[Federal Register Volume 65, Number 173 (Wednesday, September 6, 2000)]
[Notices]
[Pages 54077-54078]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-22786]


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LIBRARY OF CONGRESS

Copyright Office

[Docket No. 2000-6 CARP CD 98]


Ascertainment of Controversy for the 1998 Cable Royalty Funds

AGENCY: Copyright Office, Library of Congress.

ACTION: Notice with request for comments and notices of intention to 
participate.

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SUMMARY: The Copyright Office of the Library of Congress directs all 
claimants to royalty fees collected under the section 111 cable 
statutory license in 1998 to submit comments as to whether a Phase I or 
Phase II controversy exists as to the distribution of those fees, and a 
Notice of Intention to Participate in a royalty distribution 
proceeding.

DATES: Comments and Notices of Intent to Participate are due by October 
6, 2000.

ADDRESSES: If sent by mail, an original and five copies of written 
comments and a Notice of Intention to Participate should be addressed 
to: Copyright Arbitration Royalty Panel (CARP), P.O. Box 70977, 
Southwest Station, Washington, DC 20024. If hand delivered, an original 
and five copies should be brought to: Office of the General Counsel, 
James Madison Memorial Building, Room 403, First and Independence 
Avenue, SE, Washington, DC 20540.

FOR FURTHER INFORMATION CONTACT: David O. Carson, General Counsel, or 
William J. Roberts, Jr., Senior Attorney, Copyright Arbitration Royalty 
Panels, P.O. Box 70977, Southwest Station, Washington, DC 20024. 
Telephone (202) 707-8380. Telefax: (202) 252-3423.

SUPPLEMENTARY INFORMATION: Each year cable systems submit royalties to 
the Copyright Office for the retransmission to their subscribers of 
over-the-air broadcast signals. These royalties are, in turn, 
distributed in one of two ways to copyright owners whose works were 
included in a retransmission of an over-the-air broadcast signal and 
who timely filed a claim for royalties with the Copyright Office. The 
copyright owners may either negotiate the terms of a settlement as to 
the division of the royalty funds, or the Librarian of Congress may 
convene a Copyright Arbitration Royalty Panel (``CARP'') to determine 
the distribution of the royalty fees that remain in controversy. See 17 
U.S.C. chapter 8.
    During the pendency of any proceeding, however, the Librarian of 
Congress may distribute any amounts that are not in controversy, 
provided that sufficient funds are withheld to cover reasonable 
administrative costs and to satisfy all claims with respect to which a 
controversy exists under his authority set forth in section 
111(d)(4)(C) of the Copyright Act, title 17 of the United States Code. 
See, e.g., Order, Docket Nos. 96-7 CARP CD 93-94; 97-2 CARP CD 95; 98-2 
CARP CD 96 and 99-5 CARP CD 97 (dated October 18, 1999).
    On August 18, 2000, representatives of the Phase I claimant 
categories to which royalties have been allocated in prior cable 
distribution proceedings filed a motion with the Copyright Office for a 
partial distribution of 75% of the 1998 cable royalty fund. The Office 
will consider this motion after all interested parties have been 
identified by filing the Notices of Intention requested herein and had 
an opportunity to file responses to the motion.

1. Comments on the Existence of Controversies

    Before commencing 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 royalty funds and the 
extent of those controversies. 17 U.S.C. 803(d). Therefore, the 
Copyright Office is requesting comment on the existence and extent of 
any controversies, at Phase I and Phase II, as to the distribution of 
the 1998 cable funds.

[[Page 54078]]

    In Phase I of a cable royalty distribution, royalties are 
distributed to certain categories of broadcast programming that has 
been retransmitted by cable systems. The categories have traditionally 
been syndicated programming and movies, sports, commercial and 
noncommercial broadcaster-owned programing, religious programming, 
music, and Canadian programming. We seek comments as to controversies 
between these categories for royalty distribution.
    In Phase II of a cable royalty distribution, royalties are 
distributed to claimants within a program category. If a claimant 
anticipates a Phase II controversy, the claimant must state each 
program category in which he or she has an interest that has not, by 
the end of the comment period, been satisfied through a settlement 
agreement.
    The Copyright Office must be advised of all Phase I and Phase II 
controversies and the extent of those controversies by the end of the 
comment period. We will not consider any controversies that come to our 
attention after the close of that period.

2. Notice of Intention To Participate

    Those parties who have not settled their claims to the 1998 cable 
royalty fund and wish to participate in a CARP proceeding, either at 
Phase I or Phase II, to resolve the distribution must file a Notice of 
Intent to Participate. Notices of Intent to Participate are due no 
later than October 6, 2000. Failure to file a timely Notice of Intent 
to Participate may preclude a claimant or claimants from participating 
in a CARP proceeding.
    Section 251.45(a) of the rules, 37 CFR, requires that a Notice of 
Intent to Participate must be filed in order to participate in a CARP 
proceeding, but it does not prescribe the contents of the Notice. 
Recently, in another proceeding, the Library has been forced to address 
the issue of what constitutes a sufficient Notice and to whom it is 
applicable. See Orders in Docket No. 2000-2 CARP CD 93-97 (June 22, 
2000, and August 1, 2000). These rulings will result in a future 
amendment to Sec. 251.45(a) to specify the content of a properly filed 
Notice. In the meantime, the Office advises those parties filing 
Notices of Intent to Participate in this proceeding to comply with the 
following instructions.
    Each claimant that has a dispute over the distribution of the 1998 
cable royalty funds, either at Phase I or Phase II, shall file a Notice 
of Intent to Participate that contains the following: (1) the 
claimant's full name, address, telephone number, and facsimile number 
(if any); (2) identification of whether the Notice covers a Phase I 
proceeding, a Phase II proceeding, or both; and (3) a statement of the 
claimant's intention to fully participate in a CARP proceeding.
    Claimants may, in lieu of individual Notices of Intent to 
Participate, submit joint Notices. In lieu of the requirement that the 
notice contain the claimant's name, address, telephone number and 
facsimile number, a joint notice shall provide the full name, address, 
telephone number, and facsimile number (if any) of the person filing 
the notice and it shall contain a list identifying all the claimants 
that are parties to the joint Notice. In addition, if the joint Notice 
is filed by counsel or a representative of one or more of the claimants 
identified in the joint Notice, the joint Notice shall contain a 
statement from such counsel or representative certifying that, as of 
the date of submission of the joint Notice, such counsel or 
representative has the authority and consent of the claimants to 
represent them in the CARP proceeding.

3. Motion of Phase I Claimants for Partial Distribution

    A claimant who is not a party to the motion, but who files a Notice 
of Intention to Participate, may file a response to the motion no later 
than the due date set forth in this notice for comments on the 
existence of controversies and the Notices of Intent to Participate. 
The Motion of Phase I Claimants for Partial Distribution is available 
for copying in the Office of the General Counsel and may be found on 
the Copyright Office website at http://www.loc.gov/copyright/carp/cablepetition.pdf.

    Dated: August 30, 2000.
David O. Carson,
General Counsel.
[FR Doc. 00-22786 Filed 9-5-00; 8:45 am]
BILLING CODE 1410-33-P