Source: https://www.scribd.com/document/32908749/SX-Revised-Proposed-Rates-and-Terms
Timestamp: 2016-12-06 17:41:24
Document Index: 60286544

Matched Legal Cases: ['§ 351', '§ 383', '§ 112', '§ 351', '§ 801', '§ 351', '§ 380', '§ 380', '§ 112', 'art 380', '§ 380', '§ 380', '§ 380', '§ 380', '§ 380', '§ 380', '§ 7001', '§ 1704', '§ 3504', 'art 380', 'ART 380', '§ 380', '§ 380', '§ 383', '§ 380', '§ 380', 'art 383', '§ 380', '§ 112', '§ 11', '§ 112', '§ 380', '§ 380', '§ 380', '§ 380', '§ 380', '§ 380', '§ 380', '§ 370', '§ 380', '§ 370', '§ 370', '§ 370', '§ 370', '§ 380', '§ 380', '§ 380', '§ 380', '§ 380', '§ 380', '§ 380', '§ 380']

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the Copyright Royalty Judges' Rules and Procedures,
37 C.F.R. § 351.4(b)(3), SoundExchange, Inc. ("SoundExchange") proposes the rates and terms set forth herein for eligible nonsubscription transmissions and transmissions made by a new
subscription service other than a service as defined in 37 C.F.R. § 383.2(h) (collectively,
cast Transmissions"), together with the making of ephemeral recordings necessary to
facilitate Webcast Transmissions, under the statutory licenses set forth in 17 U.S.c. § 112(e) and
114 during the period January 1, 2011 through December 31, 2015.
Pursuant to 37 C.F.R. § 351.4(b )(3), SoundExchange reserves the right to revise its
proposed rates and terms at any time during the proceeding up to, and including, the filing of its
On June 1,2009, Sound Exchange and the National Association of
Judges adopt certain rates and terms for "Broadcast Retransmissions" and "Broadcaster
Webcasts," as defined therein. On August 13,2009, SoundExchange and College Broadcasters,
Inc. ("CBI") submitted a Joint Motion to Adopt Partial Settement requesting that the Copyright
U.S.C. § 801 (b)(7)(A) and 37 C.F.R. § 351.2(b)(2) on April
1, 2010). SoundExchange requests that the Judges adopt these settlements as published, subject
to correction of the transcription errors in the CBI settlement that SoundExchange noted in its
Comment Concerning Proposed Settlements, fied April 22, 2010.
cast Transmissions and related ephemeral recordings not covered by its
proposed settlements with NAB and CBI, SoundExchange requests royalty rates as set forth
A. Commercial Web casters
$0.0027 $0.0029
nonrefundable minimum fee of $500.00 for each calendar year or part of a calendar year ofthe
license period during which they are licensees, for each individual channel and each individual station (including a side channel maintained by a broadcaster that is a licensee, if not covered by
SoundExchange's proposed settlement with CBI). For each licensee, the annual minimum fee described in this paragraph shall constitute the minimum fees due under both 17 U.S.c.
casters as defined in 37 C.F.R. § 380.2(h), SoundExchange requests that if, in any month, a
noncommercial webcaster makes total transmissions in excess of 159,140 aggregate tuning hours (as defined in 37 C.F.R. § 380.2(a)) on any individual channel or station, the noncommercial
Rate Per Perfonnance
SoundExchange requests that the royalty payable under 17 U.S.c. § 112(e) be included
within, and constitute 5% of, the payments described above, consistent with the Stipulation of
SoundExchange, Inc. and Live365, Inc. Regarding the Minimum Fee for Commercial
casters and the Royalty Payable for the Making of Ephemeral Recordings, filed May 14,
SoundExchange requests that the terms currently set forth in 37 C.F.R. Part 380 be
continued, subject to the changes described herein and necessary technical and conforming
A. Server Log Retention
SoundExchange requests that the regulations expressly con
finn that the records a licensee
is required to retain pursuant to 37 C.F.R. § 380.4(h), and that are subject to audit under 37
C.F.R. § 380.6, include original server logs sufficient to substantiate rate calculation and reporting, which must be made available to the qualified auditor selected by the Collective in the
B. Late Fees for Reports of Use
SoundExchange requests that reports of
use be added to the list in 37 C.F.R. § 380.4(e) of
items that, if provided late, would trigger liability for late fees (in the amount of 1.5% per month, or the highest lawful rate, whichever is lower).
