[House Report 116-252]
[From the U.S. Government Publishing Office]


116th Congress  }                                          {   Report
                        HOUSE OF REPRESENTATIVES
 1st Session    }                                          {   116-252

======================================================================



 
     COPYRIGHT ALTERNATIVE IN SMALL-CLAIMS ENFORCEMENT ACT OF 2019

                                _______
                                

October 22, 2019.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

    Mr. Nadler, from the Committee on the Judiciary, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 2426]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on the Judiciary, to whom was referred the 
bill (H.R. 2426) to amend title 17, United States Code, to 
establish an alternative dispute resolution program for 
copyright small claims, and for other purposes, having 
considered the same, report favorably thereon with an amendment 
and recommend that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................    17
Background and Need for the Legislation..........................    18
Hearings.........................................................    26
Committee Consideration..........................................    26
Committee Votes..................................................    26
Committee Oversight Findings.....................................    26
New Budget Authority and Tax Expenditures........................    26
Congressional Budget Office Cost Estimate........................    27
Duplication of Federal Programs..................................    28
Performance Goals and Objectives.................................    28
Advisory on Earmarks.............................................    28
Section-by-Section Analysis......................................    28
Changes in Existing Law Made by the Bill, as Reported............    34

    The amendment is as follows:
    Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Copyright Alternative in Small-Claims 
Enforcement Act of 2019'' or the ``CASE Act of 2019''.

SEC. 2. COPYRIGHT SMALL CLAIMS.

  (a) In General.--Title 17, United States Code, is amended by adding 
at the end the following:

                  ``CHAPTER 15--COPYRIGHT SMALL CLAIMS

``Sec.
``1501. Definitions.
``1502. Copyright Claims Board.
``1503. Authority and duties of the Copyright Claims Board.
``1504. Nature of proceedings.
``1505. Registration requirement.
``1506. Conduct of proceedings.
``1507. Effect of proceeding.
``1508. Review and confirmation by district court.
``1509. Relationship to other district court actions.
``1510. Implementation by Copyright Office.
``1511. Funding.

``Sec. 1501. Definitions

  ``In this chapter--
          ``(1) the term `party'--
                  ``(A) means a party; and
                  ``(B) includes the attorney of a party, as 
                applicable;
          ``(2) the term `claimant' means the real party in interest 
        that commences a proceeding before the Copyright Claims Board 
        under section 1506(e), pursuant to a permissible claim of 
        infringement brought under section 1504(c)(1), noninfringement 
        brought under section 1504(c)(2), or misrepresentation brought 
        under section 1504(c)(3);
          ``(3) the term `counterclaimant' means a respondent in a 
        proceeding before the Copyright Claims Board that--
                  ``(A) asserts a permissible counterclaim under 
                section 1504(c)(4) against the claimant in the 
                proceeding; and
                  ``(B) is the real party in interest with respect to 
                the counterclaim described in subparagraph (A); and
          ``(4) the term `respondent' means any person against whom a 
        proceeding is brought before the Copyright Claims Board under 
        section 1506(e), pursuant to a permissible claim of 
        infringement brought under section 1504(c)(1), noninfringement 
        brought under section 1504(c)(2), or misrepresentation brought 
        under section 1504(c)(3).

``Sec. 1502. Copyright Claims Board

  ``(a) In General.--There is established in the Copyright Office the 
Copyright Claims Board, which shall serve as an alternative forum in 
which parties may voluntarily seek to resolve certain copyright claims 
regarding any category of copyrighted work, as provided in this 
chapter.
  ``(b) Officers and Staff.--
          ``(1) Copyright claims officers.--The Register of Copyrights 
        shall recommend 3 full-time Copyright Claims Officers to serve 
        on the Copyright Claims Board in accordance with paragraph 
        (3)(A). The Officers shall be appointed by the Librarian of 
        Congress to such positions after consultation with the Register 
        of Copyrights.
          ``(2) Copyright claims attorneys.--The Register of Copyrights 
        shall hire not fewer than 2 full-time Copyright Claims 
        Attorneys to assist in the administration of the Copyright 
        Claims Board.
          ``(3) Qualifications.--
                  ``(A) Copyright claims officers.--
                          ``(i) In general.--Each Copyright Claims 
                        Officer shall be an attorney who has not fewer 
                        than 7 years of legal experience.
                          ``(ii) Experience.--Two of the Copyright 
                        Claims Officers shall have--
                                  ``(I) substantial experience in the 
                                evaluation, litigation, or adjudication 
                                of copyright infringement claims; and
                                  ``(II) between those 2 Officers, have 
                                represented or presided over a 
                                diversity of copyright interests, 
                                including those of both owners and 
                                users of copyrighted works.
                          ``(iii) Alternative dispute resolution.--The 
                        Copyright Claims Officer not described in 
                        clause (ii) shall have substantial familiarity 
                        with copyright law and experience in the field 
                        of alternative dispute resolution, including 
                        the resolution of litigation matters through 
                        that method of resolution.
                  ``(B) Copyright claims attorneys.--Each Copyright 
                Claims Attorney shall be an attorney who has not fewer 
                than 3 years of substantial experience in copyright 
                law.
          ``(4) Compensation.--
                  ``(A) Copyright claims officers.--
                          ``(i) Definition.--In this subparagraph, the 
                        term `senior level employee of the Federal 
                        Government' means an employee, other than an 
                        employee in the Senior Executive Service, the 
                        position of whom is classified above GS-15 of 
                        the General Schedule.
                          ``(ii) Pay range.--Each Copyright Claims 
                        Officer shall be compensated at a rate of pay 
                        that is not less than the minimum, and not more 
                        than the maximum, rate of pay payable for 
                        senior level employees of the Federal 
                        Government, including locality pay, as 
                        applicable.
                  ``(B) Copyright claims attorneys.--Each Copyright 
                Claims Attorney shall be compensated at a rate of pay 
                that is not more than the maximum rate of pay payable 
                for level 10 of GS-15 of the General Schedule, 
                including locality pay, as applicable.
          ``(5) Terms.--
                  ``(A) In general.--Subject to subparagraph (B), a 
                Copyright Claims Officer shall serve for a renewable 
                term of 6 years.
                  ``(B) Initial terms.--The terms for the first 
                Copyright Claims Officers appointed under this chapter 
                shall be as follows:
                          ``(i) The first such Copyright Claims Officer 
                        appointed shall be appointed for a term of 4 
                        years.
                          ``(ii) The second Copyright Claims Officer 
                        appointed shall be appointed for a term of 5 
                        years.
                          ``(iii) The third Copyright Claims Officer 
                        appointed shall be appointed for a term of 6 
                        years.
          ``(6) Vacancies and incapacity.--
                  ``(A) Vacancy.--
                          ``(i) In general.--If a vacancy occurs in the 
                        position of a Copyright Claims Officer, the 
                        Librarian of Congress shall, upon the 
                        recommendation of and in consultation with the 
                        Register of Copyrights, act expeditiously to 
                        appoint a Copyright Claims Officer for that 
                        position.
                          ``(ii) Vacancy before expiration.--An 
                        individual appointed to fill a vacancy 
                        occurring before the expiration of the term for 
                        which the predecessor of the individual was 
                        appointed shall be appointed to serve a 6-year 
                        term.
                  ``(B) Incapacity.--If a Copyright Claims Officer is 
                temporarily unable to perform the duties of the 
                Officer, the Librarian of Congress shall, upon 
                recommendation of and in consultation with the Register 
                of Copyrights, act expeditiously to appoint an interim 
                Copyright Claims Officer to perform such duties during 
                the period of such incapacity.
          ``(7) Sanction or removal.--Subject to section 1503(b), the 
        Librarian of Congress may sanction or remove a Copyright Claims 
        Officer.
          ``(8) Administrative support.--The Register of Copyrights 
        shall provide the Copyright Claims Officers and Copyright 
        Claims Attorneys with necessary administrative support, 
        including technological facilities, to carry out the duties of 
        the Officers and Attorneys under this chapter.
          ``(9) Location of copyright claims board.--The offices and 
        facilities of the Copyright Claims Officers and Copyright 
        Claims Attorneys shall be located at the Copyright Office.

``Sec. 1503. Authority and duties of the Copyright Claims Board

  ``(a) Functions.--
          ``(1) Copyright claims officers.--Subject to the provisions 
        of this chapter and applicable regulations, the functions of 
        the Copyright Claims Officers shall be as follows:
                  ``(A) To render determinations on the civil copyright 
                claims, counterclaims, and defenses that may be brought 
                before the Officers under this chapter.
                  ``(B) To ensure that claims, counterclaims, and 
                defenses are properly asserted and otherwise 
                appropriate for resolution by the Copyright Claims 
                Board.
                  ``(C) To manage the proceedings before the Officers 
                and render rulings pertaining to the consideration of 
                claims, counterclaims, and defenses, including with 
                respect to scheduling, discovery, evidentiary, and 
                other matters.
                  ``(D) To request, from participants and 
                nonparticipants in a proceeding, the production of 
                information and documents relevant to the resolution of 
                a claim, counterclaim, or defense.
                  ``(E) To conduct hearings and conferences.
                  ``(F) To facilitate the settlement by the parties of 
                claims and counterclaims.
                  ``(G)(i) To award monetary relief; and
                  ``(ii) to include in the determinations of the 
                Officers a requirement that certain activities under 
                section 1504(e)(2) cease or be mitigated, if the party 
                to undertake the applicable measure has so agreed.
                  ``(H) To provide information to the public concerning 
                the procedures and requirements of the Copyright Claims 
                Board.
                  ``(I) To maintain records of the proceedings before 
                the Officers, certify official records of such 
                proceedings as needed, and, as provided in section 
                1506(t), make the records in such proceedings available 
                to the public.
                  ``(J) To carry out such other duties as are set forth 
                in this chapter.
                  ``(K) When not engaged in performing the duties of 
                the Officers set forth in this chapter, to perform such 
                other duties as may be assigned by the Register of 
                Copyrights.
          ``(2) Copyright claims attorneys.--Subject to the provisions 
        of this chapter and applicable regulations, the functions of 
        the Copyright Claims Attorneys shall be as follows:
                  ``(A) To provide assistance to the Copyright Claims 
                Officers in the administration of the duties of those 
                Officers under this chapter.
                  ``(B) To provide assistance to members of the public 
                with respect to the procedures and requirements of the 
                Copyright Claims Board.
                  ``(C) To provide information to potential claimants 
                contemplating bringing a permissible action before the 
                Copyright Claims Board about obtaining a subpoena under 
                section 512(h) for the sole purpose of identifying a 
                potential respondent in such an action.
                  ``(D) When not engaged in performing the duties of 
                the Attorneys set forth in this chapter, to perform 
                such other duties as may be assigned by the Register of 
                Copyrights.
  ``(b) Independence in Determinations.--
          ``(1) In general.--The Copyright Claims Board shall render 
        the determinations of the Board in individual proceedings 
        independently on the basis of the records in the proceedings 
        before it and in accordance with the provisions of this title, 
        judicial precedent, and applicable regulations of the Register 
        of Copyrights.
          ``(2) Consultation.--The Copyright Claims Officers and 
        Copyright Claims Attorneys--
                  ``(A) may consult with the Register of Copyrights on 
                general issues of law; and
                  ``(B) subject to section 1506(x), may not consult 
                with the Register of Copyrights with respect to--
                          ``(i) the facts of any particular matter 
                        pending before the Officers and the Attorneys; 
                        or
                          ``(ii) the application of law to the facts 
                        described in clause (i).
          ``(3) Performance appraisals.--Notwithstanding any other 
        provision of law or any regulation or policy of the Library of 
        Congress or Register of Copyrights, any performance appraisal 
        of a Copyright Claims Officer or Copyright Claims Attorney may 
        not consider the substantive result of any individual 
        determination reached by the Copyright Claims Board as a basis 
        for appraisal except to the extent that result may relate to 
        any actual or alleged violation of an ethical standard of 
        conduct.
  ``(c) Direction by Register.--Subject to subsection (b), the 
Copyright Claims Officers and Copyright Claims Attorneys shall, in the 
administration of their duties, be under the general direction of the 
Register of Copyrights.
  ``(d) Inconsistent Duties Barred.--A Copyright Claims Officer or 
Copyright Claims Attorney may not undertake any duty that conflicts 
with the duties of the Officer or Attorney in connection with the 
Copyright Claims Board.
  ``(e) Recusal.--A Copyright Claims Officer or Copyright Claims 
Attorney shall recuse himself or herself from participation in any 
proceeding with respect to which the Copyright Claims Officer or 
Copyright Claims Attorney, as the case may be, has reason to believe 
that he or she has a conflict of interest.
  ``(f) Ex Parte Communications.--Except as may otherwise be permitted 
by applicable law, any party to a proceeding before the Copyright 
Claims Board shall refrain from ex parte communications with the 
Copyright Claims Officers and the Register of Copyrights concerning the 
substance of any active or pending proceeding before the Copyright 
Claims Board.
  ``(g) Judicial Review.--Actions of the Copyright Claims Officers and 
Register of Copyrights under this chapter in connection with the 
rendering of any determination are subject to judicial review as 
provided under section 1508(c) and not under chapter 7 of title 5.

``Sec. 1504. Nature of proceedings

  ``(a) Voluntary Participation.--Participation in a Copyright Claims 
Board proceeding shall be on a voluntary basis in accordance with this 
chapter and the right of any party to instead pursue a claim, 
counterclaim, or defense in a district court of the United States or 
any other court, and to seek a jury trial, shall be preserved. The 
rights, remedies, and limitations under this section may not be waived 
except in accordance with this chapter.
  ``(b) Statute of Limitations.--
          ``(1) In general.--A proceeding may not be maintained before 
        the Copyright Claims Board unless the proceeding is commenced, 
        in accordance with section 1506(e), before the Copyright Claims 
        Board within 3 years after the claim accrued.
          ``(2) Tolling.--Subject to section 1507(a), a proceeding 
        commenced before the Copyright Claims Board shall toll the time 
        permitted under section 507(b) for the commencement of an 
        action on the same claim in a district court of the United 
        States during the period in which the proceeding is pending.
  ``(c) Permissible Claims, Counterclaims, and Defenses.--The Copyright 
Claims Board may render determinations with respect to the following 
claims, counterclaims, and defenses, subject to such further 
limitations and requirements, including with respect to particular 
classes of works, as may be set forth in regulations established by the 
Register of Copyrights:
          ``(1) A claim for infringement of an exclusive right in a 
        copyrighted work provided under section 106 by the legal or 
        beneficial owner of the exclusive right at the time of the 
        infringement for which the claimant seeks damages, if any, 
        within the limitations set forth in subsection (e)(1).
          ``(2) A claim for a declaration of noninfringement of an 
        exclusive right in a copyrighted work provided under section 
        106, consistent with section 2201 of title 28.
          ``(3) A claim under section 512(f) for misrepresentation in 
        connection with a notification of claimed infringement or a 
        counter notification seeking to replace removed or disabled 
        material, except that any remedies relating to such a claim in 
        a proceeding before the Copyright Claims Board shall be limited 
        to those available under this chapter.
          ``(4) A counterclaim that is asserted solely against the 
        claimant in a proceeding--
                  ``(A) pursuant to which the counterclaimant seeks 
                damages, if any, within the limitations set forth in 
                subsection (e)(1); and
                  ``(B) that--
                          ``(i) arises under section 106 or section 
                        512(f) and out of the same transaction or 
                        occurrence that is the subject of a claim of 
                        infringement brought under paragraph (1), a 
                        claim of noninfringement brought under 
                        paragraph (2), or a claim of misrepresentation 
                        brought under paragraph (3); or
                          ``(ii) arises under an agreement pertaining 
                        to the same transaction or occurrence that is 
                        the subject of a claim of infringement brought 
                        under paragraph (1), if the agreement could 
                        affect the relief awarded to the claimant.
          ``(5) A legal or equitable defense under this title or 
        otherwise available under law, in response to a claim or 
        counterclaim asserted under this subsection.
          ``(6) A single claim or multiple claims permitted under 
        paragraph (1), (2), or (3) by one or more claimants against one 
        or more respondents, but only if all claims asserted in any one 
        proceeding arise out of the same allegedly infringing activity 
        or continuous course of infringing activities and do not, in 
        the aggregate, result in the recovery of such claim or claims 
        for damages that exceed the limitations under subsection 
        (e)(1).
  ``(d) Excluded Claims.--The following claims and counterclaims are 
not subject to determination by the Copyright Claims Board:
          ``(1) A claim or counterclaim that is not a permissible claim 
        or counterclaim under subsection (c).
          ``(2) A claim or counterclaim that has been finally 
        adjudicated by a court of competent jurisdiction or that is 
        pending before a court of competent jurisdiction, unless that 
        court has granted a stay to permit that claim or counterclaim 
        to proceed before the Copyright Claims Board.
          ``(3) A claim or counterclaim by or against a Federal or 
        State governmental entity.
          ``(4) A claim or counterclaim asserted against a person or 
        entity residing outside of the United States, except in a case 
        in which the person or entity initiated the proceeding before 
        the Copyright Claims Board and is subject to counterclaims 
        under this chapter.
  ``(e) Permissible Remedies.--
          ``(1) Monetary recovery.--
                  ``(A) Actual damages, profits, and statutory damages 
                for infringement.--With respect to a claim or 
                counterclaim for infringement of copyright, and subject 
                to the limitation on total monetary recovery under 
                subparagraph (D), the Copyright Claims Board may award 
                either of the following:
                          ``(i) Actual damages and profits determined 
                        in accordance with section 504(b), with that 
                        award taking into consideration, in appropriate 
                        cases, whether the infringing party has agreed 
                        to cease or mitigate the infringing activity 
                        under paragraph (2).
                          ``(ii) Statutory damages, which shall be 
                        determined in accordance with section 504(c), 
                        subject to the following conditions:
                                  ``(I) With respect to works timely 
                                registered under section 412, so that 
                                the works are eligible for an award of 
                                statutory damages in accordance with 
                                that section, the statutory damages may 
                                not exceed $15,000 for each work 
                                infringed.
                                  ``(II) With respect to works not 
                                timely registered under section 412, 
                                but eligible for an award of statutory 
                                damages under this section, statutory 
                                damages may not exceed $7,500 per work 
                                infringed, or a total of $15,000 in any 
                                1 proceeding.
                                  ``(III) The Copyright Claims Board 
                                may not make any finding that, or 
                                consider whether, the infringement was 
                                committed willfully in making an award 
                                of statutory damages.
                                  ``(IV) The Copyright Claims Board may 
                                consider, as an additional factor in 
                                awarding statutory damages, whether the 
                                infringer has agreed to cease or 
                                mitigate the infringing activity under 
                                paragraph (2).
                  ``(B) Election of damages.--With respect to a claim 
                or counterclaim of infringement, at any time before 
                final determination is rendered, and notwithstanding 
                the schedule established by the Copyright Claims Board 
                under section 1506(k), the claimant or counterclaimant 
                shall elect--
                          ``(i) to recover actual damages and profits 
                        or statutory damages under subparagraph (A); or
                          ``(ii) not to recover damages.
                  ``(C) Damages for other claims.--Damages for claims 
                and counterclaims other than infringement claims, such 
                as those brought under section 512(f), shall be subject 
                to the limitation under subparagraph (D).
                  ``(D) Limitation on total monetary recovery.--
                Notwithstanding any other provision of law, a party 
                that pursues any one or more claims or counterclaims in 
                any single proceeding before the Copyright Claims Board 
                may not seek or recover in that proceeding a total 
                monetary recovery that exceeds the sum of $30,000, 
                exclusive of any attorneys' fees and costs that may be 
                awarded under section 1506(y)(2).
          ``(2) Agreement to cease certain activity.--In a 
        determination of the Copyright Claims Board, the Board shall 
        include a requirement to cease conduct if, in the proceeding 
        relating to the determination--
                  ``(A) a party agrees--
                          ``(i) to cease activity that is found to be 
                        infringing, including removing or disabling 
                        access to, or destroying, infringing materials; 
                        or
                          ``(ii) to cease sending a takedown notice or 
                        counter notice under section 512 to the other 
                        party regarding the conduct at issue before the 
                        Board if that notice or counter notice was 
                        found to be a knowing material 
                        misrepresentation under section 512(f); and
                  ``(B) the agreement described in subparagraph (A) is 
                reflected in the record for the proceeding.
          ``(3) Attorneys' fees and costs.--Notwithstanding any other 
        provision of law, except in the case of bad faith conduct as 
        provided in section 1506(y)(2), the parties to proceedings 
        before the Copyright Claims Board shall bear their own 
        attorneys' fees and costs.
  ``(f) Joint and Several Liability.--Parties to a proceeding before 
the Copyright Claims Board may be found jointly and severally liable if 
all such parties and relevant claims or counterclaims arise from the 
same activity or activities.
  ``(g) Permissible Number of Cases.--The Register of Copyrights may 
establish regulations relating to the permitted number of proceedings 
each year by the same claimant under this chapter, in the interests of 
justice and the administration of the Copyright Claims Board. 

