[Federal Register: August 9, 2005 (Volume 70, Number 152)]
[Notices]
[Page 46193-46194]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr09au05-106]
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LIBRARY OF CONGRESS
Copyright Royalty Board
[Docket No. 2005-2 CRB SD 2001-2003]
Distribution of the 2001, 2002, and 2003 Satellite Royalty Funds
AGENCY: Copyright Royalty Board, Library of Congress.
ACTION: Request for comments.
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SUMMARY: The Interim Chief Copyright Royalty Judge, on behalf of the
Copyright Royalty Board, is requesting comments on the existence of
controversies to the distribution of the 2001, 2002, and 2003 satellite
royalty funds.
DATES: Written comments should be received no later than September 8,
2005.
ADDRESSES: If hand delivered by a private party, an original and five
copies of comments must be brought to Room LM-401 of the James Madison
Memorial Building, Monday through Friday, between 8:30 a.m. and 5 p.m.,
and the envelope must be addressed as follows: Copyright Royalty Board,
Library of Congress, James Madison Memorial Building, LM-401, 101
Independence Avenue, SE., Washington, DC 20559-6000. If delivered by a
commercial courier (excluding overnight delivery services such as
Federal Express, United Parcel Service and similar overnight delivery
services), an original and five copies of comments must be delivered to
the Congressional Courier Acceptance Site located at 2nd and D Street,
NE., Monday through Friday, between 8:30 a.m. and 4 p.m., and the
envelope must be addressed as follows: Copyright Royalty Board, Library
of Congress, James Madison Memorial Building, LM-403, 101 Independence
Avenue, SE., Washington, DC 20559-6000. If sent by mail (including
overnight delivery using United States Postal Service Express Mail), an
original and five copies of comments must be addressed to: Copyright
Royalty Board, P.O. Box 70977, Southwest Station, Washington, DC 20024-
0977. Comments may not be delivered by means of overnight delivery
services such as Federal Express, United Parcel Service, etc., due to
delays in processing receipt of such deliveries.
FOR FURTHER INFORMATION CONTACT: William J. Roberts, Jr., Senior
Attorney, or Abioye E. Oyewole, CRB Program Specialist. Telephone (202)
707-8380. Telefax: (202) 252-3423.
SUPPLEMENTARY INFORMATION: Each year satellite carriers submit
royalties to the Copyright Office under the section 119 statutory
license for the retransmission to their subscribers of distant over-
the-air television broadcast signals. 17 U.S.C. 119. These royalties
are, in turn, distributed in one of two ways to copyright owners whose
works were included in a retransmission of an over-the-air television
broadcast signal and who timely filed a claim for royalties with the
Copyright Office. The copyright owners may either negotiate the terms
of a settlement as to the division of the royalty funds, or the
Copyright Royalty Board may conduct a proceeding to determine the
distribution of the royalties that remain in controversy. See 17 U.S.C.
Chapter 8.
By Motion received on June 20, 2005, representatives of the Phase I
claimant categories (the ``Phase I Parties'') \1\ have asked the Board
to authorize a partial distribution of 50% of each of the 2001, 2002,
and 2003 satellite royalty funds, asserting that 50% of those funds is
not in controversy. As set forth in the Motion, the proposed partial
distribution would be preceded by a notice in the Federal Register,
seeking comments with respect to the premise of the Motion that 50% of
the relevant royalty funds is not in controversy. The Phase I Parties
also indicated that, ``in the event that the final percentage shares to
Phase I Parties differ from the distributions made pursuant to this
Motion, any overpayment that results from the final distribution shall
be repaid * * * with interest * * *.'' Motion, at 4 (internal quotation
and citation omitted).
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\1\ The ``Phase I Parties'' are the Program Suppliers, the Joint
Sports Claimants, the Public Television Claimants, the Broadcaster
Claimants Group, the American Society of Composers, Authors and
Publishers, Broadcast Music, Inc., SESAC, Inc., and the Devotional
Claimants.
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In support of their Motion, the Phase I Parties invoked the Board's
authority under Copyright Act sections 801(b)(3)(C) and 119(b)(4)(C).
Because no distribution proceeding with respect to the 2001-2003
satellite funds was ``pending,'' the Board was concerned that it might
lack authority to act favorably on the requested 50% partial
distribution. Accordingly, on July 1, 2005, the Board invited
supplemental briefing from the Phase I Parties on this issue. In their
supplemental brief, filed July 26, 2005, the Phase I Parties rely
heavily on section 801(b)(3)(A). 17 U.S.C. 801(b)(3)(A), which was
enacted as part of the Copyright Royalty and Distribution Reform Act of
2004, Public Law 108-419, 118 Stat. 2341 (November 30, 2004),
``authorize[s] the distribution'' of satellite and other royalty funds
``to the extent that the Copyright Royalty Judges have found that the
distribution of such fees is not subject to controversy.'' In arguing
that section 801(b)(3)(A) should be construed to permit partial
distributions prior to the formal initiation of distribution
proceedings, the Phase I Parties point to the historic practices of the
Copyright Royalty Tribunal and the Copyright Arbitration Royalty Panel
system and demonstrate that Congress did not intend to alter that
flexibility in adopting the current language of Copyright Act section
801(b)(3). After considering the arguments made by the Phase I Parties,
the Board agrees with the Phase I Parties that section 801(b)(3)(A)
should be construed to authorize the partial distribution of royalties
not in controversy prior to the initiation of proceedings under
sections 803(b)(1).
Accordingly, through this Federal Register notice, the Board is
seeking comments on whether any controversy exists that would preclude
the distribution of 50% of the satellite royalty funds to the Phase I
Parties. If no controversy exists with respect to 50% of the funds, or
no comments are received, the Board will grant the Phase I Parties'
Motion for the partial distribution of the 2001-2003 satellite royalty
funds, subject to the protective refund conditions required for partial
distributions.
The Board also seeks comment on the existence and extent of any
controversies to the 2001-2003 satellite royalty funds, either at Phase
I or Phase II, with respect to the 50% of the 2001-2003 satellite
royalty funds that would remain, if the partial distribution is
granted. In Phase I of a satellite royalty distribution, royalties are
distributed to certain categories of broadcast programming that have
been retransmitted by satellite carriers. The categories have
traditionally been movies and syndicated television series, sports
programming, commercial and noncommercial broadcaster-owned
programming, religious programming, music programming and Canadian
programming. In Phase II of a satellite royalty distribution, royalties
are distributed to claimants within each of the Phase I categories. Any
party submitting comments on the existence
[[Page 46194]]
of a Phase II controversy must identify the category or categories in
which there is a dispute, and the extent of the controversy or
controversies.
The Board must be advised of the existence and extent of all Phase
I and Phase II controversies by the end of the comment period. It will
not consider any controversies that come to its attention after the
close of that period.
Dated: August 4, 2005.
Bruce G. Forrest,
Interim Chief Copyright Royalty Judge.
[FR Doc. 05-15731 Filed 8-8-05; 8:45 am]
BILLING CODE 1410-72-P