Federal Register / Vol. 76, No. 33 / Thursday, February 17, 2011 / Rules and Regulations 9229 

procedures; and related management 

systems practices) that are developed or 

adopted by voluntary consensus 

standards bodies. 

This rule does not use technical 

standards. Therefore, we did not 

consider the use of voluntary consensus 

standards. 

Environment 

We have analyzed this rule under 

Department of Homeland Security 

Management Directive 023–01 and 

Commandant Instruction M16475.lD, 

which guide the Coast Guard in 

complying with the National 

Environmental Policy Act of 1969 

(NEPA) (42 U.S.C. 4321–4370f), and 

have concluded this action is one of a 

category of actions which do not 

individually or cumulatively have a 

significant effect on the human 

environment. This rule is categorically 

excluded, under figure 2–1, paragraph 

(34)(g), of the Instruction. This rule 

involves the establishment of a safety 

zone. 

An environmental analysis checklist 

and a categorical exclusion 

determination are available in the 

docket where indicated under 

ADDRESSES. 

List of Subjects in 33 CFR Part 165 

Harbors, Marine safety, Navigation 

(water), Reporting and recordkeeping 

requirements, Security measures, 

Waterways. 

For the reasons discussed in the 

preamble, the Coast Guard amends 33 

CFR part 165 as follows: 

PART 165—REGULATED NAVIGATION 

AREAS AND LIMITED ACCESS AREAS 

■ 1. The authority citation for part 165 

continues to read as follows: 

Authority: 33 U.S.C. 1226, 1231; 46 U.S.C. 

Chapter 701, 3306, 3703; 50 U.S.C. 191, 195; 

33 CFR 1.05–1, 6.04–1, 6.04–6, 160.5; Pub. L. 

107–295, 116 Stat. 2064; Department of 

Homeland Security Delegation No. 0170.1. 

■ 2. Add § 165.T11–392 to read as 

follows: 

§ 165.T11–392 Safety Zone; Havasu 

Landing Regatta, Colorado River, Lake 

Havasu Landing, CA. 

(a) Location. The limits of the safety 

zone will be the navigable waters of 

Lake Havasu bounded by the following 

coordinates: from the California 

shoreline in position 34°29.40′ N 

114°24.12′ W to the northern corner 900 

yards east in position 34°29.40′ N 

114°23.39′ W to the southern corner 

1,400 yards south in position 34°29.0′ N 

114°23.39′ W to the California shoreline 

in position 34°29.0′ N 114°24.12′ W. 

(b) Enforcement Period. This section 

will be in effect from 8 a.m. on February 

19th to 4 p.m. on February 20, 2011. It 

will be enforced from 8 a.m. to 4 p.m. 

each day (February 19, 2011 and 

February 20, 2011). If the event 

concludes prior to the scheduled 

termination time, the Captain of the Port 

will cease enforcement of this safety 

zone and will announce that fact via 

Broadcast Notice to Mariners. 

(c) Definitions. The following 

definition applies to this section: 

Designated representative, means any 

commissioned, warrant, or petty officer 

of the Coast Guard on board Coast 

Guard, Coast Guard Auxiliary, and 

local, state, and federal law enforcement 

vessels who have been authorized to act 

on the behalf of the Captain of the Port. 

(d) Regulations. (1) Entry into, transit 

through or anchoring within this safety 

zone is prohibited unless authorized by 

the Captain of the Port of San Diego or 

his designated representative. 

(2) Mariners requesting permission to 

transit through the safety zone may 

request authorization to do so from the 

Patrol Commander (PATCOM). The 

PATCOM may be contacted on VHF–FM 

Channel 16. 

(3) All persons and vessels shall 

comply with the instructions of the 

Coast Guard Captain of the Port or his 

designated representative. 

(4) Upon being hailed by U.S. Coast 

Guard patrol personnel by siren, radio, 

flashing light, or other means, the 

operator of a vessel shall proceed as 

directed. 

(5) The Coast Guard may be assisted 

by other federal, state, or local agencies. 

