The dispute was over the legality of "the playing of radio and television music in public places (such as bars, shops, restaurants etc.)
The panel stated that if the exceptions "(i) [were] confined to certain special cases; (ii) [did] not conflict with a normal exploitation of the work; and (iii) [did] not unreasonably prejudice the legitimate interests of the right holder" they would not violate the Berne Convention (Report).
The Panel, noting that 45–73% of pertinent establishments were covered by the exemption, found the "business exemption" to violate Article 13 of the TRIPs Agreement, thus inconsistent with Article 11 of the Berne Convention, and recommended that the Dispute Settlement Body require the United States to rework the law into accordance with the TRIPs Agreement.
The US, however, failed to bring the law into the bounds of the TRIPs Agreement within the deadline, and the European Communities pressured the DSB to "suspend concessions".
As both the EC and the third party Australia bemoaned the United States' slow progress, the US continually reported that its delegation was working with Congress to enact the settlement.