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not to exceed 50 percent

of the actual damages.

(B) Statutory damages for section 1002 violations.

(i) Device. A complaining party may recover an award of statutory

damages for each violation of section 1002(a) or (c) in the sum of not

more than $2,500 per device involved in such violation or per device on

which a service prohibited by section 1002(c) has been performed, as the

court considers just.

(ii) Digital musical recording. A complaining party may recover an award

of statutory damages for each violation of section 1002(d) in the sum of

not more than $25 per digital musical recording involved in such

violation, as the court considers just.

(iii) Transmission. A complaining party may recover an award of damages

for each transmission or communication that violates section 1002(e) in

the sum of not more than $10,000, as the court considers just.

(2) Repeated violations. In any case in which the court finds that a

person has violated section 1002 or 1003 within 3 years after a final

judgment against that person for another such violation was entered, the

court may increase the award of damages to not more than double the

amounts that would otherwise be awarded under paragraph (1), as the

court considers just.

(3) Innocent violations of section 1002. The court in its discretion may

reduce the total award of damages against a person violating section

1002 to a sum of not less than $250 in any case in which the court finds

that the violator was not aware and had no reason to believe that its

acts constituted a violation of section 1002.

(e) Payment of Damages. Any award of damages under subsection (d) shall

be deposited with the Register pursuant to section 1005 for distribution

to interested copyright parties as though such funds were royalty

payments made pursuant to section 1003.

(f) Impounding of Articles. At any time while an action under subsection

(a) is pending, the court may order the impounding, on such terms as it

deems reasonable, of any digital audio recording device, digital musical

recording, or device specified in section 1002(c) that is in the custody

or control of the alleged violator and that the court has reasonable

cause to believe does not comply with, or was involved in a violation

of, section 1002.

(g) Remedial Modification and Destruction of Articles. In an action

brought under subsection (a), the court may, as part of a final judgment

or decree finding a violation of section 1002, order the remedial

modification or the destruction of any digital audio recording device,

digital musical recording, or device specified in section 1002(c) that-

(1) does not comply with, or was involved in a violation of, section

1002, and

(2) is in the custody or control of the violator or has been impounded

under subsection (f).

Section 1010. Arbitration of certain disputes [6]

(a) Scope of Arbitration. Before the date of first distribution in the

United States of a digital audio recording device or a digital audio

interface device, any party manufacturing, importing, or distributing

such device, and any interested copyright party may mutually agree to

binding arbitration for the purpose of determining whether such device

is subject to section 1002, or the basis on which royalty payments for

such device are to be made under section 1003.

(b) Initiation of Arbitration Proceedings. Parties agreeing to such

arbitration shall file a petition with the Librarian of Congress

requesting the commencement of an arbitration proceeding. The petition

may include the names and qualifications of potential arbitrators.

Within 2 weeks after receiving such a petition, the Librarian of

Congress shall cause notice to be published in the Federal Register of

the initiation of an arbitration proceeding. Such notice shall include

the names and qualifications of 3 arbitrators chosen by the Librarian of

Congress from a list of available arbitrators obtained from the American

Arbitration Association or such similar organization as the Librarian of

Congress shall select, and from potential arbitrators listed in the

parties' petition. The arbitrators selected under this subsection shall

constitute an Arbitration Panel.

(c) Stay of Judicial Proceedings. Any civil action brought under section

1009 against a party to arbitration under this section shall, on

application of one of the parties to the arbitration, be stayed until

completion of the arbitration proceeding.

(d) Arbitration Proceeding. The Arbitration Panel shall conduct an

arbitration proceeding with respect to the matter concerned, in

accordance with such procedures as it may adopt. The Panel shall act on

the basis of a fully documented written record. Any party to the

arbitration may submit relevant information and proposals to the Panel.

The parties to the proceeding shall bear the entire cost thereof in such

manner and proportion as the Panel shall direct.

(e) Report to the Librarian of Congress. Not later than 60 days after

publication of the notice under subsection (b) of the initiation of an

arbitration proceeding, the Arbitration Panel shall report to the

Librarian of Congress its determination concerning whether the device

concerned is subject to section 1002, or the basis on which royalty

payments for the device are to be made under section 1003. Such report

shall be accompanied by the written record, and shall set forth the

facts that the Panel found relevant to its determination.

(f) Action by the Librarian of Congress. Within 60 days after receiving

the report of the Arbitration Panel under subsection (e), the Librarian

of Congress shall adopt or reject the determination of the Panel. The

Librarian of Congress shall adopt the determination of the Panel unless

the Librarian of Congress finds that the determination is clearly

erroneous. If the Librarian of Congress rejects the determination of the

Panel, the Librarian of Congress shall, before the end of that 60-day

period, and after full examination of the record created in the

arbitration proceeding, issue an order setting forth the Librarian's

decision and the reasons therefor. The Librarian of Congress shall cause

to be published in the Federal Register the determination of the Panel

and the decision of the Librarian of Congress under this subsection with

respect to the determination (including any order issued under the

preceding sentence).

