[Federal Register Volume 66, Number 191 (Tuesday, October 2, 2001)]
[Notices]
[Pages 50219-50220]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-24672]


=======================================================================
-----------------------------------------------------------------------

LIBRARY OF CONGRESS

Copyright Office

[Docket No. 2001-6 CARP CD 99]


Ascertainment of Controversy for the 1999 Cable Royalty Funds

AGENCY: Copyright Office, Library of Congress.

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

-----------------------------------------------------------------------

SUMMARY: The Copyright Office of the Library of Congress directs all 
claimants to royalty fees collected under the section 111 cable 
statutory license in 1999 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 Intention to Participate are due on 
October 16, 2001.

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 the Office of the General Counsel, 
James Madison Memorial Building, Room 403, First and Independence Ave., 
SE., Washington, DC 20540.

FOR FURTHER INFORMATION CONTACT: David O. Carson, General Counsel, or 
Tanya M. Sandros, 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, 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) of the Copyright 
Act, title 17 of the United States Code. See, e.g., Orders, Docket No. 
2000-6 CARP CD 98 (dated October 12, 2000) and Docket No. 99-7 CARP CD 
97 (dated October 18, 1999).

[[Page 50220]]

However, the Copyright Office must, prior to any distribution of the 
royalty fees, ascertain who the claimants are and the extent of any 
controversy over the distribution of the royalty fees.
    The CARP rules provide that:

    In the case of a royalty fee distribution proceeding, the 
Librarian of Congress shall, after the time period for filing 
claims, publish in the Federal Register a notice requesting each 
claimant on the claimant list to negotiate with each other a 
settlement of their differences, and to comment by a date certain as 
to the existence of controversies with respect to the royalty funds 
described in the notice. Such notice shall also establish a date 
certain by which parties wishing to participate in the proceeding 
must file with the Librarian a notice of intention to participate.

37 CFR 251.45(a). The Copyright Office may publish this notice on its 
own initiative, see, e.g., 64 FR 23875 (May 4, 1999); in response to a 
motion from an interested party, see, e.g., 65 FR 54077 (September 6, 
2000), or in response to a petition requesting that the Office declare 
a controversy and initiate a CARP proceeding. In this case, the Office 
has received a motion for a partial distribution of the 1999 cable 
royalty fees.
    On September 26, 2001, 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 the 1999 cable royalty fund. The Office will 
consider this motion after each interested party has been identified by 
filing the Notice of Intention to Participate 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 fees 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 1999 cable royalty fees.
    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 programming, religious programming, 
music programming, and Canadian programming. The Office seeks 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 the existence and extent of 
all Phase I and Phase II controversies by the end of the comment 
period. It will not consider any controversies that come to our 
attention after the close of that period.

2. Notice of Intention To Participate

    Section 251.45(a) of the rules, 37 CFR, requires that a Notice of 
Intention to Participate 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 65 FR 54077 (September 6, 2000); see also 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 Intention to Participate 
in this proceeding to comply with the following instructions.
    Each claimant that has a dispute over the distribution of the 1999 
cable royalty fees, either at Phase I or Phase II, shall file a Notice 
of Intention 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 Intention 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.
    Notices of Intention to Participate are due no later than October 
16, 2001. Failure to file a timely Notice of Intention to Participate 
may preclude a claimant or claimants from participating in a 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 Intention to Participate. 
The Motion of Phase I Claimants for Partial Distribution is available 
for inspection and copying in the Office of the General Counsel.

    Dated: September 27, 2001.
David O. Carson,
General Counsel.
[FR Doc. 01-24672 Filed 10-1-01; 8:45 am]
BILLING CODE 1410-33-P