H. R. 672
One Hundred Fifth Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Tuesday,
the seventh day of January, one thousand nine hundred and ninety-seven
An Act
To make technical amendments to certain provisions of title 17, United States
Code.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. TECHNICAL CORRECTIONS TO THE SATELLITE HOME
VIEWER ACT OF 1994.
The Satellite Home Viewer Act of 1994 (Public Law 103–369)
is amended as follows:
(1) Section 2(3)(A) is amended to read as follows:
‘‘(A) in clause (i) by striking ‘12 cents’ and inserting
‘17.5 cents per subscriber in the case of superstations that
as retransmitted by the satellite carrier include any pro-
gram which, if delivered by any cable system in the United
States, would be subject to the syndicated exclusivity rules
of the Federal Communications Commission, and 14 cents
per subscriber in the case of superstations that are syndex-
proof as defined in section 258.2 of title 37, Code of Federal
Regulations’; and’’.
(2) Section 2(4) is amended to read as follows:
‘‘(4) Subsection (c) is amended—
‘‘(A) in paragraph (1)—
‘‘(i) by striking ‘until December 31, 1992,’;
‘‘(ii) by striking ‘(2), (3) or (4)’ and inserting ‘(2)
or (3)’; and
‘‘(iii) by striking the second sentence;
‘‘(B) in paragraph (2)—
‘‘(i) in subparagraph (A) by striking ‘July 1, 1991’
and inserting ‘July 1, 1996’; and
‘‘(ii) in subparagraph (D) by striking ‘December
31, 1994’ and inserting ‘December 31, 1999, or in
accordance with the terms of the agreement, whichever
is later’; and
‘‘(C) in paragraph (3)—
‘‘(i) in subparagraph (A) by striking ‘December 31,
1991’ and inserting ‘January 1, 1997’;
‘‘(ii) by amending subparagraph (B) to read as
follows:
‘‘‘(B) ESTABLISHMENT OF ROYALTY FEES.—In determin-
ing royalty fees under this paragraph, the copyright
arbitration royalty panel appointed under chapter 8 shall
establish fees for the retransmission of network stations
and superstations that most clearly represent the fair mar-
ket value of secondary transmissions. In determining the
H. R. 672—2
fair market value, the panel shall base its decision on
economic, competitive, and programming information pre-
sented by the parties, including—
‘‘‘(i) the competitive environment in which such
programming is distributed, the cost of similar signals
in similar private and compulsory license market-
places, and any special features and conditions of the
retransmission marketplace;
‘‘‘(ii) the economic impact of such fees on copyright
owners and satellite carriers; and
‘‘‘(iii) the impact on the continued availability of
secondary transmissions to the public.’; and
‘‘(iii) in subparagraph (C), by inserting ‘or July
1, 1997, whichever is later’ after ‘section 802(g)’.’’.
(3) Section 2(5)(A) is amended to read as follows:
‘‘(A) in paragraph (5)(C) by striking ‘the date of the
enactment of the Satellite Home Viewer Act of 1988’ and
inserting ‘November 16, 1988’; and’’.
SEC. 2. COPYRIGHT IN RESTORED WORKS.
Section 104A of title 17, United States Code, is amended as
follows:
(1) Subsection (d)(3)(A) is amended to read as follows:
‘‘(3) EXISTING
DERIVATIVE
WORKS.—(A) In the case of a
derivative work that is based upon a restored work and is
created—
‘‘(i) before the date of the enactment of the Uruguay
Round Agreements Act, if the source country of the restored
work is an eligible country on such date, or
‘‘(ii) before the date on which the source country of
the restored work becomes an eligible country, if that coun-
try is not an eligible country on such date of enactment,
a reliance party may continue to exploit that derivative work
for the duration of the restored copyright if the reliance party
pays to the owner of the restored copyright reasonable com-
pensation for conduct which would be subject to a remedy
for infringement but for the provisions of this paragraph.’’.
(2) Subsection (e)(1)(B)(ii) is amended by striking the last
sentence.
(3) Subsection (h)(2) is amended to read as follows:
‘‘(2) The ‘date of restoration’ of a restored copyright is—
‘‘(A) January 1, 1996, if the source country of the
restored work is a nation adhering to the Berne Convention
or a WTO member country on such date, or
‘‘(B) the date of adherence or proclamation, in the
case of any other source country of the restored work.’’.
(4) Subsection (h)(3) is amended to read as follows:
‘‘(3) The term ‘eligible country’ means a nation, other than
the United States, that—
‘‘(A) becomes a WTO member country after the date
of the enactment of the Uruguay Round Agreements Act;
‘‘(B) on such date of enactment is, or after such date
of enactment becomes, a member of the Berne Convention;
or
‘‘(C) after such date of enactment becomes subject to
a proclamation under subsection (g).
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For purposes of this section, a nation that is a member of
the Berne Convention on the date of the enactment of the
Uruguay Round Agreements Act shall be construed to become
an eligible country on such date of enactment.’’.
SEC. 3. LICENSES FOR NONEXEMPT SUBSCRIPTION TRANSMISSIONS.
Section 114(f) of title 17, United States Code, is amended—
(1) in paragraph (1), by inserting ‘‘, or, if a copyright
arbitration royalty panel is convened, ending 30 days after
the Librarian issues and publishes in the Federal Register
an order adopting the determination of the copyright arbitration
royalty panel or an order setting the terms and rates (if the
Librarian rejects the panel’s determination)’’ after ‘‘December
31, 2000’’; and
(2) in paragraph (2), by striking ‘‘and publish in the Federal
Register’’.
SEC. 4. ROYALTY PAYABLE UNDER COMPULSORY LICENSE.
Section 115(c)(3)(D) of title 17, United States Code, is amended
by striking ‘‘and publish in the Federal Register’’.
SEC. 5. NEGOTIATED LICENSE FOR JUKEBOXES.
Section 116 of title 17, United States Code, is amended—
(1) by amending subsection (b)(2) to read as follows:
‘‘(2) ARBITRATION.—Parties not subject to such a negotiation
may determine, by arbitration in accordance with the provisions
of chapter 8, the terms and rates and the division of fees
described in paragraph (1).’’; and
(2) by adding at the end the following new subsection:
‘‘(d) DEFINITIONS.—As used in this section, the following terms
mean the following:
‘‘(1) A ‘coin-operated phonorecord player’ is a machine or
device that—
‘‘(A) is employed solely for the performance of nondra-
matic musical works by means of phonorecords upon being
activated by the insertion of coins, currency, tokens, or
other monetary units or their equivalent;
‘‘(B) is located in an establishment making no direct
or indirect charge for admission;
‘‘(C) is accompanied by a list which is comprised of
the titles of all the musical works available for performance
on it, and is affixed to the phonorecord player or posted
in the establishment in a prominent position where it can
be readily examined by the public; and
‘‘(D) affords a choice of works available for performance
and permits the choice to be made by the patrons of the
establishment in which it is located.
‘‘(2) An ‘operator’ is any person who, alone or jointly with
others—
‘‘(A) owns a coin-operated phonorecord player;
‘‘(B) has the power to make a coin-operated phono-
record player available for placement in an establishment
for purposes of public performance; or
‘‘(C) has the power to exercise primary control over
the selection of the musical works made available for public
performance on a coin-operated phonorecord player.’’.
H. R. 672—4
SEC. 6. REGISTRATION AND INFRINGEMENT ACTIONS.
Section 411(b)(1) of title 17, United States Code, is amended
to read as follows:
‘‘(1) serves notice upon the infringer, not less than 48
hours before such fixation, identifying the work and the specific
time and source of its first transmission, and declaring an
intention to secure copyright in the work; and’’.
SEC. 7. COPYRIGHT OFFICE FEES.
(a) FEE INCREASES.—Section 708(b) of title 17, United States
Code, is amended to read as follows:
‘‘(b) In calendar year 1997 and in any subsequent calendar
year, the Register of Copyrights, by regulation, may increase the
fees specified in subsection (a) in the following manner:
‘‘(1) The Register shall conduct a study of the costs incurred
by the Copyright Office for the registration of claims, the rec-
ordation of documents, and the provision of services. The study
shall also consider the timing of any increase in fees and
the authority to use such fees consistent with the budget.
‘‘(2) The Register may, on the basis of the study under
paragraph (1), and subject to paragraph (5), increase fees to
not more than that necessary to cover the reasonable costs
incurred by the Copyright Office for the services described
in paragraph (1), plus a reasonable inflation adjustment to
account for any estimated increase in costs.
