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recipients of

distance education materials under any distance education exemption;

(6) whether and what types of technological measures can or should be

employed to safeguard against unauthorized access to, and use or

retention of, copyrighted materials as a condition of eligibility for

any distance education exemption, including, in light of developing

technological capabilities, the exemption set out in section 110(2) of

title 17, United States Code;

(7) the extent to which the availability of licenses for the use of

copyrighted works in distance education through interactive digital

networks should be considered in assessing eligibility for any distance

education exemption; and

(8) such other issues relating to distance education through interactive

digital networks that the Register considers appropriate.

SEC. 405. SCOPE OF EXCLUSIVE RIGHTS IN SOUND RECORDINGS;

EPHEMERAL RECORDINGS.

(a) Scope of Exclusive Rights in Sound Recordings.

(5) The amendment made by paragraph (2)(B)(i)(III) of this subsection

shall be deemed to have been enacted as part of the Digital Performance

Right in Sound Recordings Act of 1995, and the publication of notice of

proceedings under section 114(f)(1) of title 17, United States Code, as

in effect upon the effective date of that Act, for the determination of

royalty payments shall be deemed to have been made for the period

beginning on the effective date of that Act and ending on December 1,

2001.

(6) The amendments made by this subsection do not annul, limit, or

otherwise impair the rights that are preserved by section 114 of title

17, United States Code, including the rights preserved by subsections

(c), (d)(4), and (i) of such section.

(c) Scope of Section 112(a) of Title 17 Not Affected.

Nothing in this section or the amendments made by this section shall

affect the scope of section 112(a) of title 17, United States Code, or

the entitlement of any person to an exemption thereunder.

SEC. 406. ASSUMPTION OF CONTRACTUAL OBLIGATIONS RELATED TO-

TRANSFERS OF RIGHTS IN MOTION PICTURES.

(a) In General. Part VI of title 28, United States Code, is amended by

adding at the end the following new chapter:

"CHAPTER 180-ASSUMPTION OF

CERTAIN CONTRACTUAL OBLIGATIONS

"Sec. 4001. Assumption of contractual obligations related to transfers

of rights in motion pictures.

"Sec. 4001. Assumption of contractual obligations related to transfers

of rights in motion pictures

"(a) Assumption of Obligations. (1) In the case of a transfer of

copyright ownership under United States law in a motion picture (as the

terms 'transfer of copyright ownership' and 'motion picture' are defined

in section 101 of title 17) that is produced subject to 1 or more

collective bargaining agreements negotiated under the laws of the United

States, if the transfer is executed on or after the effective date of

this chapter and is not limited to public performance rights, the

transfer instrument shall be deemed to incorporate the assumption

agreements applicable to the copyright ownership being transferred that

are required by the applicable collective bargaining agreement, and the

transferee shall be subject to the obligations under each such

assumption agreement to make residual payments and provide related

notices, accruing after the effective date of the transfer and

applicable to the exploitation of the rights transferred, and any

remedies under each such assumption agreement for breach of those

obligations, as those obligations and remedies are set forth in the

applicable collective bargaining agreement, if-

"(A) the transferee knows or has reason to know at the time of the

transfer that such collective bargaining agreement was or will be

applicable to the motion picture; or

"(B) in the event of a court order confirming an arbitration award

against the transferor under the collective bargaining agreement, the

transferor does not have the financial ability to satisfy the award

within 90 days after the order is issued.

"(2) For purposes of paragraph (1)(A), 'knows or has reason to know'

means any of the following:

"(A) Actual knowledge that the collective bargaining agreement was or

will be applicable to the motion picture.

"(B)(i) Constructive knowledge that the collective bargaining agreement

was or will be applicable to the motion picture, arising from

recordation of a document pertaining to copyright in the motion picture

under section 205 of title 17 or from publication, at a site available

to the public on-line that is operated by the relevant union, of

information that identifies the motion picture as subject to a

collective bargaining agreement with that union, if the site permits

commercially reasonable verification of the date on which the

information was available for access.

"(ii) Clause (i) applies only if the transfer referred to in subsection

(a)(1) occurs-

"(I) after the motion picture is completed, or

"(II) before the motion picture is completed and-

"(aa) within 18 months before the filing of an application for

copyright registration for the motion picture under section 408 of title

17, or

"(bb) if no such application is filed, within 18 months before the

first publication of the motion picture in the United States.

"(C) Awareness of other facts and circumstances pertaining to a

particular transfer from which it is apparent that the collective

bargaining agreement was or will be applicable to the motion picture.

"(b) Scope of Exclusion of Transfers of Public Performance Rights. For

purposes of this section, the exclusion under subsection (a) of

transfers of copyright ownership in a motion picture that are limited to

public performance rights includes transfers to a terrestrial broadcast

station, cable system, or programmer to the extent that the station,

system, or programmer is functioning as an exhibitor of the motion

picture, either by exhibiting the motion picture on its own network,

system, service, or station, or by initiating the transmission of an

exhibition that is carried on another network, system, service, or

station. When a terrestrial broadcast station, cable system, or

programmer, or other transferee, is also functioning otherwise as a

distributor or as a producer of the motion picture, the public

performance exclusion does not affect any obligations imposed on the

transferee to the extent that it is engaging in such functions.

