Section 118. Scope of exclusive rights: Use of certain works in

connection with noncommercial broadcasting.

(a) The exclusive rights provided by section 106 shall, with respect to

the works specified by subsection (b) and the activities specified by

subsection (d), be subject to the conditions and limitations prescribed

by this section.

(b) Not later than thirty days after the Copyright Royalty Tribunal has

been constituted in accordance with section 802, the Chairman of the

Tribunal shall cause notice to be published in the Federal Register of

the initiation of proceedings for the purpose of determining reasonable

terms and rates of royalty payments for the activities specified by

subsection (d) with respect to published nondramatic musical works and

published pictorial, graphic, and sculptural works during a period

beginning as provided in clause (3) of this subsection and ending on

December 31, 1982. Copyright owners and public broadcasting entities

shall negotiate and agree upon the terms and rates of royalty payments

and the proportionate division of fees paid among various copyright

owners, and may designate common agents to negotiate, agree to, pay, or

receive payments.

(1) Any owner of copyright in a work specified in this subsection or

any public broadcasting entity may, within one hundred and twenty days

after publication of the notice specified in this subsection, submit to

the Copyright Royalty Tribunal proposed licenses covering such

activities with respect to such works. The Copyright Royalty Tribunal

shall proceed on the basis of the proposals submitted to it as well as

any other relevant information. The Copyright Royalty Tribunal shall

permit any interested party to submit information relevant to such

proceedings.

(2) License agreements voluntarily negotiated at any time between one

or more copyright owners and one or more public broadcasting entities

shall be given effect in lieu of any determination by the Tribunal:

Provided, That copies of such agreements are filed in the Copyright

Office within thirty days of execution in accordance with regulations

that the Register of Copyrights shall prescribe.

(3) Within six months, but not earlier than one hundred and twenty

days, from the date of publication of the notice specified in this

subsection the Copyright Royalty Tribunal shall make a determination

and publish in the Federal Register a schedule of rates and terms

which, subject to clause (2) of this subsection, shall be binding on

all owners of copyright in works specified by this subsection and

public broadcasting entities, regardless of whether or not such

copyright owners and public broadcasting entities have submitted

proposals to the Tribunal. In establishing such rates and terms the

Copyright Royalty Tribunal may consider the rates for comparable

circumstances under voluntary license agreements negotiated as provided

in clause (2) of this subsection. The Copyright Royalty Tribunal shall

also establish requirements by which copyright owners may receive

reasonable notice of the use of their works under this section, and

under which records of such use shall be kept by public broadcasting

entities.

(4) With respect to the period beginning on the effective date of this

title and ending on the date of publication of such rates and terms,

this title shall not afford to owners of copyright or public

broadcasting entities any greater or lesser rights with respect to the

activities specified in subsection (d) as applied to works specified in

this subsection than those afforded under the law in effect on December

31, 1977, as held applicable and construed by a court in an action

brought under this title.

(c) The initial procedure specified in subsection (b) shall be repeated

and concluded between June 30 and December 31, 1982, and at five-year

intervals thereafter, in accordance with regulations that the Copyright

Royalty Tribunal shall prescribe

(d) Subject to the transitional provisions of subsection (b)(4), and to

the terms of any voluntary license agreements that have been negotiated

as provided by subsection (b)(2), a public broadcasting entity may,

upon compliance with the provisions of this section, including the

rates and terms established by the Copyright Royalty Tribunal under

subsection (b)(3), engage in the following activities with respect to

published nondramatic musical works and published pictorial, graphic,

and sculptural works:

(1) performance or display of a work by or in the course of a

transmission made by a noncommercial educational broadcast station

referred to in subsection (g); and

(2) production of a transmission program, reproduction of copies or

phonorecords, where such production, reproduction, or distribution is

made by a nonprofit institution or organization solely for the purpose

of transmission specified in clause (1); and

(3) the making of reproductions by a governmental body or a nonprofit

institution of a transmission program simultaneously with its

transmission as specified in clause (1), and the performance or display

of the contents of such program under the conditions specified by

clause (1) of section 110, but only if the reproductions are used for

performances or displays for a period of no more than seven days from

the date of the transmission specified in clause (1), and are destroyed

before or at the end of such period. No person supplying, in

accordance with clause (2), a reproduction of a transmission program to

governmental bodies or nonprofit institutions under this clause shall

have any liability as a result of failure of such body or institution

to destroy such reproduction: Provided, That it shall have notified

such body or institution of the requirement for such destruction

pursuant to this clause: And provided further, That if such body or

institution itself fails to destroy such reproduction it shall be

deemed to have infringed.

(e) Except as expressly provided in this subsection, this section shall

have no applicability to works other than those specified in subsection

(b).

(1) Owners of copyright in nondramatic literary works and public

broadcasting entities may, during the course of voluntary negotiations,

agree among themselves, respectively, as to the terms and rates of

royalty payments without liability under the antitrust laws. Any such

terms and rates of royalty payments shall be effective upon filing in

the Copyright Office, in accordance with regulations that the Register

of Copyrights shall prescribe.

(2) On January 3, 1980, the Register of Copyrights, after consulting

with authors and other owners of copyright in nondramatic literary

works and their representatives, and with public broadcasting entities

and their representatives, shall submit to the Congress a report

setting forth the extent to which voluntary licensing arrangements have

been reached with respect to the use of nondramatic literary works by

such broadcast stations. The report should also describe any problems

that may have arisen, and present legislative or other recommendations,

if warranted.

(f) Nothing in this section shall be construed to permit, beyond the

limits of fair use as provided by section 107, the unauthorized

dramatization of a nondramatic musical work, the production of a

transmission program drawn to any substantial extent from a published

compilation of pictorial, graphic, or sculptural works, or the

unauthorized use of any portion of an audiovisual work.

(g) As used in this section, the term "public broadcasting entity"

means a noncommercial educational broadcast station as defined in

section 397 of title 47 and any nonprofit institution or organization

engaged in the activities described in clause (2) of subsection (d).

CHAPTER 2--COPYRIGHT OWNERSHIP AND TRANSFER. Analysis

Sec.

201. Ownership of copyright.

202. Ownership of copyright as distinct from ownership of material object.

203. Termination of transfers and licenses granted by the author.

204. Execution of transfers of copyright ownership.

205. Recordation of transfers and other documents.

Section 201. Ownership of copyright.

(a) Initial ownership.--Copyright in a work protected under this title

vests initially in the author or authors of the work. The authors of a

joint work are co-owners of copyright in the work.

(b) Works Made for Hire.--In the case of a work made for hire, the

employer or other person for whom the work was prepared is considered

the author for purposes of this title, and, unless the parties have

expressly agreed otherwise in a written instrument signed by them, owns

all of the rights comprised in the copyright.

(c) Contributions to Collective Works.--Copyright in each separate

contribution to a collective work is distinct from copyright in the

collective work as a whole, and vests initially in the author of the

contribution. In the absence of an express transfer of the copyright

or of any rights under it, the owner of copyright in the collective

work is presumed to have acquired only the privilege of reproducing and

distributing the contribution as part of that particular collective

work, any revision of that collective work, and any later collective

work in the same series.

(d) Transfer of Ownership.--

(1) The ownership of a copyright may be transferred in whole or in part

by any means of conveyance or by operation of law, and may be

bequeathed by will or pass as personal property by the applicable laws

of intestate succession.

(2) Any of the exclusive rights comprised in a copyright, including any

subdivision of any of the rights specified by section 106, may be

transferred as provided by clause (1) and owned separately. The owner

of any particular exclusive right is entitled, to the extent of that

right, to all of the protection and remedies accorded to the copyright

owner by this title.

(e) Involuntary Transfer.--When an individual author's ownership of a

copyright, or of any of the exclusive rights under a copyright, has not

previously been transferred voluntarily by that individual author, no

action by any governmental body or other official or organization

purporting to seize, expropriate, transfer, or exercise rights of

ownership with respect to the copyright, or any of the exclusive rights

under a copyright, shall be give effect under this title except as

provided under Title 11.

Section 202. Ownership of copyright as distinct from ownership of

material object.

Ownership of a copyright, or of any of the exclusive rights under a

copyright, is distinct from ownership of any material object in which

the work is embodied. Transfer of ownership of any material object,

including the copy or phonorecord in which the work is first fixed,

does not of itself convey any rights in the copyrighted work embodied

in the object; nor, in the absence of an agreement, does transfer of

ownership of a copyright or of any exclusive rights under a copyright

convey property rights in any material object.

