Intercollegiate Broad. v. Copyright Royalty Bd.

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Intercollegiate Broadcasting, Inc. appealed a final determination of the Copyright Royalty Judges (CRJs) setting the default royalty rates and terms applicable to internet-based webcasting of digitally recorded music. The D.C. Circuit Court of Appeals held that the positions of the CRJs, as currently constituted, violates the Appointments Clause of the U.S. Constitution. To remedy that violation, the Court followed the Supreme Court's approach in Free Enterprise Fund v. Public Company Accounting Oversight Bd. by invalidating and severing the restrictions on the Librarian of Congress's ability to remove CRJs. The Court concluded that with such removal power in the Librarian's hands, the CRJs are "inferior" rather than "principal" officers, and no constitutional problem remained. Because of the Appointments Clause violation at the time of the decision, the Court vacated and remanded the determination challenged here. View "Intercollegiate Broad. v. Copyright Royalty Bd." on Justia Law