5

1 sentence by striking ", subject to the requirements of sec2 tion 411,".

3 (d) REMEDIES FOR INFRINGEMENT.-Section 504(a) 4 of title 17, United States Code, is amended by striking 5 "Except as otherwise provided by this title, an" and in6 serting "An".

7 TITLE II-COPYRIGHT ROYALTY

8

TRIBUNAL

9 SEC. 201. COPYRIGHT ARBITRATION ROYALTY PANELS.

10

(a) ESTABLISHMENT AND PURPOSE.-Section 801 of 11 title 17, United States Code, is amended to read as fol12 lows:

13 "8801. Copyright arbitration royalty panels: estab

14

15

lishment and purpose

"(a) ESTABLISHMENT.-The Register of Copyrights

16 is authorized to appoint and convene copyright arbitration

17 royalty panels to—

"(1) make determinations concerning the adjustment of the copyright royalty rates as provided in section 803;

"(2) adjust royalty payments under section 1004(a)(3);

"(3) distribute royalty fees deposited with the Register of Copyrights under sections 111 and

6

1

2

3

4

5

6

7

119(b) in the event a controversy over such distribu

tion exists; and

"(4) distribute the royalty fees deposited with the Register of Copyrights under section 1005 in the

event a controversy over such distribution exists under section 1006(c).".

(b) MEMBERSHIP AND PROCEEDINGS.-Section 802

8 of title 17, United States Code, is amended to read as 9 follows:

10 "802. Membership and proceedings of copyright ar

11

12

bitration royalty panels

"(a) COMPOSITION OF COPYRIGHT ARBITRATION 13 ROYALTY PANELS.-A copyright arbitration royalty panel 14 shall consist of 3 arbitrators selected by the Register of 15 Copyrights pursuant to subsection (b).

16

"(b) SELECTION OF ARBITRATION PANEL.-Not 17 later than 10 days after publication of a notice initiating 18 an arbitration proceeding under section 803 or 804, and 19 in accordance with procedures specified by the Register 20 of Copyrights, the Register of Copyrights shall select 2 21 arbitrators from lists of arbitrators provided to the Reg22 ister by parties participating in the arbitration. The 2 ar23 bitrators so selected shall, within 10 days after their selec24 tion, choose a third arbitrator from the same lists, who 25 shall serve as the chairperson of the arbitrators. If such

7

1 2 arbitrators fail to agree upon the selection of a chair2 person, the Register of Copyrights shall promptly select 3 the chairperson.

4

"(c) ARBITRATION PROCEEDINGS.-Copyright arbi

5 tration royalty panels shall conduct arbitration proceed6 ings, in accordance with such procedures as they may 7 adopt, for the purpose of making their determinations in 8 carrying out the purposes set forth in section 801. The 9 arbitration panels shall act on the basis of a fully docu10 mented written record. Any copyright owner who claims 11 to be entitled to royalties under section 111 or 119 or any 12 interested copyright party who claims to be entitled to roy13 alties under section 1006 may submit relevant information 14 and proposals to the arbitration panels in proceedings ap15 plicable to such copyright owner or interested copyright 16 party. The parties to the proceedings shall bear the entire 17 cost thereof in such manner and proportion as the arbitra18 tion panels shall direct.

19

"(d) REPORT TO THE REGISTER OF COPYRIGHTS.— 20 Not later than 180 days after publication of the notice 21 initiating an arbitration proceeding, the copyright arbitra22 tion royalty panel conducting the proceeding shall report 23 to the Register of Copyrights its determination concerning 24 the royalty fee or distribution of royalty fees, as the case 25 may be. Such report shall be accompanied by the written

8

1 record, and shall set forth the facts that the arbitration

2 panel found relevant to its determination.

3

"(e) ACTION BY COPYRIGHT ARBITRATION ROYALTY 4 PANEL.-Within 60 days after receiving the report of a 5 copyright arbitration royalty panel under subsection (d), 6 the Register of Copyrights shall adopt or reject the deter7 mination of the arbitration panel. The Register shall adopt 8 the determination of the arbitration panel unless the Reg9 ister finds that the determination is arbitrary. If the Reg10 ister rejects the determination of the arbitration panel, the 11 Register shall, before the end of that 60-day period, and 12 after full examination of the record created in the arbitra13 tion proceeding, issue an order setting the royalty fee or 14 distribution of fees, as the case may be. The Register shall 15 cause to be published in the Federal Register the deter16 mination of the arbitration panel, and the decision of the 17 Register (including an order issued under the preceding 18 sentence). The Register shall also publicize such deter19 mination and decision in such other manner as the Reg20 ister considers appropriate. The Register shall also make 21 the report of the arbitration panel and the accompanying 22 record available for public inspection and copying. 23

“(f) JUDICIAL REVIEW.-Any decision of the Reg24 ister of Copyrights under subsection (e) with respect to 25 a determination of an arbitration panel may be appealed,

9

1 by any aggrieved party who would be bound by the deter2 mination, to the United States Court of Appeals for the 3 District of Columbia Circuit, within 30 days after the pub4 lication of the decision in the Federal Register. The pend5 ency of an appeal under this paragraph shall not relieve 6 persons obligated to make royalty payments under sec7 tions 111, 119, or 1003 who would be affected by the de8 termination on appeal to deposit the statement of account 9 and royalty fees specified in those sections. The court shall 10 have jurisdiction to modify or vacate a decision of the Reg11 ister only if it finds, on the basis of the record before the 12 Register, that the Register acted in an arbitrary manner. 13 If the court modifies the decision of the Register, the court 14 shall have jurisdiction to enter its own determination with 15 respect to the amount or distribution of royalty fees and 16 costs, to order the repayment of any excess fees, and to 17 order the payment of any underpaid fees, and the interest 18 pertaining respectively thereto, in accordance with its final 19 judgment. The court may further vacate the decision of 20 the arbitration panel and remand the case for arbitration 21 proceedings in accordance with subsection (c).".

22

(c) ADJUSTMENT

OF

COMPULSORY

LICENSE

23 RATES.-Section 803 of title 17, United States Code, is

24 amended to read as follows: