ANNUAL REPORT OF THE
LIBRARIAN O F CONGRESS
FOR T H E FISCAL,YEAR ENDING
30 SEPTEMBER 1998
LIBRARY O F CONGRESS
WASHINGTON
1999
During fiscal 1998, the Copyright Office advised Congress on national and
international issues; created and maintained the public record of copyright
registrations and recorded documents; administered compulsory licenses and
statutory obligations;furthered the effort to create an automated registration,
recordation, and deposit system; and offered technical, legal, and educational
assistance in the international arena. In addition, increased attention was
given to the security of the materials submitted to the office.
On December 10, the Copyright Office celebrated the one hundredth
anniversary of its establishment as a separate office within the Library and of
the creation of the position of Register of Copyrights. A week-long program
culminated with a celebration that featured Librarian of CongressJames H.
Billington, Register of Copyrights Marybeth Peters, and Pulitzer Prize-winning
poet Anthony Hecht. Chairman Howard Coble (R-N.C.) of the House S u b
committee on Courts and Intellectual Property sent a congratulatory message
stating that the office "has evolved into a vital congressional agency that grants
invaluable domestic and international policy advice and takes part in treaty
negotiations, in cooperation with the Administration."
During the year, the Copyright Ofice received approximately 645,000 claims
and registered 558,645 claims. In all, 14,368 documents were recorded, covering hundreds of thousands of titles. The office forwarded more than 862,000
copies of works-worth more than $25,697,000-to the Library for its collections and exchange programs.
The office met its statutory obligations by handling a large number of
Notices of Intent to Enforce copyrights restored under the Uruguay Round
Agreements Act as the filing period ended for authors from most countries. Approximately 14,000 titles were recorded and published in the Federal
Register, representing 11,848 filings; more than 2,500 claims were examined
for registration.
The office responded to more than 383,000 requests from the public for copyright information; processed filings by cable operators, satellite camers, and
Annual w
ort of the Lihanan of Congress 1998 15
manufacturers and importers of digital audio recording devices and media;
and processed claims to the various royalty pools. More than $153 million in
royalty fees were collected, and the Licensing Division distributed more than
$270,950,509 in royalties.
On October 15, the office launched NewsNet, a free electronic news service
that alerted some 2,500 subscribers to hearings, deadlines for comments, new
and proposed regulations, new publications, and other copyright-related
issues.
The office also improved public service by increasing the number of materials
available on the Copyright Office Web site. During the year, nearly 2 million
people accessed the Web site, and some 520,000 people accessed information
circulars or form letters on-line. Information currently available on the Web
site includes Frequently Asked Questions, an HTML version of the copyright
law, two revised chapters (1600 and 1900) of the Compendium of Copyright O f f e
Practices that were published this fiscal year, all copyright application forms,
new and revised Copyright Office regulations, Copyright Office studies, information circulars, and World Intellectual Property Office (WIPO) documents
and treaties.
Security
The office worked toward mitigating security risks and ensuring that all of its
automated systems would be fully operational in 2000. In February, the mail
room began placing accession stamp labels on compact discs determined to
be high security risks. The office also expanded its security tagging program to
include paperback novels.
The Pitney Bowes Mail Center design package received in February provided
greater workflow efficiencies and contained new technology for introducing,
recording, organizing, and safeguarding submissions to the office. The mail
room was reorganized to implement the package.
The office also improved its "missing items" database to track and locate materials more effectively. The office developed a database tracking system to
locate deposit copies removed from off-site storage facilities for use by the staff
or inspection by the public.
16 Copyright Services
Legislation
The office provided expert assistance to Congress on important copyrightrelated issues, giving policy and technical advice and testifying on legislation.
Assistance was provided on the No Electronic Theft Act, enacted into law on
December 15 (PL 105-147),the Collections of Information Antipiracy Act
(H.R. 2652), and the Vessel Hull Design Protection Act (H.R. 2606).' In a letter to Dr. Billington, Senator Patrick Leahy (D-Vt.) commended the expertise
and advice offered by the office on the Digital Millennium Copyright Act
(DMCA) (PL 105-304).