Section 203. Termination of transfers and licenses granted by the

author.

(a) Conditions for Termination.--In the case of any work other than a

work made for hire, the exclusive or nonexclusive grant of a transfer

or license of copyright or of any right under a copyright, executed by

the author on or after January 1, 1978, otherwise than be will, is

subject to termination under the following conditions:

(1) In the case of a grant executed by one author, termination of the

grant may be effected by that author or if the author is dead, by the

person or persons who, under clause (2) of this subsection, own and are

entitled to exercise a total of more than one-half of that author's

termination interest. In the case of a grant executed by two or more

authors who executed it; if any of such authors is dead, the

termination interest of any such author may be exercised as a unit by

the person or persons who, under clause (2) of this subsection, own and

are entitled to exercise a total of more than one-half of that author's

interest.

(2) Where an author is dead, his or her termination interest is owned,

and may be exercised, by his widow or her widower and his or her

children or grandchildren as follows:

(A) the widow or widower owns the author's entire termination interest

unless there are any surviving children or grandchildren of the author,

in which case the widow or widower owns one-half of the author's

interest;

(B) the author's surviving children, and the surviving children of any

dead child of the author, own the author's entire termination interest

unless there is a widow or widower, in which case the ownership of

one-half of the author's interest is divided among them;

(C) the rights of the author's children and grandchildren are in all

cases divided among them and exercised on a per stirpes basis according

to the number of such author's children represented; the share of the

children of a dead child in a termination interest can be exercised

only by the action of a majority of them.

(3) Termination of the grant may be effected at any time during a

period of five years beginning at the end of thirty-five years from the

date of publication of the work under the grant or at the end of forty

years from the date of execution of the grant, whichever term ends

earlier.

(4) The termination shall be effected by serving an advance notice in

writing, signed by the number and proportion of owners of termination

interests required under clauses (1) and (2) of this subsection, or by

their duly authorized agents, upon the grantee or the grantee's

successor in title.

(A) The notice shall state the effective date of the termination, which

shall fall within the five-year period specified by clause (3) of this

subsection, and the notice shall be served not less than two or more

than ten years before that date. A copy of the notice shall be

recorded in the Copyright Office before the effective date of

termination, as a condition to its taking effect.

(B) The notice shall comply, in form, content, and manner of service,

with requirements that the Register of Copyrights shall prescribe by

regulation.

(5) Termination of the grant may be effected notwithstanding any

agreement to the contrary, including an agreement to make a will or to

make any future grant.

(b) Effect of Termination.--Upon the effective date of termination, all

rights under this title that were covered by the terminated grants

revert to the author, authors, or other persons owning termination

interests under clauses (1) and (2) of subsection (a), including those

owners who did not join in signing the notice of termination under

clause (4) of subsection (a), but with the following limitations:

(1) A derivative work prepared under authority of the grant become its

termination may continue to be utilized under the terms of the grant

after its termination, but this privilege does not extend to the

preparation after the termination of other derivative works based upon

the copyrighted work covered by the terminated grant.

(2) The future rights that will revert upon termination of the grant

before vested on the date the notice of termination has been served as

provided by clause (4) of subsection (a). The rights vest in the

author, authors, and other persons named in, and in the proportionate

shares provided by, clauses (1) and (2) of subsection (a).

(3) Subject to the provisions of clause (4) of this subsection, a

further grant, or agreement to make a further grant, of any right

covered by a terminated grant is valid only if it is signed by the same

number and proportion of the owners, in whom the right has vested under

clause (2) of this subsection, as are required to terminate the grant

under clauses (1) and (2) of subsection (a). Such further grant or

agreement is effective with respect to all of the persons in whom the

right it covers has vested under clause (2) of this subsection,

including those who did not join in signing it. If any person dies

after rights under a terminated grant have vested in him or her, that

person's legal representatives, legatees, or heirs at law represent him

or her for purposes of this clause.

(4) A further grant, or agreement to make a further grant, of any right

covered by a terminated grant is valid only if it is made after the

effective date of the termination. As an exception, however, an

agreement for such a further grant may be made between the persons

provided by clause (3) of this subsection and the original grantee or

such grantee's successor in title, after the notice of termination has

been served as provided by clause (4) of subsection (a).

(5) Termination of a grant under this section affects only those rights

covered by the grants that arise under this title, and in no way

affects rights arising under any other Federal, State, or foreign laws.

(6) Unless and until termination is effected under this section, the

grant, if it does not provide otherwise, continues in effect for the

term of copyright provided by this title.

Section 204. Execution of transfers of copyright ownership.

(a) A transfer of copyright ownership, other than by operation of law,

is not valid unless an instrument of conveyance, or a note or

memorandum of the transfer, is in writing and signed by the owner of

the rights conveyed or such owner's duly authorized agent.

(b) A certificate of acknowledgement is not required for the validity

of a transfer, but is prima facie evidence of the execution of the

transfer if--

(1) in the case of a transfer executed in the United States, the

certificate is issued by a person authorized to administer oaths within

the United States; or

(2) in the case of a transfer executed in a foreign country, the

certificate is issued by a diplomatic or consular officer of the United

States, or by a person authorized to administer oaths whose authority

is proved by a certificate of such an officer.

Section 205. Recordation of transfers and other documents.

(a) Conditions for Recordation.--Any transfer of copyright ownership or

other document pertaining to a copyright 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.

(b) Certificate of Recordation.--The register of Copyrights shall, upon

receipt of a document as provided by subsection (a) and of the fee

provided by section 708, record the document and return it with a

certificate of recordation.

(c) Recordation as Constructive Notice.--Recordation of a document in

the Copyright Office gives all persons constructive notice of the facts

stated in the recorded document, but only if--

(1) the document, or material attached to it, specifically identifies

the work to which it pertains so that, after the document is indexed by

the Register of Copyrights, it would be revealed by a reasonable search

under the title or registration number of the work; and

(2) registration has been made for the work.

(d) Recordation as Prerequisite to Infringement Suit.--No person

claiming by virtue of a transfer to be the owner of copyright or of any

exclusive right under a copyright is entitled to institute an

infringement action under this title until the instrument of transfer

under which such person claims has been recorded in the Copyright

Office, but suit may be instituted after such recordation on a cause of

action that arose before recordation.

(e) Priority Between Conflicting Transfers.--As between two conflicting

transfers, the one executed first prevails if it is recorded, in the

manner required to give constructive notice under subsection (c),

within one month after its execution in the United States, or at any

time before recordation in such manner of the later transfer.

Otherwise the later transfer prevails if recorded first in such manner,

and if taken in good faith, for valuable consideration or on the basis

of a binding promise to pay royalties, and without notice of the

earlier transfer.

(f) Priority Between Conflicting Transfer of Ownership and Nonexclusive

License.--A nonexclusive license, whether recorded or not, prevails

over a conflicting transfer of copyright ownership if the license is

evidenced by a written instrument signed by the owner of the rights

licensed or such owner's duly authorized agent, and if--

(1) the license was taken before execution of the transfer; or

(2) the license was taken in good faith before recordation of the

transfer and without notice of it.

CHAPTER 3--DURATION OF COPYRIGHT. Analysis.

Sec.

301. Preemption with respect to other laws.

302. Duration of copyright: Works created on or after January 1, 1978.

303. Duration of copyright: Works created but not published or

copyrighted before January 1, 1978.

304. Duration of copyright: Subsisting copyrights.

305. Duration of copyright: Terminal date.

Section 301. Preemption with respect to other laws.

(a) On and after January 1, 1978, all legal or equitable rights that

are equivalent to any of the exclusive rights within the general scope

of copyright as specified by section 106 in works of authorship that

are fixed in a tangible medium of expression and come within the

subject matter of copyright as specified by sections 102 and 103,

whether created before or after that date and whether published or

unpublished, are governed exclusively by this title. Thereafter, no

person is entitled to any such right or equivalent right in any such

work under the common law or statutes of any State.

(b) Nothing in this title annuls or limits any rights or remedies under

the common law or statutes or any state with respect to--

(1) subject matter that does not come within the subject matter of

copyright as specified by sections 102 and 103, including works of

authorship not fixed in any tangible medium of expression; or

(2) any cause of action arising from undertakings commenced before

January 1, 1978; or

(3) activities violating legal or equitable rights that are not

equivalent to any of the exclusive rights within the general scope of

copyright as specified by section 106.

(c) With respect to sound recordings fixed before February 15, 1972,

any rights or remedies under the common law or statutes of any State

shall not be annulled or limited by this title until February 15, 2047.

