Federal Register / Vol. 78, No. 248 / Thursday, December 26, 2013 / Rules and Regulations 78257 

is corrected to read ‘‘It is anticipated 

that future HHS guidance will specify 

that when determining eligibility for the 

hardship exemption for individuals who 

lack affordable coverage based on 

projected income described in 45 CFR 

155.605(g)(2), the Exchange will 

calculate advance payments of the 

premium tax credit using the rules 

specified in the regulations under 

section 36B, providing that individuals 

who have minimum essential coverage 

are excluded from the computation of 

the applicable benchmark plan. This 

treatment will ensure that Exchanges 

can reuse existing advance payment 

functionality instead of having to 

develop additional functionality for the 

sole purpose of supporting this 

exemption.’’. 

21. On page 53654, second column, 

third line from the bottom of the first 

full paragraph, the language ‘‘through 

Indian Health Service in’’ is corrected to 

read ‘‘through the Indian Health Service 

in’’. 

22. On page 53654, second column, in 

the preamble, under the paragraph 

heading ‘‘H. Short Coverage Gap’’, 

fourteenth line of the first paragraph, 

the language ‘‘February) in conjunction 

with the one’’ is corrected to read 

‘‘February) in conjunction with the 

one-’’. 

23. On page 53655, first column, 

seventh line from the top of the page, 

the language ‘‘section 5000A for the 

short coverage gap’’ is corrected to read 

‘‘section 5000A for purposes of the short 

coverage gap’’. 

24. On page 53655, second column, in 

the preamble, seventh and eighth lines 

of the second full paragraph, the 

language ‘‘exemptions on a Federal 

income tax return.’’ is corrected to read 

‘‘exemption on Federal income tax 

returns.’’. 

25. On page 53655, third column, in 

the preamble, under the paragraph 

heading ‘‘Special Analyses’’, tenth line 

of the first paragraph, the language ‘‘to 

these regulations, and, because the’’ is 

corrected to read ‘‘to these regulations 

and, because the’’. 

Martin V. Franks, 

Chief, Publications and Regulations Branch, 

Legal Processing Division, Associate Chief 

Counsel (Procedure and Administration). 

[FR Doc. 2013–30740 Filed 12–24–13; 8:45 am] 

BILLING CODE 4830–01–P 

LIBRARY OF CONGRESS 

Copyright Office 

37 CFR Part 201 

[Docket No. 2012–5] 

Verification of Statements of Account 

Submitted by Cable Operators and 

Satellite Carriers 

AGENCY: U.S. Copyright Office, Library 

of Congress. 

ACTION: Interim rule. 

SUMMARY: The U.S. Copyright Office is 

adopting an interim regulation that 

implements certain aspects of the 

Satellite Television Extension and 

Localism Act of 2010 (‘‘STELA’’). Cable 

operators and satellite carriers must file 

statements of account (‘‘SOAs’’) and 

deposit royalty fees with the Office in 

order to use the statutory licenses that 

allow for the retransmission of over-theair broadcast signals. The Office 

published two notices of proposed 

rulemaking concerning a new process to 

allow copyright owners to audit the 

SOAs and associated royalty payments. 

The Office received extensive comments 

on its proposed audit procedures and is 

carefully reviewing these comments to 

address them as appropriate in a final 

rule. In the meantime, the Office is 

issuing an interim rule to establish the 

procedure for filing a notice of intent to 

audit one or more SOAs. 

DATES: Effective Date: December 26, 

2013. 

FOR FURTHER INFORMATION CONTACT: 

Jacqueline C. Charlesworth, General 

Counsel, or Erik Bertin, Attorney 

Advisor, U.S. Copyright Office, P.O. Box 

70400, Washington, DC 20024–0400. 

Telephone: (202) 707–8380. Telefax: 

(202) 707–8366. 

SUPPLEMENTARY INFORMATION: STELA 

amended the Copyright Act by directing 

the Register of Copyrights to issue 

regulations to allow copyright owners to 

audit the SOAs and royalty fees that 

cable operators and satellite carriers file 

with the Office. See 17 U.S.C. 111(d)(6), 

119(b)(2). On June 14, 2012, the Office 

published a notice of proposed 

rulemaking that set forth an initial 

proposal for this procedure. See 77 FR 

35643. The Office received extensive 

comments from groups representing 

copyright owners, cable operators, and 

individual companies that use the 

statutory licenses. The parties offered 

conflicting points of view on nearly 

every aspect of the proposal, including 

the procedures for selecting an auditor, 

for protecting the confidentiality of the 

licensee’s records, for correcting the 

errors and underpayments identified in 

the auditor’s report, and for allocating 

the cost of the audit procedure between 

the copyright owners and the licensee. 

