Title: CASE Act of 2017
Policy area: Commerce

Summary:
Copyright Alternative in Small-Claims Enforcement Act of 2017 or the CASE Act of 2017
This bill creates the Copyright Claims Board, a body within the U.S. Copyright Office to decide copyright disputes. Damages awarded by the board are capped at $30,000.
Participation in board proceedings is voluntary, and parties may choose instead to have a claim or defense heard in court. If the parties agree to have their dispute heard by the board, they shall forego the right to be heard before a court and the right to a jury trial.
The board shall be authorized to hear copyright infringement claims, actions for a declaration of noninfringement, claims that a party knowingly sent false takedown notices, and related counterclaims.
The bill provides for various procedures, requests for information from the other party and requests for the board to reconsider a decision.
The board may issue monetary awards based on actual or statutory damages.
The parties shall bear their own attorneys' fees and costs except where there is bad faith misconduct, and such awards shall be limited to $5,000.
A board's final determination precludes relitigating the claims in court or at the board, but parties may apply to a federal district court for review of the decision.


[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3945 Introduced in House (IH)]

<DOC>






115th CONGRESS
  1st Session
                                H. R. 3945

  To amend title 17, United States Code, to establish an alternative 
 dispute resolution program for copyright small claims, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 4, 2017

  Mr. Jeffries (for himself, Mr. Marino, Mr. Collins of Georgia, Mr. 
    Smith of Texas, Ms. Judy Chu of California, and Mr. Ted Lieu of 
 California) introduced the following bill; which was referred to the 
                       Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
  To amend title 17, United States Code, to establish an alternative 
 dispute resolution program for copyright small claims, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Copyright Alternative in Small-
Claims Enforcement Act of 2017'' or the ``CASE Act of 2017''.

SEC. 2. COPYRIGHT SMALL CLAIMS.

    (a) In General.--Title 17, United States Code, is amended by adding 
at the end the following new chapter:

