Text: H.R.3204 — 102nd Congress (1991-1992)All Information (Except Text)

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HR 3204 IH
102d CONGRESS
1st Session
 H. R. 3204
To amend title 17, United States Code, to implement a royalty payment system
and a serial copy management system for digital audio recording, to prohibit
certain copyright infringement actions, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
August 2, 1991
Mr. BROOKS (for himself and Mr. HUGHES) introduced the following bill; which
was referred jointly to the Committees on the Judiciary, Energy and Commerce,
and Ways and Means
A BILL
To amend title 17, United States Code, to implement a royalty payment system
and a serial copy management system for digital audio recording, to prohibit
certain copyright infringement actions, and for other purposes.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1. SHORT TITLE.
  This Act may be cited as the `Audio Home Recording Act of 1991'.
SEC. 2. IMPORTATION, MANUFACTURE, AND DISTRIBUTION OF DIGITAL AUDIO RECORDING
DEVICES AND MEDIA.
  Title 17, United States Code, is amended by adding at the end the following:
`CHAPTER 10--DIGITAL AUDIO RECORDING DEVICES AND MEDIA
`SUBCHAPTER A--DEFINITIONS, PROHIBITION OF CERTAIN INFRINGEMENT ACTIONS,
AND RULES OF CONSTRUCTION
`Sec.
`1001. Definitions.
`1002. Prohibition on certain infringement actions.
`1003. Effect on other rights and remedies with respect to private home
copying or otherwise.
`SUBCHAPTER B--ROYALTY PAYMENTS
`1011. Obligation to make royalty payments.
`1012. Royalty payments.
`1013. Deposit of royalty payments and deduction of expenses.
`1014. Entitlement to royalty payments.
`1015. Procedures for distributing royalty payments.
`1016. Negotiated collection and distribution arrangements.
`SUBCHAPTER C--THE SERIAL COPY MANAGEMENT SYSTEM
`1021. Incorporation of the serial copy management system.
`1022. Implementing the serial copy management system.
`SUBCHAPTER D--REMEDIES
`1031. Civil remedies.
`1032. Binding arbitration.
`SUBCHAPTER A--DEFINITIONS, PROHIBITION OF CERTAIN INFRINGEMENT ACTIONS,
AND RULES OF CONSTRUCTION
`Sec. 1001. DEFINITIONS
  `As used in this chapter, the following terms and their variant forms mean
  the following:
  `(1) A `digital audio copied recording' is a reproduction in a digital
  recording format of a phonorecord, whether that reproduction is made
  directly from another phonorecord or indirectly from a transmission.
  `(2) A `digital audio interface device' is any machine or device, now
  known or later developed, whether or not included with or as part of some
  other machine or device, that supplies a digital audio signal through
  a nonprofessional interface, as the term `nonprofessional interface' is
  used in the Digital Audio Interface Standard in part I of the technical
  reference document or as otherwise defined by the Secretary of Commerce
  under section 1022(b).
  `(3) A `digital audio recording device' is any machine or device, now known
  or later developed, whether or not included with or as part of some other
  machine or device, the recording function of which is designed or marketed
  for the primary purpose of, and that is capable of, making a digital audio
  copied recording for private use, except for--
  `(A) professional model products, and
  `(B) dictation machines, answering machines, and other audio recording
  equipment that is designed and marketed primarily for the creation of
  sound recordings resulting from the fixation of nonmusical sounds.
  `(4)(A) A `digital audio recording medium' is any material object,
  now known or later developed, in a form commonly distributed for use by
  individuals (such as magnetic digital audio tape cassettes, optical discs,
  and magneto-optical discs), that is primarily marketed or most commonly
  used by consumers for the purpose of making digital audio copied recordings
  by use of a digital audio recording device.
  `(B) Such term does not include any material object--
  `(i) that embodies a sound recording at the time it is first distributed
  by the importer or manufacturer, unless the sound recording has been so
  embodied in order to evade the obligations of section 1011 of this title; or
  `(ii) that is primarily marketed and most commonly used by consumers either
  for the purpose of making copies of motion pictures or other audiovisual
  works or for the purpose of making copies of nonmusical literary works,
  including, without limitation, computer programs or data bases.
  `(5) `Distribute' means to sell, resell, lease, or assign a product to
  consumers in the United States, or to sell, resell, lease, or assign a
  product in the United States for ultimate transfer to consumers in the
  United States.
  `(6) An `interested copyright party' is--
  `(A) the owner of the exclusive right under section 106(1) of this title
  to reproduce a sound recording of a musical work that has been embodied
  in a phonorecord lawfully made under this title that has been distributed
  to the public;
  `(B) the legal or beneficial owner of, or the person that controls, the
  right to reproduce in a phonorecord a musical work that has been embodied
  in a phonorecord lawfully made under this title that has been distributed
  to the public; or
  `(C) any association or other organization--
  `(i) representing persons specified in subparagraph (A) or (B), or
  `(ii) engaged in licensing rights in musical works to music users on behalf
  of writers and publishers.
  `(7) An `interested manufacturing party' is any person that imports or
  manufactures any digital audio recording device or digital audio recording
  medium in the United States, or any association of such persons.
  `(8) `Manufacture' includes the production or assembly of a product in
  the United States.
  `(9) A `music publisher' is a person that is authorized to license the
  reproduction of a particular musical work in a sound recording.
  `(10)(A) A `professional model product' is an audio recording device--
  `(i) that is capable of sending a digital audio interface signal in which
  the channel status block flag is set as a `professional' interface, in
  accordance with the standards and specifications set forth in the technical
  reference document or established under an order issued by the Secretary
  of Commerce under section 1022(b);
  `(ii) that is clearly, prominently, and permanently marked with the letter
  `P' or the word `professional' on the outside of its packaging, and in
  all advertising, promotional, and descriptive literature, with respect
  to the device, that is available or provided to persons other than the
  manufacturer or importer, its employees, or its agents; and
  `(iii) that is designed, manufactured, marketed, and intended for use by
  recording professionals in the ordinary course of a lawful business.
  `(B) In determining whether an audio recording device meets the requirements
  of subparagraph (A)(iii), factors to be considered shall include--
  `(i) whether it has features used by recording professionals in the course
  of a lawful business, including features such as--
  `(I) a data collection and reporting system of error codes during recording
  and playback;
  `(II) a record and reproduce format providing `read after write' and
  `read after read';
  `(III) a time code reader and generator conforming to the standards set
  by the Society of Motion Picture and Television Engineers for such readers
  and generators; and
  `(IV) a professional input/output interface, both digital and analog,
  conforming to standards set by audio engineering organizations for
  connectors, signaling formats, levels, and impedances;
  `(ii) the nature of the promotional materials used to market the audio
  recording device;
  `(iii) the media used for the dissemination of the promotional materials,
  including the intended audience;
  `(iv) the distribution channels and retail outlets through which the device
  is disseminated;
  `(v) the manufacturer's or importer's price for the device as compared to
  the manufacturer's or importer's price for digital audio recording devices
  implementing the Serial Copy Management System;
  `(vi) the relative quantity of the device manufactured or imported as
  compared to the size of the manufacturer's or importer's market for
  professional model products;
  `(vii) the occupations of the purchasers of the device; and
  `(viii) the uses to which the device is put.