C. Identification of Licensees
SoundExchange requests that the regulations at 37 C.F.R. § 380.4(f) require statements of
account to correspond to notices of use and reports of use by (1) identifying the licensee in
exactly the way it is identified on the corresponding notice of use and report of
(2) covering the same scope of
activity (e.g., the same channels or stations). In addition,
SoundExchange requests that the regulations make clear that the "Licensee" is the entity
identified on the notice of use, statement of account, and report of
use, and that each "Licensee"
use. Finally,
must submit its own notices of
use, statements of account, and reports of
SoundExchange requests that the regulations require licensees to use an account number, that is
assigned to them by SoundExchange, on their statements of account.
D. Statements of Account
SoundExchange requests that 37 C.F.R. § 380.4(f) be modified to clarify that statements
of account are to be provided on a fonn made available by SoundExchange, and to omit the
requirement in 37 C.F.R. § 380.4(f)(3) that the signature on a statement of account be
handwritten, in order to confonn the regulations to broadly-applicable federal policy concerning
electronic signatures. See Electronic Signatures in Global and National Commerce Act, Pub. L.
No. 106-229, 114 Stat. 464 (2000) (codified at 15 U.S.C. § 7001 et seq.); see also Governent
Paperwork Elimination Act, Pub. L. No. 105-277, § 1704,112 Stat. 2681 (codified in 44 U.S.c.
§ 3504 note).
iV. Proposed Regulations
SoundExchange has attached proposed regulations implementing the foregoing requested
rates and terms, including certain technical and conforming changes. The proposed regulations
are marked to show changes from the regulations currently in 37 C.F.R. Part 380.
1. Ruppe (DC Bar 455161)
David A. andzo (DC Bar 384023)
C. Colin Rushing (DC Bar 470621) Senior Counsel
Michael B. DeSanctis (DC Bar 460961) Jared O. Freedman (DC Bar 469679) JENNER & BLOCK LLP 1099 New York Ave., N.W.
1121 14th Street, N.W., Suite 700 Washington, D.C. 20005 (v) 202-640-5858 (f) 202-640-5883 mhuppe@soundexchange.com crushing@soundexchange.com
(v) 202-639-6000 (f) 202-639-6066 dhandzo@jenner.com mdesanctis@jenner.com
j freedman@jenner.com
Counsellor SoundExchange, Inc.
PART 380. RATES AND TERMS FOR CERTAIN ELIGIBLE NONSUBSCRIPTION TRANSMISSIONS, NEW SUBSCRIPTION SERVICES AND THE MAKING OF
(Note: The subpart and section designations used herein were employed for convenience of
reference. These proposed regulations assume adoption of the proposed rule published at
75 Fed. Reg. 16,377. Accordingly, they assume that 37 C.F.R. Subpart B wil provide rates
and terms for commercial Broadcasters, 37 C.F.R. Subpart C wil provide rates and terms
for Noncommercial Educational Webcasters, and a newly-designated 37 C.F.R. Subpart A wil provide rates and terms for other users as determined in the litigated portion of this
proceeding. )
SUBPART A-COMMERCIAL WEBCASTERS AND NONCOMMERCIAL CASTERS
380.1 General.
380.2 Definitions. 380.3 Royalty fees for the public perfonnance of sound recordings and for ephemeral recordings. 380.4 Terms for making payment of royalty fees and statements of account.
380.5 Confidential information.
380.6 Verification of
royalty payments. 380.7 Verification of royalty distributions. 380.8 Unclaimed funds.
§ 380.1 General.
(a) Scope. This par 3 80subpart establishes rates and terms of royalty payments for the
public performance of sound recordings in certain digital transmissions by Licensees as set forth Ephemeral herein in accordance with the provisions of 17 U.S.c. 114, and the making of
Recordings by Licensees in accordance with the provisions of 17 U.S.c. 112( e), during the
period January 1, ~2011, through December 31, ;w2015. (Note: The existing regulations variously refer to the statutory licenses as pursuant to section 112 or 112(e) and section 114 or 114(1). These proposed regulations conform subsequent provisions to this subsection, by
consistently referring to sections 112(e) and 114.)