"(c) Exclusion for Grants of Security Interests. Subsection (a) shall

not apply to-

"(1) a transfer of copyright ownership consisting solely of a mortgage,

hypothecation, or other security interest; or

"(2) a subsequent transfer of the copyright ownership secured by the

security interest described in paragraph (1) by or under the authority

of the secured party, including a transfer through the exercise of the

secured party's rights or remedies as a secured party, or by a

subsequent transferee.

"The exclusion under this subsection shall not affect any rights or

remedies under law or contract.

"(d) Deferral Pending Resolution of Bona Fide Dispute.

"A transferee on which obligations are imposed under subsection (a) by

virtue of paragraph (1) of that subsection may elect to defer

performance of such obligations that are subject to a bona fide dispute

between a union and a prior transferor until that dispute is resolved,

except that such deferral shall not stay accrual of any union claims due

under an applicable collective bargaining agreement.

"(e) Scope of Obligations Determined by Private Agreement. Nothing in

this section shall expand or diminish the rights, obligations, or

remedies of any person under the collective bargaining agreements or

assumption agreements referred to in this section.

"(f) Failure to Notify. If the transferor under subsection (a) fails to

notify the transferee under subsection (a) of applicable collective

bargaining obligations before the execution of the transfer instrument,

and subsection (a) is made applicable to the transferee solely by virtue

of subsection (a)(1)(B), the transferor shall be liable to the

transferee for any damages suffered by the transferee as a result of the

failure to notify.

"(g) Determination of Disputes and Claims. Any dispute concerning the

application of subsections (a) through (f) shall be determined by an

action in United States district court, and the court in its discretion

may allow the recovery of full costs by or against any party and may

also award a reasonable attorney's fee to the prevailing party as part

of the costs.

"(h) Study. The Comptroller General, in consultation with the Register

of Copyrights, shall conduct a study of the conditions in the motion

picture industry that gave rise to this section, and the impact of this

section on the motion picture industry. The Comptroller General shall

report the findings of the study to the Congress within 2 years after

the effective date of this chapter."

SEC. 407. EFFECTIVE DATE.

Except as otherwise provided in this title, this title and the

amendments made by this title shall take effect on the date of the

enactment of this Act.

Title V-Protection of Certain Original Designs

SEC. 501. SHORT TITLE.

This Act may be referred to as the "Vessel Hull Design Protection Act".

SEC. 503. CONFORMING AMENDMENTS.

(b) Jurisdictions of District Courts Over Design Actions. (1) Section

1338(c) of title 28, United States Code, is amended by inserting ", and

to exclusive rights in designs under chapter 13 of title 17," after

"title 17".

(2)(A) The section heading for section 1338 of title 28, United States

Code, is amended by inserting "designs," after "mask works,".

(B) The item relating to section 1338 in the table of sections at the

beginning of chapter 85 of title 28, United States Code, is amended by

inserting "designs," after "mask works,".

(c) Place for Bringing Design Actions. (1) Section 1400(a) of title 28,

United States Code, is amended by inserting "or designs" after "mask

works".

(2) The section heading for section 1400 of title 28, United States Code

is amended to read as follows:

"Patents and copyrights, mask works, and designs".

(3) The item relating to section 1400 in the table of sections at the

beginning of chapter 87 of title 28, United States Code, is amended to

read as follows:

"1400. Patents and copyrights, mask works, and designs.".

(d) Actions Against the United States. Section 1498(e) of title 28,

United States Code, is amended by inserting ", and to exclusive rights

in designs under chapter 13 of title 17," after "title 17".

SEC. 504. JOINT STUDY OF THE EFFECT OF THIS TITLE [2]

(a) In General. Not later than November 1, 2003, the Register of

Copyrights and the Commissioner of Patents and Trademarks shall submit

to the Committees on the Judiciary of the Senate and the House of

Representatives a joint report evaluating the effect of the amendments

made by this title.

(b) Elements for Consideration. In carrying out subsection (a), the

Register of Copyrights and the Commissioner of Patents and Trademarks

shall consider-

(1) the extent to which the amendments made by this title has been

effective in suppressing infringement of the design of vessel hulls;

(2) the extent to which the registration provided for in chapter 13 of

title 17, United States Code, as added by this title, has been utilized;

(3) the extent to which the creation of new designs of vessel hulls have

been encouraged by the amendments made by this title;

(4) the effect, if any, of the amendments made by this title on the

price of vessels with hulls protected under such amendments; and

(5) such other considerations as the Register and the Commissioner may

deem relevant to accomplish the purposes of the evaluation conducted

under subsection (a).

SEC. 505. EFFECTIVE DATE. [3]

The amendments made by sections 502 and 503 shall take effect on the

date of the enactment of this Act.

Appendix V Endnotes

1 Part V of the Appendix contains provisions from the Digital

Millennium Copyright Act, Pub. L. No. 105-304, 112 Stat. 2860, that do

not amend title 17 of the United States Code.

2 The Satellite Home Viewer Improvement Act of 1999 amended section

504(a) in its entirety. Pub. L. No. 106-113, 113 Stat. 1501, app. I at

1501A-593.

3 The Intellectual Property and Communications Omnibus Reform Act of

1999 amended section 505 by deleting everything at