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U.S. Code as of:
01/19/04
Section 1010. Arbitration of certain disputes
(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 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.
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