The Copyright Office and the Congressional Research Service conducted a
joint study on the economic effects of extending the copyright term by twenty
years (to conform to the European Union directive making the term life plus
seventy years). The office considered a proposal requiring proprietors of
works made for hire to pay a fee to obtain the twenty-year extension. The proposal was that money from the fees be used to help fund the National Endowment for the Arts. The office considered the costs and benefits of such a
system and whether this would violate international treaty obligations. In its
report to Senators Christopher Dodd (D-Conn.),Ted Kennedy (D-Mass.), and
Patrick Leahy, the office concluded that the proposal was unlikely to succeed
on several counts and determined that it could violate our Berne Convention
obligations.
At the request of Chairman Coble, the ofice presided over negotiations
among the motion picture industry and the actors, screenwriters, and directors unions. The purpose of the negotiations was to develop a provision guaranteeing the continuing payment of residuals by imposing on transferees of
rights in motion pictures certain existing obligations under collective bargaining agreements. This agreement was added to H.R. 2589, the copyright term
extension bill, which passed the House on March 25, 1998.'
' This bill was enacted into law on October 28, 1998, as Title V of the Digital Millennium Copyright Act, PL 105-304.
Copyright tern legislation was enacted on October 27, 1998, PL 105298. The transfer provision
concerning collective bargaining agreements was enacted into law on October 28,1998, as pan of
Title N of DM-.
Annual &mi ofthe Librarian of C ~ ~ ~ T1998
C S S17
Following the introduction of legislation to implement two 1996 WIPO
treaties, the office assisted both House Subcommittee and Senate Judiciary
Committee members and staff in developing various amendments. One of
the amendments added to the bill was a provision expanding the existing
exemption relating to computer programs in section 117 of the copyright law
to permit the making of an unauthorized copy of a computer program in the
course of maintaining or repairing a computer. The exemption permits only a
copy that is made automatically when a computer is activated and only if the
computer lawfully contains an authorized copy of the program. This provision
was negotiated under the auspices of the Copyright Office at the request of
the House Subcommittee during the 104th Congress.'
At the request of Senators Orrin Hatch (R-Utah),Patrick Leahy, and John
Ashcroft (R-Mo.),the office sponsored two days of negotiations on the issue of
distance education and will subsequently conduct a study on how to promote
this method of learning. The study with recommendations is to be completed
six months after DMCA is e n a ~ t e d . ~
The office assisted the House Subcommittee in enacting legislation to reverse
the decision in La Cienega Music CO. v. 2.2. Top, 44 F.3d 813 (1995), cert. hie4
516 U.S. 927, which would have jeopardized copyright protection for musical
works recorded before 1978.The legislation, enacted on November 13,1997
(PL 105-80),also clarified certain provisions in the Copyright Act and gave the
office the authority to set fees, subject to congressional approval.
As part of the Technical Amendments Act passed in November, Congress
revised the Copyright Office's fee structure and established criteria for adjusting the fees enumerated in section 708 of the copyright law. The revision
authorized the Register to adjust fees to recover a greater percentage of office
costs of providing services. Toward the end of fiscal 1997, the office began a
process to determine the costs of registering claims, recording documents,
and providing other fee-related services. Two consulting firms with expertise
in cost accounting and the new Federal Managerial Cost Accounting Stantl;trtls were hired. An office fee group was established to provide a report with
r~.cc~~~rtrrcndations
on the fees to the Register.
fit* 1 *rillltclclrt
' %a
lit*+i
I<
I ~rlcIll ot DCIIW, enacted into law on October 28, 1998.
I0 i l l \ l ( .,\
-
On July 1, 1998, fees for "discretionary services," including special expedited
handling of claims and full-term storage of deposits, were raised and new fees
were established. New fees included a fee for first and second appeals of office
refusals to register claims or record documents and a fee for processing claims
in secure tests. In A u p t , the office published a Notice of Proposed Fee
Increase and announced a public hearing to be held on October 1,1998. The
fees covered by this rulemaking were registration fees, including basic, supplementary, and renewal; recordation of documents; additional certificates; issuing receipts for mandatory deposits; and conducting and reporting searches of
office records. Two proposals were offered regarding the basic registration
fee. The first alternative tracked fees recommended by the internal office fee
group; the second alternative lowered the fees for individual authors and
adjusted other fees to compensate for income lost through this accommodation. Users of the copyright system were afforded the opportunity to meet with
the Register and to submit written comments before the proposals were
issued.