(b) Legal compliance. Licensees relying upon the statutory licenses set forth in 17 U.S.C. this those sections, the rates and terms of part, and any other applicable regulations.
112~ and 114 shall comply with the requirements of
(c) Relationship to voluntary agreements. Notwithstanding the royalty rates and terms established in this part, the rates and terms of any license agreements entered into by Copyright this part the rates and terms of Owners and digital audio servicesLicensees shall apply in lieu of to transmission within the scope of such agreements.
§ 380.2 Definitions.
this part, the following definitions shall apply:
programming that the Licensee has transmitted during the relevant period to all Listenerslisteners within the United States from all channels and stations that provide audio programming consisting, in whole or in part, of eligible nonsubscription transmissions or noninteractive digital audio transmissions as part of a new subscription service, less the actual running time of any sound recordings for which the Licensee has obtained direct licenses apart from 17 U.S.c. 114(d)(2) or which do not require a license under United States copyright law. By way of example, if a service transmitted one hour of programming to 10 simultaneous Listenerslisteners, the service's Aggregate Tuning Hours would equal 10. If 3 minutes of that hour consisted of transmission of a directly licensed recording, the service's Aggregate Tuning Hours would equal 9 hours and 30 minutes. As an additional example, if one Listenerlistener listened to a service for 10 hours (and none of the recordings transmitted during that time was directly licensed), the service's Aggregate Tuning
(a) Aggregate Tuning Hours (ATH) means the total hours of
Hours would equal 10. (Note: The term "listener" is not defined.)
caster or Noncommercial \VebcasterLicensee that owns and operates a terrestialterrestrial AM or FM radio station that is licensed by the Federal Communications Commission. (Note: Relatively few Licensees wil be
(b) Broadcaster is a type of Commercial 'Neb
Broadcasters as defined in this subsection if the proposed rule published at 75 Fed. Reg. 16,377, and the related changes to subsection (g) below, are adopted. However, SoundExchange suggests keeping this defined term for clarity in the few provisions in which it is used, because some broadcasters (e.g., noncommercial broadcasters not affiiated with schools) wil remain subject to these rates and terms.)
(c) Collective is the collection and distribution organization that is designated by the license period, the Collective is
Copyright Royalty Judges. For the 2006 20102011-2015
(d) Commercial Webcaster is a Licensee, other than a Noncommercial Web
caster, that
makes eligible digital audio transmissions.
(e) Copyright Owners are sound recording copyright owners who are entitled to royalty
payments made under this part pursuant to the statutory licenses under 17 U.S.C. 112(e) and
114æ.
(f) Ephemeral Recording is a phonorecord created for the purpose of facilitating a transmission of a public performance of a sound recording under a statutory license in
accordance with 17 U.S.c. 114æ, and subject to the limitations specified in 17 U.S.C.112(e).
(g) Licensee is a person that has obtained a statutory license under 17 U.S.c. 114, and the implementing regulations, to make eligible nonsubscription transmissions, or noninteractive
digital audio transmissions as part of a new subscription service (as defined in 17 U.S.C.
114(j(8)) other than a Service as defined in § 383.Uh), or that has obtained a statutory license
under 17 U.S.C. 112(e), and the implementing regulations, to make Ephemeral Recordings for
use in facilitating such transmissions. but that is not (1) a Broadcaster as defined in § 380.11; or
(2) a Noncommercial Educational Webcaster as defined in § 380.21.
(N ote: The exclusion in the preamble of this subsection recognizes that these rates and terms do not apply to the new subscription services addressed in
Part 383. The exclusions in paragraphs (1) and (2) assume adoption of the
proposed rule published at 75 Fed. Reg. 16,377.)
