Audio Home Recording Act of 1992
PL 102-563 (S.1623), enacted 10/28/1992

PUBLIC LAW 102-563—OCT. 28, 1992 
106 STAT. 4237 
Public Law 102-563 
102d Congress 
An Act 
To amend title 17, United States Code, to implement a royalty payment system 
Q^^ 28 1992 
and a serial copy management system for digital audio recording, to prohibit 
certain copyright infringement actions, and for other purposes. 
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Be it enacted by the Senate and House of Representatives 
of 
the United States of America in Congress assembled. 
Audio Home 
Recording Act 
SECTION 1. SHORT TITLE. 
of 1992. 
This Act may be cited as the "Audio Home Recording Act il+Y^ ^^^ 
of 1992". 
SEC. 2. IMPORTATION, MANUFACTURE, AND DISTRIBUTION OF DIGI-
TAL AUDIO RECORDING DEVICES AND MEDIA. 
Title 17, United States Code, is amended by adding at the 
end the following: 
"CHAPTER 10—DIGITAL AUDIO RECORDING 
DEVICES AND MEDIA 
"SUBCHAPTER A—DEFINITIONS 
"Sec. 
"1001. Definitions. 
"SUBCHAPTER B—COPYING CONTROLS 
"1002. Incorporation of copying controls. 
"SUBCHAPTER C—ROYALTY PAYMENTS 
"1003. Obligation to make royalty payments. 
"1004. Royalty payments. 
"1005. Deposit of royalty payments and deduction of expenses. 
"1006. Entitlement to royalty pajrments. 
"1007. Procedures for distributing royalty payments. 
"SUBCHAPTER D—PROHIBITION ON CERTAIN INFRINGEMENT ACTIONS, 
REMEDIES, AND ARBITRATION 
"1008. Prohibition on certain infringement actions. 
"1009. Civil remedies. 
"1010. Arbitration of certain disputes. 
"SUBCHAPTER A—DEFINITIONS 
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§ 1001. Definitions 
"As used in this chapter, the foUovdng terms have the following 
meanings: 
"(1) A 'digital audio copied recording* is a reproduction 
in a digital recording format of a digital musical recording, 
whether that reproduction is made directly from smother digital 
musical recording or indirectly from a transmission. 
"(2) A 'digil^ audio interface device' is any machine or 
device that is designed specifically to communicate digital audio 
information and related interface data to a digital audio record-
ing device through a nonprofessional interface. 
106 STAT. 4238 
PUBLIC LAW 102-563—OCT. 28, 1992 
"(3) A 'digital audio recording device' is any machine or 
device of a tj^e commonly distributed to individuals for use 
by individuals, whether or not included with or as part of 
some other machine or device, the digital recording function 
of which is designed or marketed for the primaiy purpose 
of, and that is capable of, meiking a digital audio copied record-
ing for private use, except for— 
"(A) professional model products, and 
"(B) dictation machines, answering machines, and 
other audio recording equipment that is designed and mar-
keted primarily for the creation of sound recordings result-
ing from the fixation of nonmusical sounds. 
"(4)(A) A 'digital audio recording medium' is any material 
object in a form commonly distributed for use by individuals, 
that is primarily msu'keted or most commonly used by consum-
ers for the purpose of making digital audio copied recordings 
by use of a digital audio recording device. 
"(B) Such term does not include any material object— 
"(i) that embodies a sound recording at the time it 
is first distributed by the importer or manufacturer; or 
"(ii) that is primarily marketed and most commonly 
used by consumers either for the purpose of making copies 
of motion pictures or other audiovisual works or for the 
purpose 01^ making copies of nonmusical hterary works, 
including computer programs or data bases. 
"(5)(A) A 'digital musical recording^ is a material object— 
"(i) in which are fixed, in a digital recording format, 
only soimds, and material, statements, or instructions 
incidental to those fixed sounds, if any, and 
"(ii) from which the sounds and material can be per-
ceived, reproduced, or otherwise communicated, either 
directly or with the aid of a machine or device. 
