the Society's statement. I have spent 37 years in industry and retired as Vice President of Hercules Incorporated on July 1, 1971, to accept the position of Deputy Assistant Secretary of Commerce for Science and Technology. I resigned from that position on December 1, 1972, on acceptance of my present appointment. Accompanying me today are Dr. Richard L. Kenyon, Director of the Public, Professional and International Communication Division, Dr. Stephen T. Quigley, Director of the Department of Chemistry and Public Affairs, and Mr. William B. Butler, representing Mr. Arthur B. Hanson, General Counsel of the Society.

We appreciate being given this opportunity to comment on certain features of the Copyright Revision Bill, H.R. 2223. The issues addressed by this legislation are both fundamental to the formulation of national science policy, and of vital significance with respect to the ability of our Society to resolve many of the problems which confront it. These issues have been under discussion for some time now by the Committee on Copyrights of the Board of Directors and Council of the American Chemical Society, as well as by other similar scientific societies, and a general consensus on them has been under development. This consensus has been developed in the context that the protection of copyrighted material will "promote the Progress of Science and Useful Arts", as specified in Article I, Section 8, Clause 8 of the Constitution of the United States. The viewpoint which we attempt to express is that of the chemical, scientific and technological community, as represented by the American Chemical Society.

The American Chemical Society is incorporated by the Federal Congress as a non-profit, membership, scientific, educational society composed of chemists and chemical engineers, and is exempt from the payment of Federal income taxes under section 501(c)(3) of the Internal Revenue Code of 1954, as amended.

The American Chemical Society consists of more than 107,000 such above described members. Its Federal Charter was granted by an Act of the Congress in Public Law 358, 75th Congress, 1st Session, Chapter 762, H.R. 7709, signed into law by President Franklin D. Roosevelt on August 25, 1937, to become effective from the first day of January, 1938.

Section 2 of the Act is as follows:

"Sec. 2. That the objects of the incorporation shall be to encourage in the broadest and most liberal manner the advancement of chemistry in all its branches; the promotion of research in chemical science and industry; the improvement of the qualifications and usefulness of chemists through high standards of professional ethics, education, and attainments; the increase and diffusion of chemical knowledge; and by its meetings, professional contacts, reports, papers, discussions, and publications, to promote scientific interests and inquiry, thereby fostering public welfare and education, aiding the development of our country's industries, and adding to the material prosperity and happiness of our people."

Its Federal incorporation replaced a New York State Charter, which had been effective since November 9, 1877.

One of the principal objects of the Society, as set forth in its Charter, is the dissemination of chemical knowledge through its publications program. The budget for the Society for the year 1975 exceeds $39,000,000 of which more than $30,000,000 is devoted to its publications program.

The Society's publication program now includes three magazines and seventeen journals, largely scholarly journals that contain reports of original research from such fields as medicinal chemistry, biochemistry, and agricultural and food chemistry, as well as a weekly newsmagazine designed to keep chemists and chemical engineers abreast of the latest developments affecting their science and related industries. In addition, the Society is the publisher of Chemical Abstracts, one of the world's most comprehensive abstracting and indexing services. The funds to support these publications are derived chiefly from subscriptions.

The journals and other published writings of the Society serve a very important function, namely: they accomplish the increase and diffusion of chemical knowledge from basic science to applied technology. In so doing, they must generate revenue, without which the Society could not support and continue its publications program in furtherance of its Congressional Charter to serve the science and technology of chemistry. The protection of copyright has proved an essential factor in the growth and development of the scientificpublishing program of the Society.

The twenty periodical publications of the Society produce more than 40,000 pages a year and subscriptions in 1974 totalled 323,000. Chemical Abstracts annually produces more than 140,000 pages which go to 5,500 subscribers. Its

abstracts number in excess of 361,000 yearly and its documents indexed in excess of 425,000. The single greatest source of income for all ACS publications is subscription revenue.

As is indicated by the objectives of the American Chemical Society, we believe that the effective dissemination of scientific and technical information is critical to the development, not only of the society and economy of the U.S.A., but also of modern society worldwide.

These journals provide the knowledge base for technical development of answers to urgent problems facing the United States and the rest of the world, such as the energy crisis, the world food problem, the delivery of adequate health services, and pollution abatement. It is critically important that this system for organizing, evaluating, and providing scientific information remain healthy.