(h) Noncommercial Webcaster is a Licensee that makes eligible digital audio
transmissions and:
(1) Is exempt from taxation under section 501 of the Internal Revenue Code of 1986 (26 U.S.C. 501),
(2) Has applied in good faith to the Internal Revenue Service for exemption from the Internal Revenue Code and has a commercially reasonable expectation that such exemption shall be granted, or
taxation under section 501 of
(3) Is operated by a State or possession or any governmental entity or subordinate thereof, or by the United States or District of Columbia, for exclusively public purposes.
(i) Performance is each instance in which any portion of a sound recording is publicly performed to a Listenerlistener by means of a digital audio transmission (e.g., the delivery of any portion of a single track from a compact disc to one Listenerlistener) but excluding the following:
(1) A performance of a sound recording that does not require a license (e.g., a sound recording that is not copyrighted); (2) A performance of a sound recording for which the service has previously obtained a license from the Copyright Owner of such sound recording; and
(i) Makes no more than incidental use of sound recordings including, but not limited to, brief musical transitions in and out of commercials or program segments, brief performances during news, talk and sports programming, brief
background performances during disk jockey announcements, brief performances during commercials of sixty seconds or less in duration, or brief performances during sporting or other public events and
(k) Qualtfzed Auditor is a Certified Public Accountant.
(1) Side Channel is a channel on the website of a broadcasterBroadcaster which channel
transmits eligible transmissions that are not simultaneously transmitted over the air by the broadcasterBroadcaster.
§ 380.3 Royalty fees for the public performance of sound recordings and for ephemeral
(a) Rovalty rates. Royalty rates and fees for eligible digital transmissions of sound
recordings made pursuant to 17 U.S.c. 114, and the making of ephemeral recordings pursuant to 17 U.S.C. 112~ are as follows:
(1) Commercial Webcasters: (i) The per performance fee for 2006 2010: For all digital audio transmissions, including simultaneous digital audio retransmissions of overthe-air AM or FM radio broadcasts, and related Ephemeral Recordings. a Commercial
caster wil pay a royalty of: $.0021 per performance for 2011. $.0023 per performance for 2012. $.0025 per performance for 2013. $.0027 per performance for
2014. and $.0029 per performance for 2015.performance royalty of: $.0008 per perfonnance for 2006, $.0011 per performance for 2007, $.0011 per performance for
2008, $.0018 per performance for 2009, and $.0019 per performance for 2010. The
royalty payable under 17 U. S. C. 112 for any reproduction of a phonorecord made by a
Commercial \Vebcaster during this license period and used solely by the Commercial caster to facilitate transmissions for v/hich it pays royalties as and when provided in 'Neb this section is deemed to be included within such royalty payments.
(ii) Optional transitional Aggregate Tuning Hour fee for 2006 2007: The following Aggregate Tuning Hours (ATH) usage rate calculation options, in lieu the per performance fee, are available for the transition period of2006 and of
Prior Oti';r~ I $OoO~~~ . $QOOO76p:r 1 £TH. . I . Fees . $QQl1+~rn . ~1i;u1st I =~, .
I $0.0169 per AIM 1 ~O'Ol2~ ~::1AIM ~o'o169 ~:: nTH $0.0127 per £TH
I $0.0011 per AIM' ~o'ool1 ~:: 1 £TH.
(iii) "Non Music Programming" is defined as Broadcaster programming reasonably classified as neViS, talk, sports or business programming; "Broadcast Simulcast Progrmnming" is defined as Broadcaster simulcast programming not reasonably classified as news, talk, sports or business progrmnming; and "Other Programming" is defined as programming other than either Broadcaster simulcast programming or Broadcaster programming reasonably classified as ne\vs, talk, sports or business programming.
(2) Noncommercial Webcasters: (i) For all digital audio transmissions totalingtotallng not more than 159,140 Aggregate Tuning Hours (ATH) in a month, including simultaneous digital audio retransmissions of over-the-air AM or FM radio
broadcasts, and related Ephemeral Recordings. a Noncommercial Webcaster wil pay
an annual per channel or per station performance royalty of $500 in 2006, 2007, 2008, 2009 and 2010.2011. 2012, 2013. 2014 and 2015.
