustment of the 
rate. The Copyright Royalty Judges shall then pro-
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ceed as set forth in subsection (a) of this section. 
Any change in royalty rates made under this chapter 
pursuant to this subparagraph may be reconsidered 
in the year 2005, and each fifth calendar year there-
after, 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 Communications Commission shall set 
forth the change on which the petition is based. 
‘‘(C) Any adjustment of royalty rates under sec-
tion 111 shall take effect as of the first accounting 
period commencing after the publication of the de-
termination of the Copyright Royalty Judges in the 
Federal Register, or on such other date as is speci-
fied in that determination. 
‘‘(2) CERTAIN
SECTION
112
PROCEEDINGS.—
Proceedings under this chapter shall be commenced 
in the year 2007 to determine reasonable terms and 
rates of royalty payments for the activities described 
in section 112(e)(1) relating to the limitation on ex-
clusive rights specified by section 114(d)(1)(C)(iv), 
to become effective on January 1, 2009. Such pro-
ceedings shall be repeated in each subsequent fifth 
calendar year.
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‘‘(3) SECTION
114
AND
CORRESPONDING
112 
PROCEEDINGS.—
‘‘(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 2004 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 pe-
riod beginning on January 1, 2006, and ending 
on December 31, 2010. Such proceedings shall 
next be commenced in January 2009 to deter-
mine reasonable terms and rates of royalty pay-
ments, to become effective on January 1, 2011. 
Thereafter, such proceedings shall be repeated 
in each subsequent fifth calendar year. 
‘‘(B) FOR
PREEXISTING
SUBSCRIPTION 
AND SATELLITE DIGITAL AUDIO RADIO SERV-
ICES.—Proceedings under this chapter shall be 
commenced in January 2006 to determine rea-
sonable terms and rates of royalty payments 
under sections 114 and 112 for the activities of
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preexisting subscription services, to be effective 
during the period beginning on January 1, 
2008, and ending on December 31, 2012, and 
preexisting satellite digital audio radio services, 
to be effective during the period beginning on 
January 1, 2007, and ending on December 31, 
2012. Such proceedings shall next be com-
menced in 2011 to determine reasonable terms 
and rates of royalty payments, to become effec-
tive on January 1, 2013. Thereafter, such pro-
ceedings shall be repeated in each subsequent 
fifth calendar year. 
‘‘(C)(i) Notwithstanding any other provi-
sion of this chapter, this subparagraph shall 
govern proceedings commenced pursuant to sec-
tions 114(f)(1)(C) and 114(f)(2)(C) concerning 
new types of services. 
‘‘(ii) Not later than 30 days after a peti-
tion 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, indicating that such new type of service 
is or is about to become operational, the Copy-
right Royalty Judges shall issue a notice for a
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proceeding to determine rates and terms for 
such service. 
‘‘(iii) The proceeding shall follow the 
schedule 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 pub-
lication 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 
described in subsection (a) to initiate proceedings 
under section 801(b)(1) concerning the adjustment 
or determination of royalty rates as provided in sec-
tion 115 may be filed in the year 2006 and in each 
subsequent fifth calendar year, or at such other 
times as the parties have agreed under section 
115(c)(3)(B) and (C).
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‘‘(5) SECTION 116 PROCEEDINGS.—(A) A peti-
tion described in subsection (a) to initiate pro-
ceedings under section 801(b) concerning the deter-
mination of royalty rates and terms as provided in 
section 116 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 sec-
tion 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 play-
ers during the 1-year period ending March 1, 1989, 
the Copyright Royalty Judges shall, upon petition 
filed under paragraph (1) within 1 year after such 
termination 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 
subject to the terminated or expired negotiated li-
cense agreement. Such rate or rates shall be the 
same as the last such rate or rates and shall remain
HR 1417 RFS 
in force until the conclusion of proceedings by the 
Copyright Royalty Judges, in accordance with sec-
tion 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 
described in subsection (a) to initiate proceedings 
under section 801(b)(1) concerning the determina-
tion of reasonable terms and rates of royalty pay-
ments as provided 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 sec-
tion 111, 116, 119, or 1007, the Copyright Royalty 
Judges shall, upon a determination that a con-
troversy exists concerning such distribution, cause to
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be published in the Federal Register notice of com-
mencement of proceedings 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 chap-
ter, and 
‘‘(3) are in effect for a period shorter than 
would otherwise apply under a determination pursu-
ant to this chapter, 
shall remain in effect for such period of time as would 
otherwise apply under such determination, except that the 
Copyright Royalty Judges shall adjust the rates pursuant 
to the voluntary negotiations to reflect national monetary 
inflation during the additional period the rates remain in 
effect.’’. 
