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<PRE>[DOCID: f:h672enr.txt]
        H.R.672

                       One Hundred Fifth Congress

                                 of the

                        United States of America


                          AT THE FIRST SESSION

          Begun and held at the City of Washington on Tuesday,
 the seventh day of January, one thousand nine hundred and ninety-seven


                                 An Act


 
 To make technical amendments to certain provisions of title 17, United 
                              States Code.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. TECHNICAL CORRECTIONS TO THE SATELLITE HOME VIEWER ACT OF 
              1994.

    The Satellite Home Viewer Act of 1994 (Public Law 103-369) is 
amended as follows:
        (1) Section 2(3)(A) is amended to read as follows:
            ``(A) in clause (i) by striking `12 cents' and inserting 
        `17.5 cents per subscriber in the case of superstations that as 
        retransmitted by the satellite carrier include any program 
        which, if delivered by any cable system in the United States, 
        would be subject to the syndicated exclusivity rules of the 
        Federal Communications Commission, and 14 cents per subscriber 
        in the case of superstations that are syndex-proof as defined 
        in section 258.2 of title 37, Code of Federal Regulations'; 
        and''.
        (2) Section 2(4) is amended to read as follows:
        ``(4) Subsection (c) is amended--
            ``(A) in paragraph (1)--
                ``(i) by striking `until December 31, 1992,';
                ``(ii) by striking `(2), (3) or (4)' and inserting `(2) 
            or (3)'; and
                ``(iii) by striking the second sentence;
            ``(B) in paragraph (2)--
                ``(i) in subparagraph (A) by striking `July 1, 1991' 
            and inserting `July 1, 1996'; and
                ``(ii) in subparagraph (D) by striking `December 31, 
            1994' and inserting `December 31, 1999, or in accordance 
            with the terms of the agreement, whichever is later'; and
            ``(C) in paragraph (3)--
                ``(i) in subparagraph (A) by striking `December 31, 
            1991' and inserting `January 1, 1997';
                ``(ii) by amending subparagraph (B) to read as follows:
            ```(B) Establishment of royalty fees.--In determining 
        royalty fees under this paragraph, the copyright arbitration 
        royalty panel appointed under chapter 8 shall establish fees 
        for the retransmission of network stations and superstations 
        that most clearly represent the fair market value of secondary 
        transmissions. In determining the fair market value, the panel 
        shall base its decision on economic, competitive, and 
        programming information presented by the parties, including--
                ```(i) the competitive environment in which such 
            programming is distributed, the cost of similar signals in 
            similar private and compulsory license marketplaces, and 
            any special features and conditions of the retransmission 
            marketplace;
                ```(ii) the economic impact of such fees on copyright 
            owners and satellite carriers; and
                ```(iii) the impact on the continued availability of 
            secondary transmissions to the public.'; and
                ``(iii) in subparagraph (C), by inserting `or July 1, 
            1997, whichever is later' after `section 802(g)'.''.
        (3) Section 2(5)(A) is amended to read as follows:
            ``(A) in paragraph (5)(C) by striking `the date of the 
        enactment of the Satellite Home Viewer Act of 1988' and 
        inserting `November 16, 1988'; and''.

SEC. 2. COPYRIGHT IN RESTORED WORKS.

