Federal Register / Vol. 77, No. 230 / Thursday, November 29, 2012 / Rules and Regulations 71101 

such as decks and balconies, walkways 

and driveways; 

iii. The roofing, plumbing systems, 

electrical systems, heating and air 

conditioning systems; 

iv. All interiors; and 

v. All insulation and ventilation 

systems, as well as fireplaces and solid 

fuel-burning appliances. 

3. Only forward mortgages are eligible 

for the waiver. Mortgages insured under 

HUD’s HECM program are ineligible for 

the waiver. 

III. Guidance on the Conditions for 

Waiver Eligibility 

A. Seller’s Acquisition Cost 

The seller’s acquisition cost is the 

purchase price which the seller paid for 

the property, and the following costs (if 

paid by the seller): 

• Closing costs, plus 

• Prepaid costs, including 

commissions. 

The seller’s acquisition cost does not 

include the cost of repairs that the seller 

makes to the property. 

B. Justification and Documentation of 

Increase in Value 

If the resale price of the property is 

greater than 20 percent above the 

seller’s acquisition cost, the mortgage 

will be eligible for FHA insurance only 

if the mortgagee justifies the increase in 

value. The mortgagee must verify that 

the seller has completed sufficient 

legitimate renovation, repair, or 

rehabilitation work on the subject 

property to substantiate the increase in 

value by retaining supporting 

documentation in the loan file or by 

providing a second appraisal. 

• If the mortgagee uses a second 

appraisal: 

Æ An FHA roster appraiser must 

perform the appraisal in compliance 

with all FHA appraisal reporting 

requirements. 

Æ The mortgagee may not use an 

appraisal done for a conventional loan 

even if it was completed by an FHA 

roster appraiser. 

Æ The mortgagee may not charge the 

cost of the second appraisal to the 

homebuyer. 

If the mortgagee has ordered a second 

appraisal to document the increase in 

value, the mortgagee must not use this 

appraisal for case processing and must 

not enter it into FHA Connection. 

C. Property Inspection Report 

If the resale price of the property is 

greater than 20 percent above the 

seller’s acquisition cost, the mortgage 

will be eligible for FHA insurance only 

if the mortgagee obtains a property 

inspection and provides the inspection 

report to the buyer before closing. The 

borrower, lender, or mortgage broker (if 

one is involved in the transaction) may 

order the property inspection. The 

lender or mortgage broker may charge 

the borrower for this inspection. 

D. Repairs 

If the inspection report notes that 

repairs are required because of 

structural or ‘‘health and safety’’ issues, 

those repairs must be completed prior to 

closing. After completion of repairs to 

address structural or ‘‘health and safety’’ 

issues, the inspector must conduct a 

final inspection to determine if the 

repairs have been completed 

satisfactorily and eliminated the 

structural or ‘‘health and safety’’ issues. 

The borrower, lender, or mortgage 

broker may order the final inspection. 

IV. Compliance With the Paperwork 

Reduction Act 

The information collection 

requirements applicable to this waiver 

have been submitted to the Office of 

Management and Budget (OMB) under 

the Paperwork Reduction Act of 1995 

(44 U.S.C. 3501–3520) and assigned 

OMB Control No. 2502–0059. In 

accordance with the Paperwork 

Reduction Act, an agency may not 

conduct or sponsor, and a person is not 

required to respond to, a collection of 

information, unless the collection 

displays a currently valid OMB control 

number. 

VI. Period of Waiver Eligibility 

The waiver that is the subject of this 

notice remains effective beyond 

December 31, 2012, through December 

31, 2014, for all sales contracts executed 

on or after February 1, 2010, the 

availability date provided by the 

issuance of the waiver in January 2010, 

unless extended or withdrawn by HUD. 

By notice, HUD shall notify the public 

of any extension or withdrawal of this 

waiver. If as a result of this waiver, there 

is a significant increase in defaults on 

FHA-insured mortgages and an increase 

in mortgage insurance claims that are 

attributable to mortgages insured as a 

result of exercise of this waiver 

authority, HUD may withdraw this 

waiver immediately. 