``Sec. 1505. Registration requirement

  ``(a) Application or Certificate.--A claim or counterclaim alleging 
infringement of an exclusive right in a copyrighted work may not be 
asserted before the Copyright Claims Board unless--
          ``(1) the legal or beneficial owner of the copyright has 
        first delivered a completed application, a deposit, and the 
        required fee for registration of the copyright to the Copyright 
        Office; and
          ``(2) a registration certificate has either been issued or 
        has not been refused.
  ``(b) Certificate of Registration.--Notwithstanding any other 
provision of law, a claimant or counterclaimant in a proceeding before 
the Copyright Claims Board shall be eligible to recover actual damages 
and profits or statutory damages under this chapter for infringement of 
a work if the requirements of subsection (a) have been met, except 
that--
          ``(1) the Copyright Claims Board may not render a 
        determination in the proceeding until--
                  ``(A) a registration certificate with respect to the 
                work has been issued by the Copyright Office, submitted 
                to the Copyright Claims Board, and made available to 
                the other parties to the proceeding; and
                  ``(B) the other parties to the proceeding have been 
                provided an opportunity to address the registration 
                certificate;
          ``(2) if the proceeding may not proceed further because a 
        registration certificate for the work is pending, the 
        proceeding shall be held in abeyance pending submission of the 
        certificate to the Copyright Claims Board, except that, if the 
        proceeding is held in abeyance for more than 1 year, the 
        Copyright Claims Board may, upon providing written notice to 
        the parties to the proceeding, and 30 days to the parties to 
        respond to the notice, dismiss the proceeding without 
        prejudice; and
          ``(3) if the Copyright Claims Board receives notice that 
        registration with respect to the work has been refused, the 
        proceeding shall be dismissed without prejudice.
  ``(c) Presumption.--In a case in which a registration certificate 
shows that registration with respect to a work was issued not later 
than 5 years after the date of the first publication of the work, the 
presumption under section 410(c) shall apply in a proceeding before the 
Copyright Claims Board, in addition to relevant principles of law under 
this title.
  ``(d) Regulations.--In order to ensure that actions before the 
Copyright Claims Board proceed in a timely manner, the Register of 
Copyrights shall establish regulations allowing the Copyright Office to 
make a decision, on an expedited basis, to issue or deny copyright 
registration for an unregistered work that is at issue before the 
Board.

``Sec. 1506. Conduct of proceedings

  ``(a) In General.--
          ``(1) Applicable law.--Proceedings of the Copyright Claims 
        Board shall be conducted in accordance with this chapter and 
        regulations established by the Register of Copyrights under 
        this chapter, in addition to relevant principles of law under 
        this title.
          ``(2) Conflicting precedent.--If it appears that there may be 
        conflicting judicial precedent on an issue of substantive 
        copyright law that cannot be reconciled, the Copyright Claims 
        Board shall follow the law of the Federal jurisdiction in which 
        the action could have been brought if filed in a district court 
        of the United States, or, if the action could have been brought 
        in more than 1 such jurisdiction, the jurisdiction that the 
        Copyright Claims Board determines has the most significant ties 
        to the parties and conduct at issue.
  ``(b) Record.--The Copyright Claims Board shall maintain records 
documenting the proceedings before the Board.
  ``(c) Centralized Process.--Proceedings before the Copyright Claims 
Board shall--
          ``(1) be conducted at the offices of the Copyright Claims 
        Board without the requirement of in-person appearances by 
        parties or others; and
          ``(2) take place by means of written submissions, hearings, 
        and conferences carried out through internet-based applications 
        and other telecommunications facilities, except that, in cases 
        in which physical or other nontestimonial evidence material to 
        a proceeding cannot be furnished to the Copyright Claims Board 
        through available telecommunications facilities, the Copyright 
        Claims Board may make alternative arrangements for the 
        submission of such evidence that do not prejudice any other 
        party to the proceeding.
  ``(d) Representation.--A party to a proceeding before the Copyright 
Claims Board may be, but is not required to be, represented by--
          ``(1) an attorney; or
          ``(2) a law student who is qualified under applicable law 
        governing representation by law students of parties in legal 
        proceedings and who provides such representation on a pro bono 
        basis.
  ``(e) Commencement of Proceeding.--In order to commence a proceeding 
under this chapter, a claimant shall, subject to such additional 
requirements as may be prescribed in regulations established by the 
Register of Copyrights, file a claim with the Copyright Claims Board, 
that--
          ``(1) includes a statement of material facts in support of 
        the claim;
          ``(2) is certified under subsection (y)(1); and
          ``(3) is accompanied by a filing fee in such amount as may be 
        prescribed in regulations established by the Register of 
        Copyrights.
  ``(f) Review of Claims and Counterclaims.--
          ``(1) Claims.--Upon the filing of a claim under subsection 
        (e), the claim shall be reviewed by a Copyright Claims Attorney 
        to ensure that the claim complies with this chapter and 
        applicable regulations, subject to the following:
                  ``(A) If the claim is found to comply, the claimant 
                shall be notified regarding that compliance and 
                instructed to proceed with service of the claim under 
                subsection (g).
                  ``(B) If the claim is found not to comply, the 
                claimant shall be notified that the claim is deficient 
                and be permitted to file an amended claim not later 
                than 30 days after the date on which the claimant 
                receives the notice, without the requirement of an 
                additional filing fee. If the claimant files a 
                compliant claim within that 30-day period, the claimant 
                shall be so notified and be instructed to proceed with 
                service of the claim. If the claim is refiled within 
                that 30-day period and still fails to comply, the 
                claimant shall again be notified that the claim is 
                deficient and shall be provided a second opportunity to 
                amend the claim within 30 days after the date of that 
                second notice, without the requirement of an additional 
                filing fee. If the claim is refiled again within that 
                second 30-day period and is compliant, the claimant 
                shall be so notified and shall be instructed to proceed 
                with service of the claim, but if the claim still fails 
                to comply, upon confirmation of such noncompliance by a 
                Copyright Claims Officer, the proceeding shall be 
                dismissed without prejudice. The Copyright Claims Board 
                shall also dismiss without prejudice any proceeding in 
                which a compliant claim is not filed within the 
                applicable 30-day period.
                  ``(C)(i) Subject to clause (ii), for purposes of this 
                paragraph, a claim against an online service provider 
                for infringement by reason of the storage of or 
                referral or linking to infringing material that may be 
                subject to the limitations on liability set forth in 
                subsection (b), (c), or (d) of section 512 shall be 
                considered noncompliant unless the claimant affirms in 
                the statement required under subsection (e)(1) of this 
                section that the claimant has previously notified the 
                service provider of the claimed infringement in 
                accordance with subsection (b)(2)(E), (c)(3), or (d)(3) 
                of section 512, as applicable, and the service provider 
                failed to remove or disable access to the material 
                expeditiously upon the provision of such notice.
                  ``(ii) If a claim is found to be noncompliant under 
                clause (i), the Copyright Claims Board shall provide 
                the claimant with information concerning the service of 
                such a notice under the applicable provision of section 
                512.
          ``(2) Counterclaims.--Upon the filing and service of a 
        counterclaim, the counterclaim shall be reviewed by a Copyright 
        Claims Attorney to ensure that the counterclaim complies with 
        the provisions of this chapter and applicable regulations. If 
        the counterclaim is found not to comply, the counterclaimant 
        and the other parties to the proceeding shall be notified that 
        the counterclaim is deficient, and the counterclaimant shall be 
        permitted to file and serve an amended counterclaim within 30 
        days after the date of such notice. If the counterclaimant 
        files and serves a compliant counterclaim within that 30-day 
        period, the counterclaimant and such other parties shall be so 
        notified. If the counterclaim is refiled and served within that 
        30-day period but still fails to comply, the counterclaimant 
        and such other parties shall again be notified that the 
        counterclaim is deficient, and the counterclaimant shall be 
        provided a second opportunity to amend the counterclaim within 
        30 days after the date of the second notice. If the 
        counterclaim is refiled and served again within that second 30-
        day period and is compliant, the counterclaimant and such other 
        parties shall be so notified, but if the counterclaim still 
        fails to comply, upon confirmation of such noncompliance by a 
        Copyright Claims Officer, the counterclaim, but not the 
        proceeding, shall be dismissed without prejudice.
          ``(3) Dismissal for unsuitability.--The Copyright Claims 
        Board shall dismiss a claim or counterclaim without prejudice 
        if, upon reviewing the claim or counterclaim, or at any other 
        time in the proceeding, the Copyright Claims Board concludes 
        that the claim or counterclaim is unsuitable for determination 
        by the Copyright Claims Board, including on account of any of 
        the following:
                  ``(A) The failure to join a necessary party.
                  ``(B) The lack of an essential witness, evidence, or 
                expert testimony.
                  ``(C) The determination of a relevant issue of law or 
                fact that could exceed either the number of proceedings 
                the Copyright Claims Board could reasonably administer 
                or the subject matter competence of the Copyright 
                Claims Board.
  ``(g) Service of Notice and Claims.--In order to proceed with a claim 
against a respondent, a claimant shall, within 90 days after receiving 
notification under subsection (f) to proceed with service, file with 
the Copyright Claims Board proof of service on the respondent. In order 
to effectuate service on a respondent, the claimant shall cause notice 
of the proceeding and a copy of the claim to be served on the 
respondent, either by personal service or pursuant to a waiver of 
personal service, as prescribed in regulations established by the 
Register of Copyrights. Such regulations shall include the following 
requirements:
          ``(1) The notice of the proceeding shall adhere to a 
        prescribed form and shall set forth the nature of the Copyright 
        Claims Board and proceeding, the right of the respondent to opt 
        out, and the consequences of opting out and not opting out, 
        including a prominent statement that, by not opting out within 
        60 days after receiving the notice, the respondent--
                  ``(A) loses the opportunity to have the dispute 
                decided by a court created under article III of the 
                Constitution of the United States; and
                  ``(B) waives the right to a jury trial regarding the 
                dispute.
          ``(2) The copy of the claim served on the respondent shall be 
        the same as the claim that was filed with the Copyright Claims 
        Board.
          ``(3) Personal service of a notice and claim may be effected 
        by an individual who is not a party to the proceeding and is 
        older than 18 years of age.
          ``(4) An individual, other than a minor or incompetent 
        individual, may be served by--
                  ``(A) complying with State law for serving a summons 
                in an action brought in courts of general jurisdiction 
                in the State where service is made;
                  ``(B) delivering a copy of the notice and claim to 
                the individual personally;
                  ``(C) leaving a copy of the notice and claim at the 
                individual's dwelling or usual place of abode with 
                someone of suitable age and discretion who resides 
                there; or
                  ``(D) delivering a copy of the notice and claim to an 
                agent designated by the respondent to receive service 
                of process or, if not so designated, an agent 
                authorized by appointment or by law to receive service 
                of process.
          ``(5)(A) A corporation, partnership, or unincorporated 
        association that is subject to suit in courts of general 
        jurisdiction under a common name shall be served by delivering 
        a copy of the notice and claim to its service agent. If such 
        service agent has not been designated, service shall be 
        accomplished--
                  ``(i) by complying with State law for serving a 
                summons in an action brought in courts of general 
                jurisdiction in the State where service is made; or
                  ``(ii) by delivering a copy of the notice and claim 
                to an officer, a managing or general agent, or any 
                other agent authorized by appointment or by law to 
                receive service of process in an action brought in 
                courts of general jurisdiction in the State where 
                service is made and, if the agent is one authorized by 
                statute and the statute so requires, by also mailing a 
                copy of the notice and claim to the respondent.
          ``(B) A corporation, partnership or unincorporated 
        association that is subject to suit in courts of general 
        jurisdiction under a common name may elect to designate a 
        service agent to receive notice of a claim against it before 
        the Copyright Claims Board by complying with requirements that 
        the Register of Copyrights shall establish by regulation. The 
        Register of Copyrights shall maintain a current directory of 
        service agents that is available to the public for inspection, 
        including through the internet, and may require such 
        corporations, partnerships, and unincorporated associations 
        designating such service agents to pay a fee to cover the costs 
        of maintaining the directory.
          ``(6) In order to request a waiver of personal service, the 
        claimant may notify a respondent, by first class mail or by 
        other reasonable means, that a proceeding has been commenced, 
        such notice to be made in accordance with regulations 
        established by the Register of Copyrights, subject to the 
        following:
                  ``(A) Any such request shall be in writing, shall be 
                addressed to the respondent, and shall be accompanied 
                by a prescribed notice of the proceeding, a copy of the 
                claim as filed with the Copyright Claims Board, a 
                prescribed form for waiver of personal service, and a 
                prepaid or other means of returning the form without 
                cost.
                  ``(B) The request shall state the date on which the 
                request is sent, and shall provide the respondent a 
                period of 30 days, beginning on the date on which the 
                request is sent, to return the waiver form signed by 
                the respondent. The signed waiver form shall, for 
                purposes of this subsection, constitute acceptance and 
                proof of service as of the date on which the waiver is 
                signed.
          ``(7)(A) A respondent's waiver of personal service shall not 
        constitute a waiver of the respondent's right to opt out of the 
        proceeding.
          ``(B) A respondent who timely waives personal service under 
        paragraph (6) and does not opt out of the proceeding shall be 
        permitted a period of 30 days, in addition to the period 
        otherwise permitted under the applicable procedures of the 
        Copyright Claims Board, to submit a substantive response to the 
        claim, including any defenses and counterclaims.
          ``(8) A minor or an incompetent individual may only be served 
        by complying with State law for serving a summons or like 
        process on such an individual in an action brought in the 
        courts of general jurisdiction of the State where service is 
        made.
          ``(9) Service of a claim and waiver of personal service may 
        only be effected within the United States.
  ``(h) Notification by Copyright Claims Board.--The Register of 
Copyrights shall establish regulations providing for a written 
notification to be sent by, or on behalf of, the Copyright Claims Board 
to notify the respondent of a pending proceeding against the 
respondent, as set forth in those regulations, which shall--
          ``(1) include information concerning the respondent's right 
        to opt out of the proceeding, the consequences of opting out 
        and not opting out, and a prominent statement that, by not 
        opting out within 60 days after the date of service under 
        subsection (g), the respondent loses the opportunity to have 
        the dispute decided by a court created under article III of the 
        Constitution of the United States and waives the right to a 
        jury trial regarding the dispute; and
          ``(2) be in addition to, and separate and apart from, the 
        notice requirements under subsection (g).
  ``(i) Opt-Out Procedure.--Upon being properly served with a notice 
and claim, a respondent who chooses to opt out of the proceeding shall 
have a period of 60 days, beginning on the date of service, in which to 
provide written notice of such choice to the Copyright Claims Board, in 
accordance with regulations established by the Register of Copyrights. 
If proof of service has been filed by the claimant and the respondent 
does not submit an opt-out notice to the Copyright Claims Board within 
that 60-day period, the proceeding shall be deemed an active proceeding 
and the respondent shall be bound by the determination in the 
proceeding to the extent provided under section 1507(a). If the 
respondent opts out of the proceeding during that 60-day period, the 
proceeding shall be dismissed without prejudice, except that, in 
exceptional circumstances and upon written notice to the claimant, the 
Copyright Claims Board may extend that 60-day period in the interests 
of justice.
  ``(j) Service of Other Documents.--Documents submitted or relied upon 
in a proceeding, other than the notice and claim, shall be served in 
accordance with regulations established by the Register of Copyrights.
  ``(k) Scheduling.--Upon confirmation that a proceeding has become an 
active proceeding, the Copyright Claims Board shall issue a schedule 
for the future conduct of the proceeding. The schedule shall not 
specify a time that a claimant or counterclaimant is required make an 
election of damages that is inconsistent with section 1504(e). A 
schedule issued by the Copyright Claims Board may be amended by the 
Copyright Claims Board in the interests of justice.
  ``(l) Conferences.--One or more Copyright Claims Officers may hold a 
conference to address case management or discovery issues in a 
proceeding, which shall be noted upon the record of the proceeding and 
may be recorded or transcribed.
  ``(m) Party Submissions.--A proceeding of the Copyright Claims Board 
may not include any formal motion practice, except that, subject to 
applicable regulations and procedures of the Copyright Claims Board--
          ``(1) the parties to the proceeding may make requests to the 
        Copyright Claims Board to address case management and discovery 
        matters, and submit responses thereto; and
          ``(2) the Copyright Claims Board may request or permit 
        parties to make submissions addressing relevant questions of 
        fact or law, or other matters, including matters raised sua 
        sponte by the Copyright Claims Officers, and offer responses 
        thereto.
  ``(n) Discovery.--Discovery in a proceeding shall be limited to the 
production of relevant information and documents, written 
interrogatories, and written requests for admission, as provided in 
regulations established by the Register of Copyrights, except that--
          ``(1) upon the request of a party, and for good cause shown, 
        the Copyright Claims Board may approve additional relevant 
        discovery, on a limited basis, in particular matters, and may 
        request specific information and documents from participants in 
        the proceeding and voluntary submissions from nonparticipants, 
        consistent with the interests of justice;
          ``(2) upon the request of a party, and for good cause shown, 
        the Copyright Claims Board may issue a protective order to 
        limit the disclosure of documents or testimony that contain 
        confidential information; and
          ``(3) after providing notice and an opportunity to respond, 
        and upon good cause shown, the Copyright Claims Board may apply 
        an adverse inference with respect to disputed facts against a 
        party who has failed to timely provide discovery materials in 
        response to a proper request for materials that could be 
        relevant to such facts.
  ``(o) Evidence.--The Copyright Claims Board may consider the 
following types of evidence in a proceeding, and such evidence may be 
admitted without application of formal rules of evidence:
          ``(1) Documentary and other nontestimonial evidence that is 
        relevant to the claims, counterclaims, or defenses in the 
        proceeding.
          ``(2) Testimonial evidence, submitted under penalty of 
        perjury in written form or in accordance with subsection (p), 
        limited to statements of the parties and nonexpert witnesses, 
        that is relevant to the claims, counterclaims, and defenses in 
        a proceeding, except that, in exceptional cases, expert witness 
        testimony or other types of testimony may be permitted by the 
        Copyright Claims Board for good cause shown.
  ``(p) Hearings.--The Copyright Claims Board may conduct a hearing to 
receive oral presentations on issues of fact or law from parties and 
witnesses to a proceeding, including oral testimony, subject to the 
following:
          ``(1) Any such hearing shall be attended by not fewer than 
        two of the Copyright Claims Officers.
          ``(2) The hearing shall be noted upon the record of the 
        proceeding and, subject to paragraph (3), may be recorded or 
        transcribed as deemed necessary by the Copyright Claims Board.
          ``(3) A recording or transcript of the hearing shall be made 
        available to any Copyright Claims Officer who is not in 
        attendance.
  ``(q) Voluntary Dismissal.--
          ``(1) By claimant.--Upon the written request of a claimant 
        that is received before a respondent files a response to the 
        claim in a proceeding, the Copyright Claims Board shall dismiss 
        the proceeding, or a claim or respondent, as requested, without 
        prejudice.
          ``(2) By counterclaimant.--Upon written request of a 
        counterclaimant that is received before a claimant files a 
        response to the counterclaim, the Copyright Claims Board shall 
        dismiss the counterclaim, such dismissal to be without 
        prejudice.
          ``(3) Class actions.--Any party in an active proceeding 
        before the Copyright Claims Board who receives notice of a 
        pending or putative class action, arising out of the same 
        transaction or occurrence, in which that party is a class 
        member may request in writing dismissal of the proceeding 
        before the Board. Upon notice to all claimants and 
        counterclaimants, the Copyright Claims Board shall dismiss the 
        proceeding without prejudice.
  ``(r) Settlement.--
          ``(1) In general.--At any time in an active proceeding, some 
        or all of the parties may--
                  ``(A) jointly request a conference with a Copyright 
                Claims Officer for the purpose of facilitating 
                settlement discussions; or
                  ``(B) submit to the Copyright Claims Board an 
                agreement providing for settlement and dismissal of 
                some or all of the claims and counterclaims in the 
                proceeding.
          ``(2) Additional request.--A submission under paragraph 
        (1)(B) may include a request that the Copyright Claims Board 
        adopt some or all of the terms of the parties' settlement in a 
        final determination in the proceeding.
  ``(s) Factual Findings.--Subject to subsection (n)(3), the Copyright 
Claims Board shall make factual findings based upon a preponderance of 
the evidence.
  ``(t) Determinations.--
          ``(1) Nature and contents.--A determination rendered by the 
        Copyright Claims Board in a proceeding shall--
                  ``(A) be reached by a majority of the Copyright 
                Claims Board;
                  ``(B) be in writing, and include an explanation of 
                the factual and legal basis of the determination;
                  ``(C) set forth any terms by which a respondent or 
                counterclaim respondent has agreed to cease infringing 
                activity under section 1504(e)(2);
                  ``(D) to the extent requested under subsection 
                (r)(2), set forth the terms of any settlement agreed to 
                under subsection (r)(1); and
                  ``(E) include a clear statement of all damages and 
                other relief awarded, including under subparagraphs (C) 
                and (D).
          ``(2) Dissent.--A Copyright Claims Officer who dissents from 
        a decision contained in a determination under paragraph (1) may 
        append a statement setting forth the grounds for that dissent.
          ``(3) Publication.--Each final determination of the Copyright 
        Claims Board shall be made available on a publicly accessible 
        website. The Register shall establish regulations with respect 
        to the publication of other records and information relating to 
        such determinations, including the redaction of records to 
        protect confidential information that is the subject of a 
        protective order under subsection (n)(2).
          ``(4) Freedom of information act.--All information relating 
        to proceedings of the Copyright Claims Board under this title 
        is exempt from disclosure to the public under section 552(b)(3) 
        of title 5, except for determinations, records, and information 
        published under paragraph (3).
  ``(u) Respondent's Default.--If a proceeding has been deemed an 
active proceeding but the respondent has failed to appear or has ceased 
participating in the proceeding, as demonstrated by the respondent's 
failure, without justifiable cause, to meet one or more deadlines or 
requirements set forth in the schedule adopted by the Copyright Claims 
Board under subsection (k), the Copyright Claims Board may enter a 
default determination, including the dismissal of any counterclaim 
asserted by the respondent, as follows and in accordance with such 
other requirements as the Register of Copyrights may establish by 
regulation:
          ``(1) The Copyright Claims Board shall require the claimant 
        to submit relevant evidence and other information in support of 
        the claimant's claim and any asserted damages and, upon review 
        of such evidence and any other requested submissions from the 
        claimant, shall determine whether the materials so submitted 
        are sufficient to support a finding in favor of the claimant 
        under applicable law and, if so, the appropriate relief and 
        damages, if any, to be awarded.
          ``(2) If the Copyright Claims Board makes an affirmative 
        determination under paragraph (1), the Copyright Claims Board 
        shall prepare a proposed default determination, and shall 
        provide written notice to the respondent at all addresses, 
        including email addresses, reflected in the records of the 
        proceeding before the Copyright Claims Board, of the pendency 
        of a default determination by the Copyright Claims Board and of 
        the legal significance of such determination. Such notice shall 
        be accompanied by the proposed default determination and shall 
        provide that the respondent has a period of 30 days, beginning 
        on the date of the notice, to submit any evidence or other 
        information in opposition to the proposed default 
        determination.
          ``(3) If the respondent responds to the notice provided under 
        paragraph (2) within the 30-day period provided in such 
        paragraph, the Copyright Claims Board shall consider 
        respondent's submissions and, after allowing the other parties 
        to address such submissions, maintain, or amend its proposed 
        determination as appropriate, and the resulting determination 
        shall not be a default determination.
          ``(4) If the respondent fails to respond to the notice 
        provided under paragraph (2), the Copyright Claims Board shall 
        proceed to issue the default determination as a final 
        determination. Thereafter, the respondent may only challenge 
        such determination to the extent permitted under section 
        1508(c), except that, before any additional proceedings are 
        initiated under section 1508, the Copyright Claims Board may, 
        in the interests of justice, vacate the default determination.
  ``(v) Claimant's Failure To Proceed.--
          ``(1) Failure to complete service.--If a claimant fails to 
        complete service on a respondent within the 90-day period 
        required under subsection (g), the Copyright Claims Board shall 
        dismiss that respondent from the proceeding without prejudice. 
        If a claimant fails to complete service on all respondents 
        within that 90-day period, the Copyright Claims Board shall 
        dismiss the proceeding without prejudice.
          ``(2) Failure to prosecute.--If a claimant fails to proceed 
        in an active proceeding, as demonstrated by the claimant's 
        failure, without justifiable cause, to meet one or more 
        deadlines or requirements set forth in the schedule adopted by 
        the Copyright Claims Board under subsection (k), the Copyright 
        Claims Board may, upon providing written notice to the claimant 
        and a period of 30 days, beginning on the date of the notice, 
        to respond to the notice, and after considering any such 
        response, issue a determination dismissing the claimants' 
        claims, which shall include an award of attorneys' fees and 
        costs, if appropriate, under subsection (y)(2). Thereafter, the 
        claimant may only challenge such determination to the extent 
        permitted under section 1508(c), except that, before any 
        additional proceedings are initiated under section 1508, the 
        Copyright Claims Board may, in the interests of justice, vacate 
        the determination of dismissal.
  ``(w) Request for Reconsideration.--A party may, within 30 days after 
the date on which the Copyright Claims Board issues a final 
determination in a proceeding under this chapter, submit a written 
request for reconsideration of, or an amendment to, such determination 
if the party identifies a clear error of law or fact material to the 
outcome, or a technical mistake. After providing the other parties an 
opportunity to address such request, the Copyright Claims Board shall 
either deny the request or issue an amended final determination.
  ``(x) Review by Register.--If the Copyright Claims Board denies a 
party a request for reconsideration of a final determination under 
subsection (w), that party may, within 30 days after the date of such 
denial, request review of the final determination by the Register of 
Copyrights in accordance with regulations established by the Register. 
Such request shall be accompanied by a reasonable filing fee, as 
provided in such regulations. The review by the Register shall be 
limited to consideration of whether the Copyright Claims Board abused 
its discretion in denying reconsideration of the determination. After 
providing the other parties an opportunity to address the request, the 
Register shall either deny the request for review, or remand the 
proceeding to the Copyright Claims Board for reconsideration of issues 
specified in the remand and for issuance of an amended final 
determination. Such amended final determination shall not be subject to 
further consideration or review, other than under section 1508(c).
  ``(y) Conduct of Parties and Attorneys.--
          ``(1) Certification.--The Register of Copyrights shall 
        establish regulations requiring certification of the accuracy 
        and truthfulness of statements made by participants in 
        proceedings before the Copyright Claims Board.
          ``(2) Bad faith conduct.--Notwithstanding any other provision 
        of law, in any proceeding in which a determination is rendered 
        and it is established that a party pursued a claim, 
        counterclaim, or defense for a harassing or other improper 
        purpose, or without a reasonable basis in law or fact, then, 
        unless inconsistent with the interests of justice, the 
        Copyright Claims Board shall in such determination award 
        reasonable costs and attorneys' fees to any adversely affected 
        party of in an amount of not more than $5,000, except that--
                  ``(A) if an adversely affected party appeared pro se 
                in the proceeding, the award to that party shall be for 
                costs only, in an amount of not more than $2,500; and
                  ``(B) in extraordinary circumstances, such as where a 
                party has demonstrated a pattern or practice of bad 
                faith conduct as described in this paragraph, the 
                Copyright Claims Board may, in the interests of 
                justice, award costs and attorneys' fees in excess of 
                the limitations under this paragraph.
          ``(3) Additional penalty.--If the Board finds that on more 
        than one occasion within a 12-month period a party pursued a 
        claim, counterclaim, or defense before the Copyright Claims 
        Board for a harassing or other improper purpose, or without a 
        reasonable basis in law or fact, that party shall be barred 
        from initiating a claim before the Copyright Claims Board under 
        this chapter for a period of 12 months beginning on the date on 
        which the Board makes such a finding. Any proceeding commenced 
        by that party that is still pending before the Board when such 
        a finding is made shall be dismissed without prejudice, except 
        that if a proceeding has been deemed active under subsection 
        (i), the proceeding shall be dismissed under this paragraph 
        only if the respondent provides written consent thereto.
  ``(z) Regulations for Smaller Claims.--The Register of Copyrights 
shall establish regulations to provide for the consideration and 
determination, by at least one Copyright Claims Officer, of any claim 
under this chapter in which total damages sought do not exceed $5,000 
(exclusive of attorneys' fees and costs) that are otherwise consistent 
with this chapter. A determination issued under this subsection shall 
have the same effect as a determination issued by the entire Copyright 
Claims Board.