(b) CONFORMING AMENDMENT.—The table of chap-
ters for title 17, United States Code, is amended by strik-
ing the item relating to chapter 8 and inserting the fol-
lowing:
‘‘8. Proceedings by Copyright Royalty Judges .......................
801’’.
HR 1417 RFS 
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
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(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
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(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 agree-
ments negotiated under paragraphs (2) and (3), 
the Copyright Royalty Judges shall commence a 
proceeding pursuant to chapter 8 to determine 
and publish in the Federal Register a schedule 
of reasonable rates and terms which, subject to 
paragraph (5), shall be binding on all copyright 
owners of sound recordings and transmitting 
organizations entitled to a statutory license 
under this subsection during the 5-year period 
specified in paragraph (3), or such other period 
as the parties 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’’;
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(3) in paragraph (5), by striking ‘‘or decision 
by the Librarian of Congress’’ and inserting ‘‘, deci-
sion 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 RE-
CORDINGS.—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 
proceedings initiated pursuant to section 
804(a) for the purpose of determining rea-
sonable terms and rates of royalty pay-
ments for subscription transmissions by 
preexisting 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-
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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 chap-
ter 8 to determine and publish in the Fed-
eral 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 par-
ties may agree.’’; and 
(ii) in the second sentence, by striking 
‘‘copyright arbitration royalty panel’’ and 
inserting ‘‘Copyright Royalty Judges’’; and
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(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 subscription digital audio transmission 
services most recently determined under subpara-
graph (A) or (B) and chapter 8 expire, or such other 
period as the parties may agree.’’; 
(2) in paragraph (2)—
(A) in subparagraph (A)—
(i) by amending the first sentence to 
read as follows: ‘‘Voluntary negotiation 
proceedings initiated pursuant to section 
804(a) for the purpose of determining rea-
HR 1417 RFS 
sonable terms and rates of royalty pay-
ments for public performances of sound re-
cordings by means of eligible nonsubscrip-
tion transmissions and transmissions by 
new subscription services specified by sub-
section (d)(2) shall cover the 5-year period 
beginning on January 1 of the second year 
following the year in which the proceedings 
are commenced, except where different 
transitional 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 chap-
ter 8 to determine and publish in the Fed-
eral Register a schedule of rates and terms 
which, subject to paragraph (3), shall be 
binding on all copyright owners of sound
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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 de-
termining reasonable terms and rates of royalty pay-
ments with respect to such new type of 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 preexisting subscription 
digital audio transmission services or preexisting sat-
HR 1417 RFS 
ellite digital radio audio services, as the case may be, 
most recently determined under subparagraph (A) or 
(B) and chapter 8 expire, or such other period as 
the parties may agree.’’;
(3) in paragraph (3), by striking ‘‘or decision 
by the Librarian of Congress’’ and inserting ‘‘, deci-
sion 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 
‘‘Copyright 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 subparagraphs (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-
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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 January 1 of the second year following the 
year in which the petition is filed, and ending 
on the effective 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 agree-
ments negotiated under subparagraphs (B) and 
(C), the Copyright Royalty Judges shall com-
mence proceedings pursuant to chapter 8 to de-
termine and publish in the Federal Register a 
schedule of rates and terms which, subject to 
subparagraph (E), shall be binding on all copy-
right owners of nondramatic musical works and 
persons entitled to obtain a compulsory license 
under subsection (a)(1) during the period speci-
HR 1417 RFS 
fied in subparagraph (C) or such other period 
as may be determined pursuant to subpara-
graphs (B) and (C), or such other period as the 
parties may agree.’’; 
(B) in the third sentence, by striking 
‘‘copyright arbitration royalty panel’’ and in-
serting ‘‘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
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(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
PROCEEDING.—Parties not 
subject to such a negotiation may have the terms 
and rates and the division of fees described in para-
graph (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 
DETERMINATIONS’’ and inserting ‘‘DETER-
MINATIONS 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 
amended—
(1) in subsection (b)—
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(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 Li-
brarian of Congress, or the Copyright Royalty 
Judge, if copies of such agreements are filed 
with the Copyright Royalty Judges within 30 
days of execution in accordance with regulations 
that the Copyright Royalty Judges shall issue.’’; 
and
(C) in paragraph (3)—
(i) in the second sentence—
(I) by striking ‘‘copyright arbi-
tration royalty panel’’ and inserting 
‘‘Copyright Royalty Judges’’; and
(II) by striking ‘‘paragraph (2).’’ 
