/* R FRINGE COMMENTARY: This section of the copyright code deals

with how jukebox and Tv cable royalties are approtioned among

those who own songs and Tv shows. Unless this is of interest to

you, it may be safely ignored. */

CHAPTER 8. COPYRIGHT ROYALTY TRIBUNAL

Section

801. Copyright Royalty Tribunal: Establishment and purpose

802. Membership of the Tribunal

803. Procedures of the Tribunal

804. Institution and conclusion of proceedings

805. Staff of the Tribunal

806. Administrative support of the Tribunal

807. Deduction of costs of proceedings

808. Reports

809. Effective date of final determinations

810. Judicial review

______________

S 801. Copyright Royalty Tribunal: Establishment and purpose

(a) There is hereby created an independent Copyright Royalty

Tribunal in the legislative branch.

(b) Subject to the provisions of this chapter [17 USC SS 801 et

seq.], the purposes of the Tribunal shall be --

(1) to make determinations concerning the adjustment of

reasonable copyright royalty rates as provided in sections

115 and 116 [17 USC SS 115 and 116], and to make determina-

tions as to reasonable terms and rates of royalty payments

as provided in section 118 [17 USC S 118]. The rates

applicable under sections 115 and 116 [17 USC SS 115 and

116] shall be calculated to achieve the following objec-

tives:

(A) To maximize the availability of creative works to

the public;

(B) To afford the copyright owner a fair return for his

creative work and the copyright user a fair income

under existing economic conditions;

(C) To reflect the relative roles of the copyright

owner and the copyright user in the product made

available to the public with respect to relative

creative contribution to the opening of new markets for

creative expression and media for their communication;

(D) To minimize any disruptive impact on the structure

of the industries involved and on generally prevailing

industry practices.

(2) to make determinations concerning the adjustment of the

copyright royalty rates in section 111 [17 USC S 111]

solely in accordance with the following provisions:

(A) The rates established by section 111(d)(2)(B) [17

èUSC S 111(d)(2)(B)] may be adjusted to reflect (i)

national monetary inflation or deflation or (ii)

changes in the average rates charged cable subscribers

for the basic service of providing secondary

transmissions to maintain the real constant dollar

level of the royalty fee per subscriber which existed

as of the date of enactment of this Act [enacted Oct.

19, 1976]: Provided, That if the average rates charged

cable system subscribers for the basic service of

providing secondary transmissions are changed so that

the average rates exceed national monetary inflation,

no change in the rates established by section

111(d)(2)(B) [17 USC S 111(d)(2)(B)] shall be

permitted: And provided further, That no increase in

the royalty fee shall be permitted based on any reduc-

tion in the average number of distant signal equiva-

lents per subscriber. The Commission may consider all

factors relating to the maintenance of such level of

payments including, as an extenuating factor, whether

the cable industry has been restrained by subscriber

rate regulating authorities from increasing the rates

for the basic service of providing secondary transmis-

sions.

(B) In the event that the rules and regulations of the

Federal Communications Commission are amended at any

time after April 15, 1976, to permit the carriage by

cable systems of additional television broadcast sig-

nals beyond the local service area of the primary

transmitters of such signals, the royalty rates estab-

lished by section 111(d)(2)(B) [17 USC S 111(d)(2)(B)]

may be adjusted to insure that the rates for the addi-

tional distant signal equivalents resulting from such

carriage are reasonable in the light of the changes

effected by the amendment to such rules and

regulations. In determining the reasonableness of

rates proposed following an amendment of Federal Commu-

nications Commission rules and regulations, the Copy-

right Royalty Tribunal shall consider, among other

factors, the economic impact on copyright owners and

users: Provided, That no adjustment in royalty rates

shall be made under this subclause with respect to any

distant signal equivalent or fraction thereof

represented by (i) carriage of any signal permitted

under the rules and regulations of the Federal

Communications Commission in effect on April 15, 1976,

or the carriage of a signal of the same type (that is,

independent, network, or noncommercial educational)

substituted for such permitted signal, or noncommercial

educational) substituted for such permitted signal, or

è(ii) a television broadcast signal first carried after

April 15, 1976, pursuant to an individual waiver of the

rules and regulations of the Federal Communications

Commission, as such rules and regulations were in

effect on April 15, 1976.

(C) In the event of any change in the rules and regula-

tions of the Federal Communications Commission with

respect to syndicated and sports program exclusivity

after April 15, 1976, the rates established by section

111(d)(2)(B) [17 USC S 111(d)(2)(B)] may be adjusted

to assure that such rates are reasonable in light of

the changes to such rules and regulations, but any such

adjustment shall apply only to the affected television

broadcast signals carried on those systems affected by

the change.

