Page:Copyright Law Revision (Senate Report No. 94-473).djvu/158

 Expenditures

Section 805 provides that in proceeding for the distribution of royalty fees the compensation of the members of the Tribunal and its other expenses shall be deducted prior to the distribution of the funds. In proceedings for the determination of royalty rates there is authorization for the appropriation of such sums as may be necessary for the compensation of the members and the expenses of the Tribunal.

Effective date of royalty adjustment

The committee strongly believes that the public interest requires that no recommendation of the Tribunal concerning determinations of royalty rates shall become effective until the Congress has had the opportunity to decide whether the proposed determination should be disapproved. Therefore, the Tribunal is required to transmit its decision concerning royalty rates to both Houses of Congress.

Section 807 establishes a procedure, modeled on the Reorganization Act, whereby within a specified ninety-day period of time either House of Congress may adopt a resolution stating in substance that the recommended royalty determination is not favored. If such a resolution is adopted by either House of Congress the adjustment shall not become effective and the Tribunal may not give further consideration to the adjustment of the royalty rate until the expiration of the next period specified in section 802. If neither House adopts a resolution of disapproval, the adjustment of the royalty rate shall take effect on the first day following 90 calendar days after the expiration of the period in which the Congress may adopt a resolution of disapproval.

Efective date of royalty distribution

Section 808 provides that a final determination of the Copyright Royalty Tribunal concerning the distribution of royalty fees pursuant to Sections 111 and 116 becomes effective as to a particular claimant 30 days following the communication to the claimant of written notice of the determination, unless prior to the time an application for judicial review has been filed, and notice of the application has been served upon the Register of Copyrights. If an application for judicial review is filed, the Register is authorized to distribute the royalty fees, but must withhold from distribution such amounts as are directly the subject of the application for judicial review.

Judicial review

It is the review of the Committee that the Copyright Royalty Tribunal affords the most practical and equitable forum for final determinations concerning the distribution of royalty fees among the various claimants. The Committee believes that no useful purpose would be served by providing for a general review of such determinations by the Federal courts, section 809 is modeled on the Federal Arbitration Act and provides that the determinations of the Tribunal shall not be subject to review in any Federal court unless:
 * (1) the determination was procured by corruption, fraud, or undue means;
 * (2) there was evident partiality or corruption in any member of the Tribunal; or
 * (3) any member of the Tribunal was guilty of any misconduct by which the rights of any party were prejudiced.