82_FR_56172 82 FR 55946 - Cost of Living Adjustment to Satellite Carrier Compulsory License Royalty Rates

82 FR 55946 - Cost of Living Adjustment to Satellite Carrier Compulsory License Royalty Rates

LIBRARY OF CONGRESS
Copyright Royalty Board

Federal Register Volume 82, Issue 226 (November 27, 2017)

Page Range55946-55947
FR Document2017-25481

The Copyright Royalty Judges announce a cost of living adjustment (COLA) of 2.0% 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 2016 to October 2017.

Federal Register, Volume 82 Issue 226 (Monday, November 27, 2017)
[Federal Register Volume 82, Number 226 (Monday, November 27, 2017)]
[Rules and Regulations]
[Pages 55946-55947]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-25481]


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LIBRARY OF CONGRESS

Copyright Royalty Board

37 CFR Part 386

[Docket No. 17-CRB-0018-SA-COLA (2018)]


Cost of Living Adjustment to Satellite Carrier Compulsory License 
Royalty Rates

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

ACTION: Final rule.

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SUMMARY: The Copyright Royalty Judges announce a cost of living 
adjustment (COLA) of 2.0% 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 2016 to October 
2017.

DATES: Effective Date: January 1, 2018.
    Applicability Dates: These rates are applicable to the period 
January 1, 2018, through December 31, 2018.

[[Page 55947]]


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 distant 
retransmission of 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, 
2016, to the most recent index published before December 1, 2017, is 
+2.0%.\2\ Application of the 2.0% COLA to the current rate for the 
secondary transmission of broadcast stations by satellite carriers for 
private home viewing--27 cents per subscriber per month--results in a 
rate of 28 cents per subscriber per month (rounded to the nearest 
cent). See 37 CFR 386.2(b)(1). Application of the 2.0% COLA to the 
current rate for viewing in commercial establishments--57 cents per 
subscriber per month--results in a rate of 58 cents per subscriber per 
month (rounded to the nearest cent). See 37 CFR 386.2(b)(2).
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    \2\ On November 15, 2017, the Bureau of Labor Statistics 
announced that the CPI-U increased 2.0% 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)(ix) and 
(b)(2)(ix) as follows:


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

* * * * *
    (b) * * *
    (1) * * *
    (ix) 2018: 28 cents per subscriber per month.
    (2) * * *
    (ix) 2018: 58 cents per subscriber per month.

    Dated: November 20, 2017.
Suzanne M. Barnett,
Chief Copyright Royalty Judge.
[FR Doc. 2017-25481 Filed 11-24-17; 8:45 am]
 BILLING CODE 1410-72-P



