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cember 31 to file their petitions to require the review of those rates. That as of the present time Mr. Turner's petition is the only one filed, and we will wait until we hear from all of the parties or until December 31 to begin review of those rates.

We have two matters before the appellate courts at this time. The 1979, 1980, 1981 and 1982 distributions of cable royalty funds, representing approximately $150 million, have been consolidated for a final appellate review. Oral argument will be heard on May 6, of this year. We are hopeful that the appellate court will again affirm those distributions. The 1982 jukebox distribution is on appeal in the Second Circuit. Oral argument was held in February. We hope that the decision will be rendered within the next 3 months. Both of these appellate cases deal with rather complex legal issues, which I will be glad to address at the request of the committee.

The last part of my report is simply to state that I agree with Congressman Kastenmeier that the agency does need some reform. I also agree that the agency is very important, especially as the cable industry is growing and the other industries that we regulate continue to grow. I believe that this agency can function and do what it was set to do by Congress, which is to examine and study in detail all the intricate technical and economic concerns in compulsory licensing schemes. I believe that this is the best way to deal with compulsory licensing schemes.

I believe with professional support, with our legal counsel, and possibly support for him, with the hiring of an economist, if the committee will advise me as to how best to proceed in that area, with the hiring of some additional support we can do what Congress wants us to do in this area. I believe that possible legislation will be necessary to effectively carry out what Congress wants us to do in compulsory licensing, and I will answer questions in regard to how best to reform this agency.

Once again, I believe the Copyright Royalty Tribunal is necessary. The United States has always led the world in the production of entertainment. Our Copyright Royalty Tribunal can lead in the resolution of the many problems that are incumbent in the delivery of that entertainment to the people. With professional help and with the continued support of this congressional body, I believe we can do the job that Congress wants us to do.

That is the close of my summary statement, and I request that my full statement be admitted as given.

Mr. KASTENMEIER. Without objection, your statement in its entirety together with the appendices attached thereto shall be made part of the record.

[The statement of Ms. Hall follows:]

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Subcommittee on Courts, Civil Liberties

and the Administration of Justice

April 23, 1985

2:00p.m.

Respectfully submitted,

Marianne Mele Hall

Edward W. Ray
Mario F. Aguero

EXECUTIVE SUMMARY

OF PROPOSED TESTIMONY
OF CHAIRMAN MARIANNE MELE HALL

The Copyright Royalty Tribunal is composed of three Reagan appointees, Chairman Marianne Mele Hall, Commissioner Edward W. Ray and Commissioner Mario F. Aguero, one general counsel, Robert Cassler and three confidential aides who provide support services.

Our statutory responsibilities include rulemaking and adjudication. Our rulemaking involves setting royalty rates for the four compulsory licenses in the copyright Act which are for the use of copyrighted works by cable television, jukebox, public broadcasting, and phonorecords. Our adjudication involves the distribution of the fees collected pursuant to these licenses, for cable television and jukeboxes.

Our FY 86 budget request is for $758,000, an increase of $36,000 over FY 85. $531,000 will be reimbursed from the royalty fund.

We have recently automated our files to:

office and centralized our

1) maximize the use our limited staff,
2) ameliorate our recordkeeping and storage problems,
3) eliminate duplication of staff effort,

institute an agency memory,
5) provide better access to our master case files,
6) review, analyze and correct accounting procedures
and records regarding distributions.

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We have recently hired a general counsel and have used outside counsel to study and reform our hearing procedures.

With the aid of the Administrative Conference of the U.S., our general counsel is reviewing all the laws that pertain to this legislative branch agency for the purposes of rewriting our rules and instituting internal policy that better adheres to those other agency laws which, although not directly applicable, offer great guidance for internal Tribunal policy.

a

It is the opinion of Chairman Hall that the Tribunal should hire full-time economist under the statutory authority of $805( a). Commissioner Ray is in favor of utilizing the services of a part-time or outside economist, as needed.

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We have recently collected and enhanced our reference, search and archive materials.

We are adjudicating distributions for 1983 cable and jukebox funds. We are in the process of completing an informal rulemaking (rate-setting) for cost of living adjustment for the statutory cable rates. We anticipate a full-blown revisitation of the controversial 3.75% marketplace rate which was set in 1982 due to the FCC deregulation of distant signals and syndicated exclusivo ity. We will adjust the rate for noncommercial broadcasting in December 1985.

We

are awaiting appellate decisions on the 1979-82 cable distribution determinations and the 1982 jukebox determinations.

We are interacting actively with the public, Congress, other federal agencies, trade associations and prominent copyright and communications counsel.

We are consulting on foreign application of compulsory license, on domestic studies and on possible legislation.

I believe that the Copyright Royalty Tribunal is a vital organization with the clear purpose of relieving Congress of the intricate, technical details embodied in compulsory licensing schemes. With the acquisition of some professional staff and the establishment of a permanent chairmanship with authority to set internal policy, I believe this Tribunal can so relieve the congress. This will benefit Congress, the industries involved, the courts, the public, and can

an example to other tries.

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The United States has always led the world in the production of entertainment. We should lead the world in the resolution of the very difficult legal and economic problems incumbent in the delivery of that entertainment to the people.

Respectfully submitted,

al Marianne Mele Hall Chairman

COPYRIGHT ROYALTY TRIBUNAL

Oversight Hearing

April 23, 1985

Table of Contents

1. 2. 3.

.

Creation, History, Membership.
Statutory Responsibilities.
Budget.
General Administration

A. Office Automation-Centralization of files.
B. Professional Support

1. Legal.

2. Economic.
C. Reference, Research and Archive Materials.
Status of Proceedings

A. Current Calendar-Adjudication (Distribution).
B. Current Calendar-Rulemaking (Rate-Setting).

C. Appellate Proceedings.
Public Relations.
Consultations:

A. International China, Canada.

Domestic OTA, Legislative.

5.

6. 7.

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Appendices

A.
B.
C.
D.
E.

Biographical Sketches of Commissioners.
FY 86 Budget Request.
Summary History of Distributions.
Biographical Sketch of General Counsel.
Statement of General Counsel.

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