the payment of a royalty fee under certain conditions, were inconsistent with US obligations
under the Berne Convention and TRIPS. In the WTO dispute settlement proceedings, the Panel
examined whether the ‘home-style’ exception in subparagraph (a) and the ‘business’ exception
in subparagraph (b) of Section 110(5) of the US Copyright Act satisfied the three-step test.9 It
found that the ‘home-style’ exception met the requirements of the test, but the ‘business’
exception, which allows the amplification of music broadcasts without an authorization and a
payment of a royalty fee by food service and drinking establishments and by retail
establishments, did not. Therefore, the Panel recommended that the United States bring its law
into conformity with the three-step test.