To nullify the determinations of the Copyright Royalty
Judges with respect to webcasting, to modify the basis for making such a
determination, and for other purposes.
IN THE SENATE OF THE UNITED STATES
May 10, 2007
Mr. Wyden (for himself
and Mr. Brownback) introduced the
following bill; which was read twice and referred to the
Committee on the
Judiciary
A BILL
To nullify the determinations 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 of
2007”.
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 and the
April 23, 2007, Final 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 and any subsequent modification to
that determination by the Copyright Royalty Judges that is published in the
Federal Register, are 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 1 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
rules.—
(1) IN
GENERAL.—Except as provided under paragraph (2), 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 under 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 under section 118 of such title (as so amended)
—
(A) except as
provided under subparagraphs (B) and (C), the annual royalty that a public
broadcast 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 1.05 times the amount paid by that entity (or in the case of a
group of related entities, the fees paid by such group) under section 114(f)(2)
of title 17, United States Code, for such uses during the calendar year ending
December 31, 2004;
(B) the annual
royalty that a public broadcasting entity that is a noncommercial webcaster and
did not owe royalties under section 114(f)(2) of title 17, United States Code,
during the calendar year ending December 31, 2004, 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 the amount that would have been owed under
the agreement entered into under section 114(f)(5) of that title for such uses
applicable to noncommercial webcasters as in effect during calendar year 2004;
and
(C) the annual
royalty that public broadcasting entities constituting National Public Radio,
Inc., its member stations and public radio stations qualified to receive
funding from the Corporation for Public Broadcasting, shall collectively 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 1.05 times the
amount paid on the behalf of these entities under section 114(f)(2) of title
17, United States Code, for such uses during the calendar year ending December
31, 2004.
(2) LIMITATION.—No
entity shall be required under paragraph (1)(A) or (B) to pay more than $5,000
for any calendar year.
SEC. 5. Credit of
Royalty Fees.
Any royalties
received under 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 and the
April 23, 2007, Final 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 and any subsequent modification to
that determination by the Copyright Royalty Judges that is published in the
Federal Register shall be credited against royalties required to be paid under
section 3 or 4 of this Act.