[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2840 Engrossed in House (EH)]
103d CONGRESS
1st Session
H. R. 2840
_______________________________________________________________________
AN ACT
To amend title 17, United States Code, to establish copyright
arbitration royalty panels to replace the Copyright Royalty Tribunal,
and for other purposes.
103d CONGRESS
1st Session
H. R. 2840
_______________________________________________________________________
AN ACT
To amend title 17, United States Code, to establish copyright
arbitration royalty panels to replace the Copyright Royalty Tribunal,
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 Royalty Tribunal Reform
Act of 1993''.
SEC. 2. COPYRIGHT ARBITRATION ROYALTY PANELS.
(a) Establishment and Purpose.--Section 801 of title 17, United
States Code, is amended as follows:
(1) The section designation and heading are amended to read
as follows:
``Sec. 801. Copyright arbitration royalty panels: establishment and
purpose''.
(2) Subsection (a) is amended to read as follows:
``(a) Establishment.--The Librarian of Congress, upon the
recommendation of the Register of Copyrights, is authorized to appoint
and convene copyright arbitration royalty panels.''.
(3) Subsection (b) is amended--
(A) by inserting ``Purposes.--'' after ``(b)'';
(B) in the matter preceding paragraph (1), by
striking ``Tribunal'' and inserting ``copyright
arbitration royalty panels'';
(C) in paragraph (2)--
(i) in subparagraph (A), by striking
``Commission'' and inserting ``copyright
arbitration royalty panels''; and
(ii) in subparagraph (B), by striking
``Copyright Royalty Tribunal'' and inserting
``copyright arbitration royalty panels'';
(D) in paragraph (3), by striking ``In
determining'' and all that follows through the end of
the paragraph; and
(E) in paragraph (4) by striking ``to determine''
and all that follows through ``chapter 10'' and
inserting ``and to determine the distribution of such
payments.''.
(4) By amending subsection (c) to read as follows:
``(c) Rulings.--The Librarian of Congress, upon the recommendation
of the Register of Copyrights, may, before a copyright arbitration
royalty panel is convened, make any necessary procedural or evidentiary
rulings that would apply to the proceedings conducted by such panel.''.
(b) Membership and Proceedings.--Section 802 of title 17, United
States Code, is amended to read as follows:
``Sec. 802. Membership and proceedings of copyright arbitration royalty
panels
``(a) Composition of Copyright Arbitration Royalty Panels.--A
copyright arbitration royalty panel shall consist of 3 arbitrators
selected by the Librarian of Congress pursuant to subsection (b).
``(b) Selection of Arbitration Panel.--Not later than 10 days after
publication of a notice initiating an arbitration proceeding under
section 804, and in accordance with procedures specified by the
Register of Copyrights, the Librarian of Congress shall, upon the
recommendation of the Register of Copyrights, select 2 arbitrators from
lists of arbitrators provided to the Librarian by parties participating
in the arbitration and by professional arbitration associations or such
similar organizations as the Librarian shall select. The 2 arbitrators
so selected shall, within 10 days after their selection, choose a third
arbitrator from the same lists, who shall serve as the chairperson of
the arbitrators. If such 2 arbitrators fail to agree upon the selection
of a third arbitrator, the Librarian of Congress shall promptly select
the third arbitrator.
``(c) Arbitration Proceedings.--Copyright arbitration royalty
panels shall conduct arbitration proceedings, in accordance with such
procedures as they may adopt, for the purpose of making their
determinations in carrying out the purposes set forth in section 801.
The arbitration panels shall act on the basis of a fully documented
written record, prior decisions of the Copyright Royalty Tribunal,
prior copyright arbitration panel determinations, and rulings by the
Librarian of Congress under section 801(c). Any copyright owner who
claims to be entitled to royalties under section 111, 116, or 119, or
any interested copyright party who claims to be entitled to royalties
under section 1006, may submit relevant information and proposals to
the arbitration panels in proceedings applicable to such copyright
owner or interested copyright party, and any other person participating
in arbitration proceedings may submit such relevant information and
proposals to the arbitration panel conducting the proceedings. The
parties to the proceedings shall bear the entire cost thereof in such
manner and proportion as the arbitration panels shall direct.
