64666 Federal Register / Vol. 79, No. 211 / Friday, October 31, 2014 / Rules and Regulations 

Non-Objection Letter, with such action 

being effective only on a prospective 

basis. 

(b) Requests. A regulated entity or the 

Office of Finance may request a NonObjection Letter in accordance with 

§ 1211.6. 

§ 1211.5 Regulatory Interpretations. 

(a) Authority. The General Counsel 

may, in his or her discretion, issue a 

Regulatory Interpretation to a regulated 

entity or the Office of Finance, 

providing guidance with respect to the 

application of any applicable statute, 

rule, regulation, or order to a proposed 

transaction or activity. The Director 

reserves the right to modify, rescind, or 

supersede a Regulatory Interpretation, 

with such action being effective only on 

a prospective basis. 

(b) Requests. A regulated entity or the 

Office of Finance may request a 

Regulatory Interpretation in accordance 

with § 1211.6. 

§ 1211.6 Submission requirements. 

Applications for a Waiver or Approval 

and requests for a Non-Objection Letter 

or Regulatory Interpretation shall 

comply with the requirements of this 

section and shall pertain to regulatory 

matters relating to the Banks or 

Enterprises, and not to conservatorship 

matters. 

(a) Filing. Each application or request 

shall be in writing. A Bank or the Office 

of Finance shall submit its filing to the 

Deputy Director for the Division of 

Federal Home Loan Bank Regulation, 

and an Enterprise shall submit its filing 

to the Deputy Director for Enterprise 

Regulation. Applications for regulatory 

interpretations shall be submitted also 

to the General Counsel. 

(b) Authorization. An application for 

a Waiver or Approval and a request for 

a Non-Objection Letter or Regulatory 

Interpretation shall be signed by the 

principal executive officer or other 

authorized executive officer of the 

regulated entity or by the chairperson of 

the board of directors or authorized 

executive officer of the Office of 

Finance, as appropriate. 

(c) Information requirements. Each 

application or request shall contain: 

(1) The name of the requester, and the 

name, title, business address, telephone 

number, and business electronic mail 

address, if any, of the official filing the 

application or request on its behalf; 

(2) The name, business address, 

telephone number, and business 

electronic mail address, if any, of a 

contact person from whom FHFA staff 

may seek additional information if 

necessary; 

(3) The section numbers of the 

particular provisions of the applicable 

statutes or rules, regulations, policies, or 

orders to which the application or 

request relates; 

(4) Identification of the determination 

or relief requested, including any 

alternative relief requested if the 

primary relief is denied, and a clear 

statement of why such relief is needed; 

(5) A statement of the particular facts 

and circumstances giving rise to the 

application or request and identifying 

all relevant legal and factual issues; 

(6) References to all other relevant 

authorities that the regulated entity or 

Office of Finance believes should be 

considered in evaluating the application 

or request, including the Authorizing 

Statutes, Safety and Soundness Act, 

FHFA rules, regulations, policies, 

orders, judicial decisions, 

administrative decisions, relevant 

statutory interpretations, and policy 

statements; 

(7) References to any Waivers, NonObjection Letters, Approvals, or 

Regulatory Interpretations issued in the 

past in response to circumstances 

similar to those surrounding the request 

or application; 

(8) For any application or request 

involving interpretation of the 

Authorizing Statutes, Safety and 

Soundness Act, or FHFA regulations, a 

reasoned opinion of counsel supporting 

the relief or interpretation sought and 

distinguishing any adverse authority; 

(9) Any other non-duplicative, 

relevant supporting documentation; and 

(10) A certification by a person with 

knowledge of the facts that the 

representations made in the application 

or request are accurate and complete. 

The following form of certification is 

sufficient for this purpose: ‘‘I hereby 

certify that the statements contained in 

the submission are true and complete to 

the best of my knowledge. [Name and 

Title].’’ 

