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H.L.C.
107TH CONGRESS 2D SESSION
H. R.
IN THE HOUSE OF REPRESENTATIVES
Mr. INSLEE introduced the following bill; which was referred to the Committee on
A BILL
To amend title 17, United States Code, with respect to royalty fees for webcasting, and for other purposes. 1 Be it enacted by the Senate and House of Representa-
2 tives of the United States of America in Congress assembled, 3 4
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Internet Radio Fair-
5 ness Act’’. 6 7 8
SEC. 2. APPLICABILITY OF ROYALTY RATES TO SMALL BUSINESS CONCERNS.
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(a) INAPPLICABILITY
OF
DETERMINATION
OF
JULY
9 8, 2002.—The determination by the Librarian of Congress
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H.L.C.
2 1 of rates and terms for the digital performance of sound 2 recordings and ephemeral recordings of July 8, 2002, pur3 suant to section 112(e) and section 114(f)(2)(B) of title 4 17, United States Code, shall not apply to transmissions 5 and ephemeral recordings by small entities. 6 (b) FUTURE PROCEEDINGS.—The first determination
7 of terms and rates of royalty payments that is made pur8 suant to section 114(f)(2)(B) of title 17, United States 9 Code, after the enactment of this Act shall apply to trans10 missions (to which such section applies) that are made by 11 small business concerns during the period beginning on 12 the date of the enactment of the Digital Millennium Copy13 right Act and ending on the date provided for in that de14 termination. 15 (c) VOLUNTARY NEGOTIATIONS.—Nothing in this
16 section shall affect the participation of small entities in 17 voluntary negotiation proceedings under section
18 114(f)(2)(A) and (C)(i) of title 17, United States Code. 19 20
SEC. 3. STANDARD FOR DETERMINING RATES.
Section 114(f)(2)(B) of title 17, United States Code,
21 is amended— 22 23 24 (1) by striking ‘‘Such rates and terms shall distinguish’’ and all that follows through ‘‘capital investment, cost, and risk.’’; and
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H.L.C.
3 1 2 3 4 5 6 7 8 (2) by inserting after ‘‘as the parties may agree.’’ the following: ‘‘The copyright arbitration royalty panel shall establish rates and terms in accordance with the objectives set forth in section 801(b)(1).’’.
SEC. 4. COSTS OF PROCEEDINGS; REGULATING FLEXIBILITY.
(a) COSTS
OF
PROCEEDINGS.—Section 802(c) of title
9 17, United States Code, is amended— 10 11 12 13 14 15 16 17 18 19 20 (1) by inserting after ‘‘In ratemaking proceedings, the parties to the proceedings’’ the following: ‘‘, except for small entities that are parties to ratemaking proceedings under section
114(f)(2)(B),’’; and (2) by adding at the end the following: ‘‘In this subsection, the term ‘small entity’ means a small business, small organization, or small governmental jurisdiction, as those terms are defined in section 601 of title 5.’’. (b) REGULATING FLEXIBILITY.—Section 701(e) of
21 title 17, United States Code, is amended by inserting be22 fore the period ‘‘and to the provisions of chapter 6 of title 23 5’’.
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H.L.C.
4 1 2 3
SEC. 5. ELIMINATION OF CERTAIN STATUTORY LICENSES FOR EPHEMERAL RECORDINGS.
(a) ELIMINATION
OF
STATUTORY LICENSE.—Section
4 112(a) of title 17, United States Code, is amended by add5 ing at the end the following: 6 ‘‘(3) Notwithstanding the provisions of section 106
7 and paragraph (1) of this subsection, and except in the 8 case of a motion picture or other audiovisual work, it is 9 not an infringement of copyright for a transmitting orga10 nization entitled to transmit to the public a performance 11 or display of a work, under a license, including a statutory 12 license under section 114(f), or transfer of the copyright 13 or for a transmitting organization that is a broadcast 14 radio station licensed as such by the Federal Communica15 tions Commission and that makes a broadcast trans16 mission of a sound recording in a digital format on a non17 subscription basis, to make one or more copies or 18 phonorecords of that work, if— 19 20 21 ‘‘(A) each copy or phonorecord is retained and used solely by the transmitting organization that made it; and ‘‘(B) each copy or phonorecord is used solely for the purpose of making the transmitting organization’s own transmissions or for purposes of archival preservation or security.’’.
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22 23 24 25
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H.L.C.
5 1 (b) CONFORMING AMENDMENTS.—Section 112(e) of
2 title 17, United States Code, is amended— 3 4 5 6 7 8 (1) by striking in paragraph (1) ‘‘or under a statutory license in accordance with section 114(f)’’; and (2) by striking in paragraph (1)(B) ‘‘a statutory license in accordance with section 114(f) or’’. (c) EFFECTIVE DATE.—The amendments made by
9 subsection (a) take effect on January 1, 2003. 10 11
SEC. 6. DEFINITION.
In this Act, the term ‘‘small entity’’ means a small
12 business, small organization, or small governmental juris13 diction, as those terms are defined in section 601 of title 14 5, United States Code.
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