UNITED STATES C’~Ul~ff0F APPEALS

FOB DIST&ICT OF C,0LUMBIA CIRCUIT

FINAL FORM

R~C~~RGU~ lENT NOT YET SCHEDULED

STATES COURT OF APPEALS
~OR T~ DISTRICT OF COLUMBIA CIRCUIT

Nos. 07-1123, 07-1168, 07-1172, 07-1173, 07-1174, 07-1177, 07-1178, 07-1179

INTERCOLLEGIATE BROADCAST SYS~

Appellants.
V.

COPYRIGHT ROYALTY BOARI

Appellee,
SOUNDEXCHANGE, INC.,
CLERK
NATIONAL ASSOCIATION OF BROADCASTERS,
Intervenors.

On Appeal from an Order of

The Copyright Royalty Board

SUPPLEMENTAL BRIEF OF INTERVENOR SOUNDEXCHANGE, INC.

MICHAEL J. HUPPE PAUL M. SMITH

SOUNDEXCHANGE, INC. THOMAS J. PERRELLI
1121 Fourteenth Street, N.W., Ste. 700 DAVID A. HANDZO
Washington, D.C. 20005 CRAIG A. COWIE
(202) 640-5880 JENNER 8,: BLOCK LLP
1099 New York Ave., N.W., Suite 900
Washington, D.C. 20001
(202) 639-6000

Counsel for SoundExchange, Inc.

June 23, 2008
 CERTIFICATE AS TO PARTIES, RULINGS, AND RELATED CASES
Pursuant to D.C. Circuit Rule 28(a)(1), Intervenor SoundExchange certifies

as follows:

1. Parties and Amici. All parties and intervenors appearing before the

Copyright Royalty Judges and in this Court are listed in the opening brief for

NonCommercial Broadcasters.

2. Rulings Under Review. The ruling under review is the Digital

Performance Right in Sound Recordings and Ephemeral Recordings, 72 Fed. Reg.

24,084 (May 1, 2007), codified at 37 C.F.R. Part 380, as modified by 72 Fed. Reg.

29,886 (May 30, 2007) ("Order"). Certain appellants also challenge the April 16,

2007, order denying reheating, which is not published.

3. Related Cases. This case has not come before this Court, or any

other court, before, and is a consolidation of the following cases: Nos. 07-1123,

07-1168, 07-1172, 07-1173, 07-1174, 07-1177, 07-1178, and 07-1179. There is

one other pending appeal of a decision by the Copyright Royalty Judges, which

involves some of the same parties: SoundExckange, Inc. v. Librarian of Congress,

No. 08-1078 (D.C. Cir.). SoundExchange is unaware of any other related cases.

4. Deferred Appendix. A deferred appendix will be used, pursuant to

this Court’s Order of November 15, 2007.

 Respectfully submitted,

JENNER & BLOCK LLP

P~uL ~. SMITH
THOMAS J. PERRELLI
DAVID A. HANDZO
CRAIG A. COWIE
JENNER & BLOCK LLP
1099 New York Avenue, N.W.
Suite 900
Washington, D.C. 20001
(202) 639-6000

MICHAEL J. HUPPE
SOUNDEXCHANGE, INC.
1121 Fourteenth Street, N.W.,
Suite 700
Washington, D.C. 20005
(202) 640-5880

Counsel for SoundExchange, Inc.

June 23, 2008

ii
 CORPORATE DISCLOSURE STATEMENT

Pursuant to Rule 26.1 of the Federal Rules of Appellate Procedure, and D.C.

Circuit Rules 26.1 and 28(a)(1)(A), SoundExchange submits the following

corporate disclosure statement:

SoundExchange is an independent, non-profit performance rights

organization, representing the owners of sound-recording copyrights and

performers of those recordings. SoundExchange collects royalties paid pursuant to

statutory licenses under Section 112 and 114 of the Copyright Act, 17 U.S.C.

§ § 112, 114. SoundExchange distributes these royalties to the artists who created

the sound recordings and the owners of the copyrights in those sound recordings.

$oundExchange has not issued any shares or debt securities to the public, and

SoundExchange has no parent companies. SoundExchange has no subsidiaries or

affiliates that have issued any shares or debt securities to the public. No publicly-

held company has a 10% or greater ownership interest in SoundExchange.

Because SoundExchange meets the definition of a trade association as defined in

D.C. Circuit Rule 26.1 (b), it is not required to disclose the names of its members.

iii
 Respectfully submitted,

JENNER & BLOCK LLP

PAU~L~.~SMITH~~~’/(

THOMAS J. PERRELLI
DAVID A. HANDZO
CRAIG A. COWIE
JENNER & BLOCK LLP
1099 New York Avenue, N.W.
Suite 900
Washington, D.C. 20001
(202) 639-6000

MICHAEL J. HUPPE
SOUNDEXCHANGE, IN(.’.
1121 Fourteenth Street, N.W.,
Suite 700
Washington, D.C. 20005
(202) 640-5880

Counsel for SoundExchange, Inc.

June 23,2008

iv
 TABLE OF CONTENTS

CERTIFICATE AS TO PARTIES, RULINGS, AND RELATED CASES ............................. i

CORPORATE DISCLOSURE STATEMENT ......................................................................... iii
TABLE OF CONTENTS ............................................................................................................. v
TABLE OF AUTHORITIES ...................................................................................................... vi
GLOSSARY .................................................................................................................................. ix
STATUTES AND REGULATIONS ........................................................................................... 1
ARGUMENT .................................................................................................................................. 1
I. RLI HAS WAIVED THIS CLAIM .................................................................................. 1
II. THE LIBRARIAN IS A "HEAD OF DEPARTMENT" WHO CAN APPOINT
CRJS .................................................................................................................................... 1
III. ASSUMING ARGUENDO THAT THE APPOINTMENTS ARE
UNCONSTITUTIONAL, THE CRJS’ PRIOR ACTS SHOULD BE GIVEN DE
FACTO VALIDITY .......................................................................................................... 5

V
 TABLE OF AUTHORITIES*

CASES

Bowsher v. Synar, 478 U.S. 714 (1986) ................................................................

3, 4
*Buckley v. Valeo, 424 U.S. 1 (1976) ...............................................................
2, 4, 5

Carlucci v. Doe, 488 U.S. 93 (1988) ........................................................................

4
*Eltra Corp. v. Ringer, 579 F.2d 294 (4th Cir. 1978) ..............................1, 2, 3, 4, 5

Franklin Savings Ass ’n v. Director, Office of Thrift Supervision, 934 F.2d

1127 (10th Cir. 1991) .........................................................................................
5-6
Free Enterprise Fund v. PCAOB, No. 06-217, 2007 WL 891675 (D.D.C.
Mar. 21, 2007), appeal docketed, No. 07-5127 (D.C. Cir. Apr. 18, 2008) ......... 3
Freytag v. Commissioner, 501 U.S. 868 (1991) .......................................................
2
Hechinger v. Metropolitan Washington Airports Authority, 36 F.3d 97 (D.C.
Cir. 1994) .............................................................................................................
5
Ryder v. United States, 515 U.S. 177 (1995) ............................................................
6
*Silver v. USPS, 951 F.2d 1033 (9th Cir. 1991) .......................................................
3
United States v. Olano, 507 U.S. 725 (1993) ............................................................
1

STATUTES AND REGUALTIONS

*2 U.S.C. § 60-1 ........................................................................................................