                  ``CHAPTER 14--COPYRIGHT SMALL CLAIMS

``Sec.
``1401. Copyright Claims Board.
``1402. Authority and responsibilities of the Copyright Claims Board.
``1403. Nature of proceedings.
``1404. Registration requirement.
``1405. Conduct of proceedings.
``1406. Effect of proceeding.
``1407. Review and confirmation by district court.
``1408. Relationship to other district court actions.
``1409. Implementation by Copyright Office.
``1410. Funding.
``1411. Definitions.
``Sec. 1401. Copyright Claims Board
    ``(a) In General.--There is hereby established in the U.S. 
Copyright Office a copyright small claims program (hereinafter referred 
to as the `Copyright Claims Board'), which shall serve as an 
alternative forum in which parties may voluntarily seek to resolve 
certain copyright claims, regarding any category of copyrighted work, 
as further provided in this chapter.
    ``(b) Officers and Staff.--
            ``(1) Copyright claims officers.--Upon recommendation of 
        the Register of Copyrights, who shall identify qualified 
        candidates, the Librarian of Congress shall appoint 3 full-time 
        Copyright Claims Officers to serve on the Copyright Claims 
        Board.
            ``(2) Copyright claims attorneys.--The Register of 
        Copyrights shall hire no fewer than 2 full-time Copyright 
        Claims Attorneys to assist in the administration of the 
        Copyright Claims Board.
            ``(3) Qualifications.--
                    ``(A) Copyright claims officers.--Each Copyright 
                Claims Officer shall be an attorney with no less than 7 
                years of legal experience. Two of the Copyright Claims 
                Officers shall have substantial experience in the 
                evaluation, litigation, or adjudication of copyright 
                infringement claims and, between them, shall have 
                represented or presided over a diversity of copyright 
                interests, including those of both owners and users of 
                copyrighted works. The third Copyright Claims Officer 
                shall have substantial familiarity with copyright law 
                and experience in the field of alternative dispute 
                resolution, including the resolution of litigation 
                matters through such means.
                    ``(B) Copyright claims attorneys.--Each Copyright 
                Claims Attorney shall be an attorney with no less than 
                3 years of substantial experience in copyright law.
            ``(4) Compensation.--Each Copyright Claims Officer shall be 
        compensated at not less than the minimum and not more than the 
        maximum rate of pay for SL employees (or the equivalent) of the 
        Federal Government, including locality pay, as applicable. Each 
        Copyright Claims Attorney shall be compensated at not more than 
        the maximum permissible pay for level 10 of GS-15 of the 
        General Schedule (or the equivalent), including locality pay, 
        as applicable.
            ``(5) Term.--Copyright Claims Officers shall serve for 6-
        year terms that are renewable by the Librarian of Congress upon 
        recommendation of the Register of Copyrights: Provided, 
        however, That the terms for the initial Copyright Claims 
        Officers appointed hereunder shall be as follows: one Copyright 
        Claims Officer shall be appointed for 4 years, the second shall 
        be appointed for 5 years, and the third shall be appointed for 
        6 years.
            ``(6) Vacancies and incapacity.--
                    ``(A) Vacancy.--If a vacancy shall occur in the 
                position of Copyright Claims Officer, the Librarian of 
                Congress shall, upon recommendation of the Register of 
                Copyrights, who shall identify qualified candidates, 
                act expeditiously to appoint a Copyright Claims Officer 
                for that position. An individual appointed to fill a 
                vacancy occurring before the expiration of the term for 
                which his or her predecessor was appointed shall be 
                appointed to serve for a 6-year term.
                    ``(B) Incapacity.--If a Copyright Claims Officer is 
                temporarily unable to perform his or her duties, the 
                Librarian of Congress shall, upon recommendation of the 
                Register of Copyrights, who shall identify qualified 
                candidates, act expeditiously to appoint an interim 
                Copyright Claims Officer to perform such duties during 
                the period of such incapacity.
            ``(7) Supervision and removal.--Subject to section 1402(b), 
        the Copyright Claims Officers shall be supervised and removable 
        by the Librarian of Congress.
            ``(8) Administrative support.--The Register of Copyrights 
        shall provide the Copyright Claims Officers and Copyright 
        Claims Attorneys with necessary administrative support, 
        including technological facilities, to carry out their duties 
        under this chapter.
            ``(9) Location of copyright claims board.--The offices and 
        facilities of the Copyright Claims Officers and Copyright 
        Claims Attorneys shall be located at the Copyright Office.
``Sec. 1402. Authority and responsibilities of the Copyright Claims 
              Board
    ``(a) Functions.--
            ``(1) Copyright claims officers.--Subject to the provisions 
        of this chapter and applicable regulations, the functions of 
        the Copyright Claims Officers shall be as follows:
                    ``(A) To render determinations on such civil 
                copyright claims, counterclaims, and defenses as are 
                permitted to be brought before them under this chapter.
                    ``(B) To ensure that claims, counterclaims, and 
                defenses are properly asserted and otherwise 
                appropriate for resolution by the Copyright Claims 
                Board.
                    ``(C) To manage the proceedings before them and 
                render rulings pertaining to the consideration of 
                claims, counterclaims, and defenses, including 
                scheduling, discovery, evidentiary, and other matters.
                    ``(D) To request the production of information and 
                documents relevant to the resolution of a claim, 
                counterclaim, or defense from participants in a 
                proceeding and from nonparticipants.
                    ``(E) To conduct hearings and conferences.
                    ``(F) To facilitate parties' settlement of claims 
                and counterclaims.
                    ``(G) To award monetary relief and also to include 
                in its determinations a requirement of cessation or 
                mitigation of infringing activity, including takedown 
                or destruction of infringing materials, where the party 
                to undertake such measures has so agreed.
                    ``(H) To provide information to the public 
                concerning the procedures and requirements of the 
                Copyright Claims Board.
                    ``(I) To maintain records of the proceedings before 
                them, certify official records of such proceedings as 
                needed, and make the records in such proceedings 
                available to the public in accordance with law.
                    ``(J) To carry out such other duties as are 
                prescribed in this chapter.
                    ``(K) When not engaged in performing their duties 
                as prescribed in this chapter, to perform such other 
                duties as may be assigned by the Register of 
                Copyrights.
            ``(2) Copyright claims attorneys.--Subject to the 
        provisions of this chapter and applicable regulations, the 
        functions of the Copyright Claims Attorneys shall be as 
        follows:
                    ``(A) To provide assistance to the Copyright Claims 
                Officers in the administration of their duties under 
                this chapter.
                    ``(B) To provide assistance to members of the 
                public with respect to the procedures and requirements 
                of the Copyright Claims Board.
                    ``(C) When not engaged in performing their duties 
                as prescribed in this chapter, to perform such other 
                duties as may be assigned by the Register of 
                Copyrights.
    ``(b) Independence in Determinations.--The Copyright Claims 
Officers shall render their determinations in individual proceedings 
independently on the basis of the records in the proceedings before 
them and in accordance with the provisions of this title, judicial 
precedent, and applicable regulations of the Register of Copyrights. 
The Copyright Claims Officers and Copyright Claims Attorneys may 
consult with the Register of Copyrights on general issues of law, but, 
subject to section 1405(w), not with respect to the facts of any 
particular matter pending before them or the application of law 
thereto. Notwithstanding any other provision of law or any regulation 
or policy of the Library of Congress or Register of Copyrights, no 
performance appraisal of a Copyright Claims Officer or Copyright Claims 
Attorney shall consider the substantive result of any individual 
determination reached by the Copyright Claims Board as a basis for 
appraisal except insofar as it may relate to any actual or alleged 
violation of an ethical standard of conduct.
    ``(c) Direction by Register.--Subject to subsection (b), the 
Copyright Claims Officers and Copyright Claims Attorneys shall be 
generally directed in the administration of their duties by the 
Register of Copyrights.
    ``(d) Inconsistent Duties Barred.--No Copyright Claims Officer or 
Copyright Claims Attorney may undertake duties that conflict with his 
or her duties or responsibilities in connection with the Copyright 
Claims Board.
    ``(e) Recusal.--A Copyright Claims Officer or Copyright Claims 
Attorney shall recuse himself or herself from participation in any 
proceeding with respect to which the Copyright Claims Officer or 
Copyright Claims Attorney has reason to believe that he or she has a 
conflict of interest.
    ``(f) Ex Parte Communications.--Except as may otherwise be 
permitted by applicable law, any party to a proceeding before the 
Copyright Claims Board shall refrain from ex parte communications with 
the Copyright Claims Officers concerning the substance of any 
proceeding before the Copyright Claims Board.
    ``(g) Judicial Review.--Actions of the Copyright Claims Officers 
and Register of Copyrights under this chapter in connection with the 
rendering of individual determinations are subject to judicial review 
as provided under section 1407(c), and not under chapter 7 of title 5, 
United States Code.
``Sec. 1403. Nature of proceedings
    ``(a) Voluntary Participation.--Participation in a Copyright Claims 
Board proceeding shall be on a voluntary basis in accordance with this 
chapter, and the right of any party to instead pursue a claim, 
