Copyright Royalty and Distribution Reform Act of 2004

Bill: 108-hr-1417
Sponsor: Rep. Smith, Lamar [R-TX-21]
Introduced: 2003-03-25 in the House
Policy area: Commerce
Subjects: Administrative fees
Administrative law judges
Administrative procedure
Administrative remedies
Appellate courts
Arts, Culture, Religion
Cable television
Claims
Communication satellites
Congress
Congressional agencies
Congressional reorganization
Copyright
Cost of living adjustments
Discovery (Law)
Economics and Public Finance
Electronic government information
Evidence (Law)
Federal employees
Federal libraries
Fees
Government Operations and Politics
Government publicity
Hearsay evidence
Intellectual property
Internet
Judicial review
Law
Layoffs
Legal fees
Library of Congress
License agreements
Music
Science, Technology, Communications
Sound recording and reproducing
Telecommunication rates
Television broadcasting
Television relay systems
Web sites

Summary:
action_date: 2003-03-25
text: Copyright Royalty and Distribution Reform Act of 2003 - Amends Federal copyright law to replace the occasional three-member copyright arbitration royalty panels with a full-time, independent Copyright Royalty Judge, appointed by the Librarian of Congress. Requires the Judge to appoint two full-time staff assistants.
Revises requirements for copyright royalty proceedings.
action_date: 2004-01-30
text: 
Copyright Royalty and Distribution Reform Act of 2003 - (Sec. 3) Amends Federal copyright law to repeal requirements regarding the establishment and purpose of copyright arbitration royalty panels and replaces them with requirements setting forth the appointment and functions of Copyright Royalty Judges. Replaces the occasional three-member copyright arbitration royalty panels with three full-time Copyright Royalty Judges, appointed by the Librarian of Congress. Directs the Librarian of Congress to appoint one of the three as the Chief Copyright Royalty Judge, and in making such appointments, to consult with the Register of Copyrights. Requires Copyright Royalty Judges to: (1) accept or reject certain royalty claims filed on the basis of timeliness or the failure to establish the basis for a claim; (2) accept to reject rate adjustment petitions and petitions to participate; (3) determine the status of digital audio recording devices and digital audio interface devices; and (4) adopt, except under specified conditions, as the basis for statutory terms and rates or as a basis for the distribution of statutory royalty payments, an agreement concerning such matters reached among some or all of the participants in a proceeding. Authorizes Copyright Royalty Judges to: (1) make any necessary procedural or evidentiary rulings in any proceeding; and (2) before commencing a proceeding, to make any such rulings that would apply to the proceedings; and (3) consult with the Register of Copyrights in making any rulings under this Act. Places the offices of the Judges and staff in the Library of Congress.
 
Requires that: (1) each Copyright Royalty Judge be an attorney who has at least seven years of legal experience; (2) the Chief Copyright Royalty Judge have at least five years of experience in adjudications, arbitrations, or court trials; and (3) of the two other Judges, one have significant knowledge of copyright law and the other have significant knowledge of economics. Allows an individual to serve as a Judge only if such individual is free of any financial conflict of interest. Requires the Chief Judge to hire three full time staff members to assist the Judges. 
 