(d) Exceptions. In any given matter or 

class of matters, the Director, the Deputy 

Director for Federal Home Loan Bank 

Regulation, the Deputy Director for 

Enterprise Regulation, or the General 

Counsel, as appropriate, may accept an 

application or request that does not 

comply with the requirements of this 

section, for supervisory reasons or 

administrative efficiency. 

(e) Withdrawal. Once filed, an 

application or request may be 

withdrawn only upon written request, 

and only if FHFA has not yet acted on 

the application or request. 

Dated: October 27, 2014. 

Melvin L. Watt, 

Director, Federal Housing Finance Agency. 

[FR Doc. 2014–25973 Filed 10–30–14; 8:45 am] 

BILLING CODE 8070–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 33 

[Docket No. FAA–2014–0376; Notice No. 33– 

014–SC] 

Special Conditions: SNECMA, 

Silvercrest-2 SC–2D; Rated 10-Minute 

One Engine Inoperative Takeoff Thrust 

at High Ambient Temperature 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final special conditions. 

SUMMARY: These final special conditions 

are issued for the SNECMA, Silvercrest2 SC–2D engine model. This engine will 

have a novel or unusual design 

feature—an additional takeoff rating that 

increases the exhaust gas temperature 

(EGT) limit to maintain takeoff thrust in 

certain high ambient temperature 

conditions with one engine inoperative 

(OEI) for a maximum of 10 minutes. The 

applicable airworthiness regulations do 

not contain adequate or appropriate 

safety standards for this design feature. 

These final special conditions contain 

the additional safety standards that the 

Administrator considers necessary to 

establish a level of safety equivalent to 

that established by the existing 

airworthiness standards. 

DATES: The effective date of these 

special conditions is December 1, 2014. 

FOR FURTHER INFORMATION CONTACT: For 

technical questions concerning this rule, 

contact Tara Fitzgerald, ANE–111, 

Engine and Propeller Directorate, 

Aircraft Certification Service, 12 New 

England Executive Park, Burlington, 

Massachusetts 01803–5213; telephone 

(781) 238–7130; facsimile (781) 238– 

7199; email tara.fitzgerald@faa.gov. For 

legal questions concerning this rule, 

contact Vincent Bennett, ANE–7, Engine 

and Propeller Directorate, Aircraft 

Certification Service, 12 New England 

Executive Park, Burlington, 

Massachusetts 01803–5299; telephone 

(781) 238–7044; facsimile (781) 238– 

7055; email vincent.bennett@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

On April 19, 2011, SNECMA applied 

for a new type certificate (TC) for the 

Silvercrest-2 SC–2D engine model. For 


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Federal Register / Vol. 79, No. 211 / Friday, October 31, 2014 / Rules and Regulations 64667 

their Silvercrest-2 SC–2D engine model, 

SNECMA requested an additional 

takeoff rating to maintain takeoff thrust 

in certain high ambient temperature 

conditions with OEI. Therefore, the 

Silvercrest-2 SC–2D engine model will 

have two different takeoff ratings. The 

first rating corresponds with the rated 

takeoff thrust of the engine. The second 

takeoff rating maintains the takeoff 

thrust in certain high ambient 

temperature conditions for a maximum 

of 10 minutes when one engine is 

inoperative. This additional takeoff 

rating is named, ‘‘Rated 10-Minute OEI 

Takeoff Thrust at High Ambient 

Temperature’’ (Rated 10-minute OEI 

TOTHAT). 

These final special conditions are 

necessary because current part 33 

regulations do not contain airworthiness 

standards for airplane applications of 

OEI ratings. For an airplane application, 

the OEI rating is the same as the rated 

thrust of the engine. All OEI ratings in 

current part 33 regulations are only 

applicable to rotorcraft applications. 

These final special conditions were 

modeled based on the rotorcraft 

requirements for the 30-second and 2- 

minute OEI ratings, and modified to 

represent the airplane application. The 

Rated 10-minute OEI TOTHAT shares 

common features, such as the need to 

notify the pilot and maintenance 

personnel about the rating’s use, 

provides data needed for power 

assurance check, and continued 

validation of the related maintenance 

procedures. 

