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Copyright Law of the United States of America by The US Copyright Office

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with jurisdiction over the applicable consent decree or in that place of
holding court of a district court that is the seat of the Federal
circuit (other than the Court of Appeals for the Federal Circuit) in
which the proprietor's establishment is located.

(3) Such proceeding shall be held before the judge of the court with
jurisdiction over the consent decree governing the performing rights
society. At the discretion of the court, the proceeding shall be held
before a special master or magistrate judge appointed by such judge.
Should that consent decree provide for the appointment of an advisor or
advisors to the court for any purpose, any such advisor shall be the
special master so named by the court.

(4) In any such proceeding, the industry rate shall be presumed to have
been reasonable at the time it was agreed to or determined by the court.
Such presumption shall in no way affect a determination of whether the
rate is being correctly applied to the individual proprietor.

(5) Pending the completion of such proceeding, the individual proprietor
shall have the right to perform publicly the copyrighted musical
compositions in the repertoire of the performing rights society by
paying an interim license rate or fee into an interest bearing escrow
account with the clerk of the court, subject to retroactive adjustment
when a final rate or fee has been determined, in an amount equal to the
industry rate, or, in the absence of an industry rate, the amount of the
most recent license rate or fee agreed to by the parties.

(6) Any decision rendered in such proceeding by a special master or
magistrate judge named under paragraph (3) shall be reviewed by the
judge of the court with jurisdiction over the consent decree governing
the performing rights society. Such proceeding, including such review,
shall be concluded within 6 months after its commencement.

(7) Any such final determination shall be binding only as to the
individual proprietor commencing the proceeding, and shall not be
applicable to any other proprietor or any other performing rights
society, and the performing rights society shall be relieved of any
obligation of nondiscrimination among similarly situated music users
that may be imposed by the consent decree governing its operations.

(8) An individual proprietor may not bring more than one proceeding
provided for in this section for the determination of a reasonable
license rate or fee under any license agreement with respect to any one
performing rights society.

(9) For purposes of this section, the term "industry rate" means the
license fee a performing rights society has agreed to with, or which has
been determined by the court for, a significant segment of the music
user industry to which the individual proprietor belongs.

------------------
Chapter 5 Endnotes

1 Concerning the liability of the United States Government for
copyright infringement, see 28 U.S.C. 1498. Title 28 of the *United
States Code* is entitled "Judiciary and Judicial Procedure."

2 In 1998, two sections 512 were enacted into law. On October 17, 1998,
the Fairness in Music Licensing Act of 1998 was enacted. This Act
amended chapter five to add section 512 entitled "Determination of
reasonable license fees for individual proprietors." Pub. L. No.
105-298, 112 Stat. 2827, 2831. On October 28, 1998, the Online Copyright
Infringement Liability Limitation Act was enacted. This Act amended
chapter five to add section 512 entitled "Limitations on liability
relating to material online." Pub. L. No. 105-304, 112 Stat. 2860, 2877.
In 1999, a technical correction was enacted to redesignate the section
512 that was entitled "Determination of reasonable license fees for
individual proprietors" as section 513. Also, the table of sections was
amended to reflect that change. Pub. L. No. 106-44, 113 Stat. 221. See
also endnote 10*, infra.*

3 The Berne Convention Implementation Act of 1988 amended section
501(b) by striking out "sections 205(d) and 411" and inserting in lieu
thereof "section 411." Pub. L. No. 100-568, 102 Stat. 2853, 2860. The
Satellite Home Viewer Act of 1988 amended section 501 by adding
subsection (e). Pub. L. No. 100-667, 102 Stat. 3935, 3957.

In 1990, the Copyright Remedy Clarification Act amended section 501(a)
by adding the last two sentences. Pub. L. No. 101-553, 104 Stat. 2749.
The Visual Artists Rights Act of 1990 also amended section 501(a) as
follows: 1) by inserting "or of the author as provided in section
106A(a)" after "118" and 2) by striking out "copyright." and inserting
in lieu thereof "copyright or right of the author, as the case may be.
For purposes of this chapter (other than section 506), any reference to
copyright shall be deemed to include the rights conferred by section
106A(a)." Pub. L. No. 101-650, 104 Stat. 5089, 5131.

In 1999, a technical correction amended the first sentence in subsection
501(a) by inserting "121" in lieu of "118." Pub. L. No. 106-44, 113
Stat. 221, 222. The Satellite Home Viewer Improvement Act of 1999
amended section 501 by adding a subsection (f) and, in subsection (e),
by inserting "performance or display of a work embodied in a primary
transmission" in lieu of "primary transmission embodying the performance
or display of a work." Pub. L. No. 106-113, 113 Stat. 1501, app. I at
1501A-527 and 544. The Satellite Home Viewer Improvement Act of 1999
states that section 501(f) shall be effective as of July 1, 1999. Pub.
L. No. 106-113, 113 Stat. 1501, app. I at 1501A-544.

4 The Berne Convention Implementation Act of 1988 amended section
504(c) as follows: 1) in paragraph (1), by inserting "$500" in lieu of
"$250" and by inserting "$20,000" in lieu of "$10,000" and 2) in
paragraph (2), by inserting "$100,000" in lieu of "$50,000" and by
inserting "$200" in lieu of "$100." Pub. L. No. 100-568, 102 Stat. 2853,
2860. The Digital Theft Deterrence and Copyright Damages Improvement Act
of 1999 amended section 504(c), in paragraph (1), by substituting "$750"
for "$500" and "$30,000" for "$20,000" and, in paragraph (2), by
substituting "$150,000" for "$100,000." Pub. L. No. 106-160, 113 Stat.
1774.

5 The Piracy and Counterfeiting Amendments Act of 1982 amended section
506 by substituting a new subsection(a). Pub. L. No. 97-180, 96 Stat.
91, 93. The Visual Artists Rights Act of 1990 amended section 506 by
adding subsection (f). Pub. L. No.101-650, 104 Stat. 5089, 5131. In
1997, the No Electronic Theft (NET) Act again amended section 506 by
amending subsection (a) in its entirety. Pub. L. No. 105-147, 111 Stat.
2678. That Act also directed the United States Sentencing Commission to
"ensure that the applicable guideline range for a defendant convicted of
a crime against intellectual property . . . is sufficiently stringent to
deter such a crime" and to "ensure that the guidelines provide for
consideration of the retail value and quantity of the items with respect
to which the crime against intellectual property was committed." Pub. L.
No. 105-147, 111 Stat. 2678, 2680. See also endnote 2 in Part VII of the
Appendix.

6 In 1997, the No Electronic Theft (NET) Act amended section 507(a) by
inserting "5" in lieu of "three." Pub. L. No. 105-147, 111 Stat. 2678.

7 The Satellite Home Viewer Improvement Act of 1999 amended the heading
for section 510 by substituting "programming" for "programing" and, in
subsection (b), by substituting "statutory" for "compulsory." Pub. L.
No. 106-113, 113 Stat. 1501, app. I at 1501A-543.

8 In 1990, the Copyright Remedy Clarification Act added section 511.
Pub. L. No. 101-553, 104 Stat. 2749. In 1999, a technical correction
amended subsection 511(a) by inserting "121" in lieu of "119." Pub. L.
No. 106-44, 113 Stat. 221, 222.

9 In 1998, the Online Copyright Infringement Liability Limitation Act
added section 512. Pub. L. No. 105-304, 112 Stat. 2860, 2877. In 1999, a
technical correction deleted the heading for paragraph (2) of section
512(e), which was "Injunctions." Pub. L. No. 106-44, 113 Stat. 221, 222.

10 The Fairness in Music Licensing Act of 1998 added section 513. Pub.
L. No. 105-298, 112 Stat. 2827, 2831. This section was originally
designated as section 512. However, because two sections 512 had been
enacted into law in 1998, a technical amendment redesignated this as
section 513. Pub. L. No. 106-44, 113 Stat. 221. See also endnote 2*,
supra.*

------------------------------------------------------------------------

Chapter 6

Manufacturing Requirements and Importation

+ 601. Manufacture, importation, and public distribution of certain
copies
+ 602. Infringing importation of copies or phonorecords
+ 603. Importation prohibitions: Enforcement and disposition of
excluded articles

Section 601. Manufacture, importation, and public distribution of certain
copies [1]

(a) Prior to July 1, 1986, and except as provided by subsection (b), the
importation into or public distribution in the United States of copies
of a work consisting preponderantly of nondramatic literary material
that is in the English language and is protected under this title is
prohibited unless the portions consisting of such material have been
manufactured in the United States or Canada.