Scholarly journals are the major instruments for dissemination and recording of scientific and technical information. These journals are expensive to produce. If the costs are not supported financially by those who make use of them they cannot continue. There is no adequate substitute in sight.

The scholarly scientific or technical journal is more than merely a repository of information. The scientific paper is the block with which is built our understanding of the workings of the world around us. In his papers, each scientist records his important findings for the permanent record. His successors then have that knowledge precisely recorded and readily available as a base from which they may start. So the process continues in a step-by-step fashion from scientific generation to scientific generation, each worker having available to him or her the totality of the knowledge developed up to that time. Each scientist stands upon the shoulders of his predecessors.

But this analogy of simple physical structure is inadequate, for at least of equal importance is the continuous refinement that takes place. Before new knowledge is added to the record, it is reviewed, criticized and edited by authoritative scholars; then, once published, it is available in the record for continued use, criticism, and refinement. New findings make possible the revelation of weaknesses in the earlier arguments and conclusions, so that as the structure of scientific knowledge is built higher it is also made stronger by the elimination of flaws. While it has been said that mankind is doomed to repeat its mistakes, the system of scientific recording in journals is designed to prevent the repetition of such mistakes and to avoid building upon erroneous conclusions. The scholarly journal record is the instrument for insuring this refining process.

In addition, journal papers form an important part of the basis upon which a scientist's standing among his peers is judged. For this reason, scientific scholars are willing to give their time and effort to help produce these evaluated records and are also willing to leave the management of the copyright on their papers in the hands of the scientific societies. These scholars are rarely concerned with private income from their published papers, but they are vitally concerned with the preservation of the intrinsic value of the scientific publishing system. Publishing costs have risen and are rising continuously, making the continuation of the scientific-journal system increasingly difficult. This has been recognized by the U.S. Government in acknowledging the philosophy that scientific-research work is not complete until its results are published, and in establishing a policy which makes it proper that money may be used from federal support of research projects to help to pay the cost of journal publication. It is this policy which provides most of the funds for paying page charges, charges originally designed to pay the cost of bringing the research journal through the editing, composition, and other production steps, up to the point of being ready to print. However, publishing costs are now so high that these page charges no longer pay even for these initial parts of the publishing process. American Chemical Society records in 1974 show that page charges supported one-third or more of those costs for fewer than 30% of ACS journals.

Publishing costs must be shared by the users. If these users are allowed, without payment to the journal, to make or to receive from others copies of the journal papers they may wish to read, it is not likely they will be willing to pay for subscriptions to these journals. If and as free photocopying of journals proceeds, the number of subscribers will shrink, and subscription prices will have to rise. The reduction of subscription income may continue to the point of financial destruction of these journals.

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The problems of the commercial publishers of many good scientific journals are even more severe, because these publishers do not have the moderate assistance of page charges.

The doctrine of fair use, developed judicially but not legislatively, has long been useful to the scholar, for it has allowed him to make excerpts to a limited extent for purposes of the files used in his research. However, the modern technology of reprography has offered such mechanical efficiency and capacity for copying that it is presently endangering the protection given the foundations of the scholarly journal by copyright. "Excerpts," instead of being notes, sentences, or paragraphs, are being interpreted to mean full scientific papers, the aforementioned building blocks.

As the copyrighted journal system developed, it was agreed long ago that the scholar should be allowed to hand-copy excerpts for use as background information. As a further step, authors became accustomed to ordering the reprints of their papers to send to their colleagues as a means of assuring a good record of the progress of work in the field concerned. This was followed, 20-30 years ago, by some minor use of the old "Photostat" machine. While that process strained a little the proprieties of copyright, it was fairly generally agreed that the mechanics of the practice were such as to help the research scientist while difficult and costly enough not to undermine the basic structure of the journal system.

We hold no objection to a scholar himself occasionally making a single copy in a non-systematic fashion for use in his own research. However, in the past decade the techniques of reprography have advanced to such an extent that third parties, human and mechanical, are beginning to be involved in a substantial way. It now is practical to build what amounts to a private library through rapid copying of virtually anything the scholar thinks he might like to have at hand. While this process has obviously personal advantages, it is now being done extensively and increasingly, without any contribution from these scholars or the libraries which copy for them-to the cost of developing and maintaining the basic information system that makes it possible. Even conservative projections of the development of reprographic techniques within the next decade make it clear that the economic self-destruction of the system within the next decade is a real possibility. Overly permissive legislation could make this destruction a certainty.