The Rated 10-minute OEI TOTHAT is 

for use during OEI events that occur 

during takeoff in high ambient 

temperature conditions, up to 5 degrees 

Celsius hotter than the rated takeoff 

thrust corner point. Under these unique 

conditions (extreme hot day and OEI), 

the Rated 10-minute OEI TOTHAT leads 

to an increase in EGT to maintain the 

takeoff thrust of the engine. These final 

special conditions contain additional 

mandatory post-flight inspection and 

maintenance action requirements 

associated with any use of the Rated 10- 

minute OEI TOTHAT. These 

requirements add a rating definition in 

part 1.1; mandatory inspections in the 

ICA; instructions for installing and 

operating the engine; engine rating and 

operating limitations; instrument 

connection; and endurance testing. 

The current requirements of the 

endurance test under § 33.87 represent a 

typical airplane flight profile and the 

severity of the takeoff rating. Therefore, 

the endurance test under § 33.87 covers 

normal, all-engines-operating takeoff 

conditions for which the engine control 

system limits the engine to the takeoff 

thrust rating. These final special 

conditions for the endurance testing 

requirements are intended to represent 

the airplane flight profile when an OEI 

event occurs during takeoff under 

specified ambient temperatures, and 

until the mandatory inspection and 

maintenance actions can be performed. 

These final special conditions require 

endurance testing that is not less than 

135 minutes in duration and 

demonstrates the engine is capable of 

the additional Rated 10-minute OEI 

TOTHAT rating at the higher EGT limit 

following completion of the tests 

required by § 33.87(b), without 

disassembly or modification. 

The associated engine deterioration 

after use of the Rated 10-minute OEI 

TOTHAT is not known without the 

intervening mandatory inspections in 

these special conditions. The mandatory 

inspections ensure the engine will 

continue to comply with its certification 

basis after any use of the Rated 10- 

minute OEI TOTHAT. The applicant is 

expected to assess the deterioration 

from use of the Rated 10-minute OEI 

TOTHAT. The Airworthiness 

Limitations section must prescribe the 

mandatory post-flight inspections and 

maintenance actions associated with 

any use of the Rated 10-minute OEI 

TOTHAT. 

These special conditions are 

necessary because the applicable 

airworthiness regulations do not contain 

adequate or appropriate safety standards 

for the additional takeoff rating, and 

their requirements maintain a level of 

safety equivalent to the level intended 

by the applicable airworthiness 

standards in effect on the date of 

application. 

Type Certification Basis 

Under the provisions of Title 14, Code 

of Federal Regulations (14 CFR) 21.17, 

SNECMA must show that the 

Silvercrest-2 SC–2D meets the 

applicable provisions of the applicable 

regulations in effect on the date of 

application, except as detailed in 

paragraphs 21.101(b) and (c). The FAA 

has determined the following 

certification basis for the Silvercrest-2 

SC–2D engine model: 

1. 14 CFR part 33, ‘‘Airworthiness 

Standards Aircraft Engines,’’ dated 

February 1, 1965, with Amendments 

33–1 through 33–31, dated July 18, 

2011. 

If the FAA finds that the regulations 

in effect on the date of the application 

for the change do not provide adequate 

or appropriate safety standards for the 

Silvercrest-2 SC–2D because of a novel 

or unusual design feature, special 

conditions are prescribed under the 

provisions of § 21.16. 

Special conditions are initially 

applicable to the model for which they 

are issued. Should the type certificate 

for that model be amended later to 

include any other model that 

incorporates the same or similar novel 

or unusual design feature, these special 

conditions would also apply to the other 

model under § 21.101. 

In addition to complying with the 

applicable product airworthiness 

regulations and the requirements of 

these special conditions, the Silvercrest2 SC–2D engine model must also 

comply with the fuel venting and 

exhaust emission requirements of 14 

CFR part 34. 

