[Federal Register Volume 73, Number 164 (Friday, August 22, 2008)]
[Notices]
[Pages 49708-49709]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-19570]
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LIBRARY OF CONGRESS
Copyright Royalty Board
[Docket No. 2006-5 CRB DD 2002-2004]
Distribution of the 2002, 2003, and 2004 Digital Audio Recording
Technology Royalty Funds
AGENCY: Copyright Royalty Board, Library of Congress.
ACTION: Notice announcing commencement of proceeding with request for
Petitions to Participate.
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SUMMARY: The Copyright Royalty Judges are announcing the commencement
of the proceeding to determine the distribution of the digital audio
recording technology royalty fees in the 2002, 2003, and 2004 Musical
Works Funds. The Judges are also announcing the date by which a party
who wishes to participate in this proceeding must file its Petition to
Participate and the accompanying $150 filing fee.
DATES: Petitions to Participate and the filing fee are due no later
than September 22, 2008.
ADDRESSES: An original, five copies, and an electronic copy in Portable
Document Format (PDF) on a CD of the Petition to Participate, along
with the $150 filing fee, may be delivered to the Copyright Royalty
Board by either mail or hand delivery. Petitions to Participate and the
$150 filing fee may not be delivered by an overnight delivery service
other than the U.S. Postal Service Express Mail. If by mail (including
overnight delivery), Petitions to Participate, along with the $150
filing fee, must be addressed to: Copyright Royalty Board, P.O. 70977,
Washington, DC 20024-0977. If hand delivered by a private party,
Petitions to Participate, along with the $150 filing fee, must be
brought to the Library of Congress, James Madison Memorial Building,
LM-401, 101 Independence Avenue, SE., Washington, DC 20559-6000. If
delivered by a commercial courier, Petitions to Participate, along with
the $150 filing fee, must be delivered to the Congressional Courier
Acceptance Site, located at 2nd and D Street, NE., Washington, DC. The
envelope must be addressed to: Copyright Royalty Board, Library of
Congress, James Madison Memorial Building, LM-403, 101 Independence
Avenue, SE., Washington, DC 20559-6000.
FOR FURTHER INFORMATION CONTACT: LaKeshia Brent, CRB Program
Specialist. Telephone: (202) 707-7658. Telefax: (202) 252-3423 or e-
mail at [email protected].
SUPPLEMENTARY INFORMATION:
Background
The Audio Home Recording Act of 1992 (the ``AHRA''), Public Law
102-563, requires manufacturers and importers to pay royalties on
digital audio recording devices and media 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 by the Copyright Royalty Judges (``Judges''), provided that the
interested copyright parties file a claim with the Copyright Royalty
Board
[[Page 49709]]
each year during the months of January and February. 17 U.S.C. 1005,
1007.
The AHRA provides that the royalties are divided between two funds:
the Sound Recordings Fund and the Musical Works Fund. The Sound
Recordings Fund receives 66\2/3\% of the royalties and the Musical
Works Fund receives the remaining 33\1/3%\. These fees are allocated
further to specific subfunds.
The Sound Recordings Fund consists of four subfunds: the Featured
Artists Subfund, the Copyright Owners Subfund, the Nonfeatured
Musicians Subfund, and the Nonfeatured Vocalists Subfund. The royalty
fees allocated to the Sound Recordings Funds are divided among these
four subfunds according to the percentages set out in section 1006 of
the Copyright Act. 17 U.S.C. 1006(b)(1). Similarly, the statute
prescribes that the royalty fees allocated to the Musical Works Fund be
divided equally between two subfunds, the Publishers Subfund and the
Writers Subfund. 17 U.S.C. 1006(b)(2).
Distribution of these fees may occur in one of two ways. The
interested copyright parties within each subfund may either negotiate
the terms of a settlement as to the division of royalty funds,\1\ or
the Copyright Royalty Judges may conduct a proceeding to determine the
distribution of the royalties that remain in controversy in each
subfund. See 17 U.S.C. 1006(c).
