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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

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