(b) The provisions of subsection (a) do not apply-

(1) where, on the date when importation is sought or public distribution
in the United States is made, the author of any substantial part of such
material is neither a national nor a domiciliary of the United States
or, if such author is a national of the United States, he or she has
been domiciled outside the United States for a continuous period of at
least one year immediately preceding that date; in the case of a work
made for hire, the exemption provided by this clause does not apply
unless a substantial part of the work was prepared for an employer or
other person who is not a national or domiciliary of the United States
or a domestic corporation or enterprise;

(2) where the United States Customs Service is presented with an import
statement issued under the seal of the Copyright Office, in which case a
total of no more than two thousand copies of any one such work shall be
allowed entry; the import statement shall be issued upon request to the
copyright owner or to a person designated by such owner at the time of
registration for the work under section 408 or at any time thereafter;

(3) where importation is sought under the authority or for the use,
other than in schools, of the Government of the United States or of any
State or political subdivision of a State;

(4) where importation, for use and not for sale, is sought-

(A) by any person with respect to no more than one copy of any work at
any one time;

(B) by any person arriving from outside the United States, with respect
to copies forming part of such person's personal baggage; or

(C) by an organization operated for scholarly, educational, or religious
purposes and not for private gain, with respect to copies intended to
form a part of its library;

(5) where the copies are reproduced in raised characters for the use of
the blind; or

(6) where, in addition to copies imported under clauses (3) and (4) of
this subsection, no more than two thousand copies of any one such work,
which have not been manufactured in the United States or Canada, are
publicly distributed in the United States; or

(7) where, on the date when importation is sought or public distribution
in the United States is made-

(A) the author of any substantial part of such material is an individual
and receives compensation for the transfer or license of the right to
distribute the work in the United States; and

(B) the first publication of the work has previously taken place outside
the United States under a transfer or license granted by such author to
a transferee or licensee who was not a national or domiciliary of the
United States or a domestic corporation or enterprise; and

(C) there has been no publication of an authorized edition of the work
of which the copies were manufactured in the United States; and

(D) the copies were reproduced under a transfer or license granted by
such author or by the transferee or licensee of the right of first
publication as mentioned in subclause (B), and the transferee or the
licensee of the right of reproduction was not a national or domiciliary
of the United States or a domestic corporation or enterprise.

(c) The requirement of this section that copies be manufactured in the
United States or Canada is satisfied if-

(1) in the case where the copies are printed directly from type that has
been set, or directly from plates made from such type, the setting of
the type and the making of the plates have been performed in the United
States or Canada; or

(2) in the case where the making of plates by a lithographic or
photoengraving process is a final or intermediate step preceding the
printing of the copies, the making of the plates has been performed in
the United States or Canada; and

(3) in any case, the printing or other final process of producing
multiple copies and any binding of the copies have been performed in the
United States or Canada.

(d) Importation or public distribution of copies in violation of this
section does not invalidate protection for a work under this title.
However, in any civil action or criminal proceeding for infringement of
the exclusive rights to reproduce and distribute copies of the work, the
infringer has a complete defense with respect to all of the nondramatic
literary material comprised in the work and any other parts of the work
in which the exclusive rights to reproduce and distribute copies are
owned by the same person who owns such exclusive rights in the
nondramatic literary material, if the infringer proves-

(1) that copies of the work have been imported into or publicly
distributed in the United States in violation of this section by or with
the authority of the owner of such exclusive rights; and

(2) that the infringing copies were manufactured in the United States or
Canada in accordance with the provisions of subsection (c); and

(3) that the infringement was commenced before the effective date of
registration for an authorized edition of the work, the copies of which
have been manufactured in the United States or Canada in accordance with
the provisions of subsection (c).

(e) In any action for infringement of the exclusive rights to reproduce
and distribute copies of a work containing material required by this
section to be manufactured in the United States or Canada, the copyright
owner shall set forth in the complaint the names of the persons or
organizations who performed the processes specified by subsection (c)
with respect to that material, and the places where those processes were
performed.

Section 602. Infringing importation of copies or phonorecords

(a) Importation into the United States, without the authority of the
owner of copyright under this title, of copies or phonorecords of a work
that have been acquired outside the United States is an infringement of
the exclusive right to distribute copies or phonorecords under section
106, actionable under section 501. This subsection does not apply to-

(1) importation of copies or phonorecords under the authority or for the
use of the Government of the United States or of any State or political
subdivision of a State, but not including copies or phonorecords for use
in schools, or copies of any audiovisual work imported for purposes
other than archival use;

(2) importation, for the private use of the importer and not for
distribution, by any person with respect to no more than one copy or
phonorecord of any one work at any one time, or by any person arriving
from outside the United States with respect to copies or phonorecords
forming part of such person's personal baggage; or

(3) importation by or for an organization operated for scholarly,
educational, or religious purposes and not for private gain, with
respect to no more than one copy of an audiovisual work solely for its
archival purposes, and no more than five copies or phonorecords of any
other work for its library lending or archival purposes, unless the
importation of such copies or phonorecords is part of an activity
consisting of systematic reproduction or distribution, engaged in by
such organization in violation of the provisions of section 108(g)(2).

(b) In a case where the making of the copies or phonorecords would have
constituted an infringement of copyright if this title had been
applicable, their importation is prohibited. In a case where the copies
or phonorecords were lawfully made, the United States Customs Service
has no authority to prevent their importation unless the provisions of
section 601 are applicable. In either case, the Secretary of the
Treasury is authorized to prescribe, by regulation, a procedure under
which any person claiming an interest in the copyright in a particular
work may, upon payment of a specified fee, be entitled to notification
by the Customs Service of the importation of articles that appear to be
copies or phonorecords of the work.

Section 603. Importation prohibitions: Enforcement and disposition of
excluded articles [2]

(a) The Secretary of the Treasury and the United States Postal Service
shall separately or jointly make regulations for the enforcement of the
provisions of this title prohibiting importation.

(b) These regulations may require, as a condition for the exclusion of
articles under section 602-

(1) that the person seeking exclusion obtain a court order enjoining
importation of the articles; or

(2) that the person seeking exclusion furnish proof, of a specified
nature and in accordance with prescribed procedures, that the copyright
in which such person claims an interest is valid and that the
importation would violate the prohibition in section 602; the person
seeking exclusion may also be required to post a surety bond for any
injury that may result if the detention or exclusion of the articles
proves to be unjustified.

(c) Articles imported in violation of the importation prohibitions of
this title are subject to seizure and forfeiture in the same manner as
property imported in violation of the customs revenue laws. Forfeited
articles shall be destroyed as directed by the Secretary of the Treasury
or the court, as the case may be.

------------------
Chapter 6 Endnotes

1 In 1982, section 601(a) was amended in the first sentence by
substituting "1986" for "1982." Pub. L. No. 97-215, 96 Stat. 178.

2 The Anticounterfeiting Consumer Protection Act of 1996 amended the
last sentence of section 603(c) by deleting the semicolon and all text
immediately following the words "as the case may be." Pub. L. No.
104-153, 110 Stat. 1386, 1388.

------------------------------------------------------------------------

Chapter 7 [1]

Copyright Office

+ 701. The Copyright Office: General responsibilities and organization
+ 702. Copyright Office regulations
+ 703. Effective date of actions in Copyright Office
+ 704. Retention and disposition of articles deposited in Copyright
Office
+ 705. Copyright Office records: Preparation, maintenance, public
inspection, and searching
+ 706. Copies of Copyright Office records
+ 707. Copyright Office forms and publications
+ 708. Copyright Office fees
+ 709. Delay in delivery caused by disruption of postal or other
services

Section 701. The Copyright Office: General responsibilities and
organization [2]

(a) All administrative functions and duties under this title, except as
otherwise specified, are the responsibility of the Register of
Copyrights as director of the Copyright Office of the Library of
Congress. The Register of Copyrights, together with the subordinate
officers and employees of the Copyright Office, shall be appointed by
the Librarian of Congress, and shall act under the Librarian's general
direction and supervision.

(b) In addition to the functions and duties set out elsewhere in this
chapter, the Register of Copyrights shall perform the following
functions:

(1) Advise Congress on national and international issues relating to
copyright, other matters arising under this title, and related matters.

(2) Provide information and assistance to Federal departments and
agencies and the Judiciary on national and international issues relating
to copyright, other matters arising under this title, and related
matters.

(3) Participate in meetings of international intergovernmental
organizations and meetings with foreign government officials relating to
copyright, other matters arising under this title, and related matters,
including as a member of United States delegations as authorized by the
appropriate Executive branch authority.

(4) Conduct studies and programs regarding copyright, other matters
arising under this title, and related matters, the administration of the
Copyright Office, or any function vested in the Copyright Office by law,
including educational programs conducted cooperatively with foreign
intellectual property offices and international intergovernmental
organizations.

(5) Perform such other functions as Congress may direct, or as may be
appropriate in furtherance of the functions and duties specifically set
forth in this title.

(c) The Register of Copyrights shall adopt a seal to be used on and
after January 1, 1978, to authenticate all certified documents issued by
the Copyright Office.

(d) The Register of Copyrights shall make an annual report to the
Librarian of Congress of the work and accomplishments of the Copyright
Office during the previous fiscal year. The annual report of the
Register of Copyrights shall be published separately and as a part of
the annual report of the Librarian of Congress.

(e) Except as provided by section 706(b) and the regulations issued
thereunder, all actions taken by the Register of Copyrights under this
title are 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).

(f) The Register of Copyrights shall be compensated at the rate of pay
in effect for level III of the Executive Schedule under section 5314 of
title 5.3 The Librarian of Congress shall establish not more than four
positions for Associate Registers of Copyrights, in accordance with the
recommendations of the Register of Copyrights. The Librarian shall make
appointments to such positions after consultation with the Register of
Copyrights. Each Associate Register of Copyrights shall be paid at a
rate not to exceed the maximum annual rate of basic pay payable for
GS-18 of the General Schedule under section 5332 of title 5.

Section 702. Copyright Office regulations [4]

The Register of Copyrights is authorized to establish regulations not
inconsistent with law for the administration of the functions and duties
made the responsibility of the Register under this title. All
regulations established by the Register under this title are subject to
the approval of the Librarian of Congress.

Section 703. Effective date of actions in Copyright Office

In any case in which time limits are prescribed under this title for the
performance of an action in the Copyright Office, and in which the last
day of the prescribed period falls on a Saturday, Sunday, holiday, or
other nonbusiness day within the District of Columbia or the Federal
Government, the action may be taken on the next succeeding business day,
and is effective as of the date when the period expired.

