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116(a) not only provides “the operator of the coin-operated phonorecord player" with the opportunity of obtaining "a compulsory license to perform the work publicly on that phonorecord player," but also exempts entirely under certain conditions, “the proprietor of the establishment in which the public performance takes place." As provided by clause (1), the proprietor is not liable for infringement unless he is also "the operator of the phonorecord player" or unless he refuses or fails to disclose the operator's identity upon request.

As defined in section 116(e)(2), an "operator" is anyone who, alone or jointly: (1) owns a coin-operated phonorecord player; (2) “has the power to make the

player available for placement in an establishment for purposes of public performance"; and (3) "has the power to exercise primary control over the selection of the musical works made available for public performance" in the machine. Several different persons may be “operators" of the same coin-operated phonorecord player under this definition, but they would not include the "location owner" in the ordi. nary case where that person merely provides a place for the machine to be used.

In contrast to the present statute, which merely refers to a "coin-operated machine," section 116(e)(1) of the bill contains a detailed definition of "coin-operated phonorecord player.” Under the definition a machine or device would be considered a "coin-operated phonorecord player" only if it meets all four specified conditions.

1. It must be used for no purpose other than the "performance of nondramatic musical works by means of phonorecords" and, in order to perform that function, it must be “activated by the insertion of coins, currency, tokens, or other monetary units or their equivalent." The definition would thus exclude coin-operated radio and television sets, as well as devices similar to jukeboxes that perform musical motion pictures.

2. The establishment where the machine is located must make "no direct or indirect charge for admission." This requirement, which has its counterpart in section 1(e) of the present law (section 1(e) of former title 17), would exclude establishments making cover or minimum charges, and those “clubs" open to the public but requiring “membership fees" for admission.

3. The phonorecord player must be “accompanied by a list of the titles of all musical works available for performance on it," and the list must either be affixed to the machine itself or "posted in the establishment in a prominent position where it can be readily examined by the public.” This condition would not be satisfied if the list is available only on request.

4. Finally, the machine must provide "a choice of works available for performance," and must allow "the choice to be made by the patrons of the establishment in which it is located.” Thus, a machine that merely provides continuous music without af. fording any choice as to the specific composition to be played at a particular time, or a case where selections are made by someone other than patrons of the establishment, would be outside the scope of the definition,

Clause (2) of section 116(a) provides that a jukebox operator may obtain a compulsory license to perform copyrighted works by complying with the requirements of this section.

Procedures. Section 116(b)(1) sets forth the requirements that an operator must observe in order to obtain a compulsory license. The operator is required to file in the Copyright Office an application containing certain information and deposit with the Register of Copyrights an $8 royalty fee for each box. If performances on a particular box are made for the first time after July 1, the royalty fee for the remainder of the year shall be $4.00.

The Register of Copyrights is required to issue to the applicant a certificate for each machine and the

operator is required to affix the certificate to the par ticular box. Failure to observe these requirements ren ders the public performance an act of infringemen and fully liable for the statutory remedies.

Distribution of Royalties. Section 116(c) establishes the procedures for the distribution of the royalties paid by jukebox operators. During the month of January per sons who believe they are entitled to share in the roy alties shall file a claim with the Copyright Royalty Commission. After the first of October the Commis sion shall determine whether there exists a controversy concerning the distribution of the royalty fees. If i determines that there is no controversy, it shall, after deducting its reasonable administrative costs, distrib ute the fees to the respective claimants. If it determines that there is a controversy concerning the distribution of royalty fees, it shall conduct a hearing to determine the distribution of royalty fees, as provided in Chapter 8 [$ 801 et seq. of this title).

Section 116(c)(3) enumerates the formula for the distribution of royalty fees. With respect to the fees allocated to owners of copyright in nondramatic musical works, every copyright owner not affiliated with a performing rights society shall receive a pro rata share and the balance shall be allocated to be distributed in pro rata shares. The Commission is authorized to withhold an amount sufficient to satisfy all claims with respect to which a controversy exists, but shall have discretion to proceed to distribute any amounts that are not in controversy.

