82_FR_7891 82 FR 7878 - Notice of Intent To Audit

82 FR 7878 - Notice of Intent To Audit

LIBRARY OF CONGRESS
Copyright Royalty Board

Federal Register Volume 82, Issue 13 (January 23, 2017)

Page Range7878-7879
FR Document2017-01318

The Copyright Royalty Judges announce receipt of a notice of intent to audit the 2013, 2014, and 2015 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 Issue 13 (Monday, January 23, 2017)
[Federal Register Volume 82, Number 13 (Monday, January 23, 2017)]
[Notices]
[Pages 7878-7879]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-01318]


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LIBRARY OF CONGRESS

Copyright Royalty Board

[Docket No. 17-0005-CRB-AU]


Notice of Intent To Audit

AGENCY: Copyright Royalty Board, Library of Congress.

ACTION: Public notice.

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SUMMARY: The Copyright Royalty Judges announce receipt of a notice of 
intent to audit the 2013, 2014, and 2015 statements of account of Music 
Choice concerning the royalty payments its Preexisting Subscription 
Service and Business Establishments Service made pursuant to two 
statutory licenses.

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

SUMMARY 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 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

[[Page 7879]]

entitled to receive them. See 37 CFR 382.2, 384.4(b).
    As the designated Collective, SoundExchange may, once during 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. See 37 CFR 382.6, 384.6.
    On December 22, 2016, SoundExchange filed with the Judges a notice 
of intent to audit Music Choice's Preexisting Subscription Service and 
Business Establishment Service for the years 2013, 2014, and 2015. 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(c), 384.6(c). Today's notice fulfills this 
requirement with respect to SoundExchange's December 22, 2016, notice 
of intent to audit.

    Dated: January 13, 2017.
Suzanne M. Barnett,
Chief Copyright Royalty Judge.
[FR Doc. 2017-01318 Filed 1-19-17; 8:45 am]
 BILLING CODE 1410-72-P