  `(11) The `Register' is the Register of Copyrights.
  `(12) The `Serial Copy Management System' means the system for regulating
  serial copying by digital audio recording devices that is set forth in the
  technical reference document or in an order of the Secretary of Commerce
  under section 1022(b), or that conforms to the requirements of section
  1021(a)(1)(C).
  `(13) The `technical reference document' is the document entitled `Technical
  Reference Document for Audio Home Recording Act of 1991,' as such document
  appears in the report of the Committee on the Judiciary to the House of
  Representatives reporting favorably the bill which upon enactment made
  the amendment adding this chapter.
  `(14)(A) The `transfer price' of a digital audio recording device or a
  digital audio recording medium is--
  `(i) in the case of an imported product, the actual entered value at
  United States Customs (exclusive of any freight, insurance, and applicable
  duty), and
  `(ii) in the case of a domestic product, the manufacturer's transfer price
  (FOB the manufacturer, and exclusive of any direct sales taxes or excise
  taxes incurred in connection with the sale).
  `(B) Where the transferor and transferee are related entities or within
  a single entity, the transfer price shall not be less than a reasonable
  arms-length price under the principles of the regulations adopted pursuant
  to section 482 of the Internal Revenue Code of 1986, or any successor
  provision to such section 482.
  `(15) A `transmission' is any audio or audiovisual transmission, now
  known or later developed, whether by a broadcast station, cable system,
  multipoint distribution service, subscription service, direct broadcast
  satellite, or other form of analog or digital communication.
  `(16) The `Tribunal' is the Copyright Royalty Tribunal.
  `(17) A `writer' is the composer or lyricist of a particular musical work.
  `(18) The terms `analog format', `copyright status', `category code',
  `generation status', and `source material', mean those terms as they are
  used in the technical reference document.
`Sec. 1002. Prohibition on certain infringement actions
  `(a) CERTAIN ACTIONS PROHIBITED-
  `(1) GENERALLY- No action may be brought under this title, or under section
  337 of the Tariff Act of 1930, alleging infringement of copyright based on
  the manufacture, importation, or distribution of a digital audio recording
  device or a digital audio recording medium, or an analog audio recording
  device or analog audio recording medium, or the use of such a device or
  medium for making phonorecords. However, this subsection does not apply
  with respect to any claim against a person for infringement by virtue of
  the making of one or more copies or phonorecords for direct or indirect
  commercial advantage.
  `(2) EXAMPLE- For purposes of this section, the copying of a phonorecord
  by a consumer for private, noncommercial use is not for direct or indirect
  commercial advantage, and is therefore not actionable.
  `(b) EFFECT OF THIS SECTION- Nothing in this section shall be construed
  to create or expand a cause of action for copyright infringement except
  to the extent such a cause of action otherwise exists under other chapters
  of this title or under section 337 of the Tariff Act of 1930, or to limit
  any defenses that may be available to such causes of action.
`Sec. 1003. Effect on other rights and remedies with respect to private home
copying or otherwise
  `Except as expressly provided in this chapter with respect to audio
  recording devices and media, neither the enactment of this chapter nor
  anything contained in this chapter shall be construed to expand, limit,
  or otherwise affect the rights of any person with respect to private home
  copying of copyrighted works, or to expand, limit, create, or otherwise
  affect any other right or remedy that may be held by or available to any
  person under chapters 1 through 9 of this title.
`SUBCHAPTER B--ROYALTY PAYMENTS
`Sec. 1011. Obligation to make royalty payments
  `(a) PROHIBITION ON IMPORTATION AND MANUFACTURE- No person shall import
  into and distribute in the United States, or manufacture and distribute
  in the United States, any digital audio recording device or digital audio
  recording medium unless such person--
  `(1) records the notice specified by this section and subsequently deposits
  the statements of account and applicable royalty payments for such device
  or medium specified by this section and section 1012 of this title, or
  `(2) complies with the applicable notice, statement of account, and payment
  obligations under a negotiated arrangement authorized pursuant to section
  1016 of this title.
  `(b) FILING OF NOTICE-
  `(1) GENERALLY- The importer or manufacturer of any digital audio recording
  device or digital audio recording medium, within a product category or
  utilizing a technology with respect to which such manufacturer or importer
  has not previously filed a notice under this subsection, shall file a
  notice with the Register, no later than 45 days after the commencement
  of the first distribution in the United States of such device or medium,
  in such form as the Register shall prescribe by regulation.
  `(2) CONTENTS- Such notice shall--
  `(A) set forth the manufacturer's or importer's identity and address,
  `(B) identify such product category and technology, and
  `(C) identify any trade or business names, trademarks, or like indicia
  of origin that the importer or manufacturer uses or intends to use in
  connection with the importation, manufacture, or distribution of such
  device or medium in the United States.
  `(c) FILING OF QUARTERLY STATEMENTS OF ACCOUNT-
  `(1) GENERALLY- Any importer or manufacturer that distributed during a
  given quarter any digital audio recording device or digital audio recording
  medium that it manufactured or imported shall file with the Register,
  in such form as the Register shall prescribe by regulation, a quarterly
  statement of account specifying, by product category, technology, and model,
  the number and transfer price of all digital audio recording devices and
  digital audio recording media that it distributed during such quarter.
  `(2) TIMING, CERTIFICATION, AND ROYALTY PAYMENTS- Such statement shall--
  `(A) be filed no later than 45 days after the close of the period covered
  by the statement;
  `(B) be certified as accurate by an authorized officer or principal of
  the importer or manufacturer;
  `(C) be accompanied by the total royalty payment due for such period
  pursuant to section 1012 of this title.
  `(3) PERIOD COVERED- The quarterly statements of account may be filed on
  either a calendar or fiscal year basis, at the election of the manufacturer
  or importer.
  `(d) FILING OF ANNUAL STATEMENTS OF ACCOUNT-
  `(1) GENERALLY- Any importer or manufacturer that distributed during a
  given calendar or fiscal year (as applicable) any digital audio recording
  device or digital audio recording medium that it manufactured or imported
  shall also file with the Register a cumulative annual statement of account,
  in such form as the Register shall prescribe by regulation.