The legislation provides for adjusting fees to cover costs incurred by the office
for the service and may include an inflationary factor. The fees must also be
fair and equitable and must give due consideration to the objectives of the
copyright system. The office will consider all of the evidence, including public
testimony. The recommended fee schedule accompanied by supporting and
required documentation will be sent to Congress early in 1999 and will take
effect unless Congress overturns the recommendations within 120 days.
Copyright Office Electronic Registration, Recordation, and
Deposit System
The office made significant progress on a major initiative to develop an electronic registration and deposit system known as CORDS. CORDS will facilitate
the copyright registration and deposit process for on-line works, streamline
those registration processes, improve efficiency and internal security, and
provide the Library with copyrighted works in electronic form for its digital
collections.
During the year, the Corporation for National Research Initiatives (CNFU)
continued developing CORDS with support from the Copyright Office and
the Advanced Research Projects Agency, which funds research to refine the
architectural components that can be applied to any registry system. CNFU's
Annual Repml offhcLibrarian of Congnss 1998 19
,
technical work focused on improving the existing CORDS model, making an
operational system that can be maintained by the Library's Information Technology Services office and integrated into dther office operations. Achievements include completing new CORDS client software with template
capability, completing the CORDSformatted regstration certificate, producing software for staff use with an interface to existing cataloging systems, modifylng the software to accommodate batch claims submissions and other types
of subject-matter claims, upgrading staffworkstations, and adapting the system
to handle receipt of "mixed cords" claims (electronic claims with hard copy
deposits).
Testing continued with three previous test partners, and test parameters were
developed for accepting digital dissertations from the UMI Company. Testing
began with claims for study guides received in electronic form from the University of Phoenix, e-journals from the American Geophysical Union and the
American Mathematical Society, and standards from the American National
Standards Institute.
Compulsory Licensing
The Copyright Office administered a number of compulsory licenses, including those for retransmission of broadcast signals by cable systems and satellite
carriers; public performances of sound recordings by digital audio transmis
sions; production and distribution of phonorecords of musical compositions,
including digital phonorecord delivery; public performances of published and
nondramatic musical works byjukeboxes; and use of published nondramatic
musical works and published pictorial, graphic, and sculptural works by broadcasting entities. The office also administered the statutory obligation on the
manufacture and importation of digital audio recording devices and media
(tapes and discs).
Since 1993, when Congress created a system of ad hoc Copyright Arbitration
Royalty Panels (CARPS),the ofice has been charged with reviewing panel
decisions and recommending to the Librarian whether they should be
accepted or rejected. The standard is whether the CARP'S decision is arbitrary
or contrary to law. This year, the Librarian's decision on the distribution of
1990-92 royalty funds collected under the cable compulsory license, 17 U.S.C.
111, was challenged in the United States Court of Appeals for the District of
Columbia Circuit in National Association of Broadcasters v. Librarian of Congress,
20 Copyright Services
146 F. 3d 907 (D.C. Cir. 1998).The appellate court affirmed the Librarian's
decision and noted that decisions of the Librarian made under the CARP
process will be given unusually wide deference and accepted by the court as
long as the Librarian has offered a "factually plausible explanation" for the
decision.
All but one of the final determinations made under the CARP system have
been appealed. Those appealed include a distribution for the 1992-94 Musical
Works Fund of the Digital Audio Home Recording Act (chapter 10 of the
copyright code); an adjustment of the statutory rate for satellite carriers under
section 119, which proved to be extremely controversial and led to efforts in
both houses of Congress to stay the rate increase; and a determination of the
statutory rate to be paid for public performance of digital transmissions of
sound recordings.
