[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 17USC801]
TITLE 17--COPYRIGHTS
CHAPTER 8--COPYRIGHT ARBITRATION ROYALTY PANELS
Sec. 801. Copyright arbitration royalty panels: Establishment
and purpose
(a) Establishment.--The Librarian of Congress, upon the
recommendation of the Register of Copyrights, is authorized to appoint
and convene copyright arbitration royalty panels.
(b) Purposes.--Subject to the provisions of this chapter, the
purposes of the copyright arbitration royalty panels shall be as
follows:
(1) To make determinations concerning the adjustment of
reasonable copyright royalty rates as provided in sections 114, 115,
116, and 119, and to make determinations as to reasonable terms and
rates of royalty payments as provided in section 118. The rates
applicable under sections 114(f)(1)(B), 115, and 116 shall be
calculated to achieve the following objectives:
(A) To maximize the availability of creative works to the
public;
(B) To afford the copyright owner a fair return for his
creative work and the copyright user a fair income under
existing economic conditions;
(C) To reflect the relative roles of the copyright owner and
the copyright user in the product made available to the public
with respect to relative creative contribution, technological
contribution, capital investment, cost, risk, and contribution
to the opening of new markets for creative expression and media
for their communication;
(D) To minimize any disruptive impact on the structure of
the industries involved and on generally prevailing industry
practices.
(2) To make determinations concerning the adjustment of the
copyright royalty rates in section 111 solely in accordance with the
following provisions:
(A) The rates established by section 111(d)(1)(B) may be
adjusted to reflect (i) national monetary inflation or deflation
or (ii) changes in the average rates charged cable subscribers
for the basic service of providing secondary transmissions to
maintain the real constant dollar level of the royalty fee per
subscriber which existed as of the date of enactment of this
Act: Provided, That if the average rates charged cable system
subscribers for the basic service of providing secondary
transmissions are changed so that the average rates exceed
national monetary inflation, no change in the rates established
by section 111(d)(1)(B) shall be permitted: And provided
further, That no increase in the royalty fee shall be permitted
based on any reduction in the average number of distant signal
equivalents per subscriber. The copyright arbitration royalty
panels may consider all factors relating to the maintenance of
such level of payments including, as an extenuating factor,
whether the cable industry has been restrained by subscriber
rate regulating authorities from increasing the rates for the
basic service of providing secondary transmissions.
(B) In the event that the rules and regulations of the
Federal Communications Commission are amended at any time after
April 15, 1976, to permit the carriage by cable systems of
additional television broadcast signals beyond the local service
area of the primary transmitters of such signals, the royalty
rates established by section 111(d)(1)(B) may be adjusted to
insure that the rates for the additional distant signal
equivalents resulting from such carriage are reasonable in the
light of the changes effected by the amendment to such rules and
regulations. In determining the reasonableness of rates proposed
following an amendment of Federal Communications Commission
rules and regulations, the copyright arbitration royalty panels
shall consider, among other factors, the economic impact on
copyright owners and users: Provided, That no adjustment in
royalty rates shall be made under this subclause with respect to
any distant signal equivalent or fraction thereof represented by
(i) carriage of any signal permitted under the rules and
regulations of the Federal Communications Commission in effect
on April 15, 1976, or the carriage of a signal of the same type
(that is, independent, network, or noncommercial educational)
substituted for such permitted signal, or (ii) a television
broadcast signal first carried after April 15, 1976, pursuant to
an individual waiver of the rules and regulations of the Federal
Communications Commission, as such rules and regulations were in
effect on April 15, 1976.
(C) In the event of any change in the rules and regulations
of the Federal Communications Commission with respect to
syndicated and sports program exclusivity after April 15, 1976,
the rates established by section 111(d)(1)(B) may be adjusted to
assure that such rates are reasonable in light of the changes to
such rules and regulations, but any such adjustment shall apply
only to the affected television broadcast signals carried on
those systems affected by the change.
(D) The gross receipts limitations established by section
111(d)(1)(C) and (D) shall be adjusted to reflect national
monetary inflation or deflation or changes in the average rates
charged cable system subscribers for the basic service of
providing secondary transmissions to maintain the real constant
dollar value of the exemption provided by such section; and the
royalty rate specified therein shall not be subject to
adjustment.
(3) To distribute royalty fees deposited with the Register of
Copyrights under sections 111, 116, 119(b), and 1003, and to
determine, in cases where controversy exists, the distribution of
such fees.
(c) Rulings.--The Librarian of Congress, upon the recommendation of
the Register of Copyrights, may, before a copyright arbitration royalty
panel is convened, make any necessary procedural or evidentiary rulings
that would apply to the proceedings conducted by such panel, including--
(1) authorizing the distribution of those royalty fees collected
under sections 111, 119, and 1005 that the Librarian has found are
not subject to controversy; and
(2) accepting or rejecting royalty claims filed under sections
111, 119, and 1007 on the basis of timeliness or the failure to
establish the basis for a claim.
(d) Support and Reimbursement of Arbitration Panels.--The Librarian
of Congress, upon the recommendation of the Register of Copyrights,
shall provide the copyright arbitration royalty panels with the
necessary administrative services related to proceedings under this
chapter, and shall reimburse the arbitrators presiding in distribution
proceedings at such intervals and in such manner as the Librarian shall
provide by regulation. Each such arbitrator is an independent contractor
acting on behalf of the United States, and shall be hired pursuant to a
signed agreement between the Library of Congress and the arbitrator.