Section 704. Retention and disposition of articles deposited in Copyright
Office

(a) Upon their deposit in the Copyright Office under sections 407 and
408, all copies, phonorecords, and identifying material, including those
deposited in connection with claims that have been refused registration,
are the property of the United States Government.

(b) In the case of published works, all copies, phonorecords, and
identifying material deposited are available to the Library of Congress
for its collections, or for exchange or transfer to any other library.
In the case of unpublished works, the Library is entitled, under
regulations that the Register of Copyrights shall prescribe, to select
any deposits for its collections or for transfer to the National
Archives of the United States or to a Federal records center, as defined
in section 2901 of title 44.

(c) The Register of Copyrights is authorized, for specific or general
categories of works, to make a facsimile reproduction of all or any part
of the material deposited under section 408, and to make such
reproduction a part of the Copyright Office records of the registration,
before transferring such material to the Library of Congress as provided
by subsection (b), or before destroying or otherwise disposing of such
material as provided by subsection (d).

(d) Deposits not selected by the Library under subsection (b), or
identifying portions or reproductions of them, shall be retained under
the control of the Copyright Office, including retention in Government
storage facilities, for the longest period considered practicable and
desirable by the Register of Copyrights and the Librarian of Congress.
After that period it is within the joint discretion of the Register and
the Librarian to order their destruction or other disposition; but, in
the case of unpublished works, no deposit shall be knowingly or
intentionally destroyed or otherwise disposed of during its term of
copyright unless a facsimile reproduction of the entire deposit has been
made a part of the Copyright Office records as provided by subsection
(c).

(e) The depositor of copies, phonorecords, or identifying material under
section 408, or the copyright owner of record, may request retention,
under the control of the Copyright Office, of one or more of such
articles for the full term of copyright in the work. The Register of
Copyrights shall prescribe, by regulation, the conditions under which
such requests are to be made and granted, and shall fix the fee to be
charged under section 708(a)(10) if the request is granted.

Section 705. Copyright Office records: Preparation, maintenance, public
inspection, and searching [5]

(a) The Register of Copyrights shall ensure that records of deposits,
registrations, recordations, and other actions taken under this title
are maintained, and that indexes of such records are prepared.

(b) Such records and indexes, as well as the articles deposited in
connection with completed copyright registrations and retained under the
control of the Copyright Office, shall be open to public inspection.

(c) Upon request and payment of the fee specified by section 708, the
Copyright Office shall make a search of its public records, indexes, and
deposits, and shall furnish a report of the information they disclose
with respect to any particular deposits, registrations, or recorded
documents.

Section 706. Copies of Copyright Office records

(a) Copies may be made of any public records or indexes of the Copyright
Office; additional certificates of copyright registration and copies of
any public records or indexes may be furnished upon request and payment
of the fees specified by section 708.

(b) Copies or reproductions of deposited articles retained under the
control of the Copyright Office shall be authorized or furnished only
under the conditions specified by the Copyright Office regulations.

Section 707. Copyright Office forms and publications

(a) Catalog of Copyright Entries. The Register of Copyrights shall
compile and publish at periodic intervals catalogs of all copyright
registrations. These catalogs shall be divided into parts in accordance
with the various classes of works, and the Register has discretion to
determine, on the basis of practicability and usefulness, the form and
frequency of publication of each particular part.

(b) Other Publications. The Register shall furnish, free of charge upon
request, application forms for copyright registration and general
informational material in connection with the functions of the Copyright
Office. The Register also has the authority to publish compilations of
information, bibliographies, and other material he or she considers to
be of value to the public.

(c) Distribution of Publications. All publications of the Copyright
Office shall be furnished to depository libraries as specified under
section 1905 of title 44, and, aside from those furnished free of
charge, shall be offered for sale to the public at prices based on the
cost of reproduction and distribution.

Section 708. Copyright Office fees [6]

(a) Fees. Fees shall be paid to the Register of Copyrights-

(1) on filing each application under section 408 for registration of a
copyright claim or for a supplementary registration, including the
issuance of a certificate of registration if registration is made;

(2) on filing each application for registration of a claim for renewal
of a subsisting copyright under section 304(a), including the issuance
of a certificate of registration if registration is made;

(3) for the issuance of a receipt for a deposit under section 407;

(4) for the recordation, as provided by section 205, of a transfer of
copyright ownership or other document;

(5) for the filing, under section 115(b), of a notice of intention to
obtain a compulsory license;

(6) for the recordation, under section 302(c), of a statement revealing
the identity of an author of an anonymous or pseudonymous work, or for
the recordation, under section 302(d), of a statement relating to the
death of an author;

(7) for the issuance, under section 706, of an additional certificate of
registration;

(8) for the issuance of any other certification; and

(9) for the making and reporting of a search as provided by section 705,
and for any related services.

The Register of Copyrights is authorized to fix fees for other services,
including the cost of preparing copies of Copyright Office records,
whether or not such copies are certified, based on the cost of providing
the service.

(b) Adjustment of Fees. The Register of Copyrights may, by regulation,
adjust the fees for the services specified in paragraphs (1) through (9)
of subsection (a) in the following manner: [7]

(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 adjustment 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), adjust 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
adjusted, 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.

(c) The fees prescribed by or under this section are applicable to the
United States Government and any of its agencies, employees, or
officers, but the Register of Copyrights has discretion to waive the
requirement of this subsection in occasional or isolated cases involving
relatively small amounts.

(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.

Section 709. Delay in delivery caused by disruption of postal or other
services

In any case in which the Register of Copyrights determines, on the basis
of such evidence as the Register may by regulation require, that a
deposit, application, fee, or any other material to be delivered to the
Copyright Office by a particular date, would have been received in the
Copyright Office in due time except for a general disruption or
suspension of postal or other transportation or communications services,
the actual receipt of such material in the Copyright Office within one
month after the date on which the Register determines that the
disruption or suspension of such services has terminated, shall be
considered timely.

------------------
Chapter 7 Endnotes

1 The Work Made for Hire and Copyright Corrections Act of 2000 amended
the table of sections for chapter 7 by deleting section 710, entitled,
"Reproduction for use of the blind and physically handicapped: Voluntary
licensing forms and procedures." Pub. L. No. 106-379, 114 Stat. 1444,
1445.

2 The Copyright Fees and Technical Amendments Act of 1989 amended
section 701 by adding subsection (e). Pub. L. No. 101-319, 104 Stat.
290. In 1998, the Digital Millennium Copyright Act amended section 701
by adding a new subsection (b), redesignating former subsections (b)
through (e) as (c) through (f) respectively, and, in the new subsection
(f), by substituting "III" for "IV" and "5314" for "5315." Pub. L. No.
105-304, 112 Stat. 2860, 2887.

3 Title 5 of the *United States Code* is entitled "Government
Organization and Employees."

4 Copyright Office regulations are published in the *Federal Register
[http://www.loc.gov/copyright/fedreg/] *and in title 37, Chapter II,
of the *Code of Federal Regulations.
[http://www.loc.gov/copyright/title37/] *

5 The Work Made for Hire and Copyright Corrections Act of 2000 amended
section 705 by rewriting paragraph (a). Pub. L. No. 106-379, 114 Stat.
1444, 1445.

6 The Copyright Fees and Technical Amendments Act of 1989 amended
section 708 by substituting a new subsection (a), by redesignating
subsections (b) and (c) as subsections (c) and (d), respectively, and by
adding a new subsection (b). Pub. L. No. 101-318, 104 Stat. 287. The Act
states that these amendments "shall take effect 6 months after the date
of the enactment of this Act" and shall apply to:

(A) claims to original, supplementary, and renewal copyright received
for registration, and to items received for recordation in the Copyright
Office, on or after such effective date, and

(B) other requests for services received on or after such effective
date, or received before such effective date for services not yet
rendered as of such date.

With respect to prior claims, the Act states that claims to original,
supplementary, and renewal copyright received for registration and items
received for recordation in acceptable form in the Copyright Office
before the above mentioned effective date, and requests for services
which are rendered before such effective date "shall be governed by
section 708 of title 17, United States Code, as in effect before such
effective date." Pub. L. No. 101-318, 104 Stat. 287, 288.

The Copyright Renewal Act of 1992 amended paragraph (2) of section
708(a) by striking the words "in its first term" and by substituting
"$20" in lieu of "$12." Pub. L. No. 102-307, 106 Stat. 264, 266.

In 1997, section 708 was amended by rewriting subsections (b) and (d) in
their entirety. Pub. L. No. 105-80, 111 Stat. 1529, 1532.

The Work Made for Hire and Copyright Corrections Act of 2000 amended
section 708 by rewriting subsection (a), by substituting new language
for the first sentence in subsection (b) and by substituting
"adjustment" for "increase" in paragraph (b)(1), the word "adjust" for
"increase" in paragraph (b)(2) and the word "adjusted" for "increased"
in paragraph (b)(5). Pub. L. No. 106-379, 114 Stat. 1444, 1445. The Act
also stated that "The fees under section 708(a) of title 17, United
States Code, on the date of the enactment of this Act shall be the fees
in effect under section 708(a) of such title on the day before such date
of enactment."

7 The current fees may be found in the *Code of Federal Regulations,
[http://www.loc.gov/copyright/title37/] * at 37 C.F.R. Sec. 201.3,
[http://www.loc.gov/copyright/title37/] as authorized by Pub. L. No.
105-80, 111 Stat. 1529, 1532. In Pub. L. No. 105-80, Congress amended
section 708(b) to require that the Register of Copyrights establish fees
by regulation.