4
2 U.S.C. §§ 60-130/ ...................................................................................................
4
*2 U.S.C. § 136 .....................................................................................................
2, 4
2 U.S.C. § 437c .........................................................................................................
5
5 U.S.C. § 4802(b) ....................................................................................................
3

* Authorities upon which we chiefly rely are marked with asterisks.

vi
5 U.S.C. app. 1 § l(b)(2) ........................................................................................... 3

15 U.S.C. §41 ....................................................................................................... 2,3

15 U.S.C. § 42 ............................................................................................................ 3

15 U.S.C. § 78d(a) ................................................................................................. 2, 3

15 U.S.C. § 78d(b)(1) ................................................................................................ 3

15 U.S.C. § 721 l(e)(4) .............................................................................................. 3

"17 U.S.C. § 410 ....................................................................................................... 4

17 U.S.C. § 701(a) ..................................................................................................... 4

47 U.S.C. § 151 ......................................................................................................... 2

47 U.S.C. § 154(a) ..................................................................................................... 3

47 U.S.C. § 154(f)(1) ................................................................................................ 3

Act of Feb. 19, 1897, ch. 265, 29 Stat. 538 .............................................................. 4

16 C.F.R. § 1.95 ......................................................................................................... 2

16 C.F.R. § 2.13 ........................................................................................................ 2

16 C.F.R. § 2.20(b)(4) ................................................................................................ 2

16 C.F.R. § 2.33 ........................................................................................................ 2

17 C.F.R. § 200.30-4 ................................................................................................. 2

OTHER AUTHORITIES

Annual Report of the Librarian of Congress 2006, available at:

http://www.libraryofcongress.gov/about/reports/annualreports/fy2OO6.pdf ....... 6

28 Cong. Rec. 5496-507 (May 21, 1896) ................................................................. 4

29 Cong. Rec. 1946 (Feb. 17, 1897) ......................................................................... 4

vii
29 Cong. Rec. 316-19 (Dec. 19, 1897) ..................................................................... 4

viii
 GLOSSARY

The following abbreviations or terms are used in this brief.

CRJs Copyright Royalty Judges

FCC Federal Communications Commission
FEC Federal Election Commission
FTC Federal Trade Commission
Librarian Librarian of Congress
Library Library of Congress
RLI Appellant Royalty Logic, LLC
SEC Securities and Exchange Commission

ix
 STATUTES AND REGULATIONS
The addendum contains all pertinent statutes and regulations.

ARGUMENT
I. RLI HAS WAIVED THIS CLAIM.

This Court should refuse to address Royalty Logic’s ("RLI") argument that

the appointment by the Librarian of Congress ("Librarian") of the Copyright

Royalty Judges ("CRJs") violated the Appointments Clause. RLI admits that it

neither argued this issue to the CRJs, nor raised it in its opening brief. In these

circumstances, an appellant generally has waived the issue. See, e.g., United States

v. Olano, 507 U.S. 725, 731 (1993).

Finding waiver is particularly appropriate here where RLI’s untimely

briefing has prevented the parties from fully addressing a significant constitutional

question and where, as detailed in SoundExchange’s opposition to the motion for

supplemental briefing, RLI points to no compelling justification for its untimely

action.

II. THE LIBRARIAN IS A "HEAD OF DEPARTMENT" WHO CAN

APPOINT CRJS.

The Librarian is the "head" of a "department" within the meaning of the

Appointments Clause. See Eltra Corp. v. Ringer, 579 F.2d 294, 301 (4th Cir.

1978). Therefore, the CRJs’ appointments were constitutional.

 As an initial matter, the Librarian is a properly appointed Officer of the

United States, who has unlimited tenure, reports directly to the President, and

undisputedly is the "head" of the Library of Congress. Id. at 300; 2 U.S.C. §136.

The term "departments" includes all entities that exercise executive

administrative authority and are headed by officials who report directly to the

President. It does not matter whether the entity is formally in the executive branch,

as long as it is accountable to the President and not controlled by Congress or the

judiciary. As the Supreme Court stated, the term "departments" includes agencies

that are in the executive branch or "at least have some connection with that

branch." Buckley v. Valeo, 424 U.S. 1,127 (1976) (per curiam) (emphasis added);

cf Freytag v. Comm ’r, 501 U.S. 868, 887 n.4 (1991) (expressly reserving question

whether the SEC and FTC are "departments").

Numerous agencies are not expressly assigned to any particular branch. See,

e.g., 15 U.S.C. §§41 (FTC), 78d(a) (SEC); 47 U.S.C. §151 (FCC). Nonetheless,

these agencies exercise quasi-executive administrative powers. See, e.g., 16 C.F.R.

§§ 1.95, 2.13, 2.20(b)(4), 2.33 (FTC General Counsel institutes enforcement

proceedings and rules on confidentiality and documentary requests); 17 C.F.R.

§200.30-4 (SEC Director of Enforcement has investigatory and subpoena power).

See generally Buckley, 424 U.S. at 138-39.

2
 Further, like executive branch department heads, the heads of these agencies

are Officers, appointed by the President and confirmed by the Senate. See, e.g., 15

U.S.C. §§41 (FTC), 78d(a) (sEe); 47 U.S.C. §154(a) (FCC). These Officers are

accountable to the President, and Congress may not remove them, except through

impeachment, see Bowsher v. Synar, 478 U.S. 714, 726-27 (1986).

These agencies’ exercise of quasi-executive power, combined with their

accountability to the President and their independence from the other branches, is

sufficient "connection with the executive" to render them "departments" within the

meaning of the Appointments Clause. See, e.g., Silver v. USPS, 951 F.2d 1033,

1038 (9th Cir. 1991) (Postal Service); Free Enterprise Fund v. PCAOB, No. 06-

217, 2007 WL 891675, at *4 (D.D.C. Mar. 21, 2007) (SEC), appeal docketed, No.

07-5127 (D.C. Cir. Apr. 18, 2008). It follows that, under the Constitution, the

heads of these agencies may appoint inferior officers. For example, the SEC

Chairman appoints "such officers.., as may be necessary," including members of

the Public Company Accounting Oversight Board. 5 U.S.C. §4802(b), app. 1

§l(b)(2); 15 U.S.C. §78d(b)(1), §721 l(e)(4); see also 15 U.S.C. §42 (FTC appoints

its Secretary); 47 U.S.C. §154(f)(1) (FCC may "appoint... officers").

The Fourth Circuit followed the same reasoning in correctly holding that the

Library is a "department." Eltra Corp., 579 F.2d at 300-01. The Library, like

these other non-executive agencies, has quasi-executive administrative authority.

For example, the Librarian has rulemaking authority, an executive/administrative

function. Buckley, 424 U.S. at 141 n.177; 2 U.S.C. §136; see also Eltra Corp., 579

F.2d at 301 (Copyright Office exercises quasi-executive power); 17 U.S.C. §410

(registration of copyrights by Register).

And, as with these other agencies, the Librarian is accountable to the

President, 2 U.S.C. § 136, and may not be removed by Congress, see Carlucci v.

Doe, 488 U.S. 93, 95 (1988) (power of removal is incident to power of

appointment absent a specific provision to the contrary). Nor is the Librarian an

Officer or agent of Congress. 2 U.S.C. §60-1; id. § §60-130/(Librarian not listed

among "Officers and Employees" of Congress). Compare Bowsher, 478 U.S. at

732 (Comptroller General is congressional agent because Congress retained

removal authority). In fact, after debating Congress’s constitutional authority to

appoint the Librarian and Register of Copyrights, Congress changed the method

for appointing the Librarian to conform to the Appointments Clause and gave the

Librarian authority to "make[] all the appointments in his department," including

the Register, rejecting attempts to allow Congress to appoint them. 29 Cong. Rec.

1946 (Feb. 17, 1897) (statements of Messrs. Quigg and Bingham); 29 Cong. Rec.

316-19 (Dec. 19, 1897); 28 Cong. Rec. 5496-507 (May 21, 1896); Act of Feb. 19,

1897, ch. 265, 29 Stat. 538; 17 U.S.C. §701(a). Congress retains no significant

control over the Librarian or the Library beyond the appropriations and oversight
functions that it exercises over all government agencies. Indeed, given the

Librarian’s unlimited tenure and at-will status, he arguably has a stronger

connection with the executive branch than other agency heads who may be

removed by the President only for cause.

Given the Library’s quasi-executive powers and its independence from

Congress, its placement within the legislative branch for purposes of

appropriations and its service to Congress through the Congressional Research

Service do not sever its "connection" with the executive branch for Appointments

Clause purposes. Eltra Corp., 579 F.2d at 301 (holding that the Library’s

codification in the legislative branch, its appropriations, and its legislative

functions are "irrelevant" to whether it is a "department"); cf 2 U.S.C. §437c

(FEC, codified in the legislative branch, exercises quasi-executive rulemaking

authority).

III. ASSUMING ARGUENDO THAT THE APPOINTMENTS ARE

UNCONSTITUTIONAL, THE CRJS’ PRIOR ACTS SHOULD BE
GIVEN DE FACTO VALIDITY.

