[Federal Register: March 17, 2008 (Volume 73, Number 52)]
[Rules and Regulations]
[Page 14183-14185]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr17mr08-9]
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LIBRARY OF CONGRESS
Copyright Office
37 CFR Part 258
[Docket No. RM 2008-3]
Section 119 and the Changes in the Consumer Price Index
AGENCY: Copyright Office, Library of Congress.
ACTION: Final rule.
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[[Page 14184]]
SUMMARY: The Copyright Office makes royalty rate adjustments for
satellite carriers based upon changes in the Consumer Price Index.
EFFECTIVE DATE: March 17, 2008. These rates are applicable for the rate
period of January 1, 2008, through December 31, 2008.
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 of the
Office's adoption of royalty rate adjustments 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 Section 119 license. One of the
amendments sets forth a process for adjusting the royalty fees paid by
satellite carriers for retransmitting analog television networks and
superstations. 17 U.S.C. 119(c)(1). The law directed the Librarian of
Congress to publish a notice in the Federal Register announcing the
initiation of a voluntary negotiation period, the result of which may
be a rate settlement between the parties. 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). The Library
subsequently 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. Subpart (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. Similarly, for viewing in commercial
establishments, the 2007 rate per subscriber per month for viewing
distant superstations in commercial establishments shall also 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 SHVERA amendment to Section 119 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 initial rates were the rates set by the Librarian in
1997 for the retransmission of analog broadcast signals, 37 CFR
258.3(b)(1) and (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 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). Consequently, the Library adopted the rates as set
forth in the voluntary agreement as final. 70 FR 39178 (July. 7, 2005).
The terms and conditions of the agreement were codified at Section
258.4 of the Copyright Office's rules. Subpart (d) of the rule states
the royalty rate for secondary transmission of digital signals of
broadcast stations by satellite carriers for the first three years of
the licensing period and the process for readjusting the rates for the
last two years of the five year licensing period (2008 and 2009).
The Copyright Office's regulations prescribe that the 2008 rates
should be adjusted according to the following schedule. For private
home viewing, the 2007 rate per subscriber per month for distant
superstations and network stations is to 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 is to 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.
2008 rates. In December 2007, the Copyright Office published a
notice in the Federal Register announcing that it will 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
[[Page 14185]]
consumers from January 2007 to January 2008. 72 FR 68198 (Dec. 4,
2007). Through this final rule, we hereby announce those changes.
The change in the cost of living as determined by the Consumer
Price Index (all consumers, all items) for the relevant period is 4.3%
(January 2007 figure was 202.4; the figure for January 2008 is 211.080,
based on 1982-1984 = 100 as a reference base). Rounding off to the
nearest cent, the new rates are as follows. For private home viewing of
analog stations: 24 cents per subscriber per month for distant
superstations and 24 cents per subscriber per month for distant network
stations. For viewing in commercial establishments: 48 cents per
subscriber per month for distant superstations. For private home
viewing of digital stations: 24 cents per subscriber per month for
distant superstations and 24 cents per subscriber per month for distant
network stations. For viewing in commercial establishments: 48 cents
per subscriber per month for distant superstations.
List of Subjects in 37 CFR Part 258
Copyright, Satellite, Television.
Final Regulations
0
For the reasons set forth above, the Copyright Office amends 37 CFR
chapter II as follows:
PART 258--ADJUSTMENT OF ROYALTY FEE FOR SECONDARY TRANSMISSIONS BY
SATELLITE CARRIERS
0
1. The authority citation for part 258 continues to read as follows:
Authority: 17 U.S.C. 119, 702, 802.
0
2. Section 258.3(g) is revised to read as follows:
Sec. 258.3 Royalty fee for secondary transmission of analog signals
of broadcast stations by satellite carriers.
* * * * *
(g) Commencing January 1, 2008, the royalty rate for secondary
transmission of analog signals of broadcast stations by satellite
carriers shall be as follows:
(1) For private home viewing--
(i) 24 cents per subscriber per month for distant superstations.
(ii) 24 cents per subscriber per month for distant network
stations.
(2) For viewing in commercial establishments, 48 cents per
subscriber per month for distant superstations.
* * * * *
0
3. Section 258.4(d) is revised to read as follows:
Sec. 258.4 Royalty fee for secondary transmission of digital signals
of broadcast stations by satellite carriers.
* * * * *
(d) Commencing January 1, 2008, the royalty rate for secondary
transmission of digital signals of broadcast stations by satellite
carriers shall be as follows:
(1) For private home viewing--
(i) 24 cents per subscriber per month for distant superstations.
(ii) 24 cents per subscriber per month for distant network
stations.
(2) For viewing in commercial establishments, 48 cents per
subscriber per month for distant superstations.
* * * * *
Dated: March 11, 2008
Marybeth Peters,
Register of Copyright.
[FR Doc. E8-5301 Filed 3-14-08; 8:45 am]
BILLING CODE 1410-30-S