  `(2) TIMING AND CERTIFICATION- Such statement shall be filed no later
  than 60 days after the close of such calendar or fiscal year, and shall
  be certified as accurate by an authorized officer or principal of the
  importer or manufacturer.
  `(3) INDEPENDENT REVIEW AND CERTIFICATION- The annual statement of account
  shall be reviewed and, pursuant to generally accepted auditing standards,
  certified by an independent certified public accountant selected by the
  manufacturer or importer as fairly presenting the information contained
  therein, on a consistent basis and in accordance with the requirements of
  this chapter.
  `(4) RECONCILIATION OF ROYALTY PAYMENT- The cumulative annual statement of
  account shall be accompanied by any royalty payment due under section 1012 of
  this title that was not previously paid under subsection (c) of this section.
  `(e) VERIFICATION-
  `(1) GENERALLY-
  `(A) The Register shall, after consulting with interested copyright parties
  and interested manufacturing parties, prescribe regulations specifying
  procedures for the verification of statements of account filed pursuant
  to this section.
  `(B) Such regulations shall permit interested copyright parties to select
  independent certified public accountants to conduct audits in order to
  verify the accuracy of the information contained in the statements of
  account filed by manufacturers and importers.
  `(C) Such regulations shall also--
  `(i) specify the scope of such independent audits; and
  `(ii) establish a procedure by which interested copyright parties will
  coordinate the engagement of such independent certified public accountants,
  in order to ensure that no manufacturer or importer is audited more than
  once per year.
  `(D) All such independent audits shall be conducted at reasonable times,
  with reasonable advance notice, and shall be no broader in scope than
  is reasonably necessary to carry out the purposes of this subsection in
  accordance with generally accepted auditing standards.
  `(2) INDEPENDENT CERTIFICATION- The results of all such independent audits
  shall be certified as fairly presenting the information contained therein,
  on a consistent basis and in accordance with the requirements of this
  chapter and generally accepted auditing standards, by the certified public
  accountant responsible for the audit. The certification and results shall
  be filed with the Register.
  `(3) ACCESS TO DOCUMENTS IN EVENT OF DISPUTE- In the event of a dispute
  concerning the amount of the royalty payment due from a manufacturer or
  importer resulting from a verification audit conducted under this section--
  `(A) any interested manufacturing party audited pursuant to this subsection,
  and its authorized representatives, shall be entitled to have access to all
  documents upon which the audit results under this subsection were based; and
  `(B) any representative of an interested copyright party that has been
  approved by the Register under subsection (h)(2) of this section shall be
  entitled to have access to all documents upon which the audit results under
  subsection (d) of this section were based, subject to the limitations of
  subsection (h)(2) of this section.
  `(f) COSTS OF VERIFICATION-
  `(1) The costs of all verification audits that are conducted pursuant
  to subsection (e) of this section shall be borne by interested copyright
  parties, except that, in the case of a verification audit of a manufacturer
  or importer that leads ultimately to recovery of an annual royalty
  underpayment of 5 percent or more of the annual payment made, the importer
  or manufacturer shall provide reimbursement for the reasonable costs of
  such audit.
  `(2) Except as may otherwise be agreed by interested copyright parties,
  the costs of a verification audit conducted pursuant to subsection (e)
  of this section shall be borne by the party engaging the certified public
  accountant. Any recovery of royalty underpayments as a result of the audit
  shall be used first to provide reimbursement for the reasonable costs of
  such audit to the extent such costs have not otherwise been reimbursed by the
  manufacturer or importer pursuant to this subsection. Any remaining recovery
  shall be deposited with the Register pursuant to section 1013 of this title,
  or as may otherwise be provided by a negotiated arrangement authorized under
  section 1016 of this title, for distribution to interested copyright parties
  as though such funds were royalty payments made pursuant to this section.
  `(g) INDEPENDENCE OF ACCOUNTANTS- Each certified public accountant used by
  interested copyright parties or interested manufacturing parties pursuant
  to this section shall be in good standing and shall not be financially
  dependent upon interested copyright parties or interested manufacturing
  parties, respectively. The Register may, upon petition by any interested
  copyright party or interested manufacturing party, prevent the use of a
  particular certified public accountant on the ground that such accountant
  does not meet the requirements of this subsection.
  `(h) CONFIDENTIALITY-
  `(1) GENERALLY- The quarterly and annual statements of account filed pursuant
  to subsections (c) and (d) of this section, and information disclosed or
  generated during verification audits conducted pursuant to subsection (e)
  of this section, shall be presumed to contain confidential trade secret
  information within the meaning of section 1905 of title 18 of the United
  States Code. Except as provided in paragraphs (2), (3), and (4) of this
  subsection, neither the Register nor any member, officer, or employee of
  the Copyright Office or the Tribunal, may--
  `(A) publicly disclose audit information furnished under this section or
  information contained in quarterly or annual statements of account, except
  that aggregate information that does not disclose, directly or indirectly,
  company-specific information may be made available to the public;
  `(B) use such information for any purpose other than to carry out
  responsibilities under this chapter; or
  `(C) permit anyone (other than members, officers, and employees of the
  Copyright Office and the Tribunal who require such information in the
  performance of duties under this chapter) to examine such information.
  `(2) PROCEDURES FOR ACCESS TO BE PRESCRIBED BY REGISTER- (A) The Register,
  after consulting with interested manufacturing parties and interested
  copyright parties, shall prescribe procedures for disclosing, in confidence,
  to representatives of interested copyright parties and representatives
  of interested manufacturing parties information contained in quarterly
  and annual statements of account and information generated as a result of
  verification audits.
  `(B) Such procedures shall provide that only those representatives of
  interested copyright parties and interested manufacturing parties who have
  been approved by the Register shall have access to such information, and
  that all such representatives shall be required to sign a certification
  limiting the use of the information to--
  `(i) verification functions under this section, and
  `(ii) any enforcement actions that may result from such verification
  procedures.
  `(3) ACCESS BY AUDITED MANUFACTURER- Any interested manufacturing party that
  is audited pursuant to subsection (e) of this section, and its authorized
  representatives, shall be entitled to have access to all documents filed
  with the Register as a result of such audit.
  `(4) ACCESS BY CONGRESS- Nothing in this section shall authorize the
  withholding of information from the Congress.
`Sec. 1012. Royalty payments
  `(a) DIGITAL AUDIO RECORDING DEVICES-
  `(1) The royalty payment due under section 1011 of this title for each
  digital audio recording device imported into and distributed in the
  United States, or manufactured and distributed in the United States,
  shall be 2 percent of the transfer price. However, only the first person
  to manufacture and distribute or import and distribute such device shall
  be required to pay the royalty with respect to such device.
