-7 Improve operations and service that will achieve better processing times and create timely public records; • Enhance operational efficiency through the use of new or alternative technologies; • Contain the costs of registration, recordation and other services; • Strengthen security within the Copyright Office; and Use staff and space more efficiently. In fiscal 2001, the Project Manager is leading a team of twelve Copyright Office staff and several Price WaterhouseCoopers contractor staff to document the current environment, plan new processes, and develop an implementation plan. The Office plans to complete the study with a final implementation plan to be completed by the end of this month. We are requesting authority to spend $380,000 from our No-Year account for human resource actions (e.g., re-writing position descriptions, performing job analyses) as well as staff training to retool the workforce. Contractors will be hired to perform space design, re-write position descriptions, and some funds will be used for purchasing automation equipment and software. The Copyright Office Mission The Copyright Office administers the copyright law and is the primary source of copyright expertise in the Federal Government. It provides expert assistance to Congress on intellectual property matters and advises Congress on anticipated changes in U.S. copyright law. It analyzes and assists in the drafting of copyright legislation and legislative reports, conducts and provides studies for Congress and offers advice to -8 Agreement. The Office works with the State Department, the U.S. Trade Representative's Office, and the Patent and Trademark Office in providing technical expertise in negotiations for international intellectual property agreements; provides technical assistance to other countries in developing their own copyright laws; and through its International Copyright Institute and other international work, promotes worldwide understanding and cooperation in providing protection for intellectual property. The Copyright Office is also an office of central public record, a place where claims to copyright are registered and where documents relating to copyright may be recorded. The Copyright Office furnishes information about the provisions of the copyright law and the procedures for registration, explains the operations and practices of the Copyright Office, and makes available the public records of the Office. The Office also administers various compulsory licensing provisions of the law, which includes collecting and distributing royalties. Additionally, the Copyright Office and the Library of Congress administer the Copyright Arbitration Royalty Panels (CARP), which meet for limited times for the purpose of setting terms of certain licenses, adjusting rates and distributing royalties. Given its role as administrator of the copyright law, creator of a central public record of copyright ownership, technical adviser to Congress and government agencies, and a source of copyright information to the public, the Copyright Office has a direct and vital role in the development and resolution of intellectual property policy, legislation and information. Copyright Industries - A Growing Force in The U.S. Economy Copyright is the segment of intellectual property law that protects the creative output of millions of composers, lyricists, painters, sculptors, photographers, authors, computer programs, graphic and performing -9 artists, dramatists, motion picture producers and compilers. U.S. copyright industries accounted for about 5% of U.S. Gross Domestic Product (GDP), or over $450 billion in added economic value in 1999. In the last twenty years, the core copyright industries' share of GDP grew more than twice as fast as the rest of the economy. Should this trend continue as expected, the economic impact of the copyright industries will become an even more significant part of the American economy, emphasizing the need for strong copyright protection, and bringing to the fore increasingly challenging issues with which the copyright system must deal. Copyright Policy Challenges: Technological Change and the Digital Environment Throughout the second half of the 20th century, the copyright law has had to adjust to a vast array of technological changes. The challenges to copyright posed by the convergence of today's computer and communications technologies are more serious and far-reaching than those posed by the technological developments of the past. The current technologies have the potential to impact every right in the copyright bundle. The increasing use and distribution of digital information raise significant issues regarding access to and security of copyrighted works. For works available in electronic form, there is often no limit to the number of people who can access a work simultaneously through the Internet and alter or modify them with ease. The Constitution provides for intellectual property protection with the goal of promoting public access to knowledge and innovation. The information infrastructure of the World Wide Web and other computer networks requires careful maintenance of the public good and private interest balance that has guided U.S. -10 Fiscal 2000 Accomplishments, Fiscal 2001 Focus and Fiscal 2002 Plans Policy Responsibilities Under the Digital Millennium Copyright Act A major focus of the Copyright Office's legislative efforts during fiscal 2000 and in fiscal 2001 continued to be the completion of tasks entrusted to us by Congress in the Digital Millennium Copyright Act (DMCA), P. L. 105-304. The DMCA placed several policy-related responsibilities on the Office, including specific studies and rulemakings. The DMCA made a number of amendments to Titie 17, including the addition of Chapter 12 of the copyright statute, which address technological protection and management systems for copyrighted works. Section 1201(a)(1) makes it unlawful to circumvent a technological measure that effectively controls access to a copyrighted work. However, the prohibition against circumvention does not apply to users of a copyrighted work which is in a particular class of works, if those users are, or are likely to be in the succeeding 3-year period, adversely affected by the prohibition in their ability to make noninfringing uses of that particular class of works. The determination of what classes of works, if any, are subject to this exception is made by the Librarian of Congress on the recommendation of the Register of Copyrights, who conducts a rulemaking proceeding to identify any such classes of works. The initial rulemaking was begun in 1999. After consultation with the Assistant Secretary of Commerce for Communications and Information, the Register made her recommendation to the Librarian of Congress. He accepted the recommendation and published two classes of works subject to the exemption on October 27, 2000. Rulemaking proceedings are to be -5 collections through copyright registration and through the mandatory deposit provisions of section 407 of the copyright law. Our newly-formed Copyright Office Information Systems Working Group has just begun its work. So that this critical initial planning can be completed and specific resource requirements identified, I am requesting a modification in our Fiscal Year 2002 request. Until we revise our overall IT strategy to respond to our new business processes, I believe we should not proceed with funding for the CORDS Full Large-Scale Production System, as requested in our original submission. We do need to maintain the CORDS system so that we can continue to provide an electronic registration option for those now using it and others who wish to. I expect that usage of the current CORDS system will increase in terms of the number of users and quantity and types of works registered. Yet, we do not want to accelerate further development of CORDS until we establish an overall electronic delivery of services strategy. As discussed in the Librarian's recent reprogramming letter for the Copyright Office, I request the Office proceed as follows: that Permanently reprogram $620,000 savings from Marking and Tagging in Fiscal Year 2001 to |