counterclaim or defense in a United States district court or any other 
court, and to seek a jury trial, shall be preserved.
    ``(b) Statute of Limitations.--
            ``(1) In general.--No proceeding shall be maintained before 
        the Copyright Claims Board unless it is commenced in accordance 
        with section 1405(e) before the Copyright Claims Board within 
        three years after the claim that is the basis for the 
        proceeding accrued.
            ``(2) Tolling.--Subject to section 1406(a), a proceeding 
        commenced before the Copyright Claims Board shall toll the time 
        permitted under section 507(b) of this title for commencement 
        of an action on the same claim in a United States district 
        court during the time it remains pending.
    ``(c) Permissible Claims, Counterclaims and Defenses.--The 
Copyright Claims Officers may render determinations with respect to the 
following claims, counterclaims and defenses, subject to such further 
limitations and requirements, including with respect to particular 
classes of works, as may be set forth in regulations established by the 
Register of Copyrights:
            ``(1) A claim for infringement of an exclusive right of 
        copyright provided under section 106 of this title, asserted by 
        the legal or beneficial owner of such exclusive right at the 
        time of infringement pursuant to which the claimant seeks 
        damages, if any, within the limitations set forth in subsection 
        (e)(1).
            ``(2) A claim for a declaration of noninfringement of an 
        exclusive right of copyright provided under section 106 of this 
        title, where an actual controversy exists as evidenced by a 
        written communication indicating that legal action against the 
        claimant is imminent due to specifically alleged infringing 
        conduct.
            ``(3) Notwithstanding any other provision of law, a claim 
        pursuant to section 512(f) of this title for misrepresentation 
        in connection with a notification of claimed infringement or a 
        counter notification seeking to replace removed or disabled 
        material: Provided, however, That any remedies in such a 
        proceeding before the Copyright Claims Board shall be limited 
        to those available under this chapter.
            ``(4) A counterclaim asserted solely against the claimant 
        or claimants in a proceeding pursuant to which the 
        counterclaimant or counterclaimants seek damages, if any, 
        within the limitations set forth in subsection (e)(1), and 
        that--
                    ``(A) arises under section 106 or section 512(f) of 
                this title, and out of the same transaction or 
                occurrence that is the subject of a claim of 
                infringement brought under paragraph (1), a claim of 
                noninfringement brought under paragraph (2), or a claim 
                of misrepresentation brought under paragraph (3); or
                    ``(B) arises under an agreement pertaining to the 
                same transaction or occurrence that is the subject of a 
                claim of infringement brought under paragraph (1) and 
                could affect the relief awarded to the claimant.
            ``(5) A legal or equitable defense, pursuant to this title 
        or otherwise available under law, in response to a claim or 
        counterclaim asserted under this subsection.
            ``(6) A single claim or multiple claims permitted under 
        paragraph (1), (2), or (3) by one or more claimants against one 
        or more respondents: Provided, however, That all claims 
        asserted in any one proceeding arise out of the same allegedly 
        infringing activity or continuous course of infringing 
        activities and do not in the aggregate result in a claim for 
        damages in excess of the limitation provided in subsection 
        (e)(1)(D).
    ``(d) Excluded Claims.--The following claims and counterclaims are 
not subject to determination by the Copyright Claims Board:
            ``(1) A claim or counterclaim that is not a permissible 
        claim or counterclaim under subsection (c).
            ``(2) A claim or counterclaim that has been finally 
        adjudicated by a court of competent jurisdiction or that is 
        already pending before a court of competent jurisdiction, 
        unless such court has issued a stay to permit such claim or 
        counterclaim to proceed before the Copyright Claims Board.
            ``(3) A claim or counterclaim by or against a Federal or 
        State government entity.
            ``(4) A claim or counterclaim asserted against a person or 
        entity residing outside of the United States.
            ``(5) A claim or counterclaim dismissed by the Copyright 
        Claims Board pursuant to section 1405(f)(3).
    ``(e) Permissible Remedies.--
            ``(1) Monetary recovery.--
                    ``(A) Actual damages, profits, and limited 
                statutory damages.--Subject to the limitation on total 
                monetary recovery set forth in subparagraph (D), with 
                respect to a claim or counterclaim for infringement of 
                copyright, the Copyright Claims Board may award--
                            ``(i) actual damages and profits determined 
                        in accordance with section 504(b) of this 
                        title, which determination shall include in 
                        appropriate cases consideration of whether the 
                        infringing party has agreed to cease or 
                        mitigate the infringing activity as provided in 
                        paragraph (2); or
                            ``(ii) limited statutory damages, which 
                        shall be determined in accordance with section 
                        504(c) of this title, subject to the following 
                        conditions:
                                    ``(I) With respect to works timely 
                                registered under section 412 of this 
                                title, such that they are eligible for 
                                an award of statutory damages under 
                                that section, such limited statutory 
                                damages shall not exceed $15,000 per 
                                work infringed.
                                    ``(II) With respect to works not 
                                timely registered under section 412 of 
                                this title, but eligible for an award 
                                of statutory damages under this 
                                section, limited statutory damages 
                                shall not exceed $7,500 per work 
                                infringed, or a total of $15,000 in any 
                                one proceeding.
                                    ``(III) The Copyright Claims Board 
                                shall not make any finding or consider 
                                whether the infringement was committed 
                                willfully in making an award of limited 
                                statutory damages.
                                    ``(IV) The Copyright Claims Board 
                                may consider as an additional factor in 
                                awarding limited statutory damages 
                                whether the infringer has agreed to 
                                cease or mitigate the infringing 
                                activity as provided in paragraph (2).
                    ``(B) Election of damages.--With respect to a claim 
                or counterclaim of infringement, the claimant or 
                counterclaimant shall after the close of discovery and 
                in accordance with the schedule established by the 
                Copyright Claims Board pursuant to section 1405(j) 
                elect to pursue either actual damages and profits or 
                limited statutory damages as provided in subparagraph 
                (A).
                    ``(C) Other damages.--Damages for claims and 
                counterclaims other than infringement claims shall be 
                awarded in accordance with applicable law and shall be 
                subject to the limitation set forth in subparagraph 
                (D).
                    ``(D) Limitation on total monetary recovery.--
                Notwithstanding any other provision of law, a party who 
                pursues any one or more claims or counterclaims in any 
                single proceeding before the Copyright Claims Board may 
                not seek or recover in such proceeding a total monetary 
                recovery that exceeds the sum of $30,000, exclusive of 
                any attorneys' fees and costs that may be awarded under 
                section 1405(x)(2).
            ``(2) Agreement to cease infringing activity.--In any 
        proceeding where a party agrees to cease activity that is found 
        to be infringing, including removal or disabling of access to, 
        or destruction of, infringing materials, and such agreement is 
        reflected in the record, the Copyright Claims Board shall 
        include in its determination a requirement that such party 
        cease his or her infringing conduct.
            ``(3) Attorneys' fees and costs.--Notwithstanding any other 
        provision of law, except in the case of bad faith conduct as 
        provided in section 1405(x)(2), the parties to proceedings 
        before the Copyright Claims Board shall bear their own 
        attorneys' fees and costs.
    ``(f) Joint and Several Liability.--Parties to a proceeding before 
the Copyright Claims Board may be found jointly and severally liable if 
all such parties and relevant claims or counterclaims arise from the 
same activity or activities.
``Sec. 1404. Registration requirement
    ``(a) Application or Certificate.--No claim or counterclaim 
alleging infringement of an exclusive right of copyright may be 
asserted before the Copyright Claims Board unless the owner of the 
copyright has first delivered a completed application, deposit and the 
required fee for registration to the Copyright Office and either a 
registration certificate has been issued or has not been refused.
    ``(b) Certificate of Registration.--Notwithstanding any other 
provision of law, a claimant or counterclaimant in a proceeding before 
the Copyright Claims Board shall be eligible to recover actual damages 
and profits or limited statutory damages for infringement of a work 
under this chapter if the requirements of subsection (a) have been met: 
Provided, however, That--
            ``(1) the Copyright Claims Board shall not render a 
        determination in the proceeding until a registration 
        certificate has been issued by the Copyright Office, submitted 
        to the Copyright Claims Board and made available to the other 
        parties to the proceeding, and the other parties have been 