The Office carefully studied these 

comments and revised its proposal 

based on the suggestions that it 

received. The revised proposal was 

published for comment on May 9, 2013. 

See 78 FR 27137. The Office received 

comments from a wide range of 

stakeholders, and once again, the parties 

raised a number of complex issues, such 

as the records retention requirement and 

the procedure for expanding or 

suspending the scope of the audit. 

The Office is carefully reviewing 

these comments and intends to issue a 

final rule that strikes an appropriate 

balance between the interests of the 

copyright owners and the cable and 

satellite licensees in the audit process. 

In the meantime, the Office is issuing an 

interim rule that addresses a procedural 

issue—the provision of notice of an 

intent to audit—that was not contested 

by the parties. 

The Office’s initial proposal 

explained that a copyright owner may 

initiate an audit by filing a notice with 

the Office. It explained that the notice 

should identify the SOAs to be included 

in the audit and the licensee that filed 

those SOAs. In addition, the notice 

should provide contact information for 

the copyright owner, along with a brief 

statement establishing that the copyright 

owner owns at least one work that was 

included in a secondary transmission 

made by that licensee during the 

accounting period or periods subject to 

audit. The proposed regulation further 

provided that a notice of intent to audit 

a particular SOA should be submitted 

within three years after the last day of 

the year in which that SOA was filed. 

It also explained that the copyright 

owner should provide a copy of the 

notice to the licensee on the same date 

that the notice is filed with the Office. 

It stated that the Office would publish 

this notice in the Federal Register. 

Within 30 days thereafter, any other 

copyright owner that wished to 

participate in the audit would be 

required to notify both the copyright 

owner that filed the notice and the 

licensee to be subject to the audit. 

Copyright owners that failed to comply 

with this requirement would not be 

permitted to participate in the audit 

process and would not be permitted to 

audit the same SOAs in a subsequent 

proceeding. 

All of the parties agreed with this 

proposal. A group representing the 

copyright owners offered a minor 

suggestion for clarifying one aspect of 

this procedure, namely, that a group 


sroberts on DSK5SPTVN1PROD with RULES
78258 Federal Register / Vol. 78, No. 248 / Thursday, December 26, 2013 / Rules and Regulations 

representing multiple copyright owners 

should be able to file an audit notice on 

behalf of its members. None of the other 

parties objected to this, and, as 

discussed in the prior Federal Register 

notice, the Office included this 

suggestion in its revised proposal. See 

78 FR at 27139. 

The Office finds there is good cause 

for adopting this procedural rule 

concerning notification of an intent to 

audit as an interim rule and for making 

the rule effective immediately. The 

other issues presented in this 

proceeding are numerous and complex. 

The Office issued an initial notice of 

proposed rulemaking that was based in 

part on a proposal that the Office 

received from a group of copyright 

owners. See 77 FR at 35644. In response 

to its initial proposal, the Office 

received detailed comments from more 

than a dozen stakeholders. It also 

received a counterproposal for revising 

nearly every aspect of the proposed 

regulation. The Office addressed many 

of these issues in a second notice of 

proposed rulemaking, which was 

published earlier this year. See 78 FR 

27137. In response to this latest notice, 

the Office received another round of 

comments from nearly all of the parties 

in this proceeding. All of these parties 

raised issues of first impression that 

were not addressed in the initial phase 

of this proceeding. The Office is 

studying these new issues and intends 

to issue a final rule early next year. In 

the meantime, the interim rule will 

allow copyright owners to identify any 

SOAs from accounting periods 

beginning January 1, 2010 and later that 

they intend to audit. At the same time, 

it will provide licensees with advance 

notice of the SOAs that will be subject 

to audit when the final rule goes into 

effect. 

List of Subjects in 37 CFR Part 201 

Copyright, General Provisions. 

Interim Regulation 

In consideration of the foregoing, the 

U.S. Copyright Office amends part 201 

of 37 CFR, as follows: 

PART 201—GENERAL PROVISIONS 

■ 1. The authority citation for part 201 

continues to read as follows: 

Authority: 17 U.S.C. 702. 

Section 201.10 also issued under 17 U.S.C. 

304. 

■ 2. Add new § 201.16 to read as 

follows: 

§ 201.16 Verification of a Statement of 

Account and royalty fee payments for 

secondary transmissions made by cable 

systems and satellite carriers. 