``(d) Report to the Librarian of Congress.--Not later than 180 days
after publication of the notice initiating an arbitration proceeding,
the copyright arbitration royalty panel conducting the proceeding shall
report to the Librarian of Congress its determination concerning the
royalty fee or distribution of royalty fees, as the case may be. Such
report shall be accompanied by the written record, and shall set forth
the facts that the arbitration panel found relevant to its
determination.
``(e) Action by Librarian of Congress.--Within 60 days after
receiving the report of a copyright arbitration royalty panel under
subsection (d), the Librarian of Congress, upon the recommendation of
the Register of Copyrights, shall adopt or reject the determination of
the arbitration panel. The Librarian shall adopt the determination of
the arbitration panel unless the Librarian finds that the determination
is arbitrary. If the Librarian rejects the determination of the
arbitration panel, the Librarian 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 the royalty fee or
distribution of fees, as the case may be. The Librarian shall cause to
be published in the Federal Register the determination of the
arbitration panel, and the decision of the Librarian (including an
order issued under the preceding sentence). The Librarian shall also
publicize such determination and decision in such other manner as the
Librarian considers appropriate. The Librarian shall also make the
report of the arbitration panel and the accompanying record available
for public inspection and copying.
``(f) Judicial Review.--Any decision of the Librarian of Congress
under subsection (e) with respect to a determination of an arbitration
panel may be appealed, by any aggrieved party who would be bound by the
determination, 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. If no appeal is brought within such
30-day period, the decision of the Librarian is final, and the royalty
fee or determination with respect to the distribution of fees, as the
case may be, shall take effect as set forth in the decision. The
pendency of an appeal under this paragraph shall not relieve persons
obligated to make royalty payments under sections 111, 115, 116, 118,
119, or 1003 who would be affected by the determination on appeal to
deposit the statement of account and royalty fees specified in those
sections. The court shall have jurisdiction to modify or vacate a
decision of the Librarian only if it finds, on the basis of the record
before the Librarian, that the Librarian acted in an arbitrary manner.
If the court modifies the decision of the Librarian, the court shall
have jurisdiction to enter its own determination with respect to the
amount or distribution of royalty fees and costs, to order the
repayment of any excess fees, and to order the payment of any underpaid
fees, and the interest pertaining respectively thereto, in accordance
with its final judgment. The court may further vacate the decision of
the arbitration panel and remand the case for arbitration proceedings
in accordance with subsection (c).
``(g) Administrative Matters.--
``(1) Deduction of costs from royalty fees.--The Librarian
of Congress and the Register of Copyrights may, to the extent
not otherwise provided under this title, deduct from royalty
fees deposited or collected under this title the reasonable
costs incurred by the Library of Congress and the Copyright
Office under this chapter. Such deduction may be made before
the fees are distributed to any copyright claimants.
``(2) Positions required for administration of compulsory
licensing.--Section 307 of the Legislative Branch
Appropriations Act, 1994, shall not apply to employee positions
in the Library of Congress that are required to be filled in
order to carry out section 111, 115, 116, 118, or 119 or
chapter 10.''.
(c) Adjustment of Compulsory License Rates.--Section 803 of title
17, United States Code, and the item relating to such section in the
table of sections at the beginning of chapter 8 of such title, are
repealed.
