81_FR_24603 81 FR 24523 - Adjustment of Cable Statutory License Royalty Rates

81 FR 24523 - Adjustment of Cable Statutory License Royalty Rates

LIBRARY OF CONGRESS
Copyright Royalty Board

Federal Register Volume 81, Issue 80 (April 26, 2016)

Page Range24523-24525
FR Document2016-09626

The Copyright Royalty Judges (Judges) publish for comment proposed regulations governing royalty rates and terms for the distant retransmission of over-the-air television and radio broadcast stations by cable television systems to their subscribers.

Federal Register, Volume 81 Issue 80 (Tuesday, April 26, 2016)
[Federal Register Volume 81, Number 80 (Tuesday, April 26, 2016)]
[Proposed Rules]
[Pages 24523-24525]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-09626]


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LIBRARY OF CONGRESS

Copyright Royalty Board

37 CFR Chapter III

[Docket No. 15-CRB-0010-CA]


Adjustment of Cable Statutory License Royalty Rates

AGENCY: Copyright Royalty Board, Library of Congress.

ACTION: Proposed rule.

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SUMMARY: The Copyright Royalty Judges (Judges) publish for comment 
proposed regulations governing royalty rates and terms for the distant 
retransmission of over-the-air television and radio broadcast stations 
by cable television systems to their subscribers.

DATES: Comments are due no later than May 17, 2016.

ADDRESSES: Submit electronic comments via email to [email protected] or 
online at http://www.regulations.gov. Those who choose not to submit 
comments electronically should see How to Submit Comments in the 
SUPPLEMENTARY INFORMATION section below for physical addresses and 
further instructions. The proposed rule is also posted on the agency's 
Web site (www.loc.gov/crb).

FOR FURTHER INFORMATION CONTACT: Kimberly Whittle, Attorney Advisor, by 
telephone at (202) 707-7658, or by email at [email protected].

SUPPLEMENTARY INFORMATION:

Background

    On January 15, 2016, the Copyright Royalty Judges (Judges) received 
a motion from the National Cable & Telecommunications Association, the 
American Cable Association, and a group referring to itself as the 
``Phase I Parties'' requesting that the Judges adopt a partial 
settlement of the movants' interests regarding royalty rates and terms 
for the statutory copyright license for eligible cable retransmissions 
for the period 2015-2019. The settlement proposes that the rates, 
terms, and gross receipts limitations remain the same as those 
currently in effect. See 17 U.S.C. 111(d)(1)(B) and 37 CFR 256.2(c)-
(d). Motion of the Participating Parties to Adopt Partial Settlement, 
Docket No. 15-CRB-0010-CA (2015-2019) (Motion). The Judges hereby 
publish proposed regulations reflecting the proposed settlement and 
request comments from interested parties as required by 17 U.S.C. 
801(b)(7)(A).
    Section 111 of the Copyright Act grants a statutory copyright 
license to cable television systems for the distant retransmission of 
over-the-air television and radio broadcast stations to their 
subscribers. 17 U.S.C. 111(c). In exchange for the license, cable 
operators submit to the Copyright Office semiannually royalty payments 
and statements of account detailing their retransmissions. 17 U.S.C. 
111(d)(1). The Copyright Office deposits the royalties into the United 
States Treasury for later distribution to copyright owners of the 
broadcast programming that the cable systems retransmit. 17 U.S.C. 
111(d)(2).
    A cable system calculates its royalty payments in accordance with 
the statutory formula described in 17 U.S.C. 111(d)(1). Royalty rates 
are based upon a cable system's gross receipts from subscribers who 
receive retransmitted broadcast signals. For rate calculation purposes, 
cable systems are divided into three tiers based on their gross 
receipts (small, medium, and large). 17 U.S.C. 111(d)(1)(B) through 
(F). Both the applicable rates and the tiers are subject to adjustment. 
17 U.S.C. 801(b)(2).
    Every five years persons with a significant interest in the royalty 
rates may file petitions to initiate a proceeding to adjust the rates. 
17 U.S.C. 804(a) and (b). No person with a significant interest filed a 
petition to initiate a proceeding in 2015.\1\ Therefore, the Judges 
initiated this rate adjustment proceeding by notice published in the 
Federal Register in June 2015. See 17 U.S.C. 801(b)(2), 803(b)(1), 
804(a) and (b); 80 FR 35403 (Jun. 19, 2015).
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    \1\ The cable rates were last adjusted in 2005, at a time when 
the Copyright Office was transferring responsibility for royalty 
rate proceedings from Copyright Arbitration Royalty Panels (CARP) to 
the newly authorized Copyright Royalty Judges. Although the Judges 
commenced a rate proceeding relating to the 2010 rate adjustment, 
the Judges terminated it when passage of the Satellite Television 
Extension and Localism Act of 2010, Public Law 111-151, 124 Stat. 
1027 (``2010 STELA''), rendered the proceeding unnecessary. See 
Order Granting Request to Terminate Proceeding, Docket No. 2010-1 
CRB Cable Rate (July 13, 2010). At that time, although the act 
changed the relevant rates, neither the Register of Copyrights nor 
the Judges updated the statement of the prior rates in subsections 
(a) and (b) of section 256 of 37 CFR, the chapter of the Regulations 
applying to CARP. The STELA Reauthorization Act of 2014 did not 
change the cable royalty rates in Sec.  111. See Public Law 113-200, 
28 Stat. 2059 (Dec. 4, 2014).
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    The Judges received two joint Petitions to Participate, one from 
the National Cable & Telecommunications Association and the American 
Cable Association and another from a group referring to itself as the 
``Phase I Parties''.\2\ The Judges accepted these petitions and 
commenced a Voluntary Negotiation Period (VNP).
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    \2\ The Phase I Parties consist of Program Suppliers, Joint 
Sports Claimants, Public Television Claimants, Commercial Television 
Claimants, Music Claimants, Canadian Claimants Group, National 
Public Radio, and Devotional Claimants.
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    On December 15, 2015, at the conclusion of the VNP, all 
participants notified the Judges that they had settled and asked that 
cable retransmission rates remain unchanged for the rate period 2015 to 
2019, inclusive. On November 23, 2015, however, one of the 
participants, the Joint Sports Claimants (JSC),\3\ had filed a 
``Petition . . . to Initiate Cable Royalty Rate Adjustment 
Proceedings'' with a self-styled caption indicating a proceeding for 
cable rate adjustments ``for Retransmission of Certain Sports 
Telecasts.'' Given the seemingly conflicting positions of the JSC, the 
Judges rejected the settlement, without prejudice.
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    \3\ Joint Sports Claimants are: The National Basketball 
Association, the National Collegiate Athletic Association, the 
National Football League, the National Hockey League, the Office of 
the Commissioner of Baseball, and the Women's National Basketball 
Association.
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    The settling participants have now asked that the Judges adopt the 
settlement and permit continuing proceedings to determine whether and 
to what degree to make a rate adjustment under section 801(b)(2)(C). 
Motion at 1, 6-7. Section 801(b)(2)(C) provides for adjustment 
proceedings \4\ in the event the Federal Communications Commission 
(FCC) changes its rule ``with respect to . . . sports program 
exclusivity. . . .'' The JSC base their November 23, 2015 petition on 
an FCC rule change, viz., repeal of the sports exclusivity rules, 
effective November 24, 2014.\5\ The Judges announce