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\1\ For each of the claim years 2002, 2003, and 2004, the
interested copyright parties to the royalty fees in the Sound
Recordings Funds have negotiated a universal settlement agreement
among themselves as to the proportionate share that each party
receives from the subfunds; consequently, these funds have been
distributed.
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On May 19, 2006, the Judges received a motion filed jointly by
Broadcast Music, Inc., the American Society of Composers, Authors and
Publishers, SESAC, Inc., and the Harry Fox Agency (hereinafter ``the
Settling Parties'') asking the Judges to authorize a partial
distribution of 95% of the 2002, 2003, and 2004 digital audio recording
technology (``DART'') Musical Works Funds. The Settling Parties sought
the distribution under 17 U.S.C. 801(b)(3)(A), which provides that
royalty fees not subject to controversy may be distributed by the
Judges. Subsequently, on September 27, 2006, the Judges held a hearing
on the motion; and after considering the views of the claimants
participating in the hearing, including an objection to the motion by
one claimant, the Judges granted the motion, finding that retention of
5% of the 2002, 2003, and 2004 DART Musical Works Funds would be
sufficient to resolve any potential controversies as to the
distribution of royalties. See Order in Docket No. 2006-5 CRB DD 2002-
2004 (October 2, 2006). The Judges also determined that it would begin
a proceeding to resolve any existing controversies as to the remaining
5% of the 2002, 2003, and 2004 DART Musical Works Funds.\2\ Id. Today's
notice commences that proceeding.
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\2\ On July 1, 2008, the Settling Parties filed a motion
requesting commencement of the proceeding mentioned in the October
2, 2006, order.
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Commencement of Proceeding
Consistent with 17 U.S.C. 804(b)(8), the Judges determine that a
controversy exists as to the distribution of the 2002, 2003, and 2004
DART Musical Works Fund. We reach this determination, in this instance,
for two reasons. First, an objection to the motion for partial
distribution was raised by a claimant who participated in the September
27, 2006, hearing. Second, to date we have not received notification
that any settlements have been reached for any of these years, nor have
we received motions for final distribution.
The Judges are consolidating the consideration of the distribution
of the 2002, 2003, and 2004 DART Musical Works Funds into a single
proceeding because the issues regarding the distribution of the royalty
fees are similar, if not the same, for each year. Moreover, due to the
relatively low amount of funds for each year, consolidation provides a
cost savings to the parties and promotes administrative efficiencies.
Petitions To Participate
Petitions to Participate must provide all of the information
required by 37 CFR 351.1(b)(2). Participants also must identify by year
each subfund in the Musical Works Fund to which they are asserting a
claim to royalties. Petitions to Participate submitted by interested
parties whose claims do not exceed $1,000 \3\ must contain a statement
that the party will not seek a distribution of more than $1,000. No
filing fee is required for these parties. Interested parties with
claims exceeding one thousand dollars ($1,000), however, must submit a
filing fee of one hundred and fifty dollars ($150) with their Petition
to Participate or it will be rejected. Cash will not be accepted;
therefore, parties must pay the filing fee with a check or money order
made payable to the ``Copyright Royalty Board.'' If a check is returned
for lack of sufficient funds, the corresponding Petition to Participate
will be dismissed.
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\3\ The Copyright Royalty Judge Program Technical Corrections
Act, Public Law 109-303, changed the amount from $10,000 to $1,000.
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Further procedural matters, including scheduling, will be addressed
after Petitions to Participate have been received.
In accordance with 37 CFR 350.2 (Representation), only attorneys
who are members of the bar in one or more states and in good standing
will be allowed to represent parties before the Copyright Royalty
Judges, unless the party is an individual who represents herself or
himself.
Dated: August 18, 2008.
James Scott Sledge,
Chief United States Copyright Royalty Judge.
[FR Doc. E8-19570 Filed 8-21-08; 8:45 am]
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