(a) General. This section prescribes 

procedures pertaining to the verification 

of a Statement of Account and royalty 

fees filed with the Copyright Office 

pursuant to sections 111(d)(1) and 

119(b)(1) of title 17 of the United States 

Code. 

(b) Definitions. As used in this 

section: 

(1) The term cable system has the 

meaning set forth in § 201.17(b)(2). 

(2) Copyright owner means any person 

or entity that owns the copyright in a 

work embodied in a secondary 

transmission made by a statutory 

licensee that filed a Statement of 

Account with the Copyright Office for 

an accounting period beginning on or 

after January 1, 2010, or a designated 

agent or representative of such person or 

entity. 

(3) The term satellite carrier has the 

meaning set forth in 17 U.S.C. 119(d)(6). 

(4) The term secondary transmission 

has the meaning set forth in 17 U.S.C. 

111(f)(2). 

(5) Statement of Account or Statement 

means a semiannual Statement of 

Account filed with the Copyright Office 

under 17 U.S.C. 111(d)(1) or 119(b)(1) or 

an amended Statement of Account filed 

with the Office pursuant to § 201.11(h) 

or § 201.17(m) of this chapter. 

(6) Statutory licensee or licensee 

means a cable system or satellite carrier 

that filed a Statement of Account with 

the Office under 17 U.S.C. 111(d)(1) or 

119(b)(1). 

(c) Notice of intent to audit. (1) Any 

copyright owner that intends to audit a 

Statement of Account for an accounting 

period beginning on or after January 1, 

2010 must notify the Register of 

Copyrights no later than three years 

after the last day of the year in which 

the Statement was filed with the Office. 

The notice of intent to audit may be 

filed by an individual copyright owner 

or a designated agent that represents a 

group or multiple groups of copyright 

owners. The notice shall identify the 

statutory licensee that filed the 

Statement(s) with the Copyright Office, 

the Statement(s) and accounting 

period(s) that will be subject to the 

audit, and the party that filed the notice, 

including its name, address, telephone 

number, facsimile number, and email 

address. In addition, the notice shall 

include a statement that the party owns, 

or represents one or more copyright 

owners that own, a work that was 

embodied in a secondary transmission 

made by the statutory licensee during 

one or more of the accounting period(s) 

specified in the Statement(s) of Account 

that will be subject to the audit. A copy 

of the notice of intent to audit shall be 

provided to the statutory licensee on the 

same day that the notice is filed with 

the Copyright Office. Within 30 days 

after the notice has been received in the 

Office, the Office will publish a notice 

in the Federal Register announcing the 

receipt of the notice of intent to audit. 

(2) Within 30 days after a notice of 

intent to audit a Statement of Account 

is published in the Federal Register 

pursuant to paragraph (c)(1) of this 

section, any other copyright owner that 

owns a work that was embodied in a 

secondary transmission made by that 

statutory licensee during an accounting 

period covered by the Statement(s) of 

Account referenced in the Federal 

Register notice and that wishes to 

participate in the audit of such 

Statement(s) must provide written 

notice of such participation to the 

statutory licensee and to the party that 

filed the notice of intent to audit. A 

notice given pursuant to this paragraph 

may be provided by an individual 

copyright owner or a designated agent 

that represents a group or multiple 

groups of copyright owners, and shall 

include all of the information specified 

in paragraph (c)(1) of this section. 

(3) Once a notice of intent to audit a 

Statement of Account has been received 

by the Office, a notice of intent to audit 

that same Statement will not be 

accepted for publication in the Federal 

Register. 

Dated: December 13, 2013. 

Maria A. Pallante, 

Register of Copyrights. 

James H. Billington, 

The Librarian of Congress. 

[FR Doc. 2013–30776 Filed 12–24–13; 8:45 am] 

BILLING CODE 1410–30–P 

DEPARTMENT OF VETERANS 

AFFAIRS 

38 CFR Part 17 

RIN 2900–AO25 

Duty Periods for Establishing 

Eligibility for Health Care 

ACTION: Final rule. 

SUMMARY: The Department of Veterans 

Affairs (VA) is amending its medical 

regulations concerning eligibility for 

health care to re-establish the 

definitions of ‘‘active military, naval, or 

air service,’’ ‘‘active duty,’’ and ‘‘active 

duty for training.’’ These definitions 

were deleted in 1996; however, we 

believe that all duty periods should be 


sroberts on DSK5SPTVN1PROD with RULES