"(B) A 'digital musical recording' does not include a material 
object— 
"(i) in which the fixed sounds consist entirely of spoken 
word recordings, or 
"(ii) in which one or more computer programs are 
fixed, except that a digital musical recording may contain 
statements or instructions constituting the fixed sounds 
and incidental material, and statements or instructions 
to be used directly or indirectly in order to bring about 
the perception, reproduction, or communication of the fixed 
sounds and incidental material. 
"(C) For purposes of this paragraph— 
"(i) a 'spoken word recording* is a sound recording 
in which are fixed only a series of spoken words, except 
that the spoken words may be accompsmied by incidental 
musical or other sounds, and 
"(ii) the term 'incidental' means related to and rel-
atively minor by comparison. 
"(6) 'Distribute means to sell, lease, or assign a product 
to consumers in the United States, or to sell, lease, or assign 
a product in the United States for ultimate transfer to consum-
ers in the United States. 
"(7) An'interested copyright psirty* is— 
"(A) the owner of the exclusive right under section 
106(1) of this title to reproduce a sound recording of a 
PUBLIC LAW 102-563—CXrr. 28, 1992 
106 STAT. 4239 
musical wo;^ that has been embodied in a digital musical 
recording or analog musical recording lawfully made under 
this title that has been distributed; 
"(B) the legal or beneficial owner of, or the person 
that controls, the right to reproduce in a digital musical 
recording or analog musical recording a musical work that 
has been embodied in a digital musical recording or analog 
musical recording lawfully made under this title that has 
been distributed; 
"(C) a featured recording artist who performs on a 
soimd recording that has been distributed; or 
"(D) any association or other organization— 
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"(i) representing persons specified in subparagraph 
(A),(B),or(C),or 
"(ii) engaged in Ucensing rights in musical works 
to music users on behalf of writers and publishers. 
"(8) To 'manufacture' means to produce or assemble a prod-
uct in the United States. A 'manufacturer* is a person who 
manufactures. 
"(9) A 'music pubUsher' is a person that is authorized 
to Hcense the reproduction of a particular musical work in 
a sound recording. 
"(10) A 'professional model product' is an audio recording 
device that is designed, manufactured, marketed, and intended 
for use by recording professionals in the ordinary course of 
a lawful business, in accordance with such requirements as 
the Secretary of Commerce shall estabUsh by regulation. 
"(11) The term 'serial copying* means the duplication in 
a digital format of a copyrighted musical work or soiuid record-
ing from a digital reproduction of a digital musical recording. 
The term 'digital reproduction of a digital musical recording' 
does not include a digital musical recording as distributed, 
by authority of the cop3night owner, for ultimate sale to consimi-
ers. 
"(12) The 'transfer price* of a digital audio recording device 
or a digital audio recording medium— 
"(A) is, subject to subparagraph (B)— 
"(i) in the case of an imported product, the actual 
entered value at United States Customs (exclusive of 
any freight, insurance, and applicable duty), and 
"(ii) in the case of a domestic product, the manufac-
turer's transfer price (FOB the maniifacturer, and 
exclusive of any direct sales taxes or excise taxes 
incurred in connection with the sale); and 
"(B) shall, in a case in which the transferor and trans-
feree are related entities or within a single entity, not 
be less than a reasonable arms-length price under the 
principles of the regulations adopted pursuant to section 
482 of the Internal Revenue Code of 1986, or any successor 
provision to such section. 
"(13) A 'writer* is the composer or lyricist of a particular 
musical work. 
106 STAT. 4240 
PUBLIC LAW 102-563—OCT. 28,1992 
"SUBCHAPTER B—COPYING CONTROLS 
"§ 1002. Incorporation of copjring controls 
"(a) PROHIBITION ON IMPORTATION, MANUFACTURE, AND DIS-
TRIBUTION.—^No person shall import, manufacture, or distribute 
any digital audio recording device or digital audio interface device 
that does not conform to— 
"(1) the Serial Copy Management System; 
''(2) a system that has the same functional characteristics 
as the Serial Copy Management System and requires that 
cop3rright and generation status information be accurately sent, 
received, and acted upon between devices using the system's 
method of serial copying regulation and devices using the Serial 
Copy Management System; or 
"(3) any other system certified by the Secretary of Com-
merce as prohibiting unauthorized serial copjdng. 