The preemptive provisions of subsection (a) shall apply to any such

rights and remedies pertaining to any cause of action arising from

undertakings commenced on and after February 15, 2047. Notwithstanding

the provisions of section 303, no sound recording fixed before February

15, 1972, shall be subject to copyright under this title before, on, or

after February 15, 2047.

(d) Nothing in this title annuls or limits any rights or remedies under

any other Federal statute.

Section 302. Duration of copyright: Works created on or after January

1, 1978.

(a) In General.--Copyright in a work created on or after January 1,

1978, subsists from its creation and, except as provided by the

following subsections, endures for a term consisting of the life of the

author and fifty years after the author's death.

(b) Joint Works.--In the case of a joint work prepared by two or more

authors who did not work for hire, the copyright endures for a term

consisting of the life of the last surviving author and fifty years

after such last surviving author's death.

(c) Anonymous Works, Pseudonymous Works, and Works Made for Hire.--In

the case of an anonymous work, a pseudonymous work, or a work made for

hire, the copyright endures for a term of seventy-five years for the

year of its first publication, or a term of one hundred years from the

year of its creation, whichever expires first. If, before the end of

such term, the identity of one or more of the authors of an anonymous

or pseudonymous work is revealed in the records of a registration made

for that work under subsections (a) or (d) of section 408, or in the

records provided by this subsection, the copyright in the work endures

for the term specified by subsection (a) or (b), based on the life of

the author or authors whose identity has been revealed. Any person

having an interest in the copyright in an anonymous or pseudonymous

work may at any time record, in records to be maintained by the

Copyright Office for that purpose, a statement identifying one or more

authors of the work; the statement shall also identify the person

filing it, the nature of that person's interest, the source of the

information recorded, and the particular work affected, and shall

comply in form and content with requirements that the Register of

Copyrights shall prescribe by regulation.

(d) Records Relating to Death of Authors.--Any person having an

interest in a copyright may at any time record in the Copyright Office

a statement of the date of death of the author of the copyrighted work,

or a statement that the author is still living on a particular date.

The statement shall identify the person filing it, the nature of that

person's interest, and the source of the information recorded, and

shall comply in form and content with requirements that the Register of

Copyrights shall prescribe by regulation. The Register shall maintain

current records of information relating to the death of authors of

copyrighted works, based on such recorded statements and, to the extent

the Register considers practicable, on data contained in any of the

records of the Copyright Office or in other reference sources.

(e) Presumption as to Author's Death.--After a period of seventy-five

years from the year of first publication of a work, or a period of one

hundred years from the year of its creation, whichever expires first,

any person who obtains from the Copyright Office a certified report

that the records provided by subsection (d) disclose nothing to

indicate that the author of the work is living, or died less than fifty

years before, is entitled to the benefit of a presumption that the

author has been dead for at least fifty years. Reliance in food faith

upon this presumption shall be a complete defense to any action for

infringement under this title.

Section 303. Duration of copyright: Works created but not published or

copyrighted before January 1, 1978.

Copyright in a work created before January 1, 1978, but not theretofore

in the public domain or copyrighted, subsists from January 1, 1978, and

endures for the term provided by section 302. In no case, however,

shall the term of copyright in such a work expire before December 31,

2002; and, if the work is published on or before December 31, 2002, the

term of copyright shall not expire before December 31, 2027.

Section 304. Duration of copyright: Subsisting copyrights.

(a) Copyrights in Their First Term on January 1, 1978.--Any copyright,

the first term of which is subsisting on January 1, 1978, shall endure

for twenty-eight years from the date it was originally secured:

Provided, That in the case of any posthumous work or of any periodical,

cyclopedic, or other composite work upon which the copyright was

originally secured by the proprietor thereof, or of any work

copyrighted by a corporate body (otherwise than as assignee or licensee

of the individual author) or by an employer for whom such work is made

for hire, the proprietor of such copyright shall be entitled to a

renewal and extension of the copyright in such work for the further

term of forty-seven years when application for such renewal and

extension shall have been made to the Copyright Office and duly

registered therein within one year prior to the expiration of the

original term of copyright: And provided further, That in the case of

any other copyrighted work, including a contribution by an individual

author to a periodical or to a cyclopedic or other composite work, the

author of such work, if still living, or the widow, widower, or

children of the author, if the author be not living, or if such author,

widow, widower, or children be not living, then the author's executors,

or in the absence of a will, his or her next of kin shall be entitled

to a renewal and extension of the copyright in such work for a further

term of forty-seven years when application for such renewal and

extension shall have been made to the Copyright Office and duly

registered therein within one year prior to the expiration of the

original term of copyright: And provided further, That in default of

the registration of such application for renewal and extension, the

copyright in any work shall terminate at the expiration of twenty-eight

years from the date copyright was originally secured.

(b) Copyrights in Their Renewal Term or Registered for Renewal Before

January 1, 1978.--The duration of any copyright, the renewal term of

which is subsisting at any time between December 31, 1976, and December

31, 1977, inclusive, or for which renewal registration is made between

December 31, 1976, and December 31, 1977, inclusive, is extended to

endure for a term of seventy-five years from the date copyright was

originally secured.

(c) Termination of Transfers and Licenses Covering Extended Renewal

Term.--In the case of any copyright subsisting in either its first or

renewal term on January 1, 1978, other than a copyright in a work made

for hire, the exclusive or nonexclusive grant of a transfer or license

of the renewal copyright or any right under it, executed before January

1, 1978, by any of the persons designated by the second proviso of

subsection (a) of this section, otherwise than by will, is subject to

termination under the following conditions:

(1) In the case of a grant executed by a person or persons other than

the author, termination of the grant may be effected by the surviving

person or persons who executed it. In the case of a grant executed by

one or more of the authors of the work, termination of the grant may be

effected, to the extent of a particular author's share in the ownership

of the renewal copyright, by the author who executed it, or, if such

author is dead, the person or persons who, under clause (2) of this

subsection, own and are entitled to exercise a total of more than

one-half of that author's termination interest.

(2) Where an author is dead, his or her termination interest is owned,

and may be exercised, by his widow or her widower and his or her

children or grandchildren as follows:

(A) the widow or widower owns the author's entire termination interest

unless there are any surviving children or grandchildren of the author,

in which case the widow or widower owns one-half of the author's

interest;

(B) the author's surviving children, and the surviving children of any

dead child of the author, own the author's entire termination interest

unless there is a widow or widower, in which case the ownership of

one-half of the author's interest is divided among them;

(C) the rights of the author's children and grandchildren are in all

cases divided among them and exercised on a per stirpes basis according

to the number of such author's children represented; the share of the

children of a dead child in a termination interest can be exercised

only by the action of a majority of them.

(3) Termination of the grant may be effected at any time during a

period of five years beginning at the end of fifty-six years from the

date copyright was originally secured, or beginning on January 1, 1978,

whichever is later.

(4) The termination shall be effected by serving an advance notice in

writing upon the grantee or the grantee's successor in title. In the

case of a grant executed by a person or persons other than the author,

the notice shall be signed by all of those entitled to terminate the

grant under clause (1) of this subsection, or by their duly authorized

agents. In the case of a grant executed by one or more of the authors

of the work, the notice as to any one author's share shall be signed by

that author or his or her duly authorized agent or, if that author is

dead, by the number and proportion of the owners of his or her

termination interest required under clauses (1) and (2) of this

subsection, or by their duly authorized agents.

(A) The notice shall state the effective date of the termination, which

shall fall within the five-year period specified by clause (3) of this

subsection, and the notice shall be served not less than two or more

than ten years before that date. A copy of the notice shall be

recorded in the Copyright Office before the effective date of

termination, as a condition to its taking effect.

(B) The notice shall comply, in form, content, and manner of service,

with requirements that the Register of Copyrights shall prescribe by

regulation.

(5) Termination of the grant may be effected notwithstanding any

agreement to the contrary, including an agreement to make a will or to

make any future grant.

(6) In the case of a grant executed by a person or persons other than

the author, all rights under this title that were covered by the

terminated grant revert, upon the effective date of termination, to all

of those entitled to terminate the grant under clause (1) of this

subsection. In the case of a grant executed by one or more of the

authors of the work, all of a particular author's rights under this

title that were covered by the terminated grant revert, upon the

effective date of termination, to that author or, if that author is

dead, to the persons owning his or her termination interest under

clause (2) of this subsection, including those owners who did not join

in signing the notice of termination under clause (4) of this

subsection. In all cases the reversion of rights is subject to the

following limitations:

(A) A derivative work prepared under authority of the grant before its

termination may continue to be utilized under the terms of the grant

after its termination, but this privilege does not extend to the

preparation after the termination of other derivative works based upon

the copyrighted work covered by the terminated grant.

