[Federal Register Volume 69, Number 84 (Friday, April 30, 2004)]
[Notices]
[Pages 23821-23822]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-9834]


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LIBRARY OF CONGRESS

Copyright Office

[Docket No. 2000-2 CARP CD 93-97]


Distribution of 1993, 1994, 1995, 1996 and 1997 Cable Royalty 
Funds

AGENCY: Copyright Office, Library of Congress.

ACTION: Notice of termination of proceeding.

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SUMMARY: The Librarian of Congress is announcing the vacatur of his 
Order rejecting the initial and revised reports

[[Page 23822]]

of the Copyright Arbitration Royalty Panel (``CARP'') in the Phase II 
proceeding to determine the distribution of 1997 cable royalty funds in 
the syndicated programming category. The Librarian's Order as well as 
the initial and revised CARP reports are being vacated as moot because 
the parties have resolved their dispute.

FOR FURTHER INFORMATION CONTACT: David O. Carson, General Counsel, or 
William J. Roberts, Jr., Senior Attorney for Compulsory Licenses, P.O. 
Box 70977, Southwest Station, Washington, DC 20024, Telephone: (202) 
707-8380. Telefax: (202) 252-3423.

SUPPLEMENTARY INFORMATION: On October 17, 2000, the Librarian of 
Congress convened a Copyright Arbitration Royalty Panel (``CARP'') to 
resolve a dispute within the syndicated programming category between 
the Motion Picture Association of America (``MPAA'') and the 
Independent Producers Group (``IPG'') over the division of royalties 
collected in 1997 pursuant to 17 U.S.C. 111 for the retransmission of 
movies and syndicated television series by cable systems. 65 FR 60690 
(October 12, 2000). At the conclusion of the six-month arbitration 
period, the CARP delivered to the Librarian its initial report setting 
forth its determination of the distribution of the 1997 cable royalty 
funds. Because of flaws in the CARP's decision, the Librarian, upon the 
recommendation of the Register of Copyrights, rejected the initial 
report and remanded the case to the CARP with instructions to alter the 
allocation of royalties and to explain its decisionmaking process. See 
Order in Docket No. 2000-2 CARP 93-97 (dated June 5, 2001). On June 20, 
2001, the CARP delivered its revised report. On December 26, 2001, the 
Librarian issued an order identifying numerous flaws in the CARP's 
determination as well as in the cases presented by both IPG and MPAA. 
Because of these flaws, the Librarian concluded that no determination 
of the distribution of the 1997 cable royalties could be made based on 
the record presented to the CARP. Accordingly, he rejected the CARP's 
initial and revised reports and remanded the matter for a new 
proceeding before a new CARP. 66 FR 66433 (December 26, 2001).
    MPAA and IPG each appealed the Librarian's decision to the United 
States Court of Appeals for the District of Columbia Circuit. Motion 
Picture Association of America v. Librarian of Congress, No. 02-1033; 
Independent Producers Group v. Librarian of Congress, No. 02-1040. 
However, they have recently settled the dispute. As part of the 
settlement, it was agreed that the Librarian's December 26, 2001, Order 
would be vacated. On April 21, 2004, the Court of Appeals dismissed the 
appeals. In order to facilitate the settlement, the Librarian issued an 
order vacating as moot the December 26, 2001, Order as well as the CARP 
reports of April 16, 2001, and June 20, 2001.
    The text of the Order reads as follows:

Recommendation and Order

    On December 26, 2001, the Library published an Order announcing 
the Librarian of Congress's decision to reject the initial and 
revised reports of the Copyright Arbitration Royalty Panel 
(``CARP'') in this Phase II proceeding in the syndicated programming 
category for distribution of the 1997 cable royalty funds. The Order 
identified a number of flaws in the cases presented by both IPG and 
MPAA and in the determination made by the Copyright Arbitration 
Royalty Panel (``CARP''), and concluded that a distribution of 
royalties could not be made based on the current record. 
Accordingly, the Librarian remanded the matter for a new proceeding 
before a new CARP. Order, 66 FR 66433 (Dec. 26, 2001).
    Both parties, Independent Producers Group (``IPG'') and The 
Motion Picture Association of America, Inc. (``MPAA'') petitioned 
the United States Court of Appeals for the District of Columbia 
Circuit to review the Librarian's determination. Motion Picture 
Association of America v. Librarian of Congress, No. 02-1033; 
Independent Producers Group v. Librarian of Congress, 02-1040.
    The parties have now settled this dispute, making a remand for 
new proceedings unnecessary and making it possible to distribute the 
remaining funds that were in dispute. As part of the settlement, it 
has been agreed that the December 26, 2001 Order shall be vacated.
    Because the parties have settled their dispute, and therefore 
there is no reason to remand the matter for further proceedings 
before a new CARP, the Register recommends that the December 26, 
2001 Order be vacated as moot. Further, in light of the flaws in the 
determination made by the CARP as identified in the December 26, 
2001 Order, the CARP's initial and final determinations should also 
be vacated, to make clear that those determinations have no 
precedential value. The recommendation that the December 26, 2001 
Order be vacated is made in order to facilitate the settlement and 
because the matter is now moot; this recommendation should not be 
construed as a repudiation of the reasoning in the December 26, 2001 
Recommendation and Order.

Order of the Librarian

    Having duly considered the recommendation of the Register of 
Copyrights the Librarian accepts the recommendation in its entirety 
and orders that the December 26, 2001 Order, the April 16, 2001 
initial Report of the CARP, and the June 20, 2001 revised Report of 
the CARP are hereby VACATED as moot.

    In accordance with the Librarian's Order, this proceeding has been 
terminated.

    Dated: April 27, 2004.
David O. Carson,
General Counsel.
[FR Doc. 04-9834 Filed 4-29-04; 8:45 am]
BILLING CODE 1410-33-P