Requires that the terms of the Copyright Royalty Judges each be six years, except of the individuals first appointed, the Chief Judge shall be appointed to a six-year term, and of the remaining Judges, one shall be appointed to a two-year term and the other shall be appointed to a four-year term. Allows the Librarian of Congress to appoint an interim Judge to fill a vacancy in the position of Copyright Royalty Judge or when a Judge is temporarily unable to perform his or her duties. 
Gives Copyright Royalty Judges full independence in making determinations concerning adjustments and determinations of copyright royalty rates and terms, the distribution of copyright royalties, the acceptance or rejection of royalty claims, rate adjustment petitions, and petitions to participate, and in issuing other rulings under this Act, except that the Judges may consult with the Register of Copyrights on any matter other than a question of fact. Requires that any such consultations between the Judges and the Register of Copyrights on any question of law be in writing or on the record. Requires consultation with the Register of Copyrights on novel questions of law and requires the Register to submit, and make public, a written opinion. Prohibits any Judge from undertaking duties inconsistent with his or her duties and responsibilities as Judge. Instructs the Librarian of Congress to adopt regulations regarding the standards of conduct which shall govern the Judges and the proceedings under this Act. 
Sets forth requirements regarding the proceedings of Copyright Royalty Judges. Requires the Judges to act en banc, but permits the Chief Judge to designate a Judge to preside individually over collateral and administrative matters. Outlines the procedures for the participation of persons in such proceedings, including by providing for the filing of petitions to participate and filing fees of $150. Provides for a voluntary negotiation period among participants in a proceeding. Authorizes the Judges to issue regulations for carrying out their functions. Mandates, not later than 120 days after the Judges, or interim Judges as the case may be, are first appointed, such judges to issue regulations to govern proceedings under this Act. Requires such regulations to include permitting discovery periods in proceedings and requiring the Judges to order settlement conferences in proceedings to facilitate the presentation of offers of settlement. Provides for judicial review of any determination made by the Judges. Authorizes appropriations to pay the costs of proceedings under this Act not covered by the filing fees collected from the participants. 
Prohibits applying a certain reduction in force for full time legislative branch employees under the Legislative Branch Appropriations Act, 1994, to employee positions in the Library of Congress that are required to be filled to carry out specified sections of Federal copyright law. 
Revises provisions for the institution of proceedings. Sets forth requirements for the timing of the initiation or commencement of proceedings. 
Sets forth a rule regarding the adjustment of certain royalty rates and terms pursuant to voluntary negotiations. 
(Sec. 6) Sets forth the effective date for this Act. Requires the Librarian of Congress to appoint interim Copyright Royalty Judges within 90 days after such date of enactment. Sets forth a requirement concerning the effective periods for certain royalty terms and rates.
action_date: 2004-03-03
text: 
Copyright Royalty and Distribution Reform Act of 2004 - (Sec. 3) Amends Federal copyright law to repeal requirements regarding the establishment and purpose of copyright arbitration royalty panels and replaces them with requirements setting forth the appointment and functions of Copyright Royalty Judges. Replaces the occasional three-member copyright arbitration royalty panels with three full-time Copyright Royalty Judges, appointed by the Librarian of Congress. Directs the Librarian of Congress to appoint one of the three as the Chief Copyright Royalty Judge, and in making such appointments, to consult with the Register of Copyrights. Requires Copyright Royalty Judges to: (1) accept or reject certain royalty claims filed on the basis of timeliness or the failure to establish the basis for a claim; (2) accept to reject rate adjustment petitions and petitions to participate; (3) determine the status of digital audio recording devices and digital audio interface devices; and (4) adopt, except under specified conditions, as the basis for statutory terms and rates or as a basis for the distribution of statutory royalty payments, an agreement concerning such matters reached among some or all of the participants in a proceeding. Authorizes Copyright Royalty Judges to: (1) make any necessary procedural or evidentiary rulings in any proceeding; and (2) before commencing a proceeding, to make any such rulings that would apply to the proceedings; and (3) consult with the Register of Copyrights in making any rulings under this Act. Places the offices of the Judges and staff in the Library of Congress.
 
Requires that: (1) each Copyright Royalty Judge be an attorney who has at least seven years of legal experience; (2) the Chief Copyright Royalty Judge have at least five years of experience in adjudications, arbitrations, or court trials; and (3) of the two other Judges, one have significant knowledge of copyright law and the other have significant knowledge of economics. Allows an individual to serve as a Judge only if such individual is free of any financial conflict of interest. Requires the Chief Judge to hire three full time staff members to assist the Judges. 
 
