[Federal Register Volume 63, Number 181 (Friday, September 18, 1998)]
[Notices]
[Page 49928]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-24985]


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LIBRARY OF CONGRESS

Copyright Office
[Docket No. 98-2 CARP CD 96]


Ascertainment of Controversy for 1996 Cable Royalty Funds

AGENCY: Copyright Office, Library of Congress.

ACTION: Notice with request for comments.

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SUMMARY: The Copyright Office of the Library of Congress directs all 
claimants to royalty fees collected for secondary transmission by cable 
systems in 1996 to submit comments as to whether a Phase I or a Phase 
II controversy exists as to the distribution of these funds.

DATES: Comments are due October 19, 1998.

ADDRESSES: If sent by mail, an original and five copies of written 
comments and a Notice of Intent to Participate should be addressed to: 
Copyright Arbitration Royalty Panel (CARP), PO Box 70977, Southwest 
Station, Washington, DC 20024. If hand-delivered, an original and five 
copies of written comments and a Notice of Intent to Participate should 
be brought to: Office of the Copyright General Counsel, James Madison 
Memorial Building, LM Room 403, First and Independence Avenue, SE, 
Washington, DC 20559-6000.

FOR FURTHER INFORMATION CONTACT: David O. Carson, General Counsel, or 
Tanya M. Sandros, Attorney Advisor, Copyright Arbitration Royalty 
Panels, PO Box 70977, Southwest Station, Washington, DC 20024. 
Telephone: (202) 707-8380. Telefax: (202) 707-8366.

SUPPLEMENTARY INFORMATION: Each year, cable systems submit royalties to 
the U.S. Copyright Office under a statutory license which allows cable 
systems to retransmit broadcast signals to their subscribers. 17 U.S.C. 
111. These royalties are, in turn, distributed in one of two ways to 
copyright owners whose works were included in a cable system's 
secondary transmission and who timely filed a claim with the Copyright 
Office.
    These copyright owners may either negotiate a settlement agreement 
among themselves as to the distribution of the royalty fees, or the 
Librarian of Congress may convene an ad hoc Copyright Arbitration 
Royalty Panel (CARP) to determine the final distribution of the royalty 
fees which remain in controversy. See 17 U.S.C. chapter 8. The 
Copyright Act also allows the copyright owners to receive a partial 
distribution of the royalty fees prior to the final determination so 
long as sufficient funds are withheld from distribution ``to satisfy 
all claims with respect to which a controversy exists.'' 17 U.S.C. 
111(d)(4)(C).
    Accordingly, on September 3, 1998, the ``representatives of the 
Phase I claimant categories to which royalties have been allocated in 
prior distribution proceedings'' filed a motion for partial 
distribution of 75% of the 1996 cable royalties with the Copyright 
Office. However, before beginning a distribution proceeding or making a 
partial distribution, the Librarian of Congress must first ascertain 
whether a controversy exists as to the distribution of the funds. 17 
U.S.C. 803(c).
    For these reasons, the Office is requesting comment on the 
existence of any controversies as to the distribution of the 1996 cable 
royalties. The Office also requests that those claimants intending to 
participate in the 1996 distribution proceeding file a Notice of Intent 
to Participate, noting whether they anticipate participating in a Phase 
I proceeding, a Phase II proceeding, or both.
    In a Phase I proceeding, the arbitrators ascertain the distribution 
of royalties among the categories of broadcast programming represented 
in the proceeding, and in a Phase II proceeding, the arbitrators settle 
disputes between claimants within a particular category concerning the 
distribution of royalty fees within the group. If a claimant 
anticipates a Phase II controversy, the claimant must state each 
program category in which he or she has an interest which by the end of 
the comment period has not yet been satisfied by private agreement.
    Participants must advise the Office of the existence of all 
controversies, Phase I or Phase II, by the end of the comment period. 
The Office will not consider controversies which come to its attention 
after the close of the comment period. Failure to file a timely Notice 
of Intent to Participate shall also preclude a party from participating 
in this proceeding.

    Dated: September 14, 1998.
Marybeth Peters,
Register of Copyrights.
[FR Doc. 98-24985 Filed 9-17-98; 8:45 am]
BILLING CODE 1410-33-P