(ii) For all digital audio transmissions totalingtotallng in excess of 159,140 Aggregate Tuning Hours (ATH) in a month, including simultaneous digital audio retransmissions of over-the-air AM or FM radio broadcasts, and caster wil pay a related Ephemeral Recordings. a Noncommercial Web
performance royalty of: $.0021 per performance for 2011. $.0023 per
performance for 2012, $.0025 per performance for 2013, $.0027 per performance for 2014. and $.0029 per performance for 2015.$.0008 per perfonnance for 2006, $.0011 per performance for 2007, $.0011 per performance
for 2008, $.0018 per perfonnance for 2009, and $.0019 per performance for 2010.
(iii) The following Aggregate Tuning Hours (ATH) usage rate calculation options, in lieu of the per perfonnance fee, are available for the transition period
of2006 and 2007:
Other progrmnming
Broadcast simulcast
$0.0117 per ATH $0.0123 per ATH $0.0169 per ATH
programming $0.0088 per ATH $0.0092 per ATH $0.0127 per ATH
Non music programming $0.000762 per ATH. $0.0008 per ATH. $0.0011 per i\TH.
(iv) "Non Music Programming" is defined as Broadcaster programming
reasonably classified as nevis, talk, sports or business prot,lfamming; "Broadcast
Simulcast Programming" is defined as Broadcaster simulcast programming not reasonably classified as news, talk, sports or business programming; and "Other Programming" is defined as programming other than either Broadcaster simulcast progrmnming or Broadcaster programming reasonably classified as news, talk, sports or business programming.
phonorecord made by a Noncommercial 'Neb
(v) The royalty payable under 17 U. s. C. 112 for any reproduction of a caster duing this license period and
used solely by the Noncommercial \Vebcaster to facilitate transmissions for \vhich
it pays royalties as and when provided in this section is deemed to be included vi'thin such royalty payments.
(b) Minimum lee-( 1) Commercial Webcasters. Each Commercial Webcaster will pay an annual, nonrefundable minimum fee of $500 for each calendar year or part of a calendar year of the period 2006 20102011-2015 during which it is a Licensee pursuant to 17 U.S.C. 112(e) or 114. This annual minimum fee is payable for each individual channel and each individual station maintained by Commercial Webcasters, and is also payable for each individual Side Channel casters, provided that a Commercial maintained by Broadcasters who are Commercial Web Web caster shall not be required to pay more than $50,000 per calendar year in minimum fees in the aggregate (for 100 or more channels or stations). The minimum fee payable under 17 U.S.c. 112 is deemed to be included within the minimum fee payable under 17 U.S.C. 111. For each
such Commercial Webcaster. the annual minimum fee described in this paragraph shall
constitute the minimum fees due under both 17 U.S.C. §§ 112(e)(4) and 114(Q(2)(ß). Upon
caster wil receive a credit in the amount of payment of the minimum fee, the Commercial Web the minimum fee against any additional royalty fees payable in the same calendar year.
caster wil pay an annual, nonrefundable minimum fee of $500 for each calendar year or part of a calendar year of the license period 2011-2015 during which they are Licenseesit is a Licensee pursuant to licenses under 17 U.S.C. 11Ue) or 114. This annual minimum fee is payable for each individual channel and each individual station maintained by Noncommercial Webcasters~ and is also payable for each individual Side Channel maintained by Broadcasters who are Noncommercial Webcasters.Licensees. The minimum fee
(2) Noncommercial Webcasters. Each Noncommercial Web
payable under 17 U.S.c. 112 is deemed to be included within the minimum fee payable
under 17 U.S.C. 114.For each such Commercial Web
caster. the annual minimum fee
described in this paragraph shall constitute the minimum fees due under both 17
U.S.C. §§ 11Ue)(4) and 114(Q(2)(BL. Upon payment of
the minimum fee, the LicenseeN on commercial Webcaster will receive a credit in the amount of the minimum fee against any additional royalty fees payable in the same calendar year.
(c) Ephemeral recordings. The royalty payable under 17 U.S.c. 112(e) for the making of all Ephemeral Recordings used by the Licensee solely to faciltate transmissions for which it pays royalties shall be included within. and constitute 5% of. the total royalties payable under §§ 112(e) and 114.
§ 380.4 Terms for making payment of royalty fees and statements of account.