``Sec. 1507. Effect of proceeding

  ``(a) Determination.--Subject to the reconsideration and review 
processes provided under subsections (w) and (x) of section 1506 and 
section 1508(c), the issuance of a final determination by the Copyright 
Claims Board in a proceeding, including a default determination or 
determination based on a failure to prosecute, shall, solely with 
respect to the parties to such determination, preclude relitigation 
before any court or tribunal, or before the Copyright Claims Board, of 
the claims and counterclaims asserted and finally determined by the 
Board, and may be relied upon for such purpose in a future action or 
proceeding arising from the same specific activity or activities, 
subject to the following:
          ``(1) A determination of the Copyright Claims Board shall not 
        preclude litigation or relitigation as between the same or 
        different parties before any court or tribunal, or the 
        Copyright Claims Board, of the same or similar issues of fact 
        or law in connection with claims or counterclaims not asserted 
        or not finally determined by the Copyright Claims Board.
          ``(2) A determination of ownership of a copyrighted work for 
        purposes of resolving a matter before the Copyright Claims 
        Board may not be relied upon, and shall not have any preclusive 
        effect, in any other action or proceeding before any court or 
        tribunal, including the Copyright Claims Board.
          ``(3) Except to the extent permitted under this subsection 
        and section 1508, any determination of the Copyright Claims 
        Board may not be cited or relied upon as legal precedent in any 
        other action or proceeding before any court or tribunal, 
        including the Copyright Claims Board.
  ``(b) Class Actions Not Affected.--
          ``(1) In general.--A proceeding before the Copyright Claims 
        Board shall not have any effect on a class action proceeding in 
        a district court of the United States, and section 1509(a) 
        shall not apply to a class action proceeding in a district 
        court of the United States.
          ``(2) Notice of class action.--Any party to an active 
        proceeding before the Copyright Claims Board who receives 
        notice of a pending class action, arising out of the same 
        transaction or occurrence as the proceeding before the 
        Copyright Claims Board, in which the party is a class member 
        shall either--
                  ``(A) opt out of the class action, in accordance with 
                regulations established by the Register of Copyrights; 
                or
                  ``(B) seek dismissal under section 1506(q)(3) of the 
                proceeding before the Copyright Claims Board.
  ``(c) Other Materials in Proceeding.--Except as permitted under this 
section and section 1508, a submission or statement of a party or 
witness made in connection with a proceeding before the Copyright 
Claims Board, including a proceeding that is dismissed, may not be 
cited or relied upon in, or serve as the basis of, any action or 
proceeding concerning rights or limitations on rights under this title 
before any court or tribunal, including the Copyright Claims Board.
  ``(d) Applicability of Section 512(g).--A claim or counterclaim 
before the Copyright Claims Board that is brought under subsection 
(c)(1) or (c)(4) of section 1504, or brought under subsection (c)(6) of 
section 1504 and that relates to a claim under subsection (c)(1) or 
(c)(4) of such section, qualifies as an action seeking an order to 
restrain a subscriber from engaging in infringing activity under 
section 512(g)(2)(C) if--
          ``(1) notice of the commencement of the Copyright Claims 
        Board proceeding is provided by the claimant to the service 
        provider's designated agent before the service provider 
        replaces the material following receipt of a counter 
        notification under section 512(g); and
          ``(2) the claim brought alleges infringement of the material 
        identified in the notification of claimed infringement under 
        section 512(c)(1)(C).
  ``(e) Failure To Assert Counterclaim.--The failure or inability to 
assert a counterclaim in a proceeding before the Copyright Claims Board 
shall not preclude the assertion of that counterclaim in a subsequent 
court action or proceeding before the Copyright Claims Board.
  ``(f) Opt-Out or Dismissal of Party.--If a party has timely opted out 
of a proceeding under section 1506(i) or is dismissed from a proceeding 
before the Copyright Claims Board issues a final determination in the 
proceeding, the determination shall not be binding upon and shall have 
no preclusive effect with respect to that party.

``Sec. 1508. Review and confirmation by district court

  ``(a) In General.--In any proceeding in which a party has failed to 
pay damages, or has failed otherwise to comply with the relief, awarded 
in a final determination of the Copyright Claims Board, including a 
default determination or a determination based on a failure to 
prosecute, the aggrieved party may, not later than 1 year after the 
date on which the final determination is issued, any reconsideration by 
the Copyright Claims Board or review by the Register of Copyrights is 
resolved, or an amended final determination is issued, whichever occurs 
last, apply to the United States District Court for the District of 
Columbia or any other appropriate district court of the United States 
for an order confirming the relief awarded in the final determination 
and reducing such award to judgment. The court shall grant such order 
and direct entry of judgment unless the determination is or has been 
vacated, modified, or corrected under subsection (c). If the United 
States District Court for the District of Columbia or other district 
court of the United States, as the case may be, issues an order 
confirming the relief awarded by the Copyright Claims Board, the court 
shall impose on the party who failed to pay damages or otherwise comply 
with the relief, the reasonable expenses required to secure such order, 
including attorneys' fees, that were incurred by the aggrieved party.
  ``(b) Filing Procedures.--
          ``(1) Application to confirm determination.--Notice of the 
        application under subsection (a) for confirmation of a 
        determination of the Copyright Claims Board and entry of 
        judgment shall be provided to all parties to the proceeding 
        before the Copyright Claims Board that resulted in the 
        determination, in accordance with the procedures applicable to 
        service of a motion in the district court of the United States 
        where the application is made.
          ``(2) Contents of application.--The application shall include 
        the following:
                  ``(A) A certified copy of the final or amended final 
                determination of the Copyright Claims Board, as 
                reflected in the records of the Copyright Claims Board, 
                following any process of reconsideration or review by 
                the Register of Copyrights, to be confirmed and 
                rendered to judgment.
                  ``(B) A declaration by the applicant, under penalty 
                of perjury--
                          ``(i) that the copy is a true and correct 
                        copy of such determination;
                          ``(ii) stating the date it was issued;
                          ``(iii) stating the basis for the challenge 
                        under subsection (c)(1); and
                          ``(iv) stating whether the applicant is aware 
                        of any other proceedings before the court 
                        concerning the same determination of the 
                        Copyright Claims Board.
  ``(c) Challenges to the Determination.--
          ``(1) Bases for challenge.--Not later than 90 days after the 
        date on which Copyright Claims Board issues a final or amended 
        final determination in a proceeding, or not later than 90 days 
        after the date on which the Register of Copyrights completes 
        any process of reconsideration or review of the determination, 
        whichever occurs later, a party may seek a court order 
        vacating, modifying, or correcting the determination of the 
        Copyright Claims Board in the following cases:
                  ``(A) If the determination was issued as a result of 
                fraud, corruption, misrepresentation, or other 
                misconduct.
                  ``(B) If the Copyright Claims Board exceeded its 
                authority or failed to render a final determination 
                concerning the subject matter at issue.
                  ``(C) In the case of a default determination or 
                determination based on a failure to prosecute, if it is 
                established that the default or failure was due to 
                excusable neglect.
          ``(2) Procedure to challenge.--
                  ``(A) Notice of application.--Notice of the 
                application to challenge a determination of the 
                Copyright Claims Board shall be provided to all parties 
                to the proceeding before the Copyright Claims Board, in 
                accordance with the procedures applicable to service of 
                a motion in the court where the application is made.
                  ``(B) Staying of proceedings.--For purposes of an 
                application under this subsection, any judge who is 
                authorized to issue an order to stay the proceedings in 
                an any other action brought in the same court may issue 
                an order, to be served with the notice of application, 
                staying proceedings to enforce the award while the 
                challenge is pending.

``Sec. 1509. Relationship to other district court actions

  ``(a) Stay of District Court Proceedings.--Subject to section 
1507(b), a district court of the United States shall issue a stay of 
proceedings or such other relief as the court determines appropriate 
with respect to any claim brought before the court that is already the 
subject of a pending or active proceeding before the Copyright Claims 
Board.
  ``(b) Alternative Dispute Resolution Process.--A proceeding before 
the Copyright Claims Board under this chapter shall qualify as an 
alternative dispute resolution process under section 651 of title 28 
for purposes of referral of eligible cases by district courts of the 
United States upon the consent of the parties.

``Sec. 1510. Implementation by Copyright Office

  ``(a) Regulations.--
          ``(1) Implementation generally.--The Register of Copyrights 
        shall establish regulations to carry out this chapter. Such 
        regulations shall include the fees prescribed under subsections 
        (e) and (x) of section 1506. The authority to issue such fees 
        shall not limit the authority of the Register of Copyrights to 
        establish fees for services under section 708. All fees 
        received by the Copyright Office in connection with the 
        activities under this chapter shall be deposited by the 
        Register of Copyrights and credited to the appropriations for 
        necessary expenses of the Office in accordance with section 
        708(d). In establishing regulations under this subsection, the 
        Register of Copyrights shall provide for the efficient 
        administration of the Copyright Claims Board, and for the 
        ability of the Copyright Claims Board to timely complete 
        proceedings instituted under this chapter, including by 
        implementing mechanisms to prevent harassing or improper use of 
        the Copyright Claims Board by any party.
          ``(2) Limits on monetary relief.--
                  ``(A) In general.--Subject to subparagraph (B), not 
                earlier than 3 years after the date on which Copyright 
                Claims Board issues the first determination of the 
                Copyright Claims Board, the Register of Copyrights may, 
                in order to further the goals of the Copyright Claims 
                Board, conduct a rulemaking to adjust the limits on 
                monetary recovery or attorneys' fees and costs that may 
                be awarded under this chapter.
                  ``(B) Effective date of adjustment.--Any rule under 
                subparagraph (A) that makes an adjustment shall take 
                effect at the end of the 120-day period beginning on 
                the date on which the Register of Copyrights submits 
                the rule to Congress and only if Congress does not, 
                during that 120-day period, enact a law that provides 
                in substance that Congress does not approve the rule.
  ``(b) Necessary Facilities.--Subject to applicable law, the Register 
of Copyrights may retain outside vendors to establish internet-based, 
teleconferencing, and other facilities required to operate the 
Copyright Claims Board.
  ``(c) Fees.--Any filing fees, including the fee to commence a 
proceeding under section 1506(e), shall be prescribed in regulations 
established by the Register of Copyrights. The sum total of such filing 
fees shall be in an amount of at least $100, may not exceed the cost of 
filing an action in a district court of the United States, and shall be 
fixed in amounts that further the goals of the Copyright Claims Board.

``Sec. 1511. Funding

  ``There are authorized to be appropriated such sums as may be 
necessary to pay the costs incurred by the Copyright Office under this 
chapter that are not covered by fees collected for services rendered 
under this chapter, including the costs of establishing and maintaining 
the Copyright Claims Board and its facilities.''.
  (b) Clerical Amendment.--The table of chapters for title 17, United 
States Code, is amended by adding after the item relating to chapter 14 
the following:

``15. Copyright Small Claims................................    1501''.

SEC. 3. IMPLEMENTATION.

  Not later 1 year after the date of enactment of this Act, the 
Copyright Claims Board established under section 1502 of title 17, 
United States Code, as added by section 2 of this Act, shall begin 
operations.

SEC. 4. STUDY.

  Not later than 3 years after the date on which Copyright Claims Board 
issues the first determination of the Copyright Claims Board under 
chapter 15 of title 17, United States Code, as added by section 2 of 
this Act, the Register of Copyrights shall conduct, and report to 
Congress on, a study that addresses the following:
          (1) The use and efficacy of the Copyright Claims Board in 
        resolving copyright claims, including the number of proceedings 
        the Copyright Claims Board could reasonably administer.
          (2) Whether adjustments to the authority of the Copyright 
        Claims Board are necessary or advisable, including with respect 
        to--
                  (A) eligible claims, such as claims under section 
                1202 of title 17, United States Code; and
                  (B) works and applicable damages limitations.
          (3) Whether greater allowance should be made to permit awards 
        of attorneys' fees and costs to prevailing parties, including 
        potential limitations on such awards.
          (4) Potential mechanisms to assist copyright owners with 
        small claims in ascertaining the identity and location of 
        unknown online infringers.
          (5) Whether the Copyright Claims Board should be expanded to 
        offer mediation or other nonbinding alternative dispute 
        resolution services to interested parties.
          (6) Such other matters as the Register of Copyrights believes 
        may be pertinent concerning the Copyright Claims Board.

SEC. 5. SEVERABILITY.

  If any provision of this Act, an amendment made by this Act, or the 
application of such provision or amendment to any person or 
circumstance is held to be unconstitutional, the remainder of this Act 
and the amendments made by this Act, and the application of the 
provision or the amendment to any other person or circumstance, shall 
not be affected.

                          Purpose and Summary

    H.R. 2426, the ``Copyright Alternative in Small-Claims 
Enforcement of 2019'' or the ``CASE Act of 2019,'' creates a 
Copyright Claims Board (the ``Board''), located in the U.S. 
Copyright Office and intended to be a forum for lower-value 
copyright disputes in which participation is voluntary for both 
claimants and respondents. The copyright small claims process 
the bill establishes is intended to be accessible especially 
for pro se parties and those with little prior formal exposure 
to copyright laws who cannot otherwise afford to have their 
claims and defenses heard in federal court.
    The bill provides that participation in a Copyright Claims 
Board proceeding is voluntary.\1\ A respondent may opt out 
within 60 days of being served with a claim.\2\ The Board is 
composed of three Copyright Claims Officers recommended by the 
Register of Copyrights and appointed by the Librarian of 
Congress. The Board must ``render determinations . . . 
independently,'' and must adhere to existing case law.\3\ The 
Copyright Claims Officers serve under the general direction of 
the Register of Copyrights,\4\ and may be sanctioned or removed 
by the Librarian of Congress.\5\
---------------------------------------------------------------------------
    \1\See H.R. 2426, 116th Cong. Sec. 2(a) (2019) (to be codified at 
15 U.S.C. Sec. 1504(a)). Subsequent citations of the new sections to be 
codified under the Act will reference only the to-be-codified section.
    \2\Id. Sec. 1506(i).
    \3\Id. Sec. 1503(b).
    \4\Id. Sec. 1503(c).
    \5\Id. Sec. 1502(b)(7).
---------------------------------------------------------------------------
    Parties may appear pro se or be represented by an attorney 
or by a law student acting pro bono.\6\ Copyright Claims 
Attorneys are tasked with assisting the public, including 
potential claimants and respondents with respect to the 
procedures and requirements for litigating before the Board.\7\ 
To ensure that the proceedings are streamlined and efficient, 
discovery is circumscribed.\8\ Additionally, for the category 
of smaller claims of $5,000 or less, the Register of Copyrights 
must issue rules under which a single Copyright Claims Officer 
can hear claims, which otherwise have the procedural 
protections of any other claim before the Copyright Claims 
Board.\9\
---------------------------------------------------------------------------
    \6\Id. Sec. 1506(d).
    \7\See id. Sec. 1503(a).
    \8\Id. Sec. 1506(n).
    \9\Id. Sec. 1506(z).
---------------------------------------------------------------------------
    The Copyright Claims Board is empowered to hear claims for 
copyright infringement, for declarations of non-infringement, 
and for misrepresentation under section 512(f) of the Digital 
Millennium Copyright Act (``DMCA'').\10\ Total damages are 
capped at $30,000 per proceeding, and $15,000 in statutory 
damages per work. The statutory damages cap is $7,500 for works 
that were not timely registered pursuant to 17 U.S.C. Sec. 412, 
but whose registration is a condition of the proceeding 
becoming final. The Board cannot issue injunctions, but if the 
parties agree to cease any infringing activity, including 
taking down a work from an online platform, the Board must 
include those terms in the determination.\11\ At any point 
before the Board issues a final determination, the claimant or 
counterclaimant can elect to receive statutory damages, actual 
damages plus profits, or no damages.\12\ The Board may award up 
to $5,000 (or $2,500 if the party is pro se) in costs and 
attorneys' fees if a party is found to have acted in bad faith, 
and, in extraordinary circumstances, more.\13\ The Board may 
also bar a party that has pursued frivolous or bad faith claims 
from appearing before it for a year, and may dismiss that 
party's outstanding claims without prejudice.\14\
---------------------------------------------------------------------------
    \10\Id. Sec. 1504(c).
    \11\Id. Sec. 1506(t)(1)(C); see also id. Sec. 1504(c)(2).
    \12\Id. Sec. 1504(e)(1)(B).
    \13\Id. Sec. 1506(y).
    \14\Id.
---------------------------------------------------------------------------
    Decisions of the Board are subject to a request for 
reconsideration by the Board.\15\ A denial of such a request 
may be reviewed by the Register of Copyrights.\16\ Federal 
district courts may vacate, modify, or correct a Board 
determination where the determination was issued as a result of 
misconduct, where the Board exceeded its authority or failed to 
resolve a claim, or where a default determination or dismissal 
for failure to prosecute was the result of excusable 
neglect.\17\ Parties may also seek a court order to enforce the 
Board's decisions.\18\
---------------------------------------------------------------------------
    \15\Id. Sec. 1506(w).
    \16\Id. Sec. 1506(x).
    \17\Id. Sec. 1508(c).
    \18\Id. Sec. 1508(a).
---------------------------------------------------------------------------

                Background and Need for the Legislation


                         I. GENERAL BACKGROUND

    The CASE Act is the product of more than 15 years of 
consideration by the Committee.\19\ In 2006, the House 
Judiciary Subcommittee on Courts, the Internet, and 
Intellectual Property held a hearing focused on alternatives to 
district court litigation for small copyright claims, 
including, most notably, a small claims court.\20\ In 2011, the 
House Judiciary Committee, observing that ``the costs of 
litigating in federal court have become increasingly 
prohibitive,'' requested that the Copyright Office undertake a 
study on the shortfalls of the current system and, after 
soliciting input from interested stakeholders, recommend 
changes ``that will improve the adjudication of small copyright 
claims and thereby enable all copyright owner to more fully 
realize the promise of exclusive rights enshrined in our 
Constitution.''\21\
---------------------------------------------------------------------------
    \19\See generally Sandra M. Aistars, Ensuring Only Good Claims Come 
in Small Packages: A Response to Scholarly Concerns About a Proposed 
Small Copyright Claims Tribunal, 26 Geo. Mason L. Rev. 65, 69 (2018), 
http://georgemasonlawreview.org/wp-content/uploads/2019/04/26-1_3-
Aistars.pdf.
    \20\Remedies for Small Copyright Claims: Hearing Before the 
Subcomm. on Courts, the Internet, and Intellectual Prop. of the H. 
Comm. on the Judiciary, 109th Cong. (2006), https://www.govinfo.gov/
content/pkg/CHRG-109hhrg26767/pdf/CHRG-109hhrg26767.pdf.
    \21\See Letter from Lamar Smith, Chairman, H. Comm. on the 
Judiciary, to Maria A. Pallante, Register of Copyrights and Director, 
U.S. Copyright Office (Oct. 11, 2011), included in U.S. Copyright 
Office, Copyright Small Claims: A Report of the Register of Copyrights 
(2013), https://www.copyright.gov/docs/smallclaims/usco-
smallcopyrightclaims.pdf.
---------------------------------------------------------------------------
    The Committee's request to the Copyright Office emphasized 
the importance of ensuring that copyright interests without 
high expected damages have some mode of enforceability so that 
individual creators, ``many of whom rely upon the promise of 
exclusive rights associated with the grant of copyright to earn 
a living and provide for their families[,] . . . have a 
realistic ability to enforce those rights when they have a 
comparatively modest claim for damages.''\22\ The request 
noted:
---------------------------------------------------------------------------
    \22\Id.