The FAA issues special conditions, as 

defined in 14 CFR 11.19, per § 11.38, 

and they become part of the type 

certification basis under § 21.17(a)(2). 

Novel or Unusual Design Features 

The SNECMA Silvercrest-2 SC–2D 

engine model will incorporate an 

additional takeoff rating to maintain 

takeoff thrust in certain high ambient 

temperature OEI takeoff conditions for a 

maximum of 10 minutes. The result will 

be two different takeoff ratings, one for 

the rated takeoff thrust of the engine and 

the other to maintain the takeoff thrust 

in certain high ambient temperature OEI 

takeoff conditions for a maximum of 10 

minutes. The additional takeoff rating is 

referred to as ‘‘Rated 10-Minute OEI 

Takeoff Thrust at High Ambient 

Temperature’’ (Rated 10-minute OEI 

TOTHAT). 

The Rated 10-minute OEI TOTHAT is 

a novel and unusual design feature that 

requires additional airworthiness 

standards for type certification of the 

SNECMA Silvercrest-2 SC–2D engine 

model. 

Discussion of Comments 

A notice of proposed special 

conditions, No. 33–14–01–SC, for the 

Silvercrest-2 SC–2D engine model was 

published in the Federal Register on 

July 31, 2014 (79 FR 44321). We did not 

receive any public comments. We did, 

however, modify the proposed special 

conditions by removing requirement (b) 

under ‘‘§ 33.28, Engine control 

systems.’’ These requirements are 

addressed at the aircraft level. 

Applicability 

As discussed above, these special 

conditions are applicable to the 

Silvercrest-2 SC–2D engine model. 

Should SNECMA apply at a later date 

for a change to the type certificate to 

include another engine model 

incorporating the same novel or unusual 


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64668 Federal Register / Vol. 79, No. 211 / Friday, October 31, 2014 / Rules and Regulations 

design feature, these special conditions 

would apply to that model as well. 

Conclusion 

We reviewed the available data and 

determined that air safety and the 

public interest require adopting these 

special conditions. This action affects 

only the Rated 10-minute OEI TOTHAT 

features on the Silvercrest-2 SC–2D 

engine model. It is not a rule of general 

applicability and applies only to 

SNECMA, who requested FAA approval 

of this engine feature. 

List of Subjects in 14 CFR Part 33 

Air Transportation, Aircraft, Aviation, 

Aviation safety, Safety. 

The authority citation for these 

special conditions is as follows: 

Authority: 49 U.S.C. 106(g), 40113, 44701, 

44702, 44704. 

The Special Conditions 

■ Accordingly, pursuant to the authority 

delegated to me by the Administrator, 

the following special conditions are 

issued as part of the type certification 

basis for the SNECMA Silvercrest-2 SC– 

2D engine model. 

1. Part 1.1, Definitions 

‘‘Rated 10-Minute One Engine 

Inoperative Takeoff Thrust at High 

Ambient Temperature’’ (Rated 10- 

minute OEI TOTHAT) means the 

approved engine thrust developed 

under specified altitudes and 

temperatures within the operating 

limitations established for the engine, 

and for continuation of flight operation 

after failure or shutdown of one engine 

in a multi-engine airplane during takeoff 

operation. Use is limited to two periods, 

no longer than 10 minutes each in any 

one flight, and followed by mandatory 

inspection and maintenance actions. 

2. Part 33 Requirements 

In addition to the airworthiness 

standards in 14 CFR part 33, effective 

February 1, 1965, Amendments 33–1 

through 33–31 applicable to the engine 

and the Rated 10-minute OEI TOTHAT, 

the following special conditions apply: 

§ 33.4 Instructions for Continued 

Airworthiness. 

(a) The Airworthiness Limitations 

section must prescribe the mandatory 

post-flight inspections and maintenance 

actions associated with any use of the 

Rated 10-minute OEI TOTHAT. 

(b) The applicant must validate the 

adequacy of the inspections and 

maintenance actions required under 

paragraph § 33.4(a) of these special 

conditions. 

