[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1551 Enrolled Bill (ENR)]
H.R.1551
One Hundred Fifteenth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Wednesday,
the third day of January, two thousand and eighteen
An Act
To modernize copyright law, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

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(a) Short Title.--This Act may be cited as the ``Orrin G. Hatch-Bob
Goodlatte Music Modernization Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:

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ec963180e9781dbf5ec45c1f06beaa5db646e94498f22c095edec8d83690a283

TITLE I

-MUSIC LICENSING MODERNIZATION

Section 13031(j)(3)(A) of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)(A)) is amended by
striking ``October 13, 2027'' and inserting ``October 20, 2027''.

e2efb6a0ff5ad1d05bec583282892b5ade229da462414831ea9193161c99e52a

TITLE IV

-SEVERABILITY

This title may be cited as the ``Musical Works Modernization Act''.

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(a) Uniform Rate Standard.--Section 114(f) of title 17, United
States Code, is amended--
(1) by striking paragraphs (1) and (2) and inserting the
following:
``(1)(A) Proceedings under chapter 8 shall determine reasonable
rates and terms of royalty payments for transmissions subject to
statutory licensing under subsection (d)(2) during the 5-year
period beginning on January 1 of the second year following the year
in which the proceedings are to be commenced pursuant to
subparagraph (A) or (B) of section 804(b)(3), as the case may be,
or such other period as the parties may agree. The parties to each
proceeding shall bear their own costs.
``(B) The schedule of reasonable rates and terms determined by
the Copyright Royalty Judges shall, subject to paragraph (2), be
binding on all copyright owners of sound recordings and entities
performing sound recordings affected by this paragraph during the
5-year period specified in subparagraph (A), or such other period
as the parties may agree. Such rates and terms shall distinguish
among the different types of services then in operation and shall
include a minimum fee for each such type of service, such
differences to be based on criteria including the quantity and
nature of the use of sound recordings and the degree to which use
of the service may substitute for or may promote the purchase of
phonorecords by consumers. The Copyright Royalty Judges shall
establish rates and terms that most clearly represent the rates and
terms that would have been negotiated in the marketplace between a
willing buyer and a willing seller. In determining such rates and
terms, the Copyright Royalty Judges--
``(i) shall base their decision on economic, competitive,
and programming information presented by the parties,
including--
``(I) whether use of the service may substitute for or
may promote the sales of phonorecords or otherwise may
interfere with or may enhance the sound recording copyright
owner's other streams of revenue from the copyright owner's
sound recordings; and
``(II) the relative roles of the copyright owner and
the transmitting entity in the copyrighted work and the
service made available to the public with respect to
relative creative contribution, technological contribution,
capital investment, cost, and risk; and
``(ii) may consider the rates and terms for comparable
types of audio transmission services and comparable
circumstances under voluntary license agreements.
``(C) The procedures under subparagraphs (A) and (B) shall also
be initiated pursuant to a petition filed by any sound recording
copyright owner or any transmitting entity indicating that a new
type of service on which sound recordings are performed is or is
about to become operational, for the purpose of determining
reasonable terms and rates of royalty payments with respect to such
new type of service for the period beginning with the inception of
such new type of service and ending on the date on which the
royalty rates and terms for eligible nonsubscription services and
new subscription services, or preexisting subscription services and
preexisting satellite digital audio radio services, as the case may
be, most recently determined under subparagraph (A) or (B) and
chapter 8 expire, or such other period as the parties may agree.'';
and
(2) by redesignating paragraphs (3), (4), and (5) as paragraphs
(2), (3), and (4), respectively.
(b) Repeal.--Subsection (i) of section 114 of title 17, United
States Code, is repealed.
(c) Use in Musical Work Proceedings.--
(1) In general.--License fees payable for the public
performance of sound recordings under section 106(6) of title 17,
United States Code, shall not be taken into account in any
administrative, judicial, or other governmental proceeding to set
or adjust the royalties payable to musical work copyright owners