                                             55946            Federal Register / Vol. 82, No. 226 / Monday, November 27, 2017 / Rules and Regulations

                                             structural steel for riser conduit support              and noncommercial noninteractive                      PART 380—RATES AND TERMS FOR
                                             was discovered to be in need of                         webcasters. See 81 FR 26316.                          TRANSMISSIONS BY ELIGIBLE
                                             immediate repairs and/or replacement.                      Pursuant to those regulations, at least            NONSUBSCRIPTION SERVICES AND
                                             Therefore, more time is needed to                       25 days before January 1 of each year                 NEW SUBSCRIPTION SERVICES AND
                                             complete the job, conduct tests, and                    from 2017 to 2020, the Judges shall                   FOR THE MAKING OF EPHEMERAL
                                             inspections. The subject temporary                      publish in the Federal Register notice of             REPRODUCTIONS TO FACILITATE
                                             deviation will be replaced with a                       a COLA applicable to the royalty fees for             THOSE TRANSMISSIONS
                                             temporary interim rule because an                       performances of sound recordings via
                                             extension of time could not be                                                                                ■ 1. The authority citation for part 380
                                                                                                     eligible transmissions by commercial
                                             approved, as it exceeds the 180 day                                                                           continues to read as follows:
                                                                                                     and noncommercial noninteractive
                                             limit.                                                  webcasters. 37 CFR 380.10(a)(1)–(2).                    Authority: 17 U.S.C. 112(e), 114(f),
                                               Dated: November 21, 2017.                                                                                   804(b)(3).
                                                                                                        The adjustment in the royalty fee
                                             Christopher J. Bisignano,                               shall be based on a calculation of the                ■ 2. Section 380.10 is amended by
                                             Supervisory Bridge Management Specialist,               percentage increase in the CPI–U from                 revising paragraph (a) to read as follows:
                                             First Coast Guard District.                             the CPI–U published in November 2015                  § 380.10 Royalty fees for the public
                                             [FR Doc. 2017–25532 Filed 11–24–17; 8:45 am]            (237.838), according to the formula (1 +              performance of sound recordings and the
                                             BILLING CODE 9110–04–P                                  (Cy¥ 237.838)/237.838) × R2016, where                 making of ephemeral recordings.
                                                                                                     Cy is the CPI–U published by the                        (a) Royalty fees. For the year 2018,
                                                                                                     Secretary of Labor before December 1 of               Licensees must pay royalty fees for all
                                             LIBRARY OF CONGRESS                                     the preceding year and R2016 is the                   Eligible Transmissions of sound
                                                                                                     royalty rate for 2016 (i.e., $0.0022 per              recordings at the following rates:
                                             Copyright Royalty Board                                 subscription performance or $0.0017 per                 (1) Commercial Webcasters: $0.0023
                                                                                                     nonsubscription performance). The                     per performance for subscription
                                             37 CFR Part 380                                         adjustment shall be rounded to the                    services and $0.0018 per performance
                                             [Docket No. 14–CRB–0001–WR (2016–2020)                  nearest fourth decimal place. 37 CFR                  for nonsubscription services.
                                             (COLA 2018)]                                            380.10(c) (as revised herein). The CPI–                 (2) Noncommercial webcasters. $500
                                                                                                     U published by the Secretary of Labor                 per year for each channel or station and
                                             Cost of Living Adjustment to Royalty                    from the most recent index published                  $0.0018 per performance for all digital
                                             Rates for Webcaster Statutory License                   before December 1, 2017, is 246.663.1                 audio transmissions in excess of
                                                                                                     Applying the formula in 37 CFR                        159,140 ATH in a month on a channel
                                             AGENCY:  Copyright Royalty Board (CRB),
                                                                                                     380.10(c) and rounding to the nearest                 or station.
                                             Library of Congress.
                                                                                                     fourth decimal place results in an                    *     *     *    *     *
                                             ACTION: Final rule.                                     increase in the rates for 2018.
                                                                                                                                                             Dated: November 20, 2017.
                                             SUMMARY:    The Copyright Royalty Judges                   The 2018 rate for eligible transmission            Suzanne M. Barnett,
                                             announce a cost of living adjustment                    of sound recordings by commercial                     Chief Copyright Royalty Judge.
                                             (COLA) in the royalty rates that                        webcasters is a rate of $0.0023 per
                                                                                                                                                           [FR Doc. 2017–25480 Filed 11–24–17; 8:45 am]
                                             commercial and noncommercial                            subscription performance and a rate of
                                                                                                                                                           BILLING CODE 1410–72–P
                                             noninteractive webcasters pay for                       $0.0018 per nonsubscription
                                             eligible transmissions pursuant to the                  performance.
                                             statutory licenses for the public                          Application of the increase to rates for           LIBRARY OF CONGRESS
                                             performance of and for the making of                    noncommercial webcasters results in a
                                             ephemeral reproductions of sound                        2018 rate of $0.0018 per performance for              Copyright Royalty Board
                                             recordings.                                             all digital audio transmissions in excess
                                             DATES:  Effective Date: January 1, 2018.                of 159,140 ATH in a month on a                        37 CFR Part 386
                                                Applicability Dates: These rates are                 channel or station.                                   [Docket No. 17–CRB–0018–SA–COLA
                                             applicable to the period January 1, 2018,                  As provided in 37 CFR 380.1(d), the                (2018)]
                                             through December 31, 2018.                              royalty fee for making ephemeral
                                             FOR FURTHER INFORMATION CONTACT:                        recordings under section 112 of the                   Cost of Living Adjustment to Satellite
                                             Kimberly Whittle, Attorney Advisor, by                  Copyright Act to facilitate digital                   Carrier Compulsory License Royalty
                                             telephone at (202) 707–7658 or by email                 transmission of sound recordings under                Rates
                                             at crb@loc.gov.                                         section 114 of the Copyright Act is                   AGENCY:  Copyright Royalty Board (CRB),
                                             SUPPLEMENTARY INFORMATION: Sections                     included in the section 114 royalty fee               Library of Congress.
                                             112(e) and 114(f) of the Copyright Act,                 and comprises 5% of the total fee.                    ACTION: Final rule.
                                             title 17 of the United States Code, create
                                                                                                     List of Subjects in 37 CFR Part 380                   SUMMARY:    The Copyright Royalty Judges
                                             statutory licenses for certain digital
                                             performances of sound recordings and                      Copyright, Sound recordings.                        announce a cost of living adjustment
                                             the making of ephemeral reproductions                                                                         (COLA) of 2.0% in the royalty rates
                                             to facilitate transmission of those sound               Final Regulations                                     satellite carriers pay for a compulsory
                                             recordings. On May 2, 2016, the                                                                               license under the Copyright Act. The
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                                                                                                       In consideration of the foregoing, the              COLA is based on the change in the
                                             Copyright Royalty Judges (Judges)
                                                                                                     Judges amend part 380 of title 37 of the              Consumer Price Index from October
                                             adopted final regulations governing the
                                                                                                     Code of Federal Regulations as follows:               2016 to October 2017.
                                             rates and terms of copyright royalty
                                             payments under those licenses for the                     1 As announced on November 15, 2017, by the
                                                                                                                                                           DATES: Effective Date: January 1, 2018.
                                             license period 2016–2020 for                            Bureau of Labor Statistics in its News Release—
                                                                                                                                                              Applicability Dates: These rates are
                                             performances of sound recordings via                    Consumer Price Index October 2017, available at       applicable to the period January 1, 2018,
                                             eligible transmissions by commercial                    http://www.bls.gov/news.release/pdf/cpi.pdf at 4.     through December 31, 2018.


