[Code of Federal Regulations]
[Title 37, Volume 1]
[Revised as of July 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 37CFR351.3]

[Page 702]
 
              TITLE 37--PATENTS, TRADEMARKS, AND COPYRIGHTS
 
        CHAPTER III--COPYRIGHT ROYALTY BOARD, LIBRARY OF CONGRESS
 
PART 351_PROCEEDINGS--Table of Contents
 
Sec. 351.3  Controversy and further proceedings.

    (a) Declaration of controversy. If a settlement has not been reached 
within the voluntary negotiation period, the Copyright Royalty Judges 
will issue an order declaring that further proceedings are necessary. 
The procedures set forth at Sec. Sec. 351.5, et seq., for formal 
hearings will apply, unless the abbreviated procedures set forth in 
paragraphs (b) and (c) of this section are invoked by the Copyright 
Royalty Judges.
    (b) Small claims in distribution proceedings--(1) General. If, in a 
distribution proceeding, the contested amount of a claim is $10,000 or 
less, the Copyright Royalty Judges shall decide the controversy on the 
basis of the filing of the written direct statement by each participant 
(or participant group filing a joint petition), the response by any 
opposing participant, and one optional reply by a participant who has 
filed a written direct statement.
    (2) Bad faith inflation of claim. If the Copyright Royalty Judges 
determine that a participant asserts in bad faith an amount in 
controversy in excess of $10,000 for the purpose of avoiding a 
determination under the procedure set forth in paragraph (b)(1) of this 
section, the Copyright Royalty Judges shall impose a fine on that 
participant in an amount not to exceed the difference between the actual 
amount distributed and the amount asserted by the participant.
    (c) Paper proceedings--(1) Standard. The procedure under this 
paragraph (c) will be applied in cases in which there is no genuine 
issue of material fact, there is no need for evidentiary hearings, and 
all participants in the proceeding agree in writing to the procedure. In 
the absence of an agreement in writing among all participants, this 
procedure may be applied by the Copyright Royalty Judges either on the 
motion of a party or by the Copyright Royalty Judges sua sponte.
    (2) Procedure. Paper proceedings will be decided on the basis of the 
filing of the written direct statement by the participant (or 
participant group filing a joint petition), the response by any opposing 
participant, and one optional reply by a participant who has filed a 
written direct statement.

[70 FR 30905, May 31, 2005, as amended at 71 FR 53328, Sept. 11, 2006]