(a) Payment to the Collective. A Licensee shall make the royalty payments due under
§ 380.3 to the Collective.
(b) Designation of the Collective. (1) Until such time as a new designation is made, SoundExchange, Inc., is designated as the Collective to receive statements of account and royalty
payments from Licensees due under § 380.3 and to distribute such royalty payments to each Copyright Owner and Performer, or their designated agents, entitled to receive royalties under 17
U.S.C. 112(e) or 114(g).
(2) If SoundExchange, Inc. should dissolve or cease to be governed by a board consisting of equal numbers of representatives of Copyright Owners and Performers, then it shall be replaced by a successor Collective upon the fulfillment ofthe requirements set forth in paragraph (b )(2)(i) of this section.
(i) By a majority vote of
the nine Copyright Owner representatives and the
nine Performer representatives on the SoundExchange board as of
preceding the condition precedent in paragraph (b )(2) of this section, such representatives shall file a petition with the Copyright Royalty B-Judges designating a successor to collect and distribute royalty payments to Copyright
Owners and Performers entitled to receive royalties under 17 U.S.C. 112(e) or
114(g) that have themselves authorized suthe Collective.
(ii) The Copyright Royalty Judges shall publish in the Federal Register
within 30 days of receipt of a petition filed under paragraph (b )(2)(i) of this
section an order designating the Collective named in such petition.
(c) Monthly payments. A Licensee shall make any payments due under § 380.3 byon a
monthly basis on or before the 45th day after the end of each month for that month, except that payments due under § 380.3 for the period beginning January 1, 2006, through the last day of the month in \vhich the Copyright Royalty Judges issue their final determination adopting these rates m1d tenns shall be due 45 days after the end of such period. All monthly payments shall be rounded to the nearest cent.
(d) Minimum payments. A Licensee shall make any minimum payment due under
§ 380.3(b) by January 31 of
the applicable calendar year, except that:
(1) Payment due under § 380.3(b) for 2006 and 2007 shall be due 15 days after
the last day of the mont in \vhich the Copyright Royalty Judges issue their final
detennination adopting these rates and terms.
(2) Payment payment for a Licensee that has not previously made eligible nonsubscription transmissions, noninteractive digital audio transmissions as part of a new
subscription service or Ephemeral Recordings pursuant to the licenses in 17 U.S.C. 114
and/or 17 U.S.C. 112(e) shall be due by the 45th day after the end of
the Licensee commences to do so.
(e) Late payments and statements ol account. A Licensee shall pay a late fee of 1.5% per
month, or the highest lawful rate, whichever is lower, for any payment, statement of account and/or statement of accountreport of use pursuant to § 370.4 received by the Collective after
the due date. Late fees shall accrue from the due date until payment isand the related statement
of account and report of use are received by the Collective.
(f) Statements of account. Any payment due under § 380.3 shall be accompanied by a corresponding statement of account on a form made available by the Collective. Each
payment and related statement of account and report of use pursuant to § 370.4 must cover
the same scope of activity (e.g.. the same Licensee and the same channels or stations). A statement of account shall contain the following information:
(1) The name of
the Licensee. in exactly the way it appears on the relevant
notice of use pursuant to § 370.2 and report of use pursuant to § 370.4;
(2) The account number assigned to the Licensee by the Collective. if the
Licensee has been notified of such account number by the Collective;
mSuch information as is necessary to calculate the accompanying royalty payment;
(2~) The name, address, business title, telephone number, facsimile number (if any), electronic mail address and other contact information of the person to be contacted for information or questions concerning the content of the statement of account;
(~~) The handviritten signature of:
(i) The owner of the Licensee or a duly authorized agent of
the owner, if
the Licensee is not a partnership or corporation;
(iii) An officer of the corporation, if
the Licensee is a corporation.
(4£i) The printed or typewritten name ofthe person signing the statement of
(.sZ) The date of signature;
(ó~) If the Licensee is a partnership or corporation, the title or offcial position held in the partnership or corporation by the person signing the statement of account;
(-1,2) A certification of the capacity of the person signing; and
(&10) A statement to the following effect:
I, the undersigned owner or agent of the Licensee, or officer or partner, have examined this statement of account and hereby state that it is true, accurate, and complete to my knowledge after reasonable due diligence.