If the Court nevertheless holds the CRJs’ appointments unconstitutional, it

should grant their past actions "de facto validity." Buckley, 424 U.S. at 142.

Courts have applied this doctrine to prevent industry disruption and public harm.

See, e.g., id.; Hechinger v. Metro. Wash. Airports Auth., 36 F.3d 97, 105 (D.C. Cir.

1994); Franklin Say. Ass ’n v. Director, Office of Thrift Supervision, 934 F.2d
1127, 1150 (10th Cir. 1991); see also Ryder v. United States, 515 U.S. 177, 180

(1995) (doctrine protects public from chaos caused by invalidation).

Invalidating the CRJs’ determinations would cause major disruption across

several industries, undoing three years of work, including three extensive

adversarial rate-setting proceedings (over 100 days of testimony) and numerous

other rulemakings. In addition, the invalidation of the CRJs’ prior acts would cast

doubt on the registration of all copyrights for over 100 years (almost 600,000

registrations in 2006 alone~), and all other actions of the Register. In short,

refusing to accord the CRJs’ prior acts de facto validity would cause grave

disruption.

Respectfully submitted,

JENNER & BLOCK LLP

PAUL M MITH
THOMAS J. PEPd~LLI
DAVID A. HANDZO
Cm~aG A. Cowm
JENNER & BLOCK LLP
1099 New York Avenue, N.W.
Suite 900
Washington, D.C. 20001
(202) 639-6000

Annual Report of the Librarian of Congress 2006, at 20, available at:

http://www.libraryofcongress.gov/about/reports/annualreports/fy2OO6.pdf.
 MICHAEL J. HUPPE
SOUNDEXCHANGE, INC.
1121 Fourteenth Street, N.W.,
Suite 700
Washington, D.C. 20005
(202) 640-5880

Counsel for SoundExchange, Inc.

June 23,2008
 CERTIFICATE OF COMPLIANCE WITH TYPE-VOLUME
LIMITATION,
TYPEFACE REQUIREMENTS, AND TYPE STYLE REQUIREMENTS
1. This brief complies with the type-volume limitation of this Court’s

Order of May 30, 2008 because this brief contains 1,196 words, which is within the

1,200 words permitted by the Court.

2. This brief complies with the typeface requirements of Fed. R. App. P.

32(a)(5), as modified by D.C. Cir. R. 32(A)(1), and the type style requirements of

Fed. R. App. P. 32(a)(6) because this brief has been prepared in a proportionately

spaced typeface using Microsoft Word with 14-point Times New Roman font.

June 23,2008

8
 CERTIFICATE OF SERVICE

I hereby certify that, this 23rd day of June, 2008, copies of the foregoing

Brief of Intervenor SoundExchange were served by electronic mail and first-class

United States mail on the following:

James Richmond Hobson William B. Colitre

William R. Malone
Matthew Karl Schettenhelm
Miller & Van Eaton
1155 Connecticut Avenue, NW
Suite 1000
Washington, DC 20036-4306
202-785-0600
Counsel for Intercollegiate Broadcast
System, Incorporated, A Rhode Island
Non-Profit Corporation; Harvard
Radio Broadcasting Company, Inc., a
Massachusetts Eleemosynary
Corporation
Royalty Logic, Inc.
21122 Erwin Street
Woodland Hills, CA 91367
818-955-8900
Kenneth David Freundlich
Schleimer & Freundlich LLP
9100 Wilshire Boulevard
Suite 615 East
Beverly Hills, CA 90212
310-273-9807
Counsel for Royalty Logic, LLC

David D. Oxenford, Jr. Robert S. Schwartz

Ronald Gary London Seth David Greenstein
Davis Wright Tremaine LLP Constantine Cannon, PC
1919 Pennsylvania Avenue, NW ! 627 Eye Street, NW
Suite 200 10th Floor
Washington, DC 20006-3402 Washington, DC 20006
202-973-4200 202-204-3508

Counsel for AccuRadio, LLC; Counsel for College Broadcasters, Inc.

Digitally Imported, Inc.; Radioio;
Radio; Paradise, Inc.

9
Jonathan S. Massey David A. Hickerson
Law Office of Jonathan S. Massey Weil, Gotshal & Manges
7504 Oldchester Road 1501 K Street, NW
Bethesda, MD 20817 Suite 100
301-915-0990 Washington, DC 20005
202-682-7000
Counsel for Digital Media Association
Kenneth L. Steinthal
David Taylor
Weil, Gotshal & Manges, LLP
201 Redwood Shores Parkway
Redwood Shores, CA 94065
650-802-3000

Counsel for Digital Media Association

and National Public Radio, Inc.
Bruce Gary Joseph Carter Glasgow Phillips
Karyn Kay Ablin Jennifer Beth Tatel
Wiley Rein LLP James P. Young
1776 K Street, NW Raymond Clark Wadlow
11 th Floor Sidley Austin LLP
Washington, DC 20006-2359 1501 K Street, NW
202-719-7000 Washington, DC 20005
202-736-8000
Counsel for National Religious
Broadcasters, Noncommercial Music Counsel for National Religious
License Committee Broadcasters, Music License Committee;
Bonneville International Corp.; National
Association of Broadcasters

10
Scott R. McIntosh
Room 7259
U.S. Department of Justice
(DO J) Civil Division, Appellate
950 Pennsylvania Avenue, NW
Washington, DC 20530-0001
202-514-4052

Mark Reiling Freeman

202-514-2161
Room 7228
U.S. Department of Justice
(DO J) Office of the Solicitor General
950 Pennsylvania Avenue, NW
Washington, DC 20530
202-514-2001

Counsel for Copyright Royalty Board

11
ADDENDUM
 INDEX
2 U.S.C. § 60-1 ................................................................................................... S.A.1

S.A.2
2 U.S.C. § 136 ....................................................................................................

S.A.3
2 U.S.C. § 437c ..................................................................................................

5 U.S.C. § 4802 ..................................................................................................

S.A.7

5 U.S.C. App. 1 ..................................................................................................

S.A.8

S.A.10
15 U.S.C. § 41 ..................................................................................................

S.A.I 1
15 U.S.C. § 42 ..................................................................................................

S.A.12
15 U.S.C. § 78d .................................................................................................

S.A.15
15 U.S.C. § 7211 ..............................................................................................

S.A.21
17 U.S.C. § 410 ................................................................................................

17 U.S.C. § 701 ................................................................................................

S.A.22

47 U.S.C. § 151 ................................................................................................

S.A.24

47 U.S.C. § 154 ................................................................................................

S.A.25

16 C.F.R. § 1.95 ...............................................................................................

S.A.26

16 C.F.R. § 2. ! 3 ...............................................................................................
S.A.27

16 C.F.R. § 2.20 ...............................................................................................

S.A.28

16 C.F.R. § 2.33 ...............................................................................................

S.A.31

S.A.32
17 C.F.R. § 200.30-4 ........................................................................................
2 U.S.C. § 60-1

§ 60-1. Authority of officers of Congress over Congressional employees

(a) Qualifications determinations; removal and discipline

Each officer of the Congress having responsibility for the supervision of

employees, including employees appointed upon recommendation of Members of
Congress, shall have authority--

(1) to determine, before the appointment of any individual as an employee

under the supervision of that officer of the Congress, whether that individual
possesses the qualifications necessary for the satisfactory performance of the
duties and responsibilities to be assigned to him; and

(2) to remove or otherwise discipline any employee under his supervision.

(b) "Officer of the Congress" defined

As used in this section, the term "officer of the Congress" means--

(1) an elected officer of the Senate or House of Representatives who is not a

Member of the Senate or House; and

(2) The Architect of the Capitol.

S.A. 1
§ 136. Librarian of Congress; appointment; rules and regulations

The Librarian of Congress shall be appointed by the President, by and with the
advice and consent of the Senate. He shall make rules and regulations for the
government of the Library.

S.A.2
2 U.S.C. § 437c

§ 437c. Federal Election Commission

(a) Establishment; membership; term of office; vacancies; qualifications;

compensation; chairman and vice chairman

(1) There is established a commission to be known as the Federal Election

Commission. The Commission is composed of the Secretary of the Senate and
the Clerk of the House of Representatives or their designees, ex officio and
without the right to vote, and 6 members appointed by the President, by and
with the advice and consent of the Senate. No more than 3 members of the
Commission appointed under this paragraph may be affiliated with the same
political party.

