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if the State law was the subject of consultations under the

Dispute Settlement Understanding, certifying that the Trade

Representative has substantially complied with the requirements of

paragraph (1)(C) in connection with the matter.

Following the submission of the report, and before the action is

brought, the Trade Representative shall consult with the committees

referred to in the preceding sentence concerning the matter.

(3) Definition of State Law. For purposes of this subsection-

(A) the term "State law" includes-

(i) any law of a political subdivision of a State; and

(ii) any State law regulating or taxing the business of insurance; and

(B) the terms "dispute settlement panel" and "Appellate Body" have the

meanings given those terms in section 121.

(c) Effect of Agreement With Respect to Private Remedies.

(1) Limitations. No person other than the United States-

(A) shall have any cause of action or defense under any of the Uruguay

Round Agreements or by virtue of congressional approval of such an

agreement, or

(B) may challenge, in any action brought under any provision of law, any

action or inaction by any department, agency, or other instrumentality

of the United States, any State, or any political subdivision of a State

on the ground that such action or inaction is inconsistent with such

agreement.

(2) Intent of congress. It is the intention of the Congress through

paragraph (1) to occupy the field with respect to any cause of action or

defense under or in connection with any of the Uruguay Round Agreements,

including by precluding any person other than the United States from

bringing any action against any State or political subdivision thereof

or raising any defense to the application of State law under or in

connection with any of the Uruguay Round Agreements-

(A) on the basis of a judgment obtained by the United States in an

action brought under any such agreement; or

(B) on any other basis.

(d) Statement of Administrative Action. The statement of administrative

action approved by the Congress under section 101(a) shall be regarded

as an authoritative expression by the United States concerning the

interpretation and application of the Uruguay Round Agreements and this

Act in any judicial proceeding in which a question arises concerning

such interpretation or application.

Sec. 103. Implementing actions in anticipation of entry into force;

regulations.

(a) Implementing Actions. After the date of the enactment of this Act-

(1) the President may proclaim such actions, and

(2) other appropriate officers of the United States Government may issue

such regulations,

as may be necessary to ensure that any provision of this Act, or

amendment made by this Act, that takes effect on the date any of the

Uruguay Round Agreements enters into force with respect to the United

States is appropriately implemented on such date. Such proclamation or

regulation may not have an effective date earlier than the date of entry

into force with respect to the United States of the agreement to which

the proclamation or regulation relates.

(b) Regulations. Any interim regulation necessary or appropriate to

carry out any action proposed in the statement of administrative action

approved under section 101(a) to implement an agreement described in

section 101(d) (7), (12), or (13) shall be issued not later than 1 year

after the date on which the agreement enters into force with respect to

the United States.

Appendix III Endnote

1 Part III of the Appendix consists of provisions of the Uruguay Round

Agreements Act, Pub. L. No. 103-465, 108 Stat. 4809, that do not amend

title 17 of the United States Code.

Appendix IV. GATT/Trade-Related Aspects of Intellectual

Property Rights (TRIPs) Agreement, Part II: [1]

Section 6: Layout-Designs (Topographies) of Integrated Circuits

Article 35

Relation to IPIC Treaty

Members agree to provide protection to the layout-designs (topographies)

of integrated circuits (hereinafter referred to as "layout-designs") in

accordance with Articles 2-7 (other than paragraph 3 of Article 6),

Article 12 and paragraph 3 of Article 16 of the Treaty on Intellectual

Property in Respect of Integrated Circuits and, in addition, to comply

with the following provisions.

Article 36

Scope of the Protection [2]

Subject to the provisions of paragraph 1 of Article 37 below, Members

shall consider unlawful the following acts if performed without the

authorization of the right holder: importing, selling, or otherwise

distributing for commercial purposes a protected layout-design, an

integrated circuit in which a protected layout-design is incorporated,

or an article incorporating such an integrated circuit only insofar as

it continues to contain an unlawfully reproduced layout-design.

Article 37

Acts not Requiring the Authorization of the Right Holder

Notwithstanding Article 36 above, no Member shall consider unlawful

the performance of any of the acts referred to in that Article in

respect of an integrated circuit incorporating an unlawfully reproduced

layout-design or any article incorporating such an integrated circuit

where the person performing or ordering such acts did not know and had

no reasonable ground to know, when acquiring the integrated circuit or

article incorporating such an integrated circuit, that it incorporated

an unlawfully reproduced layout-design. Members shall provide that,

after the time that such person has received sufficient notice that the

layout-design was unlawfully reproduced, he may perform any of the acts

with respect to the stock on hand or ordered before such time, but shall

be liable to pay to the right holder a sum equivalent to a reasonable

royalty such as would be payable under a freely negotiated license in

respect of such a layout-design.

The conditions set out in sub-paragraphs (a)-(k) of Article 31 above

shall apply mutatis mutandis in the event of any non-voluntary

licensing of a layout-design or of its use by or for the government

without the authorization of the right holder.

Article 38

Term of Protection

In Members requiring registration as a condition of protection, the

term of protection of layout-designs shall not end before the expiration

of a period of ten years counted from the date of filing an application

for registration or from the first commercial exploitation wherever in

the world it occurs.

In Members not requiring registration as a condition for protection,

layout-designs shall be protected for a term of no less than ten years

from the date of the first commercial exploitation wherever in the world

it occurs.

Notwithstanding paragraphs 1 and 2 above, a Member may provide that

protection shall lapse fifteen years after the creation of the layout-

design.

