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HR 2060 IH

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.

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

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.