[[Page 24524]]

commencement of further proceedings on the issue raised by that 
petition in a separate notice in the Federal Register.
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    \4\ Apart from the quinquennial proceedings required by Sec.  
804 of the Act.
    \5\ Petition of the Joint Sports Claimants to Initiate Cable 
Royalty Rate Adjustment Proceedings (Nov. 23, 2015). In its 
petition, JSC requests that the Judges ``initiate proceedings to 
adjust the cable statutory license royalty rates `to assure that 
such rates are reasonable in light of' the repeal of the Sports 
Blackout Rules.'' Petition at 1. In its Motion to Adopt Partial 
Settlement, the self-styled ``Participating Parties,'' which 
includes JSC, states that ``[t]he Joint Sports Rule Petition 
requests a new Section 111 royalty rate pursuant to 17 U.S.C. 
801(b)(2)(C) to account for the November 2014 elimination of the 
[FCC's] Sports Rule (a ``Sports Rule Surcharge''). Motion at 1-2. 
According to the Motion, ``[n]either the Judges nor their 
predecessors have previously conducted any proceeding under Section 
801(b)(2)(C) to consider the adoption of a cable rate to account for 
changes in the FCC Sports Rule,'' although Section 801(b)(2)(C) has 
been invoked twice since its enactment with respect to the 
syndicated exclusivity provision of the section. Motion at 2, n.2.

    The Participating Parties state that they do not believe that 
the JSC Sports Rule Petition precludes adoption of their agreement 
as set forth in the Dec. 15 Settlement Notice. That agreement 
concerns only the Quinquennial Cable Rate Adjustments. It resolves 
all issues concerning those quinquennial adjustments by agreeing to 
retain without change the existing cable royalty rates (the base 
rates, 3.75 percent rate and the Syndicated Exclusivity Surcharge) 
and existing gross receipts limitations during the years 2015-19. It 
simply does not address the issue of whether the Judges should make 
any changes in cable rates pursuant to 17 U.S.C. 801(b)(2)(B) & (C) 
to account for changes in FCC cable rules.
Motion at 5-6 (emphasis original).

Statutory Timing of Adoption of Rates and Terms

    Section 801(b)(7)(A) allows for the adoption of rates and terms 
negotiated by ``some or all of the participants in a proceeding at any 
time during the proceeding'' provided the parties submit the negotiated 
rates and terms to the Judges for approval. That provision directs the 
Judges to provide those who would be bound by the negotiated rates and 
terms an opportunity to comment on the agreement. Unless a participant 
in a proceeding objects and the Judges conclude that the agreement does 
not provide a reasonable basis for setting statutory rates or terms, 
the Judges adopt the negotiated rates and terms. 17 U.S.C. 
801(b)(7)(A).
    If the Judges adopt the proposed rates and terms pursuant to this 
provision for the 2015-2019 rate period, the adopted (and thus, 
existing) rates and terms and gross receipts limitations will continue 
to be binding on all cable systems that retransmit distantly over-the-
air television and radio broadcast stations to their subscribers and on 
all copyright owners of the broadcast programming that the cable 
systems retransmit during the license period 2015-2019, except to the 
extent those rates and terms may be adjusted for sports programming in 
the portion of the proceeding focused on the effect, if any, of the FCC 
Sports Exclusivity Rule change.