        provided an opportunity to address it;
            ``(2) if a proceeding cannot proceed further due to an 
        outstanding registration certificate for the work, it shall be 
        held in abeyance pending submission of the certificate to the 
        Copyright Claims Board; but if held in abeyance for more than 
        one year, the Copyright Claims Board may, upon providing 
        written notice to the parties and 30 days to respond, dismiss 
        the proceeding without prejudice; and
            ``(3) if the Copyright Claims Board receives notice that 
        registration has been refused by the Copyright Office, the 
        proceeding shall be dismissed without prejudice.
    ``(c) Presumption.--Where a certificate shows that registration of 
a work was made before or within 5 years of its first publication, the 
presumption set forth in section 410(c) of this title shall apply in a 
proceeding before the Copyright Claims Board, in addition to relevant 
principles of law under this title.
    ``(d) To ensure that actions before the Board proceed in a timely 
manner, the Register of Copyrights shall promulgate regulations 
providing the Copyright Office with the authority to issue a 
certificate of registration on an expedited basis. Such regulations 
shall treat applications for registration certificates pertaining to a 
proceeding before the Board on an expedited basis and separately from 
all other applications for certificates of registration, except those 
applications subject to special handling under 37 CFR 201.15.
``Sec. 1405. Conduct of proceedings
    ``(a) In General.--Proceedings of the Copyright Claims Board shall 
be conducted in accordance with this chapter and regulations as 
implemented by the Register of Copyrights, in addition to relevant 
principles of law under this title. To the extent it appears there may 
be conflicting judicial precedent on an issue of substantive copyright 
law that cannot be reconciled, the Copyright Claims Board shall follow 
the law of the Federal jurisdiction where the action could have been 
brought if filed in Federal district court, or, if it could have been 
brought in more than one jurisdiction, the jurisdiction that the 
Copyright Claims Board determines has the most significant ties to the 
parties and conduct at issue.
    ``(b) Record.--The Copyright Claims Board shall maintain records 
documenting the proceedings before it.
    ``(c) Centralized Process.--Proceedings before the Copyright Claims 
Board shall be conducted at the offices of the Copyright Claims Board 
without the requirement of in-person appearances by parties or others, 
and shall take place by means of written submissions and hearings and 
conferences accomplished via Internet-based applications and other 
telecommunications facilities: Provided, however, That in cases where 
physical or other nontestimonial evidence material to a proceeding 
cannot be furnished to the Copyright Claims Board through available 
telecommunications facilities, the Copyright Claims Board shall have 
the discretion to make alternative arrangements for the submission of 
such evidence that do not prejudice another party to the proceeding.
    ``(d) Representation.--A party to a proceeding before the Copyright 
Claims Board may, but is not required to be represented by--
            ``(1) an attorney; or
            ``(2) a law student who is qualified under applicable law 
        governing law students' representation of parties in legal 
        proceedings and who provides such representation on a pro bono 
        basis.
    ``(e) Commencement of Proceeding.--To commence a proceeding, a 
claimant shall, subject to such additional requirements as may be 
prescribed in regulations established by the Register of Copyrights, 
file a claim with the Copyright Claims Board, that--
            ``(1) includes a statement of material facts in support of 
        the claim;
            ``(2) is certified in accordance with subsection (x)(1); 
        and
            ``(3) is accompanied by a filing fee in such amount as may 
        be prescribed in regulations established by the Register of 
        Copyrights, which amount shall be at least $100, shall not 
        exceed the cost of filing an action in a United States district 
        court, and shall be established to further the goals of the 
        Copyright Claims Board.
    ``(f) Review of Claims and Counterclaims.--
            ``(1) Claims.--Upon filing, a claim shall be reviewed by a 
        Copyright Claims Attorney to ensure that it complies with 
        applicable regulations and this chapter, including the 
        following:
                    ``(A) If the claim is found to comply, the claimant 
                shall be so notified and instructed to proceed with 
                service of the claim as provided in subsection (g).
                    ``(B) If the claim is found not to comply, the 
                claimant shall be notified that the claim is deficient 
                and permitted to file an amended claim within 30 days 
                of the date of such notice without the requirement of 
                an additional filing fee. If the claimant files a 
                compliant claim within that period, he or she shall be 
                so notified and instructed to proceed with service of 
                the claim. If the claim is refiled within the 30-day 
                period but still fails to comply, the claimant will 
                again be notified that the claim is deficient and 
                provided a second opportunity to amend it within 30 
                days without the requirement of an additional filing 
                fee. If the claim is refiled again within the second 
                30-day period and is compliant, the claimant shall be 
                so notified and instructed to proceed with service, but 
                if the claim still fails to comply, upon confirmation 
                of its noncompliance by a Copyright Claims Officer, the 
                proceeding shall be dismissed without prejudice. The 
                Copyright Claims Board shall also dismiss without 
                prejudice any proceeding in which a compliant claim is 
                not filed within the applicable 30-day time period.
                    ``(C) For purposes of this paragraph, a claim 
                against an online service provider for infringement by 
                reason of storage of or referral or linking to 
                infringing material that may be subject to the 
                limitations on liability set forth in section 512(b), 
                section 512(c), or section 512(d) of this title, shall 
                be considered noncompliant unless the claimant affirms 
                in the statement required under subsection (e)(1) of 
                this section that he or she has previously notified the 
                service provider of the claimed infringement in 
                accordance with section 512(b)(2)(E), section 
                512(c)(3), or section 512(d)(3) of this title, as 
                applicable, and the service provider failed to remove 
                or disable access to the material expeditiously upon 
                the provision of such notice: Provided, however, That 
                if a claim is found to be noncompliant under this 
                subparagraph, the Copyright Claims Board shall provide 
                the claimant with information concerning the service of 
                such a notice pursuant to the relevant provision of 
                this title.
            ``(2) Counterclaims.--Upon filing and service of a 
        counterclaim, the counterclaim shall be reviewed by a Copyright 
        Claims Attorney to ensure that it complies with the provisions 
        of this chapter and applicable regulations. If the counterclaim 
        is found not to comply, the counterclaimant and other parties 
        shall be notified that it is deficient and the counterclaimant 
        permitted to file and serve an amended counterclaim within 30 
        days of the date of such notice. If the counterclaimant files 
        and serves a compliant counterclaim within that period, the 
        counterclaimant and other parties shall be so notified. If the 
        counterclaim is refiled and served within the 30-day period but 
        still fails to comply, the counterclaimant and other parties 
        will again be notified that it is deficient and the 
        counterclaimant provided a second opportunity to amend it 
        within 30 days. If the counterclaim is refiled and served again 
        within the second 30-day period and is compliant, the 
        counterclaimant and parties shall be so notified, but if the 
        counterclaim still fails to comply, upon confirmation of its 
        noncompliance by a Copyright Claims Officer, the counterclaim, 
        but not the proceeding, shall be dismissed without prejudice.
            ``(3) Dismissal for good cause.--The Copyright Claims Board 
        shall dismiss a proceeding without prejudice if, upon reviewing 
        a claim or counterclaim, or at any other time in a proceeding, 
        the Copyright Claims Board concludes that it is unsuitable for 
        determination by the Copyright Claims Board, including due to 
        the following:
                    ``(A) The failure to join a necessary party.
                    ``(B) The lack of an essential witness, evidence, 
                or expert testimony.
                    ``(C) Determination of a relevant issue of law or 
                fact that could exceed the competence of the Copyright 
                Claims Board.
    ``(g) Service of Notice and Claims.--To proceed with a claim 
against a respondent, a claimant must within 90 days of receiving 
notification to proceed with service file proof of service on the 
respondent with the Copyright Claims Board. To effectuate service on a 
respondent, the claimant must cause notice of the proceeding and a copy 
of the claim to be served on the respondent, either by personal service 
or pursuant to a waiver of personal service, as prescribed in 
regulations established by the Register of Copyrights. Such regulations 
shall include the following requirements and conditions:
            ``(1) The notice of the proceeding shall adhere to a 
        prescribed form and shall set forth the nature of the Copyright 
        Claims Board and proceeding, the respondent's right to opt out, 
        and the consequences of opting out and not opting out, 
        including a prominent statement that, by not opting out within 
        the 30-day period, the respondent--
                    ``(A) will forgo the opportunity to have the 
                dispute decided by a court created under article III of 
                the Constitution of the United States; and
                    ``(B) will be waiving the right to a jury trial 
                regarding the dispute.
            ``(2) The copy of the claim served on the respondent shall 
        be as it was filed with the Copyright Claims Board.
            ``(3) Personal service of a notice and claim may be 
        effected by an individual who is not a party to the proceeding 
        and is over the age of 18.
