[Federal Register Volume 70, Number 193 (Thursday, October 6, 2005)]
[Rules and Regulations]
[Pages 58310-58311]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-20096]


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LIBRARY OF CONGRESS

Copyright Office

37 CFR Parts 201 and 256

[Docket No. 2005-2 CARP CRA]


Adjustment of Cable Statutory License Royalty Rates

AGENCY: Copyright Office, Library of Congress.

ACTION: Final rule.

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SUMMARY: The Copyright Office of the Library of Congress is publishing 
final regulations governing the adjustment of the royalty rates for the 
cable statutory license.

DATES: These regulations are effective as of July 1, 2005.

FOR FURTHER INFORMATION CONTACT: Tanya M. Sandros, Associate General 
Counsel, or Gina Giuffreda, Attorney-Advisor, Copyright Arbitration 
Royalty Panel (CARP), P.O. Box 90779, Southwest Station, Washington, 
D.C. 20024. Telephone: (202) 707-8380. Telefax: (202) 252-3423.

SUPPLEMENTARY INFORMATION: Section 111 of the Copyright Act, 17 U.S.C., 
creates a statutory license for cable systems that retransmit to their 
subscribers over-the-air broadcast signals. Royalty fees for this 
license are calculated as percentages of a cable system's gross 
receipts received from subscribers for receipt of broadcast signals. A 
cable system's individual gross receipts determine the applicable 
percentages. These percentages, and the gross receipts limitations, are 
published in 37 CFR part 256 and are subject to adjustment at five-year 
intervals. 17 U.S.C. 801(b)(2)(A) & (D).\1\ This was a window year for 
such an adjustment.
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    \1\ Unless otherwise noted, all references are to chapter 8 of 
title 17 of the United States Code as in effect prior to May 31, 
2005, the effective date of the Copyright Royalty and Distribution 
Reform Act of 2004.
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    Such rate adjustment proceedings may be commenced upon receipt of a 
petition from a party with a significant interest in the royalty rates. 
The Library received two such petitions-one on behalf of the Office of 
the Commissioner of Baseball, the National Football League, the 
National Basketball Association, the Women's National Basketball 
Association, the National Hockey League, and the National Collegiate 
Athletic Association (collectively, the ``Joint Sports Claimants'') and 
the Motion Picture Association of America, Inc., its member companies 
and other producers and/or distributors of syndicated television 
programs (collectively, the ``Program Suppliers'') and the other from 
National Cable & Telecommunications Association (hereinafter ``NCTA''). 
In response to the Joint Sports Claimants/Program Suppliers' petition 
and before receipt of the NCTA petition, the Library published a 
Federal Register notice seeking comment on the former petition and 
directing interested parties to file a Notice of Intent to Participate 
in a Copyright Arbitration Royalty Panel (``CARP'') rate adjustment 
proceeding. 70 FR 16306 (March 30, 2005). The notice also designated a 
30-day period to enable the parties to negotiate a new rate schedule. 
37 CFR 251.63(a).
    In accordance with the March 30 notice, the Office received one 
agreement submitted jointly by representatives of all of the parties 
who filed notices of intent to participate in this proceeding. The 
agreement proposed amending the basic royalty rates and the gross 
receipts limitations, the regulations governing the filing of the 
statements of account to reflect these changes, and proposed that the 
changes become effective beginning with the second semiannual 
accounting period of 2005. The agreement also noted that the syndex 
rates were not being adjusted for the new license period. In addition, 
the parties stated that they were unable to agree on whether or how to 
adjust the 3.75% rate set forth in Sec.  256.2(c) but would continue 
their discussions and notify the Office, on or before August 10, 2005, 
as to whether they would seek such an adjustment.
    Pursuant to Sec.  251.63(b) of the CARP rules, the Library 
published in the Federal Register the proposed adjustments to the 
percentages of gross receipts paid by cable systems and the gross 
receipts limitations. 70 FR 41650 (July 20, 2005). Section 251.63(b) 
provides that the Library ``may adopt the rate embodied in the proposed 
settlement without convening an arbitration panel, provided that no 
opposing comment is received by the Librarian [of Congress] from a 
party with an intent to participate in a CARP proceeding.'' 37 CFR 
251.63(b). No comments or Notices of Intent to Participate were 
received, enabling publication of today's final regulations adopting 
the proposed agreement.
    These regulations are effective as of July 1, 2005, which means 
that the new cable rates and the gross receipts limitations are 
applicable to the second accounting period of 2005 and thereafter. 
Payment of royalties calculated on the basis of the new rates shall be 
due no later than March 1, 2006, for the accounting period beginning on 
July 1, 2005, and ending on December 31, 2005.
    The parties to this proceeding have also notified the Copyright 
Office that they will not seek an adjustment of the 3.75% rate set 
forth in Sec.  256.2(c). NCTA filed its notice with the Copyright 
Office on August 2, 2005, and a joint notice of intent not to seek 
adjustment of the 3.75% rate was filed on August 10, 2005, on behalf of 
the remaining parties. As no further adjustments of the cable rates are 
to be considered, the Library is terminating this proceeding, effective 
as of October 6, 2005. In future years, proceedings to adjust the 
section 111 cable royalty rates shall be considered by the Copyright 
Royalty Judges under a new program established by Congress with the 
passage of the Copyright Royalty and Distribution Reform Act of