(2)(A) Members of the Commission shall serve for a single term of 6 years,
except that of the members first appointed--

(i) two of the members, not affiliated with the same political party, shall
be appointed for terms ending on April 30, 1977;

(ii) two of the members, not affiliated with the same political party, shall
be appointed for terms ending on April 30, 1979; and

(iii) two of the members, not affiliated with the same political party, shall
be appointed for terms ending on April 30, 1981.

(B) A member of the Commission may serve on the Commission after the
expiration of his or her term until his or her successor has taken office as a
member of the Commission.

(C) An individual appointed to fill a vacancy occurring other than by the

expiration of a term of office shall be appointed only for the unexpired term
of the member he or she succeeds.

(D) Any vacancy occurring in the membership of the Commission shall be

filled in the same manner as in the case of the original appointment.

(3) Members shall be chosen on the basis of their experience, integrity,

impartiality, and good judgment and members (other than the Secretary of the
S.A.3
 Senate and the Clerk of the House of Representatives) shall be individuals who,
at the time appointed to the Commission, are not elected or appointed officers
or employees in the executive, legislative, or judicial branch of the Federal
Government. Such members of the Commission shall not engage in any other
business, vocation, or employment. Any individual who is engaging in any
other business, vocation, or employment at the time of his or her appointment to
the Commission shall terminate or liquidate such activity no later than 90 days
after such appointment.

(4) Members of the Commission (other than the Secretary of the Senate and the
Clerk of the House of Representatives) shall receive compensation equivalent to
the compensation paid at level IV of the Executive Schedule (section 5315 of
Title 5).

(5) The Commission shall elect a chairman and a vice chairman from among its
members (other than the Secretary of the Senate and the Clerk of the House of
Representatives) for a term of one year. A member may serve as chairman only
once during any term of office to which such member is appointed. The
chairman and the vice chairman shall not be affiliated with the same political
party. The vice chairman shall act as chairman in the absence or disability of the
chairman or in the event of a vacancy in such office.

(b) Administration, enforcement, and formulation of policy; exclusive jurisdiction

of civil enforcement; Congressional authorities or functions with respect to
elections for Federal office

(1) The Commission shall administer, seek to obtain compliance with, and
formulate policy with respect to, this Act and chapter 95 and chapter 96 of Title
26. The Commission shall have exclusive jurisdiction with respect to the civil
enforcement of such provisions.

(2) Nothing in this Act shall be construed to limit, restrict, or diminish any
investigatory, informational, oversight, supervisory, or disciplinary authority or
function of the Congress or any committee of the Congress with respect to
elections for Federal office.

(c) Voting requirements; delegation of authorities

All decisions of the Commission with respect to the exercise of its duties and
powers under the provisions of this Act shall be made by a majority vote of the
S,A.4
members of the Commission. A member of the Commission may not delegate to
any person his or her vote or any decisionmaking authority or duty vested in the
Commission by the provisions of this Act, except that the affirmative vote of 4
members of the Commission shall be required in order for the Commission to take
any action in accordance with paragraph (6), (7), (8), or (9) of section 437d(a) of
this title or with chapter 95 or chapter 96 of Title 26.

(d) Meetings

The Commission shall meet at least once each month and also at the call of any
member.

(e) Rules for conduct of activities; judicial notice of seal; principal office

The Commission shall prepare written rules for the conduct of its activities, shall
have an official seal which shall be judicially noticed, and shall have its principal
office in or near the District of Columbia (but it may meet or exercise any of its
powers anywhere in the United States).

(f) Staff director and general counsel; appointment and compensation; appointment
and compensation of personnel and procurement of intermittent services by staff
director; use of assistance, personnel, and facilities of Federal agencies and
departments; counsel for defense of actions

(1) The Commission shall have a staff director and a general counsel who shall
be appointed by the Commission. The staff director shall be paid at a rate not to
exceed the rate of basic pay in effect for level IV of the Executive Schedule (5
U.S.C. 5315). The general counsel shall be paid at a rate not to exceed the rate
of basic pay in effect for level V of the Executive Schedule (5 U.S.C. 5316).
With the approval of the Commission, the staff director may appoint and fix the
pay of such additional personnel as he or she considers desirable without regard
to the provisions of Title 5 governing appointments in the competitive service.

(2) With the approval of the Commission, the staff director may procure
temporary and intermittent services to the same extent as is authorized by
section 3109(b) of Title 5, but at rates for individuals not to exceed the daily
equivalent of the annual rate of basic pay in effect for grade GS-15 of the
General Schedule (5 U.S.C. 5332).

S.A.5
(3) In carrying out its responsibilities under this Act, the Commission shall, to
the fullest extent practicable, avail itself of the assistance, including personnel
and facilities of other, agencies and departments of the United States. The heads
of such agencies and departments may make available to the Commission such
personnel, facilities, and other assistance, with or without reimbursement, as the
Commission may request.

(4) Notwithstanding the provisions of paragraph (2), the Commission is

authorized to appear in and defend against any action instituted under this Act,
either (A) by attorneys employed in its office, or (B) by counsel whom it may
appoint, on a temporary basis as may be necessary for such purpose, without
regard to the provisions of Title 5 governing appointments in the competitive
service, and whose compensation it may fix without regard to the provisions of
chapter 51 and subchapter III of chapter 53 of such title. The compensation of
counsel so appointed on a temporary basis shall be paid out of any funds
otherwise available to pay the compensation of employees of the Commission.

S.A.6
5 U.S.C. § 4802

§ 4802. Securities and Exchange Commission

(a) In this section, the term "Commission" means the Securities and Exchange
Commission.

(b) The Commission may appoint and fix the compensation of such officers,
attorneys, economists, examiners, and other employees as may be necessary for
carrying out its functions under the securities laws as defined under section 3 of the
Securities Exchange Act of 1934 (15 U.S.C. 78c).

(c) Rates of basic pay for all employees of the Commission may be set and
adjusted by the Commission without regard to the provisions of chapter 51 or
subchapter III of chapter 53.

(d) The Commission may provide additional compensation and benefits to

employees of the Commission if the same type of compensation or benefits are
then being provided by any agency referred to under section 1206 of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1833b)
or, if not then being provided, could be provided by such an agency under
applicable provisions of law, rule, or regulation. In setting and adjusting the total
amount of compensation and benefits for employees, the Commission shall consult
with, and seek to maintain comparability with, the agencies referred to under
section 1206 of the Financial Institutions Reform, Recovery, and Enforcement Act
of 1989 (12 U.S.C. 1833b).

(e) The Commission shall consult with the Office of Personnel Management in the
implementation of this section.

(f) This section shall be administered consistent with merit system principles.

S.A.7
5 U.S.C. APP. 1 REORG. PLAN 10 1950

Appendix 1. Reorganization Plans2

REORGANIZATION PLAN NO. 10 OF 1950

<Elf. May 24, 1950, 15 F.R. 3175, 64 Stat. 1265>

Prepared by the President and transmitted to the Senate and the House of
Representatives in Congress assembled, March 13, 1950, pursuant to the
provisions of the Reorganization Act of 1949, approved June 20, 1949 [see section
901 et seq. of this title].

SECURITIES AND EXCHANGE COMMISSION

Section 1. Transfer of functions to the Chairman. (a) Subject to the provisions of

subsection (b) of this section there are hereby transferred from the Securities and
Exchange Commission, hereinafter referred to as the Commission, to the Chairman
of the Commission, hereinafter referred to as the Chairman, the executive and
administrative functions of the Commission, including functions of the
Commission with respect to (1) the appointment and supervision of personnel
employed under the Commission, (2) the distribution of business among such
personnel and among administrative units of the Commission, and (3) the use and
expenditure of funds.

(b)(1) In carrying out any of his functions under the provisions of this section the
Chairman shall be governed by general policies of the Commission and by such
regulatory decisions, findings, and determinations as the Commission may by law
be authorized to make.

(2) The appointment by the Chairman of the heads of major administrative units
under the Commission shall be subject to the approval of the Commission.

(3) Personnel employed regularly and full time in the immediate offices of
Commissioners other than the Chairman shall not be affected by the provisions of
this reorganization plan.

