81_FR_31603 81 FR 31506 - Notice and Recordkeeping for Use of Sound Recordings Under Statutory License

81 FR 31506 - Notice and Recordkeeping for Use of Sound Recordings Under Statutory License

LIBRARY OF CONGRESS
Copyright Royalty Board

Federal Register Volume 81, Issue 97 (May 19, 2016)

Page Range31506-31511
FR Document2016-11746

The Copyright Royalty Judges are amending a Copyright Royalty Board rule regarding reporting requirements for certain Educational Stations that pay no more than the minimum fee for their use of sound recordings under the applicable statutory licenses.

Federal Register, Volume 81 Issue 97 (Thursday, May 19, 2016)
[Federal Register Volume 81, Number 97 (Thursday, May 19, 2016)]
[Rules and Regulations]
[Pages 31506-31511]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-11746]


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LIBRARY OF CONGRESS

Copyright Royalty Board

37 CFR Part 370

[Docket No. RM 2008-7]


Notice and Recordkeeping for Use of Sound Recordings Under 
Statutory License

AGENCY: Copyright Royalty Board, Library of Congress.

ACTION: Final rule.

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SUMMARY: The Copyright Royalty Judges are amending a Copyright Royalty 
Board rule regarding reporting requirements for certain Educational 
Stations that pay no more than the minimum fee for their use of sound 
recordings under the applicable statutory licenses.

DATES: Effective May 19, 2016.

[[Page 31507]]


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

SUPPLEMENTARY INFORMATION:

Introduction

    On May 2, 2014, the Copyright Royalty Judges (Judges) published a 
document in the Federal Register seeking comments on two unrelated 
rulemaking proposals (Proposal).\1\ For the proposal that is the 
subject of this document the Judges requested comments on a proposed 
rule amendment to relax certain reporting requirements for educational 
stations that pay no more than the minimum fee for the use of sound 
recordings under the statutory licenses in Sections 112(e) and 114 of 
the Copyright Act. The Judges received over twenty comments on the 
proposal, most of which supported it. For the reasons discussed below, 
the Judges adopt the proposed amendment.
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    \1\ See 79 FR 25038. The Judges continue to analyze the second 
rulemaking proposal, submitted by SoundExchange, Inc., and the 
comments responsive thereto.
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Background

    On October 28, 2009, College Broadcasters, Inc. (CBI), American 
Council on Education (ACE), and Intercollegiate Broadcasting System, 
Inc. (IBS) (collectively, ``Petitioners'') filed a motion with the 
Judges seeking clarification of an issue purportedly raised by final 
regulations that the Judges adopted regarding reporting requirements 
for entities that digitally transmit sound recordings pursuant to 
section 114(d)(2) of the Copyright Act or that make ephemeral 
phonorecords of sound recordings pursuant to section 112(e) of that 
Act.\2\ Joint Petition for Clarification, Notice and Recordkeeping for 
Use of Sound Recordings Under the Statutory License, Docket No. RM 
2008-7 (Oct. 28, 2009) (Joint Petition). The regulations at issue are 
found in 37 CFR 370.4, and they prescribe rules for the maintenance and 
delivery of reports of use (ROUs).\3\
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    \2\ The release adopting the regulations appeared in 74 FR 52418 
(Oct. 13, 2009). The applicable rules are codified in 37 CFR part 
370.
    \3\ An ROU is a report required to be provided by an entity that 
transmits sound recordings pursuant to the statutory licenses in 
section 114(d)(2) or that makes ephemeral recordings of sound 
recordings pursuant to section 112(e) of the Copyright Act. 37 CFR 
370.1(i). ROUs must be delivered to the Collective designated by the 
Judges (currently SoundExchange, Inc.). See, e.g., 37 CFR 370.4(c). 
ROUs must include the name of the entity making the transmissions, a 
category transmission code, the featured artist of the sound 
recording, and the sound recording title, among other information. 
The current proceeding is focused only on the reporting requirements 
of ``nonsubscription transmission services,'' which are entities 
that provide audio programming consisting of performances of sound 
recordings. See 37 CFR 370.1(e). Such services are often referred to 
as webcasters.
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    For nonsubscription transmission services, except those qualifying 
as minimum fee broadcasters, the ROU must include the actual total 
performances of each sound recording during the reporting period. 37 
CFR 370.4(d)(2)(vi). Minimum fee broadcasters, however, may report, as 
an alternative to actual total performances, the aggregate tuning 
hours, the channel or program name, and play frequency. 37 CFR 
370.4(d)(2)(vii).
    Whereas most services must prepare an ROU for each calendar month 
of the year, a minimum fee broadcaster need only prepare an ROU for a 
two-week period for each calendar quarter of the year. 37 CFR 
370.4(d)(3).\4\ However, the regulations exempt minimum-fee 
broadcasters from the census reporting requirement (i.e., the 
requirement to report actual total performances) only if their stations 
are licensed by the Federal Communications Commission (FCC) because the 
FCC licensing is part of the definition of ``broadcaster.'' Petitioners 
asked that the Judges ``clarify'' that the regulations also exempt 
minimum-fee broadcasters that are not FCC-licensed broadcasters if they 
are ``educational'' in nature. Joint Petition at 2-4.
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    \4\ The weeks need not be consecutive but both must be 
completely within the calendar quarter. 37 CFR 370.4(d)(3)(ii).
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    After reviewing the Joint Petition, the Judges concluded that 
Petitioners were not seeking a clarification of the final regulations 
but rather were seeking a substantive change. In other words, the 
``clarification'' that the Petitioners sought actually amounted to a 
request to amend the census reporting requirement regulations to exempt 
non-FCC-licensed minimum-fee educational webcasters. The Judges thus 
determined that Petitioners' petition for clarification should be 
treated as a petition for rulemaking and made the Joint Petition 
subject to notice and public comment.\5\
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    \5\ 79 FR at 25039.
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    On May 2, 2014, the Judges published the Proposal in the Federal 
Register seeking comments on the Petitioners' proposal.\6\ The Judges 
requested comments on not only the Petitioners' principal proposal, 
which would exempt non-FCC-licensed minimum fee educational webcasters 
from the census reporting requirement, but also on a broader 
alternative proposal that Petitioners proffered that would expand the 
census reporting exemption to entities that are noncommercial 
webcasters but that would not be considered educational entities under 
the Petitioners' proposal.
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    \6\ 79 FR 25038. In the interest of administrative efficiency, 
the Judges also sought comments in the same notice on an unrelated 
petition for rulemaking that SoundExchange submitted. 
SoundExchange's proposal, which requested a broad range of changes 
to CRB rules, is still pending. The current release addresses only 
the census reporting requirement proposal submitted by the 
Petitioners.
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    In response to the Proposal, the Judges received approximately 
twenty-four comments.\7\ No commenter opposed the Petitioners' proposal 
for educational webcasters. SoundExchange did, however, oppose 
Petitioners' broader alternative proposal to exclude from the census 
reporting requirements noneducational noncommercial webcasters. As 
discussed below, the Judges are adopting the Petitioners' proposed 
exemption for non-FCC-licensed educational broadcasters, but are not 
adopting the broader noncommercial webcaster exemption.
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    \7\ The Judges received comments that addressed in some fashion 
the Petitioners' proposal from the following: All-Campus Radio 
Network (ACRN), Andrea Baker, CBI, IBS, KBCU-FM, KBHU-FM, KNHC, 
KSSU, KUIW, KWSC-FM, KXUL, Lasell College Radio, the National 
Association of Broadcasters and Radio Music License Committee (NAB/
RMLC), NPR, SCAD Atlanta Radio, SoundExchange, WBSU, WGSU-FM, WJCU, 
WKNC-FM, WRFL-FM, WSDP-FM, WSLX, and WSOU-FM (Seton Hall 
University).
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Petitioners' Rule Proposal

    Petitioners propose that the definition of a ``minimum fee 
broadcaster'' in 37 CFR 370.4(b)(3) be amended to include a 
nonsubscription service that: (1) Is directly operated by, or 
affiliated with and officially sanctioned by a domestically accredited 
primary or secondary school, college, university, or other post-
secondary degree-granting educational institution; and (2) the digital 
audio transmission operations of which are, during the course of the 
year, staffed substantially by students enrolled in such institution; 
and (3) is not a ``public broadcasting entity'' (as defined in 17 
U.S.C. 118(g)) qualified to receive funding from the Corporation for 
Public Broadcasting (CPB) pursuant to the criteria set forth in 47 
U.S.C. 396; and (4) is exempt from taxation under section 501 of the 
Internal Revenue Code, has applied for such exemption, or 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. Joint Petition at 2 n.1. While the 
proposed language upon which the Judges requested comments did not 
incorporate CBI's singular reference to ``Educational Stations,'' the 
proposal retained the substance of the Petitioners' proposal.
    In the Proposal soliciting comment on the proposal, in addition to 
seeking

[[Page 31508]]

comments on the proposal generally, the Judges also sought comments on 
certain specific issues. In particular, the Judges sought comment on 
how unlicensed minimum fee ``Educational Stations,'' as that term would 
be defined in Petitioners' proposal, have been reporting under the 
current regulations. The Judges also asked whether any such entities 
have ceased operations, as predicted by Petitioners and if so, how 
many. If none ceased operations, the Judges asked whether the need 
still exists for Petitioners' proposed amendment. The Judges also asked 
whether Petitioners have, in the first instance, made their case 
persuasively that the proposed amendment is warranted. If the change is 
warranted, the Judges asked whether they should adopt (1) Petitioners' 
preferred definition, which applies only to Educational Stations, or 
(2) the broader, alternate definition.\8\
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    \8\ 79 FR at 25040.
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Comment Summary