Dated: February 3, 2011. 

T.H. Farris, 

Captain, U.S. Coast Guard, Captain of the 

Port San Diego. 

[FR Doc. 2011–3566 Filed 2–16–11; 8:45 am] 

BILLING CODE 9110–04–P 

LIBRARY OF CONGRESS 

Copyright Office 

37 CFR Part 201 

[Docket No. RM 2009–4] 

Administration of Copyright Office 

Deposit Accounts 

AGENCY: Copyright Office, Library of 

Congress. 

ACTION: Final rule. 

SUMMARY: The Copyright Office is 

amending its regulations to set the 

minimum level of activity required to 

hold a deposit account at 12 

transactions per year; require deposit 

account holders to maintain a minimum 

balance in that account; require the 

closure of a deposit account the second 

time it is overdrawn within any 12- 

month period; and offer deposit account 

holders the option of automatic 

replenishment of their account via their 

bank account or credit card. 

DATES: Effective Date: May 1, 2011. 

FOR FURTHER INFORMATION CONTACT: 

Tanya Sandros, Deputy General Counsel 

or Chris Weston, Attorney Advisor. 

Copyright GC/I&R, P.O. Box 70400, 

Washington, DC 20024. Telephone: 

(202) 707–8380. Telefax: (202) 707– 

8366. All prior Federal Register notices 

and public comments in this docket are 

available at http://www.copyright.gov/ 

docs/deposit-acct/eservice/. 

SUPPLEMENTARY INFORMATION: 

Deposit Account Background 

The Copyright Office maintains a 

system of deposit accounts for those 

who frequently use its services. An 

individual or entity may establish a 

deposit account, make advance deposits 

into that account, and charge copyright 

fees against the balance instead of 

sending separate payments with 

applications and other requests for 

services. This process has proven to be 

more efficient and less expensive for 

both the Office and the applicant than 

sending separate payments to the 

Copyright Office for each application for 

registration or for other services. 

The goal of this Final Rule is to solve 

the problems associated with the 

suspension of paper registration 

applications for lack of deposit account 

funds. As explained in the October 8, 

2010 Federal Register Notice of 

Proposed Rulemaking (75 FR 62345), 

when the deposit account being used for 

payment has insufficient funds to 

process a paper application, the 

Copyright Office suspends processing of 

the application to notify the account 

holder that replenishment of the 

account is needed, and places the 

pending application and associated 

deposit copies in temporary storage. The 

suspended applications, which may 

number 3,000 or more at any one time, 

must be reviewed regularly by Office 

staff to locate those that are newly 

funded and reprocess them. Thus, 

insufficient deposit account funding 

effectively doubles—at a minimum—the 

time Office staff must spend processing 

an application, time that would 

otherwise be more profitably spent on 

processing properly filed claims. 

On average, one to three percent of 

paper applications for registration are 

suspended each year due to lack of 


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9230 Federal Register / Vol. 76, No. 33 / Thursday, February 17, 2011 / Rules and Regulations 

sufficient deposit account funds. In 

fiscal 2010, between 6,000 and 7,000 

applications were carried on hold 

monthly for insufficient deposit account 

funds. The Office has expended 

substantial resources managing these 

suspended applications and deposits. 

While the Office assesses service 

charges for deposit account overdrafts 

($165) and dishonored deposit account 

replenishment checks ($85), see 37 CFR 

201.3(d), these penalties do not recover 

all costs or solve the fundamental 

problems associated with the additional 

handling and the delay in processing 

underfunded applications for 

registration. 

First Notice of Proposed Rulemaking 

and Public Comments 

On July 14, 2009, the Copyright Office 

published a notice of proposd 

rulemaking (NPRM) in the Federal 

Register, 74 FR 33930, proposing that 

the problem of insufficient deposit 

account funds for paper applications 

should be solved by requiring all 

deposit account holders to file their 

applications via eService, the Office’s 

electronic registration system. An 

application for registration made via 

eService cannot be completed until the 

method of payment is verified by, for 

example, ensuring that sufficient funds 

are present in the deposit account and 

payment has been made. This approach 

would have been much more efficient 

than filing paper applications, which 

must go through a number of processing 

steps before the validity of the proffered 

method of payment can be ascertained. 