[[Page 58311]]

2004, Public Law 108-419, 118 Stat. 2341.

List of Subjects

37 CFR Part 201

    Copyright, Procedures.

37 CFR Part 256

    Cable television, Royalties.

Final Regulations

0
For the reasons set forth in the preamble, the Library amends 37 CFR 
parts 201 and 256 as follows:

PART 201--GENERAL PROVISIONS

0
1. The authority citation for part 201 continues to read as follows:

    Authority: 17 U.S.C. 702


Sec.  201.17  [Amended]

0
2. Section 201.17 is amended as follows:
0
a. In paragraph (d)(2), by removing ``$379,600'' each place it appears 
and adding ``$527,600'' in its place;
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b. In paragraph (e)(12), by removing ``$98,600'' and adding 
``$137,100'' in its place; and
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c. In paragraph (g)(2)(ii), by removing ``0.956'' and adding ``1.013'' 
in its place.

PART 256--ADJUSTMENT OF ROYALTY FEE FOR CABLE COMPULSORY LICENSE

0
3. The authority citation for part 256 continues to read as follows:

    Authority: 17 U.S.C. 702, 802


Sec.  256.2  [Amended]

0
4. Section 256.2 is amended as follows:
0
a. In paragraph (a) introductory text, by removing the phrase ``the 
second semiannual accounting period of 2000'' and adding the phrase 
``the second semiannual accounting period of 2005'' in its place;
0
b. In paragraph (a)(1), by removing ``.956'' and adding ``1.013'' in 
its place;
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c. In paragraph (a)(2), by removing ``.956'' and adding ``1.013'' in 
its place;
0
d. In paragraph (a)(3), by removing ``.630'' and adding ``.668'' in its 
place;
0
e. In paragraph (a)(4), by removing ``.296'' and adding ``.314'' in its 
place;
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f. In paragraph (b) introductory text, by removing the phrase ``the 
second semiannual accounting period of 2000'' and adding the phrase 
``the second semiannual accounting period of 2005'' in its place;
0
g. In paragraph (b)(1), by removing ``$189,800'' each place it appears 
and adding ``$263,800'' in its place, and by removing $7,400'' and 
adding ``$10,400'' in its place; and
0
h. In paragraph (b)(2), by removing ``$189,800'' each place it appears, 
and adding ``$263,800'' in its place, and by removing ``$379,600'' each 
place it appears and adding ``$527,600'' in its place.

    Dated: September 13, 2005
Marybeth Peters,
Register of Copyrights.
    Approved by:
James H. Billington,
The Librarian of Congress.
[FR Doc. 05-20096 Filed 10-5-05; 8:45 am]
BILLING CODE 1410-33-S