(D) The gross receipts limitations established by

section 111(d)(2)(C) and (D) [17 USC S 111(d)(2)(C)

and (D)] shall be adjusted to reflect national monetary

inflation or deflation or changes in the average rates

charged cable system subscribers for the basic service

of providing secondary transmissions to maintain the

real constant dollar value of the exemption provided by

such section; and the royalty rate specified therein

shall not be subject to adjustment; and

(3) to distribute royalty fees deposited with the Register

of Copyrights under section 111 and 116 [17 USC S 111 and

116], and to determine, in cases where controversy exists,

the distribution of such fees.

(c) As soon as possible after the date of enactment of this Act

[enacted Oct. 19, 1976], and no later than six months following

such date, the President shall publish a notice announcing the

initial appointments provided in section 802 [17 USC S 802], and

shall designate an order of seniority among the initially-

appointed commissioners for purposes of section 802(b) [17 USC S

802(b)].

S 802. Membership of the Tribunal

(a) The Tribunal shall be composed of five commissioners appoint-

ed by the President with the advice and consent of the Senate for

a term of seven years each; of the first five members appointed,

three shall be designated to serve for seven years from the date

of the notice specified in section 801 (c) [17 USC S 801(c)],

and two shall be designated to serve for five years from such

date, respectively. Commissioners shall be compensated at the

highest rate now or hereafter [enacted Oct. 19, 1976] prescribe

[prescribed] for grade 18 of the General Schedule pay rates (5

USC 5332) [5 USC S 5332].

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(b) Upon convening the commissioners shall elect a chairman from

among the commissioners appointed for a full seven-year term.

Such chairman shall serve for a term of one year. Thereafter,

the most senior commissioner who has not previously served as

chairman shall serve as chairman for a period of one year, except

that, if all commissioners have served a full term as chairman,

the most senior commissioner who has served the least number of

terms as chairman shall be designated as chairman.

(c) Any vacancy in the Tribunal shall not affect its powers and

shall be filled, for the unexpired term of the appointment, in

the same manner as the original appointment was made.

S 803. Procedures of the Tribunal

(a) The Tribunal shall adopt regulations, not inconsistent with

law, governing its procedure and methods of operation. Except as

otherwise provided in this chapter, the Tribunal shall be subject

to the provisions of the Administrative Procedure Act of June 11,

1946, as amended (c. 324, 60 Stat. 237, Title 5, United States

Code, Chapter 5, Subchapter II and Chapter 7).

(b) Every final determination of the Tribunal shall be published

in the Federal Register. It shall state in detail the criteria

that the Tribunal determined to be applicable to the particular

proceeding, the various facts that it found relevant to its

determination in that proceeding, and the specific reasons for

its determination.

S 804. Institution and conclusion of proceedings

(a) With respect to proceedings under section 801(b)(1) [17 USC

S 801(b)(1)] concerning the adjustment of royalty rates as pro-

vided in sections 115 and 116 [17 USC SS 115 and 116], and with

respect to proceedings under section 801(b)(2)(A) and (D) [17

USC S 801(b)(2)(A) and (D)] --

(1) on January 1, 1980, the Chairman of the Tribunal shall

cause to be published in the Federal Register notice of

commencement of proceedings under this chapter [17 USC SS

801 et seq.]; and

(2) during the calendar years specified in the following

schedule, any owner or user of a copyrighted work whose

royalty rates are specified by this title [17 USC SS 101 et

seq.], or by a rate established by the Tribunal, may file a

petition with the Tribunal declaring that the petitioner

requests an adjustment of the rate. The Tribunal shall make

a determination as to whether the applicant has a

significant interest in the royalty rate in which an adjust-

èment is requested. If the Tribunal determines that the

petitioner has a significant interest, the Chairman shall

cause notice of this determination, with the reasons

therefore, to be published in the Federal Register, together

with notice of commencement of proceedings under this chap-

ter [17 USC SS 801 et seq.].

(A) In proceedings under section 801(b)(2)(A) and (D)

[17 USC S 801(b)(2)(A) and (D)], such petition may be

filed during 1985 and in each subsequent fifth calendar

year.

(B) In proceedings under section 801(b)(1) [17 USC S

801(b)(1)] concerning the adjustment of royalty rates

as provided in section 115 [17 USC S 115], such

petition may be filed in 1987 and in each subsequent

tenth calendar year.

(C) In proceedings under section 801(b)(1) [17 USC S

801 (b)(1)] concerning the adjustment of royalty rates

under section 116 [17 USC S 116], such petition may be

filed in 1990 and in each subsequent tenth calendar

year.