    Of the 24 comments the Judges reviewed, none opposed the specific 
language included in the Proposal, although, as discussed below, 
SoundExchange opposed adopting a more expansive exemption from the 
census reporting requirements for noncommercial webcasters that are not 
affiliated with an educational organization.
    All-Campus Radio Network's (ACRN) comment is illustrative of those 
that supported the proposal. Because it has no FCC license, ACRN cannot 
qualify as a ``minimum fee broadcaster'' under 37 CFR 370.4(b)(3).\9\ 
ACRN is, however, a Noncommercial Educational Webcaster (NEW) as 
defined in 37 CFR 380.21.\10\ As such, ACRN has a reporting waiver 
under 37 CFR 380.23(c) and (g)(1), which authorizes payment to the 
Collective of a $100 proxy fee in lieu of maintaining and delivering 
ROUs. ACRN would like to continue to report as a NEW indefinitely.\11\ 
In the alternative, ACRN supports the proposal to change 37 CFR 
370.4(b)(2) so that ACRN would qualify as a minimum fee 
broadcaster.\12\ It views this option as less desirable, however.
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    \9\ Section 370.4(b)(3) states that a minimum fee broadcaster is 
a nonsubscription service that meets the definition of a broadcaster 
pursuant to Sec.  380.2(b) and the service's payments for eligible 
transmissions do not exceed the annual minimum fee established for 
licensees relying upon the statutory licenses set forth in 17 U.S.C. 
112 and 114. At the time of the motion for clarification 37 CFR 
380.2 defined a broadcaster as a type of Licensee that owns and 
operates a terrestrial AM or FM radio station that is licensed by 
the Federal Communications Commission.
    \10\ Under Sec.  380.21, a NEW is a noncommercial webcaster (as 
defined in 17 U.S.C. 114(f)(5)(E)(i)) that has obtained a compulsory 
license, complies with all applicable provisions of the license, is 
operated by or affiliated with and sanctioned by a primary or 
secondary school, college or university or other degree-granting 
educational institution, and is not a public broadcasting entity 
qualified to receive funding from the CPB. 17 CFR 380.21. As part of 
the supporting regulations for the Section 112 and 114 webcasting 
licenses, Sec.  380.21, by its terms, expires at the end of each 
licensing period (currently December 31, 2020). See 37 CFR 
380.20(a). The most recent iteration of Sec.  380.21, which was 
adopted after comments in the current rulemaking proceeding were 
filed, includes an additional requirement that the noncommercial 
webcaster take affirmative steps not to make total transmissions in 
excess of 159,140 Aggregate Tuning Hours on any individual channel 
or station in any month, if in any previous calendar year it has 
made total transmissions in excess of 159,140 Aggregate Tuning Hours 
on any individual channel or station in any month. 37 CFR 380.21 
(2015).
    \11\ As part of the supporting regulations for the webcasting 
licenses, the reporting waiver expires every five years, unless it 
is renewed.
    \12\ ACRN states that the proposed changes are ``warranted only 
if the alternative to report under 380.23 were to not sunset 
[sic].'' ACRN Comment at 3, emphasis in original. Read in the 
context of the ACRN letter as a whole, it appears that ACRN meant 
that the proposed changes would be warranted only if the alternative 
to report under 380.23 were to sunset.
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    KBCU-FM, KBHU, KNHC, KSSU, KWSC-FM, and KXUL all generally 
concurred with the position of ACRN. KUIW and Lasell College Radio, 
which also support the proposal, state that they would probably have to 
cease broadcasting if the reporting provision for NEWs were to expire 
and they could not qualify as minimum fee broadcasters.\13\
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    \13\ KUIW Comment at 1-2. Lasell Comment at 1-2. Each commenter 
recommends that the reporting requirements applicable to NEWs be 
made permanent. Such a recommendation is beyond the scope of the 
proposal upon which the Judges sought comment in the current 
proceeding. As such, the Judges do not have adequate support in the 
record to support adopting such a proposal.
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    CBI supports continuing the reporting requirements in Sec.  380.23, 
which were negotiated as part of a settlement with SoundExchange, 
because, according to CBI, those requirements are simpler to follow and 
impose fewer obstacles than the rules with which non-NEWS must comply. 
CBI Comment at 5. CBI states that it conducted a survey and determined 
that fewer than 13% of non-FCC-licensed stations are currently able to 
report actual total performance (ATP) data. According to CBI, fewer 
than 18% of those stations reported that they would be able to find a 
means to comply with full census ATP reporting should the requirements 
in Sec.  380.23 be allowed to expire and the proposed regulations in 
the Joint Petition not be adopted.\14\ Neither CBI nor any other 
commenter provided data on any non-licensed entity that ceased 
operation due to the ROU reporting requirement. That being said, the 
great majority of commenters that are subject to the ROU reporting 
requirement appear to be paying the $100 proxy fee in lieu of reporting 
(an alternative that is now available through 2020). See Determination 
(final), Determination of Royalty Rates and Terms for Ephemeral 
Recording and Webcasting Digital Performance of Sound Recordings (Web-
IV), Docket No. 14-CRB-0001-WR (2016-2020) (Mar. 2, 2016).
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    \14\ Andrea Baker supports applying the Petitioner's preferred 
definition of ``minimum fee broadcaster'' because, according to Ms. 
Baker, the proposal is more likely to move users of sound recordings 
away from reporting of sampled data. The proposal would in fact 
allow more users to choose to report sampled data. Through 2020, 
however, to the extent they qualify to pay the proxy fee in lieu of 
reporting, the users that would benefit from the proposal are not 
reporting any sound recording play data.
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    Not surprisingly, IBS also supports its Joint Petition. IBS adds 
that it agrees with SoundExchange's position that NEWs with fewer than 
55,000 aggregate tuning hours (ATH) per month should be permitted to 
pay an annual $100 proxy fee in lieu of census reporting. IBS also 
contends that NEWs with fewer than 15,914 ATH monthly should pay a $50 
proxy fee and NEWS with fewer than 6,365 ATH monthly should pay a $20 
proxy fee. IBS believes that each of these categories should be exempt 
from the $500 annual minimum fee. Reply Comments of IBS at 1. Because 
IBS made its suggestions in Reply Comments, the Judges were unable to 
include them in the Proposal, and therefore have no basis upon which to 
adopt them.
    The National Association of Broadcasters (NAB) and the Radio Music 
License Committee (RMLC) advocate an exemption from all reporting 
requirements for broadcasters that currently pay the minimum fee of 
$500. They contend that many of these entities are already exempt from 
reporting requirements as long as they pay the $100 annual proxy fee 
(i.e., small broadcasters that stream no more than 27,777 aggregate 
tuning hours (ATH) and noncommercial educational webcasters that stream 
less than 55,000 annual ATH). Moreover, according to NAB, most of these 
entities play ``mainstream'' music that larger broadcasters play so the 
allocations of royalties paid by these entities could be made based on 
playlist data collected from larger broadcasters. NAB/RMLC Comment at 
51-52.
    According to National Public Radio, Inc. (NPR), the current 
recordkeeping and reporting system is the result of a settlement 
agreement between SoundExchange and the CPB. NPR estimates that about 
402 stations operate

[[Page 31509]]

under the agreement. NPR Comment at 7. NPR notes that it aggregates the 
reports of each of these stations and reports directly to SoundExchange 
on behalf of all the stations. NPR states that it currently operates 
under the settlement agreement with SoundExchange, and, as a result, it 
is not subject to certain of the reporting and recordkeeping 
requirements in the regulations. NPR believes, however, that the 
regulations should be flexible to allow parties that are not parties to 
agreements to be able to use the license in a manner that is not overly 
burdensome. NPR Comment at 1-3.
    SCAD Atlanta Radio \15\ is a NEW under 37 CFR 380.21. It is a web-
only, student-run station and does not have an FCC license so it cannot 
qualify as a minimum fee broadcaster under 37 CFR 370.4(b)(3). As a 
NEW, SCAD Atlanta pays the proxy fee in lieu of reporting, as permitted 
under 37 CFR 380.23. It would like to continue to report that way and 
therefore requests that the sunset provisions in the regulations be 
removed. In the alternative, SCAD Atlanta supports the proposed change 
to 37 CFR 370.4(b)(2), which would qualify SCAD Atlanta as a minimum 
fee broadcaster if the NEW designation sunsets. SCAD Atlanta states 
that if it lost the ability to report as a NEW and was forced to report 
monthly census data, the station would face considerable hardship and 
expense. SCAD Atlanta Comment at 2.
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    \15\ SCAD Atlanta states that the station is produced by 
students at the Atlanta location of the Savannah College of Art and 
Design. The Judges also received a substantially identical comment 
from ``SCAD Radio,'' which states that the station is produced by 
students at the Savannah location of the Savannah College of Art and 
Design.
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    In its initial comment, SoundExchange stated that the Joint 
Petition is moot through 2015 (and now presumably through 2020). 
According to SoundExchange, pursuant to 37 CFR 380.23(g)(2), a NEW with 
usage at a level covered by the minimum fee is currently permitted to 
provide ROUs on a sample basis as contemplated by proposed Sec.  
370.4(b)(2) and is even excused from reporting its ATH. SoundExchange 
Comment at 3. SoundExchange notes that such services report play 
frequency in lieu of reporting ATH or actual total performances.
    SoundExchange states that the vast majority of NEWs are not even 
required to provide sample ROUs. SoundExchange states that, pursuant to 
37 CFR 380.23(g)(1), NEWs with the lowest intensity of usage may elect 
to pay a proxy fee of $100 and forgo providing ROUs altogether. 
According to SoundExchange, for 2013, 97% of NEWs elected this 
reporting waiver and were not required to provide any ROUs. As a result 
of the Web-IV Determination, Sec.  380.23(g)(1) and (2) remain in 
effect through 2020, at which point the Judges will determine rates and 
terms for the next rate period (2021-2025) (Web-V).
    Nevertheless, SoundExchange does not oppose the Petitioners' 
proposed definition of ``Minimum Fee Broadcaster'' for Sec.  
370.4(b)(2). SoundExchange highlights certain technical errors in the 
proposal (i.e., SoundExchange opines that there should be a comma 
following the phrase ``officially sanctioned by'' in Sec.  
370.4(b)(2)(ii) and the reference in proposed Sec.  370.4(b)(2)(iv) 
should be Section 118(f) (rather than 118(g)).\16\ SoundExchange also 
recommends changing the proposed term from ``Minimum Fee Broadcaster'' 
to ``Eligible Minimum Fee Webcaster'' (or the like) to more accurately 
reflect the fact that certain of the services covered are not 
broadcasters. SoundExchange Comment at n.2.\17\ According to 
SoundExchange, adoption of this proposal ``seems like a reasonable 
deviation from the important principle of census reporting.'' 
SoundExchange Comment at 4.
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    \16\ The Judges adopted these technical corrections in the final 
regulation.
    \17\ The Judges believe that the term ``eligible minimum fee 
webcaster'' more accurately reflects the fact that some of the 
entities covered by the definition would not satisfy the applicable 
definition of broadcaster and therefore accept SoundExchange's 
suggestion in the adopted regulation.
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    SoundExchange does not support the broader alternative proposal to 
include internet-only noncommercial webcasters that are not educational 
webcasters (which are not currently covered by Sec.  380.23(g)(2)). For 
such webcasters, if they are staffed by professionals or use modern 
content management technology capable of readily generated ROUs on a 
census basis, they should not be exempted from census reporting just 
because they are low-intensity noncommercial users. SoundExchange does 
not believe that the Petitioners have made the case for a broader 
exemption. SoundExchange Comment at 4.
    While SoundExchange is not opposed to the narrow proposed 
definition of Minimum Fee Broadcaster in Sec.  370.4(b) (with the 
technical corrections discussed above), SoundExchange notes that ``NEWs 
would like to include in the notice and recordkeeping regulations the 
outright reporting waiver and play frequency reporting provisions of 
Section 380.23(g), but not the late fee for ROUs provided in Section 
380.23(e) or the server log retention provisions of Section 
380.23(i).'' SoundExchange Reply Comments at 7. SoundExchange does not 
believe that NEWs should be given their requested ``special exemption'' 
in these regulations because, according to SoundExchange, ``their 
concerns are addressed directly in the terms to which CBI agreed.'' 
SoundExchange Reply Comments at 8.
    SoundExchange does not believe it is fair for NEWs to pick and 
choose their favorite provisions from Sec.  380.23 that were negotiated 
by CBI. SoundExchange notes that the agreement to settle the Web IV 
proceeding as to NEWs on a basis that would generally extend the 
relevant provisions of Sec.  380.23 moots the issues raised in the 
Joint Petition through 2020. Anticipating the adoption of such 
agreement, which the Judges adopted during the Web IV proceeding, 
SoundExchange found no reason for the Judges to adopt the proposals in 
the NPRM based on the Joint Petition. SoundExchange speculates that 
under such a scenario, the Judges could revisit the question of 
reporting by NEWs based on a fresh record in five years. Otherwise, 
SoundExchange recommends that the Judges either adopt the equivalent of 
all the relevant provisions of Sec.  380.23 (i.e., the proposed late 
fee for ROUs and proposed recordkeeping provisions) or adopt only the 
changes to the definition of Minimum Fee Broadcaster proposed in the 
NPRM. SoundExchange Reply Comments at 9.

