[Federal Register Volume 67, Number 14 (Tuesday, January 22, 2002)]
[Notices]
[Pages 2912-2914]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-1543]


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LIBRARY OF CONGRESS

Copyright Office

[Docket No. 2001-7 CARP SD 2000]


Ascertainment of Controversy for the 2000 Satellite Royalty Funds

AGENCY: Copyright Office, Library of Congress.

ACTION: Request for 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 119 statutory 
license in 2000 to

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submit comments as to whether a Phase I or a Phase II controversy 
exists as to the distribution of these fees, and a Notice of Intention 
to Participate in a royalty distribution proceeding. Parties who submit 
a Notice of Intention to Participate may also submit comments on the 
Public Broadcasting Service's motion for a partial distribution and the 
scheduling of a CARP proceeding.

DATES: Comments and Notices of Intention to Participate are due no 
later than February 1, 2002.

ADDRESSES: If sent by mail, an original and five copies of written 
comments 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 for Compulsory Licenses, 
Copyright Arbitration Royalty Panels, P.O. Box 70977, Southwest 
Station, Washington, D.C. 20024. Telephone (202) 707-8380. Telefax: 
(202) 252-3423.

SUPPLEMENTARY INFORMATION: Each year satellite carriers submit 
royalties to the Copyright Office for the retransmission of over-the-
air broadcast signals to their subscribers. 17 U.S.C. 119. These 
royalties are, in turn, distributed to copyright owners whose works 
were included in a retransmission of an over-the-air broadcast signal 
and for whom a claim for royalties was timely filed with the Copyright 
Office. The copyright owners may either negotiate the terms of a 
settlement as to the division of the royalty fees, 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.
    On October 30, 2001, the Library of Congress published a Notice in 
the Federal Register requesting comments from interested parties as to 
the existence of controversies over the distribution of 2000 satellite 
royalty fees collected under 17 U.S.C. 119; 66 FR 54789 (October 30, 
2001). The Library requested that interested parties submit their 
comments, along with Notices of Intention to Participate in the 2000 
distribution proceeding, by November 29, 2001. In addition, the Library 
sought comment on a petition for royalty distribution filed by the 
Public Broadcasting Service (``PBS''), seeking collection of 2000 and 
2001 royalties submitted under 17 U.S.C. 119(b) for the satellite feed.
    On November 6, 2001, the Motion Picture Association of America, 
Inc. (``MPAA'') filed a motion seeking an extension of the November 29, 
2001, deadline to January 15, 2002. MPAA asserted that it could not 
submit its Notice of Intention to Participate until it had an 
opportunity to examine the list of claimants who had filed for the 2000 
satellite funds. This list was not made available to the public until 
early December. Consequently, in response to the MPAA motion, the 
Office suspended the November 29, 2001, date for filing comments and 
Notices of Intention to Participate and requested comments on MPAA's 
motion. See 66 FR 58761 (November 23, 2001).
    Three parties filed comments in response to this notice: the Public 
Broadcasting Service, the MPAA, and the Joint Sports Claimants 
(``JSC''). In its comment, JSC stated that it was prepared to file its 
Notices of Intention to Participate at any time and provided additional 
comment on the scheduling of the proceeding. Similarly, PBS had no 
apparent objection to the MPAA request but it did ask that the date for 
filing the requisite notices not be extended beyond the January 15, 
2002 date identified by MPAA in its motion and that the PBS motion for 
a distribution of the disputed funds be expedited upon the filing of 
the notices.
    MPAA, for its part, acknowledged that with the release of the 2000 
satellite claimant list it was now able to prepare its Notice of 
Intention to Participate. However, it argued that the Office should 
give the parties a minimum of 30-45 days after the release of the list 
to prepare and file the notices and suggested January 25, 2002, as an 
appropriate date for filing the Notices of Intention. MPAA also offered 
comments on scheduling.\1\
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    \1\ MPAA's and JSC's comments on scheduling were unsolicited and 
beyond the scope of the November 23, 2001 notice and, thus, will not 
be considered at this time.
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    Notices of Intention to Participate. Since the Notices of Intention 
to Participate must list the name of each copyright owner on whose 
behalf the notice is being filed, the Office agrees that interested 
parties should have adequate time to review the official list of 
satellite claimants for 2000 before being required to file a Notice of 
Intention to Participate in a proceeding concerning the distribution of 
the 2000 satellite royalty fees. Moreover, interested parties must have 
adequate notice of the date for filing such notices. Consequently, the 
Office is setting a later date for filing a Notice of Intention to 
Participate in a proceeding to decide the distribution of the 2000 
satellite royalty fees than that requested in the MPAA comment. Notices 
of Intention to Participate in such a proceeding shall be due no later 
than February 1, 2002.
    Section 251.45(a) of title 37 of the Code of Federal Regulations 
requires that parties file a Notice of Intention to Participate in a 
CARP proceeding, but it does not prescribe the contents of the notice. 
The Office, however, has addressed 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); see also 
65 FR 54077 (Sept. 6, 2000). In light of these rulings, 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 2000 
satellite 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.
    Motion of Public Broadcasting Service for Distribution of PBS 
National Satellite Feed Royalty Funds for Calendar Years 2000 and 2001. 
On June 21, 2001, PBS filed a motion for distribution of PBS national 
satellite feed royalty fees for calendar years 2000 and 2001 and sent a 
copy of the motion to those entities that have participated

