[Federal Register: March 30, 2005 (Volume 70, Number 60)]
[Notices]
[Page 16306-16308]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30mr05-120]
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LIBRARY OF CONGRESS
Copyright Office
[Docket No. 2005-2 CARP CRA]
Adjustment of Cable Statutory License Royalty Rates
AGENCY: Copyright Office, Library of Congress.
[[Page 16307]]
ACTION: Request for notices of intention to participate, and
announcement of negotiation period.
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SUMMARY: The Copyright Office of the Library of Congress announces the
deadline for filing Notices of Intent to Participate in a CARP
proceeding to adjust the rates for the cable statutory license and
announces the dates of the 30-day negotiation period.
DATES: Comments on the petition and Notices of Intent to Participate
are due no later than April 29, 2005. The 30-day negotiation period
begins May 4, 2005 and ends on June 3, 2005. Written notification of
the status of settlement negotiations due no later than June 6, 2005.
ADDRESSES: If hand delivered by a private party, an original and five
copies of the comments on the petition, Notices of Intent to
Participate, and/or written notification of status of settlement
negotiations should be addressed to: Copyright Office General Counsel/
CARP, U.S. Copyright Office, James Madison Memorial Building, Room LM-
401, 101 Independence Avenue, SE., Washington, DC 20059-6000; then
delivered Monday through Friday, between 8:30 a.m. and 5 p.m., to the
Public Information Office located at the same address. If hand
delivered by a commercial courier (excluding Federal Express, United
Parcel Service and similar corporate courier services), an original and
five copies of the comments on the petition, Notices of Intent to
Participate, and/or written notification of status of settlement
negotiations should be addressed to: Copyright Office General Counsel/
CARP, Room 403, James Madison Memorial Building, 101 Independence
Avenue, SE., Washington, DC.; then delivered by a courier showing
proper identification, e.g., a valid driver's license, Monday through
Friday between 8:30 a.m. and 4 p.m. to the Congressional Courier
Acceptance Site (CCAS) located at Second and D Street, NE., Washington,
DC. If sent through the U.S. Postal Service, an original and five
copies of the comments on the petition, Notices of Intent to
Participate, and/or written notification of status of settlement
negotiations should be addressed to: Copyright Arbitration Royalty
Panel, 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 Services, etc., due to delays in
processing receipt of such deliveries.
FOR FURTHER INFORMATION CONTACT: Tanya M. Sandros, Associate General
Counsel, or Abioye E. Oyewole, CARP Specialist. Telephone: (202) 707-
8380. Telefax: (202) 252-3423.
SUPPLEMENTARY INFORMATION:
I. Background
Section 111 of the Copyright Act, title 17 of the United States
Code, grants a statutory copyright license to cable television systems
for the retransmission of over-the-air broadcast stations to their
subscribers. In exchange for the license, cable operators submit
royalties, along with statements of account detailing their
retransmissions, to the Copyright Office on a semi-annual basis. The
Office then deposits the royalties with the United States Treasury for
later distribution to copyright owners of the broadcast programming
retransmitted by cable systems.
A cable system calculates its royalty payments in accordance with
the statutory formula described in 17 U.S.C. 111(d). Royalty fees are
based upon the gross receipts received by a cable system from
subscribers receiving retransmitted broadcast signals. Section 111(d)
subdivides cable systems into three categories based on their gross
receipts: small, medium, and large. Small systems pay a fixed amount
without regard to the number of broadcast signals they retransmit,
while medium-sized systems pay a royalty within a specified range, with
a maximum amount, based on the number of signals they retransmit. Large
cable systems calculate their royalties according to the number of
distant broadcast signals which they retransmit to their
subscribers.\1\ Under this formula, a large cable system is required to
pay a specified percentage of its gross receipts for each distant
signal that it retransmits.
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\1\ For large cable systems which retransmit only local
broadcast stations, there is still a minimum royalty fee which must
be paid. This minimum fee is not applied, however, once the cable
system carries one or more distant signals.