                                                  7878                          Federal Register / Vol. 82, No. 13 / Monday, January 23, 2017 / Notices

                                                  The Moving Parties stipulate that the                   responses to the motion for partial                    LIBRARY OF CONGRESS
                                                  value of the Music Claimants’ Share is                  distribution to ascertain whether any
                                                  as listed as above, minus the dollar                    claimant entitled to receive the subject               Copyright Royalty Board
                                                  value of partial distributions of the                   royalties has a reasonable objection to                [Docket No. 17–0005–CRB–AU]
                                                  2010–13 Funds that Music Claimants                      the requested distribution. Accordingly,
                                                  have received to date.4 The Licensing                   this Notice seeks comments from                        Notice of Intent To Audit
                                                  Office will calculate the Music                         interested claimants on whether any
                                                  Claimants’ Share of the total funds as of                                                                      AGENCY:  Copyright Royalty Board,
                                                                                                          reasonable objection exists that would                 Library of Congress.
                                                  the date of the distribution to Music                   preclude the distributions to NPR or
                                                  Claimants for each of the years included                                                                       ACTION: Public notice.
                                                                                                          Music Claimants described in this
                                                  in the 2010–13 Funds, including
                                                                                                          Notice. Parties making objection to the                SUMMARY:    The Copyright Royalty Judges
                                                  interest accrued to the date of
                                                                                                          partial distribution must advise the                   announce receipt of a notice of intent to
                                                  distribution and excluding (1) the
                                                                                                          Judges of the existence and details of all             audit the 2013, 2014, and 2015
                                                  distribution to NPR of its 0.16% share
                                                                                                          objections by the end of the comment                   statements of account of Music Choice
                                                  as specified in the December 6, 2016,
                                                                                                          period. The Judges will not consider any               concerning the royalty payments its
                                                  NPR Motion and (2) taxable costs
                                                                                                          objections with respect to the partial                 Preexisting Subscription Service and
                                                  incurred by the Department of
                                                                                                          distribution motion that come to their                 Business Establishments Service made
                                                  Licensing.
                                                    The Moving Parties represent that                     attention after the close of the comment               pursuant to two statutory licenses.
                                                  there are no outstanding inter- or intra-               period.                                                FOR FURTHER INFORMATION CONTACT:
                                                  category controversies regarding the                                                                           Anita Brown, Program Specialist, by
                                                                                                             The Judges have caused the joint
                                                  claims in the Music Claimant category.                                                                         telephone at (202) 707–7658 or by email
                                                                                                          motion regarding NPR and the joint
                                                  The Parties further stipulate and agree                                                                        at crb@loc.gov.
                                                                                                          motion regarding Music Claimants to be
                                                  that these sums shall not be subject to                                                                        SUMMARY INFORMATION: The Copyright
                                                                                                          posted on the Copyright Royalty Board
                                                  repayment once distributed, that Music                                                                         Act, title 17 of the United States Code,
                                                                                                          Web site at http://www.loc.gov/crb.
                                                  Claimants need not participate further                                                                         grants to copyright owners of sound
                                                  in royalty distribution proceedings                     How To Submit Comments                                 recordings the exclusive right to
                                                  related to the 2010–13 Funds, and that                                                                         publicly perform sound recordings by
                                                  no additional sums shall be distributed                    Interested members of the public must               means of certain digital audio
                                                  to Music Claimants in the future with                   submit comments to only one of the                     transmissions, subject to limitations.
                                                  respect to the 2010–13 Funds, provided                  following addresses. If not commenting                 Specifically, the right is limited by the
                                                  that Music Claimants shall be entitled to               by email or online, commenters must                    statutory license in section 114 which
                                                  receive the Music Claimants’ Share of                   submit an original of their comments,                  allows nonexempt noninteractive digital
                                                  any additional royalties deposited into                 five paper copies, and an electronic                   subscription services, eligible
                                                  any of the 2010–13 Funds due to any                     version on a CD.                                       nonsubscription services, and
                                                  audit of any cable system operator’s                       Email: crb@loc.gov; or                              preexisting satellite digital audio radio
                                                  Statement of Account pursuant to 37                                                                            services to perform publicly sound
                                                  CFR 201.16 that Music Claimants joined                     Online: www.regulations.gov; or                     recordings by means of digital audio
                                                  as participating copyright owners.                         U.S. mail: Copyright Royalty Board,                 transmissions. 17 U.S.C. 114(f).
                                                    The Moving Parties’ further stipulate                 P.O. Box 70977, Washington, DC 20024–                     In addition, a statutory license in
                                                  that the terms described in the Music                   0977; or                                               section 112 allows a service to make
                                                  Motion represent a compromise and                                                                              necessary ephemeral reproductions to
                                                                                                             Overnight service (only USPS Express
                                                  settlement and apply to the 2010, 2011,                                                                        facilitate the digital transmission of the
                                                                                                          Mail is acceptable): Copyright Royalty                 sound recording, including for
                                                  2012, and 2013 Cable Royalty                            Board, P.O. Box 70977, Washington, DC
                                                  Distribution Proceedings only; no party                                                                        transmissions to business
                                                                                                          20024–0977; or                                         establishments.1 17 U.S.C. 112(e).
                                                  accepts the requested allocation as
                                                  precedent and no party admits to any                       Commercial courier: Address package                    Licensees may operate under these
                                                  principle underlying stipulated amounts                 to: Copyright Royalty Board, Library of                licenses provided they pay the royalty
                                                  of the Music Claimants’ Share.                          Congress, James Madison Memorial                       fees and comply with the terms set by
                                                                                                          Building, LM–403, 101 Independence                     the Copyright Royalty Judges. The rates
                                                  Partial Distribution                                                                                           and terms for the section 112 and 114
                                                                                                          Avenue SE., Washington, DC 20559–
                                                    The Moving Parties therefore request                  6000. Deliver to: Congressional Courier                licenses are set forth in 37 CFR parts
                                                  the Judges to order a partial distribution              Acceptance Site, 2nd Street NE. and D                  380 and 382–84.
                                                  of royalties to NPR in the agreed                       Street NE., Washington, DC; or                            As part of the terms set for these
                                                  amounts and a partial distribution to                                                                          licenses, the Judges designated
                                                  Music Claimants in the agreed amounts                      Hand delivery: Library of Congress,                 SoundExchange, Inc. as the Collective,
                                                  pursuant to section 801(b)(3)(C) of the                 James Madison Memorial Building, LM–                   i.e., the organization charged with
                                                  Copyright Act.5 17 U.S.C. 801(b)(3)(C).                 401, 101 Independence Avenue SE.,                      collecting the royalty payments and
                                                  That section requires that, before ruling               Washington, DC 20559–6000.                             statements of account submitted by
                                                  on the motion, the Judges publish a                       Dated: January 17, 2017.                             licensees, including those that operate
                                                  notice in the Federal Register seeking                  Suzanne M. Barnett,                                    preexisting subscription services and
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                                                                                                                                                                 those that make ephemeral copies for
                                                                                                          Chief U.S. Copyright Royalty Judge.
                                                    4 The amounts Music Claimants have received in                                                               transmission to business establishments.
                                                  partial distribution for each of the 2010–13 Funds      [FR Doc. 2017–01358 Filed 1–19–17; 8:45 am]            The Collective is also charged with
                                                  are available at http://www.copyright.gov/licensing/
                                                  distribution-fund.pdf.
                                                                                                          BILLING CODE 1410–72–P                                 distributing the royalties to the
                                                    5 The requested distributions represent partial                                                              copyright owners and performers
                                                  distributions of the 2010–13 Funds, but not partial
                                                  distributions to NPR or the Music Claimants, whose                                                               1 Subject to the limitations set forth in section

                                                  claims are satisfied by the requested distributions.                                                           114(d)(1)(C)(iv).



