Text: S.1623 — 102nd Congress (1991-1992)All Information (Except Text)

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--S.1623--
S.1623
One Hundred Second Congress of the United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Friday, the third day of January,
one thousand nine hundred and ninety-two
An Act
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 1992'.
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
`Sec.
`1001. Definitions.
`SUBCHAPTER B--COPYING CONTROLS
`1002. Incorporation of copying controls.
`SUBCHAPTER C--ROYALTY PAYMENTS
`1003. Obligation to make royalty payments.
`1004. Royalty payments.
`1005. Deposit of royalty payments and deduction of expenses.
`1006. Entitlement to royalty payments.
`1007. Procedures for distributing royalty payments.
`SUBCHAPTER D--PROHIBITION ON CERTAIN INFRINGEMENT ACTIONS, REMEDIES,
AND ARBITRATION
`1008. Prohibition on certain infringement actions.
`1009. Civil remedies.
`1010. Arbitration of certain disputes.
`SUBCHAPTER A--DEFINITIONS
`Sec. 1001. Definitions
  `As used in this chapter, the following terms have the following meanings:
  `(1) A `digital audio copied recording' is a reproduction in a digital
  recording format of a digital musical recording, whether that reproduction
  is made directly from another digital musical recording or indirectly from
  a transmission.
  `(2) A `digital audio interface device' is any machine or device that
  is designed specifically to communicate digital audio information and
  related interface data to a digital audio recording device through a
  nonprofessional interface.
  `(3) A `digital audio recording device' is any machine or device of a type
  commonly distributed to individuals for use by individuals, whether or
  not included with or as part of some other machine or device, the digital
  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 in a form
  commonly distributed for use by individuals, 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; 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 computer programs or data bases.
  `(5)(A) A `digital musical recording' is a material object--
  `(i) in which are fixed, in a digital recording format, only sounds, and
  material, statements, or instructions incidental to those fixed sounds,
  if any, and
  `(ii) from which the sounds and material can be perceived, reproduced,
  or otherwise communicated, either directly or with the aid of a machine
  or device.
  `(B) A `digital musical recording' does not include a material object--
  `(i) in which the fixed sounds consist entirely of spoken word recordings, or
  `(ii) in which one or more computer programs are fixed, except that a digital
  musical recording may contain statements or instructions constituting the
  fixed sounds and incidental material, and statements or instructions to
  be used directly or indirectly in order to bring about the perception,
  reproduction, or communication of the fixed sounds and incidental material.
  `(C) For purposes of this paragraph--
  `(i) a `spoken word recording' is a sound recording in which are fixed only
  a series of spoken words, except that the spoken words may be accompanied
  by incidental musical or other sounds, and
  `(ii) the term `incidental' means related to and relatively minor by
  comparison.
  `(6) `Distribute' means to sell, lease, or assign a product to consumers
  in the United States, or to sell, lease, or assign a product in the United
  States for ultimate transfer to consumers in the United States.
  `(7) 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 digital musical recording or analog musical recording lawfully made
  under this title that has been distributed;
  `(B) the legal or beneficial owner of, or the person that controls, the right
  to reproduce in a digital musical recording or analog musical recording a
  musical work that has been embodied in a digital musical recording or analog
  musical recording lawfully made under this title that has been distributed;
  `(C) a featured recording artist who performs on a sound recording that
  has been distributed; or
  `(D) any association or other organization--
  `(i) representing persons specified in subparagraph (A), (B), or (C), or
  `(ii) engaged in licensing rights in musical works to music users on behalf
  of writers and publishers.
  `(8) To `manufacture' means to produce or assemble a product in the United
  States. A `manufacturer' is a person who manufactures.
  `(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 `professional model product' is an audio recording device that
  is designed, manufactured, marketed, and intended for use by recording
  professionals in the ordinary course of a lawful business, in accordance with
  such requirements as the Secretary of Commerce shall establish by regulation.
  `(11) The term `serial copying' means the duplication in a digital format of
  a copyrighted musical work or sound recording from a digital reproduction
  of a digital musical recording. The term `digital reproduction of a
  digital musical recording' does not include a digital musical recording
  as distributed, by authority of the copyright owner, for ultimate sale
  to consumers.
  `(12) The `transfer price' of a digital audio recording device or a digital
  audio recording medium--
  `(A) is, subject to subparagraph (B)--
  `(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); and
  `(B) shall, in a case in which the transferor and transferee are related
  entities or within a single entity, 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.