Proposed Adjustments to Rates and Terms

    If the Judges adopt the proposed rules that include the terms of 
the settlement, these rules shall take effect upon final adoption. The 
Judges have statutory authority to promulgate their own rules which, 
when adopted, shall render inapplicable the prior rules that pertained 
to the rates and terms as established by the now defunct CARP, in part 
256 of the existing regulation (37 CFR, part 256).
    The Judges will update the terms, eliminate surplus verbiage, make 
the rules easier to read, and codify them in Chapter 3 of Title 37 of 
the CFR. Chapter 3 is the chapter that governs Copyright Royalty Board 
proceedings. If adopted, the proposed rules shall be designated ``part 
387.''
    Interested parties may comment and object to any or all of the 
proposed regulations contained in this notice. Such comments and 
objections must be submitted no later than May 17, 2016.

How To Submit Comments

    Interested members of the public must submit comments to only one 
of the following addresses. If not commenting by email or online, 
commenters must submit an original of their comments, five paper 
copies, and an electronic version on a CD.
    Email: [email protected]; or
    Online: http://www.regulations.gov; or
    U.S. mail: Copyright Royalty Board, P.O. Box 70977, Washington, DC 
20024-0977; or
    Overnight service (only USPS Express Mail is acceptable): Copyright 
Royalty Board, P.O. Box 70977, Washington, DC 20024-0977; or
    Commercial courier: Address package to: Copyright Royalty Board, 
Library of Congress, James Madison Memorial Building, LM-403, 101 
Independence Avenue SE., Washington, DC 20559-6000. Deliver to: 
Congressional Courier Acceptance Site, 2nd Street NE., and D Street 
NE., Washington, DC; or
    Hand delivery: Library of Congress, James Madison Memorial 
Building, LM-401, 101 Independence Avenue SE., Washington, DC 20559-
6000.

List of Subjects in 37 CFR Part 387

    Copyright, Cable Television, Royalties.

Proposed Regulations

    For the reasons set forth in the preamble, and under the authority 
of chapter 8, title 17, United States Code, the Copyright Royalty 
Judges propose to amend 37 CFR Chapter III as follows:
    Add a new Part 387.

PART 387--ADJUSTMENT OF ROYALTY FEE FOR CABLE COMPULSORY LICENSE

Sec.
387.1 General
387.2 Royalty fee for compulsory license for secondary transmission 
by cable systems.

    Authority:  17 U.S.C. 801(b)(2), 803(b)(6).


Sec.  387.1  General.

    This part establishes adjusted terms and rates for royalty payments 
in accordance with the provisions of 17 U.S.C. 111 and 801(b)(2)(A), 
(B), (C), and (D). Upon compliance with 17 U.S.C. 111 and the terms and 
rates of this part, a cable system entity may engage in the activities 
set forth in 17 U.S.C. 111.


Sec.  387.2  Royalty fee for compulsory license for secondary 
transmission by cable systems.

    (a) Royalty fee rates. Commencing with the first semiannual 
accounting period of 2015 and for each semiannual accounting period 
thereafter, the royalty fee rates for secondary transmission by cable 
systems are those established by 17 U.S.C. 111(d)(1)(B)(i)-(iv), as 
amended.
    (b) Alternate tiered rates. Commencing with the first semiannual 
accounting period of 2015 and for each semiannual accounting period 
thereafter, the alternate tiered royalty fee rates for cable systems 
with certain levels of gross receipts as described in 17 U.S.C. 
111(d)(1) (E) and (F), are those described therein.
    (c) 3.75 percent rate. Commencing with the first semiannual 
accounting period of 2015, and for each semiannual accounting period 
thereafter, and notwithstanding paragraphs (a) and (d) of this section, 
for each distant signal equivalent or fraction thereof not represented 
by the carriage of:
    (1) Any signal that was permitted (or, in the case of cable systems 
commencing operations after June 24, 1981, that would have been 
permitted) under the rules and regulations of the Federal 
Communications Commission in effect on June 24, 1981, or
    (2) A signal of the same type (that is, independent, network, or 
non-commercial educational) substituted for such permitted signal, or
    (3) A signal that was carried pursuant to an individual waiver of 
the rules and regulations of the Federal Communications Commissioning 
effect on June 24, 1981; in lieu of the royalty rates specified in 
paragraphs (a) and (d) of this section, the royalty rate shall be 3.75 
percent of the gross receipts of the cable system for each distant 
signal equivalent. Any fraction of a distant signal equivalent shall be 
computed at its fractional value.
    (d) Syndicated exclusivity surcharge. Commencing with the first 
semiannual accounting period of 2015 and for each semiannual accounting 
period thereafter, in the case of a cable system