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                                                                                Federal Register / Vol. 82, No. 13 / Monday, January 23, 2017 / Notices                                                             7879

                                                  entitled to receive them. See 37 CFR                    FOR FURTHER INFORMATION CONTACT:                              Funds that Music Claimants have
                                                  382.2, 384.4(b).                                        Kimberly Whittle, Attorney-Advisor, by                        received to date.2
                                                     As the designated Collective,                        telephone at (202) 707–7658 or email at                         The Moving Parties represent that
                                                  SoundExchange may, once during a                        crb@loc.gov.                                                  there are no outstanding inter- or intra-
                                                  calendar year, conduct an audit of a                    SUPPLEMENTARY INFORMATION: Each year                          category controversies regarding the
                                                  licensee for any or all of the prior three              satellite systems must submit royalty                         claims in the Music Claimant category.
                                                  years in order to verify royalty                        payments to the Register of Copyrights                        The Parties further stipulate and agree
                                                  payments. SoundExchange must first                      as required by the statutory license set                      that these sums shall not be subject to
                                                  file with the Judges a notice of intent to              forth in section 119 of the Copyright Act                     repayment once distributed, that Music
                                                  audit a licensee and deliver the notice                 for the retransmission to satellite                           Claimants need not participate further
                                                  to the licensee. See 37 CFR 382.6, 384.6.               subscribers of over-the-air television                        in royalty distribution proceedings
                                                     On December 22, 2016,                                and radio broadcast signals. See 17                           related to the 2010–13 Funds, and that
                                                  SoundExchange filed with the Judges a                   U.S.C. 119(b). The Copyright Royalty                          no additional sums shall be distributed
                                                  notice of intent to audit Music Choice’s                Judges (Judges) oversee distribution of                       to Music Claimants in the future with
                                                  Preexisting Subscription Service and                    royalties to copyright owners whose                           respect to the 2010–13 Funds, provided
                                                  Business Establishment Service for the                  works were included in a qualifying                           that Music Claimants shall be entitled to
                                                  years 2013, 2014, and 2015. The Judges                  retransmission and who filed a timely                         receive the Music Claimants’ Share of
                                                  must publish notice in the Federal                      claim for royalties. Allocation of the                        any additional royalties deposited into
                                                  Register within 30 days of receipt of a                 royalties collected occurs in one of two                      any of the 2010–13 Funds due to any
                                                  notice announcing the Collective’s                      ways. In the first instance, the Judges                       audit of any cable system operator’s
                                                  intent to conduct an audit. See 37 CFR                  may authorize distribution in                                 Statement of Account pursuant to 37
                                                  382.6(c), 384.6(c). Today’s notice fulfills             accordance with a negotiated settlement                       CFR 201.16 that Music Claimants joined
                                                  this requirement with respect to                        among all claiming parties. 17 U.S.C.                         as participating copyright owners.
                                                  SoundExchange’s December 22, 2016,                      111(d)(4)(A). If all claimants do not                           The Moving Parties’ further stipulate
                                                  notice of intent to audit.                              reach agreement with respect to the                           that the terms described in the Joint
                                                    Dated: January 13, 2017.                              royalties, the Judges must conduct a                          Motion represent a compromise and
                                                                                                          proceeding to determine the distribution                      settlement and apply to the 2010, 2011,
                                                  Suzanne M. Barnett,
                                                                                                          of any royalties that remain in                               2012, and 2013 Cable Royalty
                                                  Chief Copyright Royalty Judge.
                                                                                                          controversy. 17 U.S.C. 111(d)(4)(B).                          Distribution Proceedings only; no party
                                                  [FR Doc. 2017–01318 Filed 1–19–17; 8:45 am]             Alternatively, the Judges may, on                             accepts the requested allocation as
                                                  BILLING CODE 1410–72–P                                  motion of claimants and on notice to all                      precedent and no party admits to any
                                                                                                          interested parties, authorize a partial                       principle underlying the Music
                                                                                                          distribution of royalties, reserving on                       Claimants’ Share.
                                                  LIBRARY OF CONGRESS                                     deposit sufficient funds to resolve                             The Moving Parties therefore request
                                                                                                          identified disputes. 17 U.S.C.                                that the Judges order a partial
                                                  Copyright Royalty Board
                                                                                                          111(d)(4)(C), 801(b)(3)(C).                                   distribution of royalties to Music
                                                  [Consolidated Docket No. 14–CRB–0011–SD                    On December 15, 2016, the Judges                           Claimants in the agreed amounts
                                                  (2010–13)]                                              received a motion (Joint Motion) seeking                      pursuant to section 801(b)(3)(C) of the
                                                                                                          distribution by stipulation to the Music                      Copyright Act.3 17 U.S.C. 801(b)(3)(C).
                                                  Distribution of 2010–13 Satellite                       Claimants from the satellite royalty
                                                  Royalty Funds                                                                                                         That section requires that, before ruling
                                                                                                          funds deposited for royalty years 2010                        on the motion, the Judges publish a
                                                  AGENCY:  Copyright Royalty Board,                       through 2013, inclusive (the Funds). All                      notice in the Federal Register seeking
                                                  Library of Congress.                                    participants 1 in this consolidated                           responses to the motion for partial
                                                                                                          proceeding (Moving Parties) endorsed                          distribution to ascertain whether any
                                                  ACTION: Notice requesting comments.
                                                                                                          the Joint Motion. In the Joint Motion,                        claimant entitled to receive the subject
                                                  SUMMARY:    The Copyright Royalty Judges                the Moving Parties notified the Judges                        royalties has a reasonable objection to
                                                  announce settlement of controversies                    that they stipulate and agree that Music                      the requested distribution. Accordingly,
                                                  and a request for partial distribution of               Claimants shall receive a share of each                       this Notice seeks comments from
                                                  satellite television retransmission                     of the 2010–13 Funds as follows (the                          interested claimants on whether any
                                                  royalties claimed by Music Claimants.                   Music Claimants’ Share):                                      reasonable objection exists that would
                                                  Music Claimants include Broadcast                                                                                     preclude the distributions to Music
                                                                                                                     Year                            Percentage
                                                  Music, Inc. (BMI) and the American
                                                  Society of Composers, Authors, and                      2010   ..........................   3.50
                                                                                                                                                                           2 The amounts Music Claimants have received in