Dated: November 26, 2012. 

Carol J. Galante, 

Acting Assistant Secretary for Housing— 

Federal Housing Commissioner. 

[FR Doc. 2012–28918 Filed 11–28–12; 8:45 am] 

BILLING CODE 4210–67–P 

LIBRARY OF CONGRESS 

Copyright Office 

37 CFR Part 201 

[Docket No. RM 2012–4] 

Electronic Filing in the Copyright 

Office of Notices of Intention To Obtain 

a Section 115 Compulsory License 

AGENCY: Copyright Office, Library of 

Congress. 

ACTION: Final rule. 

SUMMARY: The Copyright Office is 

amending its regulations for filing 

Notices of Intention to obtain a Section 

115 compulsory license with the 

Copyright Office to provide an option 

for electronically filing notices. By law, 

such notices may be filed in the Office 

only when the public records of the 

Copyright Office do not identify the 

copyright owner of the musical work 

and include an address at which notice 

can be served. In addition, the 

Copyright Office is amending its 

regulations to clarify the rules for filing 

physical Notices of Intention, to clarify 

that it does not examine Notices of 

Intention filed with the Office for legal 

sufficiency, and to include a Privacy Act 

Advisory Statement. 

DATES: Effective January 14, 2013. 

FOR FURTHER INFORMATION CONTACT: 

Tanya Sandros, Deputy General 

Counsel, 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 comments in this 

docket are available at: http:// 

www.copyright.gov/laws/ 

rulemaking.html. 

SUPPLEMENTARY INFORMATION: 

Background 

Section 115 of the Copyright Act 

provides that ‘‘[w]hen phonorecords of 

a nondramatic musical work have been 

distributed to the public in the United 

States under the authority of the 

copyright owner, any other person 

* * * may, by complying with the 

provisions of this section, obtain a 

compulsory license to make and 

distribute phonorecords of the work.’’ 

17 U.S.C. 115(a)(1). 

Included among the conditions that 

must be met to use the Section 115 

compulsory license is the requirement 

that a person who wishes to obtain a 

compulsory license ‘‘shall, before or 

within thirty days after making, and 

before distributing any phonorecords of 

the work, serve notice of intention to do 

so on the copyright owner. If the 


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71102 Federal Register / Vol. 77, No. 230 / Thursday, November 29, 2012 / Rules and Regulations 

registration or other public records of 

the Copyright Office (‘‘Copyright Office’’ 

or ‘‘Office’’) do not identify the 

copyright owner and include an address 

at which notice can be served, it shall 

be sufficient to file the notice of 

intention in the Copyright Office. The 

notice shall comply, in form, content, 

and manner of service, with 

requirements that the Register of 

Copyrights shall prescribe by 

regulation.’’ 17 U.S.C. 115(b)(1). 

In 2004, the Copyright Office 

amended 37 CFR 201.18, the regulations 

governing Notices of Intention to obtain 

a Section 115 compulsory license 

(‘‘Notices’’), in order to make the license 

more functional. 69 FR 34578 (June 22, 

2004). Among the 2004 amendments to 

37 CFR 201.18 was a provision that 

allowed that a Notice ‘‘may designate 

any number of nondramatic musical 

works, provided that the copyright 

owner of each designated work or, in 

the case of any work having more than 

one copyright owner, any one of the 

copyright owners is the same and that 

the information required under 

paragraphs (d)(1)(i) through (iv) of this 

section does not vary [i.e., name and 

contact information of licensee; name 

and contact information of primary 

entity making and distributing 

phonorecords, and information 

concerning yearly accounting periods]. 