Section 116(c)(4) directs the Copyright Royalty Commission to promulgate regulations whereby those persons who can reasonably be expected to have claims may, without expense or harrassment of jukebox operators or the proprietors of establishments in which jukeboxes are located, have access to such establishments and to the boxes, to obtain information that may be reasonably necessary to determine the proportion of the contribution of the musical works of each person to the earnings of the particular jukebox. A person who is denied access to the establishment and the jukeboxes may bring an action in the United States District Court for the District of Columbia for the cancellation of the compulsory license of the jukebox to which access has been denied, and the court may declare the compulsory license invalid. This clause is not intended to authorize the Commission to impose any record-keeping requirements upon jukebox operators, or to require the installation in jukeboxes of any metering devices for counting the play of particular recordings.

Review of Royalty Rate. The provisions of Chapter 8 of this legislation (801 et seq. of this title) provides for the periodic review and adjustment of the statutory royalty rates, including those provided in section 116. Jukebox operators have sought to have the jukebox royalty rate excluded from the review procedures of Chapter 8 (3 801 et seq. of this title). This committee has accepted the $8 jukebox royalty in the expectation that it would be subject to periodic review.

REFERENCES IN TEXT The antitrust laws, referred to in subsec. (c)(2), are classified generally to chapter 1 (§ 1 et seq.) of Title 15, Commerce and Trade.


1988-Pub. L. 100-568, § 4(b)(1)(A), substituted "Compulsory licenses for public performances" for "Public performances" in section catchline.

Subsec. (a). Pub. L. 100-568, § 4(b)(1)(B), inserted "the performance of which is subject to this section as provided in section 116A,” after “in a phonorecord,”.

Subsec. (e). Pub. L. 100-568, § 4(b)(1)(C), inserted reference to section 116A.


(2) ARBITRATION.- Parties to such a negotiaAmendment by Pub. L. 100-568 effective Mar. 1, tion, within such time as may be specified by 1989, with any cause of action arising under this title the Copyright Royalty Tribunal by regulabefore such date being governed by provisions in tion, may determine the result of the negotiaeffect when cause of action arose, see section 13 of tion by arbitration. Such arbitration shall be Pub. L. 100-568, set out as a note under section 101 of

governed by the provisions of title 9, to the this title.

extent such title is not inconsistent with this CROSS REFERENCES

section. The parties shall give notice to the Action for infringement of copyright, see section 501

Copyright Royalty Tribunal of any determiof this title.

nation reached by arbitration and any such Determinations concerning adjustment of reasona determination shall, as between the parties to ble copyright royalty rates by Copyright Royalty Tri the arbitration, be dispositive of the issues to bunal, see section 801 of this title.

which it relates. Effective date of final determinations concerning proceedings involving distribution of royalty fees (d) LICENSE AGREEMENTS SUPERIOR TO COPYunder this section, see section 809 of this title.

RIGHT ROYALTY TRIBUNAL DETERMINATIONS.—LiExclusive rights in copyrighted work, see section 106 cense agreements between one or more copyof this title.

right owners and one or more operators of coinInstitution and conclusion of proceedings concerning adjustment of royalty rates as provided in this section,

operated phonorecord players, which are negosee section 804 of this title.

tiated in accordance with subsection (c), shall

be given effect in lieu of any otherwise applicaSECTION REFERRED TO IN OTHER SECTIONS

ble determination by the Copyright Royalty This section is referred to in sections 106, 116A, 501, Tribunal. 801, 804, 809 of this title; title 18 section 2319.

(e) NEGOTIATION SCHEDULE.-Not later than 60

days after the effective date of the Berne Con$ 116A. Negotiated licenses for public performances

vention Implementation Act of 1988, if the by means of coin-operated phonorecord players

Chairman of the Copyright Royalty Tribunal (a) APPLICABILITY OF SECTION.—This section has not received notice, from copyright owners applies to any nondramatic musical work em and operators of coin-operated phonorecord bodied in a phonorecord.

players referred to in subsection (c)(1), of the (b) LIMITATION ON EXCLUSIVE RIGHT IF LI date and location of the first meeting between CENSES NOT NEGOTIATED.

such copyright owners and such operators to (1) APPLICABILITY.-In the case of a work to commence negotiations authorized by subsecwhich this section applies, the exclusive right tion (c), the Chairman shall announce the date under clause (4) of section 106 to perform the and location of such meeting. Such meeting work publicly by means of a coin-operated may not be held more than 90 days after the efphonorecord player is limited by section 116 fective date of such Act. to the extent provided in this section.

