[Federal Register: March 25, 2005 (Volume 70, Number 57)]
[Notices]
[Page 15368-15369]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr25mr05-89]
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LIBRARY OF CONGRESS
Copyright Office
[Docket No. 2005-4 CARP SRA-Digital]
Rate Adjustment for the Satellite Carrier Compulsory License
AGENCY: Copyright Office, Library of Congress.
ACTION: Notice of voluntary negotiation period.
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SUMMARY: The Copyright Office of the Library of Congress is announcing
the voluntary negotiation period for the purpose of determining the
royalty fees for the retransmission of digital over-the-air television
broadcast signals by satellite carriers under the statutory license.
DATES: The voluntary negotiation period commences on March 25, 2005 and
concludes on April 25, 2005. Voluntary agreements must be submitted no
later than April 25, 2005.
ADDRESSES: If hand delivered by a private party, an original and five
copies of voluntary agreements should be brought to Room LM-401 of the
James Madison Memorial Building between 8:30 a.m. and 5 p.m. and the
envelope should be addressed as follows: Copyright Office General
Counsel/CARP, U.S. Copyright Office, James Madison Memorial Building,
Room LM-401, 101 Independence Avenue, S.E., Washington, D.C. 20559-
6000. If delivered by a commercial courier, an original and five copies
of voluntary agreements must be delivered to the Congressional Courier
Acceptance Site located at 2nd and D Streets, N.E. between 8:30 a.m.
and 4 p.m. The envelope should be addressed as follows: Copyright
Office General Counsel/CARP, Room LM-403, James Madison Memorial
Building, 101 Independence Avenue, S.E., Washington, D.C. If sent by
mail (including overnight delivery using U.S. Postal Service Express
Mail), an original and five copies of voluntary agreements should be
addressed to: Copyright Arbitration Royalty Panel (CARP), P.O. Box
70977, Southwest Station, Washington, D.C. 20024. Voluntary agreements
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: David O. Carson, General Counsel, or
Gina Giuffreda, Attorney Advisor, Copyright Arbitration Royalty Panel
(CARP), P.O. Box 70977, Southwest Station, Washington, D.C. 20024.
Telephone: (202) 707-8380. Telefax: (202) 252-3423.
SUPPLEMENTARY INFORMATION:
Background
The satellite carrier compulsory license establishes a statutory
copyright licensing scheme for satellite carriers that retransmit over-
the-air television broadcast signals to satellite dish owners. 17
U.S.C. 119. Congress created the license in 1988 with the passage of
the Satellite Home Viewer Act of 1988. Congress reauthorized the
satellite license for additional five-year periods in 1994 and 1999,
and the license was slated to expire on December 31, 2004. However,
Congress again reauthorized the satellite license for another five
years with the passage of the Satellite Home Viewer Extension and
Reauthorization Act of 2004 (``SHVERA'') (as part of the Consolidated
Appropriations Act, 2005), Pub. L. 108-447, which was signed into law
by the President on December 8, 2004.
Rates for the statutory license were initially set by Congress in
the Satellite Home Viewer Act of 1988 and then later adjusted by a
three-person arbitration panel convened by the former Copyright Royalty
Tribunal. 57 FR 19052 (May 1, 1992). When the license was reauthorized
in 1994, Congress directed that the rates be adjusted by the Librarian
of Congress using the system that replaced the Copyright Royalty
Tribunal, namely, a Copyright Arbitration Royalty Panel (``CARP'').
Accordingly, the Librarian adjusted the rates in 1997. 62 FR 55742
(October 28, 1997). In the Satellite Home Viewer Improvement Act of
1999, which reauthorized the license for an additional five years,
Congress reduced the rates set by the Librarian. 17 U.S.C. 119(c)(4).