  `(2) With respect to a digital audio recording device first distributed in
  combination with one or more devices, either as a physically integrated
  unit or as separate components, the royalty payment shall be calculated
  as follows:
  `(A) If the digital audio recording device and such other devices are part
  of a physically integrated unit, the royalty payment shall be based on the
  transfer price of the unit, but shall be reduced by any royalty payment
  made on any digital audio recording device included within the unit that
  was not first distributed in combination with the unit.
  `(B) If the digital audio recording device is not part of a physically
  integrated unit and substantially similar devices have been distributed
  separately at any time during the preceding 4 quarters, the royalty payment
  shall be based on the average transfer price of such devices during those
  4 quarters.
  `(C) If the digital audio recording device is not part of a physically
  integrated unit and substantially similar devices have not been distributed
  separately at any time during the preceding 4 quarters, the royalty payment
  shall be based on a constructed price reflecting the proportional value
  of such device to the combination as a whole.
  `(3) Notwithstanding paragraph (1) or (2) of this subsection, the amount of
  the royalty payment for each digital audio recording device or physically
  integrated unit containing a digital audio recording device shall not be
  less than $1 nor more than the royalty maximum. The royalty maximum shall be
  $8 per device, except that for a physically integrated unit containing more
  than one digital audio recording device, the royalty maximum for such unit
  shall be $12. During the 6th year after the effective date of this chapter,
  and no more than once each year thereafter, any interested copyright party
  may petition the Tribunal to increase the royalty maximum and, if more than
  20 percent of the royalty payments are at the relevant royalty maximum, the
  Tribunal shall prospectively increase such royalty maximum with the goal of
  having no more than 10 percent of such payments at the new royalty maximum.
  `(b) DIGITAL AUDIO RECORDING MEDIA- The royalty payment due under section
  1011 of this title for each digital audio recording medium imported into
  and distributed in the United States, or manufactured and distributed in
  the United States, shall be 3 percent of the transfer price. However, only
  the first person to manufacture and distribute or import and distribute
  such medium shall be required to pay the royalty with respect to such medium.
  `(c) RETURNED OR EXPORTED MERCHANDISE-
  `(1) In calculating the amount of royalty payments due under subsections
  (a) and (b) of this section, manufacturers and importers may deduct the
  amount of any royalty payments already made on digital audio recording
  devices or media that are--
  `(A) returned to the manufacturer or importer as unsold or defective
  merchandise; or
  `(B) exported by the manufacturer or importer or a related person.
  `(2) Any such credit shall be taken during the period when such devices or
  media are returned or exported, and the basis for any such credit shall be
  set forth in the statement of account for such period filed under section
  1011(c) of this title.
  `(3) Any such credit that is not fully used during such period may
  be carried forward to subsequent periods. If any returned or exported
  merchandise for which a credit has been taken is subsequently distributed,
  a royalty payment shall be made as specified under subsection (a) or (b)
  of this section, based on the transfer price applicable to such distribution.
`Sec. 1013. Deposit of royalty payments and deduction of expenses
  `The Register shall receive all royalty payments deposited under this chapter
  and, after deducting the reasonable costs incurred by the Copyright Office
  under this chapter, shall deposit the balance in the Treasury of the United
  States, in such manner as the Secretary of the Treasury directs. All funds
  held by the Secretary of the Treasury shall be invested in interest-bearing
  United States securities for later distribution with interest under
  section 1014, 1015, or 1016 of this title. The Register shall submit to
  the Copyright Royalty Tribunal, on a quarterly basis, such information as
  the Tribunal shall require to perform its functions under this chapter.
`Sec. 1014. Entitlement to royalty payments
  `(a) INTERESTED COPYRIGHT PARTIES- The royalty payments deposited pursuant
  to section 1013 of this title shall, in accordance with the procedures
  specified in section 1015 or 1016 of this title, be distributed to any
  interested copyright party--
  `(1) whose musical work or sound recording has been--
  `(A) embodied in phonorecords lawfully made under this title that have
  been distributed to the public, and
  `(B) distributed to the public in the form of phonorecords or disseminated
  to the public in transmissions, during the period to which such payments
  pertain; and
  `(2) who has filed a claim under section 1015 or 1016 of this title.
  `(b) ALLOCATION OF ROYALTY PAYMENTS TO GROUPS- The royalty payments shall
  be divided into two funds as follows:
  `(1) THE SOUND RECORDINGS FUND- 66 2/3  percent of the royalty payments
  shall be allocated to the Sound Recordings Fund. The American Federation
  of Musicians (or any successor entity) shall receive 2 5/8  percent
  of the royalty payments allocated to the Sound Recordings Fund for the
  benefit of nonfeatured musicians who have performed on sound recordings
  distributed in the United States. The American Federation of Television
  and Radio Artists (or any successor entity) shall receive 1 3/8  percent
  of the royalty payments allocated to the Sound Recordings Fund for the
  benefit of nonfeatured vocalists who have performed on sound recordings
  distributed in the United States. The remaining royalty payments in the
  Sound Recordings Fund shall be distributed to claimants under subsection
  (a) of this section who are interested copyright parties under section
  1001(a)(6)(i) of this title. Such claimants shall allocate such royalty
  payments, on a per sound recording basis, in the following manner: 40
  percent to the recording artist or artists featured on such sound recordings
  (or the persons conveying rights in the artists' performances in the sound
  recordings), and 60 percent to the interested copyright parties.
  `(2) THE MUSICAL WORKS FUND-
  `(A) 33 1/3  percent of the royalty payments shall be allocated to the
  Musical Works Fund for distribution to interested copyright parties whose
  entitlement is based on legal or beneficial ownership or control of a
  copyright in a musical work.
  `(B) Notwithstanding any contractual obligation to the contrary--
  `(i) music publishers shall be entitled to 50 percent of the royalty
  payments allocated to the Musical Works Fund, and
  `(ii) writers shall be entitled to the other 50 percent of the royalty
  payments allocated to the Musical Works Fund.
  `(c) ALLOCATION OF ROYALTY PAYMENTS WITHIN GROUPS- If all interested
  copyright parties within a group specified in subsection (b) of this section
  do not agree on a voluntary proposal for the distribution of the royalty
  payments within such group, the Tribunal shall, pursuant to the procedures
  specified in section 1015(c) of this title, allocate such royalty payments
  based on the extent to which, during the relevant period--
  `(1) for the Sound Recordings Fund, each sound recording was distributed
  to the public in the form of phonorecords; and
  `(2) for the Musical Works Fund, each musical work was distributed to
  the public in the form of phonorecords or disseminated to the public in
  transmissions.
`Sec. 1015. Procedures for distributing royalty payments
  `(a) FILING OF CLAIMS AND NEGOTIATIONS-
  `(1) During the first 2 months of each calendar year after the calendar
  year in which this chapter takes effect, every interested copyright party
  that is entitled to royalty payments under section 1014 of this title shall
  file with the Tribunal a claim for payments collected during the preceding
  year in such form and manner as the Tribunal shall prescribe by regulation.