(f) COPYRIGHT ROYALTY TRIBUNAL TO SUSPEND (2) DETERMINATION BY COPYRIGHT ROYALTY VARIOUS ACTIVITIES.-The Copyright Royalty TRIBUNAL.—The Copyright Royalty Tribunal, Tribunal shall not conduct any ratemaking acat the end of the 1-year period beginning on tivity with respect to coin-operated phonorecthe effective date of the Berne Convention ord players unless, at any time more than one Implementation Act of 1988, and periodically year after the effective date of the Berne Conthereafter to the extent necessary to carry

vention Implementation Act of 1988, the negoout subsection (f), shall determine whether or

tiated licenses adopted by the parties under

tiated licenses adopted by the pa not negotiated licenses authorized by subsec- this section do not provide permission to use a tion (c) are in effect so as to provide permis- quantity of musical works not substantially sion to use a quantity of musical works not smaller than the quantity of such works persubstantially smaller than the quantity of

formed on coin-operated phonorecord players such works performed on coin-operated pho

during the one-year period ending on the effecnorecord players during the 1-year period

tive date of such Act. ending on the effective date of that Act. If

(g) TRANSITION PROVISIONS; RETENTION OF the Copyright Royalty Tribunal determines

COPYRIGHT ROYALTY TRIBUNAL JURISDICTION.that such negotiated licenses are not so in

Until such time as licensing provisions are deeffect, the Tribunal shall, upon making the

termined by the parties under this section, the determination, publish the determination in

terms of the compulsory license under section the Federal Register. Upon such publication,

116, with respect to the public performance of section 116 shall apply with respect to musi

nondramatic musical works by means of coincal works that are not the subject of such ne

operated phonorecord players, which is in gotiated licenses.

effect on the day before the effective date of (c) NEGOTIATED LICENSES.

the Berne Convention Implementation Act of (1) AUTHORITY FOR NEGOTIATIONS.-Any 1988, shall remain in force. If a negotiated liowners of copyright in works to which this cense authorized by this section comes into section applies and any operators of coin-op- force so as to supersede previous determinaerated phonorecord players may negotiate tions of the Copyright Royalty Tribunal, as and agree upon the terms and rates of royalty provided in subsection (d), but thereafter is terpayments for the performance of such works minated or expires and is not replaced by anand the proportionate division of fees paid other licensing agreement, then section 116 among copyright owners, and may designate shall be effective with respect to musical works common agents to negotiate, agree to, pay, or that were the subject of such terminated or exreceive such royalty payments.

pired licenses.

(Added Pub. L. 100-568, $ 4(a)(4), Oct. 31, 1988, 102 Stat. 2855.)

REFERENCES IN TEXT The effective date of the Berne Convention Implementation Act of 1988, referred to in subsecs. (b)(2) and (e) to (g), is Mar. 1, 1989, see section 13 of Pub. L. 100-568, set out as an Effective Date of 1988 Amendment note under section 101 of this title.

EFFECTIVE DATE Section effective Mar. 1, 1989, with any cause of action arising under this title before such date being governed by provisions as in effect when cause of action arose, see section 13 of Pub. L. 100-568, set out as an Effective Date of 1988 Amendment note under section 101 of this title.

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 116, 801, 804 of this title.

is, the bundle of rights specified for other types of uses in section 106 and qualified in sections 107 through 116 and 118. With respect to the copyrightability of computer programs, the ownership of copy. rights in them, the term of protection, and the formal requirements of the remainder of the bill, the new statute would apply.

Under section 117, an action for infringement of a copyrighted work by means of a computer would necessarily be a federal action brought under the new title 17. The court, in deciding the scope of exclusive rights in the computer area, would first need to determine the applicable law, whether State statutory or common law or the Act of 1909. Having determined what law was applicable, its decision would depend upon its interpretation of what that law was on the point on the day before the effective date of the new statute.

AMENDMENTS 1980–Pub. L. 96-517 substituted provision respecting limitations on exclusive rights in connection with computer programs for prior provison enunciating scope of exclusive rights and use of the work in conjunction with computers and similar information systems and declaring owner of copyright in a work without any greater or lesser rights with respect to the use of the work in conjunction with automatic systems capable of storing, processing, retrieving, or transferring information, or in conjunction with any similar device, machine, or process, than those afforded to works under the law, whether this title or the common law or statutes of a State, in effect on Dec. 31, 1977, as held applicable and construed by the court in an action brought under this title.

CROSS REFERENCES Exclusive rights in copyrighted work, see section 106 of this title

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 106, 501 of this title; title 18 section 2319.