(B) The future rights that will revert upon termination of the grant

become vested on the date the notice of termination has been served as

provided by clause (4) of this subsection.

(C) Where the author's rights revert to two or more persons under

clause (2) of this subsection, they shall vest in those persons in the

proportionate shares provided by that clause. In such a case, and

subject to the provisions of subclause (D) of this clause, a further

grant, or agreement to make a further grant, of a particular author's

share with respect to any right covered by a terminated grant is valid

only if it is signed by the same number and proportion of the owners,

in whom the right has vested under this clause, as are required to

terminate the grant under clause (2) of this subsection. Such further

grant or agreement is effective with respect to all of the persons in

whom the right it covers has vested under this subclause, including

those who did not join in signing it. If any person dies after rights

under a terminated grant have vested in him or her, that person's legal

representatives, legatees, or heirs at law represent him or her for

purposes of this subclause.

(D) A further grant, or agreement to make a further grant, of any right

covered by a terminated grant is valid only if it is made after the

effective date of the termination. As an exception, however, an

agreement for such a further grant may be made between the author or

any of the persons provided by the first sentence of clause (6) of this

subsection, or between the persons provided by subclause (C) of this

clause, and the original grantee or such grantee's successor in title,

after the notice of termination has been served as provided by clause

(4) of this subsection.

(E) Termination of a grant under this subsection affects only those

rights covered by the grant that arise under this title, and in no way

affects rights arising under any other Federal, State, or foreign laws.

(F) Unless and until termination is effected under this subsection, the

grant, if it does not provide otherwise, continues in effect for the

remainder of the extended renewal term.

Section 305. Duration of copyright: Terminal date.

All terms of copyright provided by sections 302 through 304 run to the

end of the calendar year in which they would otherwise expire.

CHAPTER 4--COPYRIGHT NOTICE, DEPOSIT, AND REGISTRATION. Analysis.

Sec.

401. Notice of copyright: Visually perceptible copies.

402. Notice of copyright: Phonorecords of sound recordings.

403. Notice of copyright: Publications incorporating United States

Government works.

404. Notice of copyright: Contributions to collective works.

405. Notice of copyright: Omission of notice.

406. Notice of copyright: Error in name or date.

407. Deposit of copies or phonorecords for Library of Congress.

408. Copyright registration in general.

409. Application for copyright registration.

410. Registration of claim and issuance of certificate.

411. Registration as prerequisite to infringement suit.

412. Registration as prerequisite to certain remedies for infringement.

Section 401. Notice of copyright: Visually perceptible copies.

(a) General Requirement.--Whenever a work protected under this title is

published in the United States or elsewhere by authority of the

copyright owner, a notice of copyright as provided by this section

shall be placed on all publicly distributed copies from which the work

can be visually perceived, either directly or with the aid of a machine

or device.

(b) Form of Notice.--The notice appearing on the copies shall consist

of the following three elements:

(1) the symbol of a small letter "c" inside of a circle, or the word

"Copyright," or the abbreviation "Copr."; and

(2) the year of first publication of the work; in the case of

compilations or derivative work is sufficient. The year date may be

omitted where a pictorial, graphic, or sculptural work, with

accompanying text matter, if any, is reproduced in or on greeting cards

postcards, stationery, jewelry, dolls, toys, or any useful articles; and

(3) the name of the owner of copyright in the work, or an abbreviation

by which the name can be recognized, or a generally known alternative

designation of the owner.

(c) Position of Notice.--The notice shall be affixed to the copies in

such manner and location as to give reasonable notice of the claim of

copyright.

The Register of Copyrights shall prescribe by regulation, as examples,

specific methods of affixation and positions of the notice on various

types of works that will satisfy this requirement, but these

specifications shall not be considered exhaustive.

Section 402. Notice of copyright: Phonorecords of sound recordings.

(a) General Requirement.--Whenever a sound recording protected under

this title is published in the United States or elsewhere by authority

of the copyright owner, a notice of copyright as provided by this

section shall be placed on all publicly distributed phonorecords of the

sound recording.

(b) Form of Notice.--The notice appearing on the phonorecords shall

consist of the following three elements:

(1) the symbol of a small letter "p" inside of a circle; and

(2) the year of first publication of the sound recording; and

(3) the name of the owner of copyright in the sound recording, or an

abbreviation by which the name can be recognized, or a generally known

alternative designation of the owner; if the producer of the sound

recording is named on the phonorecord labels or containers, and if no

other name appears in conjunction with the notice, the producer's name

shall be considered a part of the notice.

(c) Position of Notice.--The notice shall be placed on the surface of

the phonorecord, or on the phonorecord label or container, in such

manner and location as to give reasonable notice of the claim of

copyright.

Section 403. Notice of copyright: Publications incorporating United

States Government works.

Whenever a work is published in copies or phonorecords consisting

preponderantly of one or more works of the United States Government,

the notice of copyright provided by sections 401 or 402 shall also

include a statement identifying, either affirmatively or negatively,

those portions of the copies or phonorecords embodying any work or

works protected under this title.

Section 404. Notice of copyright: Contributions to collective works.

(a) A separate contribution to a collective work may bear its own

notice of copyright, as provided by sections 401 through 403. However,

a single notice applicable to the collective work as a whole is

sufficient to satisfy the requirements of sections 401 through 403 with

respect to the separate contributions it contains (not including

advertisements inserted on behalf of persons other than the owner of

copyright in the collective work), regardless of the ownership of

copyright in the contributions and whether or not they have been

previously published.

(b) Where the person named in a single notice applicable to a

collective work as a whole is not the owner of copyright in a separate

contribution that does not bear its own notice, the case is governed by

the provisions of section 406(a).

Section 405. Notice of copyright: Omission of notice.

(a) Effect of Omission on Copyright.--The omission of the copyright

notice prescribed by sections 401 through 403 from copies or

phonorecords publicly distributed by authority of the copyright owner

does not invalidate the copyright in a work if--

(1) the notice has been omitted from no more than a relatively small

number of copies or phonorecords distributed to the public; to

(2) registration for the work has been made before or is made within

five years after the publication without notice, and a reasonable

effort is made to add notice to all copies or phonorecords that are

distributed to the public in the United States after the omission has

been discovered; or

(3) the notice has been omitted in violation of an express requirement

in writing that, as a condition of the copyright owner's authorization

of the public distribution of copies or phonorecords, they bear the

prescribed notice.

(b) Effect of Omission on Innocent Infringers.--Any person who

innocently infringes a copyright, in reliance upon an authorized copy

or phonorecord from which the copyright notice has been omitted, incurs

no liability for actual or statutory damages under section 504 for any

infringing acts committed before receiving actual notice that

registration for the work has been made under section 408, if such

person proves that he or she was misled by the omission of notice. In

a suit for infringement in such a case the court may allow or disallow

recovery of any of the infringer's profits attributable to the

infringement, and may enjoin the continuation of the infringing

undertaking or may require, as a condition or [sic] permitting the

continuation of the infringing undertaking, that the infringer pay the

copyright owner a reasonable license fee in an amount and on terms

fixed by the court.

(c) Removal of Notice.--Protection under this title is not affected by

the removal, destruction, or obliteration of the notice, without the

authorization of the copyright owner, from any publicly distributed

copies or phonorecords.

Section 406. Notice of copyright: Error in name or date.

(a) Error in Name.--Where the person named in the copyright notice on

copies or phonorecords publicly distributed by authority of the

copyright owner is not the owner of copyright, the validity and

ownership of the copyright are not affected. In such a case, however,

any person who innocently begins an undertaking that infringes the

copyright has a complete defense to any action for such infringement if

such person proves that he or she was misled by the notice and began

the undertaking in good faith under a purported transfer or license

from the person named therein, unless before the undertaking was begun--

(1) registration for the work had been made in the name of the owner of

copyright; or

(2) a document executed by the person named in the notice and showing

the ownership of the copyright had been recorded. The person named in

the notice is liable to account to the copyright owner for all receipts

from transfers or licenses purportedly made under the copyright by the

person named in the notice.

(b) Error in Date.--When the year date in the notice on copies or

phonorecords distributed by authority of the copyright owner is earlier

than the year in which publication first occurred, any period computed

from the year of first publication first occurred, the work is

considered to have been published without any notice and is governed by

the provisions of section 405.

