[Federal Register: December 4, 2007 (Volume 72, Number 232)]
[Notices]
[Page 68198-68199]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr04de07-105]
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LIBRARY OF CONGRESS
Copyright Office
[Docket No. 2007-12]
Section 119 and the Changes in the Consumer Price Index
AGENCY: Copyright Office, Library of Congress.
ACTION: Notice of Rate Adjustment.
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SUMMARY: The Library of Congress, through the Copyright Office, is
announcing an upcoming royalty rate adjustment for satellite carriers
based upon changes in the Consumer Price Index.
FOR FURTHER INFORMATION CONTACT: Ben Golant, Assistant General Counsel,
and Tanya M. Sandros, General Counsel, Copyright GC/I&R, P.O. Box
70400, Washington, DC 20024. Telephone: (202) 707-8380. Telefax: (202)
707-8366.
SUPPLEMENTARY INFORMATION: Pursuant to Section 119(c) and our
implementing rules, we are hereby giving notice to the public that
royalty rates will be adjusted for the accounting period commencing
January 1, 2008, based on changes in the Consumer Price Index. This
action is consistent with voluntary agreements reached between
satellite carriers and copyright owners under the Copyright Act.
Section 119 and royalty payments for analog television signals. In
2004, Congress enacted the Satellite Home Viewer Extension and
Reauthorization Act (``SHVERA''). SHVERA extended for an additional
five years the statutory license for satellite carriers retransmitting
over-the-air television broadcast stations to their subscribers and
made a number of amendments to the license. One of the amendments to
Section 119 sets forth a process for adjusting the royalty fees paid by
satellite carriers for retransmitting analog television network and
superstations. 17 U.S.C. 119(c)(1). The law directs the Librarian of
Congress to publish notice in the Federal Register requesting satellite
carriers, distributors and copyright owners to submit to the Copyright
Office any voluntary agreements they have negotiated as to the
adjustment of the rates for analog stations. The Library published such
a notice on December 30, 2004, and, pursuant to the statute, requested
that any agreements be submitted no later than January 10, 2005. 69 FR
78482 (December 30, 2004).
The Office received one agreement, submitted jointly by the
satellite carriers DirecTV, Inc. and EchoStar Satellite L.L.C., the
copyright owners of motion pictures and syndicated television series
represented by the Motion Picture Association of America, and the
copyright owners of sports programming represented by the Office of the
Commissioner of Baseball. Section 119(c)(1)(D)(ii)(II) requires the
Library to ``provide public notice of the royalty fees from the
voluntary agreement and afford parties an opportunity to state that
they object to those fees.'' 17 U.S.C. 119(c)(1)(D)(ii)(II). The
Library published a Notice of Proposed Rulemaking on January 26, 2005,
to fulfill this requirement. 70 FR 3656 (January 26, 2005). No
objections were received. Consequently, the Library adopted the rates
in the voluntary agreement as final. 70 FR 17320 (Apr. 6, 2005).
The terms and conditions of the agreement were codified at Section
258.3 of the Copyright Office's rules. Paragraph (g) of this rule
specifically states, with regard to private home viewing, that the 2007
rate per subscriber per month for distant superstations and network
stations shall be adjusted for the amount of inflation as measured by
the change in the Consumer Price Index for all urban consumers from
January 2007 to January 2008. For viewing in commercial establishments,
the 2007 rate per subscriber per month for viewing distant
superstations in commercial establishments shall be adjusted for the
amount of inflation as measured by the change in the Consumer Price
Index for all urban consumers from January 2007 to January 2008.
Section 119 and royalty payments for digital television signals.
Another amendment to Section 119 promulgated by SHVERA set forth a
process, for the first time, for adjusting the royalty fees paid by
satellite carriers for the retransmission of digital broadcast signals.
17 U.S.C. 119(c)(2). The law set the initial rates as the rates set by
the Librarian in 1997 for the retransmission of analog broadcast
signals, 37 CFR 258.3(b)(1)-(2), reduced by 22.5 percent. 17 U.S.C.
119(c)(2)(A). These rates are to be adjusted in accordance with the
procedures set forth in Section 119(c)(1) as directed by Section
119(c)(2) 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 would be in place before the July 31, 2005,
deadline for satellite carriers to pay royalties for the first
accounting period of 2005. The Office granted the request and, pursuant
to Section 119(c)(1), published a Notice in the Federal Register
initiating a voluntary negotiation period and requesting that any
agreements reached during this period be submitted no later than April
25, 2005. See 70 FR 15368 (March 25, 2005).
In accordance with the March 25 Notice, the Office received one
agreement, submitted jointly by the satellite carriers EchoStar
Satellite L.L.C. and DirecTV, Inc., the copyright owners of motion
pictures and syndicated television series represented by the Motion
Picture Association of America, and the copyright owners of sports
programming represented by the Office of the Commissioner of Baseball.
The agreement proposed rates for the private home viewing of distant
superstations and distant network stations for the 2005-2009 period, as
well as the viewing of those signals for commercial establishments.
As required by statute, the Library provided public notice of the
royalty fees from the voluntary agreement and afforded parties an
opportunity to state that they object to those fees. 17 U.S.C.
119(c)(1)(D)(ii)(II). The Library published a Notice of Proposed
Rulemaking on May 17, 2005, to fulfill this requirement. 70 FR 28231
(May 17, 2005). The Office received no objections as a result of the
Notice. Consequently, the Library adopted the rates as set forth in the
voluntary agreement as final. 70 FR 39178 (Jul. 7, 2006).
The terms and conditions of the agreement were codified at Section
258.4 of the Copyright Office's rules. Paragraph (d) of the rule states
the royalty rate for secondary transmission of digital signals of
broadcast stations by satellite carriers and the process for
readjusting the rates for the accounting period commencing on January
1, 2008. For private home viewing, the 2007 rate per subscriber per
month for distant superstations and network stations shall be adjusted
for the amount of inflation
[[Page 68199]]
as measured by the change in the Consumer Price Index for all Urban
Consumers from January 2007 to January 2008. For viewing in commercial
establishments, the 2007 rate per subscriber per month for viewing
distant superstations in commercial establishments shall be adjusted
for the amount of inflation as measured by the change in the Consumer
Price Index for all Urban Consumers from January 2007 to January 2008.
Conclusion. The Office shall be adjusting the royalty rates for the
secondary transmission of the analog and digital transmissions of
network and superstations to reflect changes in the Consumer Price
Index for all Urban Consumers from January 2007 to January 2008.
Another notice will be published after January 1, 2008, to announce the
new CPI adjustments.
Dated: November 29, 2007.
Tanya M. Sandros,
General Counsel
[FR Doc. E7-23520 Filed 12-3-07; 8:45 am]
BILLING CODE 1410-30-S