8 117. Limitations on exclusive rights: Computer pro

grams Notwithstanding the provisions of section 106, it is not an infringement for the owner of a copy of a computer program to make or authorize the making of another copy or adaptation of that computer program provided:

(1) that such new a copy or adaptation is created as an essential step in the utilization of the computer program in conjunction with a machine and that it is used in no other manner, or

(2) that such new copy or adaptation is for archival purposes only and that all archival copies are destroyed in the event that contin ued possession of the computer program should cease to be rightful.

Any exact copies prepared in accordance with the provisions of this section may be leased, sold, or otherwise transferred, along with the copy from which such copies were prepared, only as part of the lease, sale, or other transfer of all rights in the program. Adaptations so prepared may be transferred only with the authorization of the copyright owner. (Pub. L. 94-553. title I. & 101. Oct. 19. 1976. 90 Stat. 2565; Pub. L. 96-517, § 10(b), Dec. 12, 1980, 94 Stat. 3028.)


HOUSE REPORT NO. 94-1476 As the program for general revision of the copyright law has evolved, it has become increasingly apparent that in one major area the problems are not sufficiently developed for a definitive legislative solution. This is the area of computer uses of copyrighted works: the use of a work "in conjunction with automatic systems capable of storing, processing, retrieving, or transferring information." The Commission on New Technological Uses is, among other things, now engaged in making a thorough study of the emerging patterns in this field and it will, on the basis of its findings, recommend definitive copyright provisions to deal with the situation.

Since it would be premature to change existing law on computer uses at present, the purpose of section 117 is to preserve the status quo. It is intended neither to cut off any rights that may now exist, nor to create new rights that might be denied under the Act of 1909 or under common law principles currently applicable.

The provision deals only with the exclusive rights of a copyright owner with respect to computer uses, that

8 118. Scope of exclusive rights: Use of certain works

in connection with noncommercial broadcasting (a) The exclusive rights provided by section 106 shall, with respect to the works specified by subsection (b) and the activities specified by subsection (d), be subject to the conditions and limitations prescribed by this section.

(b) Not later than thirty days after the Copyright Royalty Tribunal has been constituted in accordance with section 802, the Chairman of the Tribunal shall cause notice to be published in the Federal Register of the initiation of proceedings for the purpose of determining reasonable terms and rates of royalty payments for the activities specified by subsection (d) with respect to published nondramatic musical works and published pictorial, graphic, and sculptural works during a period beginning as provided in clause (3) of this subsection and ending on December 31, 1982. Copyright owners and public broadcasting entities shall negotiate in good faith and cooperate fully with the Tribunal in an effort to reach reasonable and expeditious results. Notwithstanding any provision of the antitrust laws, any owners of copy. right in works specified by this subsection and any public broadcasting entities, respectively, may negotiate and agree upon the terms and rates of royalty payments and the proportionate division of fees paid among various copy

right owners, and may designate common agents to negotiate, agree to, pay, or receive

the provisions of this section, including the payments.

rates and terms established by the Copyright (1) Any owner of copyright in a work speci

Royalty Tribunal under subsection (b)(3), fied in this subsection or any public broad

engage in the following activities with respect casting entity may, within one hundred and

to published nondramatic musical works and twenty days after publication of the notice

published pictorial, graphic, and sculptural

works: specified in this subsection, submit to the Copyright Royalty Tribunal proposed 11

(1) performance or display of a work by or censes covering such activities with respect to

in the course of a transmission made by a such works. The Copyright Royalty Tribunal

noncommercial educational broadcast station shall proceed on the basis of the proposals

referred to in subsection (g); and submitted to it as well as any other relevant

(2) production of a transmission program, information. The Copyright Royalty Tribunal

reproduction of copies or phonorecords of shall permit any interested party to submit

such a transmission program, and distribution information relevant to such proceedings.

of such copies or phonorecords, where such (2) License agreements, voluntarily negoti

production, reproduction,' or distribution is ated at any time between one or more copy

made by a nonprofit institution or organizaright owners and one or more public broad

tion solely for the purpose of transmissions casting entities shall be given effect in lieu of specified in clause (1); and any determination by the Tribunal: Provided, (3) the making of reproductions by a govThat copies of such agreements are filed in ernmental body or a nonprofit institution of a the Copyright Office within thirty days of transmission program simultaneously with its execution in accordance with regulations that transmission as specified in clause (1), and the Register of Copyrights shall prescribe. the performance or display of the contents of