    Section 104A of title 17, United States Code, is amended as 
follows:
        (1) Subsection (d)(3)(A) is amended to read as follows:
        ``(3) Existing derivative works.--(A) In the case of a 
    derivative work that is based upon a restored work and is created--
            ``(i) before the date of the enactment of the Uruguay Round 
        Agreements Act, if the source country of the restored work is 
        an eligible country on such date, or
            ``(ii) before the date on which the source country of the 
        restored work becomes an eligible country, if that country is 
        not an eligible country on such date of enactment,
    a reliance party may continue to exploit that derivative work for 
    the duration of the restored copyright if the reliance party pays 
    to the owner of the restored copyright reasonable compensation for 
    conduct which would be subject to a remedy for infringement but for 
    the provisions of this paragraph.''.
        (2) Subsection (e)(1)(B)(ii) is amended by striking the last 
    sentence.
        (3) Subsection (h)(2) is amended to read as follows:
        ``(2) The `date of restoration' of a restored copyright is--
            ``(A) January 1, 1996, if the source country of the 
        restored work is a nation adhering to the Berne Convention or a 
        WTO member country on such date, or
            ``(B) the date of adherence or proclamation, in the case of 
        any other source country of the restored work.''.
        (4) Subsection (h)(3) is amended to read as follows:
        ``(3) The term `eligible country' means a nation, other than 
    the United States, that--
            ``(A) becomes a WTO member country after the date of the 
        enactment of the Uruguay Round Agreements Act;
            ``(B) on such date of enactment is, or after such date of 
        enactment becomes, a member of the Berne Convention; or
            ``(C) after such date of enactment becomes subject to a 
        proclamation under subsection (g).
    For purposes of this section, a nation that is a member of the 
    Berne Convention on the date of the enactment of the Uruguay Round 
    Agreements Act shall be construed to become an eligible country on 
    such date of enactment.''.

SEC. 3. LICENSES FOR NONEXEMPT SUBSCRIPTION TRANSMISSIONS.

    Section 114(f) of title 17, United States Code, is amended--
        (1) in paragraph (1), by inserting ``, or, if a copyright 
    arbitration royalty panel is convened, ending 30 days after the 
    Librarian issues and publishes in the Federal Register an order 
    adopting the determination of the copyright arbitration royalty 
    panel or an order setting the terms and rates (if the Librarian 
    rejects the panel's determination)'' after ``December 31, 2000''; 
    and
        (2) in paragraph (2), by striking ``and publish in the Federal 
    Register''.

SEC. 4. ROYALTY PAYABLE UNDER COMPULSORY LICENSE.

    Section 115(c)(3)(D) of title 17, United States Code, is amended by 
striking ``and publish in the Federal Register''.

SEC. 5. NEGOTIATED LICENSE FOR JUKEBOXES.

    Section 116 of title 17, United States Code, is amended--
        (1) by amending subsection (b)(2) to read as follows:
        ``(2) Arbitration.--Parties not subject to such a negotiation 
    may determine, by arbitration in accordance with the provisions of 
    chapter 8, the terms and rates and the division of fees described 
    in paragraph (1).''; and
        (2) by adding at the end the following new subsection:
    ``(d) Definitions.--As used in this section, the following terms 
mean the following:
        ``(1) A `coin-operated phonorecord player' is a machine or 
    device that--
            ``(A) is employed solely for the performance of nondramatic 
        musical works by means of phonorecords upon being activated by 
        the insertion of coins, currency, tokens, or other monetary 
        units or their equivalent;
            ``(B) is located in an establishment making no direct or 
        indirect charge for admission;
            ``(C) is accompanied by a list which is comprised of the 
        titles of all the musical works available for performance on 
        it,
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 and is affixed to the phonorecord player or posted in the 
        establishment in a prominent position where it can be readily 
        examined by the public; and
            ``(D) affords a choice of works available for performance 
        and permits the choice to be made by the patrons of the 
        establishment in which it is located.
        ``(2) An `operator' is any person who, alone or jointly with 
    others--
            ``(A) owns a coin-operated phonorecord player;
            ``(B) has the power to make a coin-operated phonorecord 
        player available for placement in an establishment for purposes 
        of public performance; or
            ``(C) has the power to exercise primary control over the 
        selection of the musical works made available for public 
        performance on a coin-operated phonorecord player.''.

SEC. 6. REGISTRATION AND INFRINGEMENT ACTIONS.

    Section 411(b)(1) of title 17, United States Code, is amended to 
read as follows:
        ``(1) serves notice upon the infringer, not less than 48 hours 
    before such fixation, identifying the work and the specific time 
    and source of its first transmission, and declaring an intention to 
    secure copyright in the work; and''.

SEC. 7. COPYRIGHT OFFICE FEES.