  `(2) All interested copyright parties within each group specified in section
  1014(b) of this title shall negotiate in good faith among themselves
  in an effort to agree to a voluntary proposal for the distribution of
  royalty payments. Notwithstanding any provision of the antitrust laws,
  for purposes of this section such interested copyright parties may agree
  among themselves to the proportionate division of royalty payments, may
  lump their claims together and file them jointly or as a single claim,
  or may designate a common agent to receive payment on their behalf; except
  that no agreement under this subsection may vary the division of royalties
  specified in section 1014(b) of this title.
  `(b) DISTRIBUTION OF PAYMENTS IN THE ABSENCE OF A DISPUTE- Within 30 days
  after the period established for the filing of claims under subsection (a)
  of this section, in each year after the year in which this section takes
  effect, the Tribunal shall determine whether there exists a controversy
  concerning the distribution of royalty payments under section 1014(c) of
  this title. If the Tribunal determines that no such controversy exists,
  it shall authorize the distribution of the royalty payments as set forth in
  the agreements regarding the distribution of royalty payments entered into
  pursuant to subsection (a) of this section, after deducting its reasonable
  administrative costs under this section.
  `(c) RESOLUTION OF DISPUTES- If the Tribunal finds the existence of a
  controversy, it shall, pursuant to chapter 8 of this title, conduct a
  proceeding to determine the distribution of royalty payments. During
  the pendency of such a proceeding, the Tribunal shall withhold from
  distribution an amount sufficient to satisfy all claims with respect to
  which a controversy exists, but shall, to the extent feasible, authorize
  the distribution of any amounts that are not in controversy.
`Sec. 1016. Negotiated collection and distribution arrangements
  `(a) SCOPE OF PERMISSIBLE NEGOTIATED ARRANGEMENTS-
  `(1) Notwithstanding sections 1011 through 1015 of this title, interested
  copyright parties and interested manufacturing parties may at any time
  negotiate among or between themselves an alternative system for the
  collection, distribution, or verification of royalty payments provided
  for in this chapter.
  `(2) Such a negotiated arrangement may vary the collection, distribution,
  and verification procedures and requirements that would otherwise apply,
  including the time periods for payment and distribution of royalties, but
  shall not alter the royalty rates specified in section 1012(a)(1) or (b)
  of this title, the division of royalty payments specified in section 1014(b)
  of this title, or the notice requirement of section 1011(b) of this title.
  `(3) Such a negotiated arrangement may also provide that specified
  types of disputes that cannot be resolved among the parties shall be
  resolved by binding arbitration or other agreed upon means of dispute
  resolution. Notwithstanding any provision of the antitrust laws, for purposes
  of this section interested manufacturing parties and interested copyright
  parties may agree among themselves as to the collection, allocation,
  distribution, and verification of royalty payments, and may designate
  common agents to negotiate and carry out such activities on their behalf.
  `(b) IMPLEMENTATION OF A NEGOTIATED ARRANGEMENT- (1)(A) No negotiated
  arrangement shall go into effect under this section until the Tribunal has
  determined, after full opportunity for comment, that the participants in
  the negotiated arrangement include--
  `(i) at least two-thirds of all individual interested copyright parties
  that are entitled to receive royalty payments from the Sound Recordings Fund,
  `(ii) at least two-thirds of all individual interested copyright parties
  that are entitled to receive royalty payments from the Musical Works Fund
  as music publishers, and
  `(iii) at least two-thirds of all individual interested copyright parties
  that are entitled to receive royalty payments from the Musical Works Fund
  as writers.
  `(B) For purposes of subparagraph (A) of this paragraph, the determination
  as to two-thirds participation shall be based on annual retail sales of
  phonorecords in which musical works or sound recordings of musical works
  are embodied. One or more organizations representing any of the types of
  individual interested copyright parties specified in the first sentence of
  this subsection shall be presumed to represent two-thirds of that type of
  interested copyright party if the membership of, or other participation
  in, such organization or organizations includes two-thirds of that type
  of interested copyright party based on annual retail sales of phonorecords
  in which musical works or sound recordings of musical works are embodied.
  `(2) Notwithstanding the existence of a negotiated arrangement that has
  gone into effect under this subsection--
  `(A) any interested manufacturing party that is not a party to such
  negotiated arrangement may fully satisfy its obligations under this
  subchapter by complying with the procedures set forth in section 1011 of
  this title; and
  `(B) the Tribunal shall ensure that alternative distribution procedures
  are available for any interested copyright party that is not a party to
  such negotiated arrangement.
  `(c) MAINTENANCE OF JURISDICTION BY TRIBUNAL- Where a negotiated arrangement
  has gone into effect under this section, the Tribunal shall maintain
  jurisdiction to hear and address any objections to the arrangement that may
  arise while it is in effect, and to ensure the availability of alternative
  procedures for any interested manufacturing party or interested copyright
  party that is not a participant in the negotiated arrangement.
`SUBCHAPTER C--THE SERIAL COPY MANAGEMENT SYSTEM
`Sec. 1021. Incorporation of the serial copy management system
  `(a) Prohibition on Importation, Manufacture, and Distribution-
  `(1) No person shall import, manufacture, or distribute any digital
  audio recording device or any digital audio interface device that does
  not conform to the standards and specifications to implement the Serial
  Copy Management System that are--
  `(A) set forth in the technical reference document;
  `(B) set forth in an order by the Secretary of Commerce under section 1022
  (b)(1), (2), or (3) of this title; or
  `(C) in the case of a digital audio recording device other than a device
  defined in part II of the technical reference document or in an order issued
  by the Secretary pursuant to section 1022(b) of this title, established by
  the manufacturer (or, in the case of a proprietary technology, the proprietor
  of such technology) so as to achieve the same functional characteristics
  with respect to regulation of serial copying as, and to be compatible with
  the prevailing method for implementation of, the Serial Copy Management
  System set forth in the technical reference document or in any order of
  the Secretary issued under section 1022 of this title.
  `(2) If the Secretary of Commerce approves standards and specifications under
  section 1022(b)(4) of this title, then no person shall import, manufacture,
  or distribute any digital audio recording device or any digital audio
  interface device that does not conform to such standards and specifications.
  `(b) PROHIBITION ON CIRCUMVENTION OF THE SERIAL COPY MANAGEMENT SYSTEM-
  No person shall import, manufacture, or distribute any device, or offer or
  perform any service, the primary purpose or effect of which is to avoid,
  bypass, remove, deactivate, or otherwise circumvent any program or circuit
  which implements, in whole or in part, the Serial Copy Management System
  in a digital audio recording device or a digital audio interface device.
