[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1346 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                S. 1346

     To amend title 17, United States Code, to establish copyright 
 arbitration royalty panels to replace the Copyright Royalty Tribunal, 
                        and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

               August 3 (legislative day, June 30), 1993

  Mr. DeConcini (for himself and Mr. Hatch) introduced the following 
    bill; which was read twice and referred to the Committee on the 
                               Judiciary

_______________________________________________________________________

                                 A BILL


 
     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 heading is 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
            (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 803 or 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. 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 chairperson, the 
Librarian of Congress shall promptly select the chairperson.
    ``(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(b). Any copyright owner who 
claims to be entitled to royalties under section 111 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. 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. The pendency of an appeal under this 
paragraph shall not relieve persons obligated to make royalty payments 
under sections 111, 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).''.
    (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--
                    (A) by repealing paragraph (1); and
                    (B) in paragraph (2)--
                            (i) in the matter preceding subparagraph 
                        (A) by striking ``Tribunal,'' and all that 
                        follows through ``proceedings under this 
                        chapter.'' and inserting ``Copyright Royalty 
                        Tribunal before the date of the enactment of 
                        the Copyright Royalty Tribunal Reform Act of 
                        1993, or 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.'';
                            (ii) in subparagraph (C)--
                                    (I) in clause (i) by striking ``in 
                                1990 and in each subsequent tenth 
                                calendar year, and'', and by striking 
                                ``116A'' and inserting ``116''; and
                                    (II) by amending clause (ii) to 
                                read as follows:
                    ``(ii) If a negotiated license authorized by 
                section 116 is terminated or expires and is not 
                replaced by another license agreement under such 
                section, providing 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 subsection (a) 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(c).''.
            (2) Subsection (b) is amended--
                    (A) by striking ``Tribunal'' the first place it 
                appears and inserting ``Copyright Royalty Tribunal or 
                the Librarian of Congress'';
                    (B) by striking ``Tribunal'' the second and third 
                places it appears and inserting ``Librarian''; and
                    (C) by striking ``Tribunal'' the last place it 
                appears and inserting ``Copyright Royalty Tribunal or 
                the Librarian of Congress''.
            (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) Subsection (e) is amended by striking ``Tribunal'' and 
        inserting ``Librarian of Congress''.
    (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:

``Sec. 801. Copyright arbitration royalty panels: establishment and 
                            purpose.
``Sec. 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'' 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''; 
                and
                    (ii) 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 section 803, 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) by striking subsection (c); and
            (3) in subsection (d)--
                    (A) by redesignating such subsection as subsection 
                (c);
                    (B) by striking ``to the transitional provisions of 
                subsection (b)(4), and''; and
                    (C) by striking ``Copyright Royalty Tribunal'' and 
                inserting ``copyright arbitration royalty panel''.

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 (C) by striking 
                        ``conduct a proceeding'' in the last sentence 
                        and inserting ``convene a copyright arbitration 
                        royalty panel''; and
            (2) by striking subsection (c) and inserting the following:
    ``(c) Determination of Royalties.--The royalty fee payable under 
subsection (b)(1)(B) shall be that established by the Copyright Royalty 
Tribunal on May 1, 1992, as corrected on May 18, 1992.''.

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 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. The Librarian shall compile and publish on 
        a semiannual basis, a compilation of all statements of account 
        covering the relevant 6-month period provided by paragraph (1) 
        of this subsection.''.
            (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, 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) by striking ``Copyright 
                Royalty 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.''; and
                            (ii) by striking ``Tribunal'' each place it 
                        appears and inserting ``Librarian of 
                        Congress''.
            (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) by striking ``Copyright 
                Royalty Tribunal'' each place it appears and inserting 
                ``Librarian of Congress'';
                    (C) in subsection (f)--
                            (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 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''; and
                            (ii) by striking ``Tribunal'' each place it 
                        appears and inserting ``Librarian of 
                        Congress''.

SEC. 7. EFFECTIVE DATE AND TERMINATION.

    (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.

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