Copyright Arbitration Royalty Panel

Introduction
The Copyright Arbitration Royalty Panel (CARP) is the system involved in making decisions regarding copyright royalties.

Panel Function
Proposed by the Register of Copyrights, the system is sanctioned to appoint and organize copyright arbitration royalty panels. The primary purpose of the panel is to make decisions involving the adjustment of copyright royalty rates as well as the terms and payments of royalties that fall under copyright law.

When determining the reasonable royalty rates, the Copyright Arbitration Royalty Panel attempts to make the creative works accessible to the public, to grant the copyright holder a fair reward for their work, and to minimize any disruptive effects the industries involved or associated with the copyright holder and user. Additionally, arbitrary decisions are made concerning the adjustment of the copyright royalty rates by this group.

Distribution Reform Act of 2004
CARP has been phased out as a result of the Distribution Reform Act of 2004. Under the new system, three Copyright Royalty Judges, also known as CRJ, will establish the conditions and rates for copyright statutory licenses, and govern the distribution system of royalties collected by the Copyright Office on these statutory licenses.

The CRJ appointees serve for a full-time six-year with the possibility for reappointment. In order to avoid replacing all three judges at the same time, the first three judges appointed will serve staggered terms of two, four, and six years.