**(b) DEVELOPMENT OF VERIFICATION PROCEDURE.—The Sec-
retary of Commerce shall establish a procedure to verify, upon 
the petition of an interested party, that a system meets the stand-
ards set forth in subsection (aX2). 
"(c) PROHIBITION ON CIRCUMVENTION OF THE SYSTEM.—NO per-
son shall import, manufacture, or distribute any device, or offer 
or perform any service, the primary purpose or effect of which 
is to avoid, bypass, remove, deactivate, or otherwise circumvent 
any program or circuit which implements, in whole or in part, 
a system described in subsection (a). 
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(
d
) ENCODING OF INFORMATION ON DIGITAL MUSICAL RECORD-
INGS.— 
"(1) 
PROHIBITION ON ENCODING INACCURATE INFORMA-
TION.—^No person shall encode a digital musical recording of 
a sound recording with inaccurate information relating to the 
category code, copyright status, or generation status of the 
source materisil for the recording. 
"(2) ENCODING OF COPYRIGHT STATUS NOT REQUIRED.— 
Nothing in this chapter requires any person engaged in the 
importation or manufacture of digital musical recordings to 
encode any such digital musical recording with respect to its 
cop3aight status. 
"(e) INFORMATION ACCOMPANYING TRANSMISSIONS IN DIGITAL 
FORMAT.—Any person who transmits or otherwise communicates 
to the pubUc any sound recording in digital format is not required 
under this chapter to transmit or otherwise communicate the 
information relating to the copyright status of the sound recording. 
Any such person who does transmit or otherwise communicate 
such cop3rright stetus information shall transmit or communicate 
such information accurately. 
"SUBCHAPTER C—ROYALTY PAYMENTS 
**% 1003. Obligation to make royalty payments 
"(a) PROHIBITION ON IMPORTATION AND MANUFACTURE.—NO per-
son shall import into and distribute, or manufacture and distribute, 
any digitel audio recording device or digital audio recording medium 
unless such person records the notice specified by this section 
and subsequently deposite the stetements of account and appHcable 
royalty pa3rments for such device or medium specified in section 
1004. 
PUBLIC LAW 102-563—OCT. 28, 1992 
106 STAT. 4241 
"(b) FILING OP NOTICE.—^The importer or maniifacturer of any 
digital audio recording device or digital audio recording medium, 
within a product category or utilizing a technology with respect 
to which such manufacturer or importer has not previously filed 
a notice under this subsection, shall file with the Register of Copy-
rights a notice with respect to such device or medium, in such 
form and content as the Register shall prescribe by regulation. 
**(c) FILING OF QUARTERLY AND ANNUAL STATEMENTS OF 
ACCOUNT.— 
"(1) GENERALLY.—^Any importer or manufacturer that dis-
tributes any digital audio recording device or digital audio 
recording medium that it manufactured or imported shall file 
with the Register of Copyrights, in such form and content 
as the Register shall prescribe by regulation, such quarterly 
and annual statements of accoimt with respect to such dis-
tribution as the Register shall prescribe by regulation. 
"(2) CERTIFICATION, VERIFICATION, AND CONFIDENTIALITY.— 
Each such statement shall be certified as accurate by an author-
ized officer or principal of the importer or manufacturer. The 
Register shall issue regulations to provide for the verification 
ana audit of such statements and to protect the confidentiality 
of the information contained in such statements. Such regula-
tions shall provide for the disclosure, in confidence, of such 
statements to interested copyright parties. 
"(3) ROYALTY PAYMENTS.—^Each such statement shall be 
accompanied by the royalty payments specified in section 1004. 
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§ 1004. Royalty payments 
**(a) DIGITAL AUDIO RECORDING DEVICES.— 
"(1) AMOUNT OF PAYMENT.—^The royalty payment due under 
section 1003 for each digital audio recording device imported 
into and distributed in the United Stetes, or manufactured 
and distributed in the United Stetes, shedl be 2 percent of 
the transfer price. Only the first person to manufacture and 
distribute or import and distribute such device shall be required 
to pav the royalty with respect to such device. 