    On an individual level, the inability to enforce one's 
rights undermines the economic incentive to continue investing 
in the creation of new works. On a collective level, the 
inability to enforce rights corrodes respect for the rule of 
law and deprives society of the benefit of new and expressive 
works of authorship.\23\
---------------------------------------------------------------------------
    \23\Id.

    The Copyright Office delivered its report in 2013. The 
report observed that modern information technology has made it 
easy to make unauthorized copies of protected works ``at 
virtually no cost, much to the detriment of authors and the 
market for their works,'' but that, perhaps ironically, as the 
rate of infringement has increased, so too have the barriers to 
pursuing copyright claims in the federal courts.\24\ The report 
further described how ``federal court is effectively 
inaccessible to copyright owners seeking redress for claims of 
relatively low economic value, especially individual creators 
of limited resources.''\25\ The Copyright Office analyzed a 
range of alternative models and attendant constitutional 
limitations,\26\ and ultimately recommended the creation of a 
small claims tribunal housed in the Copyright Office.\27\ The 
Copyright Office's report and supporting materials are 
incorporated here as part of the legislative history of the 
CASE Act.\28\ The Copyright Office's report included proposed 
model legislation. The CASE Act was introduced in the 114th 
Congress based on this proposal. The bill was reintroduced in 
both the 115th and 116th Congresses with several revisions.
---------------------------------------------------------------------------
    \24\Copyright Small Claims, supra note 20, at 1.
    \25\Id. at 8.
    \26\Id. at 27 (constitutional issues); id. at 51 (state court 
models); id. at 62 (administrative proceedings, Article I courts, 
alternative dispute resolution procedures, and international models).
    \27\Id. at 92.
    \28\Those materials include the record of the Office's three 
notices of inquiry, joint roundtable conducted with the United States 
Patent and Trademark Office and the George Washington University Law 
School, and multiday public hearings held in New York and Los Angeles. 
See Remedies for Copyright Small Claims, Copyright.gov, https://
www.copyright.gov/docs/smallclaims/ (last visited Oct. 21, 2019).
---------------------------------------------------------------------------
    Meanwhile, the Committee has continued to examine the need 
for a small claims tribunal. The record that was developed 
shows that the concerns that sparked this process more than 15 
years ago remain valid, and that the need for this legislation 
has increased rather than abated. For example, during a hearing 
on September 27, 2018, Jenna Close, a photographer and small 
business owner, offered testimony on the need for a small 
claims process:

    Why do visual artists so often forego legal action? The 
answer is simple. Federal court litigation is too burdensome 
and too expensive. The cost of bringing the suit alone would 
likely dwarf any potential favorable verdict. The reality of 
the system today makes infringement losses a cost of doing 
business, and not one that many creators can afford. The time 
to end this historic inequity is now.\29\
---------------------------------------------------------------------------
    \29\See Copyright Alternative in Small-Claims Enforcement Act of 
2017: Hearing on H.R. 3945 Before the H. Comm. on the Judiciary, 115th 
Cong. 10 (2018), https://www.govinfo.gov/content/pkg/CHRG-115hhrg33419/
pdf/CHRG-115hhrg33419.pdf.

    The Register of Copyrights echoed Ms. Close's testimony at 
---------------------------------------------------------------------------
an oversight hearing held by the Committee on June 26, 2019:

    Overall, this situation means that low-dollar but still 
valuable copyrighted works often may be infringed with 
impunity, with individual creators and small businesses often 
lacking an effective remedy. Similarly, these hurdles may be 
insurmountable for the majority of users who believe that they 
have a strong fair use defense or are otherwise using a 
copyrighted work pursuant to an exception or limitation that 
allows their use . . . .\30\
---------------------------------------------------------------------------
    \30\Oversight of the U.S. Copyright Office: Hearing Before the H. 
Comm. on the Judiciary, 116th Cong. (2019) (statement of Karyn A. 
Temple, U.S. Register of Copyrights), https://docs.house.gov/meetings/
JU/JU00/20190626/109696/HHRG-116-JU00-Wstate-TempleK-20190626-U3.pdf.
---------------------------------------------------------------------------

                   II. CONSTITUTIONAL CONSIDERATIONS

A. The Copyright Clause

    The CASE Act flows from the Copyright Clause, the 
Constitutional grant of power to Congress ``[t]o promote the 
Progress of Science and useful Arts, by securing for limited 
Times to Authors and Inventors the exclusive Right to their 
respective Writings and Discoveries.''\31\ The Copyright Clause 
embodies the ``conviction that encouragement of individual 
effort by personal gain is the best way to advance public 
welfare through the talents of authors and investors''\32\ and 
empowers Congress to create a ``system'' that promotes these 
goals.\33\ The small claims process created by the CASE Act 
reflects the Congressional determination that a modern 
copyright system requires a small claims process to effectively 
promote the creation and distribution of new works, in order to 
ensure that creators can obtain a monetary return on their 
investment of time, energy, and ingenuity into the creative 
process.
---------------------------------------------------------------------------
    \31\U.S. Const. art. I, Sec. 8, cl. 8.
    \32\Mazer v. Stein, 347 U.S. 201, 219 (1954); see also Eldred v. 
Ashcroft, 537 U.S. 186, 212 n.18 (2003).
    \33\Eldred, 537 U.S. at 213.
---------------------------------------------------------------------------

B. The Appointments Clause

    The Copyright Claims Board is structured to comply with the 
Constitution's Appointments Clause.\34\ The Copyright Claims 
Officers are appointed as inferior officers for a fixed term by 
the Senate-confirmed Librarian of Congress; their terms are 
renewable, but not automatically so. The Librarian may also 
sanction or remove the Claims Officers.\35\ Both the Copyright 
Claims Officers and Copyright Claims Attorneys work under the 
general direction of the Register of Copyrights, who reports to 
the Librarian of Congress.\36\ Determinations of the Board are 
subject to review by the Register of Copyrights, who reports to 
the Librarian of Congress.\37\ Thus, the Claims Officers' 
decisions and actions are all ultimately accountable to a 
Senate-confirmed principal officer, the Librarian of Congress.
---------------------------------------------------------------------------
    \34\U.S. Const. art. II, Sec. 2, cl. 2; see also Lucia v. SEC, 138 
S. Ct. 2044, 2051-55 (2018); Freytag v. Comm'r, 501 U.S. 868, 880-92 
(1991).
    \35\See Edmond v. United States, 520 U.S. 651, 665 (1997) (``The 
power to remove officers, we have recognized, is a powerful tool for 
control.'').
    \36\See. id. at 666.
    \37\Cf. id. at 665 (``What is significant is that the judges . . . 
have no power to render a final decision . . . unless permitted to do 
so by other Executive Officers.'').
---------------------------------------------------------------------------

C. Article III and Seventh Amendment Rights

    Any alternative forum not presided over by a federal judge 
must satisfy three constitutional requirements that inhere from 
the Seventh Amendment right to a jury trial and the 
Constitution's vesting of judicial power primarily in Article 
III tribunals. Two of these protections are personal: The 
general rule is that the Constitution secures both the right to 
a jury trial in civil cases where more than $20 is at issue and 
the right to have a case heard before an Article III 
tribunal.\38\ Both of these rights can be waived so long as the 
waiver is knowing and voluntary.\39\ The third protection is 
structural: Congress cannot confer the government's judicial 
power on non-Article III entities such that it has 
impermissibly threatened the institutional integrity of the 
federal courts.\40\
---------------------------------------------------------------------------
    \38\CFTC v. Schor, 478 U.S. 833, 848-49 (1986).
    \39\See Wellness Int'l Network v. Sharif, 135 S. Ct. 1932, 1948 
(2015).
    \40\Oil States Energy Servs., LLC v. Greene's Energy Grp., LLC, 138 
S. Ct. 1365, 1372 (2018); Schor, 478 U.S. at 857; Sharif, 135 S. Ct. at 
1945.
---------------------------------------------------------------------------
    Particularly where participation in a non-Article tribunal 
is mandatory, this inquiry can turn in part on whether the new 
adjudicatory body deals with ``public rights'' as opposed to 
``private rights.'' The difficulty here lies in the fact that 
the Supreme Court ``has not definitively explained the 
distinction between public and private rights,''\41\ eschewing 
bright lines for a mix of functional, formal, and historical 
considerations. Moreover, the case law in this area ``ha[s] not 
been entirely consistent.''\42\ At least for some purposes, the 
case law suggests that the grant of a copyright should be 
considered a public right.\43\
---------------------------------------------------------------------------
    \41\Oil States, 138 S. Ct. at 1373 (quotations omitted).
    \42\Id.
    \43\Id.; see also Aistars, supra note 19, at 75-76.
---------------------------------------------------------------------------
    The voluntary nature of the proceedings established by the 
CASE Act shifts the focus from the public rights analysis to 
considerations of whether those proceedings encroach upon the 
integrity of the federal courts. The Supreme Court has stated 
that ``consent remains highly relevant when determining . . . 
whether a particular adjudication'' duly respects the rights to 
a jury trial and Article III adjudication, as well as the 
federal courts' exercise of judicial power.\44\ Consent can be 
explicit or inferred, but ``notification of the right to 
refuse'' participation in a non-Article III forum ``is a 
prerequisite to any inference of consent.''\45\ The CASE Act is 
designed to ensure that the participation of respondents is 
voluntary and includes explicit requirements that respondents 
be informed of their right to refuse to participate in the 
copyright small claims process and the constitutional rights 
that attend that choice.\46\
---------------------------------------------------------------------------
    \44\Sharif, 135 S. Ct. at 1942 & n.11.
    \45\Id. at 1948.
    \46\H.R. 2426 Sec. 1506(g).
---------------------------------------------------------------------------
    Other elements of the Board's structure and authority are 
designed to preclude encroachment on the federal judiciary. The 
Board cannot make new copyright law; instead, it is statutorily 
bound to follow existing precedent.\47\ The Board cannot 
enforce its determinations; rather, the Board's determinations 
are ``enforceable only by order of a district court.''\48\ The 
Board's decisions are subject to district court review on 
limited but well-established grounds that parallel Section 10 
of the Federal Arbitration Act.\49\ The Supreme Court has not 
held that the Federal Arbitration Act, which permits a far 
wider set of issues to be resolved by private arbitration and 
subject to arguably less judicial review, threatens the 
integrity of the judicial branch. Moreover, the small claims 
tribunal created by the CASE Act is subject-matter limited to 
statutory copyright law, rather than the common law. Ancillary 
issues fall outside of the Board's statutory jurisdiction--its 
``subject matter competence.''\50\ And subject matter experts--
regarding both copyright law and alternative dispute 
resolution--must comprise the Board.\51\
---------------------------------------------------------------------------
    \47\Id. Sec. Sec. 1503(b), 1506(a).
    \48\Id. Sec. 1508(a); Stern, 564 U.S. at 491.
    \49\H.R. 2426 Sec. 1508(b).
    \50\Id. Sec. 1506(f)(3)(C); Stern v. Marshall, 564 U.S. 462, 491 
(2011). For use of the term ``subject matter competence,'' see, e.g., 
Williams v. Metzler, 132 F.3d 937, 941 (3d Cir. 1997); Burns v. U.S. 
R.R. Retirement Bd., 701 F.2d 189, 179 (D.C. Cir. 1983).
    \51\H.R. 2426 1502; see Stern, 564 U.S. at 491; Schor, 478 U.S. at 
855-56.
---------------------------------------------------------------------------

D. Procedural Due Process

    The CASE Act is drafted to meet the Due Process Clause's 
guarantee of fundamental fairness in a federal proceeding. Due 
Process is ``flexible . . . and it calls for such procedural 
protections as the particular situation demands,'' which 
include the basic requirements of personal jurisdiction, 
notice, and the opportunity to be heard.\52\ The copyright 
small claims process created by the CASE Act includes due 
process protections appropriate for the context of a voluntary, 
streamlined agency adjudicatory process, as described further 
below.
---------------------------------------------------------------------------
    \52\Jennings v. Rodriguez, 138 S. Ct. 830, 852 (2018); Mathews v. 
Eldridge, 424 U.S. 319, 332-34 (1976).
---------------------------------------------------------------------------
    First, the CASE Act is designed so that parties can 
participate remotely in proceedings. Accordingly, because the 
parties will not have to appear in person before the Board, 
personal jurisdiction can be established by their minimum 
relevant contacts within the United States and its territories, 
as well as by their consent.\53\
---------------------------------------------------------------------------
    \53\See Bristol-Myers Squibb Co. v. Superior Court of California, 
San Francisco Cty., 137 S. Ct. 1773, 1785 (2017); J. McIntyre Mach., 
Ltd. v. Nicastro, 564 U.S. 873, 880 (2011) (plurality opinion); Ins. 
Corp. of Ir., Ltd. v. Compagnie des Bauxites de Guinee, 456 U.S. 694, 
703-05 (1982); see generally 4 Fed. Prac. & Proc. Civ. Sec. 1068.1 (4th 
ed.).
---------------------------------------------------------------------------
    The Act's service of process provisions are modeled on Rule 
4 of the Federal Rules of Civil Procedure, with the additional 
protections that a claim must first be reviewed by a Claims 
Attorney and, if the claim complies with the Act, service of 
the claim must include a clear and prominent explanation of the 
respondent's right to opt out of the proceeding and the rights 
the respondent waives if it does not.\54\
---------------------------------------------------------------------------
    \54\H.R. 2426 Sec. 1506.
---------------------------------------------------------------------------
    The Act also requires that the parties have a meaningful 
opportunity to be heard.\55\ If the parties are proceeding pro 
se, their papers and assertions are construed liberally in 
favor of adjudicating applicable claims and defenses; they may 
in any event raise those defenses in their response to the 
notice of claim, through documentary and testimonial evidence, 
at telephonic or livestreamed hearings, and through written 
submissions. Parties may conduct discovery and obtain 
protective orders.\56\ Parties also have greater protection 
against default than in federal court, as explained below.
---------------------------------------------------------------------------
    \55\Compare the Act's provision of guidelines for the conduct of 
proceedings under new Sec. 1506 with the procedural protections 
described in Copyright Small Claims, supra note 20, at 47-48 and notes 
therein.
    \56\H.R. 2426 Sec. 1506.
---------------------------------------------------------------------------
    The Act also provides multiple opportunities for the 
parties to contest the Board's determinations. They may seek 
reconsideration by the Board and review by the Register of 
Copyrights.\57\ They may also seek review in federal district 
court on grounds similar to those available under the Federal 
Arbitration Act.\58\ Determinations are therefore reviewable 
for violations of fundamental fairness.\59\
---------------------------------------------------------------------------
    \57\Id. Sec. 1506(w)-(x).
    \58\Compare id. Sec. 1508, with 9 U.S.C. Sec. 10; see also 
Copyright Small Claims, supra note 20, at 78-79.
    \59\Nat'l Football League Mgmt. Council v. Nat'l Football League 
Players Ass'n, 820 F.3d 527, 545 (2d Cir. 2016).
---------------------------------------------------------------------------