‘‘(3) Any fee established under paragraph (2) shall be
rounded off to the nearest dollar, or for a fee less than $12,
rounded off to the nearest 50 cents.
‘‘(4) Fees established under this subsection shall be fair
and equitable and give due consideration to the objectives of
the copyright system.
‘‘(5) If the Register determines under paragraph (2) that
fees should be increased, the Register shall prepare a proposed
fee schedule and submit the schedule with the accompanying
economic analysis to the Congress. The fees proposed by the
Register may be instituted after the end of 120 days after
the schedule is submitted to the Congress unless, within that
120-day period, a law is enacted stating in substance that
the Congress does not approve the schedule.’’.
(b) DEPOSIT OF FEES.—Section 708(d) of such title is amended
to read as follows:
‘‘(d)(1) Except as provided in paragraph (2), all fees received
under this section shall be deposited by the Register of Copyrights
in the Treasury of the United States and shall be credited to
the appropriations for necessary expenses of the Copyright Office.
Such fees that are collected shall remain available until expended.
The Register may, in accordance with regulations that he or she
shall prescribe, refund any sum paid by mistake or in excess of
the fee required by this section.
‘‘(2) In the case of fees deposited against future services, the
Register of Copyrights shall request the Secretary of the Treasury
to invest in interest-bearing securities in the United States Treasury
any portion of the fees that, as determined by the Register, is
not required to meet current deposit account demands. Funds from
such portion of fees shall be invested in securities that permit
funds to be available to the Copyright Office at all times if they
are determined to be necessary to meet current deposit account
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demands. Such investments shall be in public debt securities with
maturities suitable to the needs of the Copyright Office, as deter-
mined by the Register of Copyrights, and bearing interest at rates
determined by the Secretary of the Treasury, taking into consider-
ation current market yields on outstanding marketable obligations
of the United States of comparable maturities.
‘‘(3) The income on such investments shall be deposited in
the Treasury of the United States and shall be credited to the
appropriations for necessary expenses of the Copyright Office.’’.
SEC. 8. COPYRIGHT ARBITRATION ROYALTY PANELS.
(a) ESTABLISHMENT
AND PURPOSE.—Section 801 of title 17,
United States Code, is amended—
(1) in subsection (b)(1) by striking ‘‘and 116’’ in the first
sentence and inserting ‘‘116, and 119’’;
(2) in subsection (c) by inserting after ‘‘panel’’ at the end
of the sentence the following:
‘‘, including—
‘‘(1) authorizing the distribution of those royalty fees col-
lected under sections 111, 119, and 1005 that the Librarian
has found are not subject to controversy; and
‘‘(2) accepting or rejecting royalty claims filed under sec-
tions 111, 119, and 1007 on the basis of timeliness or the
failure to establish the basis for a claim’’; and
(3) by amending subsection (d) to read as follows:
‘‘(d) SUPPORT AND REIMBURSEMENT OF ARBITRATION PANELS.—
The Librarian of Congress, upon the recommendation of the Register
of Copyrights, shall provide the copyright arbitration royalty panels
with the necessary administrative services related to proceedings
under this chapter, and shall reimburse the arbitrators presiding
in distribution proceedings at such intervals and in such manner
as the Librarian shall provide by regulation. Each such arbitrator
is an independent contractor acting on behalf of the United States,
and shall be hired pursuant to a signed agreement between the
Library of Congress and the arbitrator. Payments to the arbitrators
shall be considered reasonable costs incurred by the Library of
Congress and the Copyright Office for purposes of section
802(h)(1).’’.
(b) PROCEEDINGS.—Section 802(h) of title 17, United States
Code, is amended by amending paragraph (1) to read as follows:
‘‘(1) DEDUCTION OF COSTS OF LIBRARY OF CONGRESS AND
COPYRIGHT OFFICE FROM ROYALTY FEES.—The Librarian of Con-
gress and the Register of Copyrights may, to the extent not
otherwise provided under this title, deduct from royalty fees
deposited or collected under this title the reasonable costs
incurred by the Library of Congress and the Copyright Office
under this chapter. Such deduction may be made before the
fees are distributed to any copyright claimants. In addition,
all funds made available by an appropriations Act as offsetting
collections and available for deductions under this subsection
shall remain available until expended. In ratemaking proceed-
ings, the reasonable costs of the Librarian of Congress and
the Copyright Office shall be borne by the parties to the
proceedings as directed by the arbitration panels under sub-
section (c).’’.