For purposes of this section, a Notice 

which lists multiple works shall be 

considered a composite filing of 

multiple Notices and fees shall be paid 

accordingly if filed in the Copyright 

Office under paragraph (f) of this section 

(i.e., a separate fee, in the amount set 

forth in § 201.3(e)(1), shall be paid for 

each work listed in the Notice).’’ 37 CFR 

201.18(a)(4). The 2004 amendments also 

allowed licensees to serve Notices 

directly on copyright owners or 

designated agents by means of an 

electronic transmission when the 

copyright owner or designated agent has 

a written public policy that it can 

accommodate such submissions. 37 CFR 

201.18(a)(7). 

Earlier in the 2004 rulemaking 

process the Office also considered 

whether to allow a licensee to file a 

Notice in the Office in an electronic 

format. The Office determined that it 

was not prepared to accept 

electronically filed Notices because it 

did not have in place the systems that 

would accommodate such filings. 

However, the Office anticipated that 

such filings would be accepted in the 

future. The Office did provide that in 

the case where the licensee intends to 

license a high volume of nondramatic 

musical works under Section 115 and 

would endure significant hardships if 

required to submit the Notices under the 

standard practices, the licensee may 

contact the Licensing Division of the 

Copyright Office to inquire whether 

special arrangements could be made for 

submission of the Notice electronically. 

69 FR 11566, 11570 (March 11, 2004). 

The Office is aware of a growing need 

for an electronic filing system for filing 

Section 115 Notices with the Copyright 

Office because of the large number of 

works being used under the compulsory 

license where service of the Notice 

cannot be made effectively on the 

copyright owner. To meet this need, the 

Office is now preparing to accept 

specific types of electronically filed 

Notices addressing multiple 

nondramatic musical works. Hence, the 

Office is amending its regulations in 

§ 201.18 by providing for use of an 

online system for submission of Notices 

covering multiple nondramatic musical 

works. 

In its Notice of Proposed Rulemaking 

published in May 2012, the Copyright 

Office proposed a number of changes to 

the regulations governing the filing of 

Section 115 Notices. 77 FR 31237 (May 

25, 2012). First, the Office proposed to 

clarify its rules for submission of 

Notices in paper form that contain 

multiple titles of nondramatic musical 

works. The proposal noted that, while 

in practice the Office does accept and 

process Notices with multiple titles in 

the case where no copyright owner of 

any of the works can be identified, the 

regulations do not specifically 

contemplate this situation. Thus, the 

Office proposed to amend its regulations 

to clarify that a Notice filed in a paper 

format may list multiple works in a 

single Notice when any of the following 

circumstances apply: In the case where 

no copyright owner can be identified 

from the Copyright Office records for 

any of the works listed in the Notice; in 

the case where the copyright owner of 

each work listed in the Notice is the 

same and the records of the Copyright 

Office do not include an address at 

which notice can be served; or for works 

having more than one copyright owner, 

in the case where the works listed in the 

Notice share a common copyright owner 

and the records of the Copyright Office 

do not include an address at which 

notice can be served on any of the 

copyright owners for the subject works. 

The Office proposed to maintain these 

distinctions for the paper filings at this 

time because they provide more concise 

information to the public reviewing the 

Notices and facilitates the 

recordkeeping process for the Office. 

The Office also proposed to amend 

the regulations so that Notices 

addressing multiple nondramatic 

musical works may be submitted 

electronically as XML files, regardless of 

whether the copyright owner of each 

designated work is the same, provided 

that the Notice does not include a 

nondramatic musical work when the 

identity and address of at least one of its 

copyright owners may be found in the 

public record of the Copyright Office. 

Fees for such electronic Notices, the 

Office proposed, would have to be paid 

through a Copyright Office deposit 

account (pursuant to § 201.6(b) of the 

Copyright Office regulations), at least 

during the introductory period of the 

online filing process. Use of a deposit 

account will allow the Office to make 

any necessary fee payments 

immediately and it avoids the need to 

solve the technological and security 

issues associated with providing a credit 

card payment in this first iteration of the 

system. 