2 Number and order of Appendixes editorially supplied.

S.A.8
(4) There are hereby reserved to the Commission its functions with respect to
revising budget estimates and with respect to determining upon the distribution of
appropriated funds according to maj or programs and purposes.

Sec. 2. Performance of transferred functions. The Chairman may from time to time
make such provisions as he shall deem appropriate authorizing the performance by
any officer, employee, or administrative unit under his jurisdiction of any function
transferred to the Chairman by the provisions of section 1 of this reorganization
plan.

Sec. 3. Designation of Chairman. The functions of the Commission with respect to

choosing a Chairman from among the Commissioners composing the Commission
are hereby transferred to the President.

MESSAGE OF THE PRESIDENT

To the Congress of the United States:

I transmit herewith Reorganization Plan No. 10 of 1950, prepared in accordance

with the Reorganization Act of 1949 and providing for reorganizations in the
Securities and Exchange Commission. My reasons for transmitting this plan are
stated in an accompanying general message.

After investigation I have found and hereby declare that each reorganization
included in Reorganization Plan No. 10 of 1950 is necessary to accomplish one or
more of the purposes set forth in section 2(a) of the Reorganization Act of 1949.

The taking effect of the reorganizations included in this plan may not in itself
result in substantial immediate savings. However, many benefits in improved
operations are probable during the next years which will result in a reduction in
expenditures as compared with those that would be otherwise necessary. An
itemization of these reductions in advance of actual experience under this plan is
not practicable.

HARRY S. TRUMAN.

THE WHITE HOUSE, March 13, 1950.

S.A.9
15 U.S.C. § 41

§ 41. Federal Trade Commission established; membership; vacancies; seal

A commission is created and established, to be known as the Federal Trade

Commission (hereinafter referred to as the Commission), which shall be composed
of five Commissioners, who shall be appointed by the President, by and with the
advice and consent of the Senate. Not more than three of the Commissioners shall
be members of the same political party. The first Commissioners appointed shall
continue in office for terms of three, four, five, six, and seven years, respectively,
from September 26, 1914, the term of each to be designated by the President, but
their successors shall be appointed for terms of seven years, except that any person
chosen to fill a vacancy shall be appointed only for the unexpired term of the
Commissioner whom he shall succeed: Provided, however, That upon the
expiration of his term of office a Commissioner shall continue to serve until his
successor shall have been appointed and shall have qualified. The President shall
choose a chairman from the Commission’s membership. No Commissioner shall
engage in any other business, vocation, or employment. Any Commissioner may
be removed by the President for inefficiency, neglect of duty, or malfeasance in
office. A vacancy in the Commission shall not impair the right of the remaining
Commissioners to exercise all the powers of the Commission.

The Commission shall have an official seal, which shall be judicially noticed.

S.A.10
15 U.S.C. § 42

§ 42. Employees; expenses

Each Commissioner shall receive a salary, payable in the same manner as the
salaries of the judges of the courts of the United States. The Commission shall
appoint a secretary, who shall receive a salary, and it shall have authority to
employ and fix the compensation of such attorneys, special experts, examiners,
clerks, and other employees as it may from time to time find necessary for the
proper performance of its duties and as may be from time to time appropriated for
by Congress.

With the exception of the secretary, a clerk to each Commissioner, the attorneys,
and such special experts and examiners as the Commission may from time to time
find necessary for the conduct of its work, all employees of the Commission shall
be a part of the classified civil service, and shall enter the service under such rules
and regulations as may be prescribed by the Commission and by the Director of the
Office of Personnel Management.

All of the expenses of the Commission, including all necessary expenses for
transportation incurred by the Commissioners or by their employees under their
orders, in making any investigation, or upon official business in any other places
than in the city of Washington, shall be allowed and paid on the presentation of
itemized vouchers therefor approved by the Commission.

Until otherwise provided by law, the Commission may rent suitable offices for its
use.

The Government Accountability Office shall receive and examine all accounts of
expenditures of the Commission.

S.A.11
15 U.S.C. § 78d

§ 78d. Securities and Exchange Commission

(a) Establishment; composition; limitations on commissioners; terms of office

There is hereby established a Securities and Exchange Commission (hereinafter

referred to as the "Commission") to be composed of five commissioners to be
appointed by the President by and with the advice and consent of the Senate. Not
more than three of such commissioners shall be members of the same political
party, and in making appointments members of different political parties shall be
appointed alternately as nearly as may be practicable. No commissioner shall
engage in any other business, vocation, or employment than that of serving as
commissioner, nor shall any commissioner participate, directly or indirectly, in any
stock-market operations or transactions of a character subject to regulation by the
Commission pursuant to this chapter. Each commissioner shall hold office for a
term of five years and until his successor is appointed and has qualified, except that
he shall not so continue to serve beyond the expiration of the next session of
Congress subsequent to the expiration of said fixed term of office, and except (1)
any commissioner appointed to fill a vacancy occurring prior to the expiration of
the term for which his predecessor was appointed shall be appointed for the
remainder of such term, and (2) the terms of office of the commissioners first
taking office after June 6, 1934, shall expire as designated by the President at the
time of nomination, one at the end of one year, one at the end of two years, one at
the end of three years, one at the end of four years, and one at the end of five years,
after June 6, 1934.

(b) Appointment and compensation of staff and leasing authority

(1) Appointment and compensation

The Commission shall appoint and compensate officers, attorneys, economists,

examiners, and other employees in accordance with section 4802 of Title 5.

(2) Reporting of information

In establishing and adjusting schedules of compensation and benefits for

officers, attorneys, economists, examiners, and other employees of the
Commission under applicable provisions of law, the Commission shall inform
the heads of the agencies referred to under section 1833b of Title 12 and
S.A.12
 Congress of such compensation and benefits and shall seek to maintain
comparability with such agencies regarding compensation and benefits.

(3) Leasing authority

Notwithstanding any other provision of law, the Commission is authorized to

enter directly into leases for real property for office, meeting, storage, and such
other space as is necessary to carry out its functions, and shall be exempt from
any General Services Administration space management regulations or
directives.

(c) Acceptance of travel support for Commission activities from non-Federal

sources; regulations

Notwithstanding any other provision of law, in accordance with regulations which

the Commission shall prescribe to prevent conflicts of interest, the Commission
may accept payment and reimbursement, in cash or in kind, from non-Federal
agencies, organizations, and individuals for travel, subsistence, and other necessary
expenses incurred by Commission members and employees in attending meetings
and conferences concerning the functions or activities of the Commission. Any
payment or reimbursement accepted shall be credited to the appropriated funds of
the Commission. The amount of travel, subsistence, and other necessary expenses
for members and employees paid or reimbursed under this subsection may exceed
per diem amounts established in official travel regulations, but the Commission
may include in its regulations under this subsection a limitation on such amounts.

(d) Acceptance of relocation expenses from former employers by professional

fellows program participants

Notwithstanding any other provision of law, former employers of participants in

the Commission’s professional fellows programs may pay such participants their
actual expenses for relocation to Washington, District of Columbia, to facilitate
their participation in such programs, and program participants may accept such
payments.

(e) Fee payments

Notwithstanding any other provision of law, whenever any fee is required to be

paid to the Commission pursuant to any provision of the securities laws or any
other law, the Commission may provide by rule that such fee shall be paid in a
S.A.13
manner other than in cash and the Commission may also specify the time that such
fee shall be determined and paid relative to the filing of any statement or document
with the Commission.

(f) Reimbursement of expenses for assisting foreign securities authorities

Notwithstanding any other provision of law, the Commission may accept payment
and reimbursement, in cash or in kind, from a foreign securities authority, or made
on behalf of such authority, for necessary expenses incurred by the Commission,
its members, and employees in carrying out any investigation pursuant to section
78u(a)(2) of this title or in providing any other assistance to a foreign securities
authority. Any payment or reimbursement accepted shall be considered a
reimbursement to the appropriated funds of the Commission.

S.A.14
§ 7211. Establishment; administrative provisions

(a) Establishment of Board

There is established the Public Company Accounting Oversight Board, to oversee

the audit of public companies that are subject to the securities laws, and related
matters, in order to protect the interests of investors and further the public interest
in the preparation of informative, accurate, and independent audit reports for
companies the securities of which are sold to, and held by and for, public investors.
The Board shall be a body corporate, operate as a nonprofit corporation, and have
succession until dissolved by an Act of Congress.