for the public performance of their works except in such a
proceeding to set or adjust royalties for the public performance of
musical works by means of a digital audio transmission other than a
transmission by a broadcaster, and may be taken into account only
with respect to such digital audio transmission.
(2) Definitions.--In this subsection:
(A) Transmission by a broadcaster.--The term ``transmission
by a broadcaster'' means a nonsubscription digital transmission
made by a terrestrial broadcast station on its own behalf, or
on the behalf of a terrestrial broadcast station under common
ownership or control, that is not part of an interactive
service or a music-intensive service comprising the
transmission of sound recordings customized for or customizable
by recipients or service users.
(B) Terrestrial broadcast station.--The term ``terrestrial
broadcast station'' means a terrestrial, over-the-air radio or
television broadcast station, including an FM translator (as
defined in section 74.1201 of title 47, Code of Federal
Regulations, and licensed as such by the Federal Communications
Commission) whose primary business activities are comprised of,
and whose revenues are generated through, terrestrial, over-
the-air broadcast transmissions, or the simultaneous or
substantially-simultaneous digital retransmission by the
terrestrial, over-the-air broadcast station of its over-the-air
broadcast transmissions.
(d) Rule of Construction.--Subsection (c)(2) shall not be given
effect in interpreting provisions of title 17, United States Code.
(e) Use in Sound Recording Proceedings.--The repeal of section
114(i) of title 17, United States Code, by subsection (b) shall not be
taken into account in any proceeding to set or adjust the rates and
fees payable for the use of sound recordings under section 112(e) or
114(f) of such title that is pending on, or commenced on or after, the
date of enactment of this Act.
(f) Decisions and Precedents Not Affected.--The repeal of section
114(i) of title 17, United States Code, by subsection (b) shall not
have any effect upon the decisions, or the precedents established or
relied upon, in any proceeding to set or adjust the rates and fees
payable for the use of sound recordings under section 112(e) or 114(f)
of such title before the date of enactment of this Act.
(g) Technical and Conforming Amendments.--
(1) Section 114.--Section 114(f) of title 17, United States
Code, as amended by subsection (a), is further amended in paragraph
(4)(C), as so redesignated, in the first sentence, by striking
``under paragraph (4)'' and inserting ``under paragraph (3)''.
(2) Section 801.--Section 801(b) of title 17, United States
Code, is amended--
(A) in paragraph (1), by striking ``The rates applicable''
and all that follows though ``prevailing industry practices.'';
and
(B) in paragraph (7)(B), by striking ``114(f)(3)'' and
inserting ``114(f)(2)''.
(3) Section 803.--Section 803(c)(2)(E)(i)(II) of title 17,
United States Code, is amended--
(A) by striking ``or 114(f)(2)(C)''; and
(B) by striking ``114(f)(4)(B)'' and inserting
``114(f)(3)(B)''.
(4) Section 804.--Section 804(b)(3)(C) of title 17, United
States Code, is amended--
(A) in clause (i), by striking ``and 114(f)(2)(C)'';
(B) in clause (iii)(II), by striking ``114(f)(4)(B)(ii)''
and inserting ``114(f)(3)(B)(ii)''; and
(C) in clause (iv), by striking ``or 114(f)(2)(C), as the
case may be''.
(h) Effective Date of Amended Rate Setting Standard.--The
amendments made by subsection (a)(1) shall apply to any proceeding
before the Copyright Royalty Judges that is commenced on or after the
date of the enactment of this Act.
(i) Timing of Rate Determinations.--Section 804(b)(3)(B) of title
17, United States Code, is amended, in the third sentence, by inserting
the following after ``fifth calendar year'': ``, except that--(i) with
respect to preexisting subscription services, the terms and rates
finally determined for the rate period ending on December 31, 2022,
shall remain in effect through December 31, 2027, and there shall be no
proceeding to determine terms and rates for preexisting subscription
services for the period beginning on January 1, 2023, and ending on
December 31, 2027; and'' ``(ii) with respect to pre-existing satellite
digital audio radio services, the terms and rates set forth by the
Copyright Royalty Judges on December 14, 2017, in their initial
determination for the rate period ending on December 31, 2022, shall be
in effect through December 31, 2027, without any change based on a
rehearing under section 803(c)(2) and without the possibility of appeal
under section 803(d), and there shall be no proceeding to determine
terms and rates for preexisting satellite digital audio radio services
for the period beginning on January 1, 2023, and ending on December 31,
2027''.