  `(c) ENCODING OF INFORMATION ON PHONORECORDS- (1) No person shall encode a
  phonorecord of a sound recording with inaccurate information relating to
  the category code, copyright status, or generation status of the source
  material so as improperly to affect the operation of the Serial Copy
  Management System.
  `(2) Nothing in this subchapter requires any person engaged in the
  importation, manufacture, or assembly of phonorecords to encode any such
  phonorecord with respect to its copyright status.
  `(d) INFORMATION ACCOMPANYING TRANSMISSIONS IN DIGITAL FORMAT- Any person
  who transmits or otherwise communicates to the public any sound recording
  in digital format is not required under this subchapter to transmit or
  otherwise communicate the information relating to the copyright status
  of the sound recording. However, any such person who does transmit or
  otherwise communicate such copyright status information shall transmit or
  communicate such information accurately.
`Sec. 1022. Implementing the serial copy management system
  `(a) PUBLICATION OF TECHNICAL REFERENCE DOCUMENT- Within 10 days after the
  date of the enactment of this chapter, the Secretary of Commerce shall cause
  the technical reference document to be published in the Federal Register.
  `(b) ORDERS OF SECRETARY OF COMMERCE- The Secretary of Commerce, upon
  petition by an interested manufacturing party or an interested copyright
  party, and after consultation with the Register, may, if the Secretary
  determines that to do so is in accordance with the purposes of this chapter,
  issue an order to implement the Serial Copy Management System set forth
  in the technical reference document as follows:
  `(1) FUNCTIONALLY EQUIVALENT ALTERNATIVES- The Secretary may issue an order
  for the purpose of permitting in commerce devices that do not conform to all
  of the standards and specifications set forth in the technical reference
  document, if the Secretary determines that such devices possess the same
  functional characteristics with respect to regulation of serial copying as,
  and are compatible with the prevailing method for implementation of, the
  Serial Copy Management System set forth in the technical reference document.
  `(2) REVISED GENERAL STANDARDS- The Secretary may issue an order for the
  purpose of permitting in commerce devices that do not conform to all of the
  standards and specifications set forth in the technical reference document,
  if the Secretary determines that--
  `(A) the standards and specifications relating generally to digital audio
  recording devices and digital audio interface devices have been or are
  being revised or otherwise amended or modified such that the standards
  and specifications set forth in the technical reference document are not
  or would no longer be applicable or appropriate; and
  `(B) such devices conform to such new standards and specifications and
  possess the same functional characteristics with respect to regulation
  of serial copying as the Serial Copy Management System set forth in the
  technical reference document.
  `(3) STANDARDS FOR NEW DEVICES- The Secretary may issue an order for the
  purpose of--
  `(A) establishing whether the standards and specifications established
  by a manufacturer or proprietor for digital audio recording devices other
  than devices defined in part II of the technical reference document or a
  prior order of the Secretary under paragraph (1) or (2) of this subsection
  comply with the requirements of subparagraph (C) of section 1021(a)(1)
  of this title; or
  `(B) establishing alternative standards or specifications in order to
  ensure compliance with such requirements.
  `(4) MATERIAL INPUT TO DIGITAL DEVICE THROUGH ANALOG CONVERTER-
  `(A) GENERALLY- Except as provided in subparagraphs (B) through (D),
  the Secretary, after publication of notice in the Federal Register and
  reasonable opportunity for public comment, may issue an order for the
  purpose of approving standards and specifications for a technical method
  implementing in a digital audio recording device the same functional
  characteristics as the Serial Copy Management System so as to regulate
  the serial copying of source material input through an analog converter
  in a manner equivalent to source material input in the digital format.
  `(B) COST LIMITATION- The order may not impose a total cost burden on
  manufacturers of digital audio recording devices, for implementing the
  Serial Copy Management System and the technical method prescribed in such
  order, in excess of 125 percent of the cost of implementing the Serial
  Copy Management System before the issuance of such order.
  `(C) CONSIDERATION OF OTHER OBJECTIONS- The Secretary shall consider other
  reasoned objections from any interested manufacturing party or interested
  copyright party.
  `(D) LIMITATION TO DIGITAL AUDIO DEVICES- The order shall not affect
  the recording of any source material on analog recording equipment and
  the order shall not impose any restrictions or requirements that must be
  implemented in any device other than a digital audio recording device or
  digital audio interface device.
`SUBCHAPTER D--REMEDIES
`Sec. 1031. Civil remedies
  `(a) CIVIL ACTIONS- Any interested copyright party or interested
  manufacturing party that is or would be injured by a violation of section
  1011 or 1021 of this title, or the Attorney General of the United States,
  may bring a civil action in an appropriate United States district court
  against any person for such violation.
  `(b) POWERS OF THE COURT- In an action brought under subsection (a) of
  this section, the court--
  `(1) except as provided in subsection (h) of this section, may grant
  temporary and permanent injunctions on such terms as it deems reasonable
  to prevent or restrain such violation;
  `(2) in the case of a violation of section 1011 (a) through (d) or 1021
  of this title, shall award damages under subsection (d) of this section;
  `(3) in its discretion may allow the recovery of full costs by or against
  any party other than the United States or an officer thereof;
  `(4) in its discretion may award a reasonable attorney's fee to the
  prevailing party as part of the costs awarded under paragraph (3) if the
  court finds that the nonprevailing party has not proceeded in good faith; and
  `(5) may grant such other equitable relief as it deems reasonable.
  `(c) RECOVERY OF OVERDUE ROYALTY PAYMENTS- In any case in which the court
  finds that a violation of section 1011 of this title involving nonpayment
  or underpayment of royalty payments has occurred, the violator shall be
  directed to pay, in addition to damages awarded under subsection (d) of
  this section, any such royalties due, plus interest calculated as provided
  under section 1961 of title 28, United States Code.
  `(d) AWARD OF DAMAGES-
  `(1) SECTION 1011-
  `(A) DEVICE- In the case of a violation of section 1011 (a) through (d)
  of this title involving a digital audio recording device, the court shall
  award statutory damages in an amount between a nominal level and $100 per
  device, as the court considers just.
  `(B) MEDIUM- In the case of a violation of section 1011 (a) through (d)
  of this title involving a digital audio recording medium, the court shall
  award statutory damages in an amount between a nominal level and $4 per
  medium, as the court considers just.
  `(2) SECTION 1021- In any case in which the court finds that a violation
  of section 1021 of this title has occurred, the court shall award damages
  calculated, at the election of the complaining party at any time before
  final judgment is rendered, pursuant to subparagraph (A) or (B) of this
  paragraph, but in no event shall the judgment (excluding any award of actual
  damages to an interested manufacturing party) exceed a total of $1,000,000:
  `(A) ACTUAL DAMAGES- A complaining party may recover its actual damages
  suffered as a result of the violation and any profits of the violator
  that are attributable to the violation that are not taken into account in
  computing the actual damages. In determining the violator's profits, the
  complaining party is required to prove only the violator's gross revenue,
  and the violator is required to prove its deductible expenses and the
  elements of profit attributable to factors other than the violation.