  `(13) A `writer' is the composer or lyricist of a particular musical work.
`SUBCHAPTER B--COPYING CONTROLS
`Sec. 1002. Incorporation of copying controls
  `(a) PROHIBITION ON IMPORTATION, MANUFACTURE, AND DISTRIBUTION- No person
  shall import, manufacture, or distribute any digital audio recording device
  or digital audio interface device that does not conform to--
  `(1) the Serial Copy Management System;
  `(2) a system that has the same functional characteristics as the Serial
  Copy Management System and requires that copyright and generation status
  information be accurately sent, received, and acted upon between devices
  using the system's method of serial copying regulation and devices using
  the Serial Copy Management System; or
  `(3) any other system certified by the Secretary of Commerce as prohibiting
  unauthorized serial copying.
  `(b) DEVELOPMENT OF VERIFICATION PROCEDURE- The Secretary of Commerce shall
  establish a procedure to verify, upon the petition of an interested party,
  that a system meets the standards set forth in subsection (a)(2).
  `(c) PROHIBITION ON CIRCUMVENTION OF THE 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, a system described in subsection (a).
  `(d) ENCODING OF INFORMATION ON DIGITAL MUSICAL RECORDINGS-
  `(1) PROHIBITION ON ENCODING INACCURATE INFORMATION- No person shall
  encode a digital musical recording of a sound recording with inaccurate
  information relating to the category code, copyright status, or generation
  status of the source material for the recording.
  `(2) ENCODING OF COPYRIGHT STATUS NOT REQUIRED- Nothing in this chapter
  requires any person engaged in the importation or manufacture of digital
  musical recordings to encode any such digital musical recording with
  respect to its copyright status.
  `(e) 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 chapter to transmit or otherwise
  communicate the information relating to the copyright status of the sound
  recording. Any such person who does transmit or otherwise communicate
  such copyright status information shall transmit or communicate such
  information accurately.
`SUBCHAPTER C--ROYALTY PAYMENTS
`Sec. 1003. Obligation to make royalty payments
  `(a) PROHIBITION ON IMPORTATION AND MANUFACTURE- No person shall import
  into and distribute, or manufacture and distribute, any digital audio
  recording device or digital audio recording medium unless such person
  records the notice specified by this section and subsequently deposits the
  statements of account and applicable royalty payments for such device or
  medium specified in section 1004.
  `(b) FILING OF NOTICE- 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 with
  the Register of Copyrights a notice with respect to such device or medium,
  in such form and content as the Register shall prescribe by regulation.
  `(c) FILING OF QUARTERLY AND ANNUAL STATEMENTS OF ACCOUNT-
  `(1) GENERALLY- Any importer or manufacturer that distributes any
  digital audio recording device or digital audio recording medium that
  it manufactured or imported shall file with the Register of Copyrights,
  in such form and content as the Register shall prescribe by regulation,
  such quarterly and annual statements of account with respect to such
  distribution as the Register shall prescribe by regulation.
  `(2) CERTIFICATION, VERIFICATION, AND CONFIDENTIALITY- Each such statement
  shall be certified as accurate by an authorized officer or principal of
  the importer or manufacturer. The Register shall issue regulations to
  provide for the verification and audit of such statements and to protect
  the confidentiality of the information contained in such statements. Such
  regulations shall provide for the disclosure, in confidence, of such
  statements to interested copyright parties.
  `(3) ROYALTY PAYMENTS- Each such statement shall be accompanied by the
  royalty payments specified in section 1004.
`Sec. 1004. Royalty payments
  `(a) DIGITAL AUDIO RECORDING DEVICES-
  `(1) AMOUNT OF PAYMENT- The royalty payment due under section 1003 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. 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) CALCULATION FOR DEVICES DISTRIBUTED WITH OTHER DEVICES- 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 calendar 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 calendar 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) LIMITS ON ROYALTIES- Notwithstanding paragraph (1) or (2), the amount
  of the royalty payment for each 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 in the case of a physically integrated unit
  containing more than 1 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 not more than once each year thereafter, any interested
  copyright party may petition the Copyright Royalty 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; however the amount
  of any such increase as a percentage of the royalty maximum shall in no
  event exceed the percentage increase in the Consumer Price Index during
  the period under review.
  `(b) DIGITAL AUDIO RECORDING MEDIA- The royalty payment due under section
  1003 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. 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.