Further to the question of the 

processing of electronic Section 115 

Notices, the Copyright Office proposed 

not to require an electronic signature 

during the initial rollout of the filing 

process, though it did note plans to add 

an electronic signature requirement in 

later versions of the system. Under the 

initial rollout, because the fee for Notice 

must be paid through a deposit account, 

the online system will be able to use the 

deposit account information to 

reasonably verify and authenticate the 

identity of the person submitting and 

validating Notices. 

The Copyright Office, in its May 25, 

2012 notice of proposed rulemaking also 

proposed two additional amendments. 

The first of these would clarify that the 

Office does not examine Notices for 

legal sufficiency, would encourage filers 

to take care to comply with all the 

statutory and regulatory requirements 

pertaining to such Notices, and would 

note that the Office will notify a 

prospective licensee when a Notice is 

not accompanied by payment of the 

required fee. The second additional 

amendment would add a Privacy Act 

Advisory Statement in § 201.18, which 

would fulfill the Office’s obligation to 

notify the public that Notices with 

personally identifying information filed 

with the Office become public records. 

Comments 

The Office received two comments in 

response to its notice of proposed 

rulemaking. One, from Attorney Chris 

Garvey, supported the proposal to 

permit the electronic submission of 

section 115 Notices. The other, from 

Public Knowledge (‘‘PK’’), also 

supported the electronic filing proposal, 

along with making further suggestions. 

PK proposed that electronically filed 


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Federal Register / Vol. 77, No. 230 / Thursday, November 29, 2012 / Rules and Regulations 71103 

Notices should be permitted for single 

nondramatic musical works, and that 

the Office should ‘‘hasten to build the 

capacity to authenticate licensees and 

receive payment information without 

deposit accounts.’’ This latter measure, 

PK maintained, would result in longterm reduced transaction costs. PK also 

suggested that the Office ‘‘implement a 

searchable, electronic Notice database 

for public use’’ in order to minimize 

transaction costs between copyright 

owners and licensees, and avoid the 

hourly fee that the Copyright Office 

charges for searches of non-publicfacing records. 

Discussion 

The Office is in agreement with PK in 

its goal of further improving the 

functionality of the Office’s electronic 

system ‘‘to simplify the Section 115 

process for licensees, copyright owners, 

and the Office itself.’’ The Office 

believes that the amendments detailed 

above are an interim step 

towardsmeeting this goal. The Office 

also notes that of the three PK 

proposals, one is already encompassed 

in the amendments and the other two 

will be instituted as part of the upgrades 

to the Office’s technical infrastructure. 

Regarding the ability of a person to 

electronically file a Notice for a single 

nondramatic musical work, the text of 

the amendments to § 201.18(a)(4) states 

that such a Notice ‘‘may designate 

multiple nondramatic musical works.’’ 

The use of the word ‘‘may’’ indicates 

that multiple works need not be 

designated, and that an electronic 

Notice may be filed for a single work as 

well. However, a person who files an 

electronic Section 115 Notice during 

this initial rollout phase must be 

enrolled in the Office’s deposit account 

program. In order to accommodate a 

filer of a Notice identifying only one or 

a few titles who does not have a deposit 

account, the Office intends in the future 

to upgrade the online filing system to 

require an electronic signature and to 

accept additional payment options such 

as credit card payments. At the moment, 

however, the focus is on offering a 

mechanism for filing Notices with large 

numbers of titles in a manner that can 

easily be administered by the Office at 

this time. 

Regarding PK’s desire for a public 

database of Section 115 Notices, the 

Office acknowledges that while the 

search capability of the electronically 

filed Notices will not be directly 

available to the public for technical 

reasons, this will only be the case 

during the initial rollout of the service, 

and that future upgrades to the system 

will include a searchable database. 

This Final Rule makes one change to 

the proposed amendments not suggested 

by the commenters. In new 

§ 201.18(a)(4)(iii), the phrase ‘‘in 

electronic format’’ in the first sentence 

is replaced with ‘‘through its electronic 

filing system.’’ This change merely 

clarifies the subject of the subsection. 