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Congress established the gross receipts limitations that determine
a cable system's size and provided the gross receipts percentages
(i.e., the royalty rates) for distant signals. 17 U.S.C. 111(d)(1). It
also provided for adjustment of both the gross receipts limitations and
the distant signal rates. 17 U.S.C. 801(b)(2). The limitations and
rates can be adjusted to reflect national monetary inflation, changes
in the average rates charged by cable systems for the retransmissions
of broadcast signals, or changes in certain cable rules of the Federal
Communications Commission in effect on April 15, 1976. 17 U.S.C.
801(b)(2)(A),(B),(C) and (D). Prior rate adjustments of the Copyright
Royalty Tribunal made under section 801(b)(2)(B) and (C) may also be
reconsidered at five-year intervals. 17 U.S.C. 803(b). The current
gross receipts limitations and rates are set forth in 37 CFR 256.2.
Rate adjustments are now made by a Copyright Arbitration Royalty Panel
(``CARP''), subject to review by the Librarian of Congress.\2\
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\2\ The Library is conducting this rate adjustment proceeding
under the CARP system as opposed to the new Copyright Royalty Judges
system adopted by Congress at the end of last year. See, infra.
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Section 803 of the Copyright Act provides that the gross receipts
limitations and royalty rates may be adjusted every five years, making
2005 a royalty adjustment year, upon the filing of a petition from a
party with a ``significant interest'' in the proceeding. If the
Librarian determines that a petitioner has a ``significant interest''
in the royalty rate or rates in which adjustment is requested, the
Librarian must convene a CARP to determine the adjustment. 17 U.S.C.
803(a)(1). Section 37 CFR 251.63 of the CARP rules provides that the
Librarian shall designate a 30-day negotiation period to allow
interested parties to settle differences regarding the adjustment of
cable rates before commencement of a formal CARP proceeding.
II. Petitions
This is a window year for filing. On January 10, 2005, the Library
received a petition to adjust the cable rates and gross receipts
limitations from Joint Sports Claimants and Program Suppliers seeking
commencement of the 30-day voluntary negotiation period under Sec.
251.63. See http://www.copyright.gov/carp/cable-rate-petition.pdf. On
January 26, 2005, the Office published a Federal Register notice
requesting public comments as to whether or not it was appropriate and/
or required that the 2005 cable rate adjustment be resolved through the
CARP process set forward under chapter 8 of the Copyright Act prior to
the passage of the Copyright Royalty Distribution and Reform Act
(``CRDRA''), or whether the petition filed by the Joint Sports
Claimants and the Program Suppliers should be terminated and
transferred to the Copyright Royalty Judges under the CRDRA. 70 FR 3738
(January 26, 2005). In response, on February 16, 2005, the Library
received one comment from the Copyright Owners requesting a CARP for
the resolution of the 2005 cable rate adjustment. Having received no
comments in opposition and persuaded that it is appropriate to conduct
a CARP
[[Page 16308]]
Proceeding, the Library now seeks comment consistent with 17 U.S.C.
803(a)(1) as to whether Joint Sports Claimants and Program Suppliers
have a significant interest in the adjustment of the cable rates.
Comments are due no later than April 29, 2005.
III. Negotiation Period and Notices of Intent To Participate
As discussed above, the Library's rules require that a 30-day
negotiation period be prescribed by the Librarian to enable the parties
to a rate adjustment proceeding to settle their differences. 37 CFR
251.63(a). The rules also require interested parties to file Notices of
Intent to Participate with the Library. 37 CFR 251.45(a). Consequently,
in addition to requiring parties to file comments on the Joint Sports
Claimants' and Program Suppliers' petition, the Library is directing
parties to file their Notices of Intent to Participate on the same day,
April 29, 2005. Failure to file a timely Notice of Intent to
Participate will preclude a party from further participation in this
proceeding.
The 30-day negotiation period shall begin on May 4, 2005, and
conclude on June 3, 2005. Those parties that have filed Notices of
Intent to Participate are directed to submit to the Library a written
notification of the status of their settlement negotiations no later
than June 6, 2005. If, after the submission of these notifications it
is clear that no settlement has been reached, the Library will issue a
scheduling order for a CARP proceeding to resolve this rate adjustment
proceeding.
Dated: March 25, 2005.
David O. Carson,
General Counsel.
[FR Doc. 05-6311 Filed 3-29-05; 8:45 am]
BILLING CODE 1410-33-P