SoundExchange Settlement With CBI

    In the context of the Web IV proceeding, the Judges were presented 
with two settlements that bear on the reporting requirements at issue 
in this rulemaking.\18\ In one settlement, SoundExchange and CBI 
requested that the Judges adopt their agreement as a partial settlement 
of rates and terms under Section 112(e) and 114 of the Copyright Act 
(Act) for eligible nonsubscription transmissions by NEWs over the 
internet, and related ephemeral recordings. In the Federal Register 
document adopting the SoundExchange/CBI settlement, the Judges noted:
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    \18\ See 80 FR 58201 (Sept. 28, 2015) (adopting proposed 
settlement between SoundExchange and CBI) and 80 FR 59588 (Oct. 2, 
2015) (adopting proposed settlement between SoundExchange and NPR 
and the CPB).

    Commercial webcasters are required to make detailed, census 
reports of all sound recordings they transmit. NEWs with limited 
listenership may pay the Collective a proxy fee to avoid the burden 
of census

[[Page 31510]]

reporting. . . . A NEW electing the reporting waiver in 37 CFR 
380.23(g)(1) must pay a $100 annual proxy fee to the Collective. 
Proposed Rule 37 CFR 380.22(a).\19\
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    \19\ 80 FR at 58201.

    In adopting the SoundExchange/CBI Settlement, the Judges noted the 
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relevance of the Settlement to the current rulemaking proceeding:

    Many if not most of the comments responsive to the proposed 
recordkeeping provisions were filed by NEWs that apparently would 
qualify under the proposed Settlement to pay the proxy fee in lieu 
of census reporting in the upcoming license period. Extension until 
December 31, 2020, of the proxy fee in lieu of census reporting does 
not, however, address the precise issue raised in that rulemaking 
proceeding. The Judges shall address this issue along with a number 
of other issues relating to Part 370 in a separate publication 
focused directly on the May 2, 2014, Notice of Proposed 
Rulemaking.\20\
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    \20\ 80 FR 58201, 58205 (Sept. 28, 2015).

    In other words, although the SoundExchange/CBI settlement provided 
a means for qualifying NEWs to pay a $100 proxy fee in lieu of census 
reporting through December 31, 2020, it does not, as the current 
proposal would, provide a permanent means for entities that meet the 
proposed definition of noncommercial educational webcasters to pay the 
proxy fee in lieu of census reporting. In light of the overwhelming 
support in favor of such a reporting waiver and the lack of opposition, 
the Judges find that adopting the proposed alternative for a permanent 
exemption from census reporting requirements is beneficial and 
consistent with the Copyright Act.
    Given their adoption of the proposed exemption, the Judges decline 
to adopt a broader alternative proposed by Petitioners. Notwithstanding 
the unique stature of NEWs as noncommercial entities with an 
educational mission, the Judges do not believe extending the exemption 
to other noncommercial webcasters would be consistent with the policy 
intended to ease reporting obligations on NEWs. As discussed by some of 
the commenters, NEWs are often student-operated stations. The students 
generally perform station operations to supplement their academic 
pursuits during a given academic term. As a rule, with semester and 
summer breaks, the stations lack operational continuity.
    Without a paid administrative staff and adequate financial and 
technological support, census reporting would present a significant 
challenge for those stations that could cause the educational 
institution to discontinue the stations to avoid the administrative 
burdens. Neither the students, the educational entity, nor the artists 
would benefit from elimination of the campus stations. The Judges agree 
with SoundExchange, however, that noncommercial noneducational 
webcasters have not made the case that they face the same challenges. 
Therefore, the Judges decline to extend the reporting requirement 
exemption to noncommercial webcasters that do not have the requisite 
affiliation with an educational institution.
    SoundExchange contends that in light of the agreements 
SoundExchange, CPB, CBI, and NPR reached during the Web IV proceeding, 
which the Judges adopted, the current rulemaking is moot, at least 
through 2020. While the Judges agree that many webcasters that are 
eligible for either of the agreements will choose to pay the proxy fee 
in lieu of reporting, each such agreement has conditions and 
limitations that would not apply with respect to the proposal the 
Judges adopt today. Moreover, by adopting the proposal in the Petition 
as a permanent rule, the Judges provide certainty that, even if the 
current agreements are not extended in subsequent rate periods, 
eligible noncommercial educational webcasters will be able to avail 
themselves of the reduced reporting requirements in Sec.  370.4, 
regardless of whether they are licensed with the FCC. Such certainty is 
sufficient justification for adopting the proposal.

Final Regulations

    In consideration of the foregoing, the Copyright Royalty Judges 
amend 37 CFR part 370 as follows:

PART 370--NOTICE AND RECORDKEEPING REQUIREMENTS FOR STATUTORY 
LICENSES

0
1. The authority citation for part 370 continues to read as follows:

    Authority:  17 U.S.C. 112(e)(4), 114(f)(4)(A).


0
2. Revise Sec.  370.4(a) and (b) to read as follows:


Sec.  370.4  Reports of use of sound recordings under statutory license 
for nonsubscription transmission services, preexisting satellite 
digital audio radio services, new subscription services and business 
establishment services.

    (a) General. This section prescribes rules for the maintenance and 
delivery of Reports of Use of sound recordings under section 112(e) or 
section 114 of title 17 of the United States Code, or both, by 
nonsubscription transmission services, preexisting satellite digital 
audio radio services, new subscription services, and business 
establishment services.
    (b) Definitions. For purposes of this section, the following 
definitions apply:
    Aggregate Tuning Hours means the total hours of programming that a 
nonsubscription transmission service, preexisting satellite digital 
audio radio service, new subscription service or business establishment 
service has transmitted during the reporting period identified in 
paragraph (d)(3) of this section to all listeners within the United 
States over the relevant channels or stations, and from any archived 
programs, that provide audio programming consisting, in whole or in 
part, of eligible nonsubscription service, preexisting satellite 
digital audio radio service, new subscription service or business 
establishment service transmissions, less the actual running time of 
any sound recordings for which the service 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. For example, if a nonsubscription 
transmission service transmitted one hour of programming to 10 
simultaneous listeners, the nonsubscription transmission service's 
Aggregate Tuning Hours would equal 10. If 3 minutes of that hour 
consisted of transmission of a directly licensed recording, the 
nonsubscription transmission service's Aggregate Tuning Hours would 
equal 9 hours and 30 minutes. If one listener listened to the 
transmission of a nonsubscription transmission service for 10 hours 
(and none of the recordings transmitted during that time was directly 
licensed), the nonsubscription transmission service's Aggregate Tuning 
Hours would equal 10.
    AM/FM Webcast means a transmission made by an entity that transmits 
an AM/FM broadcast signal over a digital communications network such as 
the Internet, regardless of whether the transmission is made by the 
broadcaster that originates the AM/FM signal or by a third party, 
provided that such transmission meets the applicable requirements of 
the statutory license set forth in 17 U.S.C. 114(d)(2).
    Broadcaster means an entity that:
    (i) Has a substantial business owning and operating one or more 
terrestrial AM or FM radio stations that are licensed as such by the 
Federal Communications Commission;
    (ii) Has obtained a compulsory license under 17 U.S.C. 112(e) and 
114 and the implementing regulations therefor to make Eligible 
Transmissions and related ephemeral recordings;

[[Page 31511]]