(b) Status

The Board shall not be an agency or establishment of the United States

Government, and, except as otherwise provided in this Act, shall be subject to, and
have all the powers conferred upon a nonprofit corporation by, the District of
Columbia Nonprofit Corporation Act. No member or person employed by, or agent
for, the Board shall be deemed to be an officer or employee of or agent for the
Federal Government by reason of such service.

(c) Duties of the Board

The Board shall, subject to action by the Commission under section 7217 of this
title, and once a determination is made by the Commission under subsection (d) of
this section--

(1) register public accounting firms that prepare audit reports for issuers, in
accordance with section 7212 of this title;

(2) establish or adopt, or both, by rule, auditing, quality control, ethics,

independence, and other standards relating to the preparation of audit reports
for issuers, in accordance with section 7213 of this title;

(3) conduct inspections of registered public accounting firms, in accordance

with section 7214 of this title and the rules of the Board;

S.A.15
 (4) conduct investigations and disciplinary proceedings concerning, and impose
appropriate sanctions where justified upon, registered public accounting firms
and associated persons of such firms, in accordance with section 7215 of this
title;

(5) perform such other duties or functions as the Board (or the Commission, by
rule or order) determines are necessary or appropriate to promote high
professional standards among, and improve the quality of audit services offered
by, registered public accounting firms and associated persons thereof, or
otherwise to carry out this Act, in order to protect investors, or to further the
public interest;

(6) enforce compliance with this Act, the rules of the Board, professional
standards, and the securities laws relating to the preparation and issuance of
audit reports and the obligations and liabilities of accountants with respect
thereto, by registered public accounting firms and associated persons thereof;
and

(7) set the budget and manage the operations of the Board and the staff of the
Board.

(d) Commission determination

The members of the Board shall take such action (including hiring of staff,
proposal of rules, and adoption of initial and transitional auditing and other
professional standards) as may be necessary or appropriate to enable the
Commission to determine, not later than 270 days after July 30, 2002, that the
Board is so organized and has the capacity to carry out the requirements of this
subchapter, and to enforce compliance with this subchapter by registered public
accounting firms and associated persons thereof. The Commission shall be
responsible, prior to the appointment of the Board, for the planning for the
establishment and administrative transition to the Board’s operation.

(e) Board membership

(1) Composition

The Board shall have 5 members, appointed from among prominent individuals
of integrity and reputation who have a demonstrated commitment to the
interests of investors and the public, and an understanding of the responsibilities
S.A.16
for and nature of the financial disclosures required of issuers under the
securities laws and the obligations of accountants with respect to the
preparation and issuance of audit reports with respect to such disclosures.

(2) Limitation

Two members, and only 2 members, of the Board shall be or have been
certified public accountants pursuant to the laws of 1 or more States, provided
that, if 1 of those 2 members is the chairperson, he or she may not have been a
practicing certified public accountant for at least 5 years prior to his or her
appointment to the Board.

(3) Full-time independent service

Each member of the Board shall serve on a full-time basis, and may not,
concurrent with service on the Board, be employed by any other person or
engage in any other professional or business activity. No member of the Board
may share in any of the profits of, or receive payments from, a public
accounting firm (or any other person, as determined by rule of the
Commission), other than fixed continuing payments, subject to such conditions
as the Commission may impose, under standard arrangements for the retirement
of members of public accounting firms.

(4) Appointment of Board members

(A) Initial Board

Not later than 90 days after July 30, 2002, the Commission, after
consultation with the Chairman of the Board of Governors of the Federal
Reserve System and the Secretary of the Treasury, shall appoint the
chairperson and other initial members of the Board, and shall designate a
term of service for each.

(B) Vacancies

A vacancy on the Board shall not affect the powers of the Board, but shall be
filled in the same manner as provided for appointments under this section.

(5) Term of service

S.A.17
 (A) In general

The term of service of each Board member shall be 5 years, and until a
successor is appointed, except that--

(i) the terms of office of the initial Board members (other than the
chairperson) shall expire in annual increments, 1 on each of the first 4
anniversaries of the initial date of appointment; and

(ii) any Board member appointed to fill a vacancy occurring before the
expiration of the term for which the predecessor was appointed shall be
appointed only for the remainder of that term.

(B) Term limitation

No person may serve as a member of the Board, or as chairperson of the

Board, for more than 2 terms, whether or not such terms of service are
consecutive.

(6) Removal from office

A member of the Board may be removed by the Commission from office, in

accordance with section 7217(d)(3) of this title, for good cause shown before
the expiration of the term of that member.

(f) Powers of the Board

In addition to any authority granted to the Board otherwise in this Act, the Board
shall have the power, subject to section 7217 of this title--

(1) to sue and be sued, complain and defend, in its corporate name and through
its own counsel, with the approval of the Commission, in any Federal, State, or
other court;

(2) to conduct its operations and maintain offices, and to exercise all other
rights and powers authorized by this Act, in any State, without regard to any
qualification, licensing, or other provision of law in effect in such State (or a
political subdivision thereof);

S.A.18
 (3) to lease, purchase, accept gifts or donations of or otherwise acquire,
improve, use, sell, exchange, or convey, all of or an interest in any property,
wherever situated;

(4) to appoint such employees, accountants, attorneys, and other agents as may
be necessary or appropriate, and to determine their qualifications, define their
duties, and fix their salaries or other compensation (at a level that is comparable
to private sector self-regulatory, accounting, technical, supervisory, or other
staff or management positions);

(5) to allocate, assess, and collect accounting support fees established pursuant
to section 7219 of this title, for the Board, and other fees and charges imposed
under this subchapter; and

(6) to enter into contracts, execute instruments, incur liabilities, and do any and
all other acts and things necessary, appropriate, or incidental to the conduct of
its operations and the exercise of its obligations, rights, and powers imposed or
granted by this subchapter.

(g) Rules of the board

The rules of the Board shall, subject to the approval of the Commission--

(1) provide for the operation and administration of the Board, the exercise of its
authority, and the performance of its responsibilities under this Act;

(2) permit, as the Board determines necessary or appropriate, delegation by the

Board of any of its functions to an individual member or employee of the
Board, or to a division of the Board, including functions with respect to hearing,
determining, ordering, certifying, reporting, or otherwise acting as to any
matter, except that--

(A) the Board shall retain a discretionary right to review any action pursuant
to any such delegated function, upon its own motion;

(B) a person shall be entitled to a review by the Board with respect to any
matter so delegated, and the decision of the Board upon such review shall be
deemed to be the action of the Board for all purposes (including appeal or
review thereof); and

S.A.19
 (C) if the right to exercise a review described in subparagraph (A) is
declined, or if no such review is sought within the time stated in the rules of
the Board, then the action taken by the holder of such delegation shall for all
purposes, including appeal or review thereof, be deemed to be the action of
the Board;

(3) establish ethics rules and standards of conduct for Board members and staff,
including a bar on practice before the Board (and the Commission, with respect
to Board-related matters) of 1 year for former members of the Board, and
appropriate periods (not to exceed 1 year) for former staff of the Board; and

(4) provide as otherwise required by this Act.

(h) Annual report to the Commission

The Board shall submit an annual report (including its audited financial statements)
to the Commission, and the Commission shall transmit a copy of that report to the
Committee on Banking, Housing, and Urban Affairs of the Senate, and the
Committee on Financial Services of the House of Representatives, not later than 30
days after the date of receipt of that report by the Commission.

S.A.20
17 U.S.C. § 410

§ 410. Registration of claim and issuance of certificate

(a) When, after examination, the Register of Copyrights determines that, in

accordance with the provisions of this title, the material deposited constitutes
copyrightable subject matter and that the other legal and formal requirements of
this title have been met, the Register shall register the claim and issue to the
applicant a certificate of registration under the seal of the Copyright Office. The
certificate shall contain the information given in the application, together with the
number and effective date of the registration.

(b) In any case in which the Register of Copyrights determines that, in accordance
with the provisions of this title, the material deposited does not constitute
copyrightable subject matter or that the claim is invalid for any other reason, the
Register shall refuse registration and shall notify the applicant in writing of the
reasons for such refusal.

