34 1 annual retail sales of phonorecords in which musical works 2 or sound recordings of musical works are embodied. 3 "(2) Notwithstanding the existence of a negotiated 4 arrangement that has gone into effect under this 5 subsection 6 7 8 9 10 11 12 1 2 3 4 13 14 15 "(A) any interested manufacturing party that is not a party to such negotiated arrangement may fully satisfy its obligations under this subchapter by complying with the procedures set forth in section 1011 of this title; and "(B) the Tribunal shall ensure that alternative distribution procedures are available for any interested copyright party that is not a party to such negotiated arrangement. "(c) MAINTENANCE OF JURISDICTION BY TRIBU16 NAL.-Where a negotiated arrangement has gone into ef17 fect under this section, the Tribunal shall maintain juris18 diction to hear and address any objections to the arrange19 ment that may arise while it is in effect, and to ensure 20 the availability of alternative procedures for any interested 21 manufacturing party or interested copyright party that is 22 not a participant in the negotiated arrangement. •HR $204 IH 35 1 2 "SUBCHAPTER C-THE SERIAL COPY MANAGEMENT SYSTEM 3 "§1021. Incorporation of the serial copy management 4 5 system "(a) PROHIBITION ON IMPORTATION, MANUFAC 6 TURE, AND DISTRIBUTION.— "(1) No person shall import, manufacture, or distribute any digital audio recording device or any digital audio interface device that does not conform to the standards and specifications to implement the Serial Copy Management System that are— "(A) set forth in the technical reference document; "(B) set forth in an order by the Secretary of Commerce under section 1022 (b)(1), (2), or. (3) of this title; or "(C) in the case of a digital audio recording device other than a device defined in part II of the technical reference document or in an order issued by the Secretary pursuant to section 1022(b) of this title, established by the manufacturer (or, in the case of a proprietary technology, the proprietor of such technology) so as to achieve the same functional character istics with respect to regulation of serial copy 1 2 3 4 5 6 7 8 9 10 11 12 13 36 ing as, and to be compatible with the prevailing method for implementation of, the Serial Copy Management System set forth in the technical reference document or in any order of the Secretary issued under section 1022 of this title. and "(2) If the Secretary of Commerce approves standards specifications under section 1022(b)(4) of this title, then no person shall import, manufacture, or distribute any digital audio recording device or any digital audio interface device that does not conform to such standards and specifications. "(b) PROHIBITION ON CIRCUMVENTION OF THE SE14 RIAL COPY MANAGEMENT SYSTEM.-No person shall im15 port, manufacture, or distribute any device, or offer or 16 perform any service, the primary purpose or effect of 17 which is to avoid, bypass, remove, deactivate, or otherwise 18 circumvent any program or circuit which implements, in 19 whole or in part, the Serial Copy Management System in 20 a digital audio recording device or a digital audio interface 21 device. 22 "(c) ENCODING OF INFORMATION ON PHONO23 RECORDS.-(1) No person shall encode a phonorecord of 24 a sound recording with inaccurate information relating to 25 the category code, copyright status, or generation status •HR 3204 IH 37 1 of the source material so as improperly to affect the oper 2 ation of the Serial Copy Management System. 3 "(2) Nothing in this subchapter requires any person 4 engaged in the importation, manufacture, or assembly of 5 phonorecords to encode any such phonorecord with respect 6 to its copyright status. 7 "(d) INFORMATION ACCOMPANYING TRANSMISSIONS 8 IN DIGITAL FORMAT.-Any person who transmits or oth9 erwise communicates to the public any sound recording 10 in digital format is not required under this subchapter to 11 transmit or otherwise communicate the information relat12 ing to the copyright status of the sound recording. Howev13 er, any such person who does transmit or otherwise com14 municate such copyright status information shall transmit 15 or communicate such information accurately. 16 "1022. Implementing the serial copy management 18 "(a) PUBLICATION OF TECHNICAL REFERENCE DOC19 UMENT.-Within 10 days after the date of the enactment 20 of this chapter, the Secretary of Commerce shall cause the 21 technical reference document to be published in the Feder22 al Register. 23 "(b) ORDERS OF SECRETARY OF COMMERCE.-The 24 Secretary of Commerce, upon petition by an interested 25 manufacturing party or an interested copyright party, and 38 1 after consultation with the Register, may, if the Secretary 2 determines that to do so is in accordance with the pur3 poses of this chapter, issue an order to implement the Se4 rial Copy Management System set forth in the technical 5 reference document as follows: 6 7 8 9 "(1) FUNCTIONALLY EQUIVALENT ALTERNATIVES.-The Secretary may issue an order for the purpose of permitting in commerce devices that do not conform to all of the standards and specifica10 tions set forth in the technical reference document, 11 if the Secretary determines that such devices possess the same functional characteristics with respect to regulation of serial copying as, and are compatible with the prevailing method for implementation of, the Serial Copy Management System set forth in the technical reference document. 2 3 4 15 16 "(2) REVISED GENERAL STANDARDS.-The Secretary may issue an order for the purpose of permitting in commerce devices that do not conform to all of the standards and specifications set forth in the technical reference document, if the Secretary determines that— "(A) the standards and specifications relating generally to digital audio recording de vices and digital audio interface devices have •HR 3204 IH |