(c) Omission of Name or Date.--Where copies or phonorecords publicly

distributed by authority of the copyright owner contain no name or no

date that could reasonably be considered a part of the notice, the work

is considered to have been published without any notice and is governed

by the provisions of section 405.

Section 407. Deposit of copies or phonorecords for Library of Congress.

(a) Except as provided by subsection (c), and subject to the provisions

of subsection (e), the owner of copyright or of the exclusive right of

publication in a work published with notice of copyright in the United

States shall deposit, within three months after the date of such

publication--

(1) two complete copies of the best edition; or

(2) if the work is a sound recording, two complete phonorecords of the

best edition, together with any printed or other visually perceptible

material published with such phonorecords. Neither the deposit

requirements of this subsection nor the acquisition provisions of

subsection (e) are conditions of copyright protection.

(b) The required copies or phonorecords shall be deposited in the

Copyright Office for the use or disposition of the Library of Congress.

The Register of Copyrights shall, when requested by the depositor and

upon payment of the fee prescribed by section 708, issue a receipt for

the deposit.

(c) The Register of Copyrights may be regulation exempt any categories

of material from the deposit requirements of this section, or require

deposit of only one copy or phonorecord with respect to any categories.

Such regulations shall provide either for complete exemption from the

deposit requirements of this section, or for alternative forms of

deposit aimed at providing a satisfactory archival record of a work

without imposing practical or financial hardships on the depositor,

where the individual author is the owner of copyright in a pictorial,

graphic, or sculptural work and (i) less than five copies of the work

have been published, or (ii) the work has been published in a limited

edition consisting of numbered copies the monetary value of which would

make the mandatory deposit of two copies of the best edition of the

work burdensome, unfair, or unreasonable.

(d) At any time after publication of a work as provided by subsection

(a), the Register of Copyrights may make written demand for the

required deposit of any of the persons obligated to make the deposit

under subsection (a). Unless deposit is made within three months after

the demand is received, the person or persons on whom the demand was

made are liable--

(1) to a fine of not more than $250 for each work; and

(2) to pay into a specially designated fund in the Library of Congress

the total retail price of the copies or phonorecords demanded, or, if

no retail price has been fixed, the reasonable cost of the Library of

Congress of acquiring them; and

(3) to pay a fine of $2,500, in addition to any fine or liability

imposed under clauses (1) and (2), if such person willfully or

repeatedly fails or refuses to comply with such a demand.

(e) With respect to transmission programs that have been fixed and

transmitted to the public in the United States but have not been

published, the Register of Copyrights shall, after consulting with the

Librarian of Congress and other interested organizations and officials,

establish regulation governing the acquisition, through deposit or

otherwise, of copies or phonorecords of such programs for the

collections of the Library of Congress.

(1) The Librarian of Congress shall be permitted, under the standards

and conditions set forth in such regulations to make a fixation of a

transmission program directly from a transmission to the public, and to

reproduce one copy or phonorecord from such fixation for archival

purposes.

(2) Such regulations shall also provide standards and procedures by

which the Register of Copyrights may make written demand, upon the

owner of the right of transmission in the United States, for the

deposit of a copy or phonorecord of a specific transmission program.

Such deposit may, at the option of the owner of the right of

transmission in the United States, be accomplished by gift, by loan for

purposes of reproduction, or by sale at a price not to exceed the cost

of reproducing and supplying the copy or phonorecord. The regulations

established under this clause shall provide reasonable periods of not

less than three months for compliance with a demand, and shall allow

for extensions of such periods and adjustments in the scope of the

demand or the methods for fulfilling it, as reasonably warranted by the

circumstances. Willful failure or refusal to comply with the

conditions prescribed by such regulations shall subject the owner to

the right of transmission in the United States to liability for an

amount, not to exceed the cost of reproducing and supplying the copy or

phonorecord in question, to be paid into a specially designated fund in

the Library of Congress.

(3) Nothing in this subsection shall be construed to require the making

or retention, for purposes of deposit, of any copy or phonorecord of an

unpublished transmission program, the transmission of which occurs

before the receipt of a specific written demand as provided by clause

(2).

(4) No activity undertaken in compliance with regulations prescribed

under clauses (1) or (2) of this subsection shall result in liability

if intended solely to assist in the acquisition of copies or

phonorecords under this subsection.

Section 408. Copyright registration in general.

(a) Registration Permissive.--At any time during the subsistence of

copyright in any published or unpublished work, the owner of copyright

or of any exclusive right in the work may obtain registration of the

copyright claim by delivering to the Copyright Office the deposit

specified by this section, together with the application and fee

specified by sections 409 and 708. Subject to the provisions of

section 405(a), such registration is not a condition of copyright

protection.

(b) Deposit for Copyright Registration.--Except as provided by

subsection

(c) The material deposited for registration shall include--

(1) in the case of an unpublished work, one complete copy or

phonorecord;

(2) in the case of the published work, two complete copies or

phonorecords of the best edition;

(3) in the case of a work first published outside the United States,

one complete copy or phonorecord as so published;

(4) in the case of a contribution to a collective work, one complete

copy or phonorecord of the best edition of the collective work. Copies

or phonorecords deposited for the Library of Congress under section 407

may be used to satisfy the deposit provisions of this section, if they

are accompanied by the prescribed application and fee, and by any

additional identifying material that the Register may, by regulation,

require. The Register shall also prescribe regulations establishing

requirements under which copies or phonorecords acquired for the

Library of Congress under subsection (e) of section 407, otherwise than

by deposit, may be used to satisfy the deposit provisions of this

section.

(c) Administrative Classification and Optional Deposit.--

(1) The Register of Copyrights is authorized to specify by regulation

the administrative classes into which works are to be placed for

purposes of deposit and registration, and the nature of the copies or

phonorecords to be deposited in the various classes specified. The

regulations may require or permit, for particular classes, the deposit

of identifying material instead of copies or phonorecords, the deposit

of only one copy or phonorecord where two would normally be required,

or a single registration for a group of related works. This

administrative classification of works has no significance with respect

to the subject matter of copyright or the exclusive rights provided by

this title.

(2) Without prejudice to the general authority provided under clause

(1), the Register of Copyrights shall establish regulations

specifically permitting a single registration for a group of works by

the same individual author, all first published as contributions to

periodicals, including newspapers, within a twelve-month period, on the

basis of a single deposit, application, and registration fee, under all

of the following conditions--

(A) if each of the works as first published bore a separate copyright

notice, and the name of the owner of copyright in the work, or an

abbreviation by which the name can be recognized, or a generally known

alternative designation of the owner was the same in each notice; and

(B) if the deposit consists of one copy of the entire issue of the

periodical, or of the entire section in the case of a newspaper, in

which each contribution was first published; and (C) if the application

identifies each work separately, including the periodical containing it

and its date of first publication.

(3) As an alternative to separate renewal registrations under

subsection (a) of section 304, a single renewal registration may be

made for a group of works by the same individual author, all first

published as contributions to periodicals, including newspapers, upon

the filing of a single application and fee, under all of the following

conditions:

(A) the renewal claimant or claimants, and the basis of claim or claims

under section 304(a), is the same for each of the works; and

(B) the works were all copyrighted upon their first publication, either

through separate copyright notice and registration or by virtue of a

general copyright notice in the periodical issue as a whole; and

(C) the renewal application and fee are received not more than

twenty-eight or less than twenty-seven years after the thirty-first day

of December of the calendar year in which all of the works were first

published; and

(D) the renewal application identifies each work separately, including

the periodical containing it and its date of first publication

(d) Corrections and Amplifications.--The register may also establish,

by regulation, formal procedures for the filing of an application for

supplementary registration, to correct an error in a copyright

registration or to amplify the information given in a registration.

Such application shall be accompanied by the fee provided by section

708, and shall clearly identify the registration to be corrected or

amplified. The information contained in a supplementary registration

augments but does not supersede that contained in the earlier

registration.

(e) Published Edition of Previously Registered Work.--Registration for

the first published edition of a work previously registered in

unpublished form may be made even though the work as published is

substantially the same as the unpublished version.

Section 409. Application for copyright registration.