            ``(4) An individual, other than a minor or incompetent 
        individual, may be served by--
                    ``(A) following State law for serving a summons in 
                an action brought in courts of general jurisdiction in 
                the State where service is made; or
                    ``(B) doing any of the following:
                            ``(i) Delivering a copy of the notice and 
                        claim to the individual personally.
                            ``(ii) Leaving a copy of each at the 
                        individual's dwelling or usual place of abode 
                        with someone of suitable age and discretion who 
                        resides there.
                            ``(iii) Delivering a copy of each to an 
                        agent authorized by appointment or by law to 
                        receive service of process.
            ``(5) A corporation, partnership or unincorporated 
        association that is subject to suit in courts of general 
        jurisdiction under a common name may be served by--
                    ``(A) following State law for serving a summons in 
                an action brought in courts of general jurisdiction in 
                the State where service is made; or
                    ``(B) delivering a copy of the notice and claim to 
                an officer, a managing or general agent or any other 
                agent authorized by appointment or by law to receive 
                service of process in an action brought in courts of 
                general jurisdiction and, if the agent is one 
                authorized by statute and the statute so requires, by 
                also mailing a copy of each to the respondent.
            ``(6) To request a waiver of personal service, the claimant 
        may notify a respondent by first class mail or other reasonable 
        means that a proceeding has been commenced in accordance with 
        regulations established by the Register of Copyrights, which 
        shall include the following:
                    ``(A) Any such request shall be in writing and 
                addressed to the respondent, and be accompanied by a 
                prescribed notice of the proceeding and copy of the 
                claim as filed with the Copyright Claims Board, as well 
                as a prescribed form for waiver of personal service, 
                and a prepaid or costless means of returning the form.
                    ``(B) The request shall state the date it was sent 
                and provide the respondent 30 days to return the signed 
                waiver form, which signed waiver shall constitute 
                acceptance and proof of service as of the date it is 
                signed for purposes of this subsection.
            ``(7) A respondent's waiver of personal service shall not 
        constitute a waiver of the respondent's right to opt out of the 
        proceeding: Provided, however, That a respondent who timely 
        waives personal service and does not opt out shall be allowed 
        an additional 30 days beyond the amount of time normally 
        permitted under the applicable procedures of the Copyright 
        Claims Board to submit a substantive response to the claim, 
        including any defenses and counterclaims.
            ``(8) A minor or an incompetent individual may only be 
        served by following State law for serving a summons or like 
        process on such an individual in an action brought in the 
        courts of general jurisdiction of the State where service is 
        made.
            ``(9) Service of a claim and waiver of personal service may 
        only be effected within the United States.
    ``(h) Opt-Out Procedure.--Upon being properly served with a notice 
and claim, a respondent who chooses to opt out of the proceeding shall 
have 30 days from the date of service in which to provide written 
notice of such choice to the Copyright Claims Board, in accordance with 
regulations established by the Register of Copyrights. If proof of 
service has been filed by the claimant and the respondent does not 
submit an opt-out notice to the Copyright Claims Board within 30 days 
of service, the proceeding shall be deemed an active proceeding and the 
respondent shall be bound by the result to the extent provided under 
section 1406(a). If the respondent opts out during that period, the 
proceeding shall be dismissed without prejudice: Provided, however, 
That in exceptional circumstances and upon written notice to the 
claimant, the Copyright Claims Board may extend such 30-day period in 
the interests of justice.
    ``(i) Service of Other Documents.--Other documents submitted or 
relied upon in the proceeding shall be served as provided in 
regulations established by the Register of Copyrights.
    ``(j) Scheduling.--Upon confirmation that a proceeding has become 
an active proceeding, the Copyright Claims Board shall issue a schedule 
for future conduct of the proceeding. A schedule issued by the 
Copyright Claims Board may be amended by the Copyright Claims Board in 
the interests of justice.
    ``(k) Conferences.--One or more Copyright Claims Officers may hold 
a conference to address case management or discovery issues in a 
proceeding: Provided, however, That such conference shall not be 
addressed to ultimate issues of fact or law. Any such conference shall 
be noted upon the record of the proceeding and may be recorded or 
transcribed.
    ``(l) Party Submissions.--There shall be no formal motion practice 
in a Copyright Claims Board proceeding: Provided, however, That, 
subject to applicable regulations and the procedures of the Copyright 
Claims Board--
            ``(1) the parties to a proceeding shall be permitted to 
        make requests to the Copyright Claims Board to address case 
        management and discovery matters, and submit responses thereto; 
        and
            ``(2) the Copyright Claims Board may request or permit 
        parties to make submissions addressing relevant questions of 
        fact or law, or other matters, including matters raised sua 
        sponte by the Copyright Claims Officers, and offer responses 
        thereto.
    ``(m) Discovery.--Discovery shall be limited to the production of 
relevant information and documents, written interrogatories, and 
written requests for admission, as further provided in regulations 
established by the Register of Copyrights: Provided, however, That--
            ``(1) upon request of a party, and for good cause shown, 
        the Copyright Claims Board shall have the discretion to approve 
        additional limited discovery in particular matters, and may 
        request specific information and documents from participants in 
        the proceeding and voluntary submissions from nonparticipants;
            ``(2) upon request of a party, and for good cause shown, 
        the Copyright Claims Board may issue a protective order to 
        limit the disclosure of documents or testimony that contain 
        confidential information; and
            ``(3) after providing notice and an opportunity to respond, 
        and upon good cause shown, the Copyright Claims Board may apply 
        an adverse inference with respect to disputed facts against a 
        party who has failed timely to provide discovery materials in 
        response to a proper request for materials that could be 
        relevant to such facts.
    ``(n) Evidence.--The Copyright Claims Board may consider the 
following types of evidence, which may be admitted without application 
of formal rules of evidence:
            ``(1) Documentary and other nontestimonial evidence that is 
        relevant to the claims, counterclaims or defenses in a 
        proceeding.
            ``(2) Testimonial evidence, submitted under penalty of 
        perjury in written form or in accordance with subsection (o), 
        limited to statements of the parties and nonexpert witnesses, 
        that is relevant to the claims, counterclaims and defenses in a 
        proceeding: Provided, however, That in exceptional cases expert 
        witness testimony or other types of testimony may be permitted 
        by the Copyright Claims Board for good cause shown.
    ``(o) Hearings.--The Copyright Claims Board may conduct a hearing 
to receive oral presentations on issues of fact or law from parties and 
witnesses to a proceeding, including oral testimony: Provided, however, 
That--
            ``(1) any such hearing shall be attended by at least two of 
        the Copyright Claims Officers;
            ``(2) the hearing shall be noted upon the record of the 
        proceeding and, subject to paragraph (3), may be recorded or 
        transcribed as deemed necessary by the Copyright Claims Board; 
        and
            ``(3) a recording or transcript of the hearing shall be 
        made available to a Copyright Claims Officer who is not in 
        attendance.
    ``(p) Voluntary Dismissal.--
            ``(1) By claimant.--Upon written request of a claimant 
        received prior to a respondent's filing of a response to a 
        claim, the Copyright Board shall dismiss the proceeding, or a 
        claim or respondent, as requested, such dismissal to be without 
        prejudice.
            ``(2) By counterclaimant.--Upon written request of a 
        counterclaimant received prior to a claimant's filing of a 
        response to a counterclaim, the Copyright Claims Board shall 
        dismiss the counterclaim, such dismissal to be without 
        prejudice.
    ``(q) Settlement.--At any time in an active proceeding some or all 
of the parties may--
            ``(1) jointly request a conference with a Copyright Claims 
        Officer for the purpose of facilitating settlement discussions; 
        or
            ``(2) submit to the Copyright Claims Board an agreement 
        providing for settlement and dismissal of some or all of the 
        claims and counterclaims in the proceeding, which submission 
        may also include a request that the Copyright Claims Board 
        adopt some or all of the terms of the parties' settlement in a 
        final determination.
    ``(r) Factual Findings.--Subject to subsection (m)(3), the 
Copyright Claims Board shall make factual findings based upon a 
preponderance of the evidence.
    ``(s) Determinations.--
            ``(1) Nature and contents.--A determination rendered by the 
        Copyright Claims Board in a proceeding shall--
                    ``(A) be reached by a majority of the Copyright 
                Claims Board;
                    ``(B) be in writing, and include an explanation of 
                the factual and legal basis of the decision therein;
                    ``(C) pursuant to section 1403(e)(2), set forth any 
                terms by which a respondent or counterclaim respondent 
                has agreed to cease infringing activity;
                    ``(D) pursuant to subsection (q)(2) and to the 
                extent agreed by the parties, set forth the terms of 
                any settlement to the extent requested by the parties; 
                and
                    ``(E) include a clear statement of all damages and 
