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1 tervene within 20 days after such publication to intervene

2 in the action.

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"(d) AUTHORITY OF ARBITRAL PANEL TO ORDER

4 RELIEF.

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"(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 de

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cision, the panel shall order the deposit of such roy

alty 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

9 CIVIL ACTIONS AND REMEDIES.-Notwithstanding any 10 provision of section 1031 of this title, no civil action may 11 be brought or relief granted under section 1031 of this 12 title against any party to an ongoing or completed arbitra13 tion proceeding under this section, with respect to devices 14 or media that are the subject of such an arbitration pro15 ceeding. However, this subsection does not bar

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"(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 par

ties, prior to the commencement of such proceeding.

"(f) ARBITRAL COSTS.-Except as otherwise agreed

24 by the parties to a dispute, the costs of an arbitral pro25 ceeding under this section shall be divided among the par

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1 ties in such fashion as is considered just by the arbitral 2 panel at the conclusion of the proceeding. Each party to 3 the dispute shall bear its own attorney fees unless the ar4 bitral panel determines that a nonprevailing party has not 5 proceeded in good faith and that, as a matter of discretion, 6 it is appropriate to award reasonable attorney's fees to 7 the prevailing party.".

8 SEC. 3. TECHNICAL AMENDMENTS.

9 (a) Functions of Register.-Chapter 8 of title 17, 10 United States Code is amended

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(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

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(B) by striking "or 119" and inserting

"119, 1015, or 1016".

(b) DEFINITIONS.-Section 101 of title 17, United

4 States Code, is amended by striking "As used" and insert

5 ing "Except as otherwise provided in this title, as used". (c) MASK WORKS.-Section 912 of title 17, United

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7 States Code, is amended—

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(1) in subsection (a) by inserting "or 10" after "8"; and

"8".

(2) in subsection (b) by inserting "or 10" after

12 SEC. 4. EFFECTIVE DATE.

13

This Act, and the amendments made by this Act,

14 shall take effect on the date of the enactment of this Act 15 or January 1, 1992, whichever date is later.

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Mr. HUGHES. The Chair recognizes the distinguished ranking Republican, Mr. Moorhead.

Mr. MOORHEAD. Well, thank you, Mr. Chairman.

I join the chairman in welcoming Ralph Oman, the Register of Copyrights, here again, who has helped us so much on legislation, and to certainly welcome Barry Manilow and all of the other key people that are here from the recording industry and adjacent fields.

I would also like to commend the major industries affected by this legislation for their hard work in bringing this compromise agreement to Congress. It has been a long time in coming, and you are to be commended for your efforts.

This legislation would clearly help the equipment manufacturers and the record and electronic industries, but it is also important that we help the copyright owners, without whom there would be no need for this legislation.

It is also important that this legislation be in the best interest of the public. From the birth of this country, copyright and patent law have been primarily designed not to serve the interests of the creators but to serve the overall public interest. It is our purpose here this morning to make sure that H.R. 3204 strikes the proper balance between the public interest on one hand and the proprietary rights of the creators on the other.

I am looking forward to this morning's witnesses in this hearing, and certainly thank all of you who have come to help.

Thank you, Mr. Chairman.

Mr. HUGHES. I thank the gentleman.

Does the gentlelady from Colorado have an opening statement? Mrs. SCHROEDER. No. I am just delighted everybody worked so hard on this, Mr. Chairman, and I want to apologize because at 10 o'clock I have to go chair a hearing too. But I wanted to show my interest and show my thanks.

Mr. HUGHES. Thank you for joining us.

The gentleman from North Carolina.

Mr. COBLE. No opening statement, Mr. Chairman, just to extend a welcome to the panels, and I look forward to hearing them. I just received a call, so I may be like Mrs. Schroeder. I may have to go to another meeting. But thank you, Mr. Chairman.

Mr. HUGHES. Thank you.

Let me, if I might, just present our first witness. He is Mr. Ralph Oman, the Register of Copyrights and the Assistant Librarian for Copyright Services in the Library of Congress. Mr. Oman became Register in the fall of 1985. Prior to that he served as chief counsel for the Senate Subcommittee on Patents, Copyrights and Trademarks under the leadership of Senator Charles Mathias. Mr. Oman has done an excellent job of heading the Copyright Office, an entity of government critical to the creative community, the Congress, and to the public.

Mr. Oman is joined at the witness table by Ms. Dorothy Schrader, General Counsel of the Copyright Office, and I believe by

Mr. OMAN. Charlotte Givens Douglas, the Principal Legal Adviser to the General Counsel.

Mr. HUGHES. Charlotte, we welcome you likewise.

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