    (iii) Complies with all applicable provisions of Sections 112(e) 
and 114 and applicable regulations; and
    (iv) Is not a noncommercial webcaster as defined in 17 U.S.C. 
114(f)(5)(E)(i).
    Eligible Minimum Fee Webcaster means a nonsubscription transmission 
service whose payments for eligible transmissions do not exceed the 
annual minimum fee established for licensees relying upon the statutory 
licenses set forth in 17 U.S.C. 112(e) and 114; and either:
    (i) Meets the definition of a broadcaster; or
    (ii) Is directly operated by, or affiliated with and officially 
sanctioned by, a domestically accredited primary or secondary school, 
college, university or other post-secondary degree-granting educational 
institution; and
    (A) The digital audio transmission operations of which are, during 
the course of the year, staffed substantially by students enrolled in 
such institution; and
    (B) Is not a ``public broadcasting entity'' (as defined in 17 
U.S.C. 118(f)) qualified to receive funding from the Corporation for 
Public Broadcasting pursuant to the criteria set forth in 47 U.S.C. 
396; and
    (C) Is exempt from taxation under section 501 of the Internal 
Revenue Code, has applied for such exemption, or 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.
    Minimum fee broadcaster means a nonsubscription service that meets 
the definition of a broadcaster and the service's payments for eligible 
transmissions do not exceed the annual minimum fee established for 
licensees relying upon the statutory licenses set forth in 17 U.S.C. 
112 and 114.
    Performance means each instance in which any portion of a sound 
recording is publicly performed to a Listener by means of a digital 
audio transmission or retransmission (e.g., the delivery of any portion 
of a single track from a compact disc to one Listener) but excluding 
the following:
    (i) A performance of a sound recording that does not require a 
license (e.g., the sound recording is not copyrighted);
    (ii) A performance of a sound recording for which the service has 
previously obtained a license from the Copyright Owner of such sound 
recording; and
    (iii) An incidental performance that both:
    (A) 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
    (B) Other than ambient music that is background at a public event, 
does not contain an entire sound recording and does not feature a 
particular sound recording of more than thirty seconds (as in the case 
of a sound recording used as a theme song).
    Play frequency means the number of times a sound recording is 
publicly performed by a Service during the relevant period, without 
respect to the number of listeners receiving the sound recording. If a 
particular sound recording is transmitted to listeners on a particular 
channel or program only once during the reporting period, then the play 
frequency is one. If the sound recording is transmitted 10 times during 
the reporting period, then the play frequency is 10.
* * * * *

    Dated: May 10, 2016.
Suzanne M. Barnett,
Chief Copyright Royalty Judge.
    Approved by:
David S. Mao,
Acting Librarian of Congress.
[FR Doc. 2016-11746 Filed 5-18-16; 8:45 am]
 BILLING CODE 1410-72-P



                                                  31506               Federal Register / Vol. 81, No. 97 / Thursday, May 19, 2016 / Rules and Regulations

                                                  responsiveness to small business. If you                Environmental Policy Act of 1969 (42                  through 6:00 p.m. on May 22, 2016.
                                                  wish to comment on actions by                           U.S.C. 4321–4370f), and have                          Enforcement during the effective
                                                  employees of the Coast Guard, call 1–                   determined that this action is one of a               periods will allow for scheduled breaks
                                                  888–REG–FAIR (1–888–734–3247). The                      category of actions that do not                       allowing vessels to pass through the
                                                  Coast Guard will not retaliate against                  individually or cumulatively have a                   safety zone. Notice of scheduled breaks
                                                  small entities that question or complain                significant effect on the human                       will be provided as indicated under (d)
                                                  about this rule or any policy or action                 environment. This rule involves a safety              Informational broadcasts.
                                                  of the Coast Guard.                                     zone during a 2-day period that will                     (b) Regulations. (1) Under the general
                                                                                                          prohibit entry within the zone without                safety zone regulations in § 165.23 of
                                                  C. Collection of Information
                                                                                                          permission of the Captain of the Port. It             this part, entry into this zone is
                                                    This rule will not call for a new                     is categorically excluded from further                prohibited to all persons and vessels
                                                  collection of information under the                     review under paragraph 34(g) of Figure                except those vessels specifically
                                                  Paperwork Reduction Act of 1995 (44                     2–1 of the Commandant Instruction. An                 authorized by the Captain of the Port,
                                                  U.S.C. 3501–3520).                                      environmental analysis checklist                      Port Arthur or a designated
                                                  D. Federalism and Indian Tribal                         supporting this determination and a                   representative.
                                                  Governments                                             Categorical Exclusion Determination are                  (2) Persons or vessels requiring entry
                                                                                                          available in the docket where indicated               into or passage through must request
                                                     A rule has implications for federalism               under ADDRESSES. We seek any                          permission from the Captain of the Port,
                                                  under Executive Order, Federalism, if it                comments or information that may lead                 Port Arthur, or a designated
                                                  has a substantial direct effect on the                  to the discovery of a significant                     representative. They may be contacted
                                                  States, on the relationship between the                 environmental impact from this rule.                  on VHF–FM channel 13 or 16, or by
                                                  national government and the States, or                                                                        phone at by telephone at 409–719–5070.
                                                  on the distribution of power and                        G. Protest Activities
                                                                                                                                                                   (3) All persons and vessels shall
                                                  responsibilities among the various                        The Coast Guard respects the First                  comply with the lawful orders or
                                                  levels of government. We have analyzed                  Amendment rights of protesters.                       directions given to them by the Captain
                                                  this rule under that Order and have                     Protesters are asked to contact the                   of the Port, Port Arthur or the Captain
                                                  determined that it is consistent with the               person listed in the FOR FURTHER                      of the Port’s designated representative.
                                                  fundamental federalism principles and                   INFORMATION CONTACT section to                        On-scene U.S. Coast Guard patrol
                                                  preemption requirements described in                    coordinate protest activities so that your            personnel include commissioned,
                                                  Executive Order 13132.                                  message can be received without                       warrant, and petty officers of the U.S.
                                                     Also, this rule does not have tribal                 jeopardizing the safety or security of                Coast Guard.
                                                  implications under Executive Order                      people, places or vessels.                               (c) Information broadcasts. The Coast
                                                  13175, Consultation and Coordination                                                                          Guard will inform the public through
                                                  with Indian Tribal Governments,                         List of Subjects in 33 CFR Part 165
                                                                                                                                                                broadcast notices to mariners of channel
                                                  because it does not have a substantial                    Harbors, Marine safety, Navigation                  restrictions and Vessel Traffic Service
                                                  direct effect on one or more Indian                     (water), Reporting and recordkeeping                  advisories on VHF–FM channel 65A.
                                                  tribes, on the relationship between the                 requirements, Security measures, and
                                                  Federal Government and Indian tribes,                   Waterways.                                              Dated: April 15, 2016.
                                                  or on the distribution of power and                       For the reasons discussed in the                    R.S. Ogrydziak,
                                                  responsibilities between the Federal                    preamble, the Coast Guard amends 33                   Captain, U.S. Coast Guard, Captain of the
                                                  Government and Indian tribes. If you                    CFR part 165 as follows:                              Port, Port Arthur, Texas.
                                                  believe this rule has implications for                                                                        [FR Doc. 2016–11821 Filed 5–18–16; 8:45 am]
                                                  federalism or Indian tribes, please                     PART 165–REGULATED NAVIGATION                         BILLING CODE 9110–04–P
                                                  contact the person listed in the FOR                    AREAS AND LIMITED ACCESS AREAS
                                                  FURTHER INFORMATION CONTACT section
                                                  above.                                                  ■ 1. The authority citation for part 165
                                                                                                          continues to read as follows:                         LIBRARY OF CONGRESS
                                                  E. Unfunded Mandates Reform Act
                                                                                                            Authority 33 U.S.C. 1231; 50 U.S.C. 191;            Copyright Royalty Board
                                                    The Unfunded Mandates Reform Act                      33 CFR 1.05–1, 6.04–1, 6.04–6, and 160.5;
                                                  of 1995 (2 U.S.C. 1531–1538) requires                   Department of Homeland Security Delegation
                                                                                                                                                                37 CFR Part 370
                                                  Federal agencies to assess the effects of               No. 0170.1.
                                                  their discretionary regulatory actions. In              ■ 2. Add temporary § 165.T08–0321 to                  [Docket No. RM 2008–7]
                                                  particular, the Act addresses actions                   read as follows:
                                                  that may result in the expenditure by a                                                                       Notice and Recordkeeping for Use of
                                                  State, local, or tribal government, in the              § 165.T08–0321      Safety Zone; Sabine River,        Sound Recordings Under Statutory
                                                  aggregate, or by the private sector of                  Orange, Texas.                                        License
                                                  $100,000,000 (adjusted for inflation) or                   Location. The following area is a
                                                  more in any one year. Though this rule                  safety zone: Waters of the Sabine River,              AGENCY:  Copyright Royalty Board,
                                                  will not result in such expenditure, we                 shoreline to shoreline, adjacent to the               Library of Congress.
                                                  do discuss the effects of this rule                     Orange public boat ramps located in                   ACTION: Final rule.
                                                  elsewhere in this preamble.                             Orange, TX. The northern boundary is
asabaliauskas on DSK3SPTVN1PROD with RULES




                                                                                                          from the end of old Navy Pier One at                  SUMMARY:   The Copyright Royalty Judges
                                                  F. Environment                                          30°05′50″ N. 93°43′15″ W. then easterly               are amending a Copyright Royalty Board
                                                    We have analyzed this rule under                      to the river’s eastern shore. The                     rule regarding reporting requirements
                                                  Department of Homeland Security                         southern boundary is a line shoreline to              for certain Educational Stations that pay
                                                  Management Directive 023–01 and                         shoreline at latitude 30°05′33″ N.                    no more than the minimum fee for their
                                                  Commandant Instruction M16475.lD,                       (NAD83).                                              use of sound recordings under the
                                                  which guide the Coast Guard in                             (a) Effective Periods. This rule is                applicable statutory licenses.
                                                  complying with the National                             effective from 8:30 a.m. on May 21, 2016              DATES: Effective May 19, 2016.



