[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 506 Reported in Senate (RS)]





                                                        Calendar No. 40

105th CONGRESS

  1st Session

                                 S. 506

_______________________________________________________________________

                                 A BILL

    To clarify certain copyright provisions, and for other purposes.

_______________________________________________________________________

                             April 17, 1997

                       Reported without amendment





                                                        Calendar No. 40
105th CONGRESS
  1st Session
                                 S. 506

    To clarify certain copyright provisions, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 20, 1997

   Mr. Hatch introduced the following bill; which was read twice and 
               referred to the Committee on the Judiciary

                             April 17, 1997

                Reported by Mr. Hatch, without amendment

_______________________________________________________________________

                                 A BILL


 
    To clarify certain copyright provisions, 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 Clarifications Act of 
1997''.

SEC. 2. SATELLITE HOME VIEWER ACT OF 1994.

    The Satellite Home Viewer Act of 1994 (Public Law 103-369) is 
amended as follows:
            (1) Section 2(3)(A) is amended to read as follows:
                    ``(A) in clause (i) by striking `12 cents' and 
                inserting `17.5 cents per subscriber in the case of 
                superstations that as retransmitted by the satellite 
                carrier include any program which, if delivered by any 
                cable system in the United States, would be subject to 
                the syndicated exclusivity rules of the Federal 
                Communications Commission, and 14 cents per subscriber 
                in the case of superstations that are syndex-proof as 
                defined in section 258.2 of title 37, Code of Federal 
                Regulations'; and''.
            (2) Section 2(4) is amended to read as follows:
            ``(4) Subsection (c) is amended--
                    ``(A) in paragraph (1)--
                            ``(i) by striking `until December 31, 
                        1992,';
                            ``(ii) by striking `(2), (3) or (4)' and 
                        inserting `(2) or (3)'; and
                            ``(iii) by striking the second sentence;
                    ``(B) in paragraph (2)--
                            ``(i) in subparagraph (A) by striking `July 
                        1, 1991' and inserting `July 1, 1996'; and
                            ``(ii) in subparagraph (D) by striking 
                        `December 31, 1994' and inserting `December 31, 
                        1999, or in accordance with the terms of the 
                        agreement, whichever is later'; and
                    ``(C) in paragraph (3)--
                            ``(i) in subparagraph (A) by striking 
                        `December 31, 1991' and inserting `January 1, 
                        1997';
                            ``(ii) by amending subparagraph (B) to read 
                        as follows:
                    `(B) Establishment of royalty fees.--In determining 
                royalty fees under this paragraph, the copyright 
                arbitration royalty panel appointed under chapter 8 
                shall establish fees for the retransmission of network 
                stations and superstations that most clearly represent 
                the fair market value of secondary transmissions. In 
                determining the fair market value, the panel shall base 
                its decision on economic, competitive, and programming 
                information presented by the parties, including--
                            `(i) the competitive environment in which 
                        such programming is distributed, the cost of 
                        similar signals in similar private and 
                        compulsory license marketplaces, and any 
                        special features and conditions of the 
                        retransmission marketplace;
                            `(ii) the economic impact of such fees on 
                        copyright owners and satellite carriers; and
                            `(iii) the impact on the continued 
                        availability of secondary transmissions to the 
                        public.'; and
                            ``(iii) in subparagraph (C), by inserting 
                        `or July 1, 1997, whichever is later' after 
                        `section 802(g)'.''.
            (3) Section 2(5)(A) is amended to read as follows:
                    ``(A) in paragraph (5)(C) by striking `the date of 
                the enactment of the Satellite Home Viewer Act of 1988' 
                and inserting `November 16, 1988'; and''.

SEC. 3. COPYRIGHT IN RESTORED WORKS.