(d) Institution and Conclusion of Proceedings.--Section 804 of
title 17, United States Code, is amended as follows:
(1) Subsection (a) is amended to read as follows:
``(a)(1) With respect to proceedings under section 801(b)(1)
concerning the adjustment of royalty rates as provided in sections 115
and 116, and with respect to proceedings under subparagraphs (A) and
(D) of section 801(b)(2), during the calendar years specified in the
schedule set forth in paragraphs (2), (3), and (4), any owner or user
of a copyrighted work whose royalty rates are specified by this title,
established by the Copyright Royalty Tribunal before the date of the
enactment of the Copyright Royalty Tribunal Reform Act of 1993, or
established by a copyright arbitration royalty panel after such date of
enactment, may file a petition with the Librarian of Congress declaring
that the petitioner requests an adjustment of the rate. The Librarian
of Congress shall, upon the recommendation of the Register of
Copyrights, make a determination as to whether the petitioner has such
a significant interest in the royalty rate in which an adjustment is
requested. If the Librarian determines that the petitioner has such a
significant interest, the Librarian shall cause notice of this
determination, with the reasons therefor, to be published in the
Federal Register, together with the notice of commencement of
proceedings under this chapter.
``(2) In proceedings under section 801(b)(2)(A) and (D), a petition
described in paragraph (1) may be filed during 1995 and in each
subsequent fifth calendar year.
``(3) In proceedings under section 801(b)(1) concerning the
adjustment of royalty rates as provided in section 115, a petition
described in paragraph (1) may be filed in 1997 and in each subsequent
tenth calendar year.
``(4)(A) In proceedings under section 801(b)(1) concerning the
adjustment of royalty rates as provided in section 116, a petition
described in paragraph (1) may be filed at any time within 1 year after
negotiated licenses authorized by section 116 are terminated or expire
and are not replaced by subsequent agreements.
``(B) If a negotiated license authorized by section 116 is
terminated or expires and is not replaced by another such license
agreement which provides permission to use a quantity of musical works
not substantially smaller than the quantity of such works performed on
coin-operated phonorecord players during the 1-year period ending March
1, 1989, the Librarian of Congress shall, upon petition filed under
paragraph (1) within 1 year after such termination or expiration,
convene a copyright arbitration royalty panel. The arbitration panel
shall promptly establish an interim royalty rate or rates for the
public performance by means of a coin-operated phonorecord player of
non-dramatic musical works embodied in phonorecords which had been
subject to the terminated or expired negotiated license agreement. Such
rate or rates shall be the same as the last such rate or rates and
shall remain in force until the conclusion of proceedings by the
arbitration panel, in accordance with section 802, to adjust the
royalty rates applicable to such works, or until superseded by a new
negotiated license agreement, as provided in section 116(b).''.
(2) Subsection (b) is amended--
(A) by striking ``subclause'' and inserting
``subparagraph'';
(B) by striking ``Tribunal'' the first place it
appears and inserting ``Copyright Royalty Tribunal or
the Librarian of Congress'';
(C) by striking ``Tribunal'' the second and third
places it appears and inserting ``Librarian'';
(D) by striking ``Tribunal'' the last place it
appears and inserting ``Copyright Royalty Tribunal or
the Librarian of Congress''; and
(E) by striking ``(a)(2), above'' and inserting
``subsection (a) of this section''.
(3) Subsection (c) is amended by striking ``Tribunal'' and
inserting ``Librarian of Congress''.
(4) Subsection (d) is amended--
(A) by striking ``Chairman of the Tribunal'' and
inserting ``Librarian of Congress''; and
(B) by striking ``determination by the Tribunal''
and inserting ``a determination''.
(5) Section 804 is further amended by striking subsection
(e).
(e) Repeal.--Sections 805 through 810 of title 17, United States
Code, and the items relating to such sections in the table of sections
at the beginning of chapter 8 of such title, are repealed.
(f) Clerical Amendment.--The table of sections at the beginning of
chapter 8 of title 17, United States Code, is amended by striking the
items relating to sections 801 and 802 and inserting the following:
``801. Copyright arbitration royalty panels: establishment and purpose.
``802. Membership and proceedings of copyright arbitration royalty
panels.''.
SEC. 3. JUKEBOX LICENSES.
(a) Repeal of Compulsory License.--Section 116 of title 17, United
States Code, and the item relating to section 116 in the table of
sections at the beginning of chapter 1 of such title, are repealed.