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                                                                      Federal Register / Vol. 81, No. 97 / Thursday, May 19, 2016 / Rules and Regulations                                                31507

                                                  FOR FURTHER INFORMATION CONTACT:                            For nonsubscription transmission                   broader alternative proposal that
                                                  Kimberly Whittle at (202) 707–7658 or                    services, except those qualifying as                  Petitioners proffered that would expand
                                                  at crb@loc.gov.                                          minimum fee broadcasters, the ROU                     the census reporting exemption to
                                                  SUPPLEMENTARY INFORMATION:                               must include the actual total                         entities that are noncommercial
                                                                                                           performances of each sound recording                  webcasters but that would not be
                                                  Introduction                                             during the reporting period. 37 CFR                   considered educational entities under
                                                    On May 2, 2014, the Copyright                          370.4(d)(2)(vi). Minimum fee                          the Petitioners’ proposal.
                                                  Royalty Judges (Judges) published a                      broadcasters, however, may report, as an                 In response to the Proposal, the
                                                  document in the Federal Register                         alternative to actual total performances,             Judges received approximately twenty-
                                                  seeking comments on two unrelated                        the aggregate tuning hours, the channel               four comments.7 No commenter
                                                  rulemaking proposals (Proposal).1 For                    or program name, and play frequency.                  opposed the Petitioners’ proposal for
                                                  the proposal that is the subject of this                 37 CFR 370.4(d)(2)(vii).                              educational webcasters. SoundExchange
                                                  document the Judges requested                               Whereas most services must prepare                 did, however, oppose Petitioners’
                                                  comments on a proposed rule                              an ROU for each calendar month of the                 broader alternative proposal to exclude
                                                  amendment to relax certain reporting                     year, a minimum fee broadcaster need                  from the census reporting requirements
                                                  requirements for educational stations                    only prepare an ROU for a two-week                    noneducational noncommercial
                                                  that pay no more than the minimum fee                    period for each calendar quarter of the               webcasters. As discussed below, the
                                                  for the use of sound recordings under                    year. 37 CFR 370.4(d)(3).4 However, the               Judges are adopting the Petitioners’
                                                  the statutory licenses in Sections 112(e)                regulations exempt minimum-fee                        proposed exemption for non-FCC-
                                                  and 114 of the Copyright Act. The                        broadcasters from the census reporting                licensed educational broadcasters, but
                                                  Judges received over twenty comments                     requirement (i.e., the requirement to                 are not adopting the broader
                                                  on the proposal, most of which                           report actual total performances) only if             noncommercial webcaster exemption.
                                                  supported it. For the reasons discussed                  their stations are licensed by the Federal            Petitioners’ Rule Proposal
                                                  below, the Judges adopt the proposed                     Communications Commission (FCC)
                                                  amendment.                                               because the FCC licensing is part of the                Petitioners propose that the definition
                                                                                                           definition of ‘‘broadcaster.’’ Petitioners            of a ‘‘minimum fee broadcaster’’ in 37
                                                  Background                                                                                                     CFR 370.4(b)(3) be amended to include
                                                                                                           asked that the Judges ‘‘clarify’’ that the
                                                     On October 28, 2009, College                          regulations also exempt minimum-fee                   a nonsubscription service that: (1) Is
                                                  Broadcasters, Inc. (CBI), American                       broadcasters that are not FCC-licensed                directly operated by, or affiliated with
                                                  Council on Education (ACE), and                          broadcasters if they are ‘‘educational’’ in           and officially sanctioned by a
                                                  Intercollegiate Broadcasting System, Inc.                nature. Joint Petition at 2–4.                        domestically accredited primary or
                                                  (IBS) (collectively, ‘‘Petitioners’’) filed a               After reviewing the Joint Petition, the            secondary school, college, university, or
                                                  motion with the Judges seeking                           Judges concluded that Petitioners were                other post-secondary degree-granting
                                                  clarification of an issue purportedly                    not seeking a clarification of the final              educational institution; and (2) the
                                                  raised by final regulations that the                     regulations but rather were seeking a                 digital audio transmission operations of
                                                  Judges adopted regarding reporting                       substantive change. In other words, the               which are, during the course of the year,
                                                  requirements for entities that digitally                 ‘‘clarification’’ that the Petitioners                staffed substantially by students
                                                  transmit sound recordings pursuant to                    sought actually amounted to a request to              enrolled in such institution; and (3) is
                                                  section 114(d)(2) of the Copyright Act or                amend the census reporting requirement                not a ‘‘public broadcasting entity’’ (as
                                                  that make ephemeral phonorecords of                                                                            defined in 17 U.S.C. 118(g)) qualified to
                                                                                                           regulations to exempt non-FCC-licensed
                                                  sound recordings pursuant to section                                                                           receive funding from the Corporation for
                                                                                                           minimum-fee educational webcasters.
                                                  112(e) of that Act.2 Joint Petition for                                                                        Public Broadcasting (CPB) pursuant to
                                                                                                           The Judges thus determined that
                                                  Clarification, Notice and Recordkeeping                                                                        the criteria set forth in 47 U.S.C. 396;
                                                                                                           Petitioners’ petition for clarification
                                                  for Use of Sound Recordings Under the                                                                          and (4) is exempt from taxation under
                                                                                                           should be treated as a petition for
                                                  Statutory License, Docket No. RM 2008–                                                                         section 501 of the Internal Revenue
                                                                                                           rulemaking and made the Joint Petition
                                                  7 (Oct. 28, 2009) (Joint Petition). The                                                                        Code, has applied for such exemption,
                                                                                                           subject to notice and public comment.5
                                                  regulations at issue are found in 37 CFR                    On May 2, 2014, the Judges published               or is operated by a State or possession
                                                  370.4, and they prescribe rules for the                  the Proposal in the Federal Register                  or any governmental entity or
                                                  maintenance and delivery of reports of                   seeking comments on the Petitioners’                  subordinate thereof, or by the United
                                                  use (ROUs).3                                             proposal.6 The Judges requested                       States or District of Columbia, for
                                                                                                           comments on not only the Petitioners’                 exclusively public purposes. Joint
                                                    1 See 79 FR 25038. The Judges continue to
                                                                                                           principal proposal, which would                       Petition at 2 n.1. While the proposed
                                                  analyze the second rulemaking proposal, submitted                                                              language upon which the Judges
                                                  by SoundExchange, Inc., and the comments                 exempt non-FCC-licensed minimum fee
                                                  responsive thereto.                                      educational webcasters from the census                requested comments did not incorporate
                                                    2 The release adopting the regulations appeared in
                                                                                                           reporting requirement, but also on a                  CBI’s singular reference to ‘‘Educational
                                                  74 FR 52418 (Oct. 13, 2009). The applicable rules                                                              Stations,’’ the proposal retained the
                                                  are codified in 37 CFR part 370.                                                                               substance of the Petitioners’ proposal.
                                                    3 An ROU is a report required to be provided by        programming consisting of performances of sound
                                                                                                           recordings. See 37 CFR 370.1(e). Such services are      In the Proposal soliciting comment on
                                                  an entity that transmits sound recordings pursuant
                                                  to the statutory licenses in section 114(d)(2) or that   often referred to as webcasters.                      the proposal, in addition to seeking
                                                                                                              4 The weeks need not be consecutive but both
                                                  makes ephemeral recordings of sound recordings
                                                  pursuant to section 112(e) of the Copyright Act. 37      must be completely within the calendar quarter. 37      7 The Judges received comments that addressed in
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                                                  CFR 370.1(i). ROUs must be delivered to the              CFR 370.4(d)(3)(ii).                                  some fashion the Petitioners’ proposal from the
                                                                                                              5 79 FR at 25039.
                                                  Collective designated by the Judges (currently                                                                 following: All-Campus Radio Network (ACRN),
                                                  SoundExchange, Inc.). See, e.g., 37 CFR 370.4(c).           6 79 FR 25038. In the interest of administrative   Andrea Baker, CBI, IBS, KBCU–FM, KBHU–FM,
                                                  ROUs must include the name of the entity making          efficiency, the Judges also sought comments in the    KNHC, KSSU, KUIW, KWSC–FM, KXUL, Lasell
                                                  the transmissions, a category transmission code, the     same notice on an unrelated petition for rulemaking   College Radio, the National Association of
                                                  featured artist of the sound recording, and the          that SoundExchange submitted. SoundExchange’s         Broadcasters and Radio Music License Committee
                                                  sound recording title, among other information. The      proposal, which requested a broad range of changes    (NAB/RMLC), NPR, SCAD Atlanta Radio,
                                                  current proceeding is focused only on the reporting      to CRB rules, is still pending. The current release   SoundExchange, WBSU, WGSU–FM, WJCU,
                                                  requirements of ‘‘nonsubscription transmission           addresses only the census reporting requirement       WKNC–FM, WRFL–FM, WSDP–FM, WSLX, and
                                                  services,’’ which are entities that provide audio        proposal submitted by the Petitioners.                WSOU–FM (Seton Hall University).



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                                                  31508               Federal Register / Vol. 81, No. 97 / Thursday, May 19, 2016 / Rules and Regulations