(g) Judicial Review. Any decision of the Librarian of Congress under

subsection (f) with respect to a determination of the Arbitration Panel

may be appealed, by a party to the arbitration, to the United States

Court of Appeals for the District of Columbia Circuit, within 30 days

after the publication of the decision in the Federal Register. The

pendency of an appeal under this subsection shall not stay the decision

of the Librarian of Congress. The court shall have jurisdiction to

modify or vacate a decision of the Librarian of Congress only if it

finds, on the basis of the record before the Librarian of Congress, that

the Arbitration Panel or the Librarian of Congress acted in an arbitrary

manner. If the court modifies the decision of the Librarian of Congress,

the court shall have jurisdiction to enter its own decision in

accordance with its final judgment. The court may further vacate the

decision of the Librarian of Congress and remand the case for

arbitration proceedings as provided in this section.

Chapter 10 Endnotes

1 The Audio Home Recording Act of 1992 added chapter 10, entitled

"Digital Audio Recording Devices and Media," to title 17. Pub. L. No.

102-563, 106 Stat. 4237.

2 The Copyright Royalty Tribunal Reform Act of 1993 amended section

1004(a)(3) by substituting "Librarian of Congress" in lieu of "Copyright

Royalty Tribunal," where appropriate. Pub. L. No. 103-198, 107 Stat.

2304, 2312.

3 The Copyright Royalty Tribunal Reform Act of 1993 amended section

1005 by striking the last sentence which began "The Register shall

submit to the Copyright Royalty Tribunal." Pub. L. No. 103-198, 107

Stat. 2304, 2312.

4 The Copyright Royalty Tribunal Reform Act of 1993 amended section

1006(c) by substituting "Librarian of Congress" in lieu of "Copyright

Royalty Tribunal," where appropriate. Pub. L. No. 103-198, 107 Stat.

2304, 2312. In 1997, section 1006(b)(1) was amended to insert

"Federation of Television" in lieu of "Federation Television" wherever

it appeared. Pub. L. No. 105-80, 111 Stat. 1529, 1535.

5 The Copyright Royalty Tribunal Reform Act of 1993 amended section

1007 by substituting "Librarian of Congress" in lieu of "Copyright

Royalty Tribunal" or "Tribunal," where appropriate, by amending the

first sentence in subsection (c) and by inserting "the reasonable

administrative costs incurred by the Librarian" in the last sentence of

subsection (c), in lieu of "its reasonable administrative costs." Pub.

L. No. 103-198, 107 Stat. 2304, 2312.

In 1997, section 1007 was amended, in subsection (a)(1), by inserting

"calendar year 1992" in lieu of "the calendar year in which this chapter

takes effect" and, in subsection (b), by inserting "1992" in lieu of

"the year in which this section takes effect," and also in subsection

(b), by inserting "After" in lieu of "Within 30 days after." Pub. L. No.

105-80, 111 Stat. 1529, 1534 and 1535.

6 The Copyright Royalty Tribunal Reform Act of 1993 amended section

1010 by substituting "Librarian of Congress" in lieu of "Copyright

Royalty Tribunal" or "Tribunal," where appropriate, and by inserting

"Librarian's" in lieu of "its." Pub. L. No. 103-198, 107 Stat. 2304,

That Act, which established copyright arbitration royalty panels,

states that "[a]ll royalty rates and all determinations with respect to

the proportionate division of compulsory license fees among copyright

claimants, whether made by the Copyright Royalty Tribunal, or by

voluntary agreement, before the effective date set forth in subsection

(a) [December 17, 1993] shall remain in effect until modified by

voluntary agreement or pursuant to the amendments made by this Act."

Pub. L. No. 103-198, 107 Stat. 2304, 2313.

Chapter 11 [1]

Sound Recordings and Music Videos

Unauthorized fixation and trafficking in sound recordings and

music videos

Section 1101. Unauthorized fixation and trafficking in sound recordings and

music videos

(a) Unauthorized Acts. Anyone who, without the consent of the performer

or performers involved-

(1) fixes the sounds or sounds and images of a live musical performance

in a copy or phonorecord, or reproduces copies or phonorecords of such a

performance from an unauthorized fixation,

(2) transmits or otherwise communicates to the public the sounds or

sounds and images of a live musical performance, or

(3) distributes or offers to distribute, sells or offers to sell, rents

or offers to rent, or traffics in any copy or phonorecord fixed as

described in paragraph (1), regardless of whether the fixations occurred

in the United States,

shall be subject to the remedies provided in sections 502 through 505,

to the same extent as an infringer of copyright.

(b) Definition. As used in this section, the term "traffic in" means

transport, transfer, or otherwise dispose of, to another, as

consideration for anything of value, or make or obtain control of with

intent to transport, transfer, or dispose of.

(c) Applicability. This section shall apply to any act or acts that

occur on or after the date of the enactment of the Uruguay Round

Agreements Act.

(d) State Law Not Preempted. Nothing in this section may be construed to

annul or limit any rights or remedies under the common law or statutes

of any State.

Chapter 11 Endnote

1 In 1994, the Uruguay Round Agreements Act added chapter 11, entitled

"Sound Recordings and Music Videos," to title 17. Pub. L. No. 103-465,

108 Stat. 4809, 4974.

Chapter 12 [1] Copyright Protection and Management Systems

Circumvention of copyright protection systems Integrity of copyright management information Civil remedies Criminal offenses and penalties Savings clause

Section 1201. Circumvention of copyright protection systems [2]

(a) Violations Regarding Circumvention of Technological Measures. (1)(A)

No person shall circumvent a technological measure that effectively

controls access to a work protected under