                III. INTENDED OPERATION OF THE CASE ACT

    Consistent with Congress's intent that the CASE Act create 
an alternative forum to district court litigation, many of the 
terms and processes used in the Act are drawn from preexisting, 
related state and federal statutory language, the Federal Rules 
of Civil Procedure, and established case law. Notwithstanding 
these antecedents, the statute is intended to create a novel 
dispute resolution forum. The statute should be construed as a 
whole and in light of its purposes to establish an efficient, 
effective, and voluntary alternative forum where 
unsophisticated parties can meaningfully and predictably 
resolve their claims under the Copyright Act and with its 
associated defenses.\60\
---------------------------------------------------------------------------
    \60\See FCC v. AT&T, Inc., 562 U.S. 397, 407-09 (2011).
---------------------------------------------------------------------------
            1. Federal Practice and Procedure
    While principles of federal procedure are relevant to the 
CASE Act, the Act is not intended to simply mimic federal 
practice. The Act derives from the recognition that the cost 
and complexity of litigating in federal court has made it 
functionally impossible for many creators to meaningfully 
enforce their rights. The Act also draws from the experience 
and practices of state, international, and nongovernmental 
small claims and alternative dispute resolution forums.\61\ The 
Register of Copyrights should consider these various precedents 
in implementing the CASE Act, taking advantage of the grant of 
regulatory authority to create rules and procedures most 
appropriate to create an efficient dispute resolution forum 
that also affords due process protections.
---------------------------------------------------------------------------
    \61\See, e.g., Copyright Small Claims, supra note 20, at 51-90.
---------------------------------------------------------------------------
    As the Copyright Office report noted, ``[t]he hallmark of a 
small claims proceeding is that traditional rules of civil 
procedure are significantly relaxed in order to save litigants 
effort and expense.''\62\ Similarly, ``even where more 
traditional rules of procedure apply, they may be construed 
liberally by the court so litigants are not intimidated by the 
technicalities of formal court procedure.'' And, ``in most 
small claims settings, judges significantly control the manner 
in which a case proceeds, exercising considerable discretion 
concerning the application of procedural and evidentiary 
rules.''\63\ The Act is intended to embody these key 
principles.
---------------------------------------------------------------------------
    \62\Id. at 57.
    \63\Id. at 57-58.
---------------------------------------------------------------------------
    To be sure, some principles common in federal practice may 
also apply to proceedings before the Board. For example, the 
understanding that documents filed by unrepresented parties 
must be liberally construed and held to less stringent 
standards than documents drafted by lawyers should apply to 
Board proceedings, perhaps with even greater force.\64\ In 
other words, the Board is required to consider the legal claims 
and defenses presented by the facts of each case, even if the 
parties have not pleaded each with the specificity that would 
normally be expected in federal courts with parties represented 
by counsel.
---------------------------------------------------------------------------
    \64\Erickson v. Pardus, 551 U.S. 89, 94 (2007); Higgs v. Att'y 
Gen., 655 F.3d 333, 339 (3rd Cir. 2011); Tracy v. Freshwater, 623 F.3d 
90, 101 (2d Cir. 2010).
---------------------------------------------------------------------------
    Similarly, while Board proceedings can result in damages 
awards upon a finding of liability, the Act reflects an intent 
to encourage compromise and settlement.\65\ At least one 
Copyright Claims Officer must have experience with alternative 
dispute resolution, facilitating settlement is part of the 
Board's statutory mandate, and the Act establishes a set of 
rights and duties designed to promote compromise.\66\
---------------------------------------------------------------------------
    \65\See, e.g., Williams v. First Nat'l Bank, 216 U.S. 582, 595 
(1910); Bano v. Union Carbide Corp., 273 F.3d 120, 129 (2d Cir. 2001); 
cf. Fed. R. Civ. P. 68; 28 U.S.C. Sec. 651 et seq.
    \66\H.R. 2426 Sec. Sec. 1502(b)(3)(A)(iii), 1503(a)(1)(f), 1506(r).
---------------------------------------------------------------------------
    The Act also creates a dispute resolution forum that is 
subject-matter limited to copyright, in contrast to, for 
example, the Federal Rules of Civil Procedure, which apply to 
diverse civil claims. Thus, the Act reflects the understanding 
that ``federal court procedural rules are not tuned to the 
specific needs of copyright litigants'' and that the additional 
requirements of the Copyright Act can multiply the cost and 
complexity of a case.\67\ The optional and voluntary nature of 
the copyright small claims process further distinguishes it 
from mandatory federal court proceedings.\68\ Consequently, the 
Copyright Office should consider these various factors when 
determining the specific procedures needed to effectuate this 
Act.
---------------------------------------------------------------------------
    \67\Copyright Small Claims, supra note 20, at 16.
    \68\See id. at 2-3.
    \69\See, e.g., Atl. Recording Corp. v. Brennan, 534 F. Supp. 2d 
278, 281 (D. Conn. 2008); Klemmer v. Evans, No. C-08-03732 JCS, 2009 WL 
10695592, at *8 (N.D. Cal. Feb. 13, 2009); see generally 10A Fed. Prac. 
& Proc. Civ. Sec. 2685 (4th ed.).
---------------------------------------------------------------------------
            2. Default
    The Act establishes a strong presumption against default 
judgments. Defaults are disfavored in federal court, and courts 
have denied motions for entry of default based on the presence 
of a meritorious defense, including the defense of fair 
use.\69\
    Relative to federal courts, the Copyright Claims Board has 
both more statutory authority and a greater obligation to 
scrutinize the merits of a claim. Courts applying Federal Rule 
of Civil Procedure 55 generally limit themselves to evaluating 
the plaintiff's well-pleaded allegations and any materials 
attached to the complaint, although they have discretion to go 
beyond the pleadings.\70\ In contrast, Section 1506(u) created 
under the CASE Act requires that the Copyright Claims Board 
require the claimant, in addition to the pleadings, ``submit 
relevant evidence and other information'' to support the claim 
and any asserted damages. In cases where the respondent is 
absent, the Board is expected to carefully scrutinize the 
available evidence, and consistent with district court 
practice, and consider applicable affirmative defenses such as 
fair use, where warranted by the circumstances of the case. 
Likewise, the claimant must provide evidence to prove damages 
even if the respondent is not present.
---------------------------------------------------------------------------
    \70\10A Fed. Prac. & Proc. Civ. Sec.  2688.1 (4th ed.).
---------------------------------------------------------------------------
            3. Relationship to Substantive Copyright Law
    The CASE Act establishes a voluntary and optional 
alternative forum to hear small copyright claims; it does not 
change the underlying law on which those claims are based. The 
Act takes copyright law as it finds it: the Act does not alter 
the substantive provisions of the Copyright Act or the case law 
construing it, and the Board's determinations must follow 
existing precedent.\71\ The Act also leaves copyright law as it 
finds it: the determinations of the Board may not be cited or 
relied upon, and the Board must dismiss claims that, among 
other things, would require it to make truly novel case 
law.\72\
---------------------------------------------------------------------------
    \71\See H.R. 2426 Sec.  1503(b)(1).
    \72\Id. Sec. Sec.  1507(a), 1507(c), 1506(f).
---------------------------------------------------------------------------
    The Act does, however, create greater limits on a 
respondent's liability. The Copyright Claims Board is flatly 
prohibited, for example, from enhancing statutory damages for 
willful infringement, which plaintiffs often seek in federal 
court.\73\ Under the Act, statutory damages are capped at 
$15,000 per work.\74\ When determining damages, the Board is 
also required to consider whether an infringing party has 
agreed to cease or mitigate their infringing activity.\75\ 
Total damages are limited to $30,000 or less regardless of the 
number of works at issue or the type of damages sought. In 
contrast, the Copyright Act does not cap awards for actual 
damages and profits and does not restrict the total amount that 
can be recovered in a given case.\76\ The damages caps do not 
alter existing law regarding calculating and proving damages, 
nor do they prevent the Board from considering manifestly 
unreasonable damage demands in the course of assessing whether 
the claimant acted in bad faith.
---------------------------------------------------------------------------
    \73\Id. Sec.  1504(e); see Ben Depoorter, Copyright Enforcement in 
the Digital Age: When the Remedy is the Wrong, 66 UCLA L. Rev. 400, 418 
(2019).
    \74\Compare H.R. 2426 Sec.  1504(e), with 17 U.S.C. Sec.  504(c).
    \75\H.R. 2426 Sec.  1504(e)(1)(A)(ii)(III).
    \76\Id.
---------------------------------------------------------------------------
    The CASE Act also takes a more liberal attitude towards the 
commencement of a proceeding while registration of a work is in 
progress.\77\ In federal court, registration is a prerequisite 
to filing a lawsuit.\78\ While this rule is designed to 
encourage prompt registration, the registration process can be 
complex and expensive.\79\ Small claimants may not be aware of 
the consequences of not registering in a timely manner, and 
they may not be able to afford either the relatively high fee 
to expedite registration or, if they produce numerous works, 
even the initial registration fee.\80\ If they fail to timely 
register, they cannot recover statutory damages in suits 
brought in district court. Moreover, the legislative record 
shows that many small claimants currently do not register their 
works because they do not expect to be able to enforce their 
rights in federal court.\81\
---------------------------------------------------------------------------
    \77\See id. Sec. Sec.  1504(e), 1505. The claims processing rules 
are found at 17 U.S.C. Sec. Sec.  411-412; see also Fourth Estate Pub. 
Benefit Corp. v. Wall-Street.com, LLC, 139 S. Ct. 881, 887 (2019); Reed 
Elsevier, Inc. v. Muchnick, 559 U.S. 154, 157-66 (2010).
    \78\See Fourth Estate Pub. Benefit Corp. v. Wall-Street.com, LLC, 
139 S. Ct. 881, 888 (2019).
    \79\See Nimmer on Copyright Sec.  7.16[B]-[C]; see also id. Sec.  
7.16[B] (noting that ``an elaborate scheme applies to registration as a 
prerequisite to a suit for copyright infringement''); see also Fourth 
Estate, 139 S. Ct. at 886; Copyright Small Claims, supra note 20, at 16 
(``The registration requirement . . . is not as straightforward as it 
may appear.'').
    \80\See 17 U.S.C. Sec.  411(a); Fourth Estate, 139 S. Ct. at 887.
    \81\See, e.g., Copyright Small Claims, supra note 20, at 17.
---------------------------------------------------------------------------
    To address these dynamics, the Act permits participants in 
the small claims process to bring a claim or counterclaim for 
infringement so long as the owner has applied to register the 
work and that application has not been denied.\82\ A work 
registered outside the bounds of 17 U.S.C. 412 results in a 
lower statutory damages cap of $7,500 per work, half of the 
maximum award for a work that was timely registered.\83\ The 
Board cannot, however, award any damages--statutory or 
otherwise--or issue a determination until a registration has 
been issued.\84\ This process is intended to strike a balance 
between still encouraging timely registration of works with the 
promise of a higher damages caps with the reality that smaller 
creators may have numerous understandable reasons for not 
routinely engaging in the registration process.
---------------------------------------------------------------------------
    \82\H.R. 2426 Sec.  1505.
    \83\Id. Sec.  1504(e).
    \84\Id. Sec.  1505(b).
---------------------------------------------------------------------------

                                Hearings

    The Committee on the Judiciary held no hearings on H.R. 
2426 in the 116th Congress, but received testimony on this bill 
from the Register of Copyrights, Karyn Temple, on June 26, 
2019. In the 115th Congress the Committee on the Judiciary held 
a legislative hearing on a previous version of this bill, H.R. 
3945, on September 27, 2018.

                        Committee Consideration

    On September 10, 2019, the Committee met in open session 
and ordered the bill, H.R. 2426, favorably reported as amended, 
by a voice vote, a quorum being present.

                            Committee Votes

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, the Committee advises that no 
rollcall votes occurred during the Committee's consideration of 
H.R. 2426.

                      Committee Oversight Findings

    In compliance with clause 3(c)(1) of rule XIII of the Rules 
of the House of Representatives, the Committee advises that the 
findings and recommendations of the Committee, based on 
oversight activities under clause 2(b)(1) of rule X of the 
House of Representatives, are incorporated in the descriptive 
portions of this report.

               New Budget Authority and Tax Expenditures

    Clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives is inapplicable because this legislation does 
not provide new budgetary authority or increased tax 
expenditures.

               Congressional Budget Office Cost Estimate

    In compliance with clause 3(c)(3) of rule XIII of the Rules 
of the House of Representatives, the Committee sets forth, with 
respect to the bill, H.R. 2426, the following estimate and 
comparison prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974:

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


    H.R. 2426 would establish the Copyright Claims Board (CCB) 
within the Copyright Office as a forum for parties to 
voluntarily resolve small copyright claims. Under the bill, the 
Library of Congress would appoint three copyright claims 
officers, in consultation with the Copyright Office, to manage 
CCB proceedings and to make judgements on copyright claims, 
counterclaims, and defenses. H.R. 2426 would require the 
Copyright Office to hire at least two copyright claims 
attorneys and administrative support staff to assist those 
officers, and to obtain necessary equipment and facilities. 
Finally, the Copyright Office would need to conduct a study on 
the use and efficacy of the CCB and report their findings to 
the Congress.
    Using information from the Copyright Office, CBO estimates 
that in total implementing H.R. 2426 would cost $10 million 
over the 2019-2024 period, assuming appropriation of the 
estimated amounts.
    CBO estimates that in 2020, the Copyright Office would 
spend less than $500,000 to issue rules to establish the CCB. 
In 2021, CBO estimates that the Copyright Office would spend 
about $2 million on one-time costs such as a hearing room, 
computers, and teleconferencing equipment. Salaries and other 
reoccurring costs such as printing, postage, and maintaining 
the case management system maintenance would cost $2 million a 
year over the 2021-2024 period, CBO estimates.
    H.R. 2426 would establish two new filing fees that certain 
claimants would pay to access CCB services; those fees would be 
credited to the Copyright Office's appropriation account as 
discretionary offsetting collections.\1\ CBO cannot determine 
the amount of CCB filing fees that would be collected under the 
bill because the demand for CCB services is unclear. As a 
result, CBO has not included an estimate of those fees in this 
cost estimate. Any filing fees collected in a given year would 
decrease net spending subject to appropriation.
---------------------------------------------------------------------------
    \1\Under current law, any filing fee must be between $100 and $400; 
these restrictions would apply to CCB filing fees.
---------------------------------------------------------------------------
    On September 19, 2019, CBO transmitted a cost estimate for 
S. 1273, the CASE Act of 2019, as reported by the Senate 
Committee on the Judiciary on September 12, 2019. The two bills 
are similar and CBO's estimated budgetary effects are the same 
for both bills.
    The CBO staff contact for this estimate is David Hughes. 
The estimate was reviewed by H. Samuel Papenfuss, Deputy 
Assistant Director for Budget Analysis.

                    Duplication of Federal Programs

    No provision of H.R. 2426 establishes or reauthorizes a 
program of the federal government known to be duplicative of 
another federal program, a program that was included in any 
report from the Government Accountability Office to Congress 
pursuant to section 21 of Public Law 111-139, or a program 
related to a program identified in the most recent Catalog of 
Federal Domestic Assistance.

                    Performance Goals and Objectives

    The Committee states that pursuant to clause 3(c)(4) of 
rule XIII of the Rules of the House of Representatives, H.R. 
2426 would establish a voluntary and optional process, located 
in the U.S. Copyright Office and overseen by a Copyright Claims 
Board, to resolve small copyright claims.

                          Advisory on Earmarks

    In accordance with clause 9 of rule XXI of the Rules of the 
House of Representatives, H.R. 2426 does not contain any 
congressional earmarks, limited tax benefits, or limited tariff 
benefits as defined in clause 9(d), 9(e), or 9(f) of rule XXI.

                      Section-by-Section Analysis

    The following discussion describes the bill as reported by 
the Committee.
    Sec. 1. Short Title. Section 1 sets forth the short title 
of the bill as the ``Copyright Alternative in Small-Claims 
Enforcement Act of 2019'' or the ``CASE Act of 2019''.
    Sec. 2. Copyright Small Claims. Section 2 amends title 17 
of the United States Code to add a new chapter 15. The 
following describes the sections comprising new chapter 15.
    New Sec. 1501--Definitions. Section 1501 defines various 
terms that appear in new chapter 15.
    New Sec. 1502--Copyright Claims Board and Staff. Section 
1502 establishes the Copyright Claims Board (``Board'') as a 
voluntary alternative dispute resolution forum, located within 
and supported by the U.S. Copyright Office, to resolve certain 
copyright claims and sets forth the hiring, qualifications, 
compensation, and terms of the Board and staff.
    The Board consists of three experienced copyright 
attorneys, called Copyright Claims Officers (``Claims 
Officers''), appointed by the Librarian of Congress after 
recommendation by the Register of Copyrights. Claims Officers 
may be sanctioned or removed by the Librarian of Congress, in 
consultation with the Register of Copyrights, limited only by 
section 1503(b). The Librarian of Congress must act 
expeditiously to fill any vacancy or, if an existing Claims 
Officer temporarily cannot perform their duties, appoint an 
interim Claims Officer.
    The Claims Officers must have at least seven years of legal 
experience. Two Claims Officers must have copyright litigation 
or adjudication experience, and, taken together, must have 
represented (or, if their experience is primarily adjudicatory, 
presided over) a diversity of copyright interests. The third 
Claims Officer must have both copyright and alternative dispute 
resolution experience. This latter qualification is 
particularly important, given the nature of proceedings before 
the Claims Board and the Officers' statutory mandate to 
facilitate settlement.\85\
---------------------------------------------------------------------------
    \85\See Copyright Small Claims, supra note 20, at 130 (``[A]n 
alternative small claims process could benefit substantially from a 
decisionmaker who has meaningful background and experience in ADR.'').
---------------------------------------------------------------------------
    The Claims Officers are paid at the level of compensation 
for senior level (``SL'') government employees. They have six-
year terms, but their initial terms are staggered at four, 
five, and six years. Their terms are renewable, but not 
automatically so.\86\
---------------------------------------------------------------------------
    \86\Compare H.R. 2426 Sec. 1502, with Copyright Small Claims, supra 
note 20, at 134 (proposing automatically renewable terms).
---------------------------------------------------------------------------
    The Claims Officers are assisted by two or more Copyright 
Claims Attorneys (``Claims Attorneys''). The Claims Attorneys 
must each have at least three years of copyright experience and 
may be paid at up to grade 15 of the General Schedule for 
government employees.
    The Register of Copyrights must provide the Copyright 
Claims Officers and Attorneys with the administrative and 
technological support they need to carry out their duties. This 
mandate should be construed with special regard to sections 
1506(b) and (c), which make clear that, more than many fora, 
the Board depends on up-to-date technology to function.
    New Sec. 1503--Authority and Duties of the Copyright Claims 
Board. Section 1503 sets forth the duties and powers of the 
Copyright Claims Board.
    Although subject to general direction by the Register of 
Copyrights, the Board's determinations must be based only on 
the record before it, preexisting judicial precedent, and the 
provisions of the CASE Act and any applicable regulations. 
Copyright Claims Officers and Attorneys may consult with the 
Register of Copyrights regarding general issues of law, but the 
Register's review of a proceeding is limited to the process 
provided by section 1506(w).
    Except in the case of unethical conduct, the substantive 
result of Board determinations may not be used in the 
performance appraisals of the Claims Officers or Attorneys.
    The Claims Officers and Attorneys are barred from 
inconsistent duties and subject to mandatory recusal under an 
objective standard. The Claims Officers and the Register are 
barred from ex parte communications related to active or 
pending proceedings before the Board.
    The actions of the Board and Register in connection with a 
determination are subject to judicial review as specified in 
Sec. 1508(c) rather than review provisions of the 
Administrative Procedure Act.
    New Sec. 1504--Nature of Proceedings. Section 1504 
establishes that proceedings before the Board must be voluntary 
and confirms that parties retain any preexisting right to 
instead proceed in court or another adjudicatory forum if they 
so choose. The right to bring a claim before the Board or to 
opt out of the proceedings, as well as the rights, remedies, 
and limitations under this section may not be waived unless the 
waiver is made in accordance with the Act.
    Section 1504(b) provides for a three-year statute of 
limitations on bringing claims to the Board, and that bringing 
such actions may toll the statute of limitations for bringing 
suit in federal court under 17 U.S.C. Sec. 507.
    Section 1504(c) sets forth the permissible claims, 
counterclaims, defenses, and remedies available in Board 
proceedings. Subject to applicable monetary limits, permissible 
claims before the Board include a claim for infringement or a 
declaration of non-infringement under 17 U.S.C. Sec. 106; a 
claim of misrepresentation under Sec. 512(f) of the Digital 
Millennium Copyright Act (``DMCA''); and certain limited 
counterclaims. Parties may assert any legal or equitable 
defenses to any such claims or counterclaims.
    Claims can be brought by one or more claimants against one 
or more respondents, but the claims must all arise out of the 
same activity or a continuous course of conduct and total 
damages cannot exceed the applicable monetary limits 
established pursuant to Sec. 1504(e)(1). Some claims and 
counterclaims are specifically excluded from Board 
determination, such as claims that are already pending before 
or adjudicated by a federal court, claims against a federal or 
state governmental entity or claims against a person or entity 
residing outside of the United States.
    The Board can award actual damages and profits, which are 
determined pursuant to 17 U.S.C. Sec. 504(b), or limited 
statutory damages determined pursuant to 17 U.S.C. Sec. 504(c), 
but which are capped at $15,000 per work for works timely 
registered pursuant to 17 U.S.C. Sec. 412, and $7,500 per work 
for works that are later registered under Section 1505. The 
Board may not consider whether the infringement was willful in 
assessing limited statutory damages, but it can take into 
account a respondent's willingness or refusal to cease or 
mitigate infringing activities, as well as any clause or 
provision of 17 U.S.C. Sec. 504(c) not specifically prohibited 
by the Act.
    Before final determination, the claimant must elect either 
actual damages and profits, limited statutory damages, or no 
damages. This provision is intended to mirror the process 
established by 17 U.S.C. Sec. 504. The total monetary award in 
a single proceeding is capped at $30,000, exclusive of any 
attorneys' fees and costs awarded for bad faith conduct under 
Sec. 1506 (which are generally capped at $5,000 or $2,500 for 
parties proceeding pro se).
    In addition to monetary awards, the Board shall include in 
its determination a requirement for a respondent to cease or 
mitigate infringing conduct if the respondent has agreed to do 
so. The Board may not issue injunctions. Each party shall bear 
its own attorney fees and costs, except when the Board awards 
the fees and costs because of bad faith litigation.
    The Register of Copyrights may prescribe regulations as to 
the number of cases that may be filed by a single claimant in a 
given year. This provision functions as both a docket 
management tool for the Board and as protection against abusive 
conduct.
    New Sec. 1505--Registration Requirement. A claim or 
counterclaim for infringement cannot be asserted before the 
Board unless the legal or beneficial owner of the copyright has 
filed an application for registration, deposit, and required 
fee with the Copyright Office and a registration certificate 
has been issued or has not been refused. While the Board may 
hold a proceeding with respect to the pending claim or claims 
where a registration application is pending before the 
Copyright Office, the Board may not render a determination 
until a registration certificate is issued by the Copyright 
Office.
    If there is more than a one-year delay before a certificate 
is granted, the Board may dismiss the proceeding without 
prejudice. The Register may establish expedited proceedings to 
process registration applications for works that are the 
subject of a Board proceeding. Proceedings may be held in 
abeyance automatically for up to one year pending submission of 
a registration certificate. After one year, the Board may 
dismiss the proceeding without prejudice upon notice and a 30-
day response period to the parties. The same presumption under 
Sec. 410(c) applies for works registered not less than 5 years 
after the date of publication. The Register is directed to 
establish regulations concerning expedited registration 
procedures for works before the Board.
    New Sec. 1506--Conduct of Proceedings. Section 1506 sets 
forth the Board proceedings in detail. In general, the Board is 
directed to follow the legal precedents applicable in the 
jurisdiction with the most connections to the claim. Subsection 
(b) requires the Board to maintain records to document all 
proceedings. Subsection (c) notes that no in-person appearances 
are required and that video conferencing is encouraged. 
Subsection (d) states that parties are not required to have 
legal representation but may choose to have an attorney or a 
pro bono legal clinic represent them.
    Pursuant to subsection (e), a proceeding is commenced only 
after a statement of material facts is filed by the claimant 
along with the filing fee specified by the Register. Before a 
claim is heard, subsection (f) requires that it must first be 
reviewed by a Copyright Claims Attorney who has the authority 
to require a refiling with specified deadlines if the original 
filing does not comply with applicable regulations. Claims 
shall be dismissed without prejudice if a claim cannot be heard 
by the Board due to the failure to join a necessary party; the 
lack of an essential witness, evidence or expert testimony; or 
the determination of the claim imposes too great a burden upon 
the Board or is beyond the subject matter competence of the 
Board. Counterclaims are permissible after a similar review by 
a Claims Attorney.
    Pursuant to subsections (g) and (h), claims must be served 
within 90 days of approval of the claim by a Board Attorney 
using a standardized process and notice format established by 
the Register. The notice shall contain a prominent statement 
concerning the ability of a respondent to opt out within 60 
days and the impact of not opting out. Several requirements 
govern the service of the notice and waivers of personal 
service, which are modeled on Rule 4 of the Federal Rules of 
Civil Procedure. The Board may maintain its own list of 
designated agents that have been submitted by corporations, 
partnerships, or unincorporated associations. Personal service 
may also be waived via returning a signed form to the Board, at 
no cost to the Respondent. However, waiver of personal service 
does not constitute waiver of the right to opt out. All service 
of a claim and waiver of personal service may only occur within 
the United States. The means of service for other documents are 
governed by regulations established by the Register of 
Copyrights pursuant to subsection (j).
    The opt-out procedure in subsection (i) sets forth that 
respondents have 60 calendar days to opt-out of the small 
claims process after being served with the claim.
    After the respondent does not opt out, the proceeding is 
considered to be active pursuant to subsection (k) allowing for 
scheduling of the proceeding in addition to conferences and 
discovery authorized in subsection (l) to occur.
    Subsections (m), (n), and (o) govern the materials and 
evidence to be considered by the Board. Discovery shall occur 
pursuant to regulations established by the Register. There is 
no formal motion practice before the Board, although the Board 
may request submissions sua sponte or at the request of parties 
to the proceeding. Mandatory submission of discovery materials 
is limited to the parties in the proceeding although the Board 
may request voluntary submissions from non-parties. Any 
confidential information may be covered by a protective order 
to limit public disclosure. The Board may consider relevant 
evidence to the claims in a proceeding including sworn 
testimony. Expert witnesses are not permitted unless the Board 
agrees that good cause can be shown for them.
    Subsections (p), (q), (r), (s), and (t) provide the 
statutory framework for how hearings are conducted including 
potential voluntary dismissals and settlements. Conferences may 
be held by one or more Officers which may be recorded or 
transcribed to assist the other Board members as well as being 
part of the claim record. Board determinations shall be made by 
a majority of the Officers, in writing and based upon a 
preponderance of the evidence standard. All determinations 
shall be made publicly available although confidential 
information shall be redacted. Information related to the 
proceedings are exempt from disclosure under the Freedom of 
Information Act.
    Subsections (u) and (v) address proceedings that are not 
able to proceed either due to a respondent's default or a 
claimant's failure to proceed. Unless a justifiable cause can 
be shown, a respondent can be found in default if they fail to 
appear or cease to participate in a proceeding. If this occurs, 
the Board shall prepare a proposed default determination after 
a showing of sufficient evidence by the claimant and provide a 
written notice with the proposed finding to the respondent and 
give the respondent 30 days to provide information in 
opposition to the proposed default determination. Such default 
determination may only be challenged pursuant to Sec.  1508(c). 
If a claimant fails to complete service, the claims against 
each respondent with failed service shall be dismissed without 
prejudice. If a claimant fails to prosecute, the Board may 
dismiss the claim and award attorneys' fees and costs as 
appropriate.
    Requests for reconsideration are permitted in writing to 
the Board within 30 days after the final determination, 
pursuant to subsection (w). Pursuant to subsection (x), if the 
request is refused by the Board, a party may appeal for a 
review by the Register of Copyrights who shall determine if the 
Board abused its discretion in denying reconsideration and, if 
abuse is found, remand the claim to the Board for specific 
issues identified in the remand.
    Subsection (y) authorizes actions by the Register and the 
Board to take specific actions in order to address bad faith 
conduct through awarding attorneys' fees, costs, and financial 
sanctions in the amount of up to $5,000 ($2,500 if the 
adversely affected party appeared pro se) or higher in cases of 
extraordinary circumstances or where a pattern or practice of 
bad faith conduct has occurred. Parties can also be barred from 
Board proceedings if, on more than one occasion within a 12-
month period, they come before the Board for a harassing or 
other improper purpose. If such abuse is found by the Board, 
the party is then banned from initiating a claim before the 
Board for an additional 12 months from the date of the finding, 
and all pending proceedings are dismissed without prejudice 
(upon the respondent's consent, if the proceeding is active).
    The Register of Copyrights is also directed to establish 
additional regulations to hear claims below $5,000, exclusive 
of any attorney's fees and costs, by one Claims Officer. These 
regulations are to be consistent with the regulations that 
apply to larger claims filed with the Board.
    New Sec.  1507--Effect of Proceeding. Section 1507 provides 
that a final determination precludes re-litigation of the 
claims and counterclaims before any court, tribunal or the 
Board as to the same parties, but it does not preclude 
litigation of the same issues of fact or law not finally 
determined by the Board. Determinations of the Board may not be 
cited or relied upon as legal precedent. A court reviewing a 
determination under Sec. 1508 may, however, cite that 
determination.
    A proceeding before the Claims Board shall have no effect 
on a class action proceeding. A party to a proceeding who 
receives notice of a pending class action may opt out of the 
class action.
    If a claimant who has a proceeding concerning material 
subject to a DMCA takedown notice timely notifies the service 
provider of the proceeding, the proceeding will satisfy 
Sec. 512(g) of the DMCA, 17 U.S.C. Sec. 512(g), and preclude 
the service provider from replacing the material that was 
subject to the takedown notice.
    A federal court will stay proceedings or order other 
appropriate relief when a party files a claim that is already 
the subject of an active proceeding before the Board. There are 
no compulsory counterclaims before the Board, and failure to 
plead a counterclaim has no preclusive effect.
    If a party opts out or is dismissed from a proceeding 
before the issuance of a final determination, the determination 
shall not be binding upon the party.
    New Sec. 1508--Review and Confirmation by District Court. 
Subject to meeting specified filing procedures, a party may 
seek enforcement in an appropriate U.S. district court if the 
other party has failed to pay damages awarded by the Board or 
otherwise failed to comply with the relief awarded in a final 
determination. Within 90 days of a final determination by the 
Board, a party to the proceeding may seek an order vacating, 
modifying, or correcting a determination of the Board if it was 
issued as a result of fraud, corruption, or other misconduct; 
if the Board exceeded its authority; or if excusable neglect 
causes the issuance of a default determination. Case law 
construing parallel provisions of the Federal Arbitration Act, 
9 U.S.C. Sec. 10, may be instructive in further elucidating the 
scope of this limited right to appeal to federal court.
    New Sec. 1509--Relationship to Other District Court 
Actions. Section 1509 provides that a district court must issue 
a stay of proceedings if the claim is already the subject of a 
pending or active proceeding before the Board. The Board 
qualifies as an alternative dispute resolution process under 28 
U.S.C. Sec. 651 for purposes of referring cases from the 
federal courts.
    New Sec. 1510--Implementation by Copyright Office. Section 
1510 gives the Register of Copyrights regulatory and fee-
setting authority to implement the copyright small claims 
proceedings. The Register has flexibility to vary fee amounts 
and the timing when fees are assessed to effectuate the 
purposes of the Act. The Register is also given rulemaking 
authority to adjust the limits on monetary recovery or attorney 
fees no earlier than three years after the Board issues its 
first determination. The Register may retain outside vendors to 
establish the necessary operational facilities.
    New Sec. 1511--Funding. Section 1511 authorizes 
appropriations to fund the Board and also makes certain 
clerical amendments.
    Sec. 3. Implementation. Section 3 provides that the Board 
is to begin operations not later than one year after the 
enactment of the Act.
    Sec. 4. Study. Section 4 requires that, within three years 
of the Board's issuance of its first determination, the 
Register is to conduct a study and report to Congress on the 
use and efficacy of the Board and other recommendations to 
adjust the Board, such as the scope of eligible claims, work 
and damage limitations, the awarding of attorneys' fees and 
costs, and other possible mechanisms to assist small copyright 
holders.
    Sec. 5. Severability. Section 5 provides that if any 
provision or application of the Act is held to be 
unconstitutional, the remaining provisions or applications of 
the Act retain legal force and effect.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, H.R. 2426, as reported, are shown as follows:

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (new matter is 
printed in italic and existing law in which no change is 
proposed is shown in roman):

                      TITLE 17, UNITED STATES CODE



Chap.                                                               Sec.
      Subject Matter and Scope of Copyright..........................101
     * * * * * * *
1501Copyright Small Claims............................................

           *       *       *       *       *       *       *


                   CHAPTER 15--COPYRIGHT SMALL CLAIMS

Sec.
1501. Definitions.
1502. Copyright Claims Board.
1503. Authority and duties of the Copyright Claims Board.
1504. Nature of proceedings.
1505. Registration requirement.
1506. Conduct of proceedings.
1507. Effect of proceeding.
1508. Review and confirmation by district court.
1509. Relationship to other district court actions.
1510. Implementation by Copyright Office.
1511. Funding.

Sec. 1501. Definitions

  In this chapter--
          (1) the term ``party''--
                  (A) means a party; and
                  (B) includes the attorney of a party, as 
                applicable;
          (2) the term ``claimant'' means the real party in 
        interest that commences a proceeding before the 
        Copyright Claims Board under section 1506(e), pursuant 
        to a permissible claim of infringement brought under 
        section 1504(c)(1), noninfringement brought under 
        section 1504(c)(2), or misrepresentation brought under 
        section 1504(c)(3);
          (3) the term ``counterclaimant'' means a respondent 
        in a proceeding before the Copyright Claims Board 
        that--
                  (A) asserts a permissible counterclaim under 
                section 1504(c)(4) against the claimant in the 
                proceeding; and
                  (B) is the real party in interest with 
                respect to the counterclaim described in 
                subparagraph (A); and
          (4) the term ``respondent'' means any person against 
        whom a proceeding is brought before the Copyright 
        Claims Board under section 1506(e), pursuant to a 
        permissible claim of infringement brought under section 
        1504(c)(1), noninfringement brought under section 
        1504(c)(2), or misrepresentation brought under section 
        1504(c)(3).

Sec. 1502. Copyright Claims Board

  (a) In General.--There is established in the Copyright Office 
the Copyright Claims Board, which shall serve as an alternative 
forum in which parties may voluntarily seek to resolve certain 
copyright claims regarding any category of copyrighted work, as 
provided in this chapter.
  (b) Officers and Staff.--
          (1) Copyright claims officers.--The Register of 
        Copyrights shall recommend 3 full-time Copyright Claims 
        Officers to serve on the Copyright Claims Board in 
        accordance with paragraph (3)(A). The Officers shall be 
        appointed by the Librarian of Congress to such 
        positions after consultation with the Register of 
        Copyrights.
          (2) Copyright claims attorneys.--The Register of 
        Copyrights shall hire not fewer than 2 full-time 
        Copyright Claims Attorneys to assist in the 
        administration of the Copyright Claims Board.
          (3) Qualifications.--
                  (A) Copyright claims officers.--
                          (i) In general.--Each Copyright 
                        Claims Officer shall be an attorney who 
                        has not fewer than 7 years of legal 
                        experience.
                          (ii) Experience.--Two of the 
                        Copyright Claims Officers shall have--
                                  (I) substantial experience in 
                                the evaluation, litigation, or 
                                adjudication of copyright 
                                infringement claims; and
                                  (II) between those 2 
                                Officers, have represented or 
                                presided over a diversity of 
                                copyright interests, including 
                                those of both owners and users 
                                of copyrighted works.
                          (iii) Alternative dispute 
                        resolution.--The Copyright Claims 
                        Officer not described in clause (ii) 
                        shall have substantial familiarity with 
                        copyright law and experience in the 
                        field of alternative dispute 
                        resolution, including the resolution of 
                        litigation matters through that method 
                        of resolution.
                  (B) Copyright claims attorneys.--Each 
                Copyright Claims Attorney shall be an attorney 
                who has not fewer than 3 years of substantial 
                experience in copyright law.
          (4) Compensation.--
                  (A) Copyright claims officers.--
                          (i) Definition.--In this 
                        subparagraph, the term ``senior level 
                        employee of the Federal Government'' 
                        means an employee, other than an 
                        employee in the Senior Executive 
                        Service, the position of whom is 
                        classified above GS-15 of the General 
                        Schedule.
                          (ii) Pay range.--Each Copyright 
                        Claims Officer shall be compensated at 
                        a rate of pay that is not less than the 
                        minimum, and not more than the maximum, 
                        rate of pay payable for senior level 
                        employees of the Federal Government, 
                        including locality pay, as applicable.
                  (B) Copyright claims attorneys.--Each 
                Copyright Claims Attorney shall be compensated 
                at a rate of pay that is not more than the 
                maximum rate of pay payable for level 10 of GS-
                15 of the General Schedule, including locality 
                pay, as applicable.
          (5) Terms.--
                  (A) In general.--Subject to subparagraph (B), 
                a Copyright Claims Officer shall serve for a 
                renewable term of 6 years.
                  (B) Initial terms.--The terms for the first 
                Copyright Claims Officers appointed under this 
                chapter shall be as follows:
                          (i) The first such Copyright Claims 
                        Officer appointed shall be appointed 
                        for a term of 4 years.
                          (ii) The second Copyright Claims 
                        Officer appointed shall be appointed 
                        for a term of 5 years.
                          (iii) The third Copyright Claims 
                        Officer appointed shall be appointed 
                        for a term of 6 years.
          (6) Vacancies and incapacity.--
                  (A) Vacancy.--
                          (i) In general.--If a vacancy occurs 
                        in the position of a Copyright Claims 
                        Officer, the Librarian of Congress 
                        shall, upon the recommendation of and 
                        in consultation with the Register of 
                        Copyrights, act expeditiously to 
                        appoint a Copyright Claims Officer for 
                        that position.
                          (ii) Vacancy before expiration.--An 
                        individual appointed to fill a vacancy 
                        occurring before the expiration of the 
                        term for which the predecessor of the 
                        individual was appointed shall be 
                        appointed to serve a 6-year term.
                  (B) Incapacity.--If a Copyright Claims 
                Officer is temporarily unable to perform the 
                duties of the Officer, the Librarian of 
                Congress shall, upon recommendation of and in 
                consultation with the Register of Copyrights, 
                act expeditiously to appoint an interim 
                Copyright Claims Officer to perform such duties 
                during the period of such incapacity.
          (7) Sanction or removal.--Subject to section 1503(b), 
        the Librarian of Congress may sanction or remove a 
        Copyright Claims Officer.
          (8) Administrative support.--The Register of 
        Copyrights shall provide the Copyright Claims Officers 
        and Copyright Claims Attorneys with necessary 
        administrative support, including technological 
        facilities, to carry out the duties of the Officers and 
        Attorneys under this chapter.
          (9) Location of copyright claims board.--The offices 
        and facilities of the Copyright Claims Officers and 
        Copyright Claims Attorneys shall be located at the 
        Copyright Office.

Sec. 1503. Authority and duties of the Copyright Claims Board

  (a) Functions.--
          (1) Copyright claims officers.--Subject to the 
        provisions of this chapter and applicable regulations, 
        the functions of the Copyright Claims Officers shall be 
        as follows:
                  (A) To render determinations on the civil 
                copyright claims, counterclaims, and defenses 
                that may be brought before the Officers under 
                this chapter.
                  (B) To ensure that claims, counterclaims, and 
                defenses are properly asserted and otherwise 
                appropriate for resolution by the Copyright 
                Claims Board.
                  (C) To manage the proceedings before the 
                Officers and render rulings pertaining to the 
                consideration of claims, counterclaims, and 
                defenses, including with respect to scheduling, 
                discovery, evidentiary, and other matters.
                  (D) To request, from participants and 
                nonparticipants in a proceeding, the production 
                of information and documents relevant to the 
                resolution of a claim, counterclaim, or 
                defense.
                  (E) To conduct hearings and conferences.
                  (F) To facilitate the settlement by the 
                parties of claims and counterclaims.
                  (G)(i) To award monetary relief; and
                  (ii) to include in the determinations of the 
                Officers a requirement that certain activities 
                under section 1504(e)(2) cease or be mitigated, 
                if the party to undertake the applicable 
                measure has so agreed.
                  (H) To provide information to the public 
                concerning the procedures and requirements of 
                the Copyright Claims Board.
                  (I) To maintain records of the proceedings 
                before the Officers, certify official records 
                of such proceedings as needed, and, as provided 
                in section 1506(t), make the records in such 
                proceedings available to the public.
                  (J) To carry out such other duties as are set 
                forth in this chapter.
                  (K) When not engaged in performing the duties 
                of the Officers set forth in this chapter, to 
                perform such other duties as may be assigned by 
                the Register of Copyrights.
          (2) Copyright claims attorneys.--Subject to the 
        provisions of this chapter and applicable regulations, 
        the functions of the Copyright Claims Attorneys shall 
        be as follows:
                  (A) To provide assistance to the Copyright 
                Claims Officers in the administration of the 
                duties of those Officers under this chapter.
                  (B) To provide assistance to members of the 
                public with respect to the procedures and 
                requirements of the Copyright Claims Board.
                  (C) To provide information to potential 
                claimants contemplating bringing a permissible 
                action before the Copyright Claims Board about 
                obtaining a subpoena under section 512(h) for 
                the sole purpose of identifying a potential 
                respondent in such an action.
                  (D) When not engaged in performing the duties 
                of the Attorneys set forth in this chapter, to 
                perform such other duties as may be assigned by 
                the Register of Copyrights.
  (b) Independence in Determinations.--
          (1) In general.--The Copyright Claims Board shall 
        render the determinations of the Board in individual 
        proceedings independently on the basis of the records 
        in the proceedings before it and in accordance with the 
        provisions of this title, judicial precedent, and 
        applicable regulations of the Register of Copyrights.
          (2) Consultation.--The Copyright Claims Officers and 
        Copyright Claims Attorneys--
                  (A) may consult with the Register of 
                Copyrights on general issues of law; and
                  (B) subject to section 1506(x), may not 
                consult with the Register of Copyrights with 
                respect to--
                          (i) the facts of any particular 
                        matter pending before the Officers and 
                        the Attorneys; or
                          (ii) the application of law to the 
                        facts described in clause (i).
          (3) Performance appraisals.--Notwithstanding any 
        other provision of law or any regulation or policy of 
        the Library of Congress or Register of Copyrights, any 
        performance appraisal of a Copyright Claims Officer or 
        Copyright Claims Attorney may not consider the 
        substantive result of any individual determination 
        reached by the Copyright Claims Board as a basis for 
        appraisal except to the extent that result may relate 
        to any actual or alleged violation of an ethical 
        standard of conduct.
  (c) Direction by Register.--Subject to subsection (b), the 
Copyright Claims Officers and Copyright Claims Attorneys shall, 
in the administration of their duties, be under the general 
direction of the Register of Copyrights.
  (d) Inconsistent Duties Barred.--A Copyright Claims Officer 
or Copyright Claims Attorney may not undertake any duty that 
conflicts with the duties of the Officer or Attorney in 
connection with the Copyright Claims Board.
  (e) Recusal.--A Copyright Claims Officer or Copyright Claims 
Attorney shall recuse himself or herself from participation in 
any proceeding with respect to which the Copyright Claims 
Officer or Copyright Claims Attorney, as the case may be, has 
reason to believe that he or she has a conflict of interest.
  (f) Ex Parte Communications.--Except as may otherwise be 
permitted by applicable law, any party to a proceeding before 
the Copyright Claims Board shall refrain from ex parte 
communications with the Copyright Claims Officers and the 
Register of Copyrights concerning the substance of any active 
or pending proceeding before the Copyright Claims Board.
  (g) Judicial Review.--Actions of the Copyright Claims 
Officers and Register of Copyrights under this chapter in 
connection with the rendering of any determination are subject 
to judicial review as provided under section 1508(c) and not 
under chapter 7 of title 5.