(b) With respect to proceedings under subclause (B) or (C) of

section 801(b)(2) [17 USC S 801(b)(2)(B) or (C)], following an

event described in either of those subsections, any owner or user

of a copyrighted work whose royalty rates are specified by sec-

tion 111 [17 USC S 111], or by a rate established by the

Tribunal, may, within twelve months, file a petition with the

Tribunal declaring that the petitioner requests an adjustment of

the rate. In this event the Tribunal shall proceed as in subsec-

tion (a)(2), above. Any change in royalty rates made by the

Tribunal pursuant to this subsection may be reconsidered in 1980,

1985, and each fifth calendar year thereafter, in accordance with

the provisions in section 801(b)(2)(B) or (C) [17 USC S

801(b)(2)(B) or (C)], as the case may be.

(c) With respect to proceedings under section 801(b)(1) [17 USC

S 801(b)(1)], concerning the determination of reasonable terms

and rates of royalty payments as provided in section 118 [17 USC

S 118], the Tribunal shall proceed when and as provided by that

section.

(d) With respect to proceedings under section 801(b)(3) [17 USC

S 801(b)(3)], concerning the distribution of royalty fees in

certain circumstances under sections 111 or 116 [17 USC SS 111

or 116], the Chairman of the Tribunal shall, upon determination

by the Tribunal that a controversy exists concerning such distri-

bution, cause to be published in the Federal Register notice of

commencement of proceedings under this chapter [17 USC SS 801 et

seq.].

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(e) All proceedings under this chapter [17 USC SS 801 et seq.]

shall be initiated without delay following publication of the

notice specified in this section, and the Tribunal shall render

its final decision in any such proceeding within one year from

the date of such publication.

S 805. Staff of the Tribunal

(a) The Tribunal is authorized to appoint and fix the

compensation of such employees as may be necessary to carry out

the provisions of this chapter [17 USC SS 801 et seq.], and to

prescribe their functions and duties.

(b) The Tribunal may procure temporary and intermittent services

to the same extent as is authorized by section 3109 of title 5 [5

USC S 3109].

S 806. Administrative support of the Tribunal

(a) The Library of Congress shall provide the Tribunal with

necessary administrative services, including those related to the

budgeting, accounting, financial reporting, travel, personnel,

and procurement. The Tribunal shall pay the Library for such

services, either in advance or by reimbursement from the funds of

the Tribunal, at amounts to be agreed upon between the Librarian

and the Tribunal.

(b) The Library of Congress is authorized to disburse funds for

the Tribunal, under regulations prescribed jointly by the Librar-

ian of Congress and the Tribunal and approved by the Comptroller

General. Such regulations shall establish requirements and

procedures under which every voucher certified for payment by the

Library of Congress under this chapter [17 USC SS 801 et seq.]

shall be supported with a certification by a duly authorized

officer or employee of the Tribunal, and shall prescribe the

responsibilities and accountability of said officers and employ-

ees of the Tribunal with respect to such certifications.

S 807. Deduction of costs of proceedings

Before any funds are distributed pursuant to a final decision in

a proceeding involving distribution of royalty fees, the Tribunal

shall assess the reasonable costs of such proceeding.

S 808. Reports

In addition to its publication of the reports of all final deter-

minations as provided in section 803(b) [17 USC S 803(b)], the

èTribunal shall make an annual report to the President and the

Congress concerning the Tribunal's work during the preceding

fiscal year, including a detailed fiscal statement of account.

S 809. Effective date of final determinations

Any final determination by the Tribunal under this chapter [17

USC SS 801 et seq.] shall become effective thirty days following

its publication in the Federal Register as provided in section

803(b) [17 USC S 803(b)], unless prior to that time an appeal

has been filed pursuant to section 810 [17 USC S 810], to

vacate, modify, or correct such determination, and notice of such

appeal has been served on all parties who appeared before the

Tribunal in the proceeding in question. Where the proceeding

involves the distribution of royalty fees under sections 111 or

116 [17 USC SS 111 or 116], the Tribunal shall, upon the expira-

tion of such thirty-day period, distribute any royalty fees not

subject to an appeal filed pursuant to section 810 [17 USC S

810].

S 810. Judicial review

Any final decision of the Tribunal in a proceeding under section

801(b) [17 USC S 801(b)] may be appealed to the United States

Court of Appeals, within thirty days after its publication in the

Federal Register by an aggrieved party. The judicial review of

the decision shall be had, in accordance with Chapter 7 of title

5 [USC SS 701 et seq.], on the basis of the record before the

Tribunal. No court shall have jurisdiction to review a final

decision of the Tribunal except as provided in this section.