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[Federal Register Volume 78, Number 245 (Friday, December 20, 2013)]
[Rules and Regulations]
[Page 76987]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-30346]

[[Page 76987]]

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LIBRARY OF CONGRESS

Copyright Royalty Board

37 CFR Part 385

[Docket No. 2011-3 CRB Phonorecords II]

Adjustment of Determination of Compulsory License Rates for 
Mechanical and Digital Phonorecords

AGENCY: Copyright Royalty Board, Library of Congress.

ACTION: Final rule; technical amendment.

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SUMMARY: The Copyright Royalty Judges are making a technical amendment 
to the regulations regarding the rates and terms for the section 115 
statutory license for the use of musical works in physical phonorecord 
deliveries, permanent digital downloads, ringtones, interactive 
streaming, limited downloads, limited offerings, mixed service bundles, 
music bundles, paid locker services, and purchased content locker 
services. The technical amendment corrects a clerical error regarding 
an accounting provision in the final rule.

DATES: Effective: January 1, 2014.

FOR FURTHER INFORMATION CONTACT: Richard Strasser, Senior Attorney, or 
Gina Giuffreda, Attorney Advisor. Telephone: (202) 707-7658 or email at 
crb@loc.gov.

SUPPLEMENTARY INFORMATION: On November 13, 2013, the Copyright Royalty 
Judges (Judges) published in the Federal Register final regulations 
setting the rates and terms for the section 115 statutory license for 
the use of musical works in physical phonorecord deliveries, permanent 
digital downloads, ringtones, interactive streaming, limited downloads, 
limited offerings, mixed service bundles, music bundles, paid locker 
services, and purchased content locker services. 78 FR 67938. In the 
preamble to the final rule, the Judges stated that they could not adopt 
an accounting provision proposed in Sec.  385.12(e) \1\ because of a 
finding by the Register of Copyrights (Register) that adoption by the 
Judges of such a provision ``represent[ed] an encroachment on the 
Register's [exclusive] authority regarding statements of account'' kept 
under the section 115 statutory license. See Id. at 67940, citing 78 FR 
28772 (May 16, 2013). Due to an inadvertent oversight, however, no 
instruction reflecting the removal of Sec.  385.12(e) appeared in the 
regulatory text.\2\ The Judges now correct this error.
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    \1\ The Judges proposed two accounting provisions--Sec.  
385.12(e) and Sec.  385.22(d)--each of which would have required the 
licensee's statement of account to ``set forth each step of its 
calculations with sufficient information to allow the copyright 
owner to assess the accuracy and manner in which the licensee 
determined the payable royalty pool and per-play allocations 
(including information sufficient to demonstrate whether and how a 
minimum royalty or subscriber-based royalty floor pursuant to Sec.  
385.13 does or does not apply) and, for each offering reported, also 
indicate the type of licensed activity involved and the number of 
plays of each musical work (including an indication of any overtime 
adjustment applied) that is the basis of the per-work royalty 
allocation being paid.'' 77 FR 29259, 29267 (May 17, 2012). The 
language of proposed Sec.  385.22(d) mirrored that in Sec.  
385.12(e), except for non-substantive conforming language needed for 
its inclusion in proposed Subpart C.
    \2\ Today's amendment concerns only proposed Sec.  385.12(e) 
because this section was adopted initially by the Judges in 2009. 
See 74 FR 4510 (Jan. 26, 2009). Proposed Sec.  385.22(d) was part of 
a newly proposed Subpart C, see 77 FR 29259 (May 17, 2012), and was 
not adopted in the final rule published on November 13, 2013.
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    Section 803(c)(4) of the Copyright Act authorizes the Judges to 
issue ``an amendment to a written determination to correct any 
technical or clerical errors in the determination'' and directs that 
such amendment ``be set forth in a written addendum to the 
determination that shall be distributed to the participants and shall 
be published in the Federal Register.'' 17 U.S.C. 803(c)(4).\3\ The 
Judges make this correction by today's notice pursuant to their 
continuing jurisdiction under section 803(c)(4) of the Copyright Act.
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    \3\ The Judges provided a copy of this technical amendment to 
the participants of this proceeding prior to its submission to the 
Federal Register for publication.
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List of Subjects in 37 CFR Part 385

    Copyright, Phonorecords, Recordings.

Final Regulations

    For the reasons set forth in the preamble, the Copyright Royalty 
Judges amend Part 385 of Chapter III of title 37 of the Code of Federal 
Regulations as follows:

PART 385--RATES AND TERMS FOR USE OF MUSICAL WORKS UNDER COMPULSORY 
LICENSE FOR MAKING AND DISTRIBUTING OF PHYSICAL AND DIGITAL 
PHONORECORDS

0
1. The authority citation for part 385 continues to read as follows:

    Authority: 17 U.S.C. 115, 801(b)(1), 804(b)(4).

Sec.  385.12  [Amended]

0
2. Section 385.12 is amended by removing paragraph (e).

    Dated: November 18, 2013.
Suzanne M. Barnett,
Chief Copyright Royalty Judge.
    Approved by:
James H. Billington,
Librarian of Congress.
[FR Doc. 2013-30346 Filed 12-19-13; 8:45 am]
BILLING CODE 1410-72-P
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