(g) Distribution of royalties. (l) The Collective shall promptly distribute royalties received from Licensees to Copyright Owners and Performers, or their designated agents, that are entitled to such royalties. The Collective shall only be responsible for making distributions to those Copyright Owners, Performers, or their designated agents who provide the Collective with such information as is necessary to identify the correct recipient. The Collective shall distribute royalties on a basis that values all performances by a Licensee equally based upon the use requirements for Licensees contained in § 370.3 of information provided under the reports of this chapter.
(2) If the Collective is unable to locate a Copyright Owner or Performer entitled to a distribution of royalties under paragraph (g)(1) of this section within 3 years from the date of payment by a Licensee, such distribution may first be applied to the costs directly attributable to the administration of that distribution. The foregoing shall apply
notwithstanding the common law or statutes of any State.
royalties shall be handled in
accordance with § 380.8.
(h) Retention of records. Books and records of a Licensee and of the Collective relating to payments of and distributions of royalties shall be kept for a period of not less than the prior 3
calendar years. Such books and records of the Licensee shall include original server logs sufficient to substantiate all rate calculation and reporting. and must be made available to the Collective's Qualified Auditor in the event of an audit pursuant to § 380.6.
§ 380.5 Confidential information.
this part, "Confidential Information" shall include the statements of account and any information contained therein, including the amount of royalty payments, and any infonnation pertaining to the statements of account reasonably designated as confidential by the Licensee submitting the statement.
(a) Definition. For purposes of
(b) Exclusion. Confidential Information shall not include documents or information that at the time of delivery to the Collective are public knowledge. The party claiming the benefit of this provision shall have the burden of proving that the disclosed information was public knowledge. Confidential Information. In no event shall the Collective use any Confidential (c) Use of Information for any purpose other than royalty collection and distribution and activities related
directly thereto.
(d) Disclosure of Confidential Inlormation. Access to Confidential Information shall be limited to:
(l) Those employees, agents, attorneys, consultants and independent contractors the Collective, subject to an appropriate confidentiality agreement, who are engaged in the collection and distribution of royalty payments hereunder and activities related their performing such duties during the ordinary course of thereto, for the purpose of work and who require access to the Confidential Information;
(2) An independent and Qualified Auditor, subject to an appropriate confidentiality agreement, who is authorized to act on behalf of the Collective with respect to verification of a Licensee's statement of account pursuant to § 380.6 or on behalf of a Copyright Owner or Performer with respect to the verification of royalty
distributions pursuant to § 380.7;
(3) Copyright Owners and Performers, including their designated agents, whose works have been used under the statutory licenses set forth in 17 U.S.c. 112(e) and 114æ by the Licensee whose Confidential Information is being supplied, subject to an appropriate confidentiality agreement, and including those employees, agents, attorneys, consultants and independent contractors of such Copyright Owners and Performers and their designated agents, subject to an appropriate confidentiality agreement, for the purpose of perfonning their duties during the ordinary course of their work and who require access to the Confidential Information; and
(4) In connection with future proceedings under 17 U.S.C. 112(e) and 114æ
before the Copyright Royalty Judges, and under an appropriate protective order, attorneys, consultants and other authorized agents of the parties to the proceedings or the
(e) Saleguarding olConfidential Information. The Collective and any person identified in this section shall implement procedures to safeguard against unauthorized access to or dissemination of any Confidential Information using a reasonable standard of care, but no less than the same degree of security used to protect Confidential Infonnation or similarly sensitive information belonging to the Collective or person.
paragraph (d) of
§ 380.6 Verification of royalty payments.
(b) Frequency of verifcation. The Collective may conduct a single audit of a Licensee, upon reasonable notice and during reasonable business hours, during any given calendar year, for any or all of the prior 3 calendar years, but no calendar year shall be subject to audit more than
(c) Notice ol intent to audit. The Collective must file with the Copyright Royalty
BoJudges a notice of intent to audit a particular Licensee, which shall, within 30 days of the
the notice, publish in the Federal Register a notice announcing such filing. The filing of notification of intent to audit shall be served at the same time on the Licensee to be audited. Any such audit shall be conducted by an independent and Qualified Auditor identified in the notice, and shall be binding on all parties.
