[Federal Register: January 5, 2006 (Volume 71, Number 3)]
[Notices]
[Page 624-625]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr05ja06-51]
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LIBRARY OF CONGRESS
Copyright Office
[Docket No. 2005-5 CARP]
Notice of Intent To Audit
AGENCY: Copyright Office, Library of Congress.
ACTION: Public notice.
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SUMMARY: The Copyright Office of the Library of Congress is announcing
receipt of eleven notices of intent to audit eligible nonsubscription
and new subscription services that transmit sound recordings under
statutory licenses. The audits intend to verify statements of account
for the years 2002, 2003, and 2004.
FOR FURTHER INFORMATION CONTACT: Tanya M. Sandros, Associate General
Counsel, or Gina Giuffreda, Attorney-Advisor, Copyright Arbitration
Royalty Panel (CARP), P.O. Box 70977, Southwest Station, Washington, DC
20024-0977. Telephone: (202) 707-8380. Telefax: (202) 252-3423.
SUPPLEMENTARY INFORMATION: Section 106(6) of the Copyright Act, title
17 of the United States Code, gives the copyright owner of a sound
recording the right to perform the sound recording publicly by means of
a digital audio transmission, subject to certain limitations. Among
these limitations are certain exemptions and a statutory license which
allows for the public performance of sound recordings as part of
``eligible nonsubscription transmissions'' and digital transmissions
made by ``new subscription services.'' \1\ 17 U.S.C. 114. Moreover,
these services may make any necessary ephemeral reproductions to
facilitate the digital transmission of the sound recording under a
second license set forth in section 112(e) of the Copyright Act. Use of
these licenses requires that services make payments of royalty fees to
and file reports of sound recording performances with SoundExchange.
SoundExchange is a collecting rights entity that was designated by the
Librarian of Congress to collect statements of account and royalty fee
payments from services and distribute the royalty fees to copyright
owners and performers entitled to receive such royalties under sections
112(e) and 114(g) following a proceeding \2\ before a Copyright
Arbitration Royalty Panel (``CARP'')--the entity responsible for
setting rates and terms for use of the section 112 and section 114
licenses prior to the passage of the Copyright Royalty and Distribution
Reform Act of 2004
[[Page 625]]
(``CRDRA''), Public Law No. 108-419, 118 Stat. 2341.
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\1\ An ``eligible nonsubscription transmission'' is a
noninteractive digital audio transmission which, as the name
implies, does not require a subscription for receiving the
transmission. The transmission must also be made as a part of a
service that provides audio programming consisting in whole or in
part of performances of sound recordings the primary purpose of
which is to provide audio or entertainment programming, but not to
sell, advertise, or promote particular goods or services. See 17
U.S.C. 114(j)(6).
A ``new subscription service'' is ``a service that performs
sound recordings by means of noninteractive subscription digital
audio transmissions and that is not a preexisting subscription or a
preexisting satellite digital audio radio service.'' 17 U.S.C.
114(j)(8).
\2\ See 69 FR 5693 (February 6, 2004).
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This Act, which the President signed into law on November 30, 2004,
and which became effective on May 31, 2005, amends the Copyright Act,
title 17 of the United States Code, by phasing out the CARP system and
replacing it with three permanent Copyright Royalty Judges (``CRJs'').
Consequently, the CRJs will carry out the functions heretofore
performed by the CARPs, including the adjustment of rates and terms for
certain statutory licenses such as the section 114 and 112 licenses.
However, section 6(b)(3) of the Act states in pertinent part:
[t]he rates and terms in effect under section 114(f)(2) or
112(e) * * * on December 30, 2004, for new subscription services
[and] eligible nonsubscription services * * * shall remain in effect
until the later of the first applicable effective date for successor
terms and rates * * * or such later date as the parties may agree or
the Copyright Royalty Judges may establish.
Successor rates and terms for these licenses have not yet been
established. Accordingly, the terms of the section 114 and 112
licenses, as currently constituted, are still in effect.
One of the current terms, set forth in Sec. 262.6 of title 37 of
the Code of Federal Regulations, states that SoundExchange, as the
Designated Agent, may conduct a single audit of a Licensee for the
purpose of verifying their royalty payments. As a preliminary matter,
the Designated Agent is required to submit a notice of its intent to
audit a Licensee with the Copyright Office and serve this notice on the
service to be audited. 37 CFR 262.6(c).
On December 23, 2005, SoundExchange filed with the Copyright Office
eleven notices of intent to audit the following eligible
nonsubscription and new subscription services for the years 2002, 2003,
and 2004: Bonneville International Corporation; \3\ Susquehanna Radio
Corp.; \4\ RealNetworks, Inc.; \5\ Clear Channel Communications, Inc.;
\6\ America Online, Inc.; \7\ Beethoven Radio; \8\ MTV Networks; \9\
Microsoft Corporation; \10\ Live365, Inc.; \11\ Cox Radio Interactive;
\12\ and Yahoo!, Inc. \13\ As stated in Sec. 262.6(c), the Copyright
Office then is required to publish a notice in the Federal Register
within thirty days of receipt of the filing announcing the Designated
Agent's intent to conduct an audit.
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\3\ A copy of the Notice of Intent to Audit Bonneville
International Corporation is posted on the Copyright Office website
at http://www.copyright.gov/carp/bonneville-notice.pdf.
\4\ A copy of the Notice of Intent to Audit Susquehanna Radio
Corp. is posted on the Copyright Office website at http://www.copyright.gov/carp/susquehanna-notice.pdf
.
\5\ A copy of the Notice of Intent to Audit RealNetworks, Inc.
is posted on the Copyright Office website at http://www.copyright.gov/carp/realnetworks-notice.pdf
.
\6\ A copy of the Notice of Intent to Audit Clear Channel
Communications, Inc. is posted on the Copyright Office website at
http://www.copyright.gov/carp/clearchannel-notice.pdf.
\7\ A copy of the Notice of Intent to Audit America Online, Inc.
is posted on the Copyright Office website at http://www.copyright.gov/carp/aol-notice.pdf
.
\8\ A copy of the Notice of Intent to Audit Beethoven Radio is
posted on the Copyright Office website at http://www.copyright.gov/carp/beethoven-notice.pdf
.
\9\ A copy of the Notice of Intent to Audit MTV Networks is
posted on the Copyright Office website at http://www.copyright.gov/carp/mtv-notice.pdf
.
\10\ A copy of the Notice of Intent to Audit Microsoft
Corporation is posted on the Copyright Office website at http://www.copyright.gov/carp/microsoft-notice.pdf
.
\11\ A copy of the Notice of Intent to Audit Live365, Inc. is
posted on the Copyright Office website at http://www.copyright.gov/carp/live365-notice.pdf
.
\12\ A copy of the Notice of Intent to Audit Cox Radio
Interactive is posted on the Copyright Office website at http://www.copyright.gov/carp/coxradio-notice.pdf
.
\13\ A copy of the Notice of Intent to Audit Yahoo!, Inc. is
posted on the Copyright Office website at http://www.copyright.gov/carp/yahoo-notice.pdf
.
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In accordance with this regulation, the Office is publishing
today's notice to fulfill this requirement with respect to
SoundExchange's eleven notices of intent to audit identified herein.
Dated: December 30, 2005.
Tanya M. Sandros,
Associate General Counsel.
[FR Doc. E5-8309 Filed 1-4-06; 8:45 am]
BILLING CODE 1410-33-P