------------------------------------------------------------------------

Chapter 8 [1]

Copyright Arbitration Royalty Panels

+ 801. Copyright arbitration royalty panels: Establishment and purpose
+ 802. Membership and proceedings of copyright arbitration royalty
panels
+ 803. Institution and conclusion of proceedings

Section 801. Copyright arbitration royalty panels: Establishment and
purpose [2]

(a) Establishment. The Librarian of Congress, upon the recommendation of
the Register of Copyrights, is authorized to appoint and convene
copyright arbitration royalty panels.

(b) Purposes. Subject to the provisions of this chapter, the purposes of
the copyright arbitration royalty panels shall be as follows:

(1) To make determinations concerning the adjustment of reasonable
copyright royalty rates as provided in sections 114, 115, 116, and 119,
and to make determinations as to reasonable terms and rates of royalty
payments as provided in section 118. The rates applicable under sections
114(f)(1)(B), 115, and 116 shall be calculated to achieve the following
objectives:

(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, technological contribution, capital
investment, cost, risk, and 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 solely in accordance with the following
provisions:

(A) The rates established by section 111(d)(1)(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: *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)
(1)(B) shall be permitted: *And provided further, *That no increase in
the royalty fee shall be permitted based on any reduction in the average
number of distant signal equivalents per subscriber. The copyright
arbitration royalty panels may consider all factors relating to the
maintenance of such level of payments including, as an extenuating
factor, whether the industry has been restrained by subscriber rate
regulating authorities from increasing the rates for the basic service
of providing secondary transmissions.

(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 signals beyond the local service area of the primary
transmitters of such signals, the royalty rates established by section
111(d)(1)(B) may be adjusted to insure that the rates for the additional
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 Communications Commission rules and
regulations, the copyright arbitration royalty panels 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 (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 regulations of the
Federal Communications Commission with respect to syndicated and sports
program exclusivity after April 15, 1976, the rates established by
section 111(d)(1)(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)(1)(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.

(3) To distribute royalty fees deposited with the Register of Copyrights
under sections 111, 116, 119(b), and 1003, and to determine, in cases
where controversy exists, the distribution of such fees.

(c) Rulings. The Librarian of Congress, upon the recommendation of the
Register of Copyrights, may, before a copyright arbitration royalty
panel is convened, make any necessary procedural or evidentiary rulings
that would apply to the proceedings conducted by such panel, 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.

(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).

Section 802. Membership and proceedings of copyright arbitration royalty
panels [3]

(a) Composition of Copyright Arbitration Royalty Panels. A copyright
arbitration royalty panel shall consist of 3 arbitrators selected by the
Librarian of Congress pursuant to subsection (b).

(b) Selection of Arbitration Panel. Not later than 10 days after
publication of a notice in the Federal Register initiating an
arbitration proceeding under section 803, and in accordance with
procedures specified by the Register of Copyrights, the Librarian of
Congress shall, upon the recommendation of the Register of Copyrights,
select 2 arbitrators from lists provided by professional arbitration
associations. Qualifications of the arbitrators shall include experience
in conducting arbitration proceedings and facilitating the resolution
and settlement of disputes, and any qualifications which the Librarian
of Congress, upon the recommendation of the Register of Copyrights,
shall adopt by regulation. The 2 arbitrators so selected shall, within
10 days after their selection, choose a third arbitrator from the same
lists, who shall serve as the chairperson of the arbitrators. If such 2
arbitrators fail to agree upon the selection of a third arbitrator, the
Librarian of Congress shall promptly select the third arbitrator. The
Librarian of Congress, upon the recommendation of the Register of
Copyrights, shall adopt regulations regarding standards of conduct which
shall govern arbitrators and the proceedings under this chapter. [4]

(c) Arbitration Proceedings. Copyright arbitration royalty panels shall
conduct arbitration proceedings, subject to subchapter II of chapter 5
of title 5, for the purpose of making their determinations in carrying
out the purposes set forth in section 801. The arbitration panels shall
act on the basis of a fully documented written record, prior decisions
of the Copyright Royalty Tribunal, prior copyright arbitration panel
determinations, and rulings by the Librarian of Congress under section
801(c). Any copyright owner who claims to be entitled to royalties under
section 111, 112, 114, 116, or 119, any transmitting organization
entitled to a statutory license under section 112(f), any person
entitled to a statutory license under section 114(d), any person
entitled to a compulsory license under section 115, or any interested
copyright party who claims to be entitled to royalties under section
1006, may submit relevant information and proposals to the arbitration
panels in proceedings applicable to such copyright owner or interested
copyright party, and any other person participating in arbitration
proceedings may submit such relevant information and proposals to the
arbitration panel conducting the proceedings. In ratemaking proceedings,
the parties to the proceedings shall bear the entire cost thereof in
such manner and proportion as the arbitration panels shall direct. In
distribution proceedings, the parties shall bear the cost in direct
proportion to their share of the distribution.

(d) Procedures. Effective on the date of the enactment of the Copyright
Royalty Tribunal Reform Act of 1993, the Librarian of Congress shall
adopt the rules and regulations set forth in chapter 3 of title 37 of
the Code of Federal Regulations to govern proceedings under this
chapter. Such rules and regulations shall remain in effect unless and
until the Librarian, upon the recommendation of the Register of
Copyrights, adopts supplemental or superseding regulations under
subchapter II of chapter 5 of title 5.

(e) Report to the Librarian of Congress. Not later than 180 days after
publication of the notice in the Federal Register initiating an
arbitration proceeding, the copyright arbitration royalty panel
conducting the proceeding shall report to the Librarian of Congress its
determination concerning the royalty fee or distribution of royalty
fees, as the case may be. Such report shall be accompanied by the
written record, and shall set forth the facts that the arbitration panel
found relevant to its determination.

(f) Action by Librarian of Congress. Within 90 days after receiving the
report of a copyright arbitration royalty panel under subsection (e),
the Librarian of Congress, upon the recommendation of the Register of
Copyrights, shall adopt or reject the determination of the arbitration
panel. The Librarian shall adopt the determination of the arbitration
panel unless the Librarian finds that the determination is arbitrary or
contrary to the applicable provisions of this title. If the Librarian
rejects the determination of the arbitration panel, the Librarian shall,
before the end of an additional 30-day period, and after full
examination of the record created in the arbitration proceeding, issue
an order setting the royalty fee or distribution of fees, as the case
may be. The Librarian shall cause to be published in the Federal
Register the determination of the arbitration panel, and the decision of
the Librarian (including an order issued under the preceding sentence).
The Librarian shall also publicize such determination and decision in
such other manner as the Librarian considers appropriate. The Librarian
shall also make the report of the arbitration panel and the accompanying
record available for public inspection and copying.

(g) Judicial Review. Any decision of the Librarian of Congress under
subsection (f) with respect to a determination of an arbitration panel
may be appealed, by any aggrieved party who would be bound by the
determination, to the United States Court of Appeals for the District of
Columbia Circuit, within 30 days after the publication of the decision
in the Federal Register. If no appeal is brought within such 30-day
period, the decision of the Librarian is final, and the royalty fee or
determination with respect to the distribution of fees, as the case may
be, shall take effect as set forth in the decision. When this title
provides that the royalty rates or terms that were previously in effect
are to expire on a specified date, any adjustment by the Librarian of
those rates or terms shall be effective as of the day following the date
of expiration of the rates or terms that were previously in effect, even
if the Librarian's decision is rendered on a later date. The pendency of
an appeal under this paragraph shall not relieve persons obligated to
make royalty payments under sections 111, 112, 114, 115, 116, 118, 119,
or 1003 who would be affected by the determination on appeal to deposit
the statement of account and royalty fees specified in those sections.
The court shall have jurisdiction to modify or vacate a decision of the
Librarian only if it finds, on the basis of the record before the
Librarian, that the Librarian acted in an arbitrary manner. If the court
modifies the decision of the Librarian, the court shall have
jurisdiction to enter its own determination with respect to the amount
or distribution of royalty fees and costs, to order the repayment of any
excess fees, and to order the payment of any underpaid fees, and the
interest pertaining respectively thereto, in accordance with its final
judgment. The court may further vacate the decision of the arbitration
panel and remand the case to the Librarian for arbitration proceedings
in accordance with subsection (c).

(h) Administrative Matters.

(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).

(2) Positions required for administration of compulsory licensing.
Section 307 of the Legislative Branch Appropriations Act, 1994, shall
not apply to employee positions in the Library of Congress that are
required to be filled in order to carry out section 111, 112, 114, 115,
116, 118, or 119 or chapter 10.

Section 803. Institution and conclusion of proceedings [5]

(a)(1) With respect to proceedings under section 801(b)(1) concerning
the adjustment of royalty rates as provided in sections 112, 114, 115,
and 116, and with respect to proceedings under subparagraphs (A) and (D)
of section 801(b)(2), during the calendar years specified in the
schedule set forth in paragraphs (2), (3), (4), and (5), any owner or
user of a copyrighted work whose royalty rates are specified by this
title, established by the Copyright Royalty Tribunal before the date of
the enactment of the Copyright Royalty Tribunal Reform Act of 1993, or
established by a copyright arbitration royalty panel after such date of
enactment, may file a petition with the Librarian of Congress declaring
that the petitioner requests an adjustment of the rate. The Librarian of
Congress shall, upon the recommendation of the Register of Copyrights,
make a determination as to whether the petitioner has such a significant
interest in the royalty rate in which an adjustment is requested. If the
Librarian determines that the petitioner has such a significant
interest, the Librarian shall cause notice of this determination, with
the reasons therefor, to be published in the Federal Register, together
with the notice of commencement of proceedings under this chapter.

