[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5285 Introduced in House (IH)]







107th CONGRESS
  2d Session
                                H. R. 5285

To amend title 17, United States Code, with respect to royalty fees for 
                  webcasting, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 26, 2002

Mr. Inslee (for himself, Mr. Nethercutt, Mr. Boucher, Mr. Manzullo, Mr. 
 Moran of Virginia, Mrs. Mink of Hawaii, Mr. Larsen of Washington, Mr. 
 Kucinich, Mr. Kleczka, Mr. Leach, Ms. Lofgren, Ms. Brown of Florida, 
Mr. Dicks, and Mr. Smith of Washington) introduced the following bill; 
          which was referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
To amend title 17, United States Code, with respect to royalty fees for 
                  webcasting, 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 ``Internet Radio Fairness Act''.

SEC. 2. APPLICABILITY OF ROYALTY RATES TO SMALL BUSINESS CONCERNS.

    (a) Inapplicability of Determination of July 8, 2002.--The 
determination by the Librarian of Congress of rates and terms for the 
digital performance of sound recordings and ephemeral recordings of 
July 8, 2002, pursuant to section 112(e) and section 114(f)(2)(B) of 
title 17, United States Code, shall not apply to transmissions and 
ephemeral recordings by small entities.
    (b) Future Proceedings.--The first determination of terms and rates 
of royalty payments that is made pursuant to section 114(f)(2)(B) of 
title 17, United States Code, after the enactment of this Act shall 
apply to transmissions (to which such section applies) that are made by 
small business concerns during the period beginning on the date of the 
enactment of the Digital Millennium Copyright Act and ending on the 
date provided for in that determination.
    (c) Voluntary Negotiations.--Nothing in this section shall affect 
the participation of small entities in voluntary negotiation 
proceedings under section 114(f)(2)(A) and (C)(i) of title 17, United 
States Code.

SEC. 3. STANDARD FOR DETERMINING RATES.

    Section 114(f)(2)(B) of title 17, United States Code, is amended--
            (1) by striking ``Such rates and terms shall distinguish'' 
        and all that follows through ``capital investment, cost, and 
        risk.''; and
            (2) by inserting after ``as the parties may agree.'' the 
        following: ``The copyright arbitration royalty panel shall 
        establish rates and terms in accordance with the objectives set 
        forth in section 801(b)(1).''.

SEC. 4. COSTS OF PROCEEDINGS; REGULATING FLEXIBILITY.

    (a) Costs of Proceedings.--Section 802(c) of title 17, United 
States Code, is amended--
            (1) by inserting after ``In ratemaking proceedings, the 
        parties to the proceedings'' the following: ``, except for 
        small entities that are parties to ratemaking proceedings under 
        section 114(f)(2)(B),''; and
            (2) by adding at the end the following: ``In this 
        subsection, the term `small entity' means a small business, 
        small organization, or small governmental jurisdiction, as 
        those terms are defined in section 601 of title 5.''.
    (b) Regulating Flexibility.--Section 701(e) of title 17, United 
States Code, is amended by inserting before the period ``and to the 
provisions of chapter 6 of title 5''.

SEC. 5. ELIMINATION OF CERTAIN STATUTORY LICENSES FOR EPHEMERAL 
              RECORDINGS.

    (a) Elimination of Statutory License.--Section 112(a) of title 17, 
United States Code, is amended by adding at the end the following:
    ``(3) Notwithstanding the provisions of section 106 and paragraph 
(1) of this subsection, and except in the case of a motion picture or 
other audiovisual work, it is not an infringement of copyright for a 
transmitting organization entitled to transmit to the public a 
performance or display of a work, under a license, including a 
statutory license under section 114(f), or transfer of the copyright or 
for a transmitting organization that is a broadcast radio station 
licensed as such by the Federal Communications Commission and that 
makes a broadcast transmission of a sound recording in a digital format 
on a nonsubscription basis, to make one or more copies or phonorecords 
of that work, if--
            ``(A) each copy or phonorecord is retained and used solely 
        by the transmitting organization that made it; and
            ``(B) each copy or phonorecord is used solely for the 
        purpose of making the transmitting organization's own 
        transmissions or for purposes of archival preservation or 
        security.''.
    (b) Conforming Amendments.--Section 112(e) of title 17, United 
States Code, is amended--
            (1) by striking in paragraph (1) ``or under a statutory 
        license in accordance with section 114(f)''; and
            (2) by striking in paragraph (1)(B) ``a statutory license 
        in accordance with section 114(f) or''.
    (c) Effective Date.--The amendments made by subsection (a) take 
effect on January 1, 2003.

SEC. 6. DEFINITION.

    In this Act, the term ``small entity'' means a small business, 
small organization, or small governmental jurisdiction, as those terms 
are defined in section 601 of title 5, United States Code.
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