'\2) CALCULATION FOR DEVICES DISTRIBUTED WITH OTHER 
DEVICES.—^With respect to a digital audio recording device first 
distributed in combination with one or more devices, either 
as a physically integrated unit or as separate components, 
the royalty payment shall be calculated as follows: 
"(A) If the digital audio recording device and such 
other devices are part of a physically integrated unit, the 
royalty payment shall be based on the transfer price of 
the unit, but shall be reduced by any royalty payment 
made on any digital audio recording device included within 
the unit that was not first distributed in combination with 
the unit. 
"(B) If tlie digital audio recording device is not part 
of a physically integrated unit and substantially similar 
devices have been distributed separately at any time during 
the preceding 4 calendar quarters, the royalty payment 
shall be based on the average transfer price of such devices 
during those 4 quarters. 
"(C) If the digital audio recording device is not part 
of a physically integrated unit and substantially similar 
devices have not been distributed separately at any time 
Regulations. 
Regulations. 
Regulations. 
106 STAT. 4242 
PUBLIC LAW 102-563—OCT. 28, 1992 
during the preceding 4 calendar quarters, the royalty pay-
ment shall be based on a constructed price reflecting the 
proportional value of such device to the combination as 
a whole. 
"(3) LIMITS ON ROYALTIES.—Notwithstanding paragraph (1) 
or (2), the amount of the royalty payment for each digital 
audio recording device shall not be less than $1 nor more 
than the royalty maximum. The royalty maximum shall be 
$8 per device, except that in the case of a physically integrated 
unit containing more than 1 digital audio recording device, 
the royalty maximum for such unit shall be $12. During the 
6th year after the effective date of this chapter, and not more 
than once each year thereafter, any interested copyright party 
may petition the Copjrright Royalty Tribunal to increase the 
royalty maximum and, if more than 20 percent of the royalty 
payments are at the relevant royalty maximum, the Tribimal 
shall prospectively increase such royalty maximum with the 
goal of having no more than 10 percent of such payments 
at the new royalty maximum; however the amount of any 
such increase as a percentage of the royalty maximum shall 
in no event exceed the percentage increase in the Consumer 
Price Index during the period under review. 
"(b) DIGITAL AUDIO RECORDING MEDIA.—The royalty payment 
due under section 1003 for each digital audio recording medium 
imported into and distributed in the United States, or manufactured 
and distributed in the United States, shall be 3 percent of the 
transfer price. Only the first person to manufacture and distribute 
or import and distribute such medium shall be required to pay 
the royalty with respect to such medium. 
^'§1005. Deposit of royalty payments and deduction of 
expenses 
"The Register of Copyrights shall receive all royalty payments 
deposited under this chapter and, after deducting the reasonable 
costs incurred by the Cop3Tight Office under this chapter, shall 
deposit the balance in the Treasury of the United States as off-
setting receipts, in such manner as the Secretary of the Treasury 
directs. All funds held by the Secretary of the Treasury shall 
be invested in interest-bearing United States securities for later 
distribution with interest under section 1007. The Register may, 
in the Register's discretion, 4 years after the close of any calendar 
year, close out the royalty payments account for that calendar 
year, and may treat any funds remaining in such account and 
any subsequent deposits that would otherwise be attributable to 
that calendar year as attributable to the succeeding calendar year. 
Reports. 
The Register shall submit to the Copyright Royalty Tribunal, on 
a monthly basis, a financial statement reporting the amount of 
royalties under this chapter that are available for distribution. 
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§ 1006. Entitlement to royalty payments 
"(a) INTERESTED COPYRIGHT PARTIES.—^The royalty payments 
deposited pursuant to section 1005 shall, in accordance with the 
procedures specified in section 1007, be distributed to any interested 
copjnright party— 
"(1) whose musical work or sound recording has been— 
PUBLIC LAW 102-563—OCT. 28, 1992 
106 STAT. 4243 
"(A) embodied in a digital musical recording or an 
analog musical recording lawfully made under this title 
that has been distributed, and 
"(B) distributed in the form of digital musical record-
ings or analog musical recordings or disseminated to the 
pubUc in transmissions, during the period to which such 
payments pertain; and 
"(2) who has filed a claim under section 1007. 