Payments to the arbitrators shall be considered reasonable costs
incurred by the Library of Congress and the Copyright Office for
purposes of section 802(h)(1).
(Pub. L. 94-553, title I, Sec. 101, Oct. 19, 1976, 90 Stat. 2594; Pub.
L. 99-397, Sec. 2(c), (d), Aug. 27, 1986, 100 Stat. 848; Pub. L. 100-
568, Sec. 11(1), Oct. 31, 1988, 102 Stat. 2860; Pub. L. 100-667, title
II, Sec. 202(4), Nov. 16, 1988, 102 Stat. 3958; Pub. L. 101-318,
Sec. 3(b), July 3, 1990, 104 Stat. 288; Pub. L. 102-563, Sec. 3(a)(1),
Oct. 28, 1992, 106 Stat. 4247; Pub. L. 103-198, Sec. 2(a), Dec. 17,
1993, 107 Stat. 2304; Pub. L. 104-39, Sec. 5(d)(1), Nov. 1, 1995, 109
Stat. 348; Pub. L. 105-80, Secs. 8(a), 12(a)(19), Nov. 13, 1997, 111
Stat. 1533, 1535; Pub. L. 105-304, title IV, Sec. 405(e)(1), Oct. 28,
1998, 112 Stat. 2902.)
References in Text
The date of enactment of this Act, referred to in subsec. (b)(2)(A),
is Oct. 19, 1976.
Amendments
1998--Subsec. (b)(1). Pub. L. 105-304 substituted ``sections
114(f)(1)(B), 115, and 116'' for ``sections 114, 115, and 116'' in
second sentence.
1997--Subsec. (b). Pub. L. 105-80, Sec. 12(a)(19)(A), substituted
``shall be as follows:'' for ``shall be--'' in introductory provisions.
Subsec. (b)(1). Pub. L. 105-80, Secs. 8(a)(1), 12(a)(19)(B), in
first sentence, substituted ``To make'' for ``to make'' and ``116, and
119'' for ``and 116''.
Subsec. (b)(2). Pub. L. 105-80, Sec. 12(a)(19)(C)(i), substituted
``To make'' for ``to make'' in introductory provisions.
Subsec. (b)(2)(D). Pub. L. 105-80, Sec. 12(a)(19)(C)(ii),
substituted ``adjustment.'' for ``adjustment; and'' at end.
Subsec. (b)(3). Pub. L. 105-80, Sec. 12(a)(19)(D), substituted ``To
distribute'' for ``to distribute''.
Subsec. (c). Pub. L. 105-80, Sec. 8(a)(2), substituted ``panel,
including--'' for ``panel'' and added pars. (1) and (2).
Subsec. (d). Pub. L. 105-80, Sec. 8(a)(3), amended subsec. (d)
generally. Prior to amendment, subsec. (d) read as follows:
``(d) Administrative Support of Copyright Arbitration Royalty
Panels.--The Library of Congress, upon the recommendation of the
Register of Copyrights, shall provide the copyright arbitration royalty
panels with the necessary administrative services related to proceedings
under this chapter.''
1995--Subsec. (b)(1). Pub. L. 104-39 substituted ``sections 114,
115, and 116'' for ``sections 115 and 116'' in two places in
introductory provisions.
1993--Pub. L. 103-198, Sec. 2(a)(1), amended section catchline
generally. Prior to amendment, catchline read as follows: ``Copyright
Royalty Tribunal: Establishment and purpose''.
Subsec. (a). Pub. L. 103-198, Sec. 2(a)(2), amended subsec. (a)
generally. Prior to amendment, subsec. (a) read as follows: ``There is
hereby created an independent Copyright Royalty Tribunal in the
legislative branch.''
Subsec. (b). Pub. L. 103-198, Sec. 2(a)(3)(A), (B), inserted heading
and substituted ``copyright arbitration royalty panels'' for
``Tribunal'' in introductory provisions.
Subsec. (b)(2)(A), (B). Pub. L. 103-198, Sec. 2(a)(3)(C)(i), (ii),
substituted ``copyright arbitration royalty panels'' for ``Commission''
in subpar. (A) and for ``Copyright Royalty Tribunal'' in subpar. (B).
Subsec. (b)(2)(D). Pub. L. 103-198, Sec. 2(a)(3)(C)(iii), inserted
``and'' after semicolon.
Subsec. (b)(3). Pub. L. 103-198, Sec. 2(a)(3)(D), substituted
``119(b), and 1003,'' for ``and 119(b),'' and struck out at end ``In
determining whether a return to a copyright owner under section 116 is
fair, appropriate weight shall be given to--
``(i) the rates previously determined by the Tribunal to provide
a fair return to the copyright owner, and
``(ii) the rates contained in any license negotiated pursuant to
section 116A of this title; and''.
Subsec. (b)(4). Pub. L. 103-198, Sec. 2(a)(3)(E), struck out par.
(4) which read as follows: ``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''.
Subsec. (c). Pub. L. 103-198, Sec. 2(a)(4), amended subsec. (c)
generally. Prior to amendment, subsec. (c) read as follows: ``As soon as
p