H. R. 672—6
SEC. 9. DIGITAL AUDIO RECORDING DEVICES AND MEDIA.
Section 1007(b) of title 17, United States Code, is amended
by striking ‘‘Within 30 days after’’ in the first sentence and inserting
‘‘After’’.
SEC. 10. CONFORMING AMENDMENT.
Section 4 of the Digital Performance Right in Sound Recordings
Act of 1995 (Public Law 104–39) is amended by redesignating
paragraph (5) as paragraph (4).
SEC. 11. DISTRIBUTION OF PHONORECORDS.
Section 303 of title 17, United States Code, is amended—
(1) by striking ‘‘Copyright’’ and inserting ‘‘(a) Copyright’’;
and
(2) by inserting at the end the following:
‘‘(b) The distribution before January 1, 1978, of a phonorecord
shall not for any purpose constitute a publication of the musical
work embodied therein.’’.
SEC. 12. MISCELLANEOUS TECHNICAL AMENDMENTS.
(a) AMENDMENTS TO TITLE 17, UNITED STATES CODE.—Title
17, United States Code, is amended as follows:
(1) The table of chapters at the beginning of title 17,
United States Code, is amended—
(A) in the item relating to chapter 6, by striking
‘‘Requirement’’ and inserting ‘‘Requirements’’;
(B) in the item relating to chapter 8, by striking ‘‘Roy-
alty Tribunal’’ and inserting ‘‘Arbitration Royalty Pan-
els’’;
(C) in the item relating to chapter 9, by striking ‘‘semi-
conductor chip products’’ and inserting ‘‘Semiconduc-
tor Chip Products’’; and
(D) by inserting after the item relating to chapter
9 the following:
‘‘10. Digital Audio Recording Devices and Media ....................................... 1001’’.
(2) The item relating to section 117 in the table of sections
at the beginning of chapter 1 is amended to read as follows:
‘‘117. Limitations on exclusive rights: Computer programs.’’.
(3) Section 101 is amended in the definition of to perform
or display a work ‘‘publicly’’ by striking ‘‘processs’’ and inserting
‘‘process’’.
(4) Section 108(e) is amended by striking ‘‘pair’’ and insert-
ing ‘‘fair’’.
(5) Section 109(b)(2)(B) is amended by striking ‘‘Copyright’’
and inserting ‘‘Copyrights’’.
(6) Section 110 is amended—
(A) in paragraph (8) by striking the period at the
end and inserting a semicolon;
(B) in paragraph (9) by striking the period at the
end and inserting ‘‘; and’’; and
(C) in paragraph (10) by striking ‘‘4 above’’ and insert-
ing ‘‘(4)’’.
(7) Section 115(c)(3)(E) is amended—
(A) in clause (i) by striking ‘‘sections 106(1) and (3)’’
each place it appears and inserting ‘‘paragraphs (1) and
(3) of section 106’’; and
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(A) in subsection (a)(1) by striking ‘‘the calendar year
in which this chapter takes effect’’ and inserting ‘‘calendar
year 1992’’; and
(B) in subsection (b) by striking ‘‘the year in which
this section takes effect’’ and inserting ‘‘1992’’.
(b) RELATED PROVISIONS.—
(1) Section 1(a)(1) of the Act entitled ‘‘An Act to amend
chapter 9 of title 17, United States Code, regarding protection
extended to semiconductor chip products of foreign entities’’,
approved November 9, 1987 (17 U.S.C. 914 note), is amended
by striking ‘‘orginating’’ and inserting ‘‘originating’’.
(2) Section 2319(b)(1) of title 18, United States Code, is
amended by striking ‘‘last 10’’ and inserting ‘‘least 10’’.
SEC. 13. EFFECTIVE DATES.
(a) IN GENERAL.—Except as provided in subsections (b) and
(c), the amendments made by this Act shall take effect on the
date of the enactment of this Act.
(b) SATELLITE HOME VIEWER ACT.—The amendments made by
section 1 shall be effective as if enacted as part of the Satellite
Home Viewer Act of 1994 (Public Law 103–369).
(c) TECHNICAL AMENDMENT.—The amendment made by section
12(b)(1) shall be effective as if enacted on November 9, 1987.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.