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Section 137 of title 28, United States Code, is amended--
(1) by striking ``The business'' and inserting ``(a) In
General.--The business''; and
(2) by adding at the end the following:
``(b) Random Assignment of Rate Court Proceedings.--
``(1) In general.--
``(A) Definition.--In this paragraph, the term `performing
rights society' has the meaning given the term in section 101
of title 17.
``(B) Determination of license fee.--Except as provided in
subparagraph (C), in the case of any performing rights society
subject to a consent decree, any application for the
determination of a license fee for the public performance of
music in accordance with the applicable consent decree shall be
made in the district court with jurisdiction over that consent
decree and randomly assigned to a judge of that district court
according to the rules of that court for the division of
business among district judges, provided that any such
application shall not be assigned to--
``(i) a judge to whom continuing jurisdiction over any
performing rights society for any performing rights society
consent decree is assigned or has previously been assigned;
or
``(ii) a judge to whom another proceeding concerning an
application for the determination of a reasonable license
fee is assigned at the time of the filing of the
application.
``(C) Exception.--Subparagraph (B) does not apply to an
application to determine reasonable license fees made by
individual proprietors under section 513 of title 17.
``(2) Rule of construction.--Nothing in paragraph (1) shall
modify the rights of any party to a consent decree or to a
proceeding to determine reasonable license fees, to make an
application for the construction of any provision of the applicable
consent decree. Such application shall be referred to the judge to
whom continuing jurisdiction over the applicable consent decree is
currently assigned. If any such application is made in connection
with a rate proceeding, such rate proceeding shall be stayed until
the final determination of the construction application. Disputes
in connection with a rate proceeding about whether a licensee is
similarly situated to another licensee shall not be subject to
referral to the judge with continuing jurisdiction over the
applicable consent decree.''.

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(a) Definition.--In this section, the term ``performing rights
society'' has the meaning given the term in section 101 of title 17,
United States Code.
(b) Notification of Review.--
(1) In general.--The Department of Justice shall provide timely
briefings upon request of any Member of the Committee on the
Judiciary of the Senate and the Committee on the Judiciary of the
House of Representatives regarding the status of a review in
progress of a consent decree between the United States and a
performing rights society.
(2) Confidentiality and deliberative process.--In accordance
with applicable rules relating to confidentiality and agency
deliberative process, the Department of Justice shall share with
such Members of Congress detailed and timely information and
pertinent documents related to the consent decree review.
(c) Action Before Motion to Terminate.--
(1) In general.--Before filing with the appropriate district
court of the United States a motion to terminate a consent decree
between the United States and a performing rights society,
including a motion to terminate a consent decree after the passage
of a specified period of time, the Department of Justice shall--
(A) notify Members of Congress and committees of Congress
described in subsection (b); and
(B) provide to such Members of Congress and committees
information regarding the impact of the proposed termination on
the market for licensing the public performance of musical
works should the motion be granted.
(2) Notification.--
(A) In general.--During the notification described in
paragraph (1), and not later than a reasonable time before the
date on which the Department of Justice files with the
appropriate district court of the United States a motion to
terminate a consent decree between the United States and a
performing rights society, the Department of Justice should
submit to the chairmen and ranking members of the Committee on
the Judiciary of the Senate and the Committee on the Judiciary
of the House of Representatives a written notification of the
intent of the Department of Justice to file the motion.
(B) Contents.--The notification provided in subparagraph
(A) shall include a written report to the chairmen and ranking
members of the Committee on the Judiciary of Senate and the
Committee on the Judiciary of the House of Representatives
setting forth--
(i) an explanation of the process used by the
Department of Justice to review the consent decree;
(ii) a summary of the public comments received by the
Department of Justice during the review by the Department;
and
(iii) other information provided to Congress under
paragraph (1)(B).
(d) Scope.--This section applies only to a consent decree between
the United States and a performing rights society.

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This title, and the amendments made by this title, shall take
effect on the date of enactment of this Act.

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This title may be cited as the ``Classics Protection and Access
Act''.

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TITLE II

-CLASSICS PROTECTION AND ACCESS

85c7a2a3d654a0e000ad2fb985e4ce8e39ffce8b3ce93c8591644e255702e5e7

This title may be cited as the ``Allocation for Music Producers
Act'' or the ``AMP Act''.

