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Copyright Law of the United States of America

T >> The US Copyright Office >> Copyright Law of the United States of America

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(D) The gross receipts limitations established by section 111(d)(1)(C)
and (D) shall be adjusted to reflect national monetary inflation or
deflation or changes in the average rates charged cable system
subscribers for the basic service of providing secondary transmissions
to maintain the real constant dollar value of the exemption provided by
such section; and the royalty rate specified therein shall not be
subject to adjustment.

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

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

(1) authorizing the distribution of those royalty fees collected under
sections 111, 119, and 1005 that the Librarian has found are not subject
to controversy; and

(2) accepting or rejecting royalty claims filed under sections 111, 119,
and 1007 on the basis of timeliness or the failure to establish the
basis for a claim.

(d) Support and Reimbursement of Arbitration Panels. The Librarian of
Congress, upon the recommendation of the Register of Copyrights, shall
provide the copyright arbitration royalty panels with the necessary
administrative services related to proceedings under this chapter, and
shall reimburse the arbitrators presiding in distribution proceedings at
such intervals and in such manner as the Librarian shall provide by
regulation. Each such arbitrator is an independent contractor acting on
behalf of the United States, and shall be hired pursuant to a signed
agreement between the Library of Congress and the arbitrator. Payments
to the arbitrators shall be considered reasonable costs incurred by the
Library of Congress and the Copyright Office for purposes of section
802(h)(1).


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

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

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

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

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

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

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

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

(h) Administrative Matters.

(1) Deduction of costs of library of congress and copyright office from
royalty fees. The Librarian of Congress and the Register of Copyrights
may, to the extent not otherwise provided under this title, deduct from
royalty fees deposited or collected under this title the reasonable
costs incurred by the Library of Congress and the Copyright Office under
this chapter. Such deduction may be made before the fees are distributed
to any copyright claimants. In addition, all funds made available by an
appropriations Act as offsetting collections and available for
deductions under this subsection shall remain available until expended.
In ratemaking proceedings, the reasonable costs of the Librarian of
Congress and the Copyright Office shall be borne by the parties to the
proceedings as directed by the arbitration panels under subsection (c).

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


Section 803. Institution and conclusion of proceedings [5]

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

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

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

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

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

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

(b) With respect to proceedings under subparagraph (B) or (C) of section
801(b)(2), following an event described in either of those subsections,
any owner or user of a copyrighted work whose royalty rates are
specified by section 111, or by a rate established by the Copyright
Royalty Tribunal or the Librarian of Congress, may, within twelve
months, file a petition with the Librarian declaring that the petitioner
requests an adjustment of the rate. In this event the Librarian shall
proceed as in subsection (a) of this section. Any change in royalty
rates made by the Copyright Royalty Tribunal or the Librarian of
Congress pursuant to this subsection may be reconsidered in 1980, 1985,
and each fifth calendar year thereafter, in accordance with the
provisions in section 801(b)(2)(B) or (C), as the case may be.

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

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

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

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

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

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

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

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

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

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

Chapter 9 [1]

Protection of Semiconductor Chip Products

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


Section 901. Definitions

(a) As used in this chapter

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

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

(B) intended to perform electronic circuitry functions;

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

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

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

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

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

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

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

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

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

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

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


Section 902. Subject matter of protection [3]

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

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

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

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

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

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

(1) is not original; or

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

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


Section 903. Ownership, transfer, licensing, and recordation

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

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

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