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                                                              Federal Register / Vol. 82, No. 226 / Monday, November 27, 2017 / Rules and Regulations                                       55947

                                             FOR FURTHER INFORMATION CONTACT:                        List of Subjects in 37 CFR Part 386                   DMM revisions are scheduled to become
                                             Kimberly Whittle, Attorney Advisor, by                      Copyright, Satellite, Television.                 effective on January 21, 2018. Final
                                             telephone at (202) 707–7658 or by email                                                                       prices are available under Docket No.
                                             at crb@loc.gov.                                         Final Regulations                                     R2018–1 (Order No. 4215) on the Postal
                                                                                                       In consideration of the foregoing, the              Regulatory Commission’s Web site at
                                             SUPPLEMENTARY INFORMATION:       The                                                                          www.prc.gov. The Postal Service’s final
                                             satellite carrier compulsory license                    Judges amend part 386 of title 37 of the
                                                                                                     Code of Federal Regulations as follows:               rule includes: a change to the pallet
                                             establishes a statutory copyright                                                                             preparation for Carrier Route (CR)
                                             licensing scheme for the distant                                                                              Pallets in Non-FSS Zones, a change to
                                                                                                     PART 386—ADJUSTMENT OF
                                             retransmission of television                            ROYALTY FEES FOR SECONDARY                            add Bound Printed Matter Flats up to 24
                                             programming by satellite carriers. 17                   TRANSMISSIONS BY SATELLITE                            ounces to comail with USPS Marketing
                                             U.S.C. 119. Congress created the license                CARRIERS                                              Mail and Periodicals (DSCF or DDU
                                             in 1988 and has reauthorized the license                                                                      only), and a Zone chart revision for
                                             for additional five-year periods, most                  ■ 1. The authority citation for part 386              Priority Mail to APO/FPO/DPO
                                             recently with the passage of the STELA                  continues to read as follows:                         processing at Chicago ISC.
                                             Reauthorization Act of 2014, Public Law
                                                                                                         Authority: 17 U.S.C. 119(c), 801(b)(1).           Comments on Proposed Changes and
                                             113–200.
                                                                                                     ■ 2. Section 386.2 is amended by adding               USPS Response
                                                On August 31, 2010, the Copyright                    paragraphs (b)(1)(ix) and (b)(2)(ix) as
                                             Royalty Judges (Judges) adopted rates                                                                           The Postal Service received 1 formal
                                                                                                     follows:
                                             for the section 119 compulsory license                                                                        comment on the October 13, 2017
                                             for the 2010–2014 term. See 75 FR                       § 386.2 Royalty fee for secondary                     proposed rule.
                                             53198. The rates were proposed by                       transmission by satellite carriers.
                                                                                                                                                           Zone Charts Revision: Priority Mail to
                                             Copyright Owners and Satellite                          *    *    *     *     *                               APO/FPO/DPO Processing at Chicago
                                             Carriers 1 and were unopposed. Id.                       (b) * * *                                            ISC
                                             Section 119(c)(2) of the Copyright Act                   (1) * * *
                                             provides that, effective January 1 of each               (ix) 2018: 28 cents per subscriber per                 One comment requested that the
                                             year, the Judges shall adjust the royalty               month.                                                Postal Service reconsider changing
                                             fee payable under Section 119(b)(1)(B)                   (2) * * *                                            APO/FPO/DPO mail processing at
                                             ‘‘to reflect any changes occurring in the                (ix) 2018: 58 cents per subscriber per               Chicago ISC, based on needing more
                                             cost of living as determined by the most                month.                                                study on negative, financial
                                             recent Consumer Price Index (for all                                                                          consequences on US Service members,
                                                                                                       Dated: November 20, 2017.
                                             consumers and for all items) [CPI–U]                                                                          their families and businesses that serve
                                                                                                     Suzanne M. Barnett,
                                             published by the Secretary of Labor                                                                           them.
                                                                                                     Chief Copyright Royalty Judge.
                                             before December 1 of the preceding                      [FR Doc. 2017–25481 Filed 11–24–17; 8:45 am]          USPS Response
                                             year.’’ Section 119 also requires that                                                                           The Postal Service is revising Zone