Use of a journal by an individual for extracting from it with his own hands, by hand-copying the material specifically needed and directly applicable to his research, is one thing. A practice in which an agent, human or mechanical, acts as copier for an individual or group of individuals wishing to have readily available, without cost, copies of extensive material more or less directly related to his or their studies and research, is quite a different matter. The latter is certainly beyond justification on the mere grounds that technology has made it convenient, or that the purposes are socially beneficial.

Documented evidence of the increase in photocopying is found in "A Study of the Characteristics, Costs, and Magnitude of Inter Library Loans in Academic Libraries," published in 1972 by the Association of Research Libraries. There we find that in 1969-70 the material from periodicals sent out in response to requests for "interlibrary loans" filled by the academic libraries surveyed was $3.2 percent in photocopy form as compared with 15.2 percent in original form and 1.4 percent in microform.

In that same report the volume of interlibrary loan activities from academic libraries is traced. It grew from 859,000 requests received by academic lending libraries in 1965-66 to 1,754,000 in 1969-70, and is projected to reach 2,646,000 in 1974-75.

Much thinking and study are being devoted to systems for improving access to periodicals resources through networks. These networks would make the scientific information available widely and rapidly from a relatively small number of original journal copies. In "Access to Periodical Resources: A National Plan", by Vernon E. Palmour, Marcia C. Bellassai, and Lucy M. Gray, a report prepared at the request of the Association of Research Libraries, it is stated that a number of advantages accrue to the provision of photocopies instead of originals. "Supply of photocopies." the report states, "is more es sentially a 'mail order' or merchandising rather than a lending operations." It

is also noted that "A single copy, or in some cases a few copies, at a center can meet, without undue delay, the needs of a large number of users."

In viewing the possible growth of service by a National Periodical Resources Center, the authors estimated that from a collection of ten thousand titles, the demand would grow starting in the range of 58,000 to 75,000 in the first year to a range of 2,281,000 to 5,462,000 in the tenth year, with 90 percent of the request being filled by photocopies.

Such estimates as these show expectations of a great growth in use of photocopied material. Obviously the direct uses of the printed journal would be very small.

These data give some indication of the trends in use made of the published literature without contribution of any share of the very considerable cost of evaluating, organizing, and publishing it.

In another report, "Methods of Financing Interlibrary Loan Services," by Vernon E. Palmour, Edwin E. Olson, and Nancy K. Roderer, a fee system is suggested as a practical possibility with the fee initially set at $3.50, about half the full cost recovery, and gradually increasing toward providing the full cost. No consideration is given in this suggestion to payment of a fee to the publishers from whose periodicals the copies are made. An adequate additional fee, paid into a clearinghouse and distributed to the appropriate publishers, could spread the full cost of support of a journals system equitably over the users.

It is desirable that use be made of modern technology in developing optimum dissemination. This technology includes the use of modern reprography, but as technology inherently includes economics the means of financial support of the system must be a part of its design. Therefore, photocopying systems must include an adequate means of control and payment to compensate publishers for their basic editorial and composition costs. Otherwise, "fair use" or libraryphotocopying loopholes, or any other exemptions from the copyright control for either profit or non-profit use, will ultimately destroy the viability of scientific and technical publications or other elements of information dissemination systems.

The copyright law is directed to the interest of the public welfare. It is not in the interest of the public welfare to modify the copyright laws so as to allow the economic destruction of the scientific and technical information system.

The American Chemical Society is properly concerned with the clarity and vitality of the copyright laws of the United States and of the world. These laws have provided a sound basis for the continuity of scientific communication programs, including at present the primary and secondary journals, microforms, and computerized information systems.