    Section 104A of title 17, United States Code, is amended as 
follows:
            (1) Subsection (d)(3)(A) is amended to read as follows:
            ``(3) Existing derivative works.--(A) In the case of a 
        derivative work that is based upon a restored work and is 
        created--
                    ``(i) before the date of the enactment of the 
                Uruguay Round Agreements Act, if the source country of 
                the restored work is an eligible country on such date, 
                or
                    ``(ii) before the date on which the source country 
                of the restored work becomes an eligible country, if 
                that country is not an eligible country on such date of 
                enactment,
        a reliance party may continue to exploit that derivative work 
        for the duration of the restored copyright if the reliance 
        party pays to the owner of the restored copyright reasonable 
        compensation for conduct which would be subject to a remedy for 
        infringement but for the provisions of this paragraph.''.
            (2) Subsection (e)(1)(B)(ii) is amended by striking the 
        last sentence.
            (3) Subsection (h)(2) is amended to read as follows:
            ``(2) The `date of restoration' of a restored copyright 
        is--
                    ``(A) January 1, 1996, if the source country of the 
                restored work is a nation adhering to the Berne 
                Convention or a WTO member country on such date; or
                    ``(B) the date of adherence or proclamation, in the 
                case of any other source country of the restored 
                work.''.
            (4) Subsection (h)(3) is amended to read as follows:
            ``(3) The term `eligible country' means a nation, other 
        than the United States, that--
                    ``(A) becomes a WTO member country after the date 
                of the enactment of the Uruguay Round Agreements Act;
                    ``(B) on such date of enactment is, or after such 
                date of enactment becomes, a member of the Berne 
                Convention; or
                    ``(C) after such date of enactment becomes subject 
                to a proclamation under subsection (g).
        For purposes of this paragraph, a nation that is a member of 
        the Berne Convention on the date of the enactment of the 
        Uruguay Round Agreements Act shall be construed to become an 
        eligible country on such date of enactment.''.

SEC. 4. LICENSES FOR NONEXEMPT SUBSCRIPTION TRANSMISSIONS.

    Section 114(f) of title 17, United States Code, is amended--
            (1) in paragraph (1), by inserting ``, or, if a copyright 
        arbitration royalty panel is convened, ending 30 days after the 
        Librarian issues and publishes in the Federal Register an order 
        adopting the determination of the copyright arbitration royalty 
        panel or an order setting the terms and rates (if the Librarian 
        rejects the panel's determination)'' after ``December 31, 
        2000''; and
            (2) in paragraph (2), by striking ``and publish in the 
        Federal Register''.

SEC. 5. ROYALTY PAYABLE UNDER COMPULSORY LICENSE.

    Section 115(c)(3)(D) of title 17, United States Code, is amended by 
striking ``and publish in the Federal Register''.

SEC. 6. NEGOTIATED LICENSE FOR JUKEBOXES.

    Section 116 of title 17, United States Code, is amended--
            (1) by amending subsection (b)(2) to read as follows:
            ``(2) Arbitration.--Parties not subject to such a 
        negotiation may determine, by arbitration in accordance with 
        the provisions of chapter 8, the terms and rates and the 
        division of fees described in paragraph (1).''; and
            (2) by adding at the end the following new subsection:
    ``(d) Definitions.--As used in this section, the following terms 
mean the following:
            ``(1) A `coin-operated phonorecord player' is a machine or 
        device that--
                    ``(A) is employed solely for the performance of 
                nondramatic musical works by means of phonorecords upon 
                being activated by the insertion of coins, currency, 
                tokens, or other monetary units or their equivalent;
                    ``(B) is located in an establishment making no 
                direct or indirect charge for admission;
                    ``(C) is accompanied by a list which is comprised 
                of the titles of all the musical works available for 
                performance on it, and is affixed to the phonorecord 
                player or posted in the establishment in a prominent 
                position where it can be readily examined by the 
                public; and
                    ``(D) affords a choice of works available for 
                performance and permits the choice to be made by the 
                patrons of the establishment in which it is located.
            ``(2) An `operator' is any person who, alone or jointly 
        with others--
                    ``(A) owns a coin-operated phonorecord player;
                    ``(B) has the power to make a coin-operated 
                phonorecord player available for placement in an 
                establishment for purposes of public performance; or
                    ``(C) has the power to exercise primary control 
                over the selection of the musical works made available 
                for public performance on a coin-operated phonorecord 
                player.''.