                                                                                                     BILLING CODE 1410–72–P
                                             ‘‘[n]otification of the adjusted fees shall                                                                   charts for Priority Mail to APO/FPO/
                                             be published in the Federal Register at                                                                       DPO, which is processed at the Chicago
                                             least 25 days before January 1.’’ 17                                                                          ISC, based on operational needs. This
                                                                                                     POSTAL SERVICE
                                             U.S.C. 119(c)(2).                                                                                             revision reflects current operations and
                                                The change in the cost of living as                  39 CFR Part 111                                       is consistent with Title 39 and former
                                             determined by the CPI–U during the                                                                            Postal Rate Commission precedent
                                             period from the most recent index                       New Mailing Standards for Domestic                    regarding the alignment of rates and
                                             published before December 1, 2016, to                   Mailing Services Products                             costs for mail classification. It is
                                             the most recent index published before                  AGENCY:  Postal ServiceTM.                            necessary to align rates and costs for
                                             December 1, 2017, is +2.0%.2                                                                                  Priority Mail addressed to APO/FPO/
                                                                                                     ACTION: Final rule.
                                             Application of the 2.0% COLA to the                                                                           DPO destinations, and eliminate
                                             current rate for the secondary                          SUMMARY:   On October 6, 2017, the Postal             inconsistencies between rates and costs
                                             transmission of broadcast stations by                   Service (USPS®) filed a notice of                     for such Priority Mail.
                                             satellite carriers for private home                     mailing services price adjustments with                  The Proposed Rule is not a sudden,
                                             viewing—27 cents per subscriber per                     the Postal Regulatory Commission (PRC)                unforeseeable change in policy. The
                                             month—results in a rate of 28 cents per                 in Docket No. R2018–1. On October 13,                 transfer of processing operations to the
                                             subscriber per month (rounded to the                    2017 the Postal Service published a                   Chicago ISC, and the resulting
                                             nearest cent). See 37 CFR 386.2(b)(1).                  proposed rule containing the revisions                inconsistency between Zone
                                             Application of the 2.0% COLA to the                     to Mailing Standards of the United                    classification and transportation costs,
                                             current rate for viewing in commercial                  States Postal Service, Domestic Mail                  occurred in 2013. For over three years,
                                             establishments—57 cents per subscriber                  Manual (DMM®) that we planned to                      mailers had an opportunity to assess the
                                             per month—results in a rate of 58 cents                 adopt to implement rule changes                       potential impact of this change on
                                             per subscriber per month (rounded to                    coincident with the price adjustments.                future operations, and some businesses
                                             the nearest cent). See 37 CFR                           DATES: Effective: January 21, 2018.
                                                                                                                                                           responded to the change by relocating
                                             386.2(b)(2).                                                                                                  their operations in anticipation of a
                                                                                                     FOR FURTHER INFORMATION CONTACT:
                                                                                                                                                           potential reclassification of zones
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                                               1 Program Suppliers and Joint Sports Claimants
                                                                                                     Jacqueline Erwin at (202) 268–2158, or                necessary to align rates and costs.
                                             comprised the Copyright Owners while DIRECTV,           Lizbeth Dobbins at (202) 268–3789.                       The resulting changes to DMM 608
                                             Inc., DISH Network, LLC, and National                   SUPPLEMENTARY INFORMATION: On                         are shown below.
                                             Programming Service, LLC, comprised the Satellite       November 9, 2017, the PRC found that
                                             Carriers.                                                                                                     List of Subjects in 39 CFR Part 111
                                               2 On November 15, 2017, the Bureau of Labor           the price adjustments proposed by the
                                             Statistics announced that the CPI–U increased 2.0%      Postal Service may take effect as                       Administrative practice and
                                             over the last 12 months.                                planned. The price adjustments and                    procedure, Postal Service.


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Document Created: 2017-11-25 01:08:46
Document Modified: 2017-11-25 01:08:46
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 Date: January 1, 2018.
ContactKimberly Whittle, Attorney Advisor, by telephone at (202) 707-7658 or by email at [email protected]
FR Citation82 FR 55946 
CFR AssociatedCopyright; Satellite and Television

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