`Sec. 1005. Deposit of royalty payments and deduction of expenses
  `The Register of Copyrights 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 as offsetting receipts, 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 1007. The Register may,
  in the Register's discretion, 4 years after the close of any calendar year,
  close out the royalty payments account for that calendar year, and may
  treat any funds remaining in such account and any subsequent deposits that
  would otherwise be attributable to that calendar year as attributable to
  the succeeding calendar year. The Register shall submit to the Copyright
  Royalty Tribunal, on a monthly basis, a financial statement reporting the
  amount of royalties under this chapter that are available for distribution.
`Sec. 1006. Entitlement to royalty payments
  `(a) INTERESTED COPYRIGHT PARTIES- The royalty payments deposited pursuant
  to section 1005 shall, in accordance with the procedures specified in
  section 1007, be distributed to any interested copyright party--
  `(1) whose musical work or sound recording has been--
  `(A) embodied in a digital musical recording or an analog musical recording
  lawfully made under this title that has been distributed, and
  `(B) distributed in the form of digital musical recordings or analog
  musical recordings or disseminated to the public in transmissions, during
  the period to which such payments pertain; and
  `(2) who has filed a claim under section 1007.
  `(b) ALLOCATION OF ROYALTY PAYMENTS TO GROUPS- The royalty payments shall
  be divided into 2 funds as follows:
  `(1) THE SOUND RECORDINGS FUND- 66 2/3  percent of the royalty payments
  shall be allocated to the Sound Recordings Fund. 2 5/8  percent of the
  royalty payments allocated to the Sound Recordings Fund shall be placed in
  an escrow account managed by an independent administrator jointly appointed
  by the interested copyright parties described in section 1001(7)(A) and the
  American Federation of Musicians (or any successor entity) to be distributed
  to nonfeatured musicians (whether or not members of the American Federation
  of Musicians or any successor entity) who have performed on sound recordings
  distributed in the United States. 1 3/8  percent of the royalty payments
  allocated to the Sound Recordings Fund shall be placed in an escrow account
  managed by an independent administrator jointly appointed by the interested
  copyright parties described in section 1001(7)(A) and the American Federation
  of Television and Radio Artists (or any successor entity) to be distributed
  to nonfeatured vocalists (whether or not members of the American Federation
  Television and Radio Artists or any successor entity) who have performed
  on sound recordings distributed in the United States. 40 percent of the
  remaining royalty payments in the Sound Recordings Fund shall be distributed
  to the interested copyright parties described in section 1001(7)(C), and
  60 percent of such remaining royalty payments shall be distributed to the
  interested copyright parties described in section 1001(7)(A).
  `(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
  described in section 1001(7)(B).
  `(B)(i) Music publishers shall be entitled to 50 percent of the royalty
  payments allocated to the Musical Works Fund.
  `(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) do not agree
  on a voluntary proposal for the distribution of the royalty payments
  within each group, the Copyright Royalty Tribunal shall, pursuant to the
  procedures specified under section 1007(c), allocate royalty payments
  under this section based on the extent to which, during the relevant period--
  `(1) for the Sound Recordings Fund, each sound recording was distributed
  in the form of digital musical recordings or analog musical recordings; and
  `(2) for the Musical Works Fund, each musical work was distributed in
  the form of digital musical recordings or analog musical recordings or
  disseminated to the public in transmissions.
`Sec. 1007. Procedures for distributing royalty payments
  `(a) FILING OF CLAIMS AND NEGOTIATIONS-
  `(1) FILING OF CLAIMS- During the first 2 months of each calendar year
  after the calendar year in which this chapter takes effect, every interested
  copyright party seeking to receive royalty payments to which such party is
  entitled under section 1006 shall file with the Copyright Royalty Tribunal
  a claim for payments collected during the preceding year in such form and
  manner as the Tribunal shall prescribe by regulation.
  `(2) NEGOTIATIONS- Notwithstanding any provision of the antitrust laws,
  for purposes of this section interested copyright parties within each group
  specified in section 1006(b) 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, including
  any organization described in section 1001(7)(D), to negotiate or receive
  payment on their behalf; except that no agreement under this subsection
  may modify the allocation of royalties specified in section 1006(b).
  `(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), in each year after the year in which this section takes effect,
  the Copyright Royalty Tribunal shall determine whether there exists a
  controversy concerning the distribution of royalty payments under section
  1006(c). If the Tribunal determines that no such controversy exists,
  the Tribunal shall, within 30 days after such determination, 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), 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. The Tribunal
  shall, before authorizing the distribution of such royalty payments,
  deduct its reasonable administrative costs under this section.