Pilot Program 

While the Office is amending its 

regulations to accept electronic filing of 

the Section 115 Notices of Intent to 

Obtain a Compulsory License, it needs 

to fully test the system before making it 

available to the public for actual, valid 

submissions of Notices. Thus, members 

of the public are invited to participate 

in a Beta test of the proposed electronic 

system. Parties wishing to participate in 

Beta testing should contact Tracie 

Coleman in the Licensing Division of 

the Copyright Office at 202–707–3600, 

tmau@loc.gov. The Beta testing will 

require participants to upload ‘‘test’’ 

Notices to the Beta version of the 

electronic system to ensure proper 

functionality. ‘‘Test’’ Notices uploaded 

during the Beta testing phase will not 

require the submission of a filing fee, 

and they will not have any legal effect 

or otherwise be considered valid for 

licensing purposes. The Beta testing will 

be limited to selected participants until 

system testing is complete. Testing is 

expected to be completed by the time 

the rule becomes effective. 

List of Subjects in 37 CFR Part 201 

Copyright, General provisions. 

Final Regulations 

In consideration of the foregoing, the 

Copyright Office amends 37 CFR part 

201 as follows: 

PART 201—GENERAL PROVISIONS 

■ 1. The authority citation for part 201 

continues to read as follows: 

Authority: 17 U.S.C. 702. 

■ 2. Amend § 201.4(a)(1)(iii) by 

removing ‘‘Original, signed notices’’ at 

the beginning of the paragraph and 

adding ‘‘Notices’’ in its place. 

■ 3. Amend § 201.18 as follows: 

■ a. By revising paragraph (a)(4); 

■ b. By adding paragraph (e)(5); 

■ c. By redesignating paragraph (g) 

paragraph (h); 

■ d. By adding a new paragraph (g); and 

■ e. By adding paragraph (i). 

The additions and revisions read as 

follows: 

§ 201.18 Notice of intention to obtain a 

compulsory license for making and 

distributing phonorecords of nondramatic 

musical works. 

(a) * * * 

(4) A Notice of Intention shall be 

served or filed for nondramatic musical 

works embodied, or intended to be 

embodied, in phonorecords made under 

the compulsory license. For purposes of 

this section and subject to 

subparagraphs (ii) and (iii), a Notice 

filed with the Copyright Office which 

lists multiple works shall be considered 

a single Notice and fees shall be paid in 

accordance with the fee schedule set 

forth in § 201.3(e)(1) if filed in the 

Copyright Office under paragraph (f)(3) 

of this section. Payment of the 

applicable fees for a Notice submitted 

electronically under this paragraph shall 

be made through a deposit account 

established under § 201.6(b). 

(i) Except as provided for in 

paragraph (a)(7), a Notice of Intention 

served on a copyright owner or agent of 

a copyright owner may designate any 

number of nondramatic musical works 

provided that that the information 

required under paragraphs (d)(1)(i) 

through (iv) of this section does not vary 

and that the copyright owner of each 

designated work is the same, or in the 

case of any work having more than one 

copyright owner, that any one of the 

copyright owners is the same and is the 

copyright owner served. 

(ii) A Notice of Intention filed in the 

Copyright Office in paper form may 

designate any number of nondramatic 

musical works provided that that the 

information required under paragraphs 

(d)(1)(i) through (iv) of this section does 

not vary, and that the copyright owner 

of each designated work (or, in the case 

of works having more than one 

copyright owner, any one of the 

copyright owners) is the same and the 

registration records or other public 

records of the Copyright Office do not 

identify the copyright owner(s) of such 

work(s) and include an address for any 

such owner(s) at which notice can be 

served. For purposes of this 

subparagraph, in the case of works 

having more than one copyright owner, 

a single Notice must identify an actual 

person or entity as the common 

copyright owner; the common copyright 

owner may not be identified as 

‘‘unknown.’’ However, a single Notice 

may include multiple works for which 

no copyright owners can be identified 

for any of the listed works. 