  `(B) STATUTORY DAMAGES-
  `(i) DEVICE- A complaining party may recover an award of statutory damages
  for each violation of section 1021 (a) or (b) of this title in the sum
  of not less than $1,000 nor more than $10,000 per device involved in such
  violation or per device on which a service prohibited by section 1021(b)
  of this title has been performed, as the court considers just.
  `(ii) PHONORECORD- A complaining party may recover an award of statutory
  damages for each violation of section 1021(c) of this title in the sum
  of not less than $10 nor more than $100 per phonorecord involved in such
  violation, as the court considers just.
  `(iii) TRANSMISSION- A complaining party may recover an award of damages
  for each transmission or communication that violates section 1021(d) of
  this title in the sum of not less than $10,000 nor more than $100,000,
  as the court considers just.
  `(3) WILLFUL VIOLATIONS-
  `(A) In any case in which the court finds that a violation of section 1011
  (a) through (d) of this title was committed willfully and for purposes
  of direct or indirect commercial advantage, the court shall increase
  statutory damages--
  `(i) for a violation involving a digital audio recording device, to a sum
  of not less than $100 nor more than $500 per device; and
  `(ii) for a violation involving a digital audio recording medium, to a sum of
  not less than $4 nor more than $15 per medium, as the court considers just.
  `(B) In any case in which the court finds that a violation of section
  1021 of this title was committed willfully and for purposes of direct or
  indirect commercial advantage, the court in its discretion may increase
  the award of damages by an additional amount of not more than $5,000,000,
  as the court considers just.
  `(4) INNOCENT VIOLATIONS OF SECTION 1021- The court in its discretion may
  reduce the total award of damages against a person violating section 1021
  of this title to a sum of not less than $250 in any case in which the
  court finds that--
  `(A) the violator was not aware and had no reason to believe that its acts
  constituted a violation of section 1021 of this title, or
  `(B) in the case of a violation of section 1021(a) of this title involving
  a digital audio recording device, the violator believed in good faith that
  the device complied with section 1021(a)(1)(C) of this title, except that
  this subparagraph shall not apply to any damages awarded under subsection
  (d)(2)(A) of this section.
  `(e) MULTIPLE ACTIONS-
  `(1) GENERALLY- No more than one action shall be brought against any
  party and no more than one award of statutory damages under subsection
  (d) of this section shall be permitted--
  `(A) for any violations of section 1011 of this title involving the same
  digital audio recording device or digital audio recording medium; or
  `(B) for any violations of section 1021 of this title involving digital
  audio recording devices or digital audio recording media of the same
  model, except that this subparagraph shall not bar an action or an award
  of damages with respect to digital audio recording devices or digital audio
  recording media that are imported, manufactured, or distributed subsequent
  to a final judgment in a prior action.
  `(2) NOTICE AND INTERVENTION- Any complaining party who brings an action
  under this section shall serve a copy of the complaint upon the Register
  within 10 days after the complaining party's service of a summons upon a
  defendant. The Register shall cause a notice of such action to be published
  in the Federal Register within 10 days after receipt of such complaint. The
  court shall permit any other interested copyright party or interested
  manufacturing party entitled to bring the action under section 1031(a)
  of this title who moves to intervene within 30 days after the publication
  of such notice to intervene in the action.
  `(3) AWARD-
  `(A) GENERALLY- Except as provided in subparagraph (B), the court may
  award recovery of actual damages for a violation of section 1021 of this
  title pursuant to subsection (d)(2)(A) of this section to each complaining
  party in an action who elects to recover actual damages.
  `(B) LIMITATIONS-
  `(i) If more than one complaining party elects to recover actual damages
  pursuant to subsection (d)(2)(A) of this section, only a single award
  of the violator's profits shall be made, which shall be allocated as the
  court considers just.
  `(ii) If any complaining interested copyright party or parties elect to
  recover statutory damages pursuant to subsection (d)(2) of this section
  in an action in which one or more other complaining interested copyright
  parties have elected to recover actual damages, the single award of
  statutory damages permitted pursuant to paragraph (1) of this subsection
  shall be reduced by the total amount of actual damages awarded to interested
  copyright parties pursuant to subsection (d)(2)(A) of this section.
  `(f) PAYMENT OF OVERDUE ROYALTIES AND DAMAGES- The court may allocate any
  award of damages under subsection (d) of this section between or among
  complaining parties as it considers just. Any award of damages that is
  allocated to an interested copyright party and any award of overdue royalties
  and interest under subsection (c) of this section shall be deposited with
  the Register pursuant to section 1013 of this title, or as may otherwise be
  provided pursuant to a negotiated arrangement authorized under section 1016
  of this title, for distribution to interested copyright parties as though
  such funds were royalty payments made pursuant to section 1011 of this title.
  `(g) IMPOUNDING OF ARTICLES- At any time while an action under this
  section is pending, the court may order the impounding, on such terms as
  it deems reasonable, of any digital audio recording device, digital audio
  interface device, phonorecord, or device specified in section 1021(b)
  of this title that is in the custody or control of the alleged violator
  and that the court has reasonable cause to believe does not comply with,
  or was involved in a violation of, section 1021 of this title.
  `(h) LIMITATIONS REGARDING PROFESSIONAL MODELS AND OTHER EXEMPT DEVICES-
  Unless a court finds that the determination by a manufacturer or importer
  that a device fits within the exemption of subparagraph (A) or (B) of section
  1001(3) of this title was without a reasonable basis or not in good faith,
  the court shall not grant a temporary or preliminary injunction against
  the distribution of such device by the manufacturer or importer.
  `(i) REMEDIAL MODIFICATION AND DESTRUCTION OF ARTICLES- As part of a final
  judgment or decree finding a violation of section 1021 of this title, the
  court shall order the remedial modification, if possible, or the destruction
  of any digital audio recording device, digital audio interface device,
  phonorecord, or device specified in section 1021(b) of this title that--
  `(1) does not comply with, or was involved in a violation of, section 1021
  of this title, and
  `(2) is in the custody or control of the violator or has been impounded
  under subsection (g) of this section.
  `(j) DEFINITIONS- For purposes of this section--
  `(1) the term `complaining party' means an interested copyright party,
  interested manufacturing party, or the Attorney General of the United States
  when one of these parties has initiated or intervened as a plaintiff in
  an action brought under this section; and
  `(2) the term `device' does not include a phonorecord.