[[Page 24525]]

located outside the 35-mile specified zone of a commercial VHF station 
that places a predicted Grade B contour, in whole or in part, over the 
cable system, and that is not significantly viewed or otherwise exempt 
from the FCC's syndicated exclusivity rules in effect on June 24, 1981, 
for each distant signal equivalent or fraction thereof represented by 
the carriage of such commercial VHF station, the royalty rate shall be, 
in addition to the amount specified in paragraph (a) of this section,
    (1) For cable systems located wholly or in part within a top 50 
television market,
    (i) 0.599 percent of such gross receipts for the first distant 
signal equivalent;
    (ii) 0.377 percent of such gross receipts for each of the second, 
third, and fourth distant signal equivalents; and
    (iii) 0.178 percent of such gross receipts for the fifth distant 
signal equivalent and each additional distant signal equivalent 
thereafter;
    (2) For cable systems located wholly or in part within a second 50 
television market,
    (i) 0.300 percent of such gross receipts for the first distant 
signal equivalent;
    (ii) 0.189 percent of such gross receipts for each of the second, 
third, and fourth distant signal equivalents; and
    (iii) 0.089 percent of such gross receipts for the fifth distant 
signal equivalent and each additional distant signal equivalent 
thereafter;
    (3) For purposes of this section ``top 50 television markets'' and 
``second 50 television markets'' shall be defined as the comparable 
terms are defined or interpreted in accordance with 47 CFR 76.51, as 
effective June 24, 1981.
    (e) Computation of rates. Computation of royalty fees shall be 
governed by 17 U.S.C. 111(d)(1)(C).

    Dated: April 20, 2016.
Suzanne M. Barnett,
Chief Copyright Royalty Judge.
[FR Doc. 2016-09626 Filed 4-25-16; 8:45 am]
 BILLING CODE 1410-72-P



                                                                            Federal Register / Vol. 81, No. 80 / Tuesday, April 26, 2016 / Proposed Rules                                                       24523

                                                      Dated: April 7, 2016.                                (Motion). The Judges hereby publish                     National Cable & Telecommunications
                                                   J.S. Dufresne,                                          proposed regulations reflecting the                     Association and the American Cable
                                                   Captain, U.S. Coast Guard, Captain of the               proposed settlement and request                         Association and another from a group
                                                   Port North Carolina.                                    comments from interested parties as                     referring to itself as the ‘‘Phase I
                                                   [FR Doc. 2016–09677 Filed 4–25–16; 8:45 am]             required by 17 U.S.C. 801(b)(7)(A).                     Parties’’.2 The Judges accepted these
                                                   BILLING CODE 9110–04–P
                                                                                                              Section 111 of the Copyright Act                     petitions and commenced a Voluntary
                                                                                                           grants a statutory copyright license to                 Negotiation Period (VNP).
                                                                                                           cable television systems for the distant                   On December 15, 2015, at the
                                                   LIBRARY OF CONGRESS                                     retransmission of over-the-air television               conclusion of the VNP, all participants
                                                                                                           and radio broadcast stations to their                   notified the Judges that they had settled
                                                   Copyright Royalty Board                                 subscribers. 17 U.S.C. 111(c). In                       and asked that cable retransmission
                                                                                                           exchange for the license, cable operators               rates remain unchanged for the rate
                                                   37 CFR Chapter III                                      submit to the Copyright Office                          period 2015 to 2019, inclusive. On
                                                                                                           semiannually royalty payments and                       November 23, 2015, however, one of the
                                                   [Docket No. 15–CRB–0010–CA]                             statements of account detailing their                   participants, the Joint Sports Claimants
                                                                                                           retransmissions. 17 U.S.C. 111(d)(1).                   (JSC),3 had filed a ‘‘Petition . . . to
                                                   Adjustment of Cable Statutory License                   The Copyright Office deposits the                       Initiate Cable Royalty Rate Adjustment
                                                   Royalty Rates                                           royalties into the United States Treasury               Proceedings’’ with a self-styled caption
                                                   AGENCY:  Copyright Royalty Board,                       for later distribution to copyright                     indicating a proceeding for cable rate
                                                   Library of Congress.                                    owners of the broadcast programming                     adjustments ‘‘for Retransmission of
                                                   ACTION: Proposed rule.                                  that the cable systems retransmit. 17                   Certain Sports Telecasts.’’ Given the
                                                                                                           U.S.C. 111(d)(2).                                       seemingly conflicting positions of the
                                                   SUMMARY:   The Copyright Royalty Judges                    A cable system calculates its royalty                JSC, the Judges rejected the settlement,
                                                   (Judges) publish for comment proposed                   payments in accordance with the                         without prejudice.