                                                  comments on the proposal generally, the                  As such, ACRN has a reporting waiver                  Neither CBI nor any other commenter
                                                  Judges also sought comments on certain                   under 37 CFR 380.23(c) and (g)(1),                    provided data on any non-licensed
                                                  specific issues. In particular, the Judges               which authorizes payment to the                       entity that ceased operation due to the
                                                  sought comment on how unlicensed                         Collective of a $100 proxy fee in lieu of             ROU reporting requirement. That being
                                                  minimum fee ‘‘Educational Stations,’’ as                 maintaining and delivering ROUs.                      said, the great majority of commenters
                                                  that term would be defined in                            ACRN would like to continue to report                 that are subject to the ROU reporting
                                                  Petitioners’ proposal, have been                         as a NEW indefinitely.11 In the                       requirement appear to be paying the
                                                  reporting under the current regulations.                 alternative, ACRN supports the proposal               $100 proxy fee in lieu of reporting (an
                                                  The Judges also asked whether any such                   to change 37 CFR 370.4(b)(2) so that                  alternative that is now available through
                                                  entities have ceased operations, as                      ACRN would qualify as a minimum fee                   2020). See Determination (final),
                                                  predicted by Petitioners and if so, how                  broadcaster.12 It views this option as                Determination of Royalty Rates and
                                                  many. If none ceased operations, the                     less desirable, however.                              Terms for Ephemeral Recording and
                                                  Judges asked whether the need still                         KBCU–FM, KBHU, KNHC, KSSU,                         Webcasting Digital Performance of
                                                  exists for Petitioners’ proposed                         KWSC–FM, and KXUL all generally                       Sound Recordings (Web–IV), Docket No.
                                                  amendment. The Judges also asked                         concurred with the position of ACRN.                  14–CRB–0001–WR (2016–2020) (Mar. 2,
                                                  whether Petitioners have, in the first                   KUIW and Lasell College Radio, which                  2016).
                                                  instance, made their case persuasively                   also support the proposal, state that they               Not surprisingly, IBS also supports its
                                                  that the proposed amendment is                           would probably have to cease                          Joint Petition. IBS adds that it agrees
                                                  warranted. If the change is warranted,                   broadcasting if the reporting provision               with SoundExchange’s position that
                                                  the Judges asked whether they should                     for NEWs were to expire and they could                NEWs with fewer than 55,000 aggregate
                                                  adopt (1) Petitioners’ preferred                         not qualify as minimum fee                            tuning hours (ATH) per month should
                                                  definition, which applies only to                        broadcasters.13                                       be permitted to pay an annual $100
                                                  Educational Stations, or (2) the broader,                   CBI supports continuing the reporting              proxy fee in lieu of census reporting.
                                                  alternate definition.8                                   requirements in § 380.23, which were                  IBS also contends that NEWs with fewer
                                                                                                           negotiated as part of a settlement with               than 15,914 ATH monthly should pay a
                                                  Comment Summary                                          SoundExchange, because, according to                  $50 proxy fee and NEWS with fewer
                                                     Of the 24 comments the Judges                         CBI, those requirements are simpler to                than 6,365 ATH monthly should pay a
                                                  reviewed, none opposed the specific                      follow and impose fewer obstacles than                $20 proxy fee. IBS believes that each of
                                                  language included in the Proposal,                       the rules with which non-NEWS must                    these categories should be exempt from
                                                  although, as discussed below,                            comply. CBI Comment at 5. CBI states                  the $500 annual minimum fee. Reply
                                                  SoundExchange opposed adopting a                         that it conducted a survey and                        Comments of IBS at 1. Because IBS
                                                  more expansive exemption from the                        determined that fewer than 13% of non-                made its suggestions in Reply
                                                  census reporting requirements for                        FCC-licensed stations are currently able              Comments, the Judges were unable to
                                                  noncommercial webcasters that are not                    to report actual total performance (ATP)              include them in the Proposal, and
                                                  affiliated with an educational                           data. According to CBI, fewer than 18%                therefore have no basis upon which to
                                                  organization.                                            of those stations reported that they                  adopt them.
                                                     All-Campus Radio Network’s (ACRN)                     would be able to find a means to comply                  The National Association of
                                                  comment is illustrative of those that                    with full census ATP reporting should                 Broadcasters (NAB) and the Radio
                                                  supported the proposal. Because it has                   the requirements in § 380.23 be allowed               Music License Committee (RMLC)
                                                  no FCC license, ACRN cannot qualify as                   to expire and the proposed regulations                advocate an exemption from all
                                                  a ‘‘minimum fee broadcaster’’ under 37                   in the Joint Petition not be adopted.14               reporting requirements for broadcasters
                                                  CFR 370.4(b)(3).9 ACRN is, however, a                                                                          that currently pay the minimum fee of
                                                  Noncommercial Educational Webcaster                      additional requirement that the noncommercial         $500. They contend that many of these
                                                                                                           webcaster take affirmative steps not to make total    entities are already exempt from
                                                  (NEW) as defined in 37 CFR 380.21.10                     transmissions in excess of 159,140 Aggregate
                                                                                                           Tuning Hours on any individual channel or station
                                                                                                                                                                 reporting requirements as long as they
                                                    8 79 FR at 25040.                                      in any month, if in any previous calendar year it     pay the $100 annual proxy fee (i.e.,
                                                    9 Section  370.4(b)(3) states that a minimum fee       has made total transmissions in excess of 159,140     small broadcasters that stream no more
                                                  broadcaster is a nonsubscription service that meets      Aggregate Tuning Hours on any individual channel      than 27,777 aggregate tuning hours
                                                  the definition of a broadcaster pursuant to              or station in any month. 37 CFR 380.21 (2015).
                                                                                                              11 As part of the supporting regulations for the
                                                                                                                                                                 (ATH) and noncommercial educational
                                                  § 380.2(b) and the service’s payments for eligible
                                                  transmissions do not exceed the annual minimum           webcasting licenses, the reporting waiver expires     webcasters that stream less than 55,000
                                                  fee established for licensees relying upon the           every five years, unless it is renewed.               annual ATH). Moreover, according to
                                                  statutory licenses set forth in 17 U.S.C. 112 and 114.      12 ACRN states that the proposed changes are
                                                                                                                                                                 NAB, most of these entities play
                                                  At the time of the motion for clarification 37 CFR       ‘‘warranted only if the alternative to report under   ‘‘mainstream’’ music that larger
                                                  380.2 defined a broadcaster as a type of Licensee        380.23 were to not sunset [sic].’’ ACRN Comment
                                                  that owns and operates a terrestrial AM or FM radio      at 3, emphasis in original. Read in the context of    broadcasters play so the allocations of
                                                  station that is licensed by the Federal                  the ACRN letter as a whole, it appears that ACRN      royalties paid by these entities could be
                                                  Communications Commission.                               meant that the proposed changes would be              made based on playlist data collected
                                                     10 Under § 380.21, a NEW is a noncommercial           warranted only if the alternative to report under     from larger broadcasters. NAB/RMLC
                                                  webcaster (as defined in 17 U.S.C. 114(f)(5)(E)(i))      380.23 were to sunset.
                                                                                                              13 KUIW Comment at 1–2. Lasell Comment at 1–
                                                                                                                                                                 Comment at 51–52.
                                                  that has obtained a compulsory license, complies
                                                  with all applicable provisions of the license, is        2. Each commenter recommends that the reporting          According to National Public Radio,
                                                  operated by or affiliated with and sanctioned by a       requirements applicable to NEWs be made               Inc. (NPR), the current recordkeeping
                                                  primary or secondary school, college or university       permanent. Such a recommendation is beyond the        and reporting system is the result of a
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                                                  or other degree-granting educational institution,        scope of the proposal upon which the Judges sought    settlement agreement between
                                                  and is not a public broadcasting entity qualified to     comment in the current proceeding. As such, the
                                                  receive funding from the CPB. 17 CFR 380.21. As          Judges do not have adequate support in the record     SoundExchange and the CPB. NPR
                                                  part of the supporting regulations for the Section       to support adopting such a proposal.                  estimates that about 402 stations operate
                                                  112 and 114 webcasting licenses, § 380.21, by its           14 Andrea Baker supports applying the

                                                  terms, expires at the end of each licensing period       Petitioner’s preferred definition of ‘‘minimum fee    choose to report sampled data. Through 2020,
                                                  (currently December 31, 2020). See 37 CFR                broadcaster’’ because, according to Ms. Baker, the    however, to the extent they qualify to pay the proxy
                                                  380.20(a). The most recent iteration of § 380.21,        proposal is more likely to move users of sound        fee in lieu of reporting, the users that would benefit
                                                  which was adopted after comments in the current          recordings away from reporting of sampled data.       from the proposal are not reporting any sound
                                                  rulemaking proceeding were filed, includes an            The proposal would in fact allow more users to        recording play data.



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                                                                      Federal Register / Vol. 81, No. 97 / Thursday, May 19, 2016 / Rules and Regulations                                              31509