Overall, the office's experience with the CARP system has proved costly and
burdensome. Last fall, the House Subcommittee on Courts and Intellectual
Property asked the office to make recommendations to reform or replace the
CARP system. On February 23, the office submitted its report addressing the
deficiencies in the current system and explored five options to improve or
replace it. Those options included (1) improving the existing system by changing some of the qualifications of CARP panelists, extending statutory deadlines, and streamlining small claims procedures; (2) replacing the CARP
system with administrative law judges (ALJs); (3) replacing CARP panels with
non-ALJ presiding judges; (4) replacing the panels with a Copyright Adjudication Board within the Copyright Office; and (5) creating an independent regulatory agency. The office report recommended that Congress establish a
Copyright Adjudication Board within the Copyright Office. This recommendation was incorporated into H.R. 3210, the Copyright Compulsory License
Improvement Act. No action was taken on this bill during fiscal 1998.
International Activities
The office continued to work closely with executive branch agencies on international copyright issues. Either the Register or the Associate Register for Policy and International Affairs participated as members of the U.S. delegations
at WIPO meetings on audiovisual performers' rights, design protection, and
technical cooperation for developing countries, and at World Trade Organization (WTO) meetings and consultations about implementing the Agreement
AnnualRepd ofthe Librarian o J C o n p 1998 21
on Trade-Related Aspects of Intellectual Property Rights (TRIPs). Staff attorneys assisted the U.S. Trade Representative in regional and bilateral negotiations, WTO accessions, and reviews of other countries' laws. The Register,
Associate Register for Policy and International Affairs, and various staff attorneys participated in U.S. Information Agency copyright programs in various
countries.
The office participated in conferences and seminars sponsored by WIPO, the
European Commission's Imprimatur project, and the International Federation of Library Associations. On June 22, the Register gave a speech titled
"Copyright in a Global Networked Environment" at the International Telecommunications Society's annual meeting in Stockholm, Sweden. The following morning, she gave a radio i n t e ~ e w
on challenges of the Internet. In
addition, on May 29, she addressed the International Law Association's sixtyeighth conference in Taipei, Taiwan, regarding the TRIPs agreement and the
new WIPO treaties.
During May 4-7, the office planned a United States informational study
tour for a six-member delegation from the Peoples Republic of China. On
August 5, the office received the Minister of Legal Affairs from the Republic
of Trinidad and Tobago to discuss establishing a copyright unit in her
country.
Secun'v. CRO worked closely with the Office of Security on the completion
of the Library's Security Plan and arranged for congressional staff briefings
and tours relative to this issue. During the year, CRO assisted the director of
security in addressing numerous issues and incidents that generated congressional interest. The office also worked with the Library's oversight committees
to explain the Library's security needs and actions.
Toward the end of the fiscal year, the Library developed a package of critical
security needs for inclusion in an emergency supplemental appropriation.
Consultations were held with the Architect of the Capitol and the Capitol
Police Board. Preparations were made for hearings on security to be held
before the Senate Committee on Rules and Administration on September 24
and October
C o m h t Issues. The 105th Congress considered several major copyright
bills, including proposals relating to the role of the executive branch in intellectual property policy. The Library provided information to congressional
offices on the importance of preserving the Copyright Office's role and s u p
ported amendments to Title 17 that specifically outlined certain functions and
duties of the office. At the end of the fiscal year, the House and Senate were
each considering bills that would affect copyright policy.
Congressid Accountabiliv Act. In fiscal 1998, the Library began to
assess the impact of new federal workforce protection laws on its workforce
and procedures. The Office of Compliance, created by Congress to enforce
the Congressional Accountability Act, issued proposed regulations that would
have gone beyond its authority under the Act and would have conflicted with
procedures already available to Library employees seeking redress for their
rights in the workplace.
The Library drafted a series of responsive comments objecting to the proposed regulations, consulted with other legislative branch agencies that
were potentially affected, and worked directly with the Office of Compliance
staff to clanfy the Library's position. The Office of Compliance withdrew its
' An additional $16.9 million to enhance the security of Libra7 staff, visitors, and facilities was
included in the omnibus yearend spending bill that the president signed into law on October 21.