(3) Within six months, but not earlier than such program under the conditions specified one hundred and twenty days, from the date by clause (1) of section 110, but only if the reof publication of the notice specified in this productions are used for performances or dissubsection the Copyright Royalty Tribunal plays for a period of no more than seven days shall make a determination and publish in from the date of the transmission specified in the Federal Register a schedule of rates and clause (1), and are destroyed before or at the terms which, subject to clause (2) of this sub end of such period. No person supplying, in section, shall be binding on all owners of accordance with clause (2), a reproduction of copyright in works specified by this subsec a transmission program to governmental tion and public broadcasting entities, regard bodies or nonprofit institutions under this less of whether or not such copyright owners clause shall have any liability as a result of and public broadcasting entities have submit failure of such body or institution to destroy ted proposals to the Tribunal. In establishing such reproduction: Provided, That it shall such rates and terms the Copyright Royalty have notified such body or institution of the Tribunal may consider the rates for compara requirement for such destruction pursuant to ble circumstances under voluntary license this clause: And provided further, That if agreements negotiated as provided in clause

such body or institution itself fails to destroy (2) of this subsection. The Copyright Royalty

such reproduction it shall be deemed to have Tribunal shall also establish requirements by infringed. which copyright owners may receive reasonable notice of the use of their works under this (e) Except as expressly provided in this subsection, and under which records of such use section, this section shall have no applicability shall be kept by public broadcasting entities. to works other than those specified in subsec

(4) With respect to the period beginning on tion (b). the effective date of this title and ending on (1) Owners of copyright in nondramatic litthe date of publication of such rates and

erary works and public broadcasting entities terms, this title shall not afford to owners of may, during the course of voluntary negotiacopyright or public broadcasting entities any tions, agree among themselves, respectively, greater or lesser rights with respect to the ac as to the terms and rates of royalty payments tivities specified in subsection (d) as applied without liability under the antitrust laws. to works specified in this subsection than Any such terms and rates of royalty paythose afforded under the law in effect on De ments shall be effective upon filing in the cember 31, 1977, as held applicable and con

Copyright Office, in accordance with regulastrued by a court in an action brought under tions that the Register of Copyrights shall this title.

prescribe. (c) The initial procedure specified in subsec (2) On January 3, 1980, the Register of tion (b) shall be repeated and concluded be Copyrights, after consulting with authors and tween June 30 and December 31, 1982, and at other owners of copyright in nondramatic litfive-year intervals thereafter, in accordance erary works and their representatives, and with regulations that the Copyright Royalty with public broadcasting entities and their Tribunal shall prescribe.

representatives, shall submit to the Congress (d) Subject to the transitional provisions of a report setting forth the extent to which volsubsection (b)(4), and to the terms of any vol untary licensing arrangements have been untary license agreements that have been nego reached with respect to the use of nondramatiated as provided by subsection (b)(2), a public tic literary works by such broadcast stations. broadcasting entity may, upon compliance with The report should also describe any problems

that may have arisen, and present legislative or other recommendations, if warranted.

(f) Nothing in this section shall be construed to permit, beyond the limits of fair use as provided by section 107, the unauthorized dramatization of a nondramatic musical work, the production of a transmission program drawn to any substantial extent from a published compilation of pictorial, graphic, or sculptural works, or the unauthorized use of any portion of an audiovisual work.

(g) As used in this section, the term “public broadcasting entity" means a noncommercial educational broadcast station as defined in section 397 of title 47 and any nonprofit institution or organization engaged in the activities described in clause (2) of subsection (d). (Pub. L. 94-553, title I, 101, Oct. 19, 1976, 90 Stat. 2565.)


HOUSE REPORT NO. 94-1476 General Background. During its consideration of revision legislation in 1975, the Senate Judiciary Committee adopted an amendment offered by Senator Charles McC. Mathias. The amendment, now section 118 of the Senate bill (this section), grants to public broadcasting a compulsory license for use of nondramatic literary and musical works, as well as pictorial, graphic, and sculptural works, subject to payment of reasonable royalty fees to be set by the Copyright Royalty

Tribunal established by that bill. The Mathias amendment requires that public broadcasters, at periodic intervals, file a notice with the Copyright Office containing information required by the Register of Copy. rights and deposit a statement of account and the total royalty fees for the period covered by the statement. In July of each year all persons having a claim to such fees are to file their claims with the Register of Copyrights. If no controversy exists, the Register would distribute the royalties to the various copyright owners and their agents after deducting reasonable administrative costs; controversies are to be settled by the Tribunal.