(c) In any judicial proceedings the certificate of a registration made before or

within five years after first publication of the work shall constitute prima facie
evidence of the validity of the copyright and of the facts stated in the certificate.
The evidentiary weight to be accorded the certificate of a registration made
thereafter shall be within the discretion of the court.

(d) The effective date of a copyright registration is the day on which, an

application, deposit, and fee, which are later determined by the Register of
Copyrights or by a court of competent jurisdiction to be acceptable for registration,
have all been received in the Copyright Office.

S.A.21
17 U.S.C. § 701

§ 701. The Copyright Office: General responsibilities and organization

(a) All administrative functions and duties under this title, except as otherwise
specified, are the responsibility of the Register of Copyrights as director of the
Copyright Office of the Library of Congress. The Register of Copyrights, together
with the subordinate officers and employees of the Copyright Office, shall be
appointed by the Librarian of Congress, and shall act under the Librarian’s general
direction and supervision.

(b) In addition to the functions and duties set out elsewhere in this chapter, the
Register of Copyrights shall perform the following functions:

(1) Advise Congress on national and international issues relating to copyright,

other matters arising under this title, and related matters.

(2) Provide information and assistance to Federal departments and agencies and
the Judiciary on national and international issues relating to copyright, other
matters arising under this title, and related matters.

(3) Participate in meetings of international intergovernmental organizations and

meetings with foreign government officials relating to copyright, other matters
arising under this title, and related matters, including as a member of United
States delegations as authorized by the appropriate Executive branch authority.

(4) Con~tuct studies and programs regarding copyright, other matters arising
under this title, and related matters, the administration of the Copyright Office,
or any function vested in the Copyright Office by law, including educational
programs conducted cooperatively with foreign intellectual property offices and
international intergovernmental organizations.

(5) Perform such other functions as Congress may direct, or as may be

appropriate in furtherance of the functions and duties specifically set forth in
this title.

(c) The Register of Copyrights shall adopt a seal to be used on and after January 1,
1978, to authenticate all certified documents issued by the Copyright Office.

S.A.22
(d) The Register of Copyrights shall make an annual report to the Librarian of
Congress of the work and accomplishments of the Copyright Office during the
previous fiscal year. The annual report of the Register of Copyrights shall be
published separately and as a part of the annual report of the Librarian of Congress.

(e) Except as provided by section 706(b) and the regulations issued thereunder, all
actions taken by the Register of Copyrights under this title are subject to the
provisions of the Administrative Procedure Act of June 11, 1946, as amended (c.
324, 60 Stat. 237, title 5, United States Code, Chapter 5, Subchapter II and Chapter
7).

(f) The Register of Copyrights shall be compensated at the rate of pay in effect for
level III of the Executive Schedule under section 5314 of title 5. The Librarian of
Congress shall establish not more than four positions for Associate iRegisters of
Copyrights, in accordance with the recommendations of the Register of
Copyrights. The Librarian shall make appointments to such positions after
consultation with the Register of Copyrights. Each Associate Register of
Copyrights shall be paid at a rate not to exceed the maximum annual rate of basic
pay payable for GS-18 of the General Schedule under section 5332 of title 5.

S.A.23
47 U.S.C. § 151

§ 151. Purposes of chapter; Federal Communications Commission created

For the purpose of regulating interstate and foreign commerce in communication

by wire and radio so as to make available, so far as possible, to all the people of the
United States, without discrimination on the basis of race, color, religion, national
origin, or sex, a rapid, efficient, Nation-wide, and world-wide wire and radio
communication service with adequate facilities at reasonable charges, for the
purpose of the national defense, for the purpose of promoting safety of life and
property through the use of wire and radio communications, and for the purpose of
securing a more effective execution of this policy by centralizing authority
heretofore granted by law to several agencies and by granting additional authority
with respect to interstate and foreign commerce in wire and radio communication,
there is created a commission to be known as the "Federal Communications
Commission", which shall be constituted as hereinafter provided, and which shall
execute and enforce the provisions of this chapter.

S.A.24
47 U.S.C. § 154

§ 154. Federal Communications Commission

(a) Number of commissioners; appointment

The Federal Communications Commission (in this chapter referred to as the

"Commission") shall be composed of five commissioners appointed by the
President, by and with the advice and consent of the Senate, one of whom the
President shall designate as chairman.

(f) Employees and assistants; compensation of members of Field Engineering and

Monitoring Bureau; use of amateur volunteers for certain purposes; commercial
radio operator examinations

(1) The Commission shall have authority, subject to the provisions of the civil-
service laws and chapter 51 and subchapter III of chapter 53 of Title 5, to
appoint such officers, engineers, accountants, attorneys, inspectors, examiners,
and other employees as are necessary in the exercise of its functions.

S.A.25
16 C.F.R. § 1.95

§ 1.95 Procedures upon election.

(a) After receipt of the notification of election to apply the procedures of this
section pursuant to § 1.93, the Commission shall promptly assess such penalty as it
deems appropriate, in accordance with § 1.97.

(b) If the civil penalty has not been paid within 60 calendar days after the
assessment order has been issued under paragraph (a) of this section, the General
Counsel, unless otherwise directed, shall institute an action in the appropriate
district court of the United States for an order enforcing the assessment of the civil
penalty.

(c) Any election to have this section apply may not be revoked except with the
consent of the Commission.

S.A.26
16 C.F.R. § 2.13

§ 2.13 Noncompliance with compulsory processes.

(a) In cases of failure to comply with Commission compulsory processes,

appropriate action may be initiated by the Commission or the Attorney General,
including actions for enforcement, forfeiture, or penalties or criminal actions.

(b) The General Counsel, pursuant to delegation of authority by the Commission,

without power of redelegation, is authorized:

(1) To institute, on behalf of the Commission, an enforcement proceeding in

connection with the failure or refusal of a person, partnership, or corporation to
comply with, or to obey, a subpoena, or civil investigative demand if the return
date or any extension thereof has passed;

(2) To approve and have prepared and issued, in the name of the Commission
when deemed appropriate by the General Counsel, a notice of default in
connection with the failure of a person, partnership, or corporation to timely file
a report pursuant to section 6(b) of the Federal Trade Commission Act, if the
return date or any extension thereof has passed;

(3) To institute, on behalf of the Commission, an enforcement proceeding and

to request, on behalf of the Commission, the institution, when deemed
appropriate by the General Counsel, of a civil action in connection with the
failure of a person, partnership, or corporation to timely file a report pursuant to
an order under section 6(b) of the Federal Trade Commission Act, if the return
date or any extension thereof has passed; and

(4) To seek civil contempt in cases where a court order enforcing compulsory
process has been violated.

S.A.27
16 C.F.R. § 2.20

§ 2.20 Petitions for review of requests for additional information or documentary

material.

(a) For purposes of this section, "second request" refers to a request for additional
information or documentary material issued under 16 CFR 803.20.

(b) Second request procedures--

(1) Notice. Every request for additional information or documentary material

issued under 16 CFR 803.20 shall inform the recipient(s) of the request that the
recipient has a fight to discuss modifications or clarifications of the request with
an authorized representative of the Commission. The request shall identify the
name and telephone number of at least one such representative.

(2) Second request conference. An authorized representative of the Commission

shall invite the recipient to discuss the request for additional information or
documentary material soon after the request is issued. At the conference, the
authorized representative shall discuss the competitive issues raised by the
proposed transaction, to the extent then known, and confer with the recipient
about the most effective way to obtain information and documents relating to
the competitive issues raised. The conference will ordinarily take place within 5
business days of issuance of the request, unless the recipient declines the
invitation or requests a later date.

(3) Modification of requests. The authorized representative shall modify the

request for additional information or documentary material, or recommend such
modification to the responsible Assistant Director of the Bureau of
Competition, if he or she determines that a less burdensome request would be
consistent with the needs of the investigation. A request for additional
information or documentary material may be modified only in writing signed by
the authorized representative.

(4) Review of request decisions.