These funds were part of a $106.8 million package to improve the physical security of the Capitol
complex, including the House and Senate office buildings.
80 Office of the Librarian
APPENDIX A: MAJOR EVENTS AT THE LIBRARY
(during fiscal 1998)
October 6 Dr. Billington unveils at a press conference preliminary plans for commemoration
of Library's Bicentennial on April 24. 2000.
October 7 A fundraising event is held to launch Library's Bicentennial in 2000. Morr than
$800,000 is raised. Guests include General Colin Powell, vice chairman of the event.
October 7 President Clinton signs Ixgislative Branch Appropriations Bill (Public Law
10555), which includes the Library's budget of $376,719,000 for fiscal 1998.
October 8 Producer and filmmaker Nathan Kroll introduces three evenings devoted to films
about major performing artists, beginning with cellist Pablo Casals.
October 9 An evening of Korean classical music hosted by the Asian Division and Korean
Information Center of Washington.
October 9 Poet Laureate Consultant in Poetry (1997-98) Robert Pinsky opens library's fall
literal). season with lecture o n "Digital Culture and the Individual Soul."
October 10 Senator Max Cleland (D-Ga.) delivers keynote address for Disability Employment
Awareness Month.
October 15 Copyright O f i c e launches NplvsNet, a free electronic news service o n copyrightrelated issues.
October 15 poet^ and Literature Center presents Pulitzer Prize-winning poet W. S. Me~win
reading from his work.
October 15 Library celebrates one hundredth birthday of Music Division with "An Evening of
Society Dances and Parlor Amusements from the 1890s," featuring Elizabeth Aldrich's.jonq~til
Street Foundation dancers and Library of Congress Centennial Cotillion Band playing vintage
music from the collections.
October 16 Dr. Billington releases first comprehensive fivevolume study o n present survival
status of American television a n d independent video prod~lction.
October 21 Twentieth anniversary of Center for the Book is celebrated.
October 22 Elena Bonner, human rights activist and widow of Nobel Peace Prize laureate
. h d r e i Sakharov, delivers lecture o n the state of h u ~ l i a nrights in former Soviet Union.
October 22 Film showing of Breaking the Attilude Banier: Learning to Value People d t h DiraMlLs
commemorates Disability Employment Awareness Month.
October 23 Poetry at Noon series presents "Spirits beyond This Realm-Part 1" with discus
sion of translation of Dante's I n f m o by Poet Laureate Consultant in Poetry Robert Pinskv.
October 23 Poetry and Literature Center presents readings by Suzanne Qualls and Peter
Sacks.
112 Appendix A: Major Events at the Libr(q
14. COPYRIGHT REGISTRATIONS
(number of registrations by subject matter, fiscal 1998)
C a t e m of Material
Published
Nondramatic literary works
Monographs and computer-related works
Serials
Serials (non-group)
Group daily newspapers
Group serials
TOTAL, literary works
Unpublished
Total
134,989
54,382
189,371
61,783
2,499
8,320
-
61,783
2,499
8,320
207,591
54,382
261,973
Works of the performing arts, including
musical works, dramatic works,
choreography and pantomimes,
and motion pictures and filmstrips
Works of the visual arts, including tww
dimensional works of fine and graphic
an, sculptural works, technical drawings
and models, photographs, cartographic
works, commercial prints and labels, and
works of the applied arts
Sound recordings
TOTAL
Renewals
Mask work registrations
GRAND TOTAL, all registrations
Documents recorded
Annual Report of the Libmrian of Congress 1998 169
15. COPYRIGHT BUSINESS SUMMARY
(fees recorded, fiscal 1998)
Receipts
Applications for registration
Fees for mask works
Renewals
TOTAL
Fees for recordation of documents
Fees for certifications
Fees for searches
Fees for expedited services
Fees for other services
TOTAL
GRAND TOTAL
Fees Applied to the Appropriation, Fiscal 1998
170 Appendix J: Statistical Tables
Fees