The Society recognizes that its members and others concerned with its publications are both "authors" and "users" of information, and that it is the Society's objective to serve their needs as fully as possible. It recognizes the functions and problems of such vital information channels as libraries, information centers, and information systems and networks. It further recognizes the challenges offered by technological advances in communication techniques. However, scientific communication programs cannot continue without proper funding, and in the immediate future this funding must continue to come from "authors" and "users." "Page charges" are an acceptance of the philosophy that "authors" (or their employers) must share in the funding of the communication process, and that publication of findings is the final step in the completion of a significant study. "Users" have traditionally paid their share through personal and employer (library) subscriptions to printed publications, but "technology" and "networks" are changing the need for multiple or even local copies, making it all the more vital that revenue be obtained in relation to direct use, wherever and however provided.

Because law is the basis for order among individuals, organizations, and nations, the Society believes that the laws which affect communicaton-information transfer-must be equitable and clear, and that they must be periodically reviewed to maintain these qualities. The copyright law of the United States has not been seriously updated since 1909, and it is badly in need of revision. Its antiquity is the direct cause for present ethical and judicial arguments over what is "fair" or "free" as regards communication-arguments which obscure the basic rights of authorship; the "value added" factors in reviewing, editing, publishing, and information-base creation; and the fact that the real problem

is inadequate funding at most stages of the communication process (including libraries).

The Society has repeatedly and clearly stated its need for copyright protection against continuation and growth of "uncontrolled dissemination of scientific information"-the unauthorized regular or systematic or concerted singlecopy republishing of Society papers by libraries or networks of libraries. The Society is opposed to copyright-law revisions relating to "copying" that would destroy the copyright protection for its publication programs.

Until communication issues can be further clarified, the Society would prefer that "fair use" remain a judicial rather than a legislative concept. The Society is specifically opposed to any definition of "fair use" that could be further interpreted as permitting unauthorized, concerted "single copying" (photocopying, electronic copying, etc.).

The Society recognizes the need to develop total systems for information transfer; therefore, it specifically opposes any broadening or interpretation of the definition of or the right to prepare a "derivative work" that would reserve to "authors" (primary publications) the right to control the writing of original informative abstracts that are not complete "abridgments" or "condensations." However, the latter are accepted as being fully protected derivative works; they are of significance to the Society's future primary publication of “short papers."

The Society advocates immediate copyright-law revisions that will more completely and explicitly define and continue to protect such technological developments as computerized information bases, computerized data bases, computer programs, and microforms, i.e., that will define and specify these as "Exclusive Rights in Copyrighted Works." Because the scope and importance of these technological developments are already extensive, the Society no longer advocates deferring related copyright-law revisions until after the studies and recommendations of the National Commission on New Technological Uses of Copyrighted Works. In particular, the Society firmly advocates revisions which clarify and continue the protection of copyrighted computer bases at time of input, on the basis that copyright control at output only might be limited severely by broad interpretations of "fair use."

The Society opposes most of the specific additional limitations on the exclu sive rights of authors and their publishers to provide copies of copyrighted publications that are contained in recent legislative bills. As proposed, these limitations do not really meet the needs of "users" and libraries for uncomplicated copying.

The Society recognizes that these and other limitations on exclusive rights to provide copies are based on the very real desire of "users," and libraries in their behalf, to avail themselves of such "new technology" as photocopying to prepare or obtain copies of copyrighted documents quickly and easily. The Society has repeatedly declared its readiness to cooperate in the development of a clearinghouse that can grant such permissions in an equitable and simple manner and is presently working actively toward this goal through the Conference on the Resolution of Copyright Issues under the chairmanship of Barbara Ringer, Register of Copyrights, and Fred Burkhardt, Chairman of the National Commission on Libraries and Information Science. The Society also advocates the development of "document-access networks" that will quickly supply actual copies in an equitable manner. The Society therefore advocates copyright-law provisions that will equitably authorize and regulate such important services to "users."

Despite reservations on some segments of this bill, the American Chemical Society recommends passage of the sections of H.R. 2223 related to the library photocopying. This recommendation is made with the belief, based on work with the Conference on the Resolution of Copyright Issues, that a practicable system for licensing and fee collection for photocopies of copyrighted works can be developed which will render fair and equitable charges for systematic photocopying in the interest of an improved and economically viable system for the dissemination of scientific information. Plans now are being developed for testing such a mechanism.

Mr. DANIELSON. I believe the next gentleman is Mr. Hoopes, president of the Association of American Publishers.