(2) In proceedings under section 801(b)(2)(A) and (D), a petition
described in paragraph (1) may be filed during 1995 and in each
subsequent fifth calendar year.

(3) In proceedings under section 801(b)(1) concerning the adjustment of
royalty rates as provided in section 115, a petition described in
paragraph (1) may be filed in 1997 and in each subsequent tenth calendar
year or as prescribed in section 115(c)(3)(D).

(4)(A) In proceedings under section 801(b)(1) concerning the adjustment
of royalty rates as provided in section 116, a petition described in
paragraph (1) may be filed at any time within 1 year after negotiated
licenses authorized by section 116 are terminated or expire and are not
replaced by subsequent agreements.

(B) If a negotiated license authorized by section 116 is terminated or
expires and is not replaced by another such license agreement which
provides permission to use a quantity of musical works not substantially
smaller than the quantity of such works performed on coin-operated
phonorecord players during the 1-year period ending March 1, 1989, the
Librarian of Congress shall, upon petition filed under paragraph (1)
within 1 year after such termination or expiration, convene a copyright
arbitration royalty panel. The arbitration panel shall promptly
establish an interim royalty rate or rates for the public performance by
means of a coin-operated phonorecord player of non-dramatic musical
works embodied in phonorecords which had been subject to the terminated
or expired negotiated license agreement. Such rate or rates shall be the
same as the last such rate or rates and shall remain in force until the
conclusion of proceedings by the arbitration panel, in accordance with
section 802, to adjust the royalty rates applicable to such works, or
until superseded by a new negotiated license agreement, as provided in
section 116(b).

(5) With respect to proceedings under section 801(b)(1) concerning the
determination of reasonable terms and rates of royalty payments as
provided in section 112 or 114, the Librarian of Congress shall proceed
when and as provided by those sections.

(b) With respect to proceedings under subparagraph (B) or (C) of section
801(b)(2), following an event described in either of those subsections,
any owner or user of a copyrighted work whose royalty rates are
specified by section 111, or by a rate established by the Copyright
Royalty Tribunal or the Librarian of Congress, may, within twelve
months, file a petition with the Librarian declaring that the petitioner
requests an adjustment of the rate. In this event the Librarian shall
proceed as in subsection (a) of this section. Any change in royalty
rates made by the Copyright Royalty Tribunal or the Librarian of
Congress 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), as the case may be.

(c) With respect to proceedings under section 801(b)(1), concerning the
determination of reasonable terms and rates of royalty payments as
provided in section 118, the Librarian of Congress shall proceed when
and as provided by that section.

(d) With respect to proceedings under section 801(b)(3) or (4),
concerning the distribution of royalty fees in certain circumstances
under section 111, 116, 119, or 1007, the Librarian of Congress shall,
upon a determination that a controversy exists concerning such
distribution, cause to be published in the Federal Register notice of
commencement of proceedings under this chapter.

------------------
Chapter 8 Endnotes

1 The Copyright Royalty Tribunal Reform Act of 1993 amended chapter 8
by substituting a new chapter title heading and by repealing sections
803 and 805 through 810. Pub. L. No. 103-198, 107 Stat. 2304, 2308.

2 In 1986, section 801(b) was amended in paragraph (2)(A) by inserting
"111(d)(1)(B)" in lieu of "111(d)(2)(B)," wherever it appeared. Pub. L.
No. 99-397, 100 Stat. 848. The Satellite Home Viewer Act of 1988 amended
section 801(b)(3) by substituting ", 116 and 119(b)" in lieu of "and
116." Pub. L. No. 100-667, 102 Stat. 3935, 3949, 3958. The Copyright
Royalty Tribunal Reform Act of 1993 amended section 801 by giving it a
new heading, by amending subsection (a) in its entirety, by making
conforming amendments throughout subsection (b), by amending the first
sentence of subsection (c) and by adding subsection (d). Pub. L. No.
103-198, 107 Stat. 2304. In 1997, section 801 was amended by inserting
"119" in the first sentence of subsection (b)(1), by adding paragraphs
(1) and (2) of subsection (c) and by amending subsection (d) in its
entirety. Pub. L. No. 105-80, 111 Stat. 1529, 1533. In 1998, the Digital
Millennium Copyright Act amended the first sentence of section 801(b) by
inserting "114(f)(1)(B)" in lieu of "114." Pub. L. No. 105-304, 112
Stat. 2860, 2902.

3 The Copyright Royalty Tribunal Reform Act of 1993 amended section 802
in its entirety. Pub. L. No. 103-198, 107 Stat. 2304, 2305. In 1997,
section 802(h)(1) was amended in its entirety. Pub. L. No. 105-80, 111
Stat. 1529.

In 1998, the Digital Millennium Copyright Act amended section 802 as
follows: 1) in subsection (c), by inserting in the third sentence "any
transmitting organization entitled to a statutory license under section
112(f)" after "section 111, 112, 114, 116, and 119"; 2) in subsection
(f), by inserting "90" in lieu of "60" in the first sentence and "an
additional 30-day period" in lieu of "that additional 60 day period" in
the third sentence; 3) in subsection (g), by adding the third sentence,
which begins "When this title provides that the royalty rates" and by
inserting "112" after "111"; and 4) by inserting "112" after "111" in
subsection (h)(2). Pub. L. No. 105-304, 112 Stat. 2860, 2902.

4 See title 37, Chapter II, of the *Code of Federal Regulations.*

5 The Copyright Royalty Tribunal Reform Act of 1993 redesignated
section 804 as section 803 and amended the newly designated section 803
in its entirety. Pub. L. No. 103-198, 107 Stat. 2304, 2307. In 1995, the
Digital Performance Right in Sound Recordings Act amended section 803(a)
by adding paragraph (5) and by making conforming amendments throughout
chapter 8. Pub. L. No. 104-39, 109 Stat. 336, 349. In 1998, the Digital
Millennium Copyright Act amended section 803(a) by inserting "112"
before "114" in paragraphs (1) and (5) and by substituting "those
sections" in lieu of "that section" in paragraph (5). Pub. L. No.
105-304, 112 Stat. 2860, 2902.

------------------------------------------------------------------------

Chapter 9 [1]

Protection of Semiconductor Chip Products

+ 901. Definitions
+ 902. Subject matter of protection
+ 903. Ownership, transfer, licensure, and recordation [2]
+ 904. Duration of protection
+ 905. Exclusive rights in mask works
+ 906. Limitation on exclusive rights: reverse engineering; first sale
+ 907. Limitation on exclusive rights: innocent infringement
+ 908. Registration of claims of protection
+ 909. Mask work notice
+ 910. Enforcement of exclusive rights
+ 911. Civil actions
+ 912. Relation to other laws
+ 913. Transitional provisions
+ 914. International transitional provisions

Section 901. Definitions

(a) As used in this chapter

(1) a "semiconductor chip product" is the final or intermediate form of
any product-

(A) having two or more layers of metallic, insulating, or semiconductor
material, deposited or otherwise placed on, or etched away or otherwise
removed from, a piece of semiconductor material in accordance with a
predetermined pattern; and

(B) intended to perform electronic circuitry functions;

(2) a "mask work" is a series of related images, however fixed or
encoded-

(A) having or representing the predetermined, three-dimensional pattern
of metallic, insulating, or semiconductor material present or removed
from the layers of a semiconductor chip product; and

(B) in which series the relation of the images to one another is that
each image has the pattern of the surface of one form of the
semiconductor chip product;

(3) a mask work is "fixed" in a semiconductor chip product when its
embodiment in the product is sufficiently permanent or stable to permit
the mask work to be perceived or reproduced from the product for a
period of more than transitory duration;

(4) to "distribute" means to sell, or to lease, bail, or otherwise
transfer, or to offer to sell, lease, bail, or otherwise transfer;

(5) to "commercially exploit" a mask work is to distribute to the public
for commercial purposes a semiconductor chip product embodying the mask
work; except that such term includes an offer to sell or transfer a
semiconductor chip product only when the offer is in writing and occurs
after the mask work is fixed in the semiconductor chip product;

(6) the "owner" of a mask work is the person who created the mask work,
the legal representative of that person if that person is deceased or
under a legal incapacity, or a party to whom all the rights under this
chapter of such person or representative are transferred in accordance
with section 903(b); except that, in the case of a work made within the
scope of a person's employment, the owner is the employer for whom the
person created the mask work or a party to whom all the rights under
this chapter of the employer are transferred in accordance with section
903(b);

(7) an "innocent purchaser" is a person who purchases a semiconductor
chip product in good faith and without having notice of protection with
respect to the semiconductor chip product;

(8) having "notice of protection" means having actual knowledge that, or
reasonable grounds to believe that, a mask work is protected under this
chapter; and

(9) an "infringing semiconductor chip product" is a semiconductor chip
product which is made, imported, or distributed in violation of the
exclusive rights of the owner of a mask work under this chapter.

(b) For purposes of this chapter, the distribution or importation of a
product incorporating a semiconductor chip product as a part thereof is
a distribution or importation of that semiconductor chip product.