    (a) Fee Increases.--Section 708(b) of title 17, United States Code, 
is amended to read as follows:
    ``(b) In calendar year 1997 and in any subsequent calendar year, 
the Register of Copyrights, by regulation, may increase the fees 
specified in subsection (a) in the following manner:
        ``(1) The Register shall conduct a study of the costs incurred 
    by the Copyright Office for the registration of claims, the 
    recordation of documents, and the provision of services. The study 
    shall also consider the timing of any increase in fees and the 
    authority to use such fees consistent with the budget.
        ``(2) The Register may, on the basis of the study under 
    paragraph (1), and subject to paragraph (5), increase fees to not 
    more than that necessary to cover the reasonable costs incurred by 
    the Copyright Office for the services described in paragraph (1), 
    plus a reasonable inflation adjustment to account for any estimated 
    increase in costs.
        ``(3) Any fee established under paragraph (2) shall be rounded 
    off to the nearest dollar, or for a fee less than $12, rounded off 
    to the nearest 50 cents.
        ``(4) Fees established under this subsection shall be fair and 
    equitable and give due consideration to the objectives of the 
    copyright system.
        ``(5) If the Register determines under paragraph (2) that fees 
    should be increased, the Register shall prepare a proposed fee 
    schedule and submit the schedule with the accompanying economic 
    analysis to the Congress. The fees proposed by the Register may be 
    instituted after the end of 120 days after the schedule is 
    submitted to the Congress unless, within that 120-day period, a law 
    is enacted stating in substance that the Congress does not approve 
    the schedule.''.
    (b) Deposit of Fees.--Section 708(d) of such title is amended to 
read as follows:
    ``(d)(1) Except as provided in paragraph (2), all fees received 
under this section shall be deposited by the Register of Copyrights in 
the Treasury of the United States and shall be credited to the 
appropriations for necessary expenses of the Copyright Office. Such 
fees that are collected shall remain available until expended. The 
Register may, in accordance with regulations that he or she shall 
prescribe, refund any sum paid by mistake or in excess of the fee 
required by this section.
    ``(2) In the case of fees deposited against future services, the 
Register of Copyrights shall request the Secretary of the Treasury to 
invest in interest-bearing securities in the United States Treasury any 
portion of the fees that, as determined by the Register, is not 
required to meet current deposit account demands. Funds from such 
portion of fees shall be invested in securities that permit funds to be 
available to the Copyright Office at all times if they are determined 
to be necessary to meet current deposit account demands. Such 
investments shall be in public debt securities with maturities suitable 
to the needs of the Copyright Office, as determined by the Register of 
Copyrights, and bearing interest at rates determined by the Secretary 
of the Treasury, taking into consideration current market yields on 
outstanding marketable obligations of the United States of comparable 
maturities.
    ``(3) The income on such investments shall be deposited in the 
Treasury of the United States and shall be credited to the 
appropriations for necessary expenses of the Copyright Office.''.

SEC. 8. COPYRIGHT ARBITRATION ROYALTY PANELS.