Requires that the terms of the Copyright Royalty Judges each be six years (except that of the individuals first appointed, the Chief Judge shall be appointed to a six-year term, and of the remaining Judges, one shall be appointed to a two-year term and the other shall be appointed to a four-year term). Allows the Librarian of Congress to appoint an interim Judge to fill a vacancy in the position of Copyright Royalty Judge or when a Judge is temporarily unable to perform his or her duties. 
Gives Copyright Royalty Judges full independence in making determinations concerning adjustments and determinations of copyright royalty rates and terms, the distribution of copyright royalties, the acceptance or rejection of royalty claims, rate adjustment petitions, and petitions to participate, and in issuing other rulings under this Act, except that the Judges may consult with the Register of Copyrights on any matter other than a question of fact. Requires that any such consultations between the Judges and the Register of Copyrights on any question of law be in writing or on the record. Requires consultation with the Register of Copyrights on novel questions of law and requires the Register to submit, and make public, a written opinion. Prohibits any Judge from undertaking duties inconsistent with his or her duties and responsibilities as Judge. Instructs the Librarian of Congress to adopt regulations regarding the standards of conduct which shall govern the Judges and the proceedings under this Act. 
Sets forth requirements regarding the proceedings of Copyright Royalty Judges. Requires the Judges to act en banc, but permits the Chief Judge to designate a Judge to preside individually over collateral and administrative matters. Outlines the procedures for the participation of persons in such proceedings, including by providing for the filing of petitions to participate and filing fees of $150. Provides for a voluntary negotiation period among participants in a proceeding. Authorizes the Judges to issue regulations for carrying out their functions. Mandates, not later than 120 days after the Judges, or interim Judges as the case may be, are first appointed, such judges to issue regulations to govern proceedings under this Act. Requires such regulations to include permitting discovery periods in proceedings and requiring the Judges to order settlement conferences in proceedings to facilitate the presentation of offers of settlement. Provides for judicial review of any determination made by the Judges. Authorizes appropriations to pay the costs of proceedings under this Act not covered by the filing fees collected from the participants. 
Prohibits applying a certain reduction in force for full time legislative branch employees under the Legislative Branch Appropriations Act, 1994 to employee positions in the Library of Congress that are required to be filled to carry out specified sections of Federal copyright law. 
Revises provisions for the institution of proceedings. Sets forth requirements for the timing of the initiation or commencement of proceedings. 
Sets forth a rule regarding the adjustment of certain royalty rates and terms pursuant to voluntary negotiations. 
(Sec. 6) Sets forth the effective date for this Act. Requires the Librarian of Congress to appoint interim Copyright Royalty Judges within 90 days after such date of enactment. Sets forth a requirement concerning the effective periods for certain royalty terms and rates.
action_date: 2004-10-06
text: 
Copyright Royalty and Distribution Reform Act of 2004 - (Sec. 3) Replaces provisions authorizing and governing copyright arbitration royalty panels with provisions providing for the appointment of, and for adjudication of royalty rates for compulsory licenses under the Copyright Act by, Copyright Royalty Judges (CRJs). Requires the Librarian of Congress, after consultation with the Register of Copyrights, to appoint three full-time CRJs and to appoint one of the three as the Chief Copyright Royalty Judge. 
 
Specifies CRJ functions, including to: (1) determine and adjust the terms and rates of royalty payments for statutory licenses; (2) adjust statutory royalty rates for secondary transmissions by cable systems to reflect inflation, the average rates charged to cable subscribers for such transmissions, and Federal Communications Commission (FCC) regulations; (3) authorize, and make determinations regarding, distribution of royalty fees collected; (4) accept or reject royalty claims on the basis of timeliness or failure to establish a basis for the claim; (5) accept or reject rate adjustment petitions or petitions to participate; (6) determine whether royalties are due for importing, manufacturing, or distributing a digital audio recording device or a digital audio interface device; and (7) adopt an agreement on terms, rates, or distribution of royalties that are agreed to by some or all participants in a proceeding if the other participants do not object.
 
Sets forth qualifications, including requiring that: (1) each CRJ be an attorney with at least seven years experience; (2) one CRJ have significant knowledge of copyright; and (3) another CRJ have significant knowledge of economics. Sets forth provisions regarding staffing, length of terms, vacancies, and compensation. Grants CRJs full independence in making decisions and determinations, but authorizes consultation with the Register of Copyrights on certain matters. Requires the CRJs to request a decision from the Register on novel material questions of substantive law and to apply the Register's legal determination to resolve such questions. Allows the Register to review and correct CRJ resolutions for legal errors.
 