(iii) A Notice of Intention filed in the 

Copyright Office through its electronic 

filing system may designate multiple 

nondramatic musical works, regardless 

of whether the copyright owner of each 

designated work (or, in the case of any 

work having more than one copyright 

owner, any one of the copyright owners) 

is the same, provided that the 

information required under paragraphs 


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71104 Federal Register / Vol. 77, No. 230 / Thursday, November 29, 2012 / Rules and Regulations 

1Pursuant to 17 U.S.C. 803(b)(6)(C)(x), the Judges 

set the 60-day discovery period to run from 

November 30, 2011, through January 30, 2012. 

During the discovery period, MRI and CRA each 

withdrew from the proceeding on December 13, 

2011, and January 27, 2012, respectively. 

2A ‘‘public broadcasting entity’’ is defined as a 

‘‘noncommercial educational broadcast station as 

defined in section 397 of title 47 and any nonprofit 

institution or organization engaged in the activities 

described in paragraph (2) of subsection (c)’’ of 

section 118. 17 U.S.C. 118(f). 

(d)(1)(i) through (iv) of this section does 

not vary, and that for any designated 

work, the records of the Copyright 

Office do not include an address at 

which notice can be served. 

* * * * * 

(e) * * * 

(5) If the Notice is filed in the Office 

electronically, the person or entity 

intending to obtain the compulsory 

license or a duly authorized agent of 

such person or entity shall, rather than 

signing the Notice, attest that he or she 

has the appropriate authority of the 

licensee, including any related entities 

listed, if applicable, to submit the 

electronically filed Notice on behalf of 

the licensee. 

* * * * * 

(g) Filing date and legal sufficiency of 

Notices. The Copyright Office will 

notify a prospective licensee when a 

Notice was not accompanied by 

payment of the required fee. Notices 

shall be deemed filed as of the date the 

Office receives both the Notice and the 

fee, if applicable. If the prospective 

licensee fails to remit the required fee, 

the Notice will be deemed not to have 

been filed with the Office. However, the 

Copyright Office does not review 

Notices for legal sufficiency or interpret 

the content of any Notice filed with the 

Copyright Office under this section. 

Furthermore, the Copyright Office does 

not screen Notices for errors or 

discrepancies and it does not generally 

correspond with a prospective licensee 

about the sufficiency of a Notice. If any 

issue (other than an issue related to fees) 

arises as to whether a Notice filed in the 

Copyright Office is sufficient as a matter 

of law under this section, that issue 

shall be determined not by the 

Copyright Office, but shall be subject to 

a determination of legal sufficiency by 

a court of competent jurisdiction. 

Prospective licensees are therefore 

cautioned to review and scrutinize 

Notices to assure their legal sufficiency 

before filing them in the Copyright 

Office. 

* * * * * 

(i) Privacy Act Advisory Statement. 

The authority for receiving the 

personally identifying information 

included within a Notice of Intention to 

obtain a compulsory license is found in 

17 U.S.C. 115 and § 201.18. Personally 

identifying information is any personal 

information that can be used to identify 

or trace an individual, such as name, 

address or telephone numbers. 

Furnishing the information set forth in 

§ 201.18 is voluntary. However, if the 

information is not furnished, it may 

affect the sufficiency of Notice of 

Intention to obtain a compulsory license 

and may not entitle the prospective 

licensee to the benefits available under 

17 U.S.C. 115. The principal uses of the 

requested information are the 

establishment and maintenance of a 

public record of the Notices of Intention 

to obtain a compulsory license received 

in the Licensing Division of the 

Copyright Office. Other routine uses 

include public inspection and copying, 

preparation of public indexes, 

preparation of public catalogs of 

copyright records including online 

catalogs, and preparation of search 

reports upon request. 

Dated: September 21, 2012. 

Maria A. Pallante, 

Register of Copyrights. 