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TITLE III

-ALLOCATION FOR MUSIC PRODUCERS

(a) Letter of Direction.--Section 114(g) of title 17, United States
Code, is amended by adding at the end the following:
``(5) Letter of direction.--
``(A) In general.--A nonprofit collective designated by the
Copyright Royalty Judges to distribute receipts from the
licensing of transmissions in accordance with subsection (f)
shall adopt and reasonably implement a policy that provides, in
circumstances determined by the collective to be appropriate,
for acceptance of instructions from a payee identified under
subparagraph (A) or (D) of paragraph (2) to distribute, to a
producer, mixer, or sound engineer who was part of the creative
process that created a sound recording, a portion of the
payments to which the payee would otherwise be entitled from
the licensing of transmissions of the sound recording. In this
section, such instructions shall be referred to as a `letter of
direction'.
``(B) Acceptance of letter.--To the extent that a
collective described in subparagraph (A) accepts a letter of
direction under that subparagraph, the person entitled to
payment pursuant to the letter of direction shall, during the
period in which the letter of direction is in effect and
carried out by the collective, be treated for all purposes as
the owner of the right to receive such payment, and the payee
providing the letter of direction to the collective shall be
treated as having no interest in such payment.
``(C) Authority of collective.--This paragraph shall not be
construed in such a manner so that the collective is not
authorized to accept or act upon payment instructions in
circumstances other than those to which this paragraph
applies.''.
(b) Additional Provisions for Recordings Fixed Before November 1,
1995.--Section 114(g) of title 17, United States Code, as amended by
subsection (a), is further amended by adding at the end the following:
``(6) Sound recordings fixed before november 1, 1995.--
``(A) Payment absent letter of direction.--A nonprofit
collective designated by the Copyright Royalty Judges to
distribute receipts from the licensing of transmissions in
accordance with subsection (f) (in this paragraph referred to
as the `collective') shall adopt and reasonably implement a
policy that provides, in circumstances determined by the
collective to be appropriate, for the deduction of 2 percent of
all the receipts that are collected from the licensing of
transmissions of a sound recording fixed before November 1,
1995, but which is withdrawn from the amount otherwise payable
under paragraph (2)(D) to the recording artist or artists
featured on the sound recording (or the persons conveying
rights in the artists' performance in the sound recording), and
the distribution of such amount to 1 or more persons described
in subparagraph (B) of this paragraph, after deduction of costs
described in paragraph (3) or (4), as applicable, if each of
the following requirements is met:
``(i) Certification of attempt to obtain a letter of
direction.--The person described in subparagraph (B) who is
to receive the distribution has certified to the
collective, under penalty of perjury, that--
``(I) for a period of not less than 120 days, that
person made reasonable efforts to contact the artist
payee for such sound recording to request and obtain a
letter of direction instructing the collective to pay
to that person a portion of the royalties payable to
the featured recording artist or artists; and
``(II) during the period beginning on the date on
which that person began the reasonable efforts
described in subclause (I) and ending on the date of
that person's certification to the collective, the
artist payee did not affirm or deny in writing the
request for a letter of direction.
``(ii) Collective attempt to contact artist.--After
receipt of the certification described in clause (i) and
for a period of not less than 120 days before the first
distribution by the collective to the person described in
subparagraph (B), the collective attempts, in a reasonable
manner as determined by the collective, to notify the
artist payee of the certification made by the person
described in subparagraph (B).
``(iii) No objection received.--The artist payee does
not, as of the date that was 10 business days before the
date on which the first distribution is made, submit to the
collective in writing an objection to the distribution.
``(B) Eligibility for payment.--A person shall be eligible
for payment under subparagraph (A) if the person--
``(i) is a producer, mixer, or sound engineer of the
sound recording;
``(ii) has entered into a written contract with a
record company involved in the creation or lawful
exploitation of the sound recording, or with the recording
artist or artists featured on the sound recording (or the
persons conveying rights in the artists' performance in the
sound recording), under which the person seeking payment is
entitled to participate in royalty payments that are based
on the exploitation of the sound recording and are payable
from royalties otherwise payable to the recording artist or