In addition, the proposal noted that 

electronic registration benefits 

applicants in that it offers a lower fee 

than paper registrations ($35 instead of 

$65) and helps to establish an earlier 

effective date of registration. 

The July 2009 NPRM garnered six 

public comments, three of which 

supported the electronic filing 

requirement and three of which 

opposed it. Most notably, the Motion 

Picture Association of America (MPAA) 

challenged the initial proposed rule as 

premature and suggested an alternative 

whereby each deposit account holder 

would be charged an up-front $100 fee 

that would be held as a kind of security 

deposit with which to dispose of 

underfunded registration applications. 

MPAA comment 2009 at 2. According to 

the MPAA proposal, if an applicant has 

insufficient funds in its deposit account 

to pay for a paper application, the 

Copyright Office should close the 

deposit account and use the security 

deposit to pay for returning the 

application to the applicant. The MPAA 

argued that rights-holders should not be 

denied the option of continuing to use 

paper applications because of the 

actions of ‘‘irresponsible’’ deposit 

account holders. See MPAA comment 

2009 at 4. 

The MPAA and two other 

commenters also expressed skepticism 

with the efficiency and security of the 

eService system. A full discussion of 

these issues appears in the Office’s 

October 8, 2010 NPRM. 

The Copyright Office carefully 

considered each of the comments 

submitted in response to the July 9, 

2009 NRPM, and was persuaded that 

mandatory electronic application was 

not the most appropriate solution to its 

problem of underfunded paper 

applications. While the Office still felt 

strongly that electronic registration is 

more efficient than paper registration, 

and redounds to the benefit of 

applicants as much as to the benefit of 

the Office, it concluded that mandatory 

electronic registration was an overbroad 

solution to the specific problems 

described. See 75 FR 62345, 62347–8. 

The final rule requiring a minimum 

deposit account balance and optional 

automatic replenishment discussed 

herein is a more targeted response to the 

problems facing the Office. 

Second Notice of Proposed Rulemaking; 

Comments; Final Rule 

After considering the comments filed 

in response to the July 2009 NPRM, the 

Copyright Office explored other options 

for addressing its problems with 

underfunded deposit accounts and in 

October 2010 proposed a number of 

administrative requirements to solve the 

problem. The Office received two 

comments favorable to the proposal— 

from Author Services, Inc. and the 

MPAA—and has decided to adopt the 

proposed regulatory amendments with 

two alterations. Specifically, the Office 

is amending its regulations to (1) Set the 

minimum level of activity required to 

hold a deposit account at 12 

transactions per year; (2) require deposit 

account holders to maintain a minimum 

balance in that account; (3) mandate the 

closure of a deposit account the second 

time it is overdrawn within any 12- 

month period; and (4) offer deposit 

account holders the option of automatic 

replenishment of their account via their 

bank account or credit card. 

1. Mandatory Minimum Deposit 

Account Activity and Balance 

The Deposit Account regulation—37 

CFR 201.6(b)—currently reads, ‘‘Persons 

or firms having a considerable amount 

of business with the Copyright Office 

may, for their own convenience, prepay 

copyright expenses by establishing a 

Deposit Account.’’ 

The words ‘‘a considerable amount of 

business’’ will be replaced by ‘‘12 or 

more transactions a year’’ in order to 

more clearly delineate the intended 

users of the deposit account program. 

The program’s goal is to better serve 

rights-holders who engage in regular, 

multiple registrations and other 

transactions with the Copyright Office 

every year, and the new language 

reflects this intent with specificity. The 

12 transaction minimum is also 

consistent with prior Copyright Office 

policy and conforms to the typical 

minimum level of activity of current 

deposit account holders. 