Sec. 1504. Nature of proceedings

  (a) Voluntary Participation.--Participation in a Copyright 
Claims Board proceeding shall be on a voluntary basis in 
accordance with this chapter and the right of any party to 
instead pursue a claim, counterclaim, or defense in a district 
court of the United States or any other court, and to seek a 
jury trial, shall be preserved. The rights, remedies, and 
limitations under this section may not be waived except in 
accordance with this chapter.
  (b) Statute of Limitations.--
          (1) In general.--A proceeding may not be maintained 
        before the Copyright Claims Board unless the proceeding 
        is commenced, in accordance with section 1506(e), 
        before the Copyright Claims Board within 3 years after 
        the claim accrued.
          (2) Tolling.--Subject to section 1507(a), a 
        proceeding commenced before the Copyright Claims Board 
        shall toll the time permitted under section 507(b) for 
        the commencement of an action on the same claim in a 
        district court of the United States during the period 
        in which the proceeding is pending.
  (c) Permissible Claims, Counterclaims, and Defenses.--The 
Copyright Claims Board may render determinations with respect 
to the following claims, counterclaims, and defenses, subject 
to such further limitations and requirements, including with 
respect to particular classes of works, as may be set forth in 
regulations established by the Register of Copyrights:
          (1) A claim for infringement of an exclusive right in 
        a copyrighted work provided under section 106 by the 
        legal or beneficial owner of the exclusive right at the 
        time of the infringement for which the claimant seeks 
        damages, if any, within the limitations set forth in 
        subsection (e)(1).
          (2) A claim for a declaration of noninfringement of 
        an exclusive right in a copyrighted work provided under 
        section 106, consistent with section 2201 of title 28.
          (3) A claim under section 512(f) for 
        misrepresentation in connection with a notification of 
        claimed infringement or a counter notification seeking 
        to replace removed or disabled material, except that 
        any remedies relating to such a claim in a proceeding 
        before the Copyright Claims Board shall be limited to 
        those available under this chapter.
          (4) A counterclaim that is asserted solely against 
        the claimant in a proceeding--
                  (A) pursuant to which the counterclaimant 
                seeks damages, if any, within the limitations 
                set forth in subsection (e)(1); and
                  (B) that--
                          (i) arises under section 106 or 
                        section 512(f) and out of the same 
                        transaction or occurrence that is the 
                        subject of a claim of infringement 
                        brought under paragraph (1), a claim of 
                        noninfringement brought under paragraph 
                        (2), or a claim of misrepresentation 
                        brought under paragraph (3); or
                          (ii) arises under an agreement 
                        pertaining to the same transaction or 
                        occurrence that is the subject of a 
                        claim of infringement brought under 
                        paragraph (1), if the agreement could 
                        affect the relief awarded to the 
                        claimant.
          (5) A legal or equitable defense under this title or 
        otherwise available under law, in response to a claim 
        or counterclaim asserted under this subsection.
          (6) A single claim or multiple claims permitted under 
        paragraph (1), (2), or (3) by one or more claimants 
        against one or more respondents, but only if all claims 
        asserted in any one proceeding arise out of the same 
        allegedly infringing activity or continuous course of 
        infringing activities and do not, in the aggregate, 
        result in the recovery of such claim or claims for 
        damages that exceed the limitations under subsection 
        (e)(1).
  (d) Excluded Claims.--The following claims and counterclaims 
are not subject to determination by the Copyright Claims Board:
          (1) A claim or counterclaim that is not a permissible 
        claim or counterclaim under subsection (c).
          (2) A claim or counterclaim that has been finally 
        adjudicated by a court of competent jurisdiction or 
        that is pending before a court of competent 
        jurisdiction, unless that court has granted a stay to 
        permit that claim or counterclaim to proceed before the 
        Copyright Claims Board.
          (3) A claim or counterclaim by or against a Federal 
        or State governmental entity.
          (4) A claim or counterclaim asserted against a person 
        or entity residing outside of the United States, except 
        in a case in which the person or entity initiated the 
        proceeding before the Copyright Claims Board and is 
        subject to counterclaims under this chapter.
  (e) Permissible Remedies.--
          (1) Monetary recovery.--
                  (A) Actual damages, profits, and statutory 
                damages for infringement.--With respect to a 
                claim or counterclaim for infringement of 
                copyright, and subject to the limitation on 
                total monetary recovery under subparagraph (D), 
                the Copyright Claims Board may award either of 
                the following:
                          (i) Actual damages and profits 
                        determined in accordance with section 
                        504(b), with that award taking into 
                        consideration, in appropriate cases, 
                        whether the infringing party has agreed 
                        to cease or mitigate the infringing 
                        activity under paragraph (2).
                          (ii) Statutory damages, which shall 
                        be determined in accordance with 
                        section 504(c), subject to the 
                        following conditions:
                                  (I) With respect to works 
                                timely registered under section 
                                412, so that the works are 
                                eligible for an award of 
                                statutory damages in accordance 
                                with that section, the 
                                statutory damages may not 
                                exceed $15,000 for each work 
                                infringed.
                                  (II) With respect to works 
                                not timely registered under 
                                section 412, but eligible for 
                                an award of statutory damages 
                                under this section, statutory 
                                damages may not exceed $7,500 
                                per work infringed, or a total 
                                of $15,000 in any 1 proceeding.
                                  (III) The Copyright Claims 
                                Board may not make any finding 
                                that, or consider whether, the 
                                infringement was committed 
                                willfully in making an award of 
                                statutory damages.
                                  (IV) The Copyright Claims 
                                Board may consider, as an 
                                additional factor in awarding 
                                statutory damages, whether the 
                                infringer has agreed to cease 
                                or mitigate the infringing 
                                activity under paragraph (2).
                  (B) Election of damages.--With respect to a 
                claim or counterclaim of infringement, at any 
                time before final determination is rendered, 
                and notwithstanding the schedule established by 
                the Copyright Claims Board under section 
                1506(k), the claimant or counterclaimant shall 
                elect--
                          (i) to recover actual damages and 
                        profits or statutory damages under 
                        subparagraph (A); or
                          (ii) not to recover damages.
                  (C) Damages for other claims.--Damages for 
                claims and counterclaims other than 
                infringement claims, such as those brought 
                under section 512(f), shall be subject to the 
                limitation under subparagraph (D).
                  (D) Limitation on total monetary recovery.--
                Notwithstanding any other provision of law, a 
                party that pursues any one or more claims or 
                counterclaims in any single proceeding before 
                the Copyright Claims Board may not seek or 
                recover in that proceeding a total monetary 
                recovery that exceeds the sum of $30,000, 
                exclusive of any attorneys' fees and costs that 
                may be awarded under section 1506(y)(2).
          (2) Agreement to cease certain activity.--In a 
        determination of the Copyright Claims Board, the Board 
        shall include a requirement to cease conduct if, in the 
        proceeding relating to the determination--
                  (A) a party agrees--
                          (i) to cease activity that is found 
                        to be infringing, including removing or 
                        disabling access to, or destroying, 
                        infringing materials; or
                          (ii) to cease sending a takedown 
                        notice or counter notice under section 
                        512 to the other party regarding the 
                        conduct at issue before the Board if 
                        that notice or counter notice was found 
                        to be a knowing material 
                        misrepresentation under section 512(f); 
                        and
                  (B) the agreement described in subparagraph 
                (A) is reflected in the record for the 
                proceeding.
          (3) Attorneys' fees and costs.--Notwithstanding any 
        other provision of law, except in the case of bad faith 
        conduct as provided in section 1506(y)(2), the parties 
        to proceedings before the Copyright Claims Board shall 
        bear their own attorneys' fees and costs.
  (f) Joint and Several Liability.--Parties to a proceeding 
before the Copyright Claims Board may be found jointly and 
severally liable if all such parties and relevant claims or 
counterclaims arise from the same activity or activities.
  (g) Permissible Number of Cases.--The Register of Copyrights 
may establish regulations relating to the permitted number of 
proceedings each year by the same claimant under this chapter, 
in the interests of justice and the administration of the 
Copyright Claims Board. 

Sec. 1505. Registration requirement

  (a) Application or Certificate.--A claim or counterclaim 
alleging infringement of an exclusive right in a copyrighted 
work may not be asserted before the Copyright Claims Board 
unless--
          (1) the legal or beneficial owner of the copyright 
        has first delivered a completed application, a deposit, 
        and the required fee for registration of the copyright 
        to the Copyright Office; and
          (2) a registration certificate has either been issued 
        or has not been refused.
  (b) Certificate of Registration.--Notwithstanding any other 
provision of law, a claimant or counterclaimant in a proceeding 
before the Copyright Claims Board shall be eligible to recover 
actual damages and profits or statutory damages under this 
chapter for infringement of a work if the requirements of 
subsection (a) have been met, except that--
          (1) the Copyright Claims Board may not render a 
        determination in the proceeding until--
                  (A) a registration certificate with respect 
                to the work has been issued by the Copyright 
                Office, submitted to the Copyright Claims 
                Board, and made available to the other parties 
                to the proceeding; and
                  (B) the other parties to the proceeding have 
                been provided an opportunity to address the 
                registration certificate;
          (2) if the proceeding may not proceed further because 
        a registration certificate for the work is pending, the 
        proceeding shall be held in abeyance pending submission 
        of the certificate to the Copyright Claims Board, 
        except that, if the proceeding is held in abeyance for 
        more than 1 year, the Copyright Claims Board may, upon 
        providing written notice to the parties to the 
        proceeding, and 30 days to the parties to respond to 
        the notice, dismiss the proceeding without prejudice; 
        and
          (3) if the Copyright Claims Board receives notice 
        that registration with respect to the work has been 
        refused, the proceeding shall be dismissed without 
        prejudice.
  (c) Presumption.--In a case in which a registration 
certificate shows that registration with respect to a work was 
issued not later than 5 years after the date of the first 
publication of the work, the presumption under section 410(c) 
shall apply in a proceeding before the Copyright Claims Board, 
in addition to relevant principles of law under this title.
  (d) Regulations.--In order to ensure that actions before the 
Copyright Claims Board proceed in a timely manner, the Register 
of Copyrights shall establish regulations allowing the 
Copyright Office to make a decision, on an expedited basis, to 
issue or deny copyright registration for an unregistered work 
that is at issue before the Board.

Sec. 1506. Conduct of proceedings

  (a) In General.--
          (1) Applicable law.--Proceedings of the Copyright 
        Claims Board shall be conducted in accordance with this 
        chapter and regulations established by the Register of 
        Copyrights under this chapter, in addition to relevant 
        principles of law under this title.
          (2) Conflicting precedent.--If it appears that there 
        may be conflicting judicial precedent on an issue of 
        substantive copyright law that cannot be reconciled, 
        the Copyright Claims Board shall follow the law of the 
        Federal jurisdiction in which the action could have 
        been brought if filed in a district court of the United 
        States, or, if the action could have been brought in 
        more than 1 such jurisdiction, the jurisdiction that 
        the Copyright Claims Board determines has the most 
        significant ties to the parties and conduct at issue.
  (b) Record.--The Copyright Claims Board shall maintain 
records documenting the proceedings before the Board.
  (c) Centralized Process.--Proceedings before the Copyright 
Claims Board shall--
          (1) be conducted at the offices of the Copyright 
        Claims Board without the requirement of in-person 
        appearances by parties or others; and
          (2) take place by means of written submissions, 
        hearings, and conferences carried out through internet-
        based applications and other telecommunications 
        facilities, except that, in cases in which physical or 
        other nontestimonial evidence material to a proceeding 
        cannot be furnished to the Copyright Claims Board 
        through available telecommunications facilities, the 
        Copyright Claims Board may make alternative 
        arrangements for the submission of such evidence that 
        do not prejudice any other party to the proceeding.
  (d) Representation.--A party to a proceeding before the 
Copyright Claims Board may be, but is not required to be, 
represented by--
          (1) an attorney; or
          (2) a law student who is qualified under applicable 
        law governing representation by law students of parties 
        in legal proceedings and who provides such 
        representation on a pro bono basis.
  (e) Commencement of Proceeding.--In order to commence a 
proceeding under this chapter, a claimant shall, subject to 
such additional requirements as may be prescribed in 
regulations established by the Register of Copyrights, file a 
claim with the Copyright Claims Board, that--
          (1) includes a statement of material facts in support 
        of the claim;
          (2) is certified under subsection (y)(1); and
          (3) is accompanied by a filing fee in such amount as 
        may be prescribed in regulations established by the 
        Register of Copyrights.
  (f) Review of Claims and Counterclaims.--
          (1) Claims.--Upon the filing of a claim under 
        subsection (e), the claim shall be reviewed by a 
        Copyright Claims Attorney to ensure that the claim 
        complies with this chapter and applicable regulations, 
        subject to the following:
                  (A) If the claim is found to comply, the 
                claimant shall be notified regarding that 
                compliance and instructed to proceed with 
                service of the claim under subsection (g).
                  (B) If the claim is found not to comply, the 
                claimant shall be notified that the claim is 
                deficient and be permitted to file an amended 
                claim not later than 30 days after the date on 
                which the claimant receives the notice, without 
                the requirement of an additional filing fee. If 
                the claimant files a compliant claim within 
                that 30-day period, the claimant shall be so 
                notified and be instructed to proceed with 
                service of the claim. If the claim is refiled 
                within that 30-day period and still fails to 
                comply, the claimant shall again be notified 
                that the claim is deficient and shall be 
                provided a second opportunity to amend the 
                claim within 30 days after the date of that 
                second notice, without the requirement of an 
                additional filing fee. If the claim is refiled 
                again within that second 30-day period and is 
                compliant, the claimant shall be so notified 
                and shall be instructed to proceed with service 
                of the claim, but if the claim still fails to 
                comply, upon confirmation of such noncompliance 
                by a Copyright Claims Officer, the proceeding 
                shall be dismissed without prejudice. The 
                Copyright Claims Board shall also dismiss 
                without prejudice any proceeding in which a 
                compliant claim is not filed within the 
                applicable 30-day period.
                  (C)(i) Subject to clause (ii), for purposes 
                of this paragraph, a claim against an online 
                service provider for infringement by reason of 
                the storage of or referral or linking to 
                infringing material that may be subject to the 
                limitations on liability set forth in 
                subsection (b), (c), or (d) of section 512 
                shall be considered noncompliant unless the 
                claimant affirms in the statement required 
                under subsection (e)(1) of this section that 
                the claimant has previously notified the 
                service provider of the claimed infringement in 
                accordance with subsection (b)(2)(E), (c)(3), 
                or (d)(3) of section 512, as applicable, and 
                the service provider failed to remove or 
                disable access to the material expeditiously 
                upon the provision of such notice.
                  (ii) If a claim is found to be noncompliant 
                under clause (i), the Copyright Claims Board 
                shall provide the claimant with information 
                concerning the service of such a notice under 
                the applicable provision of section 512.
          (2) Counterclaims.--Upon the filing and service of a 
        counterclaim, the counterclaim shall be reviewed by a 
        Copyright Claims Attorney to ensure that the 
        counterclaim complies with the provisions of this 
        chapter and applicable regulations. If the counterclaim 
        is found not to comply, the counterclaimant and the 
        other parties to the proceeding shall be notified that 
        the counterclaim is deficient, and the counterclaimant 
        shall be permitted to file and serve an amended 
        counterclaim within 30 days after the date of such 
        notice. If the counterclaimant files and serves a 
        compliant counterclaim within that 30-day period, the 
        counterclaimant and such other parties shall be so 
        notified. If the counterclaim is refiled and served 
        within that 30-day period but still fails to comply, 
        the counterclaimant and such other parties shall again 
        be notified that the counterclaim is deficient, and the 
        counterclaimant shall be provided a second opportunity 
        to amend the counterclaim within 30 days after the date 
        of the second notice. If the counterclaim is refiled 
        and served again within that second 30-day period and 
        is compliant, the counterclaimant and such other 
        parties shall be so notified, but if the counterclaim 
        still fails to comply, upon confirmation of such 
        noncompliance by a Copyright Claims Officer, the 
        counterclaim, but not the proceeding, shall be 
        dismissed without prejudice.
          (3) Dismissal for unsuitability.--The Copyright 
        Claims Board shall dismiss a claim or counterclaim 
        without prejudice if, upon reviewing the claim or 
        counterclaim, or at any other time in the proceeding, 
        the Copyright Claims Board concludes that the claim or 
        counterclaim is unsuitable for determination by the 
        Copyright Claims Board, including on account of any of 
        the following:
                  (A) The failure to join a necessary party.
                  (B) The lack of an essential witness, 
                evidence, or expert testimony.
                  (C) The determination of a relevant issue of 
                law or fact that could exceed either the number 
                of proceedings the Copyright Claims Board could 
                reasonably administer or the subject matter 
                competence of the Copyright Claims Board.
  (g) Service of Notice and Claims.--In order to proceed with a 
claim against a respondent, a claimant shall, within 90 days 
after receiving notification under subsection (f) to proceed 
with service, file with the Copyright Claims Board proof of 
service on the respondent. In order to effectuate service on a 
respondent, the claimant shall cause notice of the proceeding 
and a copy of the claim to be served on the respondent, either 
by personal service or pursuant to a waiver of personal 
service, as prescribed in regulations established by the 
Register of Copyrights. Such regulations shall include the 
following requirements:
          (1) The notice of the proceeding shall adhere to a 
        prescribed form and shall set forth the nature of the 
        Copyright Claims Board and proceeding, the right of the 
        respondent to opt out, and the consequences of opting 
        out and not opting out, including a prominent statement 
        that, by not opting out within 60 days after receiving 
        the notice, the respondent--
                  (A) loses the opportunity to have the dispute 
                decided by a court created under article III of 
                the Constitution of the United States; and
                  (B) waives the right to a jury trial 
                regarding the dispute.
          (2) The copy of the claim served on the respondent 
        shall be the same as the claim that was filed with the 
        Copyright Claims Board.
          (3) Personal service of a notice and claim may be 
        effected by an individual who is not a party to the 
        proceeding and is older than 18 years of age.
          (4) An individual, other than a minor or incompetent 
        individual, may be served by--
                  (A) complying with State law for serving a 
                summons in an action brought in courts of 
                general jurisdiction in the State where service 
                is made;
                  (B) delivering a copy of the notice and claim 
                to the individual personally;
                  (C) leaving a copy of the notice and claim at 
                the individual's dwelling or usual place of 
                abode with someone of suitable age and 
                discretion who resides there; or
                  (D) delivering a copy of the notice and claim 
                to an agent designated by the respondent to 
                receive service of process or, if not so 
                designated, an agent authorized by appointment 
                or by law to receive service of process.
          (5)(A) A corporation, partnership, or unincorporated 
        association that is subject to suit in courts of 
        general jurisdiction under a common name shall be 
        served by delivering a copy of the notice and claim to 
        its service agent. If such service agent has not been 
        designated, service shall be accomplished--
                  (i) by complying with State law for serving a 
                summons in an action brought in courts of 
                general jurisdiction in the State where service 
                is made; or
                  (ii) by delivering a copy of the notice and 
                claim to an officer, a managing or general 
                agent, or any other agent authorized by 
                appointment or by law to receive service of 
                process in an action brought in courts of 
                general jurisdiction in the State where service 
                is made and, if the agent is one authorized by 
                statute and the statute so requires, by also 
                mailing a copy of the notice and claim to the 
                respondent.
          (B) A corporation, partnership or unincorporated 
        association that is subject to suit in courts of 
        general jurisdiction under a common name may elect to 
        designate a service agent to receive notice of a claim 
        against it before the Copyright Claims Board by 
        complying with requirements that the Register of 
        Copyrights shall establish by regulation. The Register 
        of Copyrights shall maintain a current directory of 
        service agents that is available to the public for 
        inspection, including through the internet, and may 
        require such corporations, partnerships, and 
        unincorporated associations designating such service 
        agents to pay a fee to cover the costs of maintaining 
        the directory.
          (6) In order to request a waiver of personal service, 
        the claimant may notify a respondent, by first class 
        mail or by other reasonable means, that a proceeding 
        has been commenced, such notice to be made in 
        accordance with regulations established by the Register 
        of Copyrights, subject to the following:
                  (A) Any such request shall be in writing, 
                shall be addressed to the respondent, and shall 
                be accompanied by a prescribed notice of the 
                proceeding, a copy of the claim as filed with 
                the Copyright Claims Board, a prescribed form 
                for waiver of personal service, and a prepaid 
                or other means of returning the form without 
                cost.
                  (B) The request shall state the date on which 
                the request is sent, and shall provide the 
                respondent a period of 30 days, beginning on 
                the date on which the request is sent, to 
                return the waiver form signed by the 
                respondent. The signed waiver form shall, for 
                purposes of this subsection, constitute 
                acceptance and proof of service as of the date 
                on which the waiver is signed.
          (7)(A) A respondent's waiver of personal service 
        shall not constitute a waiver of the respondent's right 
        to opt out of the proceeding.
          (B) A respondent who timely waives personal service 
        under paragraph (6) and does not opt out of the 
        proceeding shall be permitted a period of 30 days, in 
        addition to the period otherwise permitted under the 
        applicable procedures of the Copyright Claims Board, to 
        submit a substantive response to the claim, including 
        any defenses and counterclaims.
          (8) A minor or an incompetent individual may only be 
        served by complying with State law for serving a 
        summons or like process on such an individual in an 
        action brought in the courts of general jurisdiction of 
        the State where service is made.
          (9) Service of a claim and waiver of personal service 
        may only be effected within the United States.
  (h) Notification by Copyright Claims Board.--The Register of 
Copyrights shall establish regulations providing for a written 
notification to be sent by, or on behalf of, the Copyright 
Claims Board to notify the respondent of a pending proceeding 
against the respondent, as set forth in those regulations, 
which shall--
          (1) include information concerning the respondent's 
        right to opt out of the proceeding, the consequences of 
        opting out and not opting out, and a prominent 
        statement that, by not opting out within 60 days after 
        the date of service under subsection (g), the 
        respondent loses the opportunity to have the dispute 
        decided by a court created under article III of the 
        Constitution of the United States and waives the right 
        to a jury trial regarding the dispute; and
          (2) be in addition to, and separate and apart from, 
        the notice requirements under subsection (g).
  (i) Opt-out Procedure.--Upon being properly served with a 
notice and claim, a respondent who chooses to opt out of the 
proceeding shall have a period of 60 days, beginning on the 
date of service, in which to provide written notice of such 
choice to the Copyright Claims Board, in accordance with 
regulations established by the Register of Copyrights. If proof 
of service has been filed by the claimant and the respondent 
does not submit an opt-out notice to the Copyright Claims Board 
within that 60-day period, the proceeding shall be deemed an 
active proceeding and the respondent shall be bound by the 
determination in the proceeding to the extent provided under 
section 1507(a). If the respondent opts out of the proceeding 
during that 60-day period, the proceeding shall be dismissed 
without prejudice, except that, in exceptional circumstances 
and upon written notice to the claimant, the Copyright Claims 
Board may extend that 60-day period in the interests of 
justice.
  (j) Service of Other Documents.--Documents submitted or 
relied upon in a proceeding, other than the notice and claim, 
shall be served in accordance with regulations established by 
the Register of Copyrights.
  (k) Scheduling.--Upon confirmation that a proceeding has 
become an active proceeding, the Copyright Claims Board shall 
issue a schedule for the future conduct of the proceeding. The 
schedule shall not specify a time that a claimant or 
counterclaimant is required make an election of damages that is 
inconsistent with section 1504(e). A schedule issued by the 
Copyright Claims Board may be amended by the Copyright Claims 
Board in the interests of justice.
  (l) Conferences.--One or more Copyright Claims Officers may 
hold a conference to address case management or discovery 
issues in a proceeding, which shall be noted upon the record of 
the proceeding and may be recorded or transcribed.
  (m) Party Submissions.--A proceeding of the Copyright Claims 
Board may not include any formal motion practice, except that, 
subject to applicable regulations and procedures of the 
Copyright Claims Board--
          (1) the parties to the proceeding may make requests 
        to the Copyright Claims Board to address case 
        management and discovery matters, and submit responses 
        thereto; and
          (2) the Copyright Claims Board may request or permit 
        parties to make submissions addressing relevant 
        questions of fact or law, or other matters, including 
        matters raised sua sponte by the Copyright Claims 
        Officers, and offer responses thereto.
  (n) Discovery.--Discovery in a proceeding shall be limited to 
the production of relevant information and documents, written 
interrogatories, and written requests for admission, as 
provided in regulations established by the Register of 
Copyrights, except that--
          (1) upon the request of a party, and for good cause 
        shown, the Copyright Claims Board may approve 
        additional relevant discovery, on a limited basis, in 
        particular matters, and may request specific 
        information and documents from participants in the 
        proceeding and voluntary submissions from 
        nonparticipants, consistent with the interests of 
        justice;
          (2) upon the request of a party, and for good cause 
        shown, the Copyright Claims Board may issue a 
        protective order to limit the disclosure of documents 
        or testimony that contain confidential information; and
          (3) after providing notice and an opportunity to 
        respond, and upon good cause shown, the Copyright 
        Claims Board may apply an adverse inference with 
        respect to disputed facts against a party who has 
        failed to timely provide discovery materials in 
        response to a proper request for materials that could 
        be relevant to such facts.
  (o) Evidence.--The Copyright Claims Board may consider the 
following types of evidence in a proceeding, and such evidence 
may be admitted without application of formal rules of 
evidence:
          (1) Documentary and other nontestimonial evidence 
        that is relevant to the claims, counterclaims, or 
        defenses in the proceeding.
          (2) Testimonial evidence, submitted under penalty of 
        perjury in written form or in accordance with 
        subsection (p), limited to statements of the parties 
        and nonexpert witnesses, that is relevant to the 
        claims, counterclaims, and defenses in a proceeding, 
        except that, in exceptional cases, expert witness 
        testimony or other types of testimony may be permitted 
        by the Copyright Claims Board for good cause shown.
  (p) Hearings.--The Copyright Claims Board may conduct a 
hearing to receive oral presentations on issues of fact or law 
from parties and witnesses to a proceeding, including oral 
testimony, subject to the following:
          (1) Any such hearing shall be attended by not fewer 
        than two of the Copyright Claims Officers.
          (2) The hearing shall be noted upon the record of the 
        proceeding and, subject to paragraph (3), may be 
        recorded or transcribed as deemed necessary by the 
        Copyright Claims Board.
          (3) A recording or transcript of the hearing shall be 
        made available to any Copyright Claims Officer who is 
        not in attendance.
  (q) Voluntary Dismissal.--
          (1) By claimant.--Upon the written request of a 
        claimant that is received before a respondent files a 
        response to the claim in a proceeding, the Copyright 
        Claims Board shall dismiss the proceeding, or a claim 
        or respondent, as requested, without prejudice.
          (2) By counterclaimant.--Upon written request of a 
        counterclaimant that is received before a claimant 
        files a response to the counterclaim, the Copyright 
        Claims Board shall dismiss the counterclaim, such 
        dismissal to be without prejudice.
          (3) Class actions.--Any party in an active proceeding 
        before the Copyright Claims Board who receives notice 
        of a pending or putative class action, arising out of 
        the same transaction or occurrence, in which that party 
        is a class member may request in writing dismissal of 
        the proceeding before the Board. Upon notice to all 
        claimants and counterclaimants, the Copyright Claims 
        Board shall dismiss the proceeding without prejudice.
  (r) Settlement.--
          (1) In general.--At any time in an active proceeding, 
        some or all of the parties may--
                  (A) jointly request a conference with a 
                Copyright Claims Officer for the purpose of 
                facilitating settlement discussions; or
                  (B) submit to the Copyright Claims Board an 
                agreement providing for settlement and 
                dismissal of some or all of the claims and 
                counterclaims in the proceeding.
          (2) Additional request.--A submission under paragraph 
        (1)(B) may include a request that the Copyright Claims 
        Board adopt some or all of the terms of the parties' 
        settlement in a final determination in the proceeding.
  (s) Factual Findings.--Subject to subsection (n)(3), the 
Copyright Claims Board shall make factual findings based upon a 
preponderance of the evidence.
  (t) Determinations.--
          (1) Nature and contents.--A determination rendered by 
        the Copyright Claims Board in a proceeding shall--
                  (A) be reached by a majority of the Copyright 
                Claims Board;
                  (B) be in writing, and include an explanation 
                of the factual and legal basis of the 
                determination;
                  (C) set forth any terms by which a respondent 
                or counterclaim respondent has agreed to cease 
                infringing activity under section 1504(e)(2);
                  (D) to the extent requested under subsection 
                (r)(2), set forth the terms of any settlement 
                agreed to under subsection (r)(1); and
                  (E) include a clear statement of all damages 
                and other relief awarded, including under 
                subparagraphs (C) and (D).
          (2) Dissent.--A Copyright Claims Officer who dissents 
        from a decision contained in a determination under 
        paragraph (1) may append a statement setting forth the 
        grounds for that dissent.
          (3) Publication.--Each final determination of the 
        Copyright Claims Board shall be made available on a 
        publicly accessible website. The Register shall 
        establish regulations with respect to the publication 
        of other records and information relating to such 
        determinations, including the redaction of records to 
        protect confidential information that is the subject of 
        a protective order under subsection (n)(2).
          (4) Freedom of information act.--All information 
        relating to proceedings of the Copyright Claims Board 
        under this title is exempt from disclosure to the 
        public under section 552(b)(3) of title 5, except for 
        determinations, records, and information published 
        under paragraph (3).
  (u) Respondent's Default.--If a proceeding has been deemed an 
active proceeding but the respondent has failed to appear or 
has ceased participating in the proceeding, as demonstrated by 
the respondent's failure, without justifiable cause, to meet 
one or more deadlines or requirements set forth in the schedule 
adopted by the Copyright Claims Board under subsection (k), the 
Copyright Claims Board may enter a default determination, 
including the dismissal of any counterclaim asserted by the 
respondent, as follows and in accordance with such other 
requirements as the Register of Copyrights may establish by 
regulation:
          (1) The Copyright Claims Board shall require the 
        claimant to submit relevant evidence and other 
        information in support of the claimant's claim and any 
        asserted damages and, upon review of such evidence and 
        any other requested submissions from the claimant, 
        shall determine whether the materials so submitted are 
        sufficient to support a finding in favor of the 
        claimant under applicable law and, if so, the 
        appropriate relief and damages, if any, to be awarded.
          (2) If the Copyright Claims Board makes an 
        affirmative determination under paragraph (1), the 
        Copyright Claims Board shall prepare a proposed default 
        determination, and shall provide written notice to the 
        respondent at all addresses, including email addresses, 
        reflected in the records of the proceeding before the 
        Copyright Claims Board, of the pendency of a default 
        determination by the Copyright Claims Board and of the 
        legal significance of such determination. Such notice 
        shall be accompanied by the proposed default 
        determination and shall provide that the respondent has 
        a period of 30 days, beginning on the date of the 
        notice, to submit any evidence or other information in 
        opposition to the proposed default determination.
          (3) If the respondent responds to the notice provided 
        under paragraph (2) within the 30-day period provided 
        in such paragraph, the Copyright Claims Board shall 
        consider respondent's submissions and, after allowing 
        the other parties to address such submissions, 
        maintain, or amend its proposed determination as 
        appropriate, and the resulting determination shall not 
        be a default determination.
          (4) If the respondent fails to respond to the notice 
        provided under paragraph (2), the Copyright Claims 
        Board shall proceed to issue the default determination 
        as a final determination. Thereafter, the respondent 
        may only challenge such determination to the extent 
        permitted under section 1508(c), except that, before 
        any additional proceedings are initiated under section 
        1508, the Copyright Claims Board may, in the interests 
        of justice, vacate the default determination.
  (v) Claimant's Failure to Proceed.--
          (1) Failure to complete service.--If a claimant fails 
        to complete service on a respondent within the 90-day 
        period required under subsection (g), the Copyright 
        Claims Board shall dismiss that respondent from the 
        proceeding without prejudice. If a claimant fails to 
        complete service on all respondents within that 90-day 
        period, the Copyright Claims Board shall dismiss the 
        proceeding without prejudice.
          (2) Failure to prosecute.--If a claimant fails to 
        proceed in an active proceeding, as demonstrated by the 
        claimant's failure, without justifiable cause, to meet 
        one or more deadlines or requirements set forth in the 
        schedule adopted by the Copyright Claims Board under 
        subsection (k), the Copyright Claims Board may, upon 
        providing written notice to the claimant and a period 
        of 30 days, beginning on the date of the notice, to 
        respond to the notice, and after considering any such 
        response, issue a determination dismissing the 
        claimants' claims, which shall include an award of 
        attorneys' fees and costs, if appropriate, under 
        subsection (y)(2). Thereafter, the claimant may only 
        challenge such determination to the extent permitted 
        under section 1508(c), except that, before any 
        additional proceedings are initiated under section 
        1508, the Copyright Claims Board may, in the interests 
        of justice, vacate the determination of dismissal.
  (w) Request for Reconsideration.--A party may, within 30 days 
after the date on which the Copyright Claims Board issues a 
final determination in a proceeding under this chapter, submit 
a written request for reconsideration of, or an amendment to, 
such determination if the party identifies a clear error of law 
or fact material to the outcome, or a technical mistake. After 
providing the other parties an opportunity to address such 
request, the Copyright Claims Board shall either deny the 
request or issue an amended final determination.
  (x) Review by Register.--If the Copyright Claims Board denies 
a party a request for reconsideration of a final determination 
under subsection (w), that party may, within 30 days after the 
date of such denial, request review of the final determination 
by the Register of Copyrights in accordance with regulations 
established by the Register. Such request shall be accompanied 
by a reasonable filing fee, as provided in such regulations. 
The review by the Register shall be limited to consideration of 
whether the Copyright Claims Board abused its discretion in 
denying reconsideration of the determination. After providing 
the other parties an opportunity to address the request, the 
Register shall either deny the request for review, or remand 
the proceeding to the Copyright Claims Board for 
reconsideration of issues specified in the remand and for 
issuance of an amended final determination. Such amended final 
determination shall not be subject to further consideration or 
review, other than under section 1508(c).
  (y) Conduct of Parties and Attorneys.--
          (1) Certification.--The Register of Copyrights shall 
        establish regulations requiring certification of the 
        accuracy and truthfulness of statements made by 
        participants in proceedings before the Copyright Claims 
        Board.
          (2) Bad faith conduct.--Notwithstanding any other 
        provision of law, in any proceeding in which a 
        determination is rendered and it is established that a 
        party pursued a claim, counterclaim, or defense for a 
        harassing or other improper purpose, or without a 
        reasonable basis in law or fact, then, unless 
        inconsistent with the interests of justice, the 
        Copyright Claims Board shall in such determination 
        award reasonable costs and attorneys' fees to any 
        adversely affected party of in an amount of not more 
        than $5,000, except that--
                  (A) if an adversely affected party appeared 
                pro se in the proceeding, the award to that 
                party shall be for costs only, in an amount of 
                not more than $2,500; and
                  (B) in extraordinary circumstances, such as 
                where a party has demonstrated a pattern or 
                practice of bad faith conduct as described in 
                this paragraph, the Copyright Claims Board may, 
                in the interests of justice, award costs and 
                attorneys' fees in excess of the limitations 
                under this paragraph.
          (3) Additional penalty.--If the Board finds that on 
        more than one occasion within a 12-month period a party 
        pursued a claim, counterclaim, or defense before the 
        Copyright Claims Board for a harassing or other 
        improper purpose, or without a reasonable basis in law 
        or fact, that party shall be barred from initiating a 
        claim before the Copyright Claims Board under this 
        chapter for a period of 12 months beginning on the date 
        on which the Board makes such a finding. Any proceeding 
        commenced by that party that is still pending before 
        the Board when such a finding is made shall be 
        dismissed without prejudice, except that if a 
        proceeding has been deemed active under subsection (i), 
        the proceeding shall be dismissed under this paragraph 
        only if the respondent provides written consent 
        thereto.
  (z) Regulations for Smaller Claims.--The Register of 
Copyrights shall establish regulations to provide for the 
consideration and determination, by at least one Copyright 
Claims Officer, of any claim under this chapter in which total 
damages sought do not exceed $5,000 (exclusive of attorneys' 
fees and costs) that are otherwise consistent with this 
chapter. A determination issued under this subsection shall 
have the same effect as a determination issued by the entire 
Copyright Claims Board.