    (a) Establishment and Purpose.--Section 801 of title 17, United 
States Code, is amended--
        (1) in subsection (b)(1) by striking ``and 116'' in the first 
    sentence and inserting ``116, and 119'';
        (2) in subsection (c) by inserting after ``panel'' at the end 
    of the sentence the following:
``, including--
        ``(1) authorizing the distribution of those royalty fees 
    collected under sections 111, 119, and 1005 that the Librarian has 
    found are not subject to controversy; and
        ``(2) accepting or rejecting royalty claims filed under 
    sections 111, 119, and 1007 on the basis of timeliness or the 
    failure to establish the basis for a claim''; and
        (3) by amending subsection (d) to read as follows:
    ``(d) Support and Reimbursement of Arbitration Panels.--The 
Librarian of Congress, upon the recommendation of the Register of 
Copyrights, shall provide the copyright arbitration royalty panels with 
the necessary administrative services related to proceedings under this 
chapter, and shall reimburse the arbitrators presiding in distribution 
proceedings at such intervals and in such manner as the Librarian shall 
provide by regulation. Each such arbitrator is an independent 
contractor acting on behalf of the United States, and shall be hired 
pursuant to a signed agreement between the Library of Congress and the 
arbitrator. Payments to the arbitrators shall be considered reasonable 
costs incurred by the Library of Congress and the Copyright Office for 
purposes of section 802(h)(1).''.
    (b) Proceedings.--Section 802(h) of title 17, United States Code, 
is amended by amending paragraph (1) to read as follows:
        ``(1) Deduction of costs of library of congress and copyright 
    office from royalty fees.--The Librarian of Congress and the 
    Register of Copyrights may, to the extent not otherwise provided 
    under this title, deduct from royalty fees deposited or collected 
    under this title the reasonable costs incurred by the Library of 
    Congress and the Copyright Office under this chapter. Such 
    deduction may be made before the fees are distributed to any 
    copyright claimants. In addition, all funds made available by an 
    appropriations Act as offsetting collections and available for 
    deductions under this subsection shall remain available until 
    expended. In ratemaking proceedings, the reasonable costs of the 
    Librarian of Congress and the Copyright Office shall be borne by 
    the parties to the proceedings as directed by the arbitration 
    panels under subsection (c).''.

SEC. 9. DIGITAL AUDIO RECORDING DEVICES AND MEDIA.

    Section 1007(b) of title 17, United States Code, is amended by 
striking ``Within 30 days after'' in the first sentence and inserting 
``After''.

SEC. 10. CONFORMING AMENDMENT.

    Section 4 of the Digital Performance Right in Sound Recordings Act 
of 1995 (Public Law 104-39) is amended by redesignating paragraph (5) 
as paragraph (4).

SEC. 11. DISTRIBUTION OF PHONORECORDS.

    Section 303 of title 17, United States Code, is amended--
        (1) by striking ``Copyright'' and inserting ``(a) Copyright''; 
    and
        (2) by inserting at the end the following:
    ``(b) The distribution before January 1, 197
198b
8, of a phonorecord 
shall not for any purpose constitute a publication of the musical work 
embodied therein.''.

SEC. 12. MISCELLANEOUS TECHNICAL AMENDMENTS.

    (a) Amendments to Title 17, United States Code.--Title 17, United 
States Code, is amended as follows:
        (1) The table of chapters at the beginning of title 17, United 
    States Code, is amended--
            (A) in the item relating to chapter 6, by striking 
        ``Requirement'' and inserting ``Requirements'';
            (B) in the item relating to chapter 8, by striking 
        ``Royalty Tribunal'' and inserting ``Arbitration Royalty 
        Panels'';
            (C) in the item relating to chapter 9, by striking 
        ``semiconductor chip products'' and inserting ``Semiconductor 
        Chip Products''; and
            (D) by inserting after the item relating to chapter 9 the 
        following:

``10. Digital Audio Recording Devices and Media..................1001''.

        (2) The item relating to section 117 in the table of sections 
    at the beginning of chapter 1 is amended to read as follows:

``117. Limitations on exclusive rights: Computer programs.''.

