[Federal Register Volume 68, Number 70 (Friday, April 11, 2003)]
[Notices]
[Pages 17838-17839]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-8936]


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LIBRARY OF CONGRESS

Copyright Office

[Docket No. 2001-8 CARP CD 98-99]


Distribution of 1998 and 1999 Cable Royalty Fund

AGENCY: Copyright Office, Library of Congress.

ACTION: Initiation of arbitration and announcement of schedule.

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SUMMARY: The Copyright Office of the Library of Congress is announcing 
the initiation of and schedule for the 180-day arbitration period for 
the Phase I distribution of royalties collected under the cable 
statutory license of the Copyright Act for the 1998 and 1999 calendar 
years.

EFFECTIVE DATE: April 11, 2003.

ADDRESSES: All hearings and meetings for the proceeding to distribute 
section 111 royalties shall take place in the James Madison Memorial 
Building, Room LM-414, First and Independence Avenues, SE., Washington, 
DC 20540.

FOR FURTHER INFORMATION CONTACT: David O. Carson, General Counsel, or 
Susan N. Grimes, CARP Specialist, P.O. Box 70977, Southwest Station, 
Washington, DC 20024. Telephone: (202) 707-8380. Telefax: (202) 252-
3423.

SUPPLEMENTARY INFORMATION 

Background

    This notice fulfills the requirement of 37 CFR 251.72 and 17 U.S.C. 
111(d)(4)(B). Section 251.72 of the CARP rules provides that:

    If the Librarian determines that a controversy exists among 
claimants to either cable, satellite carrier, or digital audio 
recording devices and media royalties, the Librarian shall publish 
in the Federal Register a declaration of controversy along with a 
notice of initiation of an arbitration proceeding. Such notice 
shall, to the extent feasible, describe the nature, general 
structure and schedule of the proceeding.

37 CFR 251.72.

    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. 17 U.S.C. 111(d)(4)(B).
    On September 6, 2000, the Library of Congress published a notice in 
the Federal Register seeking comment as to the existence of 
controversies for the distribution of the 1998 cable royalties. 65 FR 
54077 (September 6, 2000). The parties to the distribution reported 
both Phase I and Phase II controversies and filed their Notices of 
Intent to Participate. On October 2, 2001, the Library published a 
Notice in the Federal Register seeking comments as to the existence of 
controversies for the distribution of 1999 cable royalties. 66 FR 50219 
(October 2, 2001). The parties to this distribution reported Phase I 
and Phase II controversies as well and filed their Notices of Intent to 
Participate. By Order dated February 20, 2002, the Library consolidated 
the distribution of the 1998 and 1999 cable royalties into a single 
proceeding before a single CARP. Order in Docket No. 2001-8 CARP CD 98-
99 (February 20, 2002).
    Of the eight parties that filed Notices of Intent to Participate in 
this consolidated Phase I distribution proceeding, two parties, 
National Public Radio and the Devotional Claimants Group, have settled. 
The parties that remain are the Joint Sports Claimants, the Music 
Claimants, the Program Suppliers, the Canadian Claimants, the National 
Association of Broadcasters on behalf of commercial broadcasters, and 
the Public Television Claimants on behalf of noncommercial 
broadcasters. These parties have filed their written direct cases 
setting forth their requested distribution percentages, and the Library 
has conducted discovery on the written direct cases under 37 CFR 
251.45. The cases are now ready for proceeding before a CARP under 
chapter 8 of the Copyright Act.

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 Michael Wolf (Chairperson)
The Honorable Jeffrey Gulin
The Honorable Michael Young

[[Page 17839]]

Initiation of the Proceeding

    Pursuant to Sec.  251.72 of the CARP rules, the Librarian is 
formally announcing the existence of a Phase I controversy as to the 
distribution of the 1998 and 1999 cable royalty funds. Any Phase II 
controversies will be resolved in a separate CARP proceeding.
    This Phase I proceeding commences on April 24, 2003, and runs for a 
period of 180 days. The arbitrators shall file their written report 
with the Librarian on or before October 21, 2003, in accordance with 
Sec.  251.53 of the CARP rules.

Schedule for the Proceeding

    Section 251.11(b) of the CARP rules provides that:

    At the beginning of each proceeding, the CARP shall develop the 
original schedule of the proceeding which shall be published in the 
Federal Register at least seven calendar days in advance of the 
first meeting. Such announcement shall state the times, dates, and 
place of the meetings, the testimony to be heard, whether any of the 
meetings, or any portion of a meeting, is to be closed, and if so, 
which ones, and the name and telephone number of the person to 
contact for further information.

This notice fulfills the requirements of the rule.

    The following is the schedule of the proceeding:

Opening Statements: April 24, 2003.
Presentation of the Direct Cases: April 24-June 11, 2003.

    Witnesses for the Joint Sports Claimants:

    April 24-25, 28-30, May 1, 2003: Paul Tagliabue, James Trautman, 
Robert Crandall, Thomas Hazlett, Michael Eagan, Judith Allan, Allan 
Selig, June Travis.

    Witnesses for the National Association of Broadcasters:

    May 6-9, 2003: Richard Ducey, Mark Fratrik, Marcellus Alexander, 
Jr., Laurence DeFranco, Gregory Rosston.

    Witnesses for Public Television Claimants:

    May 13-15, 2003: John Wilson, John Fuller, Leland Johnson.

    Witnesses for Music Claimants:

    May 16, 19-21, 2003: Seth Saltzman, W.G. ``Snuffy'' Walden, Jeffrey 
Lyons, Frank Krupit, Peter Boyle.

    Witnesses for Canadian Claimants:

    May 22-23, 28, 2003: Janice de Freitas, Andrea Wood, Lucy Medeiros, 
David Bennett, Debra Ringold.

    Witnesses for Program Suppliers:

    June 2-5, 9-11, 2003: Jack Valenti, Babe Winkelman, Marsha Kessler, 
Howard Green, Carl Carey, Jonda Martin, Paul Lindstrom, Paul Donato, 
Arthur Gruen, Robert Thompson.

Filing of Written Rebuttal Testimony: June 20, 2003.
Hearings on Discovery Disputes: July 2, 2003.
    Presentation of Rebuttal Cases: July 7-19, 2003 (includes 
Saturdays).

Filing of Proposed Findings of Fact and Conclusions of Law: August 22, 
2003.
Filing of Replies to Proposed Findings of Fact and Conclusions of Law: 
September 12, 2003.
Oral Argument: TBA.
Close of 180-day period: October 21, 2003.

Hearings will begin at 10 a.m. on April 24, 2003. Thereafter, all 
hearings will begin at 9 a.m. At this time, none of the parties have 
moved for closed hearings. Further refinements to the schedule will be 
announced in open meetings and issued as orders to the parties in the 
proceeding. All changes will be noted in the docket file of the 
proceeding and are open to public inspection.

    Dated: April 7, 2003.
David O. Carson,
General Counsel.
[FR Doc. 03-8936 Filed 4-10-03; 8:45 am]
BILLING CODE 1410-33-P