                other relief awarded, including pursuant to 
                subparagraphs (C) and (D).
            ``(2) Dissent.--A Copyright Claims Officer who dissents 
        from a decision contained in a determination may append a 
        statement setting forth the grounds for his or her dissent.
            ``(3) Publication.--Final determinations of the Copyright 
        Claims Board shall be made available on a publicly accessible 
        website with other records to be made available to the public 
        in accordance with law: Provided, however, That such records 
        may be redacted by the Copyright Claims Board to protect 
        confidential information that is the subject of a protective 
        order under subsection (m)(2).
    ``(t) Respondent's Default.--Where a proceeding has been deemed an 
active proceeding but the respondent has failed to appear or has ceased 
participating in the proceeding, as demonstrated by his or her failure 
to meet one or more deadlines or requirements set forth in the schedule 
adopted by the Copyright Claims Board pursuant to subsection (j) 
without justifiable cause, the Copyright Claims Board may enter a 
default determination, including the dismissal of any counterclaim 
asserted by a respondent, as follows and in accordance with such other 
requirements as the Register of Copyrights may prescribe by regulation:
            ``(1) The Copyright Claims Board shall require the claimant 
        to submit relevant evidence and other information in support of 
        his or her claim and any asserted damages and, upon review of 
        such evidence and any other requested submissions from the 
        claimant, shall determine whether the materials so submitted 
        are sufficient to support a finding in favor of the claimant 
        under applicable law and, if so, the appropriate relief and 
        damages, if any, to be awarded.
            ``(2) If the claimant has met his or her burden under 
        paragraph (1), the Copyright Claims Board shall prepare a 
        proposed default determination and provide written notice to 
        the respondent at all addresses, including email addresses, 
        reflected in the records of the proceeding before the Copyright 
        Claims Board, concerning the pendency of a default 
        determination by the Copyright Claims Board and the legal 
        significance of such determination. Such notice shall be 
        accompanied by the proposed default determination and provide 
        that the respondent has 30 days from the date of the notice to 
        submit any evidence or other information in opposition to the 
        proposed default determination.
            ``(3) If the respondent responds to the notice provided 
        under paragraph (2) within the 30-day period, the Copyright 
        Claims Board shall consider respondent's submissions and, after 
        allowing the other parties to address such submissions, 
        maintain or amend its proposed determination as appropriate, 
        and the resulting determination shall not be a default 
        determination.
            ``(4) If the respondent fails to respond to the notice 
        provided under paragraph (2), the Copyright Claims Board shall 
        proceed to issue the default determination as a final 
        determination. Thereafter, the respondent may only challenge 
        such determination to the extent permitted under section 
        1407(c): Provided, however, That prior to the initiation of any 
        additional proceedings under section 1407, the Copyright Claims 
        Board shall have the discretion to vacate the default 
        determination in the interests of justice.
    ``(u) Claimant's Failure To Proceed.--
            ``(1) Failure to complete service.--If a claimant fails to 
        complete service on a respondent within the 90-day period as 
        prescribed in subsection (g), that respondent shall be 
        dismissed from the proceeding without prejudice; and if a 
        claimant fails to complete service on all respondents within 
        the 90-day period, the proceeding shall be dismissed by the 
        Copyright Claims Board without prejudice.
            ``(2) Failure to prosecute.--If a claimant fails to proceed 
        in an active proceeding, as demonstrated by his or her failure 
        to meet one or more deadlines or requirements set forth in the 
        schedule adopted by the Copyright Claims Board pursuant to 
        subsection (j) without justifiable cause, the Copyright Claims 
        Board may, upon providing written notice to the claimant and 30 
        days to respond, issue a determination dismissing the 
        claimants' claims, which shall include an award of attorneys' 
        fees and costs if appropriate under subsection (x)(2). 
        Thereafter, the claimant may only challenge such determination 
        to the extent permitted under section 1407(c): Provided, 
        however, That prior to the initiation of any additional 
        proceedings under section 1407, the Copyright Claims Board 
        shall have the discretion to vacate the determination of 
        dismissal in the interests of justice.
    ``(v) Reconsideration.--A party may, within 30 days of the date of 
issuance of a final determination by the Copyright Claims Board, submit 
a written request for reconsideration of, or an amendment to, such 
determination if the party identifies a clear error of law or fact 
material to the outcome, or a technical mistake. After providing the 
other parties an opportunity to address such request, the Copyright 
Claims Board shall respond by denying the request or issuing an amended 
final determination.
    ``(w) Review by Register.--A party who has been denied 
reconsideration by the Copyright Claims Board may, within 30 days of 
the date of such denial, request review by the Register of Copyrights 
in accordance with regulations established by the Register of 
Copyrights, which regulations shall provide for a reasonable filing 
fee. The Register's review shall be limited to consideration of whether 
the Copyright Claims Board abused its discretion in denying 
reconsideration. After providing the other parties an opportunity to 
address the request, the Register shall respond by denying the request 
or remanding the proceeding to the Copyright Claims Board for 
reconsideration of identified issues and issuance of an amended final 
determination, which amended final determination shall not be subject 
to further consideration or review other than pursuant to section 
1407(c).
    ``(x) Conduct of Parties and Attorneys.--
            ``(1) Certification.--The Register of Copyrights shall 
        establish regulations concerning certification of the accuracy 
        and truthfulness of statements made by participants in 
        proceedings before the Copyright Claims Board.
            ``(2) Bad faith conduct.--Notwithstanding any other 
        provision of law, in any proceeding in which a determination is 
        rendered and--
                    ``(A) it is established that a party pursued a 
                claim, counterclaim or defense for a harassing or other 
                improper purpose, or without reasonable basis in law or 
                fact; or
                    ``(B) the claimant's claim is dismissed for failure 
                to prosecute pursuant to subsection (u)(2), unless 
                inconsistent with the interests of justice, the 
                Copyright Claims Board shall in such determination 
                award reasonable attorneys' fees and costs to any 
                adversely affected party or parties in a total amount 
                not to exceed $5,000: Provided, however, that if an 
                adversely affected party appeared pro se in the 
                proceeding, the award to that party shall be of costs 
                only and no more than $2,500.
            ``(3) If it is established that on more than one occasion 
        within a 12 month period a party pursued a claim, counterclaim 
        or defense before the Board for a harassing or other improper 
        purpose, or without reasonable basis in law or fact, such party 
        shall be barred from initiating a claim before the Board for a 
        period of 12 months.
    ``(y) Notwithstanding anything to the contrary in this chapter, the 
Register of Copyrights may promulgate regulations allowing for the 
disposition of any claim in which total damages sought are $5,000 or 
less (exclusive of attorneys' fees and costs). At a minimum, any such 
regulations shall provide--
            ``(1) for one copyright claims officer to consider and 
        issue a determination with regard to the claim; and
            ``(2) for which a copyright claims attorney shall review 
        the claim and determine whether the case shall be heard by one 
        officer or the Board.
    ``(z) A claimant may request the Board to issue a subpoena to a 
service provider for identification of an alleged infringer of 
claimant's copyrighted work. The Copyright Office shall promulgate 
regulations governing, at minimum, the issuance of the subpoena, the 
contents of the request, the contents of the subpoena, and the 
obligations of a service provider who is issued a subpoena. The 
regulations shall further require that the claimant seeking the 
subpoena must make a sworn declaration to the effect that the purpose 
for which the subpoena is sought is to obtain the identity of an 
alleged infringer and that such information will only be used for the 
purpose of protecting rights under this Act. Such subpoenas shall be 
enforceable by the United States District Court for the District of 
Columbia.
``Sec. 1406. Effect of proceeding
    ``(a) Determination.--Subject to the reconsideration and review 
processes afforded by sections 1405(v) and 1405(w), respectively, and 
section 1407(c), the rendering of a final determination by the 
Copyright Claims Board in a proceeding, including a default 
determination or determination based on failure to prosecute, shall, 
solely with respect to the parties to such determination, preclude 
relitigation before any court or tribunal, or before the Copyright 
Claims Board, of the claims and counterclaims asserted and finally 
determined by such determination, and may be relied upon for such 
purpose in a future action or proceeding arising from the same specific 
activity or activities: Provided, however, That--
            ``(1) a determination of the Copyright Claims Board shall 
        not preclude litigation or relitigation as between the same or 
        different parties before any court or tribunal, or the 
        Copyright Claims Board, of the same or similar issues of fact 
        or law in connection with claims or counterclaims not asserted 
        and finally determined by the determination of the Copyright 
        Claims Board;
            ``(2) a determination of ownership of a copyrighted work 
        for purposes of resolving a matter before the Copyright Claims 
        Board shall not be relied upon, and shall have no preclusive 
        effect, in any other action or proceeding before any other 
        court or tribunal, including the Copyright Claims Board; and