                                                   regulations governing royalty rates and                 statutory formula described in 17 U.S.C.                   The settling participants have now
                                                   terms for the distant retransmission of                 111(d)(1). Royalty rates are based upon                 asked that the Judges adopt the
                                                   over-the-air television and radio                       a cable system’s gross receipts from                    settlement and permit continuing
                                                   broadcast stations by cable television                  subscribers who receive retransmitted                   proceedings to determine whether and
                                                   systems to their subscribers.                           broadcast signals. For rate calculation                 to what degree to make a rate
                                                   DATES: Comments are due no later than                   purposes, cable systems are divided into                adjustment under section 801(b)(2)(C).
                                                   May 17, 2016.                                           three tiers based on their gross receipts               Motion at 1, 6–7. Section 801(b)(2)(C)
                                                   ADDRESSES: Submit electronic
                                                                                                           (small, medium, and large). 17 U.S.C.                   provides for adjustment proceedings 4 in
                                                   comments via email to crb@loc.gov or                    111(d)(1)(B) through (F). Both the                      the event the Federal Communications
                                                   online at http://www.regulations.gov.                   applicable rates and the tiers are subject              Commission (FCC) changes its rule
                                                   Those who choose not to submit                          to adjustment. 17 U.S.C. 801(b)(2).                     ‘‘with respect to . . . sports program
                                                                                                              Every five years persons with a                      exclusivity. . . .’’ The JSC base their
                                                   comments electronically should see
                                                                                                           significant interest in the royalty rates               November 23, 2015 petition on an FCC
                                                   How to Submit Comments in the
                                                                                                           may file petitions to initiate a                        rule change, viz., repeal of the sports
                                                   SUPPLEMENTARY INFORMATION section
                                                                                                           proceeding to adjust the rates. 17 U.S.C.               exclusivity rules, effective November
                                                   below for physical addresses and further
                                                                                                           804(a) and (b). No person with a                        24, 2014.5 The Judges announce
                                                   instructions. The proposed rule is also
                                                                                                           significant interest filed a petition to
                                                   posted on the agency’s Web site
                                                                                                           initiate a proceeding in 2015.1                            2 The Phase I Parties consist of Program
                                                   (www.loc.gov/crb).                                                                                              Suppliers, Joint Sports Claimants, Public Television
                                                                                                           Therefore, the Judges initiated this rate
                                                   FOR FURTHER INFORMATION CONTACT:                        adjustment proceeding by notice                         Claimants, Commercial Television Claimants,
                                                   Kimberly Whittle, Attorney Advisor, by                                                                          Music Claimants, Canadian Claimants Group,
                                                                                                           published in the Federal Register in                    National Public Radio, and Devotional Claimants.
                                                   telephone at (202) 707–7658, or by                      June 2015. See 17 U.S.C. 801(b)(2),                        3 Joint Sports Claimants are: The National
                                                   email at crb@loc.gov.                                   803(b)(1), 804(a) and (b); 80 FR 35403                  Basketball Association, the National Collegiate
                                                   SUPPLEMENTARY INFORMATION:                              (Jun. 19, 2015).                                        Athletic Association, the National Football League,
                                                                                                                                                                   the National Hockey League, the Office of the
                                                   Background                                                 The Judges received two joint                        Commissioner of Baseball, and the Women’s
                                                                                                           Petitions to Participate, one from the                  National Basketball Association.
                                                     On January 15, 2016, the Copyright                                                                               4 Apart from the quinquennial proceedings
                                                   Royalty Judges (Judges) received a                         1 The cable rates were last adjusted in 2005, at a   required by § 804 of the Act.
                                                   motion from the National Cable &                        time when the Copyright Office was transferring            5 Petition of the Joint Sports Claimants to Initiate