"(b) ALLOCATION OF ROYALTY PAYMENTS TO GROUPS.—The roy-
alty payments shall be divided into 2 funds as follows: 
"(1) THE SOUND RECORDINGS FUND.—66% percent of 
the 
royalty payments shall be allocated to the Sound Recordings 
Fund. 2% percent of the royalty payments allocated to the 
Sound Recordings Fund shall be placed in an escrow account 
managed by an independent administrator jointly appointed 
by the interested cop5rright parties described in section 
1001(7)(A) and the American Federation of Musicians (or any 
successor entity) to be distributed to nonfeatured musicians 
(whether or not members of the American Federation of 
Musicieins or any successor entity) who have performed on 
sound recordings distributed in the United States. 1% percent 
of the royalty payments allocated to the Sound Recordings 
Fund shsdl be placed in an escrow account managed by an 
independent administrator jointly appointed by the interested 
copyright parties described in section 1001(7)(A) and the Amer-
ican Federation of Television and Radio Artists (or any succes-
sor entity) to be distributed to nonfeatured vocalists (whether 
or not members of the American Federation Television and 
Radio Artists or any successor entity) who have performed 
on sound recordings distributed in the United States. 40 percent 
of the remaining royalty pajnnents in the Sound Recordings 
Fund shall be distributed to the interested copyright parties 
described in section 1001(7)(C), and 60 percent of such remain-
ing royalty pajonents shall be distributed to the interested 
copyright parties described in section 1001(7)(A). 
"(2) THE MUSICAL WORKS FUND.— 
"(A) 33 Va percent of the royalty payments shall be 
allocated to the Musical Works Fund for distribution to 
interested copjnright parties described in section 1001(7)(B). 
"(B)(i) Music pubUshers shall be entitled to 50 percent 
of the royalty payments allocated to the Musical Works 
Fund. 
"(ii) Writers shall be entitled to the other 50 percent 
of the royalty payments allocated to the Musical Works 
Fund. 
"(c) ALLOCATION OF ROYALTY PAYMENTS WITHIN GROUPS.—If 
all interested cop3night parties within a group specified in sub-
section (b) do not agree on a voluntary proposal for the distribution 
of the royalty pa3mQ.ents within each group, the Copyright Royalty 
Tribunal shall, pursuant to the procedures specified under section 
1007(c), allocate royalty payments under this section based on the 
extent to which, during the relevant period— 
"(1) for the Sound Recordings Fiuid, each sound recording 
was distributed in the form of digital musical recordings or 
anedog musical recordings; and 
"(2) for the Musical Works Fund, each musical work was 
distributed in the form of digital musical recordings or analog 
106 STAT. 4244 
PUBLIC LAW 102-563—OCT. 28, 1992 
musical recordings or disseminated to the public in trans-
missions. 
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§ 1007. Procedures for distributing royalty payments 
"(a) FILING OF CLAIMS AND NEGOTIATIONS.— 
Regulations. 
"(1) FILING OF CLAIMS.—During the first 2 months of each 
calendar year after the calendar year in which this chapter 
takes effect, every interested copyright party seeking to receive 
royalty payments to which such party is entitled under section 
1006 shall file with the Copyright Royalty Tribunal a claim 
for payments collected during the preceding year in such form 
and manner as the Tribuned shall prescribe by regulation. 
"(2) NEGOTIATIONS.—^Notwithstanding any provision of the 
antitrust laws, for purposes of this section interested copyright 
parties within each group specified in section 1006(b) may 
agree among themselves to the proportionate division of royalty 
payments, may lump their claims together and file them jointly 
or as a single claim, or may designate a common agent, includ-
ing any organization described in section 1001(7)(D), to nego-
tiate or receive payment on their behalf; except that no agree-
ment under this subsection may modify the allocation of royal-
ties specified in section 1006(b). 
"(b) DISTRIBUTION OF PAYMENTS IN THE ABSENCE OF A DIS-
PUTE.—Within 30 days after the period established for the filing 
of claims under subsection (a), in each year after the year in 
which this section takes effect, the Cop3aight Royalty TWbunal 
shall determine whether there exists a controversy concerning the 
distribution of royalty payments under section 1006(c). If the Tribu-
nal determines that no such controversy exists, the Tribunal shall, 
within 30 days after such determination, authorize the distribution 
of the royalty payments as set forth in the agreements regarding 
the distribution of royalty pajonents entered into pursuant to sub-
section (a), after deducting its reasonable administrative costs under 
this section. 