and inserting ‘‘paragraph (2) or (3).’’;
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(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 sen-
tence 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, con-
duct 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, regard-
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less of whether such copyright owners have sub-
mitted 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 
striking ‘‘(d)’’ and inserting ‘‘(c)’’. 
(g) SECONDARY TRANSMISSIONS BY SATELLITE CAR-
RIERS.—Section 119(b) is amended—
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(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 con-
troversy concerning the distribution of royalty 
fees. If the Copyright Royalty Judges determine 
that no such controversy exists, the Librarian 
of Congress shall, after deducting reasonable 
administrative costs under this paragraph, dis-
tribute such fees to the copyright owners enti-
tled to receive 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 royalty fees.
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‘‘(C) WITHHOLDING
OF
FEES
DURING 
CONTROVERSY.—During the pendency of any 
proceeding 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 Roy-
alty Judges’’.
(2) ENTITLEMENT TO ROYALTY PAYMENTS.—
Section 1006(c) is amended by striking ‘‘Librarian 
of Congress shall convene a copyright arbitration 
royalty panel which’’ and inserting ‘‘Copyright Roy-
alty 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
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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 
determine that no such controversy exists, the Librarian 
of Congress shall, within 30 days after such determina-
tion, 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 Librarian of Congress shall, before such royalty pay-
ments are distributed, deduct the reasonable administra-
tive costs incurred 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 distribu-
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tion of royalty payments. During the pendency of such a 
proceeding, 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 distrib-
uted, deduct the reasonable 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 deter-
mine 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 Copy-
right Royalty Judges requesting the commencement of a 
proceeding. Within 2 weeks after receiving such a petition,
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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 
action brought under section 1009 against a party to a 
proceeding 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 Copy-
right 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 
information 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 
appealed, 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 Copyright Royalty Judges. If the court modifies the 
determination of the Copyright Royalty Judges, the court 
shall have jurisdiction to enter its own decision in accord-
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ance with its final judgment. The court may further vacate 
the determination of the Copyright Royalty Judges and 
remand the case for proceedings as provided in this sec-
tion.’’. 
(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 amend-
ments made by this Act shall take effect 6 months after 
the date of the enactment of this Act, except that the Li-
brarian of Congress shall appoint interim Copyright Roy-
alty Judges under section 802(d) of title 17, United States 
Code, as amended by this Act, within 90 days after such 
date of enactment to carry out the functions of the Copy-
right Royalty Judges under title 17, United States Code, 
to the extent that Copyright Royalty Judges provided for 
in section 801(a) of title 17, United States Code, as 
amended by this Act, have not been appointed before the 
end of that 90-day period. 
(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 vol-
untary agreements entered into before the enact-
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ment of this Act under the provisions of title 17, 
United States Code, amended by this Act, and pend-
ing on such date of enactment. Such proceedings 
shall continue, determinations made in such pro-
ceedings, 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 vol-
untary agreements entered into shall remain in ef-
fect as if this Act had not been enacted. 
(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 subscription services, eligible nonsubscrip-
tion 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 Fed-
eral Register under the authority 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 later date as 
the parties may agree. Any proceeding commenced
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before the enactment of this Act pursuant to section 
114(f)(2) and chapter 8 of title 17, United States 
Code, to adjust or determine such rates and terms 
for periods following 2004 shall be terminated upon 
the enactment of this Act and shall be null and void. 
(c) EXISTING APPROPRIATIONS.—Any funds made 
available in an appropriations Act before the date of the 
enactment of this Act to carry out chapter 8 of title 17, 
United States Code, shall be available to the extent nec-
essary to carry out this section.
Passed the House of Representatives March 3, 
2004. 
Attest: 
JEFF TRANDAHL, 
Clerk.