(d) Acquisiton and retention of report. The Licensee shall use commercially reasonable efforts to obtain or to provide access to any relevant books and records maintained by third
parties for the purpose of the audit. The Collective shall retain the report of the verification for a period of not less than 3 years.
was perfonned in the ordinary course of
(e) Acceptable verifcation procedure. An audit, including underlying paperwork, which business according to generally accepted auditing standards by an independent and Qualified Auditor, shall serve as an acceptable verification
procedure for all parties with respect to the information that is within the scope of
(f) Consultation. Before rendering a written report to the Collective, except where the auditor has a reasonable basis to suspect fraud and disclosure would, in the reasonable opinion of the auditor, prejudice the investigation of such suspected fraud, the auditor shall review the tentative written findings of the audit with the appropriate agent or employee of the Licensee being audited in order to remedy any factual errors and clarify any issues relating to the audit; Provided that an appropriate agent or employee ofthe Licensee reasonably cooperates with the auditor to remedy promptly any factual errors or clarify any issues raised by the audit.
(g) Costs of the verifcation procedure. The Collective shall pay the cost of the verification procedure, unless it is finally determined that there was an underpayment of 10% or more, in which case the Licensee shall, in addition to paying the amount of any underpayment, bear the reasonable costs of the verification procedure.
§ 380.7 Verification of royalty distributions.
(b) Frequency of verifcation. A Copyright Owner or Performer may conduct a single audit ofthe Collective upon reasonable notice and during reasonable business hours, during any given calendar year, for any or all of the prior 3 calendar years, but no calendar year shall be subject to audit more than once.
(c) Notice of intent to audit. A Copyright Owner or Performer must file with the Copyright Royalty BoJudges a notice of intent to audit the Collective, which shall, within 30
days ofthe filing of
the notice, publish in the Federal Register a notice announcing such filing.
The notification of intent to audit shall be served at the same time on the Collective. Any audit shall be conducted by an independent and Qualified Auditor identified in the notice, and shall be binding on all Copyright Owners and Performers. (d) Acquisition and retention of report. The Collective shall use commercially reasonable evant books and records maintained by third parties for the purpose of the audit. The Copyright Owner or Performer requesting the verification procedure shall retain the report of the verification for a period of not less than 3 years.
efforts to obtain or to provide access to any reI
was performed in the ordinary course of
(e) Acceptable verifcation procedure. An audit, including underlying paperwork, which business according to generally accepted auditing standards by an independent and Qualified Auditor, shall serve as an acceptable verification procedure for all parties with respect to the information that is within the scope of the audit.
the verifcation procedure. The Copyright Owner or Performer requesting the the procedure, unless it is finally determined that there was an underpayment of 10% or more, in which case the Collective shall, in addition to paying the amount of any underpayment, bear the reasonable costs of the verification procedure.
(g) Costs of verification procedure shall pay the cost of
§ 380.8 Unclaimed funds.
If the Collective is unable to identify or locate a Copyright Owner or Performer who is entitled to receive a royalty distribution under this part, the Collective shall retain the required payment in a segregated trust account for a period of 3 years from the date of distribution. No the 3-year period. After expiration claim to such distribution shall be valid after the expiration of of this period, the Collective may apply the unclaimed funds to offset any costs deductible under 17 U.S.C. 114(g)(3). The foregoing shall apply notwithstanding the common law or statutes of any State.
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SX Revised Proposed Rates and Terms by concerned-citizen144 viewsEmbedDownloadDescriptionProposed webcasting rates from SoundExchange who represents record labels for 2011-2015. These proposed rates are more than double what Pandora currently pays.Proposed webcasting rates from SoundExchange who represents record labels for 2011-2015. These proposed rates are more than double what Pandora currently pays. Interests: Types, Business/Law, Court FilingsRead on Scribd mobile: iPhone, iPad and Android.Copyright: Attribution Non-Commercial (BY-NC)Download as PDF, TXT or read online from ScribdFlag for inappropriate contentShow moreShow less
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