"(c) RESOLUTION OF DISPUTES.—If the Tribunal finds the exist-
ence of a controversy, it shall, pursuant to chapter 8 of this title, 
conduct a proceeding to determine the distribution of royalty pay-
ments. During the pendency of such a proceeding, the Tribunal 
shall withhold from distribution an amount sufficient to satisftr 
all claims with respect to which a controversy exists, but shall, 
to the extent feasible, authorize the distribution of any amounts 
that are not in controversy. The Tribunal shall, before authorizing 
the distribution of such royalty payments, deduct its reasonable 
administrative costs under this section. 
"SUBCHAPTER D—PROHIBITION ON CERTAIN 
INFRINGEMENT ACTIONS, REMEDIES, AND ARBITRATION 
^§ 1008. Prohibition on certain infringement actions 
"No action may be brought under this title alleging infringe-
ment of cop3nright based on the manufacture, importation, or dis-
tribution of a digital audio recording device, a digital audio record-
ing medium, an analog recording device, or an analog recording 
medium, or based on the noncommercial use by a consumer of 
such a device or medium for making digital musical recordings 
or analog musical recordings. 
PUBLIC LAW 102-563—OCT. 28, 1992 
106 STAT. 4245 
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§ 1009. Civil remedies 
"(a) CIVIL ACTIONS.—Any interested copyright party injured 
by a violation of section 1002 or 1003 may bring a civil action 
in an appropriate United States district court against any person 
for such violation. 
"(b) OTHER CIVIL ACTIONS.—^Any person injured by a violation 
of this chapter may bring a civil action in an appropriate United 
States district court for actual damages incurred as a result of 
such violation. 
"(c) POWERS OF THE COURT.—In an action brought under sub-
section (a), the court— 
"(1) may grant temporary and permanent injunctions on 
such terms as it deems reasonable to prevent or restrain such 
violation; 
"(2) in the case of a violation of section 1002, or in the 
case of an injury resulting from a failure to make royalty 
payments required by section 1003, shall award damages under 
subsection (d); 
"(3) in its discretion may allow the recovery of costs by 
or against any party other than the United States or an officer 
thereof; and 
"(4) in its discretion may award a reasonable attorney's 
fee to the prevailing party. 
"(d) AWARD OF DAMAGES.— 
"(1) DAMAGES FOR SECTION 1002 OR 1003 VIOLATIONS.— 
"(A) ACTUAL DAMAGES.—(i) In an action brought imder 
subsection (a), if the court finds that a violation of section 
1002 or 1003 has occurred, the court shall award to the 
complaining party its actual damages if the complaining 
party elects such damages at any time before final judg-
ment is entered. 
"(ii) In the case of section 1003, actual damages shall 
constitute the royalty payments that should have been 
paid under section 1004 and deposited under section 1005. 
In such a case, the court, in its discretion, may award 
an additional amount of not to exceed 50 percent of the 
actual damages. 
"(B) 
STATUTORY DAMAGES FOR SECTION 1002 VIO-
LATIONS.— 
"(i) DEVICE.—^A complaining party may recover an 
award of statutory damages for each violation of section 
1002 (a) or (c) in the sum of not more than $2,500 
per device involved in such violation or per device 
on which a service prohibited by section 1002(c) has 
been performed, as the court considers just. 
"(ii) DIGITAL MUSICAL RECORDING.—A complaining 
party may recover an award of statutory damages for 
each violation of section 1002(d) in the sum of not 
more than $25 per digital musical recording involved 
in such violation, as the court considers just. 
"(iii) TRANSMISSION.—^A complaining party may 
recover an award of damages for each transmission 
or communication that violates section 1002(e) in the 
sum of not more than $10,000, as the court considers 
just. 
"(2) REPEATED VIOLATIONS.—^In any case in which the court 
finds that a person has violated section 1002 or 1003 within 
106 STAT. 4246 
PUBLIC LAW 102-563—OCT. 28, 1992 
3 years after a final judgment against that person for another 
such violation was entered, the court may increase the award 
of damages to ^ t more than double the amounts that would 
otherwise be awarded under paragraph (1), as the court consid-
ers just. 