Section 902. Subject matter of protection [3]

(a)(1) Subject to the provisions of subsection (b), a mask work fixed in
a semiconductor chip product, by or under the authority of the owner of
the mask work, is eligible for protection under this chapter if-

(A) on the date on which the mask work is registered under section 908,
or is first commercially exploited anywhere in the world, whichever
occurs first, the owner of the mask work is (i) a national or
domiciliary of the United States, (ii) a national, domiciliary, or
sovereign authority of a foreign nation that is a party to a treaty
affording protection to mask works to which the United States is also a
party, or (iii) a stateless person, wherever that person may be
domiciled;

(B) the mask work is first commercially exploited in the United States;
or

(C) the mask work comes within the scope of a Presidential proclamation
issued under paragraph (2).

(2) Whenever the President finds that a foreign nation extends, to mask
works of owners who are nationals or domiciliaries of the United States
protection (A) on substantially the same basis as that on which the
foreign nation extends protection to mask works of its own nationals and
domiciliaries and mask works first commercially exploited in that
nation, or (B) on substantially the same basis as provided in this
chapter, the President may by proclamation extend protection under this
chapter to mask works (i) of owners who are, on the date on which the
mask works are registered under section 908, or the date on which the
mask works are first commercially exploited anywhere in the world,
whichever occurs first, nationals, domiciliaries, or sovereign
authorities of that nation, or (ii) which are first commercially
exploited in that nation. The President may revise, suspend, or revoke
any such proclamation or impose any conditions or limitations on
protection extended under any such proclamation.

(b) Protection under this chapter shall not be available for a mask work
that-

(1) is not original; or

(2) consists of designs that are staple, commonplace, or familiar in the
semiconductor industry, or variations of such designs, combined in a way
that, considered as a whole, is not original.

(c) In no case does protection under this chapter for a mask work extend
to any idea, procedure, process, system, method of operation, concept,
principle, or discovery, regardless of the form in which it is
described, explained, illustrated, or embodied in such work.

Section 903. Ownership, transfer, licensing, and recordation

(a) The exclusive rights in a mask work subject to protection under this
chapter belong to the owner of the mask work.

(b) The owner of the exclusive rights in a mask work may transfer all of
those rights, or license all or less than all of those rights, by any
written instrument signed by such owner or a duly authorized agent of
the owner. Such rights may be transferred or licensed by operation of
law, may be bequeathed by will, and may pass as personal property by the
applicable laws of intestate succession.

(c)(1) Any document pertaining to a mask work may be recorded in the
Copyright Office if the document filed for recordation bears the actual
signature of the person who executed it, or if it is accompanied by a
sworn or official certification that it is a true copy of the original,
signed document. The Register of Copyrights shall, upon receipt of the
document and the fee specified pursuant to section 908(d), record the
document and return it with a certificate of recordation. The
recordation of any transfer or license under this paragraph gives all
persons constructive notice of the facts stated in the recorded document
concerning the transfer or license.

(2) In any case in which conflicting transfers of the exclusive rights
in a mask work are made, the transfer first executed shall be void as
against a subsequent transfer which is made for a valuable consideration
and without notice of the first transfer, unless the first transfer is
recorded in accordance with paragraph (1) within three months after the
date on which it is executed, but in no case later than the day before
the date of such subsequent transfer.

(d) Mask works prepared by an officer or employee of the United States
Government as part of that person's official duties are not protected
under this chapter, but the United States Government is not precluded
from receiving and holding exclusive rights in mask works transferred to
the Government under subsection (b).

Section 904. Duration of protection

(a) The protection provided for a mask work under this chapter shall
commence on the date on which the mask work is registered under section
908, or the date on which the mask work is first commercially exploited
anywhere in the world, whichever occurs first.

(b) Subject to subsection (c) and the provisions of this chapter, the
protection provided under this chapter to a mask work shall end ten
years after the date on which such protection commences under subsection
(a).

(c) All terms of protection provided in this section shall run to the
end of the calendar year in which they would otherwise expire.

Section 905. Exclusive rights in mask works

The owner of a mask work provided protection under this chapter has the
exclusive rights to do and to authorize any of the following:

(1) to reproduce the mask work by optical, electronic, or any other
means;

(2) to import or distribute a semiconductor chip product in which the
mask work is embodied; and

(3) to induce or knowingly to cause another person to do any of the acts
described in paragraphs (1) and (2).

Section 906. Limitation on exclusive rights: reverse engineering; first
sale

(a) Notwithstanding the provisions of section 905, it is not an
infringement of the exclusive rights of the owner of a mask work for-

(1) a person to reproduce the mask work solely for the purpose of
teaching, analyzing, or evaluating the concepts or techniques embodied
in the mask work or the circuitry, logic flow, or organization of
components used in the mask work; or

(2) a person who performs the analysis or evaluation described in
paragraph (1) to incorporate the results of such conduct in an original
mask work which is made to be distributed.

(b) Notwithstanding the provisions of section 905(2), the owner of a
particular semiconductor chip product made by the owner of the mask
work, or by any person authorized by the owner of the mask work, may
import, distribute, or otherwise dispose of or use, but not reproduce,
that particular semiconductor chip product without the authority of the
owner of the mask work.

Section 907. Limitation on exclusive rights: innocent infringement

(a) Notwithstanding any other provision of this chapter, an innocent
purchaser of an infringing semiconductor chip product-

(1) shall incur no liability under this chapter with respect to the
importation or distribution of units of the infringing semiconductor
chip product that occurs before the innocent purchaser has notice of
protection with respect to the mask work embodied in the semiconductor
chip product; and

(2) shall be liable only for a reasonable royalty on each unit of the
infringing semiconductor chip product that the innocent purchaser
imports or distributes after having notice of protection with respect to
the mask work embodied in the semiconductor chip product.

(b) The amount of the royalty referred to in subsection (a)(2) shall be
determined by the court in a civil action for infringement unless the
parties resolve the issue by voluntary negotiation, mediation, or
binding arbitration.

(c) The immunity of an innocent purchaser from liability referred to in
subsection (a)(1) and the limitation of remedies with respect to an
innocent purchaser referred to in subsection (a)(2) shall extend to any
person who directly or indirectly purchases an infringing semiconductor
chip product from an innocent purchaser.

(d) The provisions of subsections (a), (b), and (c) apply only with
respect to those units of an infringing semiconductor chip product that
an innocent purchaser purchased before having notice of protection with
respect to the mask work embodied in the semiconductor chip product.

Section 908. Registration of claims of protection

(a) The owner of a mask work may apply to the Register of Copyrights for
registration of a claim of protection in a mask work. Protection of a
mask work under this chapter shall terminate if application for
registration of a claim of protection in the mask work is not made as
provided in this chapter within two years after the date on which the
mask work is first commercially exploited anywhere in the world.

(b) The Register of Copyrights shall be responsible for all
administrative functions and duties under this chapter. Except for
section 708, the provisions of chapter 7 of this title relating to the
general responsibilities, organization, regulatory authority, actions,
records, and publications of the Copyright Office shall apply to this
chapter, except that the Register of Copyrights may make such changes as
may be necessary in applying those provisions to this chapter.

(c) The application for registration of a mask work shall be made on a
form prescribed by the Register of Copyrights. Such form may require any
information regarded by the Register as bearing upon the preparation or
identification of the mask work, the existence or duration of protection
of the mask work under this chapter, or ownership of the mask work. The
application shall be accompanied by the fee set pursuant to subsection
(d) and the identifying material specified pursuant to such subsection.

(d) The Register of Copyrights shall by regulation set reasonable fees
for the filing of applications to register claims of protection in mask
works under this chapter, and for other services relating to the
administration of this chapter or the rights under this chapter, taking
into consideration the cost of providing those services, the benefits of
a public record, and statutory fee schedules under this title. The
Register shall also specify the identifying material to be deposited in
connection with the claim for registration.

(e) If the Register of Copyrights, after examining an application for
registration, determines, in accordance with the provisions of this
chapter, that the application relates to a mask work which is entitled
to protection under this chapter, then the Register shall register the
claim of protection and issue to the applicant a certificate of
registration of the claim of protection under the seal of the Copyright
Office. The effective date of registration of a claim of protection
shall be the date on which an application, deposit of identifying
material, and fee, which are determined by the Register of Copyrights or
by a court of competent jurisdiction to be acceptable for registration
of the claim, have all been received in the Copyright Office.

(f) In any action for infringement under this chapter, the certificate
of registration of a mask work shall constitute prima facie evidence (1)
of the facts stated in the certificate, and (2) that the applicant
issued the certificate has met the requirements of this chapter, and the
regulations issued under this chapter, with respect to the registration
of claims.

(g) Any applicant for registration under this section who is
dissatisfied with the refusal of the Register of Copyrights to issue a
certificate of registration under this section may seek judicial review
of that refusal by bringing an action for such review in an appropriate
United States district court not later than sixty days after the
refusal. The provisions of chapter 7 of title 5 shall apply to such
judicial review. The failure of the Register of Copyrights to issue a
certificate of registration within four months after an application for
registration is filed shall be deemed to be a refusal to issue a
certificate of registration for purposes of this subsection and section
910(b)(2), except that, upon a showing of good cause, the district court
may shorten such four-month period.

Section 909. Mask work notice [4]

(a) The owner of a mask work provided protection under this chapter may
affix notice to the mask work, and to masks and semiconductor chip
products embodying the mask work, in such manner and location as to give
reasonable notice of such protection. The Register of Copyrights shall
prescribe by regulation, as examples, specific methods of affixation and
positions of notice for purposes of this section, but these
specifications shall not be considered exhaustive. The affixation of
such notice is not a condition of protection under this chapter, but
shall constitute prima facie evidence of notice of protection.