SEC. 7. REGISTRATION AND INFRINGEMENT ACTIONS.

    Section 411(b)(1) of title 17, United States Code, is amended to 
read as follows:
            ``(1) serves notice upon the infringer, not less than 48 
        hours before such fixation, identifying the work and the 
        specific time and source of its first transmission, and 
        declaring an intention to secure copyright in the work; and''.

SEC. 8. COPYRIGHT OFFICE FEES.

    (a) Fee Increases.--Section 708(b) of title 17, United States Code, 
is amended to read as follows:
    ``(b) In calendar year 1997 and in any subsequent calendar year, 
the Register of Copyrights, by regulation, may increase the fees 
specified in subsection (a) in the following manner:
            ``(1) The Register shall conduct a study of the costs 
        incurred by the Copyright Office for the registration of 
        claims, the recordation of documents, and the provision of 
        services. The study shall also consider the timing of any 
        increase in fees and the authority to use such fees consistent 
        with the budget.
            ``(2) The Register may, on the basis of the study under 
        paragraph (1), and subject to paragraph (5), increase fees to 
        not more than that necessary to cover the reasonable costs 
        incurred by the Copyright Office for the services described in 
        paragraph (1), plus a reasonable inflation adjustment to 
        account for any estimated increase in costs.
            ``(3) Any newly established fee under paragraph (2) shall 
        be rounded off to the nearest dollar, or for a fee less than 
        $12, rounded off to the nearest 50 cents.
            ``(4) The fees established under this subsection shall be 
        fair and equitable and give due consideration to the objectives 
        of the copyright system.
            ``(5) If the Register determines under paragraph (2) that 
        fees should be increased, the Register shall prepare a proposed 
        fee schedule and submit the schedule with the accompanying 
        economic analysis to the Congress. The fees proposed by the 
        Register may be instituted after the end of 120 days after the 
        schedule is submitted to the Congress unless, within that 120-
        day period, a law is enacted stating in substance that the 
        Congress does not approve the schedule.''.
    (b) Deposit of Fees.--Section 708(d) of such title is amended to 
read as follows:
    ``(d)(1) Except as provided in paragraph (2), all fees received 
under this section shall be deposited by the Register of Copyrights in 
the Treasury of the United States and shall be credited to the 
appropriations for necessary expenses of the Copyright Office. Such 
fees that are collected shall remain available until expended. The 
Register may, in accordance with regulations that he or she shall 
prescribe, refund any sum paid by mistake or in excess of the fee 
required by this section.
    ``(2) In the case of fees deposited against future services, the 
Register of Copyrights shall request the Secretary of the Treasury to 
invest in interest-bearing securities in the United States Treasury any 
portion of the fees that, as determined by the Register, is not 
required to meet current deposit account demands. Funds from such 
portion of fees shall be invested in securities that permit funds to be 
available to the Copyright Office at all times if they are determined 
to be necessary to meet current deposit account demands. Such 
investments shall be in public debt securities with maturities suitable 
to the needs of the Copyright Office, as determined by the Register of 
Copyrights, and bearing interest at rates determined by the Secretary 
of the Treasury, taking into consideration current market yields on 
outstanding marketable obligations of the United States of comparable 
maturities.
    ``(3) The income on such investments shall be deposited in the 
Treasury of the United States and shall be credited to the 
appropriations for necessary expenses of the Copyright Office.''.

SEC. 9. COPYRIGHT ARBITRATION ROYALTY PANELS.