                                                  Publishers (ASCAP), as well as SESAC,                   2011   ..........................   3.50                      partial distribution from each year’s portion of the
                                                                                                                                                                        2010–13 Funds were calculated pursuant to
                                                  Inc.                                                    2012   ..........................   3.50                      confidential settlement agreements among the
                                                  DATES: Comments are due on or before                    2013   ..........................   3.50                      parties and were received from monies distributed
                                                  February 22, 2017.                                                                                                    by the Office of the Commissioner of Baseball as
                                                                                                            The Moving Parties stipulate that the                       Common Agent for the parties. The amount of these
                                                  ADDRESSES: Submit electronic                                                                                          partial distributions constitutes Restricted
                                                                                                          value of the Music Claimants’ Share is
                                                  comments via email to crb@loc.gov.                                                                                    information pursuant to the Protective Order in this
                                                                                                          as listed above, minus the dollar value
                                                  Those who choose not to submit                          of partial distributions of the 2010–13
                                                                                                                                                                        proceeding; the amounts are redacted from the
                                                  comments electronically should see                                                                                    public version of the Joint Motion and are disclosed
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                                                                                                                                                                        only to the parties in accordance with the terms of
                                                  ‘‘How to Submit Comments’’ in the                         1 Participants are: Motion Picture Association of           the settlement agreements.
                                                  Supplementary Information section                       America, Joint Sports Claimants, National                        3 The requested distributions represent partial

                                                  below for physical addresses and further                Association of Broadcasters and the Commercial                distributions of the 2010–13 Funds, but constitute
                                                  instructions. This notice and request is                Television Claimants, Music Claimants, Canadian               final distributions to the Music Claimants, except
                                                                                                          Claimants Group, Settling Devotional Claimants,               that Music claimants may share in the same
                                                  also posted on the agency’s Web site                    National Public Radio, Public Broadcasting Service            proportion in the event a future audit results in
                                                  (www.loc.gov/crb) and on                                and the Public Television Claimants, and                      additional deposits into any fund at issue in this
                                                  Regulations.gov (www.regulations.gov).                  Multigroup Claimants.                                         proceeding.



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Document Created: 2017-01-20 01:30:23
Document Modified: 2017-01-20 01:30:23
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionPublic notice.
ContactAnita Brown, Program Specialist, by telephone at (202) 707-7658 or by email at [email protected]
FR Citation82 FR 7878 

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