                                                  under the agreement. NPR Comment at                     to SoundExchange, for 2013, 97% of                    Section 380.23(g), but not the late fee for
                                                  7. NPR notes that it aggregates the                     NEWs elected this reporting waiver and                ROUs provided in Section 380.23(e) or
                                                  reports of each of these stations and                   were not required to provide any ROUs.                the server log retention provisions of
                                                  reports directly to SoundExchange on                    As a result of the Web–IV                             Section 380.23(i).’’ SoundExchange
                                                  behalf of all the stations. NPR states that             Determination, § 380.23(g)(1) and (2)                 Reply Comments at 7. SoundExchange
                                                  it currently operates under the                         remain in effect through 2020, at which               does not believe that NEWs should be
                                                  settlement agreement with                               point the Judges will determine rates                 given their requested ‘‘special
                                                  SoundExchange, and, as a result, it is                  and terms for the next rate period                    exemption’’ in these regulations
                                                  not subject to certain of the reporting                 (2021–2025) (Web-V).                                  because, according to SoundExchange,
                                                  and recordkeeping requirements in the                      Nevertheless, SoundExchange does                   ‘‘their concerns are addressed directly
                                                  regulations. NPR believes, however, that                not oppose the Petitioners’ proposed                  in the terms to which CBI agreed.’’
                                                  the regulations should be flexible to                   definition of ‘‘Minimum Fee                           SoundExchange Reply Comments at 8.
                                                  allow parties that are not parties to                   Broadcaster’’ for § 370.4(b)(2).                         SoundExchange does not believe it is
                                                  agreements to be able to use the license                SoundExchange highlights certain                      fair for NEWs to pick and choose their
                                                  in a manner that is not overly                          technical errors in the proposal (i.e.,               favorite provisions from § 380.23 that
                                                  burdensome. NPR Comment at 1–3.                         SoundExchange opines that there                       were negotiated by CBI. SoundExchange
                                                     SCAD Atlanta Radio 15 is a NEW                       should be a comma following the phrase                notes that the agreement to settle the
                                                  under 37 CFR 380.21. It is a web-only,                  ‘‘officially sanctioned by’’ in                       Web IV proceeding as to NEWs on a
                                                  student-run station and does not have                   § 370.4(b)(2)(ii) and the reference in                basis that would generally extend the
                                                  an FCC license so it cannot qualify as a                proposed § 370.4(b)(2)(iv) should be                  relevant provisions of § 380.23 moots
                                                  minimum fee broadcaster under 37 CFR                    Section 118(f) (rather than 118(g)).16                the issues raised in the Joint Petition
                                                  370.4(b)(3). As a NEW, SCAD Atlanta                     SoundExchange also recommends                         through 2020. Anticipating the adoption
                                                  pays the proxy fee in lieu of reporting,                changing the proposed term from                       of such agreement, which the Judges
                                                  as permitted under 37 CFR 380.23. It                    ‘‘Minimum Fee Broadcaster’’ to                        adopted during the Web IV proceeding,
                                                  would like to continue to report that                   ‘‘Eligible Minimum Fee Webcaster’’ (or                SoundExchange found no reason for the
                                                  way and therefore requests that the                     the like) to more accurately reflect the              Judges to adopt the proposals in the
                                                  sunset provisions in the regulations be                 fact that certain of the services covered             NPRM based on the Joint Petition.
                                                  removed. In the alternative, SCAD                       are not broadcasters. SoundExchange                   SoundExchange speculates that under
                                                  Atlanta supports the proposed change to                 Comment at n.2.17 According to                        such a scenario, the Judges could revisit
                                                  37 CFR 370.4(b)(2), which would                         SoundExchange, adoption of this                       the question of reporting by NEWs
                                                  qualify SCAD Atlanta as a minimum fee                   proposal ‘‘seems like a reasonable                    based on a fresh record in five years.
                                                  broadcaster if the NEW designation                      deviation from the important principle                Otherwise, SoundExchange
                                                  sunsets. SCAD Atlanta states that if it                 of census reporting.’’ SoundExchange                  recommends that the Judges either
                                                  lost the ability to report as a NEW and                 Comment at 4.                                         adopt the equivalent of all the relevant
                                                  was forced to report monthly census                        SoundExchange does not support the                 provisions of § 380.23 (i.e., the proposed
                                                  data, the station would face                            broader alternative proposal to include               late fee for ROUs and proposed
                                                  considerable hardship and expense.                      internet-only noncommercial                           recordkeeping provisions) or adopt only
                                                  SCAD Atlanta Comment at 2.                              webcasters that are not educational                   the changes to the definition of
                                                     In its initial comment,                              webcasters (which are not currently                   Minimum Fee Broadcaster proposed in
                                                  SoundExchange stated that the Joint                     covered by § 380.23(g)(2)). For such                  the NPRM. SoundExchange Reply
                                                  Petition is moot through 2015 (and now                  webcasters, if they are staffed by                    Comments at 9.
                                                  presumably through 2020). According to                  professionals or use modern content                   SoundExchange Settlement With CBI
                                                  SoundExchange, pursuant to 37 CFR                       management technology capable of
                                                  380.23(g)(2), a NEW with usage at a                                                                             In the context of the Web IV
                                                                                                          readily generated ROUs on a census
                                                  level covered by the minimum fee is                                                                           proceeding, the Judges were presented
                                                                                                          basis, they should not be exempted from
                                                  currently permitted to provide ROUs on                                                                        with two settlements that bear on the
                                                                                                          census reporting just because they are
                                                  a sample basis as contemplated by                                                                             reporting requirements at issue in this
                                                                                                          low-intensity noncommercial users.
                                                  proposed § 370.4(b)(2) and is even                                                                            rulemaking.18 In one settlement,
                                                                                                          SoundExchange does not believe that
                                                  excused from reporting its ATH.                                                                               SoundExchange and CBI requested that
                                                                                                          the Petitioners have made the case for                the Judges adopt their agreement as a
                                                  SoundExchange Comment at 3.                             a broader exemption. SoundExchange
                                                  SoundExchange notes that such services                                                                        partial settlement of rates and terms
                                                                                                          Comment at 4.                                         under Section 112(e) and 114 of the
                                                  report play frequency in lieu of                           While SoundExchange is not opposed
                                                  reporting ATH or actual total                                                                                 Copyright Act (Act) for eligible
                                                                                                          to the narrow proposed definition of
                                                  performances.                                                                                                 nonsubscription transmissions by NEWs
                                                                                                          Minimum Fee Broadcaster in § 370.4(b)
                                                     SoundExchange states that the vast                                                                         over the internet, and related ephemeral
                                                                                                          (with the technical corrections
                                                  majority of NEWs are not even required                                                                        recordings. In the Federal Register
                                                                                                          discussed above), SoundExchange notes
                                                  to provide sample ROUs.                                                                                       document adopting the
                                                                                                          that ‘‘NEWs would like to include in the
                                                  SoundExchange states that, pursuant to                                                                        SoundExchange/CBI settlement, the
                                                                                                          notice and recordkeeping regulations
                                                  37 CFR 380.23(g)(1), NEWs with the                                                                            Judges noted:
                                                                                                          the outright reporting waiver and play
                                                  lowest intensity of usage may elect to                  frequency reporting provisions of                        Commercial webcasters are required to
                                                  pay a proxy fee of $100 and forgo                                                                             make detailed, census reports of all sound
asabaliauskas on DSK3SPTVN1PROD with RULES




                                                  providing ROUs altogether. According                      16 The Judges adopted these technical corrections   recordings they transmit. NEWs with limited
                                                                                                          in the final regulation.                              listenership may pay the Collective a proxy
                                                     15 SCAD Atlanta states that the station is             17 The Judges believe that the term ‘‘eligible      fee to avoid the burden of census
                                                  produced by students at the Atlanta location of the     minimum fee webcaster’’ more accurately reflects
                                                  Savannah College of Art and Design. The Judges          the fact that some of the entities covered by the       18 See 80 FR 58201 (Sept. 28, 2015) (adopting

                                                  also received a substantially identical comment         definition would not satisfy the applicable           proposed settlement between SoundExchange and
                                                  from ‘‘SCAD Radio,’’ which states that the station      definition of broadcaster and therefore accept        CBI) and 80 FR 59588 (Oct. 2, 2015) (adopting
                                                  is produced by students at the Savannah location        SoundExchange’s suggestion in the adopted             proposed settlement between SoundExchange and
                                                  of the Savannah College of Art and Design.              regulation.                                           NPR and the CPB).



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                                                  31510                 Federal Register / Vol. 81, No. 97 / Thursday, May 19, 2016 / Rules and Regulations

                                                  reporting. . . . A NEW electing the reporting             burdens. Neither the students, the                    services, and business establishment
                                                  waiver in 37 CFR 380.23(g)(1) must pay a                  educational entity, nor the artists would             services.
                                                  $100 annual proxy fee to the Collective.                  benefit from elimination of the campus
                                                  Proposed Rule 37 CFR 380.22(a).19                                                                                  (b) Definitions. For purposes of this
                                                                                                            stations. The Judges agree with                       section, the following definitions apply:
                                                    In adopting the SoundExchange/CBI                       SoundExchange, however, that                             Aggregate Tuning Hours means the
                                                  Settlement, the Judges noted the                          noncommercial noneducational
                                                  relevance of the Settlement to the                                                                              total hours of programming that a
                                                                                                            webcasters have not made the case that                nonsubscription transmission service,
                                                  current rulemaking proceeding:                            they face the same challenges.                        preexisting satellite digital audio radio
                                                     Many if not most of the comments                       Therefore, the Judges decline to extend               service, new subscription service or
                                                  responsive to the proposed recordkeeping                  the reporting requirement exemption to                business establishment service has
                                                  provisions were filed by NEWs that                        noncommercial webcasters that do not
                                                  apparently would qualify under the proposed                                                                     transmitted during the reporting period
                                                                                                            have the requisite affiliation with an                identified in paragraph (d)(3) of this
                                                  Settlement to pay the proxy fee in lieu of                educational institution.
                                                  census reporting in the upcoming license                                                                        section to all listeners within the United
                                                  period. Extension until December 31, 2020,
                                                                                                               SoundExchange contends that in light               States over the relevant channels or
                                                  of the proxy fee in lieu of census reporting              of the agreements SoundExchange, CPB,                 stations, and from any archived
                                                  does not, however, address the precise issue              CBI, and NPR reached during the Web                   programs, that provide audio
                                                  raised in that rulemaking proceeding. The                 IV proceeding, which the Judges                       programming consisting, in whole or in
                                                  Judges shall address this issue along with a              adopted, the current rulemaking is                    part, of eligible nonsubscription service,
                                                  number of other issues relating to Part 370 in            moot, at least through 2020. While the
                                                  a separate publication focused directly on the                                                                  preexisting satellite digital audio radio
                                                                                                            Judges agree that many webcasters that                service, new subscription service or
                                                  May 2, 2014, Notice of Proposed
                                                                                                            are eligible for either of the agreements             business establishment service
                                                  Rulemaking.20
                                                                                                            will choose to pay the proxy fee in lieu              transmissions, less the actual running
                                                     In other words, although the                           of reporting, each such agreement has
                                                  SoundExchange/CBI settlement                                                                                    time of any sound recordings for which
                                                                                                            conditions and limitations that would                 the service has obtained direct licenses
                                                  provided a means for qualifying NEWs                      not apply with respect to the proposal
                                                  to pay a $100 proxy fee in lieu of census                                                                       apart from 17 U.S.C. 114(d)(2) or which
                                                                                                            the Judges adopt today. Moreover, by                  do not require a license under United
                                                  reporting through December 31, 2020, it                   adopting the proposal in the Petition as
                                                  does not, as the current proposal would,                                                                        States copyright law. For example, if a
                                                                                                            a permanent rule, the Judges provide                  nonsubscription transmission service
                                                  provide a permanent means for entities                    certainty that, even if the current
                                                  that meet the proposed definition of                                                                            transmitted one hour of programming to
                                                                                                            agreements are not extended in                        10 simultaneous listeners, the
                                                  noncommercial educational webcasters                      subsequent rate periods, eligible
                                                  to pay the proxy fee in lieu of census                                                                          nonsubscription transmission service’s
                                                                                                            noncommercial educational webcasters                  Aggregate Tuning Hours would equal
                                                  reporting. In light of the overwhelming                   will be able to avail themselves of the
                                                  support in favor of such a reporting                                                                            10. If 3 minutes of that hour consisted
                                                                                                            reduced reporting requirements in                     of transmission of a directly licensed
                                                  waiver and the lack of opposition, the                    § 370.4, regardless of whether they are
                                                  Judges find that adopting the proposed                                                                          recording, the nonsubscription
                                                                                                            licensed with the FCC. Such certainty is              transmission service’s Aggregate Tuning
                                                  alternative for a permanent exemption                     sufficient justification for adopting the
                                                  from census reporting requirements is                                                                           Hours would equal 9 hours and 30
                                                                                                            proposal.                                             minutes. If one listener listened to the
                                                  beneficial and consistent with the
                                                  Copyright Act.                                            Final Regulations                                     transmission of a nonsubscription
                                                     Given their adoption of the proposed                     In consideration of the foregoing, the              transmission service for 10 hours (and
                                                  exemption, the Judges decline to adopt                    Copyright Royalty Judges amend 37 CFR                 none of the recordings transmitted
                                                  a broader alternative proposed by                         part 370 as follows:                                  during that time was directly licensed),
                                                  Petitioners. Notwithstanding the unique                                                                         the nonsubscription transmission
                                                  stature of NEWs as noncommercial                          PART 370—NOTICE AND                                   service’s Aggregate Tuning Hours would
                                                  entities with an educational mission,                     RECORDKEEPING REQUIREMENTS                            equal 10.
                                                  the Judges do not believe extending the                   FOR STATUTORY LICENSES                                   AM/FM Webcast means a
                                                  exemption to other noncommercial                                                                                transmission made by an entity that
                                                  webcasters would be consistent with the                   ■ 1. The authority citation for part 370              transmits an AM/FM broadcast signal
                                                  policy intended to ease reporting                         continues to read as follows:                         over a digital communications network
                                                  obligations on NEWs. As discussed by                        Authority: 17 U.S.C. 112(e)(4),                     such as the Internet, regardless of
                                                  some of the commenters, NEWs are                          114(f)(4)(A).                                         whether the transmission is made by the
                                                  often student-operated stations. The                                                                            broadcaster that originates the AM/FM
                                                                                                            ■ 2. Revise § 370.4(a) and (b) to read as
                                                  students generally perform station                                                                              signal or by a third party, provided that
                                                                                                            follows:
                                                  operations to supplement their                                                                                  such transmission meets the applicable
                                                  academic pursuits during a given                          § 370.4 Reports of use of sound                       requirements of the statutory license set
                                                  academic term. As a rule, with semester                   recordings under statutory license for                forth in 17 U.S.C. 114(d)(2).
                                                  and summer breaks, the stations lack                      nonsubscription transmission services,
                                                                                                                                                                     Broadcaster means an entity that:
                                                  operational continuity.                                   preexisting satellite digital audio radio
                                                     Without a paid administrative staff                    services, new subscription services and                  (i) Has a substantial business owning
                                                  and adequate financial and                                business establishment services.                      and operating one or more terrestrial
asabaliauskas on DSK3SPTVN1PROD with RULES