            ``(3) except to the extent permitted in this subsection and 
        section 1407, no determination of the Copyright Claims Board 
        shall be cited or relied upon as legal precedent in any other 
        action or proceeding before any court or tribunal, including 
        the Copyright Claims Board.
    ``(b) Other Materials in Proceeding.--Except as permitted under 
this section and section 1407, a submission or statement of a party or 
witness made in connection with a proceeding before the Copyright 
Claims Board, including a proceeding that is dismissed, shall not be 
cited or relied upon in, or serve as the basis of, any action or 
proceeding concerning rights or limitations on rights under this title 
before any court or tribunal, including the Copyright Claims Board.
    ``(c) With Respect to Section 512(g).--Notwithstanding any other 
provision of law, the commencement of a proceeding by a claimant before 
the Copyright Claims Board against a subscriber of a service provider 
that seeks a declaration of infringement concerning material that has 
been removed or to which access has been disabled by the service 
provider in response to a notification of claimed infringement by the 
claimant pursuant to section 512(c)(1)(C) of this title shall be a 
basis to preclude the replacement of such material by the service 
provider pursuant to section 512(g) of this title if notice of the 
commencement of the Copyright Claims Board proceeding is provided by 
the claimant to the service provider's designated agent not less than 
10 nor more than 14 business days following receipt of a counter 
notification by the service provider pursuant to section 512(g) of this 
title.
    ``(d) Failure To Assert Counterclaim.--The failure or inability to 
assert a counterclaim in a proceeding before the Copyright Claims Board 
shall not preclude its assertion in a subsequent court action or 
proceeding before the Copyright Claims Board.
    ``(e) Opt-Out or Dismissal of Party.--If a party has timely opted 
out of a proceeding under section 1405(h) or is dismissed from a 
proceeding prior to the issuance of a final determination by the 
Copyright Claims Board, the determination shall not be binding upon and 
shall have no preclusive effect with respect to that party.
``Sec. 1407. Review and confirmation by district court
    ``(a) In General.--In any proceeding in which a party has failed to 
pay monies as required or otherwise comply with the relief awarded in a 
final determination of the Copyright Claims Board, including a default 
determination or a determination based on failure to prosecute, the 
aggrieved party may, within one year of the issuance of such final 
determination, resolution of any reconsideration by the Copyright 
Claims Board or review by the Register of Copyrights, or issuance of an 
amended final determination, whichever occurs last, apply to the United 
States District Court for the District of Columbia or any other federal 
district court of competent jurisdiction for an order confirming the 
final relief awarded and reducing such award to judgment. The court 
shall grant such order and direct entry of judgment unless the 
determination is or has been vacated, modified or corrected as 
permitted under subsection (c). If the United States District Court for 
the District of Columbia or any other federal district court of 
competent jurisdiction issues an order confirming the relief awarded by 
the Board, the Court must impose on the party who failed to pay damages 
or otherwise comply with the relief, the reasonable expenses required 
to secure such order, including attorney fees, incurred by the 
aggrieved party.
    ``(b) Filing Procedures.--
            ``(1) Notice of the application for confirmation of a 
        determination of the Copyright Claims Board and entry of 
        judgment shall be provided to all parties to the proceeding 
        before the Copyright Claims Board, in accordance with the 
        procedures applicable to service of a motion in United States 
        District Court for the District of Columbia.
            ``(2) The application shall include a certified copy of the 
        final or amended final determination of the Copyright Claims 
        Board, as reflected in the records of the Copyright Claims 
        Board, following any process of reconsideration or review by 
        the Register of Copyrights, to be confirmed and rendered to 
        judgment, as well as a declaration by the applicant under 
        penalty of perjury that it is a true and correct copy of such 
        determination, the date it was issued, and whether the 
        applicant is aware of any other proceedings before the United 
        States District Court concerning the same determination of the 
        Copyright Claims Board.
    ``(c) Challenges to the Determination.--
            ``(1) Bases for challenge.--Upon application of a party to 
        the Copyright Claims Board proceeding within 90 days of the 
        issuance of a final or amended final determination by the 
        Copyright Claims Board following any process of reconsideration 
        or review by the Register of Copyrights, the United States 
        District Court for the District of Columbia may issue an order 
        vacating, modifying or correcting a determination of the 
        Copyright Claims Board in the following cases:
                    ``(A) Where the determination was issued or as a 
                result of fraud, corruption, misrepresentation, or 
                other misconduct.
                    ``(B) Where the Copyright Claims Board exceeded its 
                authority or failed to render a final and definite 
                determination concerning the subject matter at issue.
                    ``(C) In the case of a default determination or 
                determination based on failure to prosecute, where it 
                is established that the default or failure was due to 
                excusable neglect.
            ``(2) Procedure to challenge.--
                    ``(A) Notice of the application to challenge a 
                determination of the Copyright Claims Board shall be 
                provided to all parties to the proceeding before the 
                Copyright Claims Board, in accordance with the 
                procedures applicable to service of a motion in United 
                States District Court for the District of Columbia.
                    ``(B) The application shall include a certified 
                copy of the final or amended final determination, as 
                reflected in the records of the Copyright Claims Board 
                following any process of reconsideration or review by 
                the Register of Copyrights, that is the subject of the 
                application, as well as a declaration by the applicant 
                under penalty of perjury that it is a true and correct 
                copy of such determination, the date it was issued, the 
                basis for challenge under subsection (c)(1), and 
                whether the applicant is aware of any other proceedings 
                before the United States District Court concerning the 
                same determination of the Copyright Claims Board. For 
                the purposes of the application, any judge who might 
                make an order to stay the proceedings in an action 
                brought in the same court, may make an order, to be 
                served with the notice of application, staying 
                proceedings to enforce the award.
``Sec. 1408. Relationship to other district court actions
    ``(a) Stay of District Court Proceedings.--A United States district 
court shall order a stay of proceedings or such other relief as it 
deems appropriate with respect to any claim brought before it that is 
already the subject of a pending active proceeding before the Copyright 
Claims Board.
    ``(b) District Court Cost and Fee Awards.--In any case before a 
United States district court in which the court is considering whether 
to award costs or attorneys' fees to a prevailing party pursuant to 
section 505 of this title, the district court may in its discretion 
take into account, among other relevant factors, whether the 
nonprevailing party had the option and could have chosen to proceed 
before the Copyright Claims Board in lieu of the district court.
    ``(c) Alternative Dispute Resolution Process.--The Copyright Claims 
Board shall qualify as an alternative dispute resolution process under 
section 651 of title 28 for purposes of referral of eligible cases by 
United States district courts upon consent of the parties.
``Sec. 1409. Implementation by Copyright Office
    ``(a) Regulations.--
            ``(1) Implementation generally.--The Register of Copyrights 
        shall establish regulations to implement the Copyright Claims 
        Board as contemplated by this chapter, including the 
        establishment of the fees prescribed by sections 1405(e)(3) and 
        1405(w), which authority shall not limit the Register's more 
        general authority to establish fees for services in accordance 
        with section 708 of this title. All fees received by the 
        Copyright Office in connection with the activities under this 
        chapter shall be deposited by the Register and credited to the 
        appropriations for necessary expenses of the Office in 
        accordance with section 708(d) of this title.
            ``(2) Limits on monetary relief.--The Register may conduct 
        a rulemaking to adjust the limits on monetary recovery or 
        attorneys' fees and costs that may be awarded under this 
        chapter to further the goals of the Copyright Claims Board: 
        Provided, however, That any resulting rule that makes such an 
        adjustment shall become effective at the end of a period of 120 
        days after the rule is submitted to Congress and only if 
        Congress does not enact a law within such 120-day period that 
        provides in substance that Congress does not approve of the new 
        rule.
    ``(b) Necessary Facilities.--Subject to applicable law, the 
Register of Copyrights may retain outside vendors to establish 
Internet-based, teleconferencing and other facilities required to 
operate the Copyright Claims Board.
``Sec. 1410. Funding
    ``There are authorized to be appropriated such sums as may be 
necessary to pay the costs incurred by the Copyright Office under this 
chapter that are not covered by fees collected for services rendered 
under this chapter, including the costs of establishing and maintaining 
the Copyright Claims Board and its facilities.
``Sec. 1411. Definitions
    ``As used in this chapter--
            ``(1) the term `party' refers to both a party and the 
        party's attorney, as applicable;
            ``(2) the term `person' (including `his' and `her') refers 
        to both an individual and an entity that is amenable to legal 
        process under applicable law; and
            ``(3) the term `United States' has the meaning given in 
        section 101 of this title.''.
    (b) Clerical Amendment.--The table of chapters for title 17, United 
States Code, is amended by adding after the item relating to chapter 13 
the following new item:

``14. Copyright Small Claims................................    1401''.

SEC. 3. IMPLEMENTATION.

    The Copyright Claims Board shall begin operation no later than one 
year after of the date of the enactment of this Act.

SEC. 4. STUDY.

    Not later than 3 years after the issuance of the first 
determination by the Copyright Claims Board, the Register of Copyrights 
shall deliver a study to Congress that addresses--
            (1) the use and efficacy of the Copyright Claims Board in 
        resolving copyright claims;
            (2) whether adjustments to the authority of the Copyright 
        Claims Board, including eligible claims and works and 
        applicable damages limitations, are necessary or advisable;
            (3) whether greater allowance should be made to permit 
        awards of attorneys' fees and costs to prevailing parties, 
        including potential limitations on such awards;
            (4) potential mechanisms to assist copyright owners with 
        small claims in ascertaining the identity and location of 
        unknown online infringers;
            (5) whether the Copyright Claims Board should be expanded 
        to offer mediation or other nonbinding alternative dispute 
        resolution services to interested parties; and
            (6) such other matters as the Register of Copyrights 
        believes may be pertinent concerning the Copyright Claims 
        Board.

SEC. 5. SEVERABILITY.

    If any provision of this Act is declared unconstitutional, the 
validity of the remainder of this Act shall not be affected.
                                 <all>