Prohibits a CRJ from undertaking any duties that conflict with his or her judicial duties and responsibilities. Requires the Librarian to adopt standards of conduct for CRJs, including regulations regarding conflicts of interest. Allows the Librarian to sanction or remove a CRJ for violations.
 
Allows a CRJ to preside individually over some collateral and administrative proceedings.
 
Sets forth provisions governing the operation of CRJ proceedings, including the initiation of proceedings, voluntary negotiations, and procedures for small claims or claims in which there is no genuine issue of material fact.
 
 Authorizes CRJs to issue regulations, subject to the Librarian's approval, to carry out their functions. Sets forth requirements for such regulations, including for regulations governing filing deadlines, procedural and evidentiary rules, discovery, and rehearing. Authorizes CRJs to issue subpoenas. Requires CRJ determinations to be supported by the written record and to set forth findings of fact.
 
Allows CRJs to issue an amendment to a written determination to correct any technical or clerical errors in the determination or to modify the terms, but not the rates, of royalty payments in response to unforeseen circumstances. Permits CRJs to issue orders to protect confidential information. 
 
Requires the Librarian to publish CRJ determinations. Provides for appeals of such determinations to the United States Court of Appeals for the District of Columbia Circuit. Allows the court to vacate a CRJ determination and enter its own determination with respect to the amount or distribution of royalty fees and costs or remand the case to the CRJs.
 
Allows the Librarian to deduct from the copyright filing fees the costs of proceedings under this Act.
 
Authorizes appropriations.
 
Allows any owner or user of a copyrighted work whose royalty rates are statutorily specified or established to file a petition with the CRJs declaring that the petitioner requests a determination or adjustment of the rate. Requires CRJs to determine whether the petitioner has a significant interest in the royalty rate.
 
Sets forth the timing of CRJ proceedings for statutorily established royalty rates.
 
Requires CRJs to adjust rates set pursuant to a voluntary agreement for inflation.
 
(Sec. 5) Sets forth technical amendments to license and royalty provisions. 
 
Requires each copyright party seeking to receive royalty payments for the distribution of their musical work or sound recording to file a claim with the CRJs. Requires CRJs to conduct a proceeding to resolve any controversy over the distribution of such royalty payments.
 
Allows a party preparing to manufacture, import, or distribute for the first time a digital audio recording device or a digital audio interface device, and any interested copyright party, to mutually petition the CRJs to determine whether royalties will be due for such device and the basis for such royalty payments.
 
(Sec. 6) Makes this Act effective six months after enactment. Provides for the appointment of interim CRJs if necessary. Sets forth transition provisions governing the status of proceedings in effect upon enactment. Declares that proceedings to determine royalty rates for the secondary transmission of primary transmissions by satellite carriers are not affected by this Act. 

action_date: 2004-11-30
text: 
Copyright Royalty and Distribution Reform Act of 2004 - (Sec. 3) Replaces provisions authorizing and governing copyright arbitration royalty panels with provisions providing for the appointment of, and for adjudication of royalty rates for compulsory licenses under the Copyright Act by, Copyright Royalty Judges (CRJs). Requires the Librarian of Congress, after consultation with the Register of Copyrights, to appoint three full-time CRJs and to appoint one of the three as the Chief Copyright Royalty Judge. 
 
Specifies CRJ functions, including to: (1) determine and adjust the terms and rates of royalty payments for statutory licenses; (2) adjust statutory royalty rates for secondary transmissions by cable systems to reflect inflation, the average rates charged to cable subscribers for such transmissions, and Federal Communications Commission (FCC) regulations; (3) authorize, and make determinations regarding, distribution of royalty fees collected; (4) accept or reject royalty claims on the basis of timeliness or failure to establish a basis for the claim; (5) accept or reject rate adjustment petitions or petitions to participate; (6) determine whether royalties are due for importing, manufacturing, or distributing a digital audio recording device or a digital audio interface device; and (7) adopt an agreement on terms, rates, or distribution of royalties that are agreed to by some or all participants in a proceeding if the participants do not object.
 