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in past satellite distribution proceedings. In an earlier notice, the 
Office determined that, as a matter of law, consideration of a 
distribution of the 2001 satellite royalty fees was premature. See 66 
FR 54789 (October 30, 2001). Consequently, the Office stated that it 
would consider the PBS motion only so far as it concerns the 
distribution of the 2000 satellite royalty fees and only after all 
interested parties have been identified by filing the Notices of 
Intention requested herein and such parties have had an opportunity to 
respond to the motion. Id.
    Parties who file Notices of Intention to Participate in this 
proceeding in accordance with this notice may, at this time, file 
comments on the PBS motion. The Copyright Office has posted the PBS 
motion for distribution of PBS national satellite feed royalty funds 
for 2000-2001 on the Copyright Office website at: (http://www.loc.gov/copyright/carp/pbsmotion.pdf). The motion is also available for copying 
in the Office of the General Counsel along with any additional 
responsive filings that have been filed in the Office of the General 
Counsel.
    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, any comments filed in response to the PBS 
motion as to the distribution of the 2000 satellite fees must address 
the existence and extent of any controversies at Phase I and Phase II.
    In Phase I of a satellite royalty distribution, royalties are 
distributed to certain categories of broadcast programming that have 
been retransmitted by satellite carriers. The categories have 
traditionally been syndicated programming and movies, sports, 
commercial and noncommercial broadcaster-owned programming, religious 
programming, and music programming. The Office seeks comments as to 
controversies between these categories for royalty distribution.
    In Phase II of a satellite 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 its 
attention after the close of that period.
    Schedule of CARP proceeding. Outstanding controversies concerning 
the distribution of 1996, 1997, 1998, and 1999 satellite royalty fees 
still remain. Before setting a schedule for a CARP proceeding to 
resolve any controversies over the distribution of the 2000 satellite 
royalty fees at issue in the PBS motion, the Office must first decide 
whether to resolve the remaining controversies in the preceding years 
or set these aside and focus on the distribution of the 2000 satellite 
royalty fees as requested by PBS. Therefore, the Office invites 
comments from all interested parties on whether to continue to conduct 
distribution proceedings in a sequential manner as has been the 
practice historically or to set aside the unresolved controversies in 
the earlier years and proceed immediately to the controversies 
surrounding the 2000 satellite royalty fees.

    Dated: January 16, 2002.
David O. Carson,
General Counsel.
[FR Doc. 02-1543 Filed 1-18-02; 8:45 am]
BILLING CODE 1410-33-P