The application for copyright registration shall be made on a form

prescribed by the Register of Copyrights and shall include--

(1) the name and address of the copyright claimant;

(2) in the case of a work other than an anonymous or pseudonymous work,

the name and nationality or domicile of the author or authors, and, if

one or more of the authors is dead, the dates of their deaths;

(3) if the work is anonymous or pseudonymous, the nationality or

domicile of the author or authors;

(4) in the case of a work made for hire, a statement to this effect;

(5) if the copyright claimant is not the author, a brief statement of

how the claimant obtained ownership of the copyright;

(6) the title of the work, together with any previous or alternative

titles under which the work can be identified;

(7) the year in which creation of the work was completed;

(8) if the work has been published, the date and nation of its

first publication;

(9) in the case of a compilation or derivative work, an identification

of any preexisting work or works that it is based on or incorporates,

and a brief, general statement of the additional material covered by

the copyright claim being registered;

(10) in the case of a published work containing material of which

copies are required by section 601 to be manufactured in the United

States, the names of the persons or organizations who performed the

processes specified by subsection (c) of section 601 with respect to

that material, and the places where those processes were performed; and

(11) any other information regarded by the Register of Copyrights as

bearing upon the preparation or identification of the work or the

existence, ownership, or duration of the copyright.

Section 410. Registration of claim and issuance of certificate.

(a) When, after examination, the Register of Copyrights determines

that, in accordance with the provisions of this title, the material

deposited constitutes copyrightable subject matter and that the other

legal and formal requirements of this title have been met, the Register

shall register the claim and issue to the applicant a certificate of

registration under the seal of the Copyright Office. The certificate

shall contain the information given in the application, together with

the number and effective date of the registration.

(b) In any case in which the Register of Copyrights determines that, in

accordance with the provisions of this title, the material deposited

does not constitute copyrightable subject matter or that the claim is

invalid for any other reason, the Register shall refuse registration

and shall notify the applicant in writing of the reasons for such

refusal.

(c) In any judicial proceedings the certificate of a registration made

before or within five years after first publication of the work shall

constitute prima facie evidence of the validity of the copyright and of

the facts stated in the certificate. The evidentiary weight to be

accorded the certificate of a registration made thereafter shall be

within the discretion of the court.

(d) The effective date of a copyright registration is the day on which

an application, deposit, and fee, which are later determined by the

Register of Copyrights or by a court of competent jurisdiction to be

acceptable for registration, have all been received in the Copyright

Office.

Section 411. Registration as prerequisite to infringement suit.

(a) Subject to the provisions of subsection (b), no action for

infringement of the copyright in any work shall be instituted until

registration of the copyright claim has been made in accordance with

this title. In any case, however, where the deposit, application, and

fee required for registration have been delivered to the Copyright

Office in proper form and registration has been refused, the applicant

is entitled to institute an action for infringement if notice thereof,

with a copy of the complaint, is served on the Register of Copyrights.

The Register may, at his or her option, become a party to the action

with respect to the issue of registrability of the copyright claim by

entering an appearance within sixty days after such service, but the

Register's failure to become a party shall not deprive the court of

jurisdiction to determine that issue.

(b) In the case of a work consisting of sounds, images, or both, the

first fixation of which is made simultaneously with its transmission,

the copyright owner may, either before or after such fixation takes

place, institute an action for infringement under section 501, fully

subject to the remedies provided by sections 502 through 506 and

sections 509 and 510, if, in accordance with requirements that the

Register of Copyrights shall prescribe by regulation, the copyright

owner--

(1) serves notice upon the infringer, not less than ten or more than

thirty days before such fixation, identifying the work and the specific

time and source of its first transmission, and declaring an intention

to secure copyright in the work; and,

(2) makes registration for the work within three months after its first

transmission.

Section 412. Registration as prerequisite to certain remedies for

infringement.

In any action under this title, other than an action instituted under

section 411(b), no award of statutory damages or of attorney's fees, as

provided by sections 504 and 505, shall be made for--

(1) any infringement of copyright in an unpublished work commenced

before the effective date of its registration; or

(2) any infringement of copyright commenced after first publication of

the work and before the effective date of its registration, unless such

registration is made within three months after the first publication of

the work.

CHAPTER 5--COPYRIGHT INFRINGEMENT AND REMEDIES. Analysis.

Sec.

501. Infringement of copyright.

502. Remedies for infringement: Injunctions.

503. Remedies for infringement: Impounding and disposition of

infringing articles.

504. Remedies for infringement: Damages and profits.

505. Remedies for infringement: Costs and attorney's fees.

506. Criminal offenses.

507. Limitations on actions.

508. Notification of filing and determination of actions.

509. Seizure forfeiture.

510. Remedies for alteration of programing by cable systems.

Section 501. Infringement of copyright.

(a) Anyone who violates any of the exclusive rights of the copyright

owner as provided by section 106 through 118, or who imports copies or

phonorecords into the United States in violation of section 602, is an

infringer of the copyright.

(b) The legal or beneficial owner of an exclusive right under a

copyright is entitled, subject to the requirements of sections 205(d)

and 411, to institute an action for any infringement of that particular

right committed while he or she is the owner of it. The court may

require such owner to serve written notice of the action with a copy of

the complaint upon any person shown, by the records of the Copyright

Office or otherwise, to have or claim an interest in the copyright, and

shall require that such notice be served upon any person whose interest

is likely to be affected by a decision in the case. The court may

require the joiner, and shall permit the intervention, of any person

having or claiming an interest in the copyright.

(c) For any secondary transmission by a cable system that embodies a

performance or a display of a work which is actionable as an act of

infringement under subsection (c) of section 111, a television

broadcast station holding a copyright or other license to transmit or

perform the same version of that work shall, for purposes of subsection

(b) of this section, be treated as a legal or beneficial owner if such

secondary transmission occurs within the local service area of that

television station.

(d) For any secondary transmission by a cable system that is actionable

as an act of infringement pursuant to section 111(c)(3), the following

shall also have standing to sue: (i) the primary transmitter whose

transmission has been altered by the cable system; and (ii) any

broadcast station within whose local service area the secondary

transmission occurs.

Section 502. Remedies for infringement: Injunctions.

(a) Any court having jurisdiction of a civil action arising under this

title may, subject to the provisions of section 1498 of title 28, grant

temporary and final injunctions on such terms as it may deem reasonable

to prevent or restrain infringement of a copyright.

(b) Any such injunction may be served anywhere in the United States on

the person enjoined; it shall be operative throughout the United States

and shall be enforceable, by proceedings in contempt or otherwise, by

any United States court having jurisdiction of that person. The clerk

of the court granting the injunction shall, when requested by any other

court a certified copy of all the papers in the case on file in such

clerk's office.

Section 503. Remedies for infringement: Impounding and disposition of

infringing articles.

(a) At any time while an action under this title is pending, the court

may order the impounding, on such terms as it may deem reasonable, of

all copies or phonorecords claimed to have been made or used in

violation of the copyright's owner's exclusive rights, and of all

plates, molds, matrices, masters, tapes, film negative, or other

articles by means of which such copies or phonorecords may be

reproduced.

(b) As part of a final judgment or decree, the court may order the

destruction or other reasonable disposition of all copies or

phonorecords found to have been made or used in violation of the

copyright owner's exclusive rights, and of all plates, molds, matrices,

masters, tapes, film negatives, or other articles by means of which

such copies or phonorecords may be reproduced.

Section 504. Remedies for infringement: Damages and profits.

(a) In General.--Except as otherwise provided by this title, an

infringer of copyright is liable for either--

(1) the copyright owner's actual damages and any additional profits of

infringer, as provided by subsection (b); or

(2) statutory damages, as provided by subsection (c).

(b) Actual Damages and Profits.--The copyright owner is entitled to

recover the actual damages suffered by him or her as a result of the

infringement, and any profits of the infringer that are attributable to

the infringement and are not taken into account in computing the actual

damages. In establishing the infringer's profits, the copyright owner

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

copyrighted work.

(c) Statutory Damages.--

(1) Except as provided by clause (2) of this subsection, the copyright

owner may elect, at any time before final judgment is rendered, to

recover instead of actual damages and profits, an award of statutory

damages for all infringements involved in the action, with respect to

any one work, for which any one infringer is liable individually, or

for which any two or more infringers are liable jointly and severally,

in a sum of not less than $250 or more than $10,000 as the court

considers just. For the purposes of this subsection, all the parts of

a compilation or derivative work constitute one work.

(2) In a case where the copyright owner sustains the burden of proving,

and the court finds, that infringement was committed willfully, the

court in its discretion may increase the award of statutory damages to

a sum of not more than $50,000. In a case where the infringer sustains

the burden of proving, and the court finds, that such infringer was not

aware and had no reason to believe that his or her acts constituted an

infringement of copyright, the it [sic] its discretion may reduce the

award of statutory damages to a sum of not less than $100. The court

shall remit statutory damages in any case where an infringer believed

and had reasonable grounds for believing that his or her use of the

copyrighted work was a fair use under section 107, if the infringer

was: (i) an employee or agent of a nonprofit educational institution,

library, or archives acting within the scope of his or her employment

who, or such institution, library, or archives itself, which infringed

by reproducing the work in copies or phonorecords; or (ii) a public

broadcasting entity which or a person who, as a regular part of the

nonprofit activities of a public broadcasting entity (as defined in

subsection (g) of section 118) infringed by performing a published

nondramatic literary work or by reproducing a transmission program

embodying a performance of such a work.