The Office is also instituting a 

requirement that every deposit account 

holder must establish, in consultation 

with the Copyright Office, a minimum 

balance for its deposit account. Ideally, 

this balance will be the lowest amount 

a deposit account holder can have in his 

or her account and still be able to pay 

for the regular number of copyright 

registration applications. This amount 

will be set collaboratively so that both 

the account holder and the office are 

comfortable that it will be sufficient for 

the account holder’s expected activity. 

However, each account must have at 

least a minimum balance of $450. 

In the event a deposit account goes 

below its minimum balance, the 

Copyright Office will automatically 

notify the account holder of this 

situation. The minimum balance 

requirement is intended to act primarily 

as an indicator to the account holder 

that the account may need 

replenishment; going below a minimum 

balance will not in itself expose the 

account holder to any adverse 

consequences. 

2. Consequences of Overdrawing a 

Deposit Account 

Upon the second occasion that a 

deposit account is overdrawn—meaning 

the second time there is not enough 

money in an account to pay the fee for 

a submitted registration—the account 

will be closed. The MPAA, in its 

comment on the October 2010 notice, 

inquired ‘‘whether it might be 

appropriate to specify some time period 

during which two overdrafts would 

result in the closure of a deposit 

account.’’ MPAA comment 2010 at 2. 

The Copyright Office finds merit in this 

suggestion, and is adding a proviso that, 

in order to result in account closure, 

both overdrafts must occur within the 

span of 12 months. This addition will 

help ensure that the penalty for two 

overdrafts affects only habitual abusers. 

Additionally, the overdraft rule in 


jlentini on DSKJ8SOYB1PROD with RULES
Federal Register / Vol. 76, No. 33 / Thursday, February 17, 2011 / Rules and Regulations 9231 

practice will only affect deposit account 

holders who use paper applications, 

because eService will not allow an 

application to be submitted without 

sufficient funds. 

However, a deposit account holder 

whose account is closed because it has 

been overdrawn twice is not foreclosed 

from using a deposit account in the 

future. The deposit account holder may 

re-open the closed account on the 

condition that it is funded through the 

automatic replenishment option. This 

requirement is to protect the account 

holder from the risk of overdrawing 

again and to protect the Copyright 

Office from the expense of handling 

suspended applications in the future. 

3. Voluntary Automatic Replenishment 

The Copyright Office will offer a 

voluntary automatic replenishment 

program to all deposit account holders. 

Under this program, the deposit account 

holder may provide pre-authorization to 

the Copyright Office to replenish the 

account from the account holder’s credit 

card or bank account. Replenishment 

will take place when the deposit 

account goes below its minimum 

balance, at which time the Office will 

immediately notify the account holder 

that the account has fallen below the 

minimal balance and that the account 

will be replenished in accordance with 

the automatic replenishment agreement. 

The account holder will determine the 

amount of replenishment at the time the 

account holder enters the program. 

Comments Received in Response to 

Question Regarding the Continued 

Availability of Deposit Accounts 

In its July 15th, 2009 NPRM, the 

Copyright Office sought public 

comment on whether it should cease 

offering deposit accounts altogether. It 

noted that, in an era when paper 

applications and payment via check 

were the norm, a separate, simplified 

deposit account system presented 

attractive efficiencies to frequent 

applicants and to the Office. It also 

pointed out that in an era of electronic 

registration and payment via corporate 

or other credit cards, the administrative 

costs of maintaining a separate deposit 

account system are no longer clearly 

offset by its advantages; hence, the 

reason for the Office’s inquiry 

concerning abolition of the deposit 

account system. 

Three of the four commenters who 

addressed this question argued that 

eliminating deposit accounts would be 

harmful. Thus, the Copyright Office 

acknowledged in its October 8, 2010 

notice that deposit accounts remain a 

useful and efficient option for copyright 

owners who frequently use its services, 

including, but not limited to, 

registration, and announced that it will 

continue to offer deposit accounts for 

the foreseeable future, reserving its 

prerogative to revisit the question of 

their utility and cost to the Office at a 

later time. 

