81 FR 84478 - Cost of Living Adjustment to Satellite Carrier Compulsory License Royalty Rates

LIBRARY OF CONGRESS
Copyright Royalty Board

Federal Register Volume 81, Issue 226 (November 23, 2016)

The Copyright Royalty Judges announce a cost of living adjustment (COLA) of 1.6% in the royalty rates satellite carriers pay for a compulsory license under the Copyright Act. The COLA is based on the change in the Consumer Price Index from October 2015 to October 2016.

[Federal Register Volume 81, Number 226 (Wednesday, November 23, 2016)]
[Rules and Regulations]
[Pages 84478-84479]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-28180]


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LIBRARY OF CONGRESS

Copyright Royalty Board

37 CFR Part 386

[Docket No. 16-CRB-0017-SA-COLA (2017)]


Cost of Living Adjustment to Satellite Carrier Compulsory License 
Royalty Rates

AGENCY: Copyright Royalty Board, Library of Congress.

ACTION: Final rule.

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SUMMARY: The Copyright Royalty Judges announce a cost of living 
adjustment (COLA) of 1.6% in the royalty rates satellite carriers pay 
for a compulsory license under the Copyright Act. The COLA is based on 
the change in the Consumer Price Index from October 2015 to October 
2016.

DATES: Effective Date: January 1, 2017.
    Applicability Dates: These rates are applicable to the period 
January 1, 2017, through December 31, 2017.

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

SUPPLEMENTARY INFORMATION: The satellite carrier compulsory license 
establishes a statutory copyright licensing scheme for the 
retransmission of distant television programming by satellite carriers. 
17 U.S.C. 119. Congress created the license in 1988 and has 
reauthorized the license for additional five-year periods, most 
recently with the passage of the STELA Reauthorization Act of 2014, 
Public Law 113-200.
    On August 31, 2010, the Copyright Royalty Judges (Judges) adopted 
rates for the section 119 compulsory license for the 2010-2014 term. 
See 75 FR 53198. The rates were proposed by Copyright Owners and 
Satellite Carriers \1\ and were unopposed. Id. Section 119(c)(2) of the 
Copyright Act provides that, effective January 1 of each year, the 
Judges shall adjust the royalty fee payable under Section 119(b)(1)(B) 
``to reflect any changes occurring in the cost of living as determined 
by the most recent Consumer Price Index (for all consumers and for all 
items) [CPI-U] published by the Secretary of Labor before December 1 of 
the preceding year.'' Section 119 also requires that ``[n]otification 
of the adjusted fees shall be published in the Federal Register at 
least 25 days before January 1.'' 17 U.S.C. 119(c)(2).
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    \1\ Program Suppliers and Joint Sports Claimants comprised the 
Copyright Owners while DIRECTV, Inc., DISH Network, LLC, and 
National Programming Service, LLC, comprised the Satellite Carriers.
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    The change in the cost of living as determined by the CPI-U during 
the period from the most recent index published before December 1, 
2015, to the most recent index published before December 1, 2016, is 
1.6%.\2\ Application of the 1.6% COLA to the current rate for the 
secondary transmission of broadcast stations by satellite carriers for 
private

[[Page 84479]]

home viewing--27 cents per subscriber per month--results in an 
unchanged rate of 27 cents per subscriber per month (rounded to the 
nearest cent). See 37 CFR 386.2(b)(1). Application of the 1.6% COLA to 
the current rate for viewing in commercial establishments--56 cents per 
subscriber per month--results in a rate of 57 cents per subscriber per 
month (rounded to the nearest cent). See 37 CFR 386.2(b)(2).
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    \2\ On November 17, 2016, the Bureau of Labor Statistics 
announced that the CPI-U increased 1.6% over the last 12 months.
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List of Subjects in 37 CFR Part 386

    Copyright, Satellite, Television.

Final Regulations

    In consideration of the foregoing, the Judges amend part 386 of 
title 37 of the Code of Federal Regulations as follows:

PART 386--ADJUSTMENT OF ROYALTY FEES FOR SECONDARY TRANSMISSIONS BY 
SATELLITE CARRIERS

0
1. The authority citation for part 386 continues to read as follows:

    Authority:  17 U.S.C. 119(c), 801(b)(1).

0
2. Section 386.2 is amended by adding paragraphs (b)(1)(viii) and 
(b)(2)(viii) as follows:


Sec.  386.2  Royalty fee for secondary transmission by satellite 
carriers.

* * * * *
    (b) * * *
    (1) * * *
    (viii) 2017: 27 cents per subscriber per month.
    (2) * * *
    (viii) 2017: 57 cents per subscriber per month.

    Dated: November 17, 2016.
Suzanne M. Barnett,
Chief Copyright Royalty Judge.
[FR Doc. 2016-28180 Filed 11-22-16; 8:45 am]
 BILLING CODE 1410-72-P