(i) If the recipient of a request for additional information or documentary

material believes that compliance with portions of the request should not be
required and the recipient has exhausted reasonable efforts to obtain
clarifications or modifications of the request from an authorized

S.A.28
representative, the recipient may petition the General Counsel to consider
and rule on unresolved issues. Such petition shall be submitted by letter to
the General Counsel with a copy to the authorized representative who
participated in the second request conference held under paragraph (b)(3) of
this section. The petition shall not, without leave of the General Counsel,
exceed 500 words, excluding any cover, table of contents, table of
authorities, glossaries, proposed form of relief and any appendices
containing only sections of statutes or regulations, and shall address
petitioner’s efforts to obtain modification from the authorized representative.

(ii) Within 2 business days after receiving such a petition, the General
Counsel shall set a date for a conference with the petitioner and the
authorized representative.

(iii) Such conference shall take place within 7 business days after the
General Counsel receives the petition, unless the request recipient agrees to
a later date or declines to attend a conference.

(iv) Not later than 3 business days before the date of the conference, the
petitioner and the authorized representative may each submit memoranda
regarding the issues presented in the petition. Such memoranda shall not,
without leave of the General Counsel, exceed 1250 words, excluding any
cover, table of contents, table of authorities, glossaries, proposed form of
relief and appendices containing only sections of statutes or regulations.
Such memoranda shall be delivered to counsel for the other participants on
the same day they are delivered to the General Counsel.

(v) The petitioner’s memorandum shall include a concise statement of

reasons why the request should be modified, together with proposed
modifications, or a concise explanation why the recipient believes it has
substantially complied with the request for additional information or
documentary material.

(vi) The authorized representative’s memorandum shall include a concise

statement of reasons why the petitioner’s proposed modifications are
inappropriate or a concise statement of the reasons why the representative
believes that the petitioner has not substantially complied with the request
for additional information and documentary material.

S.A.29
(vii) The General Counsel shall advise the petitioner and the authorized
representative of his or her decision within 3 business days following the
conference.

S.A.30
§ 2.33 Compliance procedure.

The Commission may in its discretion require that a proposed agreement

containing an order to cease and desist be accompanied by an initial report signed
by the respondent setting forth in precise detail the manner in which the respondent
will comply with the order when and if entered. Such report will not become part
of the public record unless and until the accompanying agreement and order are
accepted by the Commission. At the time any such report is submitted a respondent
may request confidentiality for any portion thereof with a precise showing of
justification therefor as set out in § 4.9(c) and the General Counsel or the General
Counsel’s designee will dispose of such requests in accordance with that section.

S.A.31
17 C.F.R. § 200.30-4

§ 200.30-4 Delegation of authority to Director of Division of Enforcement.

Pursuant to the provisions of Pub.L. No. 100-181,101 Stat. 1254, 1255 (15 U.S.C.
78d-1, 78d-2), the Securities and Exchange Commission hereby delegates, until the
Commission orders otherwise, the following functions to the Director of the
Division of Enforcement to be performed by him or under his direction by such
other person or persons as may be designated from time to time by the Chairman of
the Commission.

(a)(1) To designate officers empowered to administer oaths and affirmations,

subpena witnesses, compel their attendance, take evidence, and require the
production of any books, papers, correspondence, memoranda, contracts,
agreements, or other records in the course of investigations instituted by the
Commission pursuant to section 19(b) of the Securities Act of 1933 (15 U.S.C.
77s(b)), section 21(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78u(b)),
section 18(c) of the Public Utility Holding Company Act of 1935 (15 U.S.C.
79r(c)), section 42(b) of the Investment Company Act of 1940 (15 U.S.C. 80a-
41(b)) and section 209(b) of the Investment Advisers Act of 1940 (15 U.S.C. 80b-
9(b)).

(2) In nonpublic investigative proceedings, to grant requests of persons to

procure copies of the transcript of their testimony under § 203.6 of this chapter.

(3) To terminate and close all investigations authorized by the Commission

pursuant to section 20 of the Securities Act of 1933 (15 U.S.C. 77t), section 21
of the Securities Exchange Act of 1934 (15 U.S.C. 78u), section 18 of the
Public Utility Holding Company Act of 1935 (15 U.S.C. 79r), section 42 of the
Investment Company Act of 1940 (15 U.S.C. 80a-41) and section 209 of the
Investment Advisers Act of 1940 (15 U.S.C. 80b-9).

(4) To terminate the authority to administer oaths and affirmations, subpoena

witnesses, compel their attendance, take evidence, and require the production of
any books, papers, correspondence, memoranda, contracts, agreements, or other
records in the course of investigations instituted by the Commission pursuant to
section 19(b) of the Securities Act of 1933 (15 U.S.C. 77s(b)), section 21 (b) of
the Securities Exchange Act of 1934 (15 U.S.C. 78u(b)), section 18(c) of the
Public Utility Holding Company Act of 1935 (15 U.S.C. 79r(c)), section 42(b)

S.A.32
of the Investment Company Act of 1940 (15 U.S.C. 80a-41(b)) and section
209(b) of the Investment Advisers Act of 1940 (15 U.S.C. 80b-9(b)).

(5) To grant or deny applications made pursuant to Rule 193 of the

Commission’s Rules of Practice, § 201.193 of this chapter, provided, that, in the
event of a denial, the applicant shall be notified that such a denial may be
appealed to the Commission for review.

(6) To notify the Securities Investor Protection Corporation ("SIPC") of facts

concerning the activities and the operational and financial condition of any
registered broker or dealer which is or appears to be a member of SIPC and
which is in or approaching financial difficulty within the meaning of section 5
of the Securities Investor Protection Act of 1970, as amended, 15 U.S.C. 78aaa
et seq.

(7) To administer the provisions of § 240.24c- 1 of this chapter; provided that

access to nonpublic information as defined in such section shall be provided
only with the concurrence of the head of the Commission division or office
responsible for such information or the files containing such information.

(8) Pursuant to Rule 204-2(j)(3)(ii)(§ 275.204-2(j)(3)(ii) of this chapter) under

the Investment Advisers Act of 1940 (15 U.S.C. 80b-1 et seq.), to make written
demands upon non-resident investment advisers subject to the provisions of
such rule to furnish to the Commission true, correct, complete and current
copies of any or all books and records which such non-resident investment
advisers are required to make, keep current or preserve pursuant to any
provision of any rule or regulation of the Commission adopted under the
Investment Advisers Act of 1940, or any part of such books and records which
may be specified in any such demand.

(9) To administer the provisions of Section 24(d) of the Securities Exchange

Act of 1934 (15 U.S.C. 78x(d)).

(10) To institute subpoena enforcement proceedings in federal court to seek an

order compelling the production of documents or an individual’s appearance for
testimony pursuant to subpoenas issued pursuant to paragraph (a)(1) of this
section in connection with investigations pursuant to section 19(b) of the
Securities Act of 1933 (15 U.S.C. 77s(b)), section 21 (b) of the Securities
Exchange Act of 1934 (15 U.S.C. 78u(b)), section 18(c) of the Public Utilities
Holding Company Act of 1935 (15 U.S.C. 79r(c)), section 42(b) of the
S.A.33
 Investment Company Act of 1940 (15 U.S.C. 80a-41(b)) and section 209(b) of
the Investment Advisers Act of 1940 (15 U.S.C. 80b-9(b)).

(11) To authorize staff to appear in federal bankruptcy court to preserve

Commission claims in connection with investigations pursuant to section 19(b)
of the Securities Act of 1933 (15 U.S.C. 77s(b)), section 21(b) of the Securities
Exchange Act of 1934 (15 U.S.C. 78u(b)), section 18(c) of the Public Utility
Holding Company Act of 1935 (15 U.S.C. 79r(c)), section 42(b) of the
Investment Company Act of 1940 (15 U.S.C. 80a-41(b)) and section 209(b) of
the Investment Advisers Act of 1940 (15 U.S.C. 80b-9(b)).

(12) Pursuant to Section 36 o f the Securities Exchange Act o f 1934 ( 15 U.S.C.

78mm) to review and, either unconditionally or on specified terms and
conditions, grant, or deny exemptions from rule 17a-25 of the Act (§ 240.17a-
25 of this chapter), provided that the Division of Market Regulation is notified
of any such granting or denial of an exemption.

(b) Notwithstanding anything in the foregoing, in any case in which the Director of
the Division of Enforcement believes it appropriate, he may submit the matter to
the Commission.

S.A.34