At this time, the Office also notes that 

the change in policy for administering 

Deposit Accounts will increase the 

effectiveness and efficiency of the 

system for the Office and eliminate most 

of the problems that generated the 

initial questions. Hence, in light of the 

comments from the rights-holders and 

the new amendments announced today, 

the Office will continue to offer Deposit 

Accounts. 

List of Subjects in 37 CFR Part 201 

Copyright, General provisions. 

Final Regulation 

In consideration of the foregoing, the 

Copyright Office amends 37 CFR Ch. II 

as follows: 

PART 201—GENERAL PROVISIONS 

■ 1. The authority citation for part 201 

continues to read as follows: 

Authority: 17 U.S.C. 702, 708(c). 

■ 2. In § 201.6, revise paragraph (b) to 

read as follows: 

§ 201.6 Payment and refund of Copyright 

Office fees. 

* * * * * 

(b) Deposit accounts. (1) Persons or 

firms having 12 or more transactions a 

year with the Copyright Office may 

prepay copyright expenses by 

establishing a Deposit Account. The 

Office and the Deposit Account holder 

will cooperatively determine an 

appropriate minimum balance for the 

Deposit Account which, in no case, can 

be less than $450, and the Office will 

automatically notify the Deposit 

Account holder when the account goes 

below that balance. 

(2) The Copyright Office will close a 

Deposit Account the second time the 

Deposit Account holder overdraws his 

or her account within any 12-month 

period. An account closed for this 

reason can be re-opened only if the 

holder elects to fund it through 

automatic replenishment. 

(3) In order to ensure that a Deposit 

Account’s funds are sufficiently 

maintained, a Deposit Account holder 

may authorize the Copyright Office to 

automatically replenish the account 

from the holder’s bank account or credit 

card. The amount by which a Deposit 

Account will be replenished will be 

determined by the deposit account 

holder. Automatic replenishment will 

be triggered when the Deposit Account 

goes below the minimum level of 

funding established pursuant to 

paragraph (b)(1) of this section, and 

Deposit Account holders will be 

automatically notified that their 

accounts will be replenished. Funding 

through automatic replenishment is 

required if a Deposit Account holder, 

who has had an account closed because 

it has been overdrawn twice within any 

12 month period, wishes to re-open the 

account. 

* * * * * 

Dated: February 7, 2011. 

Maria Pallante, 

Acting Register of Copyrights. 

Approved by 

James H. Billington, 

The Librarian of Congress. 

[FR Doc. 2011–3598 Filed 2–16–11; 8:45 am] 

BILLING CODE 1410–30–P 

POSTAL SERVICE 

39 CFR Part 111 

New Customs Declarations Label 

Requirements 

AGENCY: Postal ServiceTM. 

ACTION: Final rule. 

SUMMARY: The Postal Service is revising 

the Mailing Standards of the United 

States Postal Service, Domestic Mail 

Manual (DMM®) 608.2.4 to require all 

mailpieces containing goods that enter 

the Customs Territory of the United 

States (CTUS), from outside the CTUS, 

to bear a customs declaration label. 

Additionally, the Postal Service updates 

the standards for items weighing 16 

ounces or more when sent to, from, or 

between, and in some circumstances, 

within certain U.S. territories, 

possessions, and Freely Associated 

States. 

DATES: Effective Date: June 6, 2011. 

FOR FURTHER INFORMATION CONTACT: Rick 

Klutts at 813–877–0372. 

SUPPLEMENTARY INFORMATION: Consistent 

with the Code of Federal Regulations, 

Title 19, Part 145—U.S. Customs and 

Border Protection, Department of 

Homeland Security, the Postal Service 

will require that all mailpieces 

containing goods that enter the CTUS, 

from outside the CTUS, to bear a 

customs declaration label. In addition, 

to ensure compliance with safety and 

security requirements of the United 

States Postal Inspection Service®, we 

are updating our standards for items 

weighing 16 ounces or more (regardless 


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