Section 505. Remedies for infringement: Costs and attorney's fees.

In any civil action under this title, the court in its discretion may

allow the recovery of full costs by or against any party other than the

United States or an officer thereof. Except as otherwise provided by

this title, the court may also award a reasonable attorney's fee to the

prevailing party as part of the costs.

Section 506. Criminal offenses.

(a) Criminal infringement.--Any person who infringes a copyright

willfully and for purposes of commercial advantage or private

financial gain shall be punished as provided in section 2319 of title

18.

(b) Forfeiture and Destruction.--When any person is convicted of any

violation of subsection (a), the court in its judgment of conviction

shall, in addition to the penalty therein prescribed, order the

forfeiture and destruction or other disposition of all infringing

copies or phonorecords and all implements, devices, or equipment used

in the manufacture of such infringing copies or phonorecords.

(c) Fraudulent Copyright Notice.--Any person who, with fraudulent

intent, places on any article a notice of copyright or words of the

same purport that such person knows to be false, or who, with

fraudulent intent, publicly distributes or imports for public

distribution any article bearing such notice or words that such person

knows to be false, shall be fined not more than $2,500.

(d) Fraudulent Removal of Copyright Notice.--Any person who, with

fraudulent intent, removes or alters any notice of copyright appearing

on a copy of a copyrighted work shall be fined not more than $2,500.

Section 507. Limitations on actions.

(a) Criminal Proceedings.--No criminal proceeding shall be maintained

under the provisions of this title unless it is commenced within three

years after the cause of action arose.

(b) Civil Actions.--No civil action shall be maintained under the

provisions of this title unless it is commenced within three years

after the claim accrued.

Section 508. Notification of filing and determination of action.

(a) Within one month after the filing of any action under this title,

the clerks of the courts of the United States shall send written

notification to the Register of Copyrights setting forth, as far as is

shown by the papers filed in the court, the names and addresses of the

parties and the title, author, and registration number of each work

involved in the action. If any other copyrighted work is later

included in the action by amendment, answer, or other pleading, the

clerk shall also send a notification concerning it to the Register

within one month after the pleading is filed.

(b) Within one month after any final order or judgment is issued in the

case, the clerk of the court shall notify the Register of it, sending

with the notification a copy of the order or judgment together with the

written opinion, if any, of the court.

(c) Upon receiving the notifications specified in this section, the

Register shall make them a part of the public records of the Copyright

Office.

Section 509. Seizure and forfeiture.

(a) All copies or phonorecords manufactured, reproduced, distributed,

sold or otherwise used, intended for use, or possessed with intent to

use in violation of section 506(a), and all plates, molds, matrices,

masters, tapes, film negatives, or other articles by means of which

such copies or phonorecords may be reproduced, and all electronic,

mechanical, or other devises for manufacturing, reproducing, or

assembling such copies or phonorecords may be seized and forfeited to

the United States.

(b) The applicable procedures relating to (i) the seizure, summary and

judicial forfeiture, and condemnation of vessels, vehicles,

merchandise, and baggage for violations of the customs laws contained

in title 19, (ii) the disposition of such vessels, vehicles,

merchandise, and baggage or the proceeds from the sale thereof, (iii)

the remission or mitigation of such forfeiture, (iv) the compromise of

claims, and (v) the award of compensation to informers in respect of

such forfeitures, shall apply to seizures and forfeitures incurred, or

alleged to have been incurred, under the provisions of this section,

insofar as applicable and not inconsistent with the provisions of this

section; except that such duties as are imposed upon any officer or

employee of the Treasury Department or any other person with respect to

the seizure and forfeiture of vessels, vehicles, merchandise, and

baggage under the provisions of the customs laws contained in title 19

shall be performed with respect seizure and forfeiture of all articles

described in subsection (a) by such officers, agents, or other persons

as may be authorized or designated for that purpose by the Attorney

General.

Section 510. Remedies for alteration of programing by cable systems.

(a) In any action filed pursuant to section 111(c)(3), the following

remedies shall be available;

(1) Where an action is brought by a party identified in subsections (b)

or (c) of section 501, the remedies provided by sections 502 through

505, and the remedy provided by subsection (b) of this section; and

(2) When an action is brought by a party identified in subsection (d)

of section 501, the remedies provided by sections 502 and 505, together

with any actual damages suffered by such party as a result of the

infringement, and the remedy provided by subsection (b) of this section.

(b) In any action filed pursuant to section 111(c)(3), the court may

decree that, for a period not to exceed thirty days, the cable system

shall be deprived of the benefit of a compulsory license for one or

more distant signals carried by such cable system.

CHAPTER 6--MANUFACTURING REQUIREMENTS AND IMPORTATION. Analysis.

Sec.

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.

(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 [sic]

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 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; and

(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.

(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 produce 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 of

phonorecords under section 406, 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 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 of phonorecords of the work.

Section 603. Importation prohibitions: Enforcement and disposition of

excluded articles.

(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 of the court, as the case may be; however, 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 law.

CHAPTER 7--COPYRIGHT OFFICE. Analysis.

Sec.

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.

710. Reproduction for use of the blind and physically handicapped:

Voluntary licensing forms and procedures.

Section 701. The Copyright Office: General responsibilities and

organization.

(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) 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.

(c) 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.

(d) 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).

Section 702. Copyright Office regulations.

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 section 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)(11) if the request is granted.

Section 705. Copyright Office records: Preparation, maintenance,

public inspection, and searching.

(a) The Register of Copyrights shall provide and keep in the Copyright

Office records of all deposits, registrations, recordations, and other

actions taken under this title, and shall prepare indexes of all such

records.

(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 regulation.

Section 707. Copyright Office forms and publication.

(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 Publication--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.

(a) The following fees shall be paid to the Register of Copyrights:

(1) on filing each application for registration of a copyright claim or

a supplementary registration under section 408, including the issuance

of a certificate of registration if registration is made, $10;

(2) on filing each application for registration of a claim to renewal

of a subsisting copyright in its first term under section 304(a),

including the issuance of a certificate of registration if registration

is made, $6;

(3) for the issuance of a receipt for a deposit under section 407, $2;

(4) for the recordation, as provided by section 205, of a transfer of

copyright ownership or other document of six pages or less, covering no

more than one title; $10; for each page over six and each title over

one, 50 cents additional;

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

make phonorecords, $6;

(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, $10 for a document of six pages or less, covering

no more than one title; for each page over six and for each title over

one, $1 additional;

(7) for the issuance, under section 601, of an import statement, $3;

(8) for the issuance, under section 706, of an additional certificate

of registration, $4;

(9) for the issuance of any other certification, $4; the Register of

Copyrights has discretion, on the basis of their cost, to fix the fees

for preparing copies of Copyright Office records, whether they are to

be certified or not;

(10) for the making and reporting of a search as provided by section

705, and for any related services, $10 for each hour or fraction of an

hour consumed;

(11) for any other special services requiring a substantial amount of

time or expense, such fees as the Register of Copyrights may fix on the

basis of the cost of providing the service.

(b) 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.

(c) 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 appropriation for necessary expenses of the

Copyright Office. 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.

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.

Section 710. Reproduction for use of the blind and physically

handicapped: Voluntary licensing forms and procedures.

The Register of Copyrights shall, after consultation with the Chief of

the Division for the Blind and Physically Handicapped and other

appropriate officials of the Library of Congress, establish by

regulation standardized forms and procedures by which, at the time

applications covering certain specified categories of nondramatic

literary works are submitted for registration under section 408 of this

title, the copyright owner may voluntarily grant to the Library of

Congress a license to reproduce the copyrighted work by means of

Braille or similar tactile symbols, or by fixation of a reading of the

work in a phonorecord, or both, and to distribute the resulting copies

or phonorecords solely for the use of the blind and physically

handicapped and under limited conditions to be specified in the

standardized forms.

CHAPTER 8--COPYRIGHT ROYALTY TRIBUNAL. Analysis.

Sec.

