U.S. SENATOR PATRICK LEAHY

Hatch-Leahy Bill Reforming Copyright Arbitration Clears Congress

…Bill Would Help Small Webcasters In Vermont And Elsewhere

(THURSDAY, Nov. 18) – Congress has cleared a bill coauthored by Senators Orrin Hatch (R-Utah) and Patrick Leahy (D-Vt.) that makes key reforms to the copyright royalty arbitration procedures.   The House, on Wednesday evening, passed the Senate-passed Copyright Royalty and Distribution Reform Act of 2004, which improves the process by which certain royalty rates, such as those for webcasters, are determined. The bill, a collaborative measure cosponsored by Hatch, chairman of the Senate Judiciary Committee, and Leahy, the Democratic ranking member of the panel, now moves to President Bush’s desk for signing.  Below is Leahy’s statement on final passage of the bill.

Statement of Senator Patrick Leahy
On Final Passage and Enrollment of the Copyright Royalty and Distribution Reform Act, H.R. 1417
November 17, 2004

MR. LEAHY.  I am pleased that in the waning days of the 108^th Congress we can send H.R. 1417, the Copyright Royalty and Distribution Reform Act of 2004, to the White House for the President’s signature.  I wish to thank Senator Hatch, as his chairmanship of the Judiciary Committee comes to a close, for the important work we have done over the years to strengthen our nation’s intellectual property laws.  When two Senators from different parties can collaborate as productively as we have on these issues, the legislative process is working the way it should.

This bill has been a massive, bicameral undertaking.  Many of the provisions were technically complex, and extensive negotiations were necessary in order to iron out some of the more difficult provisions.  In all of these details, recognition is owed to our colleagues in the House for ensuring that obstacles to this bill’s passage did not become roadblocks.  Chairman Sensenbrenner, in particular, played a crucial role in the development of this bill and in helping to pilot it through the other chamber.  Likewise, I wish to express my gratitude for the time, energy, and thoughtful contributions of Congressman Conyers, Congressman Smith, and Congressman Berman, without whom the result we have achieved today would simply not have been possible.

The Copyright Royalty and Distribution Reform Act will modernize and improve the process by which certain royalty rates, such as those for small webcasters, are determined.

As early as 2002, I noted in a Judiciary Committee hearing that there was widespread dissatisfaction with the current CARP procedures.  Among some of the complaints, the Committee heard that many small webcasters could not afford to take part in CARP proceedings, despite their livelihoods hinging on the outcome.  We also heard of many of the structural problems that plagued the process.  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 with full-time administrative judges, alleviating the massive financial burden of taking part in a CARP proceeding, and providing the process with continuity and stability.  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.  Finally, this bill preserves the traditional role of the Register of Copyrights. 

Again, I wish to thank my colleagues in the Senate and in the House for their hard work in guiding into law this important, complex piece of legislation.  We work best when we work together, and I hope that in the final product of the CARP bill we will see reason to develop legislation across party lines, and between chambers, in the next Congress.

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