artists featured on the sound recording (or the persons
conveying rights in the artists' performance in the sound
recording);
``(iii) made a creative contribution to the creation of
the sound recording; and
``(iv) submits to the collective--
``(I) a written certification stating, under
penalty of perjury, that the person meets the
requirements in clauses (i) through (iii); and
``(II) a true copy of the contract described in
clause (ii).
``(C) Multiple certifications.--Subject to subparagraph
(D), in a case in which more than 1 person described in
subparagraph (B) has met the requirements for a distribution
under subparagraph (A) with respect to a sound recording as of
the date that is 10 business days before the date on which the
distribution is made, the collective shall divide the 2 percent
distribution equally among all such persons.
``(D) Objection to payment.--Not later than 10 business
days after the date on which the collective receives from the
artist payee a written objection to a distribution made
pursuant to subparagraph (A), the collective shall cease making
any further payment relating to such distribution. In any case
in which the collective has made 1 or more distributions
pursuant to subparagraph (A) to a person described in
subparagraph (B) before the date that is 10 business days after
the date on which the collective receives from the artist payee
an objection to such distribution, the objection shall not
affect that person's entitlement to any distribution made
before the collective ceases such distribution under this
subparagraph.
``(E) Ownership of the right to receive payments.--To the
extent that the collective determines that a distribution will
be made under subparagraph (A) to a person described in
subparagraph (B), such person shall, during the period covered
by such distribution, be treated for all purposes as the owner
of the right to receive such payments, and the artist payee to
whom such payments would otherwise be payable shall be treated
as having no interest in such payments.
``(F) Artist payee defined.--In this paragraph, the term
`artist payee' means a person, other than a person described in
subparagraph (B), who owns the right to receive all or part of
the receipts payable under paragraph (2)(D) with respect to a
sound recording. In a case in which there are multiple artist
payees with respect to a sound recording, an objection by 1
such payee shall apply only to that payee's share of the
receipts payable under paragraph (2)(D), and shall not preclude
payment under subparagraph (A) from the share of an artist
payee that does not so object.''.
(c) Technical and Conforming Amendments.--Section 114(g) of title
17, United States Code, as amended by subsections (a) and (b), is
further amended--
(1) in paragraph (2), by striking ``An agent designated'' and
inserting ``Except as provided for in paragraph (6), a nonprofit
collective designated by the Copyright Royalty Judges'';
(2) in paragraph (3)--
(A) by striking ``nonprofit agent designated'' and
inserting ``nonprofit collective designated by the Copyright
Royalty Judges'';
(B) by striking ``another designated agent'' and inserting
``another designated nonprofit collective''; and
(C) by striking ``agent'' and inserting ``collective'' each
subsequent place it appears;
(3) in paragraph (4)--
(A) by striking ``designated agent'' and inserting
``nonprofit collective''; and
(B) by striking ``agent'' and inserting ``collective'' each
subsequent place it appears; and
(4) by adding at the end the following:
``(7) Preemption of state property laws.--The holding and
distribution of receipts under section 112 and this section by a
nonprofit collective designated by the Copyright Royalty Judges in
accordance with this subsection and regulations adopted by the
Copyright Royalty Judges, or by an independent administrator
pursuant to subparagraphs (B) and (C) of section 114(g)(2), shall
supersede and preempt any State law (including common law)
concerning escheatment or abandoned property, or any analogous
provision, that might otherwise apply.''.

8c848ee050e021eadeac5b4ff884a135fa929a2fe8533194bc5e48d3983610c3

(a) In General.--Except as provided in subsection (b), this title
and the amendments made by this title shall take effect on the date of
enactment of this Act.
(b) Delayed Effective Date.--Paragraphs (5)(B) and (6)(E) of
section 114(g) of title 17, United States Code, as added by section
302, shall take effect on January 1, 2020.

8ad8a49f0a978d566e76f8fe6934ca3b42432a582cc13bd81b754b71ab2d0f6d

If any provision of this Act or any amendment made by this Act, or
any application of such provision or amendment to any person or
circumstance, is held to be unconstitutional, the remainder of the
provisions of this Act and the amendments made by this Act, and the
application of the provision or amendment to any other person or
circumstance, shall not be affected.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.

726ea002122b4bde744b936671bc07a913f5516b6466c1ec465a4434d3bb3130

Orrin G. Hatch-Bob Goodlatte Music Modernization Act

Other Sections

TITLE I

TITLE IV

TITLE II

TITLE III

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