"(3) INNOCENT VIOLATIONS OF SECTION 1002.—^The court in 
its discretion may reduce the total award of damages against 
a person violating section 1002 to a sum of not less than 
$250 in any case in which the court finds that the violator 
was not aware and had no reason to believe that its acts 
constituted a violation of section 1002. 
"(e) PAYMENT OF DAMAGES.—Any award of damages under sub-
section (d) shall be deposited with the Register pursuant to section 
1005 for distribution to interested copyright parties as though such 
fiuids were roysdty payments made pursuant to section 1003. 
"(f) IMPOUNDING OF ARTICLES.—At any time while an action 
under subsection (a) is pending, the court may order the impoimd-
ing, on such terms as it deems reasonable, of any digital audio 
recording device, digital musical recording, or device specified in 
section 1002(c) that is in the custody or control of the alleged 
violator and that the court has reasonable cause to believe does 
not comply with, or was involved in a violation of, section 1002. 
"(g) REMEDL\L MODIFICATION AND DESTRUCTION OF ARTICLES.— 
In an action brought under subsection (a), the court may, as part 
of a final judgment or decree finding a violation of section 1002, 
order the remedial modification or the destruction of £uiy digital 
audio recording device, digital musical recording, or device specified 
in section 1002(c) that— 
"(1) does not comply with, or was involved in a violation 
of, section 1002, and 
"(2) is in the custody or control of the violator or has 
been impounded under subsection (f). 
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§ 1010. Arbitration of certain disputes 
"(a) SCOPE OF ARBITRATION.—^Before the date of first dis-
tribution in the United States of a digital audio recording device 
or a digital audio interface device, any party manufacturing, import-
ing, or distributing such device, and any interested copyright party 
may mutually agree to binding arbitration for the purpose of deter-
mining whether such device is subject to section 1002, or the 
basis on which royalty payments for such device are to be made 
under section 1003. 
"(b) INITIATION OF ARBITRATION PROCEEDINGS.—Parties agree-
ing to such arbitration shall file a petition with the Copyright 
Royalty Tribimal requesting the commencement of an arbitration 
proceeding. The petition may include the names and quaUfications 
Federal 
of potential arbitrators. Within 2 weeks after receiving such a 
^*^**t' 
petition, the Tribunal shall cause notice to be published in the 
pu ica ion. 
Federal Register of the initiation of an arbitration proceeding. Such 
notice shall include the names and qualifications of 3 arbitrators 
chosen by the Tribunal from a list of available arbitrators obtained 
from the American Arbitration Association or such similar organiza-
tion as the Tribunal shall select, and fi*om potential arbitrators 
Usted in the parties' petition. The arbitrators selected under this 
subsection shall constitute an Arbitration Panel. 
"(c) STAY OF JUDICIAL PROCEEDINGS.—Any civil action brought 
under section 1009 against a party to arbitration under this section 
PUBLIC :LAW 102-563—OCT. 28,1992 
106 STAT. 4247 
shall, on application of one of the parties to the arbitration, be 
stayed until completion of the arbitration proceeding. 
"(d) ARBITRATION PROCEEDING.—The Arbitration Panel shall 
conduct an arbitration proceeding with respect to the matter con-
cerned, in accordance with such procedures as it may adopt. The 
Panel shall act on the basis of a fully documented written record. 
Any party to the arbitration may submit relevant information and 
proposals to the Panel. The parties to the proceeding shall bear 
the entire cost thereof in such manner and proportion as the Panel 
shall direct. 
"(e) REPORT TO COI'YRIGHT ROYALTY TRiBUNAL.^Not later than 
60 days after publication of the notice under subsection (b) of 
the initiation of an arbitration proceeding, the Arbitration Panel 
shall report to the Copyright Royalty Tribunal its determination 
concerning whether the device concerned is subject to section 1002, 
or the basis on which royalty payments for the device are to be 
made under section 1003. Such report shall be accompanied by 
the written record, and shall set forth the facts that the Panel 
found relevant to its determination. 