Appendix IV Endnotes

1 For an explanation of the relationship of this section of TRIPs to

title 17 of the United States Code, see the second paragraph of

endnote 8, chapter 9, supra.

2 The term "right holder" in this section shall be understood as having

the same meaning as the term "holder of the right" in the Treaty on

Intellectual Property in Respect of Integrated Circuits, done at

Washington, D.C., on May 26, 1989.

Appendix V. Additional Provisions of the Digital Millennium

Copyright Act [1]

Section 1. Short Title.

This Act may be cited as the "Digital Millennium Copyright Act".

Title I-WIPO Treaties Implementation

SEC. 101. SHORT TITLE.

This title may be cited as the "WIPO Copyright and Performances and

Phonograms Treaties Implementation Act of 1998".

SEC. 104. EVALUATION OF IMPACT OF COPYRIGHT LAW AND AMENDMENTS ON

ELECTRONIC COMMERCE AND TECHNOLOGICAL DEVELOPMENT.

(a) Evaluation by the Register of Copyrights and the Assistant Secretary

for Communications and Information. The Register of Copyrights and the

Assistant Secretary for Communications and Information of the Department

of Commerce shall jointly evaluate-

(1) the effects of the amendments made by this title and the development

of electronic commerce and associated technology on the operation of

sections 109 and 117 of title 17, United States Code; and

(2) the relationship between existing and emergent technology and the

operation of sections 109 and 117 of title 17, United States Code.

(b) Report to Congress. The Register of Copyrights and the Assistant

Secretary for Communications and Information of the Department of

Commerce shall, not later than 24 months after the date of the enactment

of this Act, submit to the Congress a joint report on the evaluation

conducted under subsection (a), including any legislative

recommendations the Register and the Assistant Secretary may have.

SEC. 105. EFFECTIVE DATE.

(a) In General. Except as otherwise provided in this title, this title

and the amendments made by this title shall take effect on the date of

the enactment of this Act.

(b) Amendments Relating to Certain International Agreements. (1) The

following shall take effect upon the entry into force of the WIPO

Copyright Treaty with respect to the United States:

(A) Paragraph (5) of the definition of "international agreement"

contained in section 101 of title 17, United States Code, as amended by

section 102(a)(4) of this Act.

(B) The amendment made by section 102(a)(6) of this Act.

(C) Subparagraph (C) of section 104A(h)(1) of title 17, United States

Code, as amended by section 102(c)(1) of this Act.

(D) Subparagraph (C) of section 104A(h)(3) of title 17, United States

Code, as amended by section 102(c)(2) of this Act.

(2) The following shall take effect upon the entry into force of the

WIPO Performances and Phonograms Treaty with respect to the United

States:

(A) Paragraph (6) of the definition of "international agreement"

contained in section 101 of title 17, United States Code, as amended by

section 102(a)(4) of this Act.

(B) The amendment made by section 102(a)(7) of this Act.

(C) The amendment made by section 102(b)(2) of this Act.

(D) Subparagraph (D) of section 104A(h)(1) of title 17, United States

Code, as amended by section 102(c)(1) of this Act.

(E) Subparagraph (D) of section 104A(h)(3) of title 17, United States

Code, as amended by section 102(c)(2) of this Act.

(F) The amendments made by section 102(c)(3) of this Act.

Title II - Online Copyright Infringement Liability Limitation

SEC. 201. SHORT TITLE.

This title may be cited as the "Online Copyright Infringement Liability

Limitation Act".

SEC. 203. EFFECTIVE DATE.

This title and the amendments made by this title shall take effect on

the date of the enactment of this Act.

Title IV - Miscellaneous Provisions

SEC. 401. PROVISIONS RELATING TO THE COMMISSIONER OF PATENTS AND

TRADEMARKS AND THE REGISTER OF COPYRIGHTS-

(a) Compensation. (1) Section 3(d) of title 35, United States Code, is

amended by striking "prescribed by law for Assistant Secretaries of

Commerce" and inserting "in effect for level III of the Executive

Schedule under section 5314 of title 5, United States Code".

(3) Section 5314 of title 5, United States Code, is amended by adding at

the end the following:

"Assistant Secretary of Commerce and Commissioner of Patents and

Trademarks.

"Register of Copyrights.".

SEC. 403. LIMITATIONS ON EXCLUSIVE RIGHTS; DISTANCE EDUCATION.

(a) Recommendations by Register of Copyrights. Not later than 6 months

after the date of the enactment of this Act, the Register of Copyrights,

after consultation with representatives of copyright owners, nonprofit

educational institutions, and nonprofit libraries and archives, shall

submit to the Congress recommendations on how to promote distance

education through digital technologies, including interactive digital

networks, while maintaining an appropriate balance between the rights of

copyright owners and the needs of users of copyrighted works. Such

recommendations shall include any legislation the Register of Copyrights

considers appropriate to achieve the objective described in the

preceding sentence.

(b) Factors. In formulating recommendations under subsection (a), the

Register of Copyrights shall consider-

(1) the need for an exemption from exclusive rights of copyright owners

for distance education through digital networks;

(2) the categories of works to be included under any distance education

exemption;

(3) the extent of appropriate quantitative limitations on the portions

of works that may be used under any distance education exemption;

(4) the parties who should be entitled to the benefits of any distance

education exemption;

(5) the parties who should be designated as eligible