(b) Negotiated Licenses.--(1) Section 116A of title 17, United
States Code, is amended--
(A) by redesignating such section as section 116;
(B) by striking subsection (b) and redesignating
subsections (c) and (d) as subsections (b) and (c),
respectively;
(C) in subsection (b)(2) (as so redesignated) by striking
``Copyright Royalty Tribunal'' each place it appears and
inserting ``Librarian of Congress'';
(D) in subsection (c) (as so redesignated)--
(i) in the subsection caption by striking ``Royalty
Tribunal'' and inserting ``Arbitration Royalty Panel'';
(ii) by striking ``subsection (c)'' and inserting
``subsection (b)''; and
(iii) by striking ``the Copyright Royalty
Tribunal'' and inserting ``a copyright arbitration
royalty panel''; and
(E) by striking subsections (e), (f), and (g).
(2) The table of sections at the beginning of chapter 1 of title
17, United States Code, is amended by striking ``116A'' and inserting
``116''.
SEC. 4. PUBLIC BROADCASTING COMPULSORY LICENSE.
Section 118 of title 17, United States Code, is amended--
(1) in subsection (b)--
(A) by striking the first 2 sentences;
(B) in the third sentence by striking ``works
specified by this subsection'' and inserting
``published nondramatic musical works and published
pictorial, graphic, and sculptural works'';
(C) in paragraph (1)--
(i) in the first sentence by striking ``,
within one hundred and twenty days after
publication of the notice specified in this
subsection,''; and
(ii) by striking ``Copyright Royalty
Tribunal'' each place it appears and inserting
``Librarian of Congress'';
(D) in paragraph (2) by striking ``Tribunal'' and
inserting ``Librarian of Congress'';
(E) in paragraph (3)--
(i) by striking the first sentence and
inserting the following: ``In the absence of
license agreements negotiated under paragraph
(2), the Librarian of Congress shall, pursuant
to chapter 8, convene a copyright arbitration
royalty panel to determine and publish in the
Federal Register a schedule of rates and terms
which, subject to paragraph (2), shall be
binding on all owners of copyright in works
specified by this subsection and public
broadcasting entities, regardless of whether
such copyright owners have submitted proposals
to the Librarian of Congress.'';
(ii) in the second sentence--
(I) by striking ``Copyright Royalty
Tribunal'' and inserting ``copyright
arbitration royalty panel''; and
(II) by striking ``clause (2) of
this subsection'' and inserting
``paragraph (2)''; and
(iii) in the last sentence by striking
``Copyright Royalty Tribunal'' and inserting
``Librarian of Congress''; and
(F) by striking paragraph (4);
(2) in subsection (c)--
(A) by striking ``1982'' and inserting ``1997'';
and
(B) by striking ``Copyright Royalty Tribunal'' and
inserting ``Librarian of Congress'';
(3) in subsection (d)--
(A) by striking ``to the transitional provisions of
subsection (b)(4), and'';
(B) by striking ``the Copyright Royalty Tribunal''
and inserting ``a copyright arbitration royalty
panel''; and
(C) in paragraphs (2) and (3) by striking
``clause'' each place it appears and inserting
``paragraph''; and
(4) in subsection (g) by striking ``clause'' and inserting
``paragraph''.
SEC. 5. SECONDARY TRANSMISSIONS BY SUPERSTATIONS AND NETWORK STATIONS
FOR PRIVATE VIEWING.