                                                   Telecommunications Association, the                     responsibility for royalty rate proceedings from        Cable Royalty Rate Adjustment Proceedings (Nov.
                                                                                                           Copyright Arbitration Royalty Panels (CARP) to the      23, 2015). In its petition, JSC requests that the
                                                   American Cable Association, and a                       newly authorized Copyright Royalty Judges.              Judges ‘‘initiate proceedings to adjust the cable
                                                   group referring to itself as the ‘‘Phase I              Although the Judges commenced a rate proceeding         statutory license royalty rates ‘to assure that such
                                                   Parties’’ requesting that the Judges adopt              relating to the 2010 rate adjustment, the Judges        rates are reasonable in light of’ the repeal of the
                                                   a partial settlement of the movants’                    terminated it when passage of the Satellite             Sports Blackout Rules.’’ Petition at 1. In its Motion
                                                                                                           Television Extension and Localism Act of 2010,          to Adopt Partial Settlement, the self-styled
                                                   interests regarding royalty rates and                   Public Law 111–151, 124 Stat. 1027 (‘‘2010              ‘‘Participating Parties,’’ which includes JSC, states
                                                   terms for the statutory copyright license               STELA’’), rendered the proceeding unnecessary.          that ‘‘[t]he Joint Sports Rule Petition requests a new
                                                   for eligible cable retransmissions for the              See Order Granting Request to Terminate                 Section 111 royalty rate pursuant to 17 U.S.C.
mstockstill on DSK4VPTVN1PROD with PROPOSAL




                                                   period 2015–2019. The settlement                        Proceeding, Docket No. 2010–1 CRB Cable Rate            801(b)(2)(C) to account for the November 2014
                                                                                                           (July 13, 2010). At that time, although the act         elimination of the [FCC’s] Sports Rule (a ‘‘Sports
                                                   proposes that the rates, terms, and gross               changed the relevant rates, neither the Register of     Rule Surcharge’’). Motion at 1–2. According to the
                                                   receipts limitations remain the same as                 Copyrights nor the Judges updated the statement of      Motion, ‘‘[n]either the Judges nor their predecessors
                                                   those currently in effect. See 17 U.S.C.                the prior rates in subsections (a) and (b) of section   have previously conducted any proceeding under
                                                   111(d)(1)(B) and 37 CFR 256.2(c)–(d).                   256 of 37 CFR, the chapter of the Regulations           Section 801(b)(2)(C) to consider the adoption of a
                                                                                                           applying to CARP. The STELA Reauthorization Act         cable rate to account for changes in the FCC Sports
                                                   Motion of the Participating Parties to                  of 2014 did not change the cable royalty rates in       Rule,’’ although Section 801(b)(2)(C) has been
                                                   Adopt Partial Settlement, Docket No.                    § 111. See Public Law 113–200, 28 Stat. 2059 (Dec.      invoked twice since its enactment with respect to
                                                   15–CRB–0010–CA (2015–2019)                              4, 2014).                                                                                            Continued




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                                                   24524                    Federal Register / Vol. 81, No. 80 / Tuesday, April 26, 2016 / Proposed Rules