`SUBCHAPTER D--PROHIBITION ON CERTAIN INFRINGEMENT ACTIONS, REMEDIES,
AND ARBITRATION
`Sec. 1008. Prohibition on certain infringement actions
  `No action may be brought under this title alleging infringement of copyright
  based on the manufacture, importation, or distribution of a digital audio
  recording device, a digital audio recording medium, an analog recording
  device, or an analog recording medium, or based on the noncommercial use by
  a consumer of such a device or medium for making digital musical recordings
  or analog musical recordings.
`Sec. 1009. Civil remedies
  `(a) CIVIL ACTIONS- Any interested copyright party injured by a violation
  of section 1002 or 1003 may bring a civil action in an appropriate United
  States district court against any person for such violation.
  `(b) OTHER CIVIL ACTIONS- Any person injured by a violation of this chapter
  may bring a civil action in an appropriate United States district court
  for actual damages incurred as a result of such violation.
  `(c) POWERS OF THE COURT- In an action brought under subsection (a),
  the court--
  `(1) 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 1002, or in the case of an injury
  resulting from a failure to make royalty payments required by section 1003,
  shall award damages under subsection (d);
  `(3) in its discretion may allow the recovery of costs by or against any
  party other than the United States or an officer thereof; and
  `(4) in its discretion may award a reasonable attorney's fee to the
  prevailing party.
  `(d) AWARD OF DAMAGES-
  `(1) DAMAGES FOR SECTION 1002 OR 1003 VIOLATIONS-
  `(A) ACTUAL DAMAGES- (i) In an action brought under subsection (a), if the
  court finds that a violation of section 1002 or 1003 has occurred, the court
  shall award to the complaining party its actual damages if the complaining
  party elects such damages at any time before final judgment is entered.
  `(ii) In the case of section 1003, actual damages shall constitute the
  royalty payments that should have been paid under section 1004 and deposited
  under section 1005. In such a case, the court, in its discretion, may
  award an additional amount of not to exceed 50 percent of the actual damages.
  `(B) STATUTORY DAMAGES FOR SECTION 1002 VIOLATIONS-
  `(i) DEVICE- A complaining party may recover an award of statutory damages
  for each violation of section 1002 (a) or (c) in the sum of not more than
  $2,500 per device involved in such violation or per device on which a
  service prohibited by section 1002(c) has been performed, as the court
  considers just.
  `(ii) DIGITAL MUSICAL RECORDING- A complaining party may recover an award
  of statutory damages for each violation of section 1002(d) in the sum of
  not more than $25 per digital musical recording 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 1002(e)
  in the sum of not more than $10,000, as the court considers just.
  `(2) REPEATED VIOLATIONS- In any case in which the court finds that a person
  has violated section 1002 or 1003 within 3 years after a final judgment
  against that person for another such violation was entered, the court may
  increase the award of damages to not more than double the amounts that
  would otherwise be awarded under paragraph (1), as the court considers just.
  `(3) INNOCENT VIOLATIONS OF SECTION 1002- The court in its discretion may
  reduce the total award of damages against a person violating section 1002
  to a sum of not less than $250 in any case in which the court finds that
  the violator was not aware and had no reason to believe that its acts
  constituted a violation of section 1002.
  `(e) PAYMENT OF DAMAGES- Any award of damages under subsection (d) shall
  be deposited with the Register pursuant to section 1005 for distribution
  to interested copyright parties as though such funds were royalty payments
  made pursuant to section 1003.
  `(f) IMPOUNDING OF ARTICLES- At any time while an action under subsection
  (a) is pending, the court may order the impounding, on such terms as it deems
  reasonable, of any digital audio recording device, digital musical recording,
  or device specified in section 1002(c) 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 1002.
  `(g) REMEDIAL MODIFICATION AND DESTRUCTION OF ARTICLES- In an action brought
  under subsection (a), the court may, as part of a final judgment or decree
  finding a violation of section 1002, order the remedial modification or
  the destruction of any digital audio recording device, digital musical
  recording, or device specified in section 1002(c) that--
  `(1) does not comply with, or was involved in a violation of, section
  1002, and
  `(2) is in the custody or control of the violator or has been impounded
  under subsection (f).