Section 119 of title 17, United States Code, is amended--
(1) in subsection (b)--
(A) in paragraph (1) by striking ``, after
consultation with the Copyright Royalty Tribunal,''
each place it appears;
(B) in paragraph (2) by striking ``Copyright
Royalty Tribunal'' and inserting ``Librarian of
Congress'';
(C) in paragraph (3) by striking ``Copyright
Royalty Tribunal'' and inserting ``Librarian of
Congress''; and
(D) in paragraph (4)--
(i) by striking ``Copyright Royalty
Tribunal'' each place it appears and inserting
``Librarian of Congress'';
(ii) by striking ``Tribunal'' each place it
appears and inserting ``Librarian of
Congress''; and
(iii) in subparagraph (B) by striking
``conduct a proceeding'' in the last sentence
and inserting ``convene a copyright arbitration
royalty panel''; and
(2) in subsection (c)--
(A) in the subsection caption by striking
``Determination'' and inserting ``Adjustment'';
(B) in paragraph (2) by striking ``Copyright
Royalty Tribunal'' each place it appears and inserting
``Librarian of Congress'';
(C) in paragraph (3)--
(i) in subparagraph (A)--
(I) by striking ``Copyright Royalty
Tribunal'' and inserting ``Librarian of
Congress''; and
(II) by striking the last sentence
and inserting the following: ``Such
arbitration proceeding shall be
conducted under chapter 8.'';
(ii) by striking subparagraphs (B) and (C);
(iii) in subparagraph (D)--
(I) by redesignating such
subparagraph as subparagraph (B); and
(II) by striking ``Arbitration
Panel'' and inserting ``copyright
arbitration royalty panel appointed
under chapter 8'';
(iv) by striking subparagraphs (E) and (F);
(v) by amending subparagraph (G) to read as
follows:
``(C) Period during which decision of arbitration
panel or order of librarian effective.--The obligation
to pay the royalty fee established under a
determination which--
``(i) is made by a copyright arbitration
royalty panel in an arbitration proceeding
under this paragraph and is adopted by the
Librarian of Congress under section 802(e), or
``(ii) is established by the Librarian of
Congress under section 802(e),
shall become effective as provided in section
802(f).''; and
(vi) in subparagraph (H)--
(I) by redesignating such
subparagraph as subparagraph (D); and
(II) by striking ``adopted or
ordered under subparagraph (F)'' and
inserting ``referred to in subparagraph
(C)''; and
(D) by striking paragraph (4).
SEC. 6. CONFORMING AMENDMENTS.
(a) Cable Compulsory License.--Section 111(d) of title 17, United
States Code, is amended as follows:
(1) Paragraph (1) is amended by striking ``, after
consultation with the Copyright Royalty Tribunal (if and when
the Tribunal has been constituted),''.
(2) Paragraph (1)(A) is amended by striking ``, after
consultation with the Copyright Royalty Tribunal (if and when
the Tribunal has been constituted),''.
(3) Paragraph (2) is amended by striking the second and
third sentences and by inserting the following: ``All funds
held by the Secretary of the Treasury shall be invested in
interest-bearing United States securities for later
distribution with interest by the Librarian of Congress in the
event no controversy over distribution exists, or by a
copyright arbitration royalty panel in the event a controversy
over such distribution exists.''.
(4) Paragraph (4)(A) is amended--
(A) by striking ``Copyright Royalty Tribunal'' and
inserting ``Librarian of Congress''; and
(B) by striking ``Tribunal'' and inserting
``Librarian of Congress''.
(5) Paragraph (4)(B) is amended to read as follows:
``(B) After the first day of August of each year,
the Librarian of Congress shall, upon the
recommendation of the Register of Copyrights, determine
whether there exists a controversy concerning the
distribution of royalty fees. If the Librarian
determines that no such controversy exists, the
Librarian shall, after deducting reasonable
administrative costs under this section, distribute
such fees to the copyright owners entitled to such
fees, or to their designated agents. If the Librarian
finds the existence of a controversy, the Librarian
shall, pursuant to chapter 8 of this title, convene a
copyright arbitration royalty panel to determine the
distribution of royalty fees.''.
(6) Paragraph (4)(C) is amended by striking ``Copyright
Royalty Tribunal'' and inserting ``Librarian of Congress''.