                                                   commencement of further proceedings                     inapplicable the prior rules that                        Authority: 17 U.S.C. 801(b)(2), 803(b)(6).
                                                   on the issue raised by that petition in a               pertained to the rates and terms as
                                                                                                                                                                  § 387.1   General.
                                                   separate notice in the Federal Register.                established by the now defunct CARP,
                                                                                                           in part 256 of the existing regulation (37               This part establishes adjusted terms
                                                     The Participating Parties state that they do                                                                 and rates for royalty payments in
                                                   not believe that the JSC Sports Rule Petition           CFR, part 256).
                                                   precludes adoption of their agreement as set               The Judges will update the terms,                   accordance with the provisions of 17
                                                   forth in the Dec. 15 Settlement Notice. That            eliminate surplus verbiage, make the                   U.S.C. 111 and 801(b)(2)(A), (B), (C),
                                                   agreement concerns only the Quinquennial                rules easier to read, and codify them in               and (D). Upon compliance with 17
                                                   Cable Rate Adjustments. It resolves all issues          Chapter 3 of Title 37 of the CFR.                      U.S.C. 111 and the terms and rates of
                                                   concerning those quinquennial adjustments               Chapter 3 is the chapter that governs                  this part, a cable system entity may
                                                   by agreeing to retain without change the                                                                       engage in the activities set forth in 17
                                                                                                           Copyright Royalty Board proceedings. If
                                                   existing cable royalty rates (the base rates,                                                                  U.S.C. 111.
                                                   3.75 percent rate and the Syndicated                    adopted, the proposed rules shall be
                                                   Exclusivity Surcharge) and existing gross               designated ‘‘part 387.’’                               § 387.2 Royalty fee for compulsory license
                                                   receipts limitations during the years 2015–                Interested parties may comment and                  for secondary transmission by cable
                                                   19. It simply does not address the issue of             object to any or all of the proposed                   systems.
                                                   whether the Judges should make any changes              regulations contained in this notice.                     (a) Royalty fee rates. Commencing
                                                   in cable rates pursuant to 17 U.S.C.                    Such comments and objections must be
                                                   801(b)(2)(B) & (C) to account for changes in
                                                                                                                                                                  with the first semiannual accounting
                                                                                                           submitted no later than May 17, 2016.                  period of 2015 and for each semiannual
                                                   FCC cable rules.
                                                   Motion at 5–6 (emphasis original).                      How To Submit Comments                                 accounting period thereafter, the royalty
                                                                                                                                                                  fee rates for secondary transmission by
                                                                                                              Interested members of the public must
                                                   Statutory Timing of Adoption of Rates                                                                          cable systems are those established by
                                                                                                           submit comments to only one of the
                                                   and Terms                                                                                                      17 U.S.C. 111(d)(1)(B)(i)–(iv), as
                                                                                                           following addresses. If not commenting
                                                                                                                                                                  amended.
                                                      Section 801(b)(7)(A) allows for the                  by email or online, commenters must
                                                                                                                                                                     (b) Alternate tiered rates.
                                                   adoption of rates and terms negotiated                  submit an original of their comments,
                                                                                                                                                                  Commencing with the first semiannual
                                                   by ‘‘some or all of the participants in a               five paper copies, and an electronic
                                                                                                                                                                  accounting period of 2015 and for each
                                                   proceeding at any time during the                       version on a CD.
                                                                                                                                                                  semiannual accounting period
                                                   proceeding’’ provided the parties submit                   Email: crb@loc.gov; or
                                                                                                              Online: http://www.regulations.gov; or              thereafter, the alternate tiered royalty
                                                   the negotiated rates and terms to the
                                                                                                              U.S. mail: Copyright Royalty Board,                 fee rates for cable systems with certain
                                                   Judges for approval. That provision
                                                                                                           P.O. Box 70977, Washington, DC 20024–                  levels of gross receipts as described in
                                                   directs the Judges to provide those who
                                                                                                           0977; or                                               17 U.S.C. 111(d)(1) (E) and (F), are those
                                                   would be bound by the negotiated rates
                                                                                                              Overnight service (only USPS Express                described therein.
                                                   and terms an opportunity to comment
                                                                                                           Mail is acceptable): Copyright Royalty                    (c) 3.75 percent rate. Commencing
                                                   on the agreement. Unless a participant
                                                                                                           Board, P.O. Box 70977, Washington, DC                  with the first semiannual accounting
                                                   in a proceeding objects and the Judges
                                                                                                           20024–0977; or                                         period of 2015, and for each semiannual
                                                   conclude that the agreement does not
                                                                                                              Commercial courier: Address package                 accounting period thereafter, and
                                                   provide a reasonable basis for setting
                                                                                                           to: Copyright Royalty Board, Library of                notwithstanding paragraphs (a) and (d)
                                                   statutory rates or terms, the Judges
                                                                                                           Congress, James Madison Memorial                       of this section, for each distant signal
                                                   adopt the negotiated rates and terms. 17
                                                                                                           Building, LM–403, 101 Independence                     equivalent or fraction thereof not
                                                   U.S.C. 801(b)(7)(A).
                                                      If the Judges adopt the proposed rates               Avenue SE., Washington, DC 20559–                      represented by the carriage of:
                                                   and terms pursuant to this provision for                6000. Deliver to: Congressional Courier                   (1) Any signal that was permitted (or,
                                                   the 2015–2019 rate period, the adopted                  Acceptance Site, 2nd Street NE., and D                 in the case of cable systems
                                                   (and thus, existing) rates and terms and                Street NE., Washington, DC; or                         commencing operations after June 24,
                                                   gross receipts limitations will continue                   Hand delivery: Library of Congress,                 1981, that would have been permitted)
                                                   to be binding on all cable systems that                 James Madison Memorial Building, LM–                   under the rules and regulations of the
                                                   retransmit distantly over-the-air                       401, 101 Independence Avenue SE.,                      Federal Communications Commission
                                                   television and radio broadcast stations                 Washington, DC 20559–6000.                             in effect on June 24, 1981, or
                                                   to their subscribers and on all copyright                                                                         (2) A signal of the same type (that is,
                                                                                                           List of Subjects in 37 CFR Part 387                    independent, network, or non-
                                                   owners of the broadcast programming
                                                   that the cable systems retransmit during                  Copyright, Cable Television,                         commercial educational) substituted for
                                                   the license period 2015–2019, except to                 Royalties.                                             such permitted signal, or
                                                   the extent those rates and terms may be                                                                           (3) A signal that was carried pursuant
                                                                                                           Proposed Regulations                                   to an individual waiver of the rules and
                                                   adjusted for sports programming in the
                                                   portion of the proceeding focused on the                  For the reasons set forth in the                     regulations of the Federal
                                                   effect, if any, of the FCC Sports                       preamble, and under the authority of                   Communications Commissioning effect
                                                   Exclusivity Rule change.                                chapter 8, title 17, United States Code,               on June 24, 1981; in lieu of the royalty
                                                                                                           the Copyright Royalty Judges propose to                rates specified in paragraphs (a) and (d)
                                                   Proposed Adjustments to Rates and                       amend 37 CFR Chapter III as follows:                   of this section, the royalty rate shall be
                                                   Terms                                                     Add a new Part 387.                                  3.75 percent of the gross receipts of the
                                                     If the Judges adopt the proposed rules                                                                       cable system for each distant signal
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                                                                                                           PART 387—ADJUSTMENT OF                                 equivalent. Any fraction of a distant
                                                   that include the terms of the settlement,
                                                                                                           ROYALTY FEE FOR CABLE                                  signal equivalent shall be computed at
                                                   these rules shall take effect upon final
                                                                                                           COMPULSORY LICENSE                                     its fractional value.
                                                   adoption. The Judges have statutory
                                                   authority to promulgate their own rules                 Sec.
                                                                                                                                                                     (d) Syndicated exclusivity surcharge.
                                                   which, when adopted, shall render                       387.1 General                                          Commencing with the first semiannual
                                                                                                           387.2 Royalty fee for compulsory license for           accounting period of 2015 and for each
                                                   the syndicated exclusivity provision of the section.         secondary transmission by cable                   semiannual accounting period
                                                   Motion at 2, n.2.                                            systems.                                          thereafter, in the case of a cable system


