U.S. Copyright Royalty Board Amends Procedural regulations

Effective September 11, 2006, the Copyright Royalty Board is adopting amendments to the procedural regulations governing the practices and procedures of the Copyright Royalty Judges in royalty rate and distribution proceedings.

Click here for the final rule with request for comments due by November 13, 2006.


Finding the right administrative structure to set rates and make distributions for the expanded array of statutory licenses has proven "problematic." Initially, Congress established a stand-alone administrative agency--the former Copyright Royalty Tribunal--to perform these tasks. However, “there was insufficient work to justify the existence of a permanent body.” Next, in 1993, Congress transferred the ratemaking and distribution functions to the Library of Congress. In cases where the parties could not reach agreement, the controversies would be referred to an ad hoc CARP. The CARP decisions were then reviewed by the Librarian for possible arbitrariness. But the CARP system presented perceived problems of continuity, consistency, and expense.

Under the Reform Act, three permanent Copyright Royalty Judges will be appointed by the Librarian of Congress to encourage settlements and, when necessary, resolve statutory license disputes. The expectation is that the Copyright Royalty Judges, appointed to staggered, six-year terms, will provide greater decisional stability, yielding the advantages of the former Copyright Royalty Tribunal, but with greater efficiency and expertise.

On February 7, 2005, the Librarian of Congress appointed an interim Chief Copyright Royalty Judge and the Copyright Royalty Board (“CRB” or “Board”) was subsequently established within the Library of Congress to house the Copyright Royalty Judges. These regulations implement the requirement of section 803(b)(6)(A) of the Copyright Act that directs the Copyright Royalty Judges to “issue regulations to govern [their] proceedings.”