        (3) Section 101 is amended in the definition of to perform or 
    display a work ``publicly'' by striking ``processs'' and inserting 
    ``process''.
        (4) Section 108(e) is amended by striking ``pair'' and 
    inserting ``fair''.
        (5) Section 109(b)(2)(B) is amended by striking ``Copyright'' 
    and inserting ``Copyrights''.
        (6) Section 110 is amended--
            (A) in paragraph (8) by striking the period at the end and 
        inserting a semicolon;
            (B) in paragraph (9) by striking the period at the end and 
        inserting ``; and''; and
            (C) in paragraph (10) by striking ``4 above'' and inserting 
        ``(4)''.
        (7) Section 115(c)(3)(E) is amended--
            (A) in clause (i) by striking ``sections 106(1) and (3)'' 
        each place it appears and inserting ``paragraphs (1) and (3) of 
        section 106''; and
            (B) in clause (ii)(II) by striking ``sections 106(1) and 
        106(3)'' and inserting ``paragraphs (1) and (3) of section 
        106''.
        (8) Section 119(c)(1) is amended by striking ``until unless'' 
    and inserting ``unless''.
        (9) Section 304(c) is amended in the matter preceding paragraph 
    (1) by striking ``the subsection (a)(1)(C)'' and inserting 
    ``subsection (a)(1)(C)''.
        (10) Section 405(b) is amended by striking ``condition or'' and 
    inserting ``condition for''.
        (11) Section 407(d)(2) is amended by striking ``cost of'' and 
    inserting ``cost to''.
        (12) The item relating to section 504 in the table of sections 
    at the beginning of chapter 5 is amended by striking ``Damage'' and 
    inserting ``Damages''.
        (13) Section 504(c)(2) is amended by striking ``court it'' and 
    inserting ``court in''.
        (14) Section 509(b) is amended by striking ``merchandise; and 
    baggage'' and inserting ``merchandise, and baggage''.
        (15) Section 601(a) is amended by striking ``nondramtic'' and 
    inserting ``nondramatic''.
        (16) Section 601(b)(1) is amended by striking ``subsustantial'' 
    and inserting ``substantial''.
        (17) The item relating to section 710 in the table of sections 
    at the beginning of chapter 7 is amended by striking 
    ``Reproductions'' and inserting ``Reproduction''.
        (18) The item relating to section 801 in the table of sections 
    at the beginning of chapter 8 is amended by striking 
    ``establishment'' and inserting ``Establishment''.
        (19) Section 801(b) is amended--
            (A) by striking ``shall be--'' and inserting ``shall be as 
        follows:'';
            (B) in paragraph (1) by striking ``to make'' and inserting 
        ``To make'';
            (C) in paragraph (2)--
                (i) by striking ``to make'' and inserting ``To make''; 
            and
                (ii) in subparagraph (D) by striking ``adjustment; 
            and'' and inserting ``adjustment.''; and
            (D) in paragraph (3) by striking ``to distribute'' and 
        inserting ``To distribute''.
        (20) Section 803(b) is amended in the second sentence by 
    striking ``subsection subsection'' and inserting ``subsection''.
        (21) The item relating to section 903 in the table of sections 
    at the beginning of chapter 9 is amended to read as follows:

``903. Ownership, transfer, licensure, and recordation.''.

        (22) Section 909(b)(1) is amended--
            (A) by striking ``force'' and inserting ``work''; and
            (B) by striking ``sumbol'' and inserting ``symbol''.
        (23) Section 910(a) is amended in the second sentence by 
    striking ``as used'' and inserting ``As used''.
        (24) Section 1006(b)(1) is amended by striking ``Federation 
    Television'' and inserting ``Federation of Television''.
        (25) Section 1007 is amended--
            (A) in subsection (a)(1) by striking ``the calendar year in 
        which this chapter takes effect'' and inserting ``calendar year 
        1992''; and
            (B) in subsection (b) by striking ``the year in which this 
        section takes effect'' and inserting ``1992''.
    (b) Related Provisions.--
        (1) Section 1(a)(1) of the Act entitled ``An Act to amend 
    chapter 9 of title 17, United States Code, regarding protection 
    extended to semiconductor chip products of foreign entities'', 
    approved November 9, 1987 (17 U.S.C. 914 note), is amended by 
    striking ``orginating'' and inserting ``originating''.
        (2) Section 2319(b)(1) of title 18, United States Code, is 
    amended by striking ``last 10'' and inserting ``least 10''.

SEC. 13. EFFECTIVE DATES.

    (a) In General.--Except as provided in subsections (b) and (c), the 
amendments made by this Act shall take effect on the date of the 
enactment of this Act.
    (b) Satellite Home Viewer Act.--The amendments made by section 1 
shall be effective as if enacted as part of the Satellite Home Viewer 
Act of 1994 (Public Law 103-369).
    (c) Technical Amendment.--The amendment made by section 12(b)(1) 
shall be effective as if enacted on November 9, 1987.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.

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