82 FR 34554 - Notice of SoundExchange's Intent To Audit Music Choice's “Preexisting” Subscription Service and Business Establishment Service for CY 2016

LIBRARY OF CONGRESS
Copyright Royalty Board

Federal Register Volume 82, Issue 141 (July 25, 2017)

The Copyright Royalty Judges announce receipt of a notice of intent to audit the 2016 statements of account of Music Choice concerning the royalty payments its Preexisting Subscription Service and Business Establishments Service made pursuant to two statutory licenses.

[Federal Register Volume 82, Number 141 (Tuesday, July 25, 2017)]
[Notices]
[Pages 34554-34555]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-15528]


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LIBRARY OF CONGRESS

Copyright Royalty Board

[Docket No. 17-0015-CRB-AU]


Notice of SoundExchange's Intent To Audit Music Choice's 
``Preexisting'' Subscription Service and Business Establishment Service 
for CY 2016

AGENCY: Copyright Royalty Board (CRB), Library of Congress.

ACTION: Public notice of receipt of a notice of intent to audit 
statements of account.

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SUMMARY: The Copyright Royalty Judges announce receipt of a notice of 
intent to audit the 2016 statements of account of Music Choice 
concerning the royalty payments its Preexisting Subscription Service 
and Business Establishments Service made pursuant to two statutory 
licenses.

DATES: The notice of intent to audit was filed with the Copyright 
Royalty Board on June 27, 2017.

ADDRESSES: Docket: For access to the docket to read the notice of 
intent to audit, go to eCRB, the Copyright Royalty Board's electronic 
filing and case management system, at https://app.crb.gov/ and search 
for docket number 17-0015-CRB-AU.

FOR FURTHER INFORMATION CONTACT: Anita Brown, Program Specialist, by 
telephone at (202) 707-7658 or by email at [email protected].

SUPPLEMENTARY INFORMATION: The Copyright Act, title 17 of the United 
States Code, grants to copyright owners of sound recordings the 
exclusive right to publicly perform sound recordings by means of 
certain digital audio transmissions, subject to limitations. 
Specifically, the right is limited by the statutory license in section 
114 which allows nonexempt noninteractive digital subscription 
services, eligible nonsubscription services, and preexisting satellite 
digital audio radio services to perform publicly sound recordings by 
means of digital audio transmissions. 17 U.S.C. 114(f). In addition, a 
statutory license in section 112 allows a service to make necessary 
ephemeral reproductions to facilitate the digital transmission of the 
sound recording, including for transmissions to business 
establishments.\1\ 17 U.S.C. 112(e).
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    \1\ Subject to the limitations set forth in section 
114(d)(1)(C)(iv).
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    Licensees may operate under these licenses provided they pay the 
royalty fees and comply with the terms set by the Copyright Royalty 
Judges. The rates

[[Page 34555]]

and terms for the section 112 and 114 licenses are set forth in 37 CFR 
parts 380 and 382-84.
    As part of the terms set for these licenses, the Judges designated 
SoundExchange, Inc. as the Collective, i.e., the organization charged 
with collecting the royalty payments and statements of account 
submitted by licensees, including those that operate preexisting 
subscription services and those that make ephemeral copies for 
transmission to business establishments. The Collective is also charged 
with distributing the royalties to the copyright owners and performers 
entitled to receive them. See 37 CFR 382.2, 384.4(b).
    As the Collective, SoundExchange may, not more than once a calendar 
year, conduct an audit of a licensee for any or all of the prior three 
years in order to verify royalty payments. SoundExchange must first 
file with the Judges a notice of intent to audit a licensee and deliver 
the notice to the licensee. The Judges must publish notice in the 
Federal Register within 30 days of receipt of a notice announcing the 
Collective's intent to conduct an audit. See 37 CFR 382.6, 384.6.
    On June 27, 2017, SoundExchange filed with the Judges a notice of 
intent to audit Music Choice's Preexisting Subscription Service and 
Business Establishment Service for calendar year 2016. Today's notice 
fulfills the Judges' publication obligation with respect to 
SoundExchange's June 27, 2017 notice of intent to audit.

    Dated: July 19, 2017.
Suzanne M. Barnett,
Chief Copyright Royalty Judge.
[FR Doc. 2017-15528 Filed 7-24-17; 8:45 am]
 BILLING CODE 1410-72-P