SHVERA adopts the rates as reduced by Congress in 1999 for the
retransmission of analog signals but calls for the adjustment of those
rates.\1\ In addition, SHVERA calls for the setting of rates, for the
first time, for the retransmission of the primary digital transmissions
of network stations and superstations. SHVERA provides that the rates
to be paid by satellite carriers for the retransmission of digital
signals shall be the rates set by the Librarian in 1997 for the
retransmission of analog signals, 37 CFR 258.3(b)(1)&(2), reduced
[[Page 15369]]
by 22.5 percent but provides for a rate adjustment in accordance with
the
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\1\ The Library has begun the process to adjust the rates paid
for the retransmission of analog signals. See 69 FR 78482 (December
30, 2004); 70 FR 3656 (January 26, 2005).
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procedures set forth in section 119(c)(1) of the Copyright Act.
On March 8, 2005, the Copyright Office received a letter from
EchoStar Satellite L.L.C., DirecTV, Inc., Program Suppliers, and the
Joint Sports Claimants requesting that the Office begin the process of
setting the rates for the retransmission of digital broadcast signals
by initiating a voluntary negotiation period so that rates for both
digital and analog signals ``will be in place before the July 31, 2005
deadline for satellite carriers to pay royalties for the first
accounting period of 2005.'' \2\ Letter at 2. The Office sees no reason
not to grant this request. Accordingly, today's notice begins the
process mandated by statute.
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\2\ We note that the letter referenced Docket No. 2004-9 CARP
SRA, which is the proceeding to adjust the rates for the
retransmission of analog signals. As the parties state in their
letter, ``the analog rates and digital rates are distinct and
separate.'' Letter at 1. We agree. Therefore, we have assigned a
separate docket number to this proceeding.
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Voluntary Negotiation Period
Section 119(c)(2) of the Copyright Act, 17 U.S.C., provides that
``[t]he process and requirements for establishing the royalty fee
payable . . . for the secondary transmission of the primary digital
transmissions of network stations and superstations shall be the same''
as that set forth in section 119(c)(1) for the amendment of the rates
paid for the retransmission of analog signals. Section 119(c)(1)
provides that ``the Librarian of Congress shall cause to be published
in the Federal Register [notice] of the initiation of the voluntary
negotiation proceedings for the purpose of determining the royalty fee
to be paid by satellite carriers'' for the retransmission of digital
broadcast signals. This notice initiates the voluntary negotiation
period.
The statute does not specify how long the voluntary negotiation
period is to last. However, the regulations governing CARP proceedings
provide for a ``30-day period for negotiation of a settlement'' when
adjusting rates under the cable, phonorecord and jukebox statutory
licenses. 37 CFR 251.63(a). Since the rates will be determined under
the current CARP system\3\ should parties be unable to negotiate a
voluntary agreement or an objection to such agreement is raised, the
Library sees no reason not to adopt the period set forth in Sec.
251.63(a) here. Therefore, the voluntary negotiation period commences
today, March 25, 2005, and concludes April 25, 2005.
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\3\ On November 30, 2004, the President signed into law the
Copyright Royalty and Distribution Act of 2004, Pub. L. 108-419,
which phases out the CARP system and replaces it with three
permanent Copyright Royalty Judges. However, SHVERA calls for
satellite royalty rates to be determined ``under chapter 8 as in
effect on the day before the date of enactment of the Copyright
Royalty and Distribution Act of 2004.'' 17 U.S.C. 119(c)(1)(F).
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If a voluntary agreement is reached by the end of the negotiation
period, the parties can request that the Librarian publish the
agreement for notice and comment in accordance with section
119(c)(1)(D)(ii)(II) and adopt the rates in the voluntary agreement if
no objections are received from a party with a significant interest and
an intention to participate in a CARP proceeding. 17 U.S.C.
119(c)(1)(D)(ii)(III). Voluntary agreements must be submitted no later
than April 25, 2005. If no agreements are received by that time, the
Library will proceed in accordance with the rules and regulations of 37
CFR part 251.
Dated: March 22, 2005
David O. Carson,
General Counsel.
[FR Doc. 05-5953 Filed 3-24-05; 8:45 am]
BILLING CODE 1410-33-S