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[Federal Register Volume 79, Number 10 (Wednesday, January 15, 2014)]
[Notices]
[Pages 2699-2700]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-00654]

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LIBRARY OF CONGRESS

Copyright Royalty Board

Notice of Intent To Audit

AGENCY: Copyright Royalty Board, Library of Congress.

ACTION: Public notice.

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SUMMARY: The Copyright Royalty Judges announce receipt of five notices 
of intent to audit the 2010, 2011, and 2012 statements of account 
submitted by Sirius XM Radio, Inc.; IMUV, Inc.; Crystal Media Networks; 
Pandora Media, Inc.; LoudCity LLC concerning the royalty payments made 
by each pursuant to two statutory licenses.

FOR FURTHER INFORMATION CONTACT: LaKeshia Keys, Program Specialist, by 
telephone at (202) 707-7658 or email at crb@loc.gov.

SUPPLEMENTARY INFORMATION: The Copyright Act, title 17 of the United 
States Code, grants to copyright owners of sound recordings the 
exclusive right to perform publicly sound recordings by means of 
certain digital audio transmissions, subject to limitations. 
Specifically, this right is limited by two statutory licenses. The 
section 114 license allows the public performance of sound recordings 
by means of digital audio transmissions by nonexempt noninteractive 
digital subscription services and eligible nonsubscription services. 17 
U.S.C. 114(f). The section 112 license allows a service to make any 
necessary ephemeral reproductions to facilitate the digital 
transmission of the sound recording, including the ephemeral recordings 
made by entities that transmit performances of sound recordings to 
business establishments, subject to the limitations set forth in 
section 114(d)(1)(C)(iv), to facilitate such transmissions. 17 U.S.C. 
112(e). The section 112 license also provides a means by which a 
transmitting entity with a statutory license under section 114(f) may 
make more than one phonorecord permitted under the exemption set forth 
in section 112(a). Id.
    Licensees may operate under these licenses provided they pay the 
royalty fees and comply with the terms set by the Copyright Royalty 
Judges (Judges). The rates and terms for the section 112 and 114 
licenses are set forth in 37 CFR parts 380 (eligible nonsubscription 
services (webcasters)), 382 (preexisting subscription services and 
preexisting satellite digital audio radio services), 383 (new 
subscription services), and 384 (business establishments). As part of 
the terms set for these licenses, the Judges designated SoundExchange, 
Inc., as the organization charged with collecting the royalty payments 
and statements of account submitted by the various eligible services 
and distributing the royalties to the copyright owners and performers 
entitled to receive such royalties under the section 112 and 114 
licenses. 37 CFR 380.4(b), 382.13(b), 383.4(a), and 384(b). As the 
designated Collective, SoundExchange may conduct a single audit of a 
licensee for any calendar year for the purpose of verifying their 
royalty payments. Id. at

[[Page 2700]]

Sec. Sec.  380.4(b), 382.15(b),\1\ and 384.6(b). Prior to conducting an 
audit, SoundExchange must file with the Judges a notice of intent to 
audit a licensee and serve the notice on the licensee to be audited. 
Id. at Sec. Sec.  380.6(c), 382.15(c), and 384.6(c).
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    \1\ SoundExchange's authority to audit new subscription services 
falls under Sec.  383.4(a), which states in pertinent part that 
``terms governing . . . audit and verification of royalty payments 
and distributions, cost of audit and verification . . . shall be 
those adopted by the [Judges] for subscription transmissions and the 
reproduction of ephemeral recordings by preexisting satellite 
digital audio radio services in 37 CFR part 382, subpart B.''
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    On December 20, 2013, SoundExchange filed with the Judges five 
separate notices of intent to audit IMUC, Inc. (IMUC), Crystal Media 
Networks (CMN), Pandora Media, Inc. (Pandora) and LoudCity LLC 
(LoudCity) for their webcasting services, and Sirius XM Radio, Inc. 
(Sirius XM) for its various services: webcasting service, preexisting 
satellite digital audio radio service, new subscription service, and 
business establishment service for the years 2010, 2011, and 2012.
    Sections 380.6(c), 382.15(c), and 384.6(c) require the Judges to 
publish a notice in the Federal Register within 30 days of receipt of 
the notice announcing the Collective's intent to conduct an audit. 
Today's notice fulfills this requirement with respect to 
SoundExchange's notices of intent to audit IMUC, CMN, Pandora, LoudCity 
and Sirius XM, filed December 20, 2013.

    Dated: January 10, 2014.
Suzanne M. Barnett,
Chief Copyright Royalty Judge.
[FR Doc. 2014-00654 Filed 1-14-14; 8:45 am]
BILLING CODE 1410-72-P
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