Sets forth qualifications, including requiring that: (1) each CRJ be an attorney with at least seven years experience; (2) one CRJ have significant knowledge of copyright; and (3) another CRJ have significant knowledge of economics. Sets forth provisions regarding staffing, length of terms, vacancies, and compensation. Grants CRJs full independence in making decisions and determinations, but authorizes consultation with the Register of Copyrights on certain matters. Requires the CRJs to request a decision from the Register on novel material questions of substantive law and to apply the Register's legal determination to resolve such questions. Allows the Register to review and correct CRJ resolutions for legal errors.
 
Prohibits a CRJ from undertaking any duties that conflict with his or her judicial duties and responsibilities. Requires the Librarian to adopt standards of conduct for CRJs, including regulations regarding conflicts of interest. Allows the Librarian to sanction or remove a CRJ for violations.
 
Allows a CRJ to preside individually over some collateral and administrative proceedings.
 
Sets forth provisions governing the operation of CRJ proceedings, including the initiation of proceedings, voluntary negotiations, and procedures for small claims or claims in which there is no genuine issue of material fact.
 
Authorizes CRJs to issue regulations, subject to the Librarian's approval, to carry out their functions. Sets forth requirements for such regulations, including for regulations governing filing deadlines, procedural and evidentiary rules, discovery, and rehearing. Authorizes CRJs to issue subpoenas. Requires CRJ determinations to be supported by the written record and to set forth findings of fact.
 
Allows CRJs to issue an amendment to a written determination to correct any technical or clerical errors in the determination or to modify the terms, but not the rates, of royalty payments in response to unforeseen circumstances. Permits CRJs to issue orders to protect confidential information. 
 
Requires the Librarian to publish CRJ determinations. Provides for appeals of such determinations to the United States Court of Appeals for the District of Columbia Circuit. Allows the court to vacate a CRJ determination and enter its own determination with respect to the amount or distribution of royalty fees and costs or remand the case to the CRJs.
 
Allows the Librarian to deduct from the copyright filing fees the costs of proceedings under this Act.
 
Authorizes appropriations.
 
Allows any owner or user of a copyrighted work whose royalty rates are statutorily specified or established to file a petition with the CRJs declaring that the petitioner requests a determination or adjustment of the rate. Requires CRJs to determine whether the petitioner has a significant interest in the royalty rate.
 
Sets forth the timing of CRJ proceedings for statutorily established royalty rates.
 
Requires CRJs to adjust rates set pursuant to a voluntary agreement for inflation.
 
(Sec. 5) Sets forth technical amendments to license and royalty provisions. 
 
Requires each copyright party seeking to receive royalty payments for the distribution of their musical work or sound recording to file a claim with the CRJs. Requires CRJs to conduct a proceeding to resolve any controversy over the distribution of such royalty payments.
 
Allows a party preparing to manufacture, import, or distribute for the first time a digital audio recording device or a digital audio interface device, and any interested copyright party, to mutually petition the CRJs to determine whether royalties will be due for such device and the basis for such royalty payments.
 
(Sec. 6) Makes this Act effective six months after enactment. Provides for the appointment of interim CRJs if necessary. Sets forth transition provisions governing the status of proceedings in effect upon enactment. Declares that proceedings to determine royalty rates for the secondary transmission of primary transmissions by satellite carriers that are commenced before January 31, 2006, are not affected by this Act. 