Sec. 1507. Effect of proceeding

  (a) Determination.--Subject to the reconsideration and review 
processes provided under subsections (w) and (x) of section 
1506 and section 1508(c), the issuance of a final determination 
by the Copyright Claims Board in a proceeding, including a 
default determination or determination based on a failure to 
prosecute, shall, solely with respect to the parties to such 
determination, preclude relitigation before any court or 
tribunal, or before the Copyright Claims Board, of the claims 
and counterclaims asserted and finally determined by the Board, 
and may be relied upon for such purpose in a future action or 
proceeding arising from the same specific activity or 
activities, subject to the following:
          (1) A determination of the Copyright Claims Board 
        shall not preclude litigation or relitigation as 
        between the same or different parties before any court 
        or tribunal, or the Copyright Claims Board, of the same 
        or similar issues of fact or law in connection with 
        claims or counterclaims not asserted or not finally 
        determined by the Copyright Claims Board.
          (2) A determination of ownership of a copyrighted 
        work for purposes of resolving a matter before the 
        Copyright Claims Board may not be relied upon, and 
        shall not have any preclusive effect, in any other 
        action or proceeding before any court or tribunal, 
        including the Copyright Claims Board.
          (3) Except to the extent permitted under this 
        subsection and section 1508, any determination of the 
        Copyright Claims Board may not be cited or relied upon 
        as legal precedent in any other action or proceeding 
        before any court or tribunal, including the Copyright 
        Claims Board.
  (b) Class Actions Not Affected.--
          (1) In general.--A proceeding before the Copyright 
        Claims Board shall not have any effect on a class 
        action proceeding in a district court of the United 
        States, and section 1509(a) shall not apply to a class 
        action proceeding in a district court of the United 
        States.
          (2) Notice of class action.--Any party to an active 
        proceeding before the Copyright Claims Board who 
        receives notice of a pending class action, arising out 
        of the same transaction or occurrence as the proceeding 
        before the Copyright Claims Board, in which the party 
        is a class member shall either--
                  (A) opt out of the class action, in 
                accordance with regulations established by the 
                Register of Copyrights; or
                  (B) seek dismissal under section 1506(q)(3) 
                of the proceeding before the Copyright Claims 
                Board.
  (c) Other Materials in Proceeding.--Except as permitted under 
this section and section 1508, a submission or statement of a 
party or witness made in connection with a proceeding before 
the Copyright Claims Board, including a proceeding that is 
dismissed, may not be cited or relied upon in, or serve as the 
basis of, any action or proceeding concerning rights or 
limitations on rights under this title before any court or 
tribunal, including the Copyright Claims Board.
  (d) Applicability of Section 512(g).--A claim or counterclaim 
before the Copyright Claims Board that is brought under 
subsection (c)(1) or (c)(4) of section 1504, or brought under 
subsection (c)(6) of section 1504 and that relates to a claim 
under subsection (c)(1) or (c)(4) of such section, qualifies as 
an action seeking an order to restrain a subscriber from 
engaging in infringing activity under section 512(g)(2)(C) if--
          (1) notice of the commencement of the Copyright 
        Claims Board proceeding is provided by the claimant to 
        the service provider's designated agent before the 
        service provider replaces the material following 
        receipt of a counter notification under section 512(g); 
        and
          (2) the claim brought alleges infringement of the 
        material identified in the notification of claimed 
        infringement under section 512(c)(1)(C).
  (e) Failure to Assert Counterclaim.--The failure or inability 
to assert a counterclaim in a proceeding before the Copyright 
Claims Board shall not preclude the assertion of that 
counterclaim in a subsequent court action or proceeding before 
the Copyright Claims Board.
  (f) Opt-Out or Dismissal of Party.--If a party has timely 
opted out of a proceeding under section 1506(i) or is dismissed 
from a proceeding before the Copyright Claims Board issues a 
final determination in the proceeding, the determination shall 
not be binding upon and shall have no preclusive effect with 
respect to that party.

Sec. 1508. Review and confirmation by district court

  (a) In General.--In any proceeding in which a party has 
failed to pay damages, or has failed otherwise to comply with 
the relief, awarded in a final determination of the Copyright 
Claims Board, including a default determination or a 
determination based on a failure to prosecute, the aggrieved 
party may, not later than 1 year after the date on which the 
final determination is issued, any reconsideration by the 
Copyright Claims Board or review by the Register of Copyrights 
is resolved, or an amended final determination is issued, 
whichever occurs last, apply to the United States District 
Court for the District of Columbia or any other appropriate 
district court of the United States for an order confirming the 
relief awarded in the final determination and reducing such 
award to judgment. The court shall grant such order and direct 
entry of judgment unless the determination is or has been 
vacated, modified, or corrected under subsection (c). If the 
United States District Court for the District of Columbia or 
other district court of the United States, as the case may be, 
issues an order confirming the relief awarded by the Copyright 
Claims Board, the court shall impose on the party who failed to 
pay damages or otherwise comply with the relief, the reasonable 
expenses required to secure such order, including attorneys' 
fees, that were incurred by the aggrieved party.
  (b) Filing Procedures.--
          (1) Application to confirm determination.--Notice of 
        the application under subsection (a) for confirmation 
        of a determination of the Copyright Claims Board and 
        entry of judgment shall be provided to all parties to 
        the proceeding before the Copyright Claims Board that 
        resulted in the determination, in accordance with the 
        procedures applicable to service of a motion in the 
        district court of the United States where the 
        application is made.
          (2) Contents of application.--The application shall 
        include the following:
                  (A) A certified copy of the final or amended 
                final determination of the Copyright Claims 
                Board, as reflected in the records of the 
                Copyright Claims Board, following any process 
                of reconsideration or review by the Register of 
                Copyrights, to be confirmed and rendered to 
                judgment.
                  (B) A declaration by the applicant, under 
                penalty of perjury--
                          (i) that the copy is a true and 
                        correct copy of such determination;
                          (ii) stating the date it was issued;
                          (iii) stating the basis for the 
                        challenge under subsection (c)(1); and
                          (iv) stating whether the applicant is 
                        aware of any other proceedings before 
                        the court concerning the same 
                        determination of the Copyright Claims 
                        Board.
  (c) Challenges to the Determination.--
          (1) Bases for challenge.--Not later than 90 days 
        after the date on which Copyright Claims Board issues a 
        final or amended final determination in a proceeding, 
        or not later than 90 days after the date on which the 
        Register of Copyrights completes any process of 
        reconsideration or review of the determination, 
        whichever occurs later, a party may seek a court order 
        vacating, modifying, or correcting the determination of 
        the Copyright Claims Board in the following cases:
                  (A) If the determination was issued as a 
                result of fraud, corruption, misrepresentation, 
                or other misconduct.
                  (B) If the Copyright Claims Board exceeded 
                its authority or failed to render a final 
                determination concerning the subject matter at 
                issue.
                  (C) In the case of a default determination or 
                determination based on a failure to prosecute, 
                if it is established that the default or 
                failure was due to excusable neglect.
          (2) Procedure to challenge.--
                  (A) Notice of application.--Notice of the 
                application to challenge a determination of the 
                Copyright Claims Board shall be provided to all 
                parties to the proceeding before the Copyright 
                Claims Board, in accordance with the procedures 
                applicable to service of a motion in the court 
                where the application is made.
                  (B) Staying of proceedings.--For purposes of 
                an application under this subsection, any judge 
                who is authorized to issue an order to stay the 
                proceedings in an any other action brought in 
                the same court may issue an order, to be served 
                with the notice of application, staying 
                proceedings to enforce the award while the 
                challenge is pending.

Sec. 1509. Relationship to other district court actions

  (a) Stay of District Court Proceedings.--Subject to section 
1507(b), a district court of the United States shall issue a 
stay of proceedings or such other relief as the court 
determines appropriate with respect to any claim brought before 
the court that is already the subject of a pending or active 
proceeding before the Copyright Claims Board.
  (b) Alternative Dispute Resolution Process.--A proceeding 
before the Copyright Claims Board under this chapter shall 
qualify as an alternative dispute resolution process under 
section 651 of title 28 for purposes of referral of eligible 
cases by district courts of the United States upon the consent 
of the parties.

Sec. 1510. Implementation by Copyright Office

  (a) Regulations.--
          (1) Implementation generally.--The Register of 
        Copyrights shall establish regulations to carry out 
        this chapter. Such regulations shall include the fees 
        prescribed under subsections (e) and (x) of section 
        1506. The authority to issue such fees shall not limit 
        the authority of the Register of Copyrights to 
        establish fees for services under section 708. All fees 
        received by the Copyright Office in connection with the 
        activities under this chapter shall be deposited by the 
        Register of Copyrights and credited to the 
        appropriations for necessary expenses of the Office in 
        accordance with section 708(d). In establishing 
        regulations under this subsection, the Register of 
        Copyrights shall provide for the efficient 
        administration of the Copyright Claims Board, and for 
        the ability of the Copyright Claims Board to timely 
        complete proceedings instituted under this chapter, 
        including by implementing mechanisms to prevent 
        harassing or improper use of the Copyright Claims Board 
        by any party.
          (2) Limits on monetary relief.--
                  (A) In general.--Subject to subparagraph (B), 
                not earlier than 3 years after the date on 
                which Copyright Claims Board issues the first 
                determination of the Copyright Claims Board, 
                the Register of Copyrights may, in order to 
                further the goals of the Copyright Claims 
                Board, conduct a rulemaking to adjust the 
                limits on monetary recovery or attorneys' fees 
                and costs that may be awarded under this 
                chapter.
                  (B) Effective date of adjustment.--Any rule 
                under subparagraph (A) that makes an adjustment 
                shall take effect at the end of the 120-day 
                period beginning on the date on which the 
                Register of Copyrights submits the rule to 
                Congress and only if Congress does not, during 
                that 120-day period, enact a law that provides 
                in substance that Congress does not approve the 
                rule.
  (b) Necessary Facilities.--Subject to applicable law, the 
Register of Copyrights may retain outside vendors to establish 
internet-based, teleconferencing, and other facilities required 
to operate the Copyright Claims Board.
  (c) Fees.--Any filing fees, including the fee to commence a 
proceeding under section 1506(e), shall be prescribed in 
regulations established by the Register of Copyrights. The sum 
total of such filing fees shall be in an amount of at least 
$100, may not exceed the cost of filing an action in a district 
court of the United States, and shall be fixed in amounts that 
further the goals of the Copyright Claims Board.

Sec. 1511. Funding

  There are authorized to be appropriated such sums as may be 
necessary to pay the costs incurred by the Copyright Office 
under this chapter that are not covered by fees collected for 
services rendered under this chapter, including the costs of 
establishing and maintaining the Copyright Claims Board and its 
facilities.

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