James H. Billington, 

The Librarian of Congress. 

[FR Doc. 2012–28906 Filed 11–28–12; 8:45 am] 

BILLING CODE 1410–30–P 

LIBRARY OF CONGRESS 

Copyright Royalty Board 

37 CFR Part 381 

[Docket No. 2011–2 CRB NCEB II] 

Determination of Reasonable Rates 

and Terms for Noncommercial 

Broadcasting 

AGENCY: Copyright Royalty Board, 

Library of Congress. 

ACTION: Final rule. 

SUMMARY: The Copyright Royalty Judges 

are publishing final regulations setting 

the rates and terms for use of certain 

works in connection with 

noncommercial broadcasting for the 

period commencing January 1, 2013, 

and ending on December 31, 2017. 

DATES: Effective Date: January 1, 2013. 

Applicability Dates: The regulations 

apply to the license period January 1, 

2013, through December 31, 2017. 

FOR FURTHER INFORMATION CONTACT: 

LaKeshia Keys, Program Specialist, by 

telephone at (202) 707–7658 or email at 

crb@loc.gov. 

SUPPLEMENTARY INFORMATION: Section 

118 of the Copyright Act, title 17 of the 

United States Code, establishes a 

statutory license for the use of certain 

copyrighted works in connection with 

noncommercial television and radio 

broadcasting. Chapter 8 of the Copyright 

Act requires the Copyright Royalty 

Judges (‘‘Judges’’) to conduct 

proceedings every five years, beginning 

in 2006, to determine the rates and 

terms for the section 118 license. 17 

U.S.C. 804(b)(6). Accordingly, the 

Judges conducted a proceeding to 

determine the rates and terms for the 

license period 2008–2012 and published 

final regulations on November 30, 2007. 

72 FR 67646. 

On January 5, 2011, the Judges 

published in the Federal Register a 

notice commencing the proceeding to 

determine the rates and terms for the 

2013–2017 license period and 

requesting submission of petitions to 

participate from interested parties. 76 

FR 591. Petitions to Participate were 

received from: The American Society of 

Authors, Composers and Publishers 

(‘‘ASCAP’’); SESAC, Inc.; Broadcast 

Music, Inc. (‘‘BMI’’); Educational Media 

Foundation (‘‘EMF’’); Music Reports, 

Inc. (‘‘MRI’’); National Public Radio, the 

Public Broadcasting Service, and 

noncommercial radio and television 

stations eligible to receive funding from 

the Corporation for Public Broadcasting 

jointly (‘‘NPR/PBS/CPB’’); National 

Religious Broadcasters Noncommercial 

Music License Committee 

(‘‘NRBNMLC’’); the Church Music 

Publishers’ Association; the National 

Music Publishers’ Association, Inc. and 

the Harry Fox Agency, jointly (‘‘NMPA/ 

HFA’’); the Catholic Radio Association 

(‘‘CRA’’); and the American Council on 

Education (‘‘ACE’’). The Judges set the 

timetable for the three-month 

negotiation period, see 17 U.S.C. 

803(b)(3), and directed the participants 

to submit their written direct statements 

no later than October 30, 2011. The 

Judges received written direct 

statements from CRA, BMI, ASCAP, and 

MRI,1 as well as several notifications of 

settlement and proposed rates and terms 

for the Judges to adopt. 

There are two ways that copyright 

owners and public broadcasting 

entities 2 may negotiate rates and terms 

under the section 118 statutory license. 

First, copyright owners may negotiate 

rates and terms with specific public 

broadcasting entities for the use of all of 

the copyright owners’ works covered by 

the license. Section 118(b)(2) provides 

that such license agreements ‘‘shall be 

given effect in lieu of any determination 

by the * * * Copyright Royalty Judges,’’ 

provided that copies of the agreement 

are submitted to the Judges ‘‘within 30 

days of execution.’’ 17 U.S.C. 118(b)(2). 

The Judges received several agreements 


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