[Federal Register Volume 68, Number 194 (Tuesday, October 7, 2003)]
[Rules and Regulations]
[Pages 57814-57815]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-25381]


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LIBRARY OF CONGRESS

Copyright Office

37 CFR Part 260

[Docket No. 2001-1 CARP DSTRA2]


Determination of Reasonable Rates and Terms for the Digital 
Performance of Sound Recordings by Preexisting Subscription Services

AGENCY: Copyright Office, Library of Congress.

ACTION: Final rule: technical amendment.

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SUMMARY: The Copyright Office of the Library of Congress is making a 
non-substantive technical amendment to its final regulations adjusting 
the royalty rates and terms under the Copyright Act for the statutory 
license for the use of sound recordings by preexisting subscription 
services for the period January 1, 2002, through December 31, 2007.

DATES: Effective Date: August 4, 2003.
    Applicability Date: The regulations apply to the license period 
January 1, 2002 through December 31, 2007.

FOR FURTHER INFORMATION CONTACT: David O. Carson, General Counsel, or 
Tanya M. Sandros, Senior Attorney, Copyright Arbitration Royalty Panel, 
P.O. Box 70977, Southwest Station, Washington, D.C. 20024. Telephone: 
(202) 707-8380. Telefax: (202) 252-3423.

SUPPLEMENTARY INFORMATION: Section 106(6) of the Copyright Act, title 
17 of

[[Page 57815]]

the United States Code, gives copyright owners of sound recordings an 
exclusive right to perform their copyrighted works publicly by means of 
a digital audio transmission. This right is limited by section 114(d), 
which allows certain noninteractive digital audio services to make 
digital transmissions of a sound recording under a compulsory license, 
provided that the services pay a reasonable royalty fee and comply with 
the terms of the statutory license. Moreover, these services may make 
any necessary ephemeral reproductions to facilitate the digital 
transmission of the sound recording under a second license set forth in 
section 112(e) of the Copyright Act.
    On June 18, 2003, the Copyright Office published final regulations 
effectuating an agreement on the terms that would govern SoundExchange 
\1\ when it functions as the designated agent for the purpose of 
receiving royalty payments and statements of account from nonexempt 
subscription digital transmission services for transmissions of sound 
recordings made under a statutory license prior to January 1, 2002. 68 
FR 36469 (June 18, 2003). Pursuant to the agreement, the Office amended 
Sec.  260.7 by removing the word ``fees'' and replacing it with the 
word ``payments.'' 68 FR at 36470.
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    \1\ SoundExchange is an unincorporated division of the Recording 
Industry Association of America, Inc. that administers statutory 
licenses.
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    On July 3, 2003, the Copyright Office published final regulations 
implementing an agreement to adjust the royalty rates and terms for the 
section 114 license for the use of sound recordings by preexisting 
subscription services for the current license period--January 1, 2002, 
through December 31, 2007. 68 FR 39837 (July 3, 2003). Pursuant to the 
second agreement, the Office amended Sec.  260.7 once again; however, 
the amendatory language did not reflect the aforementioned amendment 
made on June 18. As a result, the intended amendment to the final 
clause of Sec.  260.7 could not be effectuated. The technical amendment 
published today rectifies this oversight, correctly identifying the 
language being amended.

List of Subjects in 37 CFR Part 260

    Copyright, Digital audio transmissions, Performance right, Sound 
recordings.

Final Regulation

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In consideration of the foregoing, the Copyright Office amends part 260 
of 37 CFR as follows:

PART 260--RATES AND TERMS FOR PREEXISTING SUBSCRIPTION SERVICES' 
DIGITAL TRANSMISSIONS OF SOUND RECORDINGS AND THE MAKING OF 
EPHEMERAL PHONORECORDS

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1. The authority citation for part 260 continues to read as follows:

    Authority: 17 U.S.C. 114, 801(b)(1).


Sec.  260.7  [Amended]

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2. Section 260.7 is amended by removing ``the cost of the 
administration of the collection and distribution of the royalty 
payments'' and adding ``any costs deductible under 17 U.S.C. 
114(g)(3)'' in its place.

    Dated: September 5, 2003.
Marybeth Peters,
Register of Copyrights.
James H. Billington,
The Librarian of Congress.
[FR Doc. 03-25381 Filed 10-6-03; 8:45 am]
BILLING CODE 1410-33-P