[Federal Register: August 11, 2005 (Volume 70, Number 154)]
[Notices]
[Page 46891]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr11au05-111]
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LIBRARY OF CONGRESS
Copyright Office
[Docket Nos. 2003-3 CARP DD 2002 and 2004-4 CARP DD 2003]
Distribution of 2002 and 2003 Digital Audio Recording Royalty
Funds
AGENCY: Copyright Office, Library of Congress.
ACTION: Notice of termination of proceedings.
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SUMMARY: The Copyright Office of the Library of Congress is announcing
the termination of two proceedings under the Copyright Arbitration
Royalty Panel system to distribute royalty fees paid by importers and
manufacturers of digital audio recording devices and media who
distributed these products in the United States during the period
beginning January 1, 2002, and ending on December 31, 2003. The Office
is also providing notice that the authority to make determinations
regarding the distribution of the 2004 Digital Audio Recording Royalty
Funds passed to the Copyright Royalty Board on May 31, 2005.
DATES: Effective August 11, 2005.
FOR FURTHER INFORMATION CONTACT: Tanya M. Sandros, Associate General
Counsel, or Abioye E. Oyewole, CRB Specialist. Telephone: (202) 707-
8380. Telefax: (202) 252-3423.
SUPPLEMENTARY INFORMATION: The Audio Home Recording Act of 1992 (the
``Act''), Public Law 102-563, requires manufacturers and importers to
pay royalties on digital audio recording devices and media (``DART'')
that are distributed in the United States. 17 U.S.C. 1003. These
royalties are deposited with the Copyright Office for further
distribution among interested copyright parties (``ICPs''), provided
the copyright owners file a claim with the Office during January and
February of each year. 17 U.S.C. 1005, 1007. The Act provides that the
royalties are divided between two funds: the Sound Recordings Fund and
the Musical Works Fund. These fees are allocated further to specific
subfunds. The Sound Recordings Fund consists of four subfunds: the
Featured Recording Artists Subfund, the Copyright Owners Subfund, the
Nonfeatured Musicians Subfund, and the Nonfeatured Vocalists Subfund.
The royalty fees allocated to the Musical Works Fund are equally
divided between two subfunds, the Publishers Subfund and the Writers
Subfund. 17 U.S.C. 1006(b).
Under the Copyright Arbitration Royalty Panel (``CARP'') system,
proceedings to distribute funds in the Sound Recordings and Musical
Works Funds occurred in one of two ways. If the claimants within each
subfund agreed among themselves how to distribute the royalty fees, the
Librarian of Congress distributed the royalties to the claimants in
accordance with their negotiated agreement. 17 U.S.C. 1007(b). In the
absence of an agreement, the Librarian of Congress convened a CARP, an
ad-hoc panel of arbitrators, to determine the distribution of royalty
payments. 17 U.S.C. 1007(c). On November 30, 2004, the President signed
into law the Copyright Royalty and Distribution Reform Act of 2004 (the
``CRDRA''), Public Law 108-419, 118 Stat. 2341. This Act, which became
effective on May 31, 2005, phases out the CARP system and replaces it
with three permanent Copyright Royalty Judges (``CRJs''). Additionally,
CRDRA allows for the termination of ``any [CARP] proceeding commenced
by the date of the enactment of this Act...and any proceeding so
terminated shall become null and void. In such cases, the Copyright
Royalty Judges may initiate a new proceeding in accordance with
regulations adopted pursuant to section 803(b)(6) of title 17, United
States Code.'' Section 6(b)(1) of the Copyright Royalty and
Distribution Reform Act of 2004, Public Law 108-419. The Copyright
Office is announcing the termination of two DART distribution
proceedings under this provision.
Prior to the enactment of this Act, the Copyright Office made a
number of distributions of the 2002 and 2003 DART royalty funds under
the CARP system. In the 2002 DART distribution proceeding, the
Copyright Office ordered a distribution of the 2002 royalties in the
Sound Recordings Fund on October 1, 2003, based on settlement
agreements among the claimants to the Copyright Owners and Featured
Recording Artists subfunds. A second distribution to an Independent
Administrator followed on November 19, 2003, of 4% of the 2002 Sound
Recordings Fund, the amount allocated by law to the Nonfeatured
Musicians and Nonfeatured Vocalists royalty subfunds.
Similar distributions were made in the 2003 DART distribution
proceeding. On May 27, 2005, the Office made two distributions of
royalties in the 2003 Sound Recordings Fund based upon settlement
agreements among the interested copyright parties, one for the
royalties allocated to the Featured Recording Artists subfund and the
other for the funds allocated to the Copyright Owners subfund. The
final distribution of the 2003 Sound Recordings Fund royalty fees was
an administrative distribution of the funds in the Nonfeatured
Musicians and Nonfeatured Vocalists royalty subfunds made on June 28,
2004. However, no action has been taken to distribute the 2002 and 2003
Musical Works Funds nor will the Copyright Office initiate any further
proceedings to consider the distribution of these Funds. Rather, the
Library elects to terminate these proceedings immediately pursuant to
Section 6(b)(1) of the CRDRA. As a result, subsequent proceedings
regarding the distribution of the 2002 and 2003 Musical Works Funds
shall be initiated under the new CRJ system.
The Office is also providing notice that all proceedings regarding
the distribution of the 2004 DART royalty funds came under the
jurisdiction of the Copyright Royalty Board on May 31, 2005, the
effective date of the CRDRA. Prior to this date, the Office took no
action to commence a proceeding to consider the distribution of these
funds. It merely accepted the claims filed and made an administrative
distribution of the Nonfeatured Musicians and Nonfeatured Vocalists
subfunds, actions which do not constitute commencement of a proceeding.
Consequently, in accordance with Section 6(b)(1) of the CRDRA, the
Library of Congress did not acquire jurisdiction over this proceeding.
Dated: August 5, 2005
Tanya M. Sandros,
Associate General Counsel.
[FR Doc. 05-15924 Filed 8-10-05; 8:45 am]
BILLING CODE 1410-33-S