(b) The notice referred to in subsection (a) shall consist of-

(1) the words "mask work", the symbol *M*, or the symbol [M in a circle]
(the letter M in a circle); and

(2) the name of the owner or owners of the mask work or an abbreviation
by which the name is recognized or is generally known.

Section 910. Enforcement of exclusive rights [5]

(a) Except as otherwise provided in this chapter, any person who
violates any of the exclusive rights of the owner of a mask work under
this chapter, by conduct in or affecting commerce, shall be liable as an
infringer of such rights. As used in this subsection, the term "any
person" includes any State, any instrumentality of a State, and any
officer or employee of a State or instrumentality of a State acting in
his or her official capacity. Any State, and any such instrumentality,
officer, or employee, shall be subject to the provisions of this chapter
in the same manner and to the same extent as any nongovernmental entity.

(b)(1) The owner of a mask work protected under this chapter, or the
exclusive licensee of all rights under this chapter with respect to the
mask work, shall, after a certificate of registration of a claim of
protection in that mask work has been issued under section 908, be
entitled to institute a civil action for any infringement with respect
to the mask work which is committed after the commencement of protection
of the mask work under section 904(a).

(2) In any case in which an application for registration of a claim of
protection in a mask work and the required deposit of identifying
material and fee have been received in the Copyright Office in proper
form and registration of the mask work has been refused, the applicant
is entitled to institute a civil action for infringement under this
chapter with respect to the mask work if notice of the action, together
with a copy of the complaint, is served on the Register of Copyrights,
in accordance with the Federal Rules of Civil Procedure. The Register
may, at his or her option, become a party to the action with respect to
the issue of whether the claim of protection is eligible for
registration by entering an appearance within sixty days after such
service, but the failure of the Register to become a party to the action
shall not deprive the court of jurisdiction to determine that issue.

(c)(1) The Secretary of the Treasury and the United States Postal
Service shall separately or jointly issue regulations for the
enforcement of the rights set forth in section 905 with respect to
importation. These regulations may require, as a condition for the
exclusion of articles from the United States, that the person seeking
exclusion take any one or more of the following actions:

(A) Obtain a court order enjoining, or an order of the International
Trade Commission under section 337 of the Tariff Act of 1930 excluding,
importation of the articles.

(B) Furnish proof that the mask work involved is protected under this
chapter and that the importation of the articles would infringe the
rights in the mask work under this chapter.

(C) Post a surety bond for any injury that may result if the detention
or exclusion of the articles proves to be unjustified.

(2) Articles imported in violation of the rights set forth in section
905 are subject to seizure and forfeiture in the same manner as property
imported in violation of the customs laws. Any such forfeited articles
shall be destroyed as directed by the Secretary of the Treasury or the
court, as the case may be, except that the articles may be returned to
the country of export whenever it is shown to the satisfaction of the
Secretary of the Treasury that the importer had no reasonable grounds
for believing that his or her acts constituted a violation of the law.

Section 911. Civil actions [6]

(a) Any court having jurisdiction of a civil action arising under this
chapter may grant temporary restraining orders, preliminary injunctions,
and permanent injunctions on such terms as the court may deem reasonable
to prevent or restrain infringement of the exclusive rights in a mask
work under this chapter.

(b) Upon finding an infringer liable, to a person entitled under section
910(b)(1) to institute a civil action, for an infringement of any
exclusive right under this chapter, the court shall award such person
actual damages suffered by the person as a result of the infringement.
The court shall also award such person the infringer's profits that are
attributable to the infringement and are not taken into account in
computing the award of actual damages. In establishing the infringer's
profits, such person is required to present proof only of the
infringer's gross revenue, and the infringer is required to prove his or
her deductible expenses and the elements of profit attributable to
factors other than the mask work.

(c) At any time before final judgment is rendered, a person entitled to
institute a civil action for infringement may elect, instead of actual
damages and profits as provided by subsection (b), an award of statutory
damages for all infringements involved in the action, with respect to
any one mask work for which any one infringer is liable individually, or
for which any two or more infringers are liable jointly and severally,
in an amount not more than $250,000 as the court considers just.

(d) An action for infringement under this chapter shall be barred unless
the action is commenced within three years after the claim accrues.

(e)(1) At any time while an action for infringement of the exclusive
rights in a mask work under this chapter is pending, the court may order
the impounding, on such terms as it may deem reasonable, of all
semiconductor chip products, and any drawings, tapes, masks, or other
products by means of which such products may be reproduced, that are
claimed to have been made, imported, or used in violation of those
exclusive rights. Insofar as practicable, applications for orders under
this paragraph shall be heard and determined in the same manner as an
application for a temporary restraining order or preliminary injunction.

(2) As part of a final judgment or decree, the court may order the
destruction or other disposition of any infringing semiconductor chip
products, and any masks, tapes, or other articles by means of which such
products may be reproduced.

(f) In any civil action arising under this chapter, the court in its
discretion may allow the recovery of full costs, including reasonable
attorneys' fees, to the prevailing party.

(g)(1) Any State, any instrumentality of a State, and any officer or
employee of a State or instrumentality of a State acting in his or her
official capacity, shall not be immune, under the Eleventh Amendment of
the Constitution of the United States or under any other doctrine of
sovereign immunity, from suit in Federal court by any person, including
any governmental or nongovernmental entity, for a violation of any of
the exclusive rights of the owner of a mask work under this chapter, or
for any other violation under this chapter.

(2) In a suit described in paragraph (1) for a violation described in
that paragraph, remedies (including remedies both at law and in equity)
are available for the violation to the same extent as such remedies are
available for such a violation in a suit against any public or private
entity other than a State, instrumentality of a State, or officer or
employee of a State acting in his or her official capacity. Such
remedies include actual damages and profits under subsection (b),
statutory damages under subsection (c), impounding and disposition of
infringing articles under subsection (e), and costs and attorney's fees
under subsection (f).

Section 912. Relation to other laws [7]

(a) Nothing in this chapter shall affect any right or remedy held by any
person under chapters 1 through 8 or 10 of this title, or under title
35.

(b) Except as provided in section 908(b) of this title, references to
"this title" or "title 17" in chapters 1 through 8 or 10 of this title
shall be deemed not to apply to this chapter.

(c) The provisions of this chapter shall preempt the laws of any State
to the extent those laws provide any rights or remedies with respect to
a mask work which are equivalent to those rights or remedies provided by
this chapter, except that such preemption shall be effective only with
respect to actions filed on or after January 1, 1986.

(d) Notwithstanding subsection (c), nothing in this chapter shall
detract from any rights of a mask work owner, whether under Federal law
(exclusive of this chapter) or under the common law or the statutes of a
State, heretofore or hereafter declared or enacted, with respect to any
mask work first commercially exploited before July 1, 1983.

Section 913. Transitional provisions

(a) No application for registration under section 908 may be filed, and
no civil action under section 910 or other enforcement proceeding under
this chapter may be instituted, until sixty days after the date of the
enactment of this chapter.

(b) No monetary relief under section 911 may be granted with respect to
any conduct that occurred before the date of the enactment of this
chapter, except as provided in subsection (d).

(c) Subject to subsection (a), the provisions of this chapter apply to
all mask works that are first commercially exploited or are registered
under this chapter, or both, on or after the date of the enactment of
this chapter.

(d)(1) Subject to subsection (a), protection is available under this
chapter to any mask work that was first commercially exploited on or
after July 1, 1983, and before the date of the enactment of this
chapter, if a claim of protection in the mask work is registered in the
Copyright Office before July 1, 1985, under section 908.

(2) In the case of any mask work described in paragraph (1) that is
provided protection under this chapter, infringing semiconductor chip
product units manufactured before the date of the enactment of this
chapter may, without liability under sections 910 and 911, be imported
into or distributed in the United States, or both, until two years after
the date of registration of the mask work under section 908, but only if
the importer or distributor, as the case may be, first pays or offers to
pay the reasonable royalty referred to in section 907(a)(2) to the mask
work owner, on all such units imported or distributed, or both, after
the date of the enactment of this chapter.

(3) In the event that a person imports or distributes infringing
semiconductor chip product units described in paragraph (2) of this
subsection without first paying or offering to pay the reasonable
royalty specified in such paragraph, or if the person refuses or fails
to make such payment, the mask work owner shall be entitled to the
relief provided in sections 910 and 911.

Section 914. International transitional provisions [8]

(a) Notwithstanding the conditions set forth in subparagraphs (A) and
(C) of section 902(a)(1) with respect to the availability of protection
under this chapter to nationals, domiciliaries, and sovereign
authorities of a foreign nation, the Secretary of Commerce may, upon the
petition of any person, or upon the Secretary's own motion, issue an
order extending protection under this chapter to such foreign nationals,
domiciliaries, and sovereign authorities if the Secretary finds-

(1) that the foreign nation is making good faith efforts and reasonable
progress toward-

(A) entering into a treaty described in section 902(a)(1)(A); or

(B) enacting or implementing legislation that would be in compliance
with subparagraph (A) or (B) of section 902(a)(2); and

(2) that the nationals, domiciliaries, and sovereign authorities of the
foreign nation, and persons controlled by them, are not engaged in the
misappropriation, or unauthorized distribution or commercial
exploitation, of mask works; and

(3) that issuing the order would promote the purposes of this chapter
and international comity with respect to the protection of mask works.

(b) While an order under subsection (a) is in effect with respect to a
foreign nation, no application for registration of a claim for
protection in a mask work under this chapter may be denied solely
because the owner of the mask work is a national, domiciliary, or
sovereign authority of that foreign nation, or solely because the mask
work was first commercially exploited in that foreign nation.

