81 FR 89867 - Notice and Recordkeeping for Use of Sound Recordings Under Statutory License; Technical Amendment

LIBRARY OF CONGRESS
Copyright Royalty Board

Federal Register Volume 81, Issue 239 (December 13, 2016)

On August 10, 2016, the Copyright Royalty Judges (Judges) published in the Federal Register for comment proposed amendments to regulations governing reporting requirements for noncommercial webcasters, including noncommercial educational webcasters, that pay no more than the minimum fee for their use of sound recordings under the applicable statutory licenses. The Judges received three comments. The Judges hereby publish the final rule.

[Federal Register Volume 81, Number 239 (Tuesday, December 13, 2016)]
[Rules and Regulations]
[Pages 89867-89868]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-29761]


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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; Technical Amendment

AGENCY: Copyright Royalty Board, Library of Congress.

ACTION: Final rule; amendment.

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SUMMARY: On August 10, 2016, the Copyright Royalty Judges (Judges) 
published in the Federal Register for comment proposed amendments to 
regulations governing reporting requirements for noncommercial 
webcasters, including noncommercial educational webcasters, that pay no 
more than the minimum fee for their use of sound recordings under the 
applicable statutory licenses. The Judges received three comments. The 
Judges hereby publish the final rule.

DATES: Effective December 13, 2016.
    Applicability Date: May 19, 2016.

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

SUPPLEMENTARY INFORMATION: 

Introduction

    In 2009, the Copyright Royalty Judges (Judges) published 
regulations concerning reporting requirements for webcasters streaming 
sound recordings under statutory licenses described in 17 U.S.C. 112 
and 114. See 79 FR 25009. On June 21, 2016, the Judges published a 
technical amendment to the regulations. 81 FR 40190. Later that same 
day, the Judges received a Joint Petition of the National Association 
of Broadcasters and the National Religious Broadcasters Noncommercial 
Music License Committee (together, Broadcasters) to Amend Final Rule 
Regarding Reporting Requirements (Joint Motion).
    The Broadcasters contended that by removing the definition of 
``Minimum Fee Broadcaster'' the Judges had failed to effect their 
intent. Joint Motion at 7. The Judges agreed that the regulation as 
amended on June 21, 2016, did not effect their intent because it 
defined the term ``Eligible Minimum Fee Webcaster'' too narrowly and 
therefore arguably excluded the webcasts of noncommercial minimum fee 
broadcasters, a category that the Judges had intended to include. 
Accordingly, on August 10, 2016, the Judges proposed a second amendment 
to the regulations and published it for comment. 81 FR 52782.
    The Broadcasters filed a joint comment supporting adoption of the 
proposed second amendment to the regulations. The Intercollegiate 
Broadcasting System (IBS), which had appealed the prior iterations of 
the regulations to the U.S. Court of Appeals for the D.C. Circuit, 
filed a comment that included the following language.

    Given the limited scope of the Notice and without prejudice to 
its objections to the $500 annual fee, the $100 opt-out fee, and the 
reporting requirements, IBS interposes no objection to the Notice.

IBS Comment at 2. The Judges interpret that comment as not opposing the 
proposed second amendment.\1\
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    \1\ A third comment was filed by Adam Stein, but the Judges 
found it to be an unreasonable objection as Mr. Stein offered no 
support for his allegations, which appeared to be based upon a 
fundamental misunderstanding of compulsory licenses.
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List of Subjects in 37 CFR Part 370

    Copyright.

Final regulations

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

[[Page 89868]]

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. Amend Sec.  370.4 in paragraph (b) by revising the definition of 
``Eligible Minimum Fee Webcaster'' 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.

* * * * *
    (b) * * *
    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:
    (i) Is a licensee that owns and operates a terrestrial AM or FM 
radio station that is licensed by the Federal Communications 
Commission; 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 
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;
    (B) 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; and
    (C) 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.
* * * * *

    Dated: November 15, 2016.
Suzanne M. Barnett,
Chief Copyright Royalty Judge.

    Approved:
Carla D. Hayden,
Librarian of Congress.
[FR Doc. 2016-29761 Filed 12-12-16; 8:45 am]
 BILLING CODE 1410-72-P