801. Copyright Royalty Tribunal: Establishment and purpose.

802. Membership of the Tribunal.

803. Procedures of the Tribunal.

804. Institution and conclusion of proceedings.

805. Staff of the Tribunal.

806. Administrative support of the Tribunal.

807. Deduction of costs of proceedings.

808. Reports.

809. Effective date of final determinations.

810. Judicial review.

Section 801. Copyright Royalty Tribunal: Establishment and purpose.

(a) There is hereby an independent Copyright Royalty Tribunal in the

legislative branch.

(b) Subject to the provisions of this chapter, the purposes of the

Tribunal shall be--

(1) to make determinations concerning the adjustment of reasonable

copyright royalty rates as provided in sections 115 and 116, and to

make determinations as to reasonable terms and rates of royalty

payments as provided in section 118. The rates applicable under

sections 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 copyright

royalty rates in section 111 solely in accordance with the following

provisions:

(A) The rates established by section 111(d)(2)(B) may be adjusted to

reflect (i) national monetary inflation or deflation or (ii) changes in

the average rates charged cable subscribers for the basic service of

providing secondary transmissions to maintain the real constant dollar

level of the royalty fee per subscriber which existed as of the date of

enactment of this Act: Provided, That if the average rates charged

cable system subscribers for the basic service of providing secondary

transmissions are changed so that the average rates exceed national

monetary inflation, no change in the rates established by section

111(d)(2)(B) 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

Commission may consider all factors relating to the maintenance of such

level of payments including, as an extenuating factor, whether the

cable industry has been restrained by subscriber rate regulating

authorities from increasing the rates for the basic service of

providing secondary 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)(2)(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 Royalty Tribunal shall consider,

among other factors, the economic impact on copyright owners and users:

Provided, That no adjustment in royalty rates shall be made under this

subclause with respect to any distant signal equivalent or fraction

thereof represented by (i) carriage of 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 14, 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)(2)(B) may be adjusted to assure that such rates are

reasonable in light of the changes to such rules and regulations, but

any such adjustment shall apply only to the affected television

broadcast signals carried on those systems affected by the change.

(D) The gross receipts limitations established by section 111(d)(2)(C)

and (D) shall be adjusted to reflect national monetary inflation or

deflation or changes in the average rates charged cable system

subscribers for the basic service of providing secondary transmissions

to maintain the real constant dollar value of the exemption provided by

such section; and the royalty rate specified therein shall not be

subject to adjustment; and

(3) As soon as possible after the date of enactment of this Act, and no

later than six months following such date, the President shall publish

a notice announcing the initial appointments provided in section 802,

and shall designate an order of seniority among the initially-appointed

commissioners for purposes of section 802(b).

Section 802. Membership of the Tribunal.

(a) The Tribunal shall be composed of five commissioners appointed by

the President with the advise and consent of the Senate for a term of

seven years each; of the first five members appointed, three shall be

designated to serve for seven years from the date of the notice

specified in section 801(C), and two shall be designated to serve for

five years from such date, respectively. Commissioners shall be

compensated at the highest rate now or hereafter prescribe sic for

grade 18 of the General Schedule pay rates (5 U.S.C. 5332).

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

the commissioners appointed for a full seven-year term. Such chairman

shall serve for a term of one year. Thereafter, the most senior

commissioner who has not previously served as chairman shall serve as

chairman for a period of one year, except that, if all commissioners

have served a full term as chairman, the most senior commissioner who

has served the least number of terms as chairman shall be designated as

chairman.

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

be filed, for the unexpired term of the appointment, in the same manner

as the original appointment was made.

Section 803. Procedures of the Tribunal.

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

governing procedure and methods of operation. Except as otherwise

provided in this chapter, the Tribunal shall be subject to the

provisions of the Administrative Procedure Act of June 11, 1946, as

amended (c. 324, 60 Stat. 237, title 5, United States Code, chapter

5, subchapter II and chapter 7).

Section 804. Institution and conclusion of proceedings.

(a) With respect to proceedings under section 801(b)(1) concerning the

investment of royalty rates as provided in sections 115 and 116, and

with respect to proceedings under section 801(b)(2)(A) and (D)--

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

published in the Federal Register notice of commencement of proceedings

under this chapter; and

(2) during the calendar years specified in the following schedule, any

owner or user of a copyrighted work whose royalty rates are specified

by this title, or by a rate established by the Tribunal, may file a

petition with the Tribunal declaring that the petitioner requests an

adjustment of the rate. The Tribunal shall make a determination as to

whether the applicant has a significant interest in the royalty rate in

which an adjustment is requested. If the Tribunal determines that the

petitioner has a significant interest, the Chairman shall cause notice

of this determination, with the reasons therefor, to be published in

the Federal Register, together with notice of commencement of

proceedings under this chapter.

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

may be filed during 1985 and in each subsequent fifth calendar year.

(B) In proceedings under section 801(b)(1) concerning the adjustment of

royalty rates as provided in section 115, such petition may be filed in

1987 and in each subsequent tenth calendar year.

(C) In proceedings under section 801(b)(1) concerning the adjustment of

royalty rates under section 116, such petition may be filed in 1990 and

in each subsequent tenth calendar year.

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

(_)(2), following an event described in either of those subsections,

any ____ or user of a copyrighted work whose royalty rates are

specified by section ____ by a rate established by the Tribunal, may,

within twelve months, file a ___on with the Tribunal declaring that the

petitioner requests an adjustment of the rate. In this event the

Tribunal shall proceed as in subsection (a)(2), above. Any change in

royalty rates made by the Tribunal pursuant to this subsection may be

reconsidered in 1980, 1985, and each fifth calendar year thereafter, in

accordance with the provisions in section 801(b)(2)(B) or (C), 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 Tribunal shall proceed when and as

provided by that section.

(d) With respect to proceedings under section 801(b)(3), concerning the

distribution of royalty fees in certain circumstances under sections

111 or 116, the Chairman of the Tribunal shall, upon determination by

the Tribunal that a controversy exists concerning such distribution,

cause to be published in the Federal Register notice of commencement of

proceedings under this chapter.

(e) All proceedings under this chapter shall be initiated without delay

following publication of the notice specified in this section, and the

Tribunal shall render its final decision in any such proceeding with

one year from the date of such publication.

Section 805. Staff of the Tribunal.

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

such employees as may be necessary to carry out the provisions of this

chapter, and to prescribe their functions and duties.

(b) The Tribunal may procure temporary and intermittent services to the

same extent as is authorized by section 3109 of title 5.

Section 806. Administrative support of the Tribunal.

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

administrative services, including those related to budgeting,

accounting, financial reporting, travel, personnel, and procurement.

The Tribunal shall pay the Library for such services, either in advance

or by reimbursement from the funds of the Tribunal, at amounts to be

agreed upon between the Librarian and the Tribunal.

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

Tribunal, under regulations prescribed jointly by the Librarian of

Congress and the Tribunal and approved by the Comptroller General.

Such regulations shall establish requirements and procedures under

which every voucher certified for payment by the Library of Congress

under this chapter shall be supported with a certification by a duly

authorized officer or employee of the Tribunal, and shall prescribe the

responsibilities and accountability of said officers and employees of

the Tribunal with respect to such certifications.

Section 807. Deduction of costs of proceedings.

Before any funds are distributed pursuant to a final decision in a

proceeding involving distribution of royalty fees, the Tribunal shall

assess the reasonable costs of such proceeding.

Section 808. Reports.

In addition to its publication of the reports of all final

determinations as provided in section 803(b), the Tribunal shall make

an annual report to the President and the Congress concerning the

Tribunal's work during the preceding fiscal year, including a detailed

fiscal statement of account.

Section 809. Effective date of final determinations.

Any final determination by the Tribunal under this chapter shall become

effective thirty days following its publication in the Federal Register

as provided in section 803(b), unless prior to that time an appeal has

been filed pursuant to section 810, to vacate, modify, or correct such

determination, and notice of such appeal has been served on all parties

who appeared before the Tribunal in the proceeding in question. Where

the proceeding involves the distribution of royalty fees under sections

111 or 116, the Tribunal shall, upon the expiration of such thirty-day

period, distribute any royalty fees not subject to an appeal filed

pursuant to section 810.

Section 810. Judicial review.

Any final decision of the Tribunal in a proceeding under section 801(b)

may be appealed to the United States Court of Appeals, within thirty

days after its publication in the Federal Register by an aggrieved

party. The judicial review of the decision shall be had, in accordance

with chapter 7 of title 5, on the basis of the record before the

Tribunal. No court shall have jurisdiction to review a final decision

of the Tribunal except as provided in this section.

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