On July 10, 1975, the House Subcommittee heard testimony on the Mathias amendment from representatives of public broadcasters, authors, publishers, and music performing rights societies. The public broadcasters pointed to Congressional concern for the development of their activities as evidenced by the Public Broadcasting Act (47 U.S.C. 390 et seq.). They urged that a compulsory license was essential to assure public broadcasting broad access to copyrighted materials at reasonable royalties and without administratively cumbersome and costly "clearance" problems that would impair the vitality of their operations. The opponents of the amendment argued that the nature of public broadcasting has changed significantly in the past decade, to the extent that it now competes with commercial broadcasting as a national entertainment and cultural medium. They asserted that the performing rights society arrangements under which copy. righted music is licensed for performance removed any problem in clearing music for broadcasting, and that voluntary agreements could adequately resolve the copyright problems feared by public broadcasters, at less expense and burden than the compulsory license, for synchronization and literary rights. The authors of literary works stressed that a compulsory licensing system would deny them the fundamental right to control the use of their works and protect their reputation in a major communications medium.

General Policy Considerations. The Committee is cognizant of the intent of Congress, in enacting the Public Broadcasting Act on November 7, 1967 (47 U.S.C. 390

et seq.), that encouragement and support of noncommercial broadcasting is in the public interest. It is also aware that public broadcasting may encounter problems not confronted by commercial broadcasting enterprises, due to such factors as the special nature of programming, repeated use of programs, and, of course, limited financial resources. Thus, the Committee determined that the nature of public broadcasting does warrant special treatment in certain areas. However, the Committee did not feel that the broad compulsory license provided in the Senate bill is necessary to the continued successful operation of public broad. casting. In addition, the Committee believes that the system provided in the Senate bill for the deposit of royalty fees with the Copyright Office for distribution to claimants, and the resolution of disputes over such distribution by a statutory tribunal, can be replaced by payments directly between the parties, without the intervention of government machinery and its attendant administrative costs.

In general, the Committee amended the public broadcasting provisions of the Senate bill toward attainment of the objective clearly stated in the Report of the Senate Judiciary Committee, namely, that copyright owners and public broadcasters be encouraged to reach voluntary private agreements.

Procedures. Not later than thirty days following the publication by the President of the notice announcing the initial appointments to the Copyright Royalty Commission (specified in Chapter 8 (8 801 et seq. of this title]), the Chairman of the Commission is to publish notice in the Federal Register of the initiation of proceedings to determine “reasonable terms and rates” for certain uses of published nondramatic musical works and published pictorial, graphic and sculptural works, during a period ending on December 31, 1982.

Copyright owners and public broadcasting entities that do not reach voluntary agreement are bound by the terms and rates established by the Commission, which are to be published in the Federal Register within six months of the notice of initiation of proceedings. During the period between the effective date of the Act (Jan. 1, 1978) and the publication of the rates and terms, the Committee has preserved the status quo by providing, in section 118(b)(4), that the Act does not afford to copyright owners or public broadcasting entities any greater or lesser rights with respect to the relevant uses of nondramatic musical works and pictorial, graphic, and sculptural works than those afforded under the law in effect on December 31, 1977.

License agreements that have been voluntarily negotiated supersede, as between the parties to the agreement, the terms and rates established by the Commission, provided that copies of the agreements are properly filed with the Copyright Office within 30 days of execution. Under clause (2) of section 118(b), the agreements may be negotiated "at any time"--whether before, during, or after determinations by the Commission.

Under section 118(c), the procedures for the Commission's establishing such rates and terms are to be repeated in the last half of 1982 and every five years thereafter.

Establishment of Reasonable Terms and Rates. In establishing reasonable terms and rates for public broadcasting use of the specified works, the Commission, under clause (b)(1) of section 118 is to consider proposals timely submitted to it, as well as “any other relevant information", including that put forward for its consideration “by any interested party."

The Committee does not intend that owners of copyrighted material be required to subsidize public broadcasting. It is intended that the Commission assure a fair return to copyright owners without unfairly burdening public broadcasters. Section 118(b)(3) provides that "the Commission may consider the rates for comparable circumstances under voluntary license agree

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