[Federal Register Volume 62, Number 105 (Monday, June 2, 1997)]
[Notices]
[Pages 29742-29743]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-14305]


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LIBRARY OF CONGRESS

Copyright Office
[Docket No. 96-5 CARP DSTRA]


Determination of Statutory License Rates and Terms for Certain 
Digital Subscription Transmissions of Sound Recordings

AGENCY: Copyright Office, Library of Congress.

ACTION: Initiation of arbitration.

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SUMMARY: The Librarian of Congress is announcing initiation of the 180-
day arbitration period for determination of statutory license rates and 
terms for certain digital subscription transmissions of sound 
recordings.

EFFECTIVE DATE: June 2, 1997.

ADDRESSES: All hearings and meetings for the section 114 statutory 
license proceeding shall take place in the James Madison Memorial 
Building, Room 414, First and Independence Avenue, S.E., Washington, 
D.C. 20540.

FOR FURTHER INFORMATION CONTACT: William Roberts, Senior Attorney, or 
Tanya Sandros, Attorney Advisor, P.O. Box 70977, Southwest Station, 
Washington, D.C. 20024. Telephone (202) 707-8380. Telefax (202) 707-
8366.

SUPPLEMENTARY INFORMATION:

Background

    This notice fulfills the requirement of 37 C.F.R. 251.64 and 17 
U.S.C. 803(a)(1). Section 251.64 of the CARP rules, 37 C.F.R., provides 
that:

    After the end of the 45-day precontroversy discovery period, and 
after the Librarian has ruled on all motions and objections filed 
under Sec. 251.45, the Librarian will determine the sufficiency of 
the petition, including, where appropriate, whether one or more of 
the petitioners' interests are ``significant.'' If the Librarian 
determines that a petition is significant, he or she will cause to 
be published in the Federal Register a declaration of a controversy 
accompanied by a notice of initiation of an arbitration proceeding.

    On December 1, 1995, the Library of Congress published a notice, 
pursuant to 17 U.S.C. 114(f)(1), initiating a voluntary negotiation 
period for terms and rates for the 17 U.S.C. 114 statutory license. 60 
FR 61655 (December 1, 1995). No voluntary agreements were reached.
    On June 4, 1996, the Library received a petition from the Recording 
Industry Association of America (``RIAA''), in accordance with 17 
U.S.C. 114(f)(2), to initiate an arbitration proceeding under chapter 8 
of the Copyright Act for purposes of establishing the terms and rates 
of the section 114 license. RIAA asserted that it has a significant 
interest in such a proceeding because it is the principal trade 
association of the recording industry which creates, markets, and 
distributes approximately 90% of all legitimate sound recordings sold 
in the United States.
    After the filing of this petition, the Library conducted a 
precontroversy discovery period under Sec. 251.45 of the rules. See, 61 
FR 40464 (August 2, 1996); Order in Docket No. 96-5 CARP DSTRA 
(September 18, 1996); Order in Docket No. 96-5 CARP DSTRA (November 27, 
1996). The precontroversy discovery period is complete, and the 
Librarian has ruled upon all Sec. 251.45 motions and objections.

Determination of Petitioner's Significant Interest in Proceeding

    The Librarian has considered the petition of the RIAA and 
determines that RIAA has a significant interest in a CARP proceeding to 
establish the rates and terms of the section 114 license. RIAA is the 
principal trade association of the recording industry in the United 
States, and it is this industry that will collect royalties under the 
section 114 license. Further, the former Copyright Royalty Tribunal 
recognized that RIAA had a significant interest in copyright compulsory 
license rate proceedings affecting the recording industry. See, 
Recording Industry Association of America v. Copyright Royalty 
Tribunal, 662 F.2d 1 (D.C. Cir. 1981) (17 U.S.C. 115 license). 
Consequently, the Librarian determines that RIAA has a significant 
interest in this proceeding within the meaning of 17 U.S.C. 803(a)(1).

Selection of Arbitrators

    In accordance with Sec. 251.6 of the CARP rules, the arbitrators 
have been selected for this proceeding. They are:

The Honorable Lenore G. Ehrig (Chairperson)
The Honorable Thomas A. Fortkort
The Honorable Sharon T. Nelson

Initiation of Proceeding

    Pursuant to Sec. 251.64 of the CARP rules, the Librarian is 
formally announcing the existence of a controversy as to the 
establishment of rates and terms for certain digital subscription 
transmissions, 17 U.S.C. 114(f)(2), and is initiating an arbitration 
proceeding under chapter 8 of title 17 to resolve the determination. 
The arbitration proceeding commences on June 2, 1997, and runs for a 
period of 180 days. The arbitrators shall file their written report 
with the Librarian by November 28, 1997, the end of the 180 day period, 
in accordance with Sec. 251.53 of the rules.
    A meeting between the participants in the rate adjustment 
proceeding and the arbitrators shall take place on Tuesday, June 3, 
1997, at 1:30 p.m. at the Library of Congress, James Madison Building, 
LM 414, First and Independence Avenue, S.E., Washington, D.C., to 
discuss the hearing schedule, arbitrator billing and payment, and any 
other procedural matters. The meeting is open to the public. Copies of 
the hearing schedule, once finalized, will be available at the 
Copyright Office upon request.


[[Page 29743]]


    Dated: May 28, 1997.
Marybeth Peters,
Register of Copyrights.
[FR Doc. 97-14305 Filed 5-30-97; 8:45 am]
BILLING CODE 1410-33-P