`Sec. 1010. Arbitration of certain disputes
  `(a) SCOPE OF ARBITRATION- Before the date of first distribution in
  the United States of a digital audio recording device or a digital audio
  interface device, any party manufacturing, importing, or distributing such
  device, and any interested copyright party may mutually agree to binding
  arbitration for the purpose of determining whether such device is subject
  to section 1002, or the basis on which royalty payments for such device
  are to be made under section 1003.
  `(b) INITIATION OF ARBITRATION PROCEEDINGS- Parties agreeing to such
  arbitration shall file a petition with the Copyright Royalty Tribunal
  requesting the commencement of an arbitration proceeding. The petition may
  include the names and qualifications of potential arbitrators. Within 2
  weeks after receiving such a petition, the Tribunal shall cause notice to
  be published in the Federal Register of the initiation of an arbitration
  proceeding. Such notice shall include the names and qualifications of 3
  arbitrators chosen by the Tribunal from a list of available arbitrators
  obtained from the American Arbitration Association or such similar
  organization as the Tribunal shall select, and from potential arbitrators
  listed in the parties' petition. The arbitrators selected under this
  subsection shall constitute an Arbitration Panel.
  `(c) STAY OF JUDICIAL PROCEEDINGS- Any civil action brought under section
  1009 against a party to arbitration under this section shall, on application
  of one of the parties to the arbitration, be stayed until completion of
  the arbitration proceeding.
  `(d) ARBITRATION PROCEEDING- The Arbitration Panel shall conduct an
  arbitration proceeding with respect to the matter concerned, in accordance
  with such procedures as it may adopt. The Panel shall act on the basis
  of a fully documented written record. Any party to the arbitration may
  submit relevant information and proposals to the Panel. The parties to the
  proceeding shall bear the entire cost thereof in such manner and proportion
  as the Panel shall direct.
  `(e) REPORT TO COPYRIGHT ROYALTY TRIBUNAL- Not later than 60 days after
  publication of the notice under subsection (b) of the initiation of an
  arbitration proceeding, the Arbitration Panel shall report to the Copyright
  Royalty Tribunal its determination concerning whether the device concerned
  is subject to section 1002, or the basis on which royalty payments for the
  device are to be made under section 1003. Such report shall be accompanied
  by the written record, and shall set forth the facts that the Panel found
  relevant to its determination.
  `(f) ACTION BY THE COPYRIGHT ROYALTY TRIBUNAL- Within 60 days after
  receiving the report of the Arbitration Panel under subsection (e), the
  Copyright Royalty Tribunal shall adopt or reject the determination of the
  Panel. The Tribunal shall adopt the determination of the Panel unless the
  Tribunal finds that the determination is clearly erroneous. If the Tribunal
  rejects the determination of the Panel, the Tribunal shall, before the end
  of that 60-day period, and after full examination of the record created
  in the arbitration proceeding, issue an order setting forth its decision
  and the reasons therefor. The Tribunal shall cause to be published in
  the Federal Register the determination of the Panel and the decision
  of the Tribunal under this subsection with respect to the determination
  (including any order issued under the preceding sentence).
  `(g) JUDICIAL REVIEW- Any decision of the Copyright Royalty Tribunal under
  subsection (f) with respect to a determination of the Arbitration Panel
  may be appealed, by a party to the arbitration, to the United States Court
  of Appeals for the District of Columbia Circuit, within 30 days after the
  publication of the decision in the Federal Register. The pendency of an
  appeal under this subsection shall not stay the Tribunal's decision. The
  court shall have jurisdiction to modify or vacate a decision of the Tribunal
  only if it finds, on the basis of the record before the Tribunal, that the
  Arbitration Panel or the Tribunal acted in an arbitrary manner. If the court
  modifies the decision of the Tribunal, the court shall have jurisdiction
  to enter its own decision in accordance with its final judgment. The court
  may further vacate the decision of the Tribunal and remand the case for
  arbitration proceedings as provided in this section.'.
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 1003, to determine 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, or 1007'.
  (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'.
  (d) CONFORMING AMENDMENT TO SECTION 337 OF THE TARIFF ACT OF 1930-
  The second sentence of section 337(b)(3) of the Tariff Act of 1930 (19
  U.S.C. 1337(b)(3)) is amended to read as follows: `If the Commission has
  reason to believe that the matter before it (A) is based solely on alleged
  acts and effects which are within the purview of section 303, 671, or 673,
  or (B) relates to an alleged copyright infringement with respect to which
  action is prohibited by section 1008 of title 17, United States Code,
  the Commission shall terminate, or not institute, any investigation into
  the matter.'.
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.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.