(c) The applicant must establish an inservice engine evaluation program to 

ensure the continued adequacy of the 

instructions for mandatory post-flight 

inspections and maintenance actions 

prescribed under paragraph § 33.4(a) of 

these special conditions, and of the data 

for thrust assurance procedures required 

by § 33.5(b)(1) of these special 

conditions. The program must include 

service engine tests or equivalent 

service engine test experience on 

engines of similar design and 

evaluations of service use of the Rated 

10-minute OEI TOTHAT. 

§ 33.5 Instruction manual for installing and 

operating the engine. 

(a) Installation instructions: 

(1) The applicant must identify the 

means, or provisions for means, 

provided in compliance with the 

requirements of § 33.29 of these special 

conditions. 

(2) The applicant must specify that 

the engine thrust control system 

automatically resets the thrust on the 

operating engine to the Rated 10-minute 

OEI TOTHAT level when one engine 

fails during takeoff at specified altitudes 

and temperatures, and that the Rated 10- 

minute OEI TOTHAT is not available 

when all engines are operational. 

(b) Operating instructions: 

(1) The applicant must provide data 

on engine performance characteristics 

and variability to enable the airplane 

manufacturer to establish airplane 

thrust assurance procedures. 

§ 33.7 Engine ratings and operating 

limitations. 

(a) The Rated 10-minute OEI 

TOTHAT and the associated operating 

limitations are established as follows: 

(1) The thrust is the same as the 

engine takeoff rated thrust with 

extended flat rating corner point, 

(2) The rotational speed limits are the 

same as those associated with the 

engine takeoff rated thrust, 

(3) The applicant must establish a gas 

temperature steady-state limit and, if 

necessary, a transient gas 

overtemperature limit for which the 

time duration is no longer than 30 

seconds, and 

(4) The use is limited to two periods 

of no longer than 10 minutes each in 

any one flight, and followed by 

mandatory inspection and maintenance 

actions prescribed by § 33.4(a) of these 

special conditions. 

(b) The applicant must propose 

language to include in the type 

certificate data sheet specified in § 21.41 

for the following: 

(1) The Rated 10-minute OEI 

TOTHAT and associated limitations. 

(2) As required by § 33.5(b), Operating 

instructions, include a note stating that 

‘‘Rated 10-Minute One Engine 

Inoperative Takeoff Thrust at High 

Ambient Temperature’’ (Rated 10- 

minute OEI TOTHAT) means the 

approved engine thrust developed 

under specified altitudes and 

temperatures within the operating 

limitations established for the engine, 

and for continuation of flight operation 

after failure or shutdown of one engine 

in a multi-engine airplane during takeoff 

operation. Use is limited to two periods, 

no longer than 10 minutes each in any 

one flight, and followed by mandatory 

inspection and maintenance actions. 

(3) As required by § 33.5(b), Operating 

instructions, include a note stating that 

the engine thrust control system 

automatically resets the thrust on the 

operating engine to the Rated 10-minute 

OEI TOTHAT level when one engine 

fails during takeoff at specified altitudes 

and temperatures, and that the Rated 10- 

minute OEI TOTHAT is not available 

when all engines are operational. 

§ 33.28 Engine control systems. 

The engine must incorporate a means, 

or a provision for a means, for automatic 

availability and automatic control of the 

Rated 10-minute OEI TOTHAT. 

§ 33.29 Instrument connection. 

(a) The engine must: 

(1) Have means, or provisions for 

means, to alert the pilot when the Rated 

10-minute OEI TOTHAT is in use, when 

the event begins, and when the time 

interval expires. 

(2) Have means, or provision for 

means, which cannot be reset in flight, 

to: 

(i) Automatically record each use and 

duration of the Rated 10-minute OEI 

TOTHAT, and 

(ii) Alert maintenance personnel that 

the engine has been operated at the 

Rated 10-minute OEI TOTHAT, and 

permit retrieval of recorded data. 

(iii) Have means, or provision for 

means, to enable routine verification of 

the proper operation of the means in 

§ 33.29(a)(1) and (a)(2) of these special 

conditions. 

§ 33.85(b) Calibration tests. 

The applicant must base the 

calibration test on the thrust check at 

the end of the endurance test required 

by § 33.87 of these special conditions. 

§ 33.87 Endurance test. 

(a) Following completion of the tests 

required by § 33.87(b), and without 

intervening disassembly, except as 

needed to replace those parts described 

as consumables in the ICA, the 


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Federal Register / Vol. 79, No. 211 / Friday, October 31, 2014 / Rules and Regulations 64669 

1Owners of rights in sound recordings are subject 

to compulsory licenses under the Copyright Act. 

See, e.g., 17 U.S.C. 112(e) (ephemeral recordings), 

114 (d)(2), (3) (transmission). The Judges are tasked 

to adjudicate, inter alia, disputes relating to 

licensing fees. See, e.g., 17 U.S.C. 112(e)(3), (4), 

114(f), 801, 803, 804. 

2See 76 FR 13026 (Mar. 9, 2011) (Web III). 

3 Intercollegiate Broadcasting Sys., Inc. v. 

Copyright Royalty Board, 684 F.3d 1332, 1342 (D.C. 

Cir. 2012), cert. denied, 133 S. Ct. 2735 (2013). 

4 Intercollegiate Broadcasting Sys., Inc. v. 

Copyright Royalty Board, No. 10–1314 (D.C. Cir. 

Sept. 30, 2013) (order granting joint motion for 

vacatur and remand). 

applicant must conduct the following 

test sequence for a total time of not less 

than 135 minutes: 

(1) Ten minutes at Rated 10-minute 

OEI TOTHAT, 

(2) Sixty-five minutes at rated 

maximum continuous thrust, 

(3) One minute at 50 percent of rated 

takeoff thrust, 

(4) Ten minutes at Rated 10-minute 

OEI TOTHAT, 

(5) One minute at flight idle, 

(6) Ten minutes at Rated 10-minute 

OEI TOTHAT, 

(7) Five minutes at rated maximum 

continuous thrust, 

(8) One minute at 50 percent of rated 

takeoff thrust, 

(9) Five minutes at Rated 10-minute 

OEI TOTHAT, 

(10) One minute at flight idle, 

(11) Ten minutes at Rated 10-minute 

OEI TOTHAT, 

(12) Five minutes at rated maximum 

continuous thrust, 

(13) One minute at 50 percent of rated 

takeoff thrust, 

(14) Nine minutes at Rated 10-minute 

OEI TOTHAT, and 

(15) One minute at flight idle 

(b) The test sequence of § 33.87(a)(1) 

through (a)(15) of these special 

conditions must be run continuously. If 

a stop occurs during these tests, the 

interrupted sequence must be repeated 

unless the applicant shows that the 

severity of the test would not be 

reduced if the current tests were 

continued. 

(c) Where the engine characteristics 

are such that acceleration to the Rated 

10-minute OEI TOTHAT results in a 

transient overtemperature in excess of 

the steady-state temperature limit 

identified in § 33.7(a)(3) of these special 

conditions, the transient gas 

overtemperature must be applied to 

each acceleration to the Rated 10- 

minute OEI TOTHAT of the test 

sequence in § 33.87(a) of these special 

conditions. 

§ 33.93 Teardown inspection. 

The applicant must perform the 

teardown inspection required by 

§ 33.93(a) after completing the 

endurance test prescribed by § 33.87 of 

these special conditions. 

§ 33.201 Design and test requirements for 

Early ETOPS eligibility. 

In addition to the requirements of 

§ 33.201(c)(1), the simulated ETOPS 

mission cyclic endurance test must 

include two cycles of 10 minute 

duration, each at the Rated 10-minute 

OEI TOTHAT; one before the last 

diversion cycle and one at the end of the 

ETOPS test. 

Issued in Burlington, Massachusetts, on 

October 23, 2014. 

Colleen M. D’Alessandro, 

Assistant Manager, Engine and Propeller 

Directorate, Aircraft Certification Service. 

[FR Doc. 2014–25884 Filed 10–30–14; 8:45 am] 

BILLING CODE 4910–13–P 

LIBRARY OF CONGRESS 

Copyright Royalty Board 

37 CFR Part 380 

[2005–1 CRB DTRA (Webcasting II)] 

Digital Performance Right in Sound 

Recordings and Ephemeral 

Recordings 

AGENCY: Copyright Royalty Board, 

Library of Congress. 

ACTION: Final Determination after 

Second Remand. 

SUMMARY: The Copyright Royalty Judges 

are announcing their final 

determination upholding the validity 

and application of the $500 minimum 

fee for noncommercial webcasters for 

the licensing period 2006 through 2010. 

The judges issued the determination in 

response to a second order of remand by 

the United States Court of Appeals for 

the District of Columbia Circuit. Their 

review of the evidence was de novo. The 

judges issued their initial determination 

in March 2014 and received no motions 

for rehearing. 

DATES: Effective date: October 31, 2014. 

Applicability date: The fee applies to 

the license period January 1, 2006, 

through December 31, 2010. 

ADDRESSES: The determination is also 

published on the agency’s Web site at 

www.loc.gov/crb. For related matters see 

also the Federal eRulemaking Portal at 

www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: 

Richard Strasser, Senior Attorney, or 

Kim Whittle, Attorney Advisor, (202) 

707–7658 or crb@loc.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The captioned matter began with a 

notice in the Federal Register in 

February 2005. In that notice, the 

Copyright Royalty Judges (Judges) 

commenced a rate-setting proceeding 

and solicited Petitions to Participate. 

See 70 FR 7970 (February 16, 2005). The 

aim of the proceeding was to establish 

royalty rates and terms, including the 

establishment of minimum fees, 

applicable to entities making ephemeral 

recordings of copyrighted sound 

recordings and digitally performing 

those recordings1. The Judges set rates 

and terms for use of the rights during 

the period 2006 through 2010, 

publishing their Final Determination on 

May 1, 2007. 72 FR 24084 (May 1, 2007) 

(Web II). 

Intercollegiate Broadcasting System, 

Inc. (IBS) appealed the Judges’ 

determination to the U.S. Court of 

Appeals for the DC Circuit. The DC 

Circuit remanded the Judges’ 

determination of the minimum fee 

established for noncommercial 

webcasters, viz. $500 per year per 

station or channel, citing insufficient 

evidence in the record to substantiate 

the $500 minimum fee. On May 18, 

2010, after granting the parties leave to 

engage in additional briefing and 

discovery, the Judges held a further 

hearing on remand. Following the 

remand hearing, the Judges issued their 

determination on September 17, 2010. 

75 FR 56873 (Sept. 17, 2010). 

IBS again appealed the Judges’ 

determination. During the pendency of 

the Web II appeal, the Judges issued a 

final determination regarding rates and 

terms for the same licenses for the 

period 2011 through 2015.2 (Web III). 

IBS appealed the Judges’ Web III 

determination challenging again the 

$500 minimum fee and asserting that 

appointment of the Judges violated the 

Appointments Clause of the U.S. 

Constitution. Given the overlap of issues 

and the introduction of a constitutional 

challenge, the DC Circuit stayed further 

proceedings on appeal in Web II. 

The DC Circuit decided Web III and 

concluded that the Judges’ 

appointments were unconstitutional. 

The DC Circuit struck portions of the 

Copyright Act that it determined to be 

unconstitutional and the Librarian of 

Congress appointed a panel of Judges 

consistent with the altered statute. The 

DC Circuit remanded Web III for further 

proceedings 3 by a constitutionally valid 

panel of Judges. After the Web III 

remand, on motion of the Web II parties, 

the DC Circuit vacated and remanded 

the Web II matter.4

The issue before the Judges is 

determination of the validity and 


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