Legislative actions:
action_date: 2004-11-30
text: Became Public Law No: 108-419.
action_date: 2004-11-30
text: Became Public Law No: 108-419.
action_date: 2004-11-30
text: Signed by President.
action_date: 2004-11-30
text: Signed by President.
action_date: 2004-11-20
text: Presented to President.
action_date: 2004-11-20
text: Presented to President.
action_date: 2004-11-17
text: Pursuant to the provisions of S. Con. Res. 145, enrollment corrections on H.R. 1417 have been made.
action_date: 2004-11-17
text: Motion to reconsider laid on the table Agreed to without objection.
action_date: 2004-11-17
text: On motion that the House suspend the rules and agree to the Senate amendment Agreed to by the Yeas and Nays: (2/3 required): 407 - 0 (Roll no. 532).
action_date: 2004-11-17
text: Resolving differences -- House actions: On motion that the House suspend the rules and agree to the Senate amendment Agreed to by the Yeas and Nays: (2/3 required): 407 - 0 (Roll no. 532).
action_date: 2004-11-17
text: At the conclusion of debate, the Yeas and Nays were demanded and ordered. Pursuant to the provisions of clause 5, rule I, the chair announced that further proceedings on the motion would be postponed.
action_date: 2004-11-17
text: DEBATE - The House proceeded with forty minutes of debate on H.R. 1417.
action_date: 2004-11-17
text: Mr. Sensenbrenner moved that the House suspend the rules and agree to the Senate amendment. (consideration: CR H9848-9857, H9864-9865; text as House agreed to Senate amendment: CR H9848-9856)
action_date: 2004-10-06
text: Message on Senate action sent to the House.
action_date: 2004-10-06
text: Passed Senate with an amendment by Unanimous Consent.
action_date: 2004-10-06
text: Passed/agreed to in Senate: Passed Senate with an amendment by Unanimous Consent.
action_date: 2004-10-06
text: The committee substitute as amended agreed to by Unanimous Consent.
action_date: 2004-10-06
text: Measure laid before Senate by unanimous consent. (consideration: CR S10488-10504; text of measure as reported in Senate: CR S10489-10503)
action_date: 2004-09-29
text: Placed on Senate Legislative Calendar under General Orders. Calendar No. 744.
action_date: 2004-09-29
text: Committee on the Judiciary. Reported by Senator Hatch with an amendment in the nature of a substitute. Without written report.
action_date: 2004-09-29
text: Committee on the Judiciary. Reported by Senator Hatch with an amendment in the nature of a substitute. Without written report.
action_date: 2004-09-21
text: Committee on the Judiciary. Ordered to be reported with an amendment in the nature of a substitute favorably.
action_date: 2004-03-04
text: Received in the Senate and Read twice and referred to the Committee on the Judiciary.
action_date: 2004-03-03
text: The title of the measure was amended. Agreed to without objection.
action_date: 2004-03-03
text: Motion to reconsider laid on the table Agreed to without objection.
action_date: 2004-03-03
text: On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 406 - 0 (Roll no. 37). (text: CR H762-769)
action_date: 2004-03-03
text: Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 406 - 0 (Roll no. 37).(text: CR H762-769)
action_date: 2004-03-03
text: Considered as unfinished business. (consideration: CR H789)
action_date: 2004-03-03
text: At the conclusion of debate, the Yeas and Nays were demanded and ordered. Pursuant to the provisions of clause 8, rule XX, the Chair announced that further proceedings on the motion would be postponed.
action_date: 2004-03-03
text: DEBATE - The House proceeded with forty minutes of debate on H.R. 1417.
action_date: 2004-03-03
text: Considered under suspension of the rules. (consideration: CR H762-772)
action_date: 2004-03-03
text: Mr. Sensenbrenner moved to suspend the rules and pass the bill, as amended.
action_date: 2004-01-30
text: Placed on the Union Calendar, Calendar No. 234.
action_date: 2004-01-30
text: Reported (Amended) by the Committee on Judiciary. H. Rept. 108-408.
action_date: 2004-01-30
text: Reported (Amended) by the Committee on Judiciary. H. Rept. 108-408.
action_date: 2003-09-24
text: Ordered to be Reported (Amended) by Voice Vote.
action_date: 2003-09-24
text: Committee Consideration and Mark-up Session Held.
action_date: 2003-05-20
text: Forwarded by Subcommittee to Full Committee (Amended) by Voice Vote.
action_date: 2003-05-20
text: Subcommittee Consideration and Mark-up Session Held.
action_date: 2003-04-01
text: Subcommittee Hearings Held.
action_date: 2003-03-25
text: Referred to the Subcommittee on Courts, the Internet, and Intellectual Property.
action_date: 2003-03-25
text: Referred to the House Committee on the Judiciary.
action_date: 2003-03-25
text: Introduced in House
action_date: 2003-03-25
text: Introduced in House

Enacted as: number: 108-419