U.S. SENATOR PATRICK LEAHY

Statement of Senator Patrick Leahy
Executive Business Meeting of the Senate Judiciary Committee
on the Copyright Royalty and Distribution Reform Act of 2004

September 21, 2004

I have long supported reform of the copyright royalty arbitration procedures.  At our hearing on this topic on May 15, 2002, I noted that there was widespread dissatisfaction with the current CARP procedures.  In particular, many small webcasters could not afford to take part in CARP proceedings, even though their livelihoods would depend on the outcome.  In addition, I have been concerned that the current procedures are often hindered by unreasonable delays, and the outcomes subject to manipulation.  

The current bill responds to these concerns.  This bill replaces arbitrators, who serve for only one CARP procedure and are paid by the parties, with full-time administrative judges.  As a result, the massive financial burden of taking part in a CARP procedure is alleviated.  In addition, all parties can rest assured that there will be continuity and stability in the resolution of these proceedings.   At the same time, this bill preserves the traditional role of the Register of Copyrights.  This bill also resolves long-standing disputes over the availability of discovery.  Because discovery is available where it is needed, the copyright royalty judges will have the information necessary to render a correct determination, but the costs of discovery will be kept to a minimum. 

I look forward to working with my colleagues as this bill moves to the floor.   

# # # # #