To nullify the March 2, 2007, determination of the
Copyright Royalty Judges with respect to webcasting, to modify the basis for
making such a determination, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
April 26, 2007
Mr. Inslee introduced
the following bill; which was referred to the
Committee on the
Judiciary, and in addition to the Committee on
Energy and Commerce, for
a period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
A BILL
To nullify the March 2, 2007, determination of the
Copyright Royalty Judges with respect to webcasting, to modify the basis for
making such a determination, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1.Short title.
This Act may be cited as the “Internet
Radio Equality Act”.
SEC. 2. Nullification of
decision of Copyright Royalty Judges.
The March 2, 2007, Determination of Rates
and Terms of the United States Copyright Royalty Judges regarding rates and
terms for the digital performance of sound recordings and ephemeral recordings,
including that determination as modified by the April 17, 2007, Order Denying
Motions for Rehearing and any subsequent modification to that determination by
the Copyright Royalty Judges that is published in the Federal Register, is not
effective, and shall be deemed never to have been effective.
SEC. 3.
Computation of royalty fees for commercial internet radio services offering
digital performances of sound recordings.
(a) Standard for
determining rates and terms.—Section 114(f)(2)(B) of title 17,
United States Code, is amended by striking “Such rates and terms shall
distinguish” and all that follows through the end of clause (ii) and
inserting the following: “The Copyright Royalty Judges shall establish
rates and terms in accordance with the objectives set forth in section
801(b)(1). Such rates and terms may include a minimum annual royalty of not
more than $500 for each provider of services that are subject to such rates and
terms, which shall be the only minimum royalty fee and shall be assessed only
once annually to that provider.”.
(b) Transition
rule.—Except for services
covered by section 118 of title 17, United States Code, each provider of
digital audio transmissions that otherwise would have been subject to the rates
and terms of the determination of the Copyright Royalty Judges made ineffective
by section 2 of this Act shall instead pay royalties for each year of the
5-year period beginning on January 1, 2006, at one of the following rates, as
selected by the provider for that year:
(1) 0.33 cents per hour of sound recordings
transmitted to a single listener.
(2) 7.5 percent of the revenues received by the
provider during that year that are directly related to the provider’s digital
transmissions of sound recordings.
SEC. 4. Computation of
royalty fees for noncommercial stations offering digital performances of sound
recordings.
(a) Amendments to
section 118 of title
17, United States Code.—Section
118 of title 17, United States Code, is amended—
(1) in
subsection (b), in the matter preceding paragraph (1), by striking “and
published pictorial” and inserting “, sound recordings, and
published pictorial”;
(2) in subsection
(c)—
(A) in the matter preceding paragraph (1), by
striking “and published pictorial” and inserting “, sound
recordings, and published pictorial”; and
(B) in paragraph (1),
by inserting “or nonprofit institution or organization” after
“broadcast station”; and
(3) in
subsection (f), by striking “paragraph (2)” and inserting
“paragraph (1) or (2)”.
(b) Transition
rule.—For each calendar year
(or portion thereof) beginning after December 31, 2004, until an applicable
voluntary license agreement is filed with the Copyright Royalty Judges pursuant
to section 118 of title 17, United States Code (as amended by subsection (a) of
this section) or an applicable determination is issued by the Copyright Royalty
Judges pursuant to section 118 of such title (as so amended), the annual
royalty that a public broadcasting entity shall pay to owners of copyrights in
sound recordings for the uses provided under section 118(c) of such title (as
so amended) shall be an amount equal to the 1.5 times the total fees paid by
that entity (or in the case of a group of related entities, the fees paid by
such group) pursuant to section 114(f)(2) of title 17, United States Code, for
such uses during the calendar year ending December 31, 2004.
SEC. 5. Report by the
National Telecommunications and Information Administration.
Upon the publication in the Federal Register
under section 803(b)(1) of title 17, United States Code, of the commencement of
proceedings of the Copyright Royalty Judges under section 114(f) or 118 of
title 17, United States Code, to determine rates and terms for Internet radio
service providers under the statutory license provided under section 114(d)(2)
or 118 (as the case may be), the Assistant Secretary of Commerce for
Communications and Information, after consulting with representatives of
copyright owners, nonprofit educational institutions, and commercial and
noncommercial Internet radio providers, shall submit to the Copyright Royalty
Judges a report on the competitiveness of the Internet radio marketplace and
the effect on Internet radio providers of proposed rate determinations in the
proceedings. The Assistant Secretary shall submit the report to the Copyright
Royalty Judges in a timely manner before the conclusion of the
proceedings.
SEC. 6. Report by the
Federal Communications Commission.
Upon the publication in the Federal Register
under section 803(b)(1) of title 17, United States Code, of the commencement of
proceedings of the Copyright Royalty Judges under section 114(f) or 118 of
title 17, United States Code, to determine rates and terms for Internet radio
service providers under the statutory license provided under section 114(d)(2)
or 118 (as the case may be), the Federal Communications Commission shall submit
to the Copyright Royalty Judges a report on the effect of proposed rate
determinations in the proceedings on localism, diversity, and competition in
the Internet radio marketplace. The report shall include the Commission’s views
on the effects of the proposed rate determinations on—
(1) localism, diversity, and competition in
rural areas;
(2) diversity of
programming, including foreign language programming; and
(3) competitive
barriers to entry into the Internet radio market.
The Commission
shall submit the report to the Copyright Royalty Judges in a timely manner
before the conclusion of the proceedings.
SEC. 7. Report by
Corporation for Public Broadcasting.
Upon the publication in the Federal Register
under section 803(b)(1) of title 17, United States Code, of the commencement of
proceedings of the Copyright Royalty Judges under section 114(f) or 118 of
title 17, United States Code, to determine rates and terms for Internet radio
service providers under the statutory license provided under section 114(d)(2)
or 118 (as the case may be), Corporation for Public Broadcasting, in
consultation with public radio licensees or permittees, or their designated
representatives, shall submit to the Congress a report on the effect of the
proposed rate determinations on such licensees and permittees. The Corporation
shall submit the report to the Copyright Royalty Judges in a timely manner
before the conclusion of the proceedings.