                                                  technological support, census reporting                      (a) General. This section prescribes               AM or FM radio stations that are
                                                  would present a significant challenge                     rules for the maintenance and delivery                licensed as such by the Federal
                                                  for those stations that could cause the                   of Reports of Use of sound recordings                 Communications Commission;
                                                  educational institution to discontinue                    under section 112(e) or section 114 of                   (ii) Has obtained a compulsory license
                                                  the stations to avoid the administrative                  title 17 of the United States Code, or                under 17 U.S.C. 112(e) and 114 and the
                                                                                                            both, by nonsubscription transmission                 implementing regulations therefor to
                                                    19 80   FR at 58201.                                    services, preexisting satellite digital               make Eligible Transmissions and related
                                                    20 80   FR 58201, 58205 (Sept. 28, 2015).               audio radio services, new subscription                ephemeral recordings;


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                                                                      Federal Register / Vol. 81, No. 97 / Thursday, May 19, 2016 / Rules and Regulations                                          31511

                                                     (iii) Complies with all applicable                   not limited to, brief musical transitions             area of Juneau, and made minor
                                                  provisions of Sections 112(e) and 114                   in and out of commercials or program                  clarifications to Alaska air quality rules.
                                                  and applicable regulations; and                         segments, brief performances during                   We note that the May 12, 2015
                                                     (iv) Is not a noncommercial webcaster                news, talk and sports programming,                    submission also included transportation
                                                  as defined in 17 U.S.C. 114(f)(5)(E)(i).                brief background performances during                  conformity and infrastructure
                                                     Eligible Minimum Fee Webcaster                       disk jockey announcements, brief                      requirements. These requirements are
                                                  means a nonsubscription transmission                    performances during commercials of                    not being addressed in this action. We
                                                  service whose payments for eligible                     sixty seconds or less in duration, or                 approved the transportation conformity
                                                  transmissions do not exceed the annual                  brief performances during sporting or                 revisions in a previous action on
                                                  minimum fee established for licensees                   other public events; and                              September 8, 2015, and we intend to
                                                  relying upon the statutory licenses set                    (B) Other than ambient music that is               address the infrastructure requirements
                                                  forth in 17 U.S.C. 112(e) and 114; and                  background at a public event, does not                in a separate, future action.
                                                  either:                                                 contain an entire sound recording and                 DATES: This final rule is effective on
                                                     (i) Meets the definition of a                        does not feature a particular sound                   June 20, 2016.
                                                  broadcaster; or                                         recording of more than thirty seconds
                                                                                                                                                                ADDRESSES: The EPA has established a
                                                     (ii) Is directly operated by, or                     (as in the case of a sound recording used
                                                  affiliated with and officially sanctioned                                                                     docket for this action under Docket
                                                                                                          as a theme song).
                                                  by, a domestically accredited primary or                                                                      Identification No. EPA–R10–OAR–
                                                                                                             Play frequency means the number of
                                                  secondary school, college, university or                                                                      2015–0353. All documents in the docket
                                                                                                          times a sound recording is publicly
                                                  other post-secondary degree-granting                                                                          are listed on the http://
                                                                                                          performed by a Service during the
                                                  educational institution; and                                                                                  www.regulations.gov Web site. Although
                                                                                                          relevant period, without respect to the
                                                     (A) The digital audio transmission                                                                         listed in the index, some information
                                                                                                          number of listeners receiving the sound
                                                  operations of which are, during the                                                                           may not be publicly available, i.e.,
                                                                                                          recording. If a particular sound
                                                  course of the year, staffed substantially                                                                     Confidential Business Information or
                                                                                                          recording is transmitted to listeners on
                                                  by students enrolled in such institution;                                                                     other information the disclosure of
                                                                                                          a particular channel or program only
                                                  and                                                                                                           which is restricted by statute. Certain
                                                                                                          once during the reporting period, then
                                                     (B) Is not a ‘‘public broadcasting                                                                         other material, such as copyrighted
                                                                                                          the play frequency is one. If the sound
                                                  entity’’ (as defined in 17 U.S.C. 118(f))                                                                     material, is not placed on the Internet
                                                                                                          recording is transmitted 10 times during
                                                  qualified to receive funding from the                                                                         and will be publicly available only in
                                                                                                          the reporting period, then the play
                                                  Corporation for Public Broadcasting                                                                           hard copy form. Publicly available
                                                                                                          frequency is 10.
                                                  pursuant to the criteria set forth in 47                                                                      docket materials are available either
                                                                                                          *      *    *     *     *                             electronically through http://
                                                  U.S.C. 396; and
                                                     (C) Is exempt from taxation under                      Dated: May 10, 2016.                                www.regulations.gov or in hard copy at
                                                  section 501 of the Internal Revenue                     Suzanne M. Barnett,                                   EPA Region 10, Office of Air, Waste,
                                                  Code, has applied for such exemption,                   Chief Copyright Royalty Judge.                        and Toxics, AWT–150, 1200 Sixth
                                                  or is operated by a State or possession                   Approved by:                                        Avenue, Seattle, Washington 98101. The
                                                  or any governmental entity or                           David S. Mao,                                         EPA requests that you contact the
                                                  subordinate thereof, or by the United                   Acting Librarian of Congress.                         person listed in the FOR FURTHER
                                                  States or District of Columbia, for                                                                           INFORMATION CONTACT section to
                                                                                                          [FR Doc. 2016–11746 Filed 5–18–16; 8:45 am]
                                                  exclusively public purposes.                                                                                  schedule your inspection. The Regional
                                                                                                          BILLING CODE 1410–72–P
                                                     Minimum fee broadcaster means a                                                                            Office’s official hours of business are
                                                  nonsubscription service that meets the                                                                        Monday through Friday, 8:30 a.m. to
                                                  definition of a broadcaster and the                                                                           4:30 p.m., excluding Federal holidays.
                                                                                                          ENVIRONMENTAL PROTECTION
                                                  service’s payments for eligible                                                                               FOR FURTHER INFORMATION CONTACT:
                                                                                                          AGENCY
                                                  transmissions do not exceed the annual                                                                        Kristin Hall at (206) 553–6357,
                                                  minimum fee established for licensees                   40 CFR Part 52                                        hall.kristin@epa.gov, or by using the
                                                  relying upon the statutory licenses set                                                                       above EPA, Region 10 address.
                                                  forth in 17 U.S.C. 112 and 114.                         [EPA–R10–OAR–2015–0353; FRL–9946–49–
                                                                                                                                                                SUPPLEMENTARY INFORMATION:
                                                     Performance means each instance in                   Region 10]
                                                                                                                                                                Throughout this document wherever
                                                  which any portion of a sound recording                                                                        ‘‘we,’’ ‘‘us,’’ or ‘‘our’’ is used, it is
                                                                                                          Approval and Promulgation of
                                                  is publicly performed to a Listener by                                                                        intended to refer to the EPA.
                                                                                                          Implementation Plans; Alaska:
                                                  means of a digital audio transmission or
                                                                                                          Updates to Incorporation by Reference                 Table of Contents
                                                  retransmission (e.g., the delivery of any
                                                                                                          and Miscellaneous Revisions
                                                  portion of a single track from a compact                                                                      I. Background
                                                  disc to one Listener) but excluding the                 AGENCY:  Environmental Protection                     II. Final Action
                                                  following:                                              Agency (EPA).                                         III. Incorporation by Reference
                                                     (i) A performance of a sound                         ACTION: Final rule.                                   IV. Statutory and Executive Order Reviews
                                                  recording that does not require a license                                                                     I. Background
                                                  (e.g., the sound recording is not                       SUMMARY:  The Environmental Protection
                                                  copyrighted);                                           Agency (EPA) is approving, and                           On May 12, 2015, Alaska submitted
                                                     (ii) A performance of a sound                        incorporating by reference, State                     revisions to the Alaska SIP. On March
asabaliauskas on DSK3SPTVN1PROD with RULES




                                                  recording for which the service has                     Implementation Plan revisions                         4, 2016, the EPA proposed to approve
                                                  previously obtained a license from the                  submitted by Alaska on May 12, 2015.                  specific revisions in the submission (81
                                                  Copyright Owner of such sound                           The revisions updated the incorporation               FR 11497). Please see our proposed
                                                  recording; and                                          by reference of certain Federal                       rulemaking for further explanation and
                                                     (iii) An incidental performance that                 provisions, revised rules to reflect                  the basis for our finding. The public
                                                  both:                                                   changes to Federal permitting                         comment period for the proposal ended
                                                     (A) Makes no more than incidental                    requirements and the 2013                             on April 4, 2016. We received one
                                                  use of sound recordings including, but                  redesignation of the Mendenhall Valley                comment, a letter from the Alaska


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Document Created: 2018-02-07 15:01:21
Document Modified: 2018-02-07 15:01:21
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesEffective May 19, 2016.
ContactKimberly Whittle at (202) 707-7658 or at [email protected]
FR Citation81 FR 31506 

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