[Federal Register Volume 68, Number 156 (Wednesday, August 13, 2003)]
[Notices]
[Pages 48415-48417]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-20658]


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

LIBRARY OF CONGRESS

Copyright Office

[Docket No. 2003-2 CARP CD 2001]


Ascertainment of Controversy for the 2001 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 for calendar year 2001 under the 
cable statutory license 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 
September 12, 2003.

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 Copyright 
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 
Tanya M. Sandros, Senior Attorney,

[[Page 48416]]

Copyright Arbitration Royalty Panel (CARP), 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 television and radio 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 for 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. 2002-8 CARP CD 
2000 (dated December 4, 2002), Docket No. 2001-6 CARP CD 99 (dated 
October 17, 2001), Docket No. 2000-6 CARP CD 98 (dated October 12, 
2000) and Docket No. 99-5 CARP CD 97 (dated October 18, 1999). 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 for 
partial distribution from an interested party, see, e.g., 67 FR 55885 
(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 2001 cable royalty fees.
    On July 31, 2003, 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 2001 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 has 
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 2001 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 the existence and extent of 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 and the extent of the controversy.
    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.

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. In a 
prior proceeding, the Library was 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 section 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 2001 
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, facsimile number (if 
any), and e-mail address (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, 
facsimile number, and e-mail address, a joint Notice shall provide the 
full name, address, telephone number, facsimile number (if any), and e-
mail address (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 that are parties to 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 must be received in the Office 
of the Copyright General Counsel no later than 5 p.m. on September 12, 
2003.

3. Motion of Phase I Claimants for Partial Distribution

    A claimant who is not a party to the motion may file a response to 
the motion no later than the due date set forth in this Notice, 
provided that the respondent files a Notice of Intention to Participate 
in this proceeding in accordance with this Notice.
    The Motion of Phase I Claimants for Partial Distribution is posted 
on the

[[Page 48417]]

Copyright Office Web site (http://www.copyright.gov/carp/phase1motion.pdf) and is available for copying in the Office of the 
Copyright General Counsel.

    Dated: August 7, 2003.
Marilyn J. Kretsinger,
Associate General Counsel.
[FR Doc. 03-20658 Filed 8-12-03; 8:45 am]
BILLING CODE 1410-33-P