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                                                                            Federal Register / Vol. 81, No. 80 / Tuesday, April 26, 2016 / Proposed Rules                                           24525

                                                   located outside the 35-mile specified                   ENVIRONMENTAL PROTECTION                               making effective comments, please visit
                                                   zone of a commercial VHF station that                   AGENCY                                                 http://www2.epa.gov/dockets/
                                                   places a predicted Grade B contour, in                                                                         commenting-epa-dockets.
                                                   whole or in part, over the cable system,                40 CFR Part 52                                         FOR FURTHER INFORMATION CONTACT:
                                                   and that is not significantly viewed or                 [EPA–R08–OAR–2013–0561, FRL–9945–57–                   Abby Fulton, Air Program, U.S.
                                                   otherwise exempt from the FCC’s                         Region 8]                                              Environmental Protection Agency
                                                   syndicated exclusivity rules in effect on                                                                      (EPA), Region 8, Mail Code 8P–AR,
                                                   June 24, 1981, for each distant signal                  Promulgation of State Implementation                   1595 Wynkoop Street, Denver, Colorado
                                                   equivalent or fraction thereof                          Plan Revisions; Infrastructure                         80202–1129, (303) 312–6563,
                                                   represented by the carriage of such                     Requirements for the 2008 Lead, 2008                   fulton.abby@epa.gov.
                                                                                                           Ozone, 2010 NO2, 2010 SO2, and 2012                    SUPPLEMENTARY INFORMATION:
                                                   commercial VHF station, the royalty rate
                                                                                                           PM2.5 National Ambient Air Quality
                                                   shall be, in addition to the amount                                                                            I. General Information
                                                                                                           Standards; Utah
                                                   specified in paragraph (a) of this
                                                   section,                                                AGENCY:  Environmental Protection                      What should I consider as I prepare my
                                                                                                           Agency (EPA).                                          comments for the EPA?
                                                      (1) For cable systems located wholly
                                                                                                           ACTION: Proposed rule.                                    1. Submitting Confidential Business
                                                   or in part within a top 50 television
                                                                                                                                                                  Information (CBI). Do not submit CBI to
                                                   market,                                                 SUMMARY:    The Environmental Protection               the EPA through http://
                                                      (i) 0.599 percent of such gross receipts             Agency (EPA) is proposing to approve                   www.regulations.gov or email. Clearly
                                                   for the first distant signal equivalent;                elements of State Implementation Plan                  mark the part or all of the information
                                                                                                           (SIP) revisions from the State of Utah to              that you claim to be CBI. For CBI
                                                      (ii) 0.377 percent of such gross
                                                                                                           demonstrate the State meets                            information on a disk or CD ROM that
                                                   receipts for each of the second, third,
                                                                                                           infrastructure requirements of the Clean               you mail to the EPA, mark the outside
                                                   and fourth distant signal equivalents;                  Air Act (Act or CAA) for the National
                                                   and                                                                                                            of the disk or CD ROM as CBI and then
                                                                                                           Ambient Air Quality Standards                          identify electronically within the disk or
                                                      (iii) 0.178 percent of such gross                    (NAAQS) promulgated for ozone on                       CD ROM the specific information that is
                                                   receipts for the fifth distant signal                   March 12, 2008, lead (Pb) on October                   claimed as CBI. In addition to one
                                                   equivalent and each additional distant                  15, 2008, nitrogen dioxide (NO2) on                    complete version of the comment that
                                                   signal equivalent thereafter;                           January 22, 2010, sulfur dioxide (SO2)                 includes information claimed as CBI, a
                                                      (2) For cable systems located wholly                 on June 2, 2010 and fine particulate                   copy of the comment that does not
                                                                                                           matter (PM2.5) on December 14, 2012.                   contain the information claimed as CBI
                                                   or in part within a second 50 television
                                                                                                           The EPA is also proposing to approve                   must be submitted for inclusion in the
                                                   market,
                                                                                                           SIP revisions the State submitted                      public docket. Information so marked
                                                      (i) 0.300 percent of such gross receipts             regarding state boards. Section 110(a) of              will not be disclosed except in
                                                   for the first distant signal equivalent;                the CAA requires that each state submit                accordance with procedures set forth in
                                                      (ii) 0.189 percent of such gross                     a SIP for the implementation,                          40 CFR part 2.
                                                   receipts for each of the second, third,                 maintenance, and enforcement of each                      2. Tips for preparing your comments.
                                                   and fourth distant signal equivalents;                  NAAQS promulgated by the EPA.                          When submitting comments, remember
                                                   and                                                     DATES: Written comments must be                        to:
                                                                                                           received on or before May 26, 2016.                       • Identify the rulemaking by docket
                                                      (iii) 0.089 percent of such gross                                                                           number and other identifying
                                                                                                           ADDRESSES: Submit your comments,
                                                   receipts for the fifth distant signal                                                                          information (subject heading, Federal
                                                                                                           identified by Docket ID No. EPA–R08–
                                                   equivalent and each additional distant                  OAR–2013–0561 at http://                               Register volume, date, and page
                                                   signal equivalent thereafter;                           www.regulations.gov. Follow the online                 number);
                                                      (3) For purposes of this section ‘‘top               instructions for submitting comments.                     • Follow directions and organize your
                                                   50 television markets’’ and ‘‘second 50                 Once submitted, comments cannot be                     comments;
                                                   television markets’’ shall be defined as                edited or removed from Regulations.gov.                   • Explain why you agree or disagree;
                                                                                                           The EPA may publish any comment                           • Suggest alternatives and substitute
                                                   the comparable terms are defined or
                                                                                                           received to its public docket. Do not                  language for your requested changes;
                                                   interpreted in accordance with 47 CFR                                                                             • Describe any assumptions and
                                                   76.51, as effective June 24, 1981.                      submit electronically any information
                                                                                                                                                                  provide any technical information and/
                                                                                                           you consider to be Confidential
                                                      (e) Computation of rates. Computation                                                                       or data that you used;
                                                                                                           Business Information (CBI) or other                       • If you estimate potential costs or
                                                   of royalty fees shall be governed by 17
                                                                                                           information whose disclosure is                        burdens, explain how you arrived at
                                                   U.S.C. 111(d)(1)(C).
                                                                                                           restricted by statute. Multimedia                      your estimate in sufficient detail to
                                                     Dated: April 20, 2016.                                submissions (audio, video, etc.) must be               allow for it to be reproduced;
                                                   Suzanne M. Barnett,                                     accompanied by a written comment.                         • Provide specific examples to
                                                   Chief Copyright Royalty Judge.                          The written comment is considered the                  illustrate your concerns, and suggest
                                                   [FR Doc. 2016–09626 Filed 4–25–16; 8:45 am]
                                                                                                           official comment and should include                    alternatives;
                                                                                                           discussion of all points you wish to                      • Explain your views as clearly as
                                                   BILLING CODE 1410–72–P
                                                                                                           make. The EPA will generally not                       possible, avoiding the use of profanity
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                                                                                                           consider comments or comment                           or personal threats; and,
                                                                                                           contents located outside of the primary                   • Make sure to submit your
                                                                                                           submission (i.e., on the web, cloud, or                comments by the comment period
                                                                                                           other file sharing system). For                        deadline identified.
                                                                                                           additional submission methods, the full
                                                                                                           EPA public comment policy,                             II. Background
                                                                                                           information about CBI or multimedia                       On March 12, 2008, the EPA
                                                                                                           submissions, and general guidance on                   promulgated a new NAAQS for ozone,


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Document Created: 2016-04-26 01:36:01
Document Modified: 2016-04-26 01:36:01
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesComments are due no later than May 17, 2016.
ContactKimberly Whittle, Attorney Advisor, by telephone at (202) 707-7658, or by email at [email protected]
FR Citation81 FR 24523 

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