`Sec. 1032. Binding arbitration
  `(a) DISPUTES TO BE ARBITRATED- Any dispute between an interested
  manufacturing party and an interested copyright party shall be resolved
  through binding arbitration, in accordance with the provisions of this
  section, if--
  `(1) the parties mutually agree; or
  `(2) before the date of first distribution in the United States of the
  product which is the subject of the dispute, an interested manufacturing
  party or an interested copyright party requests arbitration concerning
  whether such product is or is not a digital audio recording device,
  a digital audio recording medium, or a digital audio interface device,
  or concerning the basis on which royalty payments are to be made with
  respect to such product.
  `(b) ARBITRAL PROCEDURES-
  `(1) REGULATIONS FOR COORDINATION OF ARBITRATION- The Register shall,
  after consulting with interested copyright parties, prescribe regulations
  establishing a procedure by which interested copyright parties will
  coordinate decisions and representation concerning the arbitration of
  disputes. No interested copyright party shall have the authority to request,
  agree to, or (except as an intervenor pursuant to subsection (c) of this
  section) enter into, binding arbitration unless that party shall have been
  authorized to do so pursuant to the regulations prescribed by the Register.
  `(2) PANEL- Except as otherwise agreed by the parties to a dispute that
  is to be submitted to binding arbitration under subsection (a) of this
  section, the dispute shall be heard by a panel of three arbitrators, with
  one arbitrator selected by each of the two sides to the dispute and the third
  arbitrator selected by mutual agreement of the first two arbitrators chosen.
  `(3) DECISION- The arbitral panel shall render its final decision concerning
  the dispute, in a written opinion explaining its reasoning, within 120 days
  after the date on which the selection of arbitrators has been concluded. The
  Register shall cause to be published in the Federal Register the written
  opinion of the arbitral panel within 10 days after receipt thereof.
  `(4) TITLE 9 PROVISIONS TO GOVERN- Except to the extent inconsistent with
  this section, any arbitration proceeding under this section shall be
  conducted in the same manner, subject to the same limitations, carried
  out with the same powers (including the power to summon witnesses), and
  enforced in the courts of the United States as an arbitration proceeding
  under title 9, United States Code.
  `(5) PRECEDENTS- In rendering a final decision, the arbitral panel shall
  take into account any final decisions rendered in prior proceedings under
  this section that address identical or similar issues; and failure of the
  arbitral panel to take account of such prior decisions may be considered
  imperfect execution of arbitral powers under section 10(a)(4) of title 9,
  United States Code.
  `(c) NOTICE AND RIGHT TO INTERVENE- Any interested copyright party or
  interested manufacturing party that requests an arbitral proceeding under
  this section shall provide the Register with notice concerning the parties
  to the dispute and the nature of the dispute within 10 days after formally
  requesting arbitration under subsection (a) of this section. The Register
  shall cause a summary of such notice to be published in the Federal Register
  within 10 days after receipt of such notice. The arbitral panel shall
  permit any other interested copyright party or interested manufacturing
  party who moves to intervene within 20 days after such publication to
  intervene in the action.
  `(d) AUTHORITY OF ARBITRAL PANEL TO ORDER RELIEF-
  `(1) TO PROTECT PROPRIETARY INFORMATION- The arbitral panel shall issue
  such orders as are appropriate to protect the proprietary technology and
  information of parties to the proceeding, including provision for injunctive
  relief in the event of a violation of such order.
  `(2) TO TERMINATE PROCEEDING- The arbitral panel shall terminate any
  proceeding that it has good cause to believe has been commenced in bad faith
  by a competitor in order to gain access to proprietary information. The panel
  shall also terminate any proceeding that it believes has been commenced
  before the technology or product at issue has been sufficiently developed
  or defined to permit an informed decision concerning the applicability of
  this chapter to such technology or product.
  `(3) TO ORDER RELIEF- In any case in which the arbitral panel finds,
  with respect to devices or media that were the subject of the dispute,
  that royalty payments have been or will be due under section 1011 of this
  title through the date of the arbitral decision, the panel shall order
  the deposit of such royalty payments pursuant to section 1013 of this
  title, plus interest calculated as provided under section 1961 of title
  28, United States Code. The arbitral panel shall not award monetary or
  injunctive relief, as provided in section 1031 of this title or otherwise,
  except as is expressly provided in this subsection.
  `(e) EFFECT OF ARBITRATION PROCEEDING ON CIVIL ACTIONS AND REMEDIES-
  Notwithstanding any provision of section 1031 of this title, no civil
  action may be brought or relief granted under section 1031 of this title
  against any party to an ongoing or completed arbitration proceeding under
  this section, with respect to devices or media that are the subject of
  such an arbitration proceeding. However, this subsection does not bar--
  `(1) an action for injunctive relief at any time based on a violation of
  section 1021 of this title; or
  `(2) an action or any relief with respect to those devices or media
  distributed by their importer or manufacturer following the conclusion of
  such arbitration proceeding, or, if so stipulated by the parties, prior
  to the commencement of such proceeding.
  `(f) ARBITRAL COSTS- Except as otherwise agreed by the parties to a dispute,
  the costs of an arbitral proceeding under this section shall be divided among
  the parties in such fashion as is considered just by the arbitral panel at
  the conclusion of the proceeding. Each party to the dispute shall bear its
  own attorney fees unless the arbitral panel determines that a nonprevailing
  party has not proceeded in good faith and that, as a matter of discretion, it
  is appropriate to award reasonable attorney's fees to the prevailing party.'.
SEC. 3. TECHNICAL AMENDMENTS.
  (a) Functions of Register- Chapter 8 of title 17, United States Code
  is amended--
  (1) in section 801(b)--
  (A) by striking `and' at the end of paragraph (2);
  (B) by striking the period at the end of paragraph (3) and inserting `;
  and'; and
  (C) by adding the following new paragraph at the end:
  `(4) to distribute royalty payments deposited with the Register of Copyrights
  under section 1014, to determine, in cases where controversy exists, the
  distribution of such payments, and to carry out its other responsibilities
  under chapter 10'; and
  (2) in section 804(d)--
  (A) by inserting `or (4)' after `801(b)(3)'; and
  (B) by striking `or 119' and inserting `119, 1015, or 1016'.
  (b) DEFINITIONS- Section 101 of title 17, United States Code, is amended
  by striking `As used' and inserting `Except as otherwise provided in this
  title, as used'.
  (c) MASK WORKS- Section 912 of title 17, United States Code, is amended--
  (1) in subsection (a) by inserting `or 10' after `8'; and
  (2) in subsection (b) by inserting `or 10' after `8'.
SEC. 4. EFFECTIVE DATE.
  This Act, and the amendments made by this Act, shall take effect on the date
  of the enactment of this Act or January 1, 1992, whichever date is later.