(b) Audio Home Recording Act.--
(1) Royalty payments.--Section 1004(a)(3) of title 17,
United States Code, is amended--
(A) by striking ``Copyright Royalty Tribunal'' and
inserting ``Librarian of Congress''; and
(B) by striking ``Tribunal'' and inserting
``Librarian of Congress''.
(2) Deposit of royalty payments.--Section 1005 of title 17,
United States Code, is amended by striking the last sentence.
(3) Entitlement to royalty payments.--Section 1006(c) of
title 17, United States Code, is amended by striking
``Copyright Royalty Tribunal'' and inserting ``Librarian of
Congress shall convene a copyright arbitration royalty panel
which''.
(4) Procedures for distributing royalty payments.--Section
1007 of title 17, United States Code, is amended--
(A) in subsection (a)(1)--
(i) by striking ``Copyright Royalty
Tribunal'' and inserting ``Librarian of
Congress''; and
(ii) by striking ``Tribunal'' and inserting
``Librarian of Congress'';
(B) in subsection (b)--
(i) by striking ``Copyright Royalty
Tribunal'' and inserting ``Librarian of
Congress''; and
(ii) by striking ``Tribunal'' each place it
appears and inserting ``Librarian of
Congress''; and
(C) in subsection (c)--
(i) by striking the first sentence and
inserting ``If the Librarian of Congress finds
the existence of a controversy, the Librarian
shall, pursuant to chapter 8 of this title,
convene a copyright arbitration royalty panel
to determine the distribution of royalty
payments.'';
(ii) by striking ``Tribunal'' each place it
appears and inserting ``Librarian of
Congress''; and
(iii) in the last sentence by striking
``its reasonable administrative costs'' and
inserting ``the reasonable administrative costs
incurred by the Librarian''.
(5) Arbitration of certain disputes.--Section 1010 of title
17, United States Code, is amended--
(A) in subsection (b)--
(i) by striking ``Copyright Royalty
Tribunal'' and inserting ``Librarian of
Congress''; and
(ii) by striking ``Tribunal'' each place it
appears and inserting ``Librarian of
Congress'';
(B) in subsection (e)--
(i) in the subsection caption by striking
``Copyright Royalty Tribunal'' and inserting
``Librarian of Congress''; and
(ii) by striking ``Copyright Royalty
Tribunal'' and inserting ``Librarian of
Congress'';
(C) in subsection (f)--
(i) in the subsection caption by striking
``Copyright Royalty Tribunal'' and inserting
``Librarian of Congress'';
(ii) by striking ``Copyright Royalty
Tribunal'' and inserting ``Librarian of
Congress'';
(iii) by striking ``Tribunal'' each place
it appears and inserting ``Librarian of
Congress''; and
(iv) in the third sentence by striking
``its'' and inserting ``the Librarian's''; and
(D) in subsection (g)--
(i) by striking ``Copyright Royalty
Tribunal'' and inserting ``Librarian of
Congress'';
(ii) by striking ``Tribunal's decision''
and inserting ``decision of the Librarian of
Congress''; and
(iii) by striking ``Tribunal'' each place
it appears and inserting ``Librarian of
Congress''.
SEC. 7. EFFECTIVE DATE AND TRANSITION PROVISIONS.
(a) In General.--This Act and the amendments made by this Act shall
take effect on January 1, 1994.
(b) Effectiveness of Existing Rates and Distributions.--All royalty
rates and all determinations with respect to the proportionate division
of compulsory license fees among copyright claimants, whether made by
the Copyright Royalty Tribunal, or by voluntary agreement, before the
effective date set forth in subsection (a) shall remain in effect until
modified by voluntary agreement or pursuant to the amendments made by
this Act.
(c) Transfer of Appropriations.--All unexpended balances of
appropriations made to the Copyright Royalty Tribunal, as of the
effective date of this Act, are transferred on such effective date to
the Copyright Office for use by the Copyright Office for the purposes
for which such appropriations were made.
Passed the House of Representatives October 12, 1993.
Attest:
Clerk.
HR 2840 EH----2
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