    (a) Establishment and Purpose.--Section 801 of title 17, United 
States Code, is amended--
            (1) in subsection (b)(1) by striking ``and 116'' in the 
        first sentence and inserting ``116, and 119'';
            (2) in subsection (c) by inserting after ``panel'' at the 
        end of the sentence the following:
``, including--
            ``(1) authorizing the distribution of those royalty fees 
        collected under sections 111, 119, and 1005 that the Librarian 
has found are not subject to controversy; and
            ``(2) accepting or rejecting royalty claims filed under 
        sections 111, 119, and 1007 on the basis of timeliness or the 
        failure to establish the basis for a claim''; and
            (3) by amending subsection (d) to read as follows:
    ``(d) Support and Reimbursement of Arbitration Panels.--The 
Librarian of Congress, upon the recommendation of the Register of 
Copyrights, shall provide the copyright arbitration royalty panels with 
the necessary administrative services related to proceedings under this 
chapter, and shall reimburse the arbitrators presiding in distribution 
proceedings at such intervals and in such manner as the Librarian shall 
provide by regulation. Each such arbitrator is an independent 
contractor acting on behalf of the United States, and shall be hired 
pursuant to a signed agreement between the Library of Congress and the 
arbitrator. Payments to the arbitrators shall be considered costs 
incurred by the Library of Congress and the Copyright Office for 
purposes of section 802(h)(1).''.
    (b) Proceedings.--Section 802 of title 17, United States Code, is 
amended--
            (1) in subsection (c) by striking the last sentence; and
            (2) in subsection (h) by amending paragraph (1) to read as 
        follows:
            ``(1) Deduction of costs of library of congress and 
        copyright office 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. In addition, all funds 
        made available by an appropriations Act as offsetting 
        collections and available for deductions under this subsection 
        shall remain available until expended. In ratemaking 
        proceedings, the Librarian of Congress and the Copyright Office 
        may assess their reasonable costs directly to the parties to 
        the most recent relevant arbitration proceeding, 50 percent of 
        the costs to the parties who would receive royalties from the 
        royalty rate adopted in the proceeding and 50 percent of the 
        costs to the parties who would pay the royalty rate so 
        adopted.''.

SEC. 10. DIGITAL AUDIO RECORDING DEVICES AND MEDIA.

    Section 1007(b) of title 17, United States Code, is amended by 
striking ``Within 30 days after'' in the first sentence and inserting 
``After''.

SEC. 11. CONFORMING AMENDMENT.

    Section 4 of the Digital Performance Right in Sound Recordings Act 
of 1995 (Public Law 104-39) is amended by redesignating paragraph (5) 
as paragraph (4).

SEC. 12. MISCELLANEOUS TECHNICAL AMENDMENTS.

    (a) Amendments to Title 17, United States Code.--Title 17, United 
States Code, is amended as follows:
            (1) The table of chapters at the beginning of title 17, 
        United States Code, is amended--
                    (A) in the item relating to chapter 6, by striking 
                ``Requirement'' and inserting ``Requirements'';
                    (B) in the item relating to chapter 8, by striking 
                ``Royalty Tribunal'' and inserting ``Arbitration 
                Royalty Panels'';
                    (C) in the item relating to chapter 9, by striking 
                ``semiconductor chip products'' and inserting 
                ``Semiconductor Chip Products''; and
                    (D) by inserting after the item relating to chapter 
                9 the following:

``10. Digital Audio Recording Devices and Media.............    1001''.
            (2) The item relating to section 117 in the table of 
        sections at the beginning of chapter 1 is amended to read as 
        follows:

``117. Limitations on exclusive rights: Computer programs.''.
            (3) Section 101 is amended in the definition of to perform 
        or display a work ``publicly'' by striking ``processs'' and 
        inserting ``process''.
            (4) Section 108(e) is amended by striking ``pair'' and 
        inserting ``fair''.
            (5) Section 109(a)(2)(B) is amended by striking 
        ``Copyright'' and inserting ``Copyrights''.
            (6) Section 110 is amended--
                    (A) in paragraph (8) by striking the period at the 
                end and inserting a semicolon;
                    (B) in paragraph (9) by striking the period at the 
                end and inserting ``; and''; and
                    (C) in paragraph (10) by striking ``4 above'' and 
                inserting ``(4)''.
            (7) Section 115(c)(3)(E) is amended--
                    (A) in clause (i) by striking ``section 106(1) and 
                (3)'' each place it appears and inserting ``paragraphs 
                (1) and (3) of section 106''; and
                    (B) in clause (ii)(II) by striking ``sections 
                106(1) and 106(3)'' and inserting ``paragraphs (1) and 
                (3) of section 106''.
            (8) Section 119(c)(1) is amended by striking ``unless 
        until'' and inserting ``unless''.
            (9) Section 304(c) is amended in the matter preceding 
        paragraph (1) by striking ``the subsection (a)(1)(C)'' and 
        inserting ``subsection (a)(1)(C)''.
            (10) Section 405(b) is amended by striking ``condition or'' 
        and inserting ``condition for''.
            (11) Section 407(d)(2) is amended by striking ``cost of'' 
        and inserting ``cost to''.
            (12) The item relating to section 504 in the table of 
        sections at the beginning of chapter 5 is amended by striking 
        ``Damage'' and inserting ``Damages''.
            (13) Section 504(c)(2) is amended by striking ``court it'' 
        and inserting ``court in''.
            (14) Section 509(b) is amended by striking ``merchandise; 
        and baggage'' and inserting ``merchandise, and baggage''.
            (15) Section 601(a) is amended by striking ``nondramtic'' 
        and inserting ``nondramatic''.
            (16) Section 601(b)(1) is amended by striking 
        ``subsustantial'' and inserting ``substantial''.
            (17) The item relating to section 710 in the table of 
        sections at the beginning of chapter 7 is amended by striking 
        ``Reproductions'' and inserting ``Reproduction''.
            (18) The item relating to section 801 in the table of 
        sections at the beginning of chapter 8 is amended by striking 
        ``establishment'' and inserting ``Establishment''.
            (19) Section 801(b) is amended--
                    (A) by striking ``shal be--'' and inserting ``shall 
                be as follows:'';
                    (B) in paragraph (1) by striking ``to make'' and 
                inserting ``To make'';
                    (C) in paragraph (2)--
                            (i) by striking ``to make'' and inserting 
                        ``To make''; and
                            (ii) in subparagraph (D) by striking 
                        ``adjustment; and'' and inserting 
                        ``adjustment.''; and
                    (D) in paragraph (3) by striking ``to distribute'' 
                and inserting ``To distribute''.
            (20) Section 803(b) is amended in the second sentence by 
        striking ``subsection subsection'' and inserting 
        ``subsection''.
            (21) The item relating to section 903 in the table of 
        sections at the beginning of chapter 9 is amended to read as 
        follows:

``903. Ownership, transfer, licensure, and recordation.''.
            (22) Section 909(b)(1) is amended--
                    (A) by striking ``force'' and inserting ``work''; 
                and
                    (B) by striking ``sumbol'' and inserting 
                ``symbol''.
            (23) Section 910(a) is amended in the second sentence by 
        striking ``as used'' and inserting ``As used''.
            (24) Section 1006(b)(1) is amended by striking ``Federation 
        Television'' and inserting ``Federation of Television''.
            (25) Section 1007 is amended--
                    (A) in subsection (a)(1) by striking ``The calendar 
                year in which this chapter takes effect'' and inserting 
                ``calendar year 1992''; and
                    (B) in subsection (b) by striking ``the year in 
                which this section takes effect'' and inserting 
                ``1992''.
    (b) Related Provisions.--
            (1) Section 1(a)(1) of the Act entitled ``An Act to amend 
        chapter 9 of title 17, United States Code, regarding protection 
        extended to semiconductor chip products of foreign entities'', 
        approved November 9, 1987 (17 U.S.C. 914 note), is amended by 
        striking ``orginating'' and inserting ``originating''.
            (2) Section 2319(b)(1) of title 18, United States Code, is 
        amended by striking ``last 10'' and inserting ``least 10''.

SEC. 13. EFFECTIVE DATES.

    (a) In General.--Except as provided in subsections (b) and (c), the 
amendments made by this title shall take effect on the date of the 
enactment of this Act.
    (b) Satellite Home Viewer Act of 1994.--The amendments made by 
section 2 shall be effective as if enacted as part of the Satellite 
Home Viewer Act of 1994 (Public Law 103-369).
    (c) Technical Amendment.--The amendment made by section 12(b)(1) 
shall be effective as if enacted on November 9, 1987.
                                 <all>