U.S. SENATOR PATRICK LEAHY

(WEDNESDAY, Oct. 6) -- The Senate on Wednesday passed a bill containing key reforms to the copyright royalty arbitration procedures (or CARP) coauthored by Senators Orrin Hatch (R-Utah) and Patrick Leahy (D-Vt.).  Hatch, chairman of the Senate Judiciary Committee, and Leahy, the Democratic ranking member of the panel, substituted the Copyright Royalty and Distribution Reform Act of 2004 to a House-passed bill Wednesday afternoon.  The Hatch-Leahy amended bill moves back to the House, where it is expected to be approved.  Below is Leahy’s statement.  

Statement of Senator Patrick Leahy
On Passage of the Copyright Royalty
and Distribution Reform Act of 2004 
October 6, 2004  

Mr. President, I am pleased that the Senate is taking up and passing the Copyright Royalty and Distribution Reform Act of 2004.  I have been working to reform of the copyright royalty arbitration procedures for several years.  As early as 2002 I noted in a Judiciary Committee hearing that there was widespread dissatisfaction with the current law.    

In particular, we heard the testimony of Frank Schliemann of Onion River Radio of Montpelier, Vermont.  Mr. Schliemann noted that many small webcasters could not afford to take part in CARP proceedings, even though their livelihoods would depend on the outcome.  We also heard from Billy Strauss, President of Websound, another small webcaster in Brattleboro, Vermont.  Mr. Strauss noted many of the structural problems that plagued the old CARP procedures.  In addition, I have been concerned that the current procedures are often hindered by unreasonable delays, and the outcomes subject to manipulation.

The Copyright Royalty and Distribution Reform Act responds to these concerns.  It replaces arbitrators, who serve for only one CARP procedure and are paid by the parties, with full-time administrative judges.  As a result, the 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 am pleased to have cosponsored with Senator Hatch the amendment in the nature of a substitute to the House bill.  I thank Chairman Sensenbrenner, Chairman Smith and Congressman Berman for their leadership in this matter.  We believe that in adopting this version of the house bill, H.R. 1417, we will be able to move to final passage without delay.  It is time these important reforms were implemented.

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