82 FR 7878 - Notice of Intent To Audit

LIBRARY OF CONGRESS
Copyright Royalty Board

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

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, 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