(c) Any order issued by the Secretary of Commerce under subsection (a)
shall be effective for such a period as the Secretary designates in the
order, except that no such order may be effective after that date on
which the authority of the Secretary of Commerce terminates under
subsection (e). The effective date of any such order shall also be
designated in the order. In the case of an order issued upon the
petition of a person, such effective date may be no earlier than the
date on which the Secretary receives such petition.

(d)(1) Any order issued under this section shall terminate if-

(A) the Secretary of Commerce finds that any of the conditions set forth
in paragraphs (1), (2), and (3) of subsection (a) no longer exist; or

(B) mask works of nationals, domiciliaries, and sovereign authorities of
that foreign nation or mask works first commercially exploited in that
foreign nation become eligible for protection under subparagraph (A) or
(C) of section 902(a)(1).

(2) Upon the termination or expiration of an order issued under this
section, registrations of claims of protection in mask works made
pursuant to that order shall remain valid for the period specified in
section 904.

(e) The authority of the Secretary of Commerce under this section shall
commence on the date of the enactment of this chapter, and shall
terminate on July 1, 1995.

(f) (1) The Secretary of Commerce shall promptly notify the Register of
Copyrights and the Committees on the Judiciary of the Senate and the
House of Representatives of the issuance or termination of any order
under this section, together with a statement of the reasons for such
action. The Secretary shall also publish such notification and statement
of reasons in the Federal Register.

(2) Two years after the date of the enactment of this chapter, the
Secretary of Commerce, in consultation with the Register of Copyrights,
shall transmit to the Committees on the Judiciary of the Senate and the
House of Representatives a report on the actions taken under this
section and on the current status of international recognition of mask
work protection. The report shall include such recommendation for
modifications of the protection accorded under this chapter to mask
works owned by nationals, domiciliaries, or sovereign authorities of
foreign nations as the Secretary, in consultation with the Register of
Copyrights, considers would promote the purposes of this chapter and
international comity with respect to mask work protection. Not later
than July 1, 1994, the Secretary of Commerce, in consultation with the
Register of Copyrights, shall transmit to the Committees on the
Judiciary of the Senate and the House of Representatives a report
updating the matters contained in the report transmitted under the
preceding sentence.

------------------
Chapter 9 Endnotes

1 In 1984, the Semiconductor Chip Protection Act amended title 17 of
the *United States Code *to add a new chapter 9 entitled "Protection of
Semiconductor Chip Products." Pub. L. No. 98-620, 98 Stat. 3347.

2 In 1997, the heading for section 903 in the table of sections was
amended by adding ", transfer, licensure, and recordation" at the end
thereof, in lieu of "and transfer." Pub. L. No. 105-80, 111 Stat. 1529,
1535.

3 In 1987, section 902 was amended by adding the last sentence in
subsection (a)(2). Pub. L. No. 100-159, 101 Stat. 899, 900.

4 In 1997, section 909 was amended by correcting misspellings in
subsection (b)(1). Pub. L. No. 105-80, 111 Stat. 1529, 1535.

5 In 1990, the Copyright Remedy Clarification Act amended section 910
by adding the last two sentences to subsection (a). Pub. L. No. 101-553,
104 Stat. 2749, 2750. In 1997, a technical correction amended section
910(a) by capitalizing the first word of the second sentence. Pub. L.
No. 105-80, 111 Stat. 1529 1535.

6 In 1990, the Copyright Remedy Clarification Act amended section 911
by adding subsection (g). Pub. L. No. 101-553, 104 Stat. 2749, 2750.

7 In 1988, the Judicial Improvements and Access to Justice Act amended
section 912 by deleting subsection (d) and redesignating subsection (e)
as subsection (d). Pub. L. No. 100-702, 102 Stat. 4642, 4672. The Audio
Home Recording Act of 1992 amended section 912 by inserting "or 10"
after "8" in subsections (a) and (b). Pub. L. No. 102-563, 106 Stat.
4237, 4248.

8 In 1987, section 914 was amended in subsection (e) by inserting "on
July 1, 1991" in lieu of "three years after such date of enactment" and
by adding the last sentence to subsection (f)(2). Pub. L. No. 100-159,
101 Stat. 899. The Semiconductor International Protection Extension Act
of 1991 amended section 914 by inserting "or implementing" after
"enacting" in the first sentence of subsection (a)(1)(B), by changing
the date in subsection (e) to "July 1, 1995" and by changing the date in
the last sentence of subsection (f)(2) to "July 1, 1994." Pub. L. No.
102-64, 105 Stat. 320.

On July 1, 1995, section 914 expired as required by subsection (e). It
was rendered largely unnecessary upon the entry into force on January 1,
1995, of the Agreement on Trade-Related Aspects of Intellectual Property
Rights (TRIPs)(Annex 1C to the World Trade Organization (WTO)
Agreement). Part II, section 6 of TRIPs protects semiconductor chip
products and was the basis for Presidential Proclamation No. 6780, March
23, 1995, under section 902(a)(2) extending protection to all present
and future WTO members (34 countries as of February 10, 1999), as of
January 1, 1996. See Part IV of the Appendix.

For a discussion of Congressional findings regarding extending
protection to semiconductor chip products of foreign entities, see Pub.
L. No. 100-159, 101 Stat. 899, and the Semiconductor International
Protection Extension Act of 1991, Pub. L. No. 102-64, 105 Stat. 320.5

------------------------------------------------------------------------

Chapter 10 [1]

Digital Audio Recording Devices and Media

+ Subchapter A--Definitions
+ 1001. Definitions
+ Subchapter B--Copying Controls
+ 1002. Incorporation of copying controls
+ Subchapter C--Royalty Payments
+ 1003. Obligation to make royalty payments
+ 1004. Royalty payments
+ 1005. Deposit of royalty payments and deduction of expenses
+ 1006. Entitlement to royalty payments
+ 1007. Procedures for distributing royalty payments
+ Subchapter D--Prohibition on Certain Infringement Actions, Remedies,
and Arbitration
+ 1008. Prohibition on certain infringement actions
+ 1009. Civil remedies
+ 1010. Arbitration of certain disputes

Subchapter A Definitions

Section 1001. Definitions

As used in this chapter, the following terms have the following
meanings:

(1) A "digital audio copied recording" is a reproduction in a digital
recording format of a digital musical recording, whether that
reproduction is made directly from another digital musical recording or
indirectly from a transmission.

(2) A "digital audio interface device" is any machine or device that is
designed specifically to communicate digital audio information and
related interface data to a digital audio recording device through a
nonprofessional interface.

(3) A "digital audio recording device" is any machine or device of a
type commonly distributed to individuals for use by individuals, whether
or not included with or as part of some other machine or device, the
digital recording function of which is designed or marketed for the
primary purpose of, and that is capable of, making a digital audio
copied recording for private use, except for-

(A) professional model products, and

(B) dictation machines, answering machines, and other audio recording
equipment that is designed and marketed primarily for the creation of
sound recordings resulting from the fixation of nonmusical sounds.

(4)(A) A "digital audio recording medium" is any material object in a
form commonly distributed for use by individuals, that is primarily
marketed or most commonly used by consumers for the purpose of making
digital audio copied recordings by use of a digital audio recording
device.

(B) Such term does not include any material object-

(i) that embodies a sound recording at the time it is first distributed
by the importer or manufacturer; or

(ii) that is primarily marketed and most commonly used by consumers
either for the purpose of making copies of motion pictures or other
audiovisual works or for the purpose of making copies of nonmusical
literary works, including computer programs or data bases.

(5)(A) A "digital musical recording" is a material object-

(i) in which are fixed, in a digital recording format, only sounds, and
material, statements, or instructions incidental to those fixed sounds,
if any, and

(ii) from which the sounds and material can be perceived, reproduced, or
otherwise communicated, either directly or with the aid of a machine or
device.

(B) A "digital musical recording" does not include a material object-

(i) in which the fixed sounds consist entirely of spoken word
recordings, or

(ii) in which one or more computer programs are fixed, except that a
digital musical recording may contain statements or instructions
constituting the fixed sounds and incidental material, and statements or
instructions to be used directly or indirectly in order to bring about
the perception, reproduction, or communication of the fixed sounds and
incidental material.

(C) For purposes of this paragraph-

(i) a "spoken word recording" is a sound recording in which are fixed
only a series of spoken words, except that the spoken words may be
accompanied by incidental musical or other sounds, and

(ii) the term "incidental" means related to and relatively minor by
comparison.

(6) "Distribute" means to sell, lease, or assign a product to consumers
in the United States, or to sell, lease, or assign a product in the
United States for ultimate transfer to consumers in the United States.

(7) An "interested copyright party" is-

(A) the owner of the exclusive right under section 106(1) of this title
to reproduce a sound recording of a musical work that has been embodied
in a digital musical recording or analog musical recording lawfully made
under this title that has been distributed;

(B) the legal or beneficial owner of, or the person that controls, the
right to reproduce in a digital musical recording or analog musical
recording a musical work that has been embodied in a digital musical
recording or analog musical recording lawfully made under this title
that has been distributed;

(C) a featured recording artist who performs on a sound recording that
has been distributed; or

(D) any association or other organization-

(i) representing persons specified in subparagraph (A), (B), or (C), or

(ii) engaged in licensing rights in musical works to music users on
behalf of writers and publishers.

(8) To "manufacture" means to produce or assemble a product in the
United States. A "manufacturer" is a person who manufactures.

(9) A "music publisher" is a person that is authorized to license the

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