"(f) ACTION BY THE COPYRIGHT ROYALTY TRIBUNAL.—^Within 
60 days after receiving the report of the Arbitration Panel under 
subsection (e), the Copyright Royalty Tribunal shgill adopt or reject 
the determination of the Panel. The Tribunal shall adopt the deter-
mination of the Panel unless the Tribunal finds that the determina-
tion is clearly erroneous. If the Tribunal rejects the determination 
of the Panel, the Tribunal shall, before the end of that 60-day 
period, and after full examination of the record created in the 
arbitration proceeding, issue an order setting forth its decision 
and the reasons therefor. The Tribunal shall cause to be published 
Federal 
in the Federal Register the determination of the Panel and the 
^bliration 
decision of the Tribunal under this subsection with respect to the 
determination (including any order issued under the preceding sen-
tence). 
"(g) JUDICIAL REVIEW.—Any decision of the Copyright Royalty 
Tribunal under subsection (f) with respect to a determination of 
the Arbitration Panel may be appealed, by a party to the arbitration, 
to the United States Court of Appeals for the District of Columbia 
Circuit, within 30 days after the publication of the decision in 
the Federal Register. The pendency of an appeal under this sub-
section shall not stay the Tribunal's decision. The court shall have 
jurisdiction to modify or vacate a decision of the Tribunal only 
if it finds, on the basis of the record before the Tribunal, that 
the Arbitration Panel or the Tribunal acted in an arbitrary manner. 
If the court modifies the decision of the Tribunal, the court shall 
have jurisdiction to enter its own decision in accordance with its 
final judgment. The court may further vacate the decision of the 
Tribunal and remand the case for arbitration proceedings as pro-
vided in this section.". 
SEC. 3. TECHNICAL AMENDMENTS. 
(a) FUNCTIONS OF REGISTER.—Chapter 8 of title 17, United 
States Code is amended— 
(1) in section 801(b)— 
(A) by striking "and" at the end of paragraph (2); 
(B) by striking the period at the end of paragraph 
(3) and inserting "; and"; and 
59-194 0-93 
20:QL3(Pt. 5) 
106 STAT. 4248 
PUBLIC LAW 102-563—OCT. 28, 1992 
(C) by adding the following new paragraph at the 
end: 
"(4) to distribute royalty payments deposited with the Reg-
ister of Copyrights under section 1003, to determine the dis-
tribution of such payments, and to carry out its other respon-
sibilities under chapter 10"; and 
(2) in section 804(d)— 
(A) by inserting "or (4)" after "801(b)(3r; and 
(B) by striking "or 119" and inserting "119, or 1007". 
(b) DEFINITIONS.—Section 101 of title 17, United States Code, 
is amended by striking "As used" and inserting "Except as otherwise 
provided in this title, as used". 
(c) MASK WORKS.—Section 912 of title 17, United States Code, 
is amended— 
(1) in subsection (a) by inserting "or 10" after "8"; and 
(2) in subsection (b) by inserting "or 10" after "8". 
(d) CONFORMING AMENDMENT TO SECTION 337 
OF THE TARIFF 
ACT OF 1930.—The second sentence of section 337(b)(3) of the 
Tariff Act of 1930 (19 U.S.C. 1337(b)(3)) is amended to read as 
follows: "If the Commission has reason to believe that the matter 
before it (A) is based solely on alleged acts and effects which 
are within the purview of section 303, 671, or 673, or (B) relates 
to £m alleged cop3rright infringement with respect to which action 
is prohibited by section 1008 of title 17, United States Code, the 
Commission shall terminate, or not institute, any investigation 
into the matter.". 
17USC1001 
SEC. 4. EFFECTIVE DATE. 
This Act £ind the amendments made by this Act shall take 
effect on the date of the enactment of this Act. 
Approved October 28, 1992. 
LEGISLATIVE HISTORY—S. 1623 (H.R. 3204): 
HOUSE REPORTS: No. 102-873, Pt. 1 (Coram, on the Judiciary) and Pt. 2 (Comm. on 
Ways and Means) both accompanying H.R. 3204. 
SENATE REPORTS: No. 102-294 (Comm. on the Judiciary). 
CONGRESSIONAL RECORD, Vol. 138 (1992): 
June 17, considered and passed Senate. 
Sept. 22, H.R. 3204 considered and passed House; S. 1623, amended, passed in 
lieu. 
Oct. 7, Senate concurred in House amendments. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 28 (1992): 
Oct. 28, Presidential statement.