[Federal Register Volume 69, Number 250 (Thursday, December 30, 2004)]
[Notices]
[Pages 78482-78483]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-28605]


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LIBRARY OF CONGRESS

Copyright Office

[Docket No. 2004-9 CARP SRA]


Rate Adjustment for the Satellite Carrier Compulsory License

AGENCY: Copyright Office, Library of Congress.

ACTION: Notice of voluntary negotiation period.

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SUMMARY: The Copyright Office of the Library of Congress is announcing 
the voluntary negotiation period for the purpose of determining the 
royalty fees for analog signals to be paid by satellite carriers under 
the satellite carrier compulsory license.

DATES: The voluntary negotiation period commences on December 30, 2004 
and concludes on January 10, 2005.

ADDRESSES: If hand delivered by a private party, an original and five 
copies of voluntary agreements should be brought to Room LM-401 of the 
James Madison Memorial Building and the envelope should be addressed as 
follows: Office of the General Counsel/CARP, U.S. Copyright Office, 
James Madison Memorial Building, Room LM-401, 101 Independence Avenue, 
SE., Washington, DC 20559-6000 between 8:30 a.m. and 5 p.m. If 
delivered by a commercial courier, an original and five copies of 
voluntary agreements must be delivered to the Congressional Courier 
Acceptance Site located at 2nd and D Streets, NE. between 8:30 a.m. and 
4 p.m. The envelope should be addressed as follows: Office of the 
General Counsel/CARP, Room LM-403, James Madison Memorial Building, 101 
Independence Avenue, SE., Washington, DC. If sent by mail (including 
overnight delivery using U.S. Postal Service Express Mail), an original 
and five copies of voluntary agreements should be addressed to: 
Copyright Arbitration Royalty Panel (CARP), P.O. Box 70977, Southwest 
Station, Washington, DC. 20024. Voluntary agreements may not be 
delivered by means of overnight delivery services such as Federal 
Express, United Parcel Service, etc., due to delays in processing 
receipt of such deliveries.

FOR FURTHER INFORMATION CONTACT: David O. Carson, General Counsel, or 
Gina Giuffreda, Attorney Advisor, Copyright Arbitration Royalty Panel 
(CARP), P.O. Box 70977, Southwest Station, Washington, DC. 20024. 
Telephone: (202) 707-8380. Telefax: (202) 252-3423.

SUPPLEMENTARY INFORMATION:

[[Page 78483]]

Background

    The satellite carrier compulsory license establishes a statutory 
copyright licensing scheme for satellite carriers that retransmit 
television broadcast signals to satellite dish owners for their private 
home viewing. 17 U.S.C. 119. Congress created the license in 1988 with 
the passage of the Satellite Home Viewer Act of 1988. Congress 
reauthorized the satellite license for additional five-year periods in 
1994 and 1999, and the license was slated to expire on December 31, 
2004. However, Congress again reauthorized the satellite license for 
another five years with the passage of the Satellite Home Viewer 
Extension and Reauthorization Act of 2004 (``the 2004 Act'') (as part 
of the Consolidated Appropriations Act, 2005), Pub. L. 108-447, which 
was signed into law by the President on December 8, 2004.
    Satellite carriers pay royalties based on a flat, per-subscriber, 
per-month fee. These rates were initially set by Congress in the 
Satellite Home Viewer Act of 1988 and then later adjusted by a three-
person arbitration panel convened by the former Copyright Royalty 
Tribunal. 57 FR 19052 (May 1, 1992). When the license was reauthorized 
in 1994, Congress directed that the rates be adjusted by the Librarian 
of Congress using the system that replaced the Copyright Royalty 
Tribunal, namely, ad hoc Copyright Arbitration Royalty Panels 
(``CARPs'') administered by the Librarian of Congress and the Copyright 
Office. Accordingly, the Librarian adjusted the rates in 1997. 62 FR 
55742 (October 28, 1997). In the Satellite Home Viewer Improvement Act 
of 1999, which reauthorized the license for an additional five years, 
Congress reduced the rates set by the Librarian.
    The 2004 Act adopts the rates as reduced by Congress in 1999 but 
calls for the amendment of those rates to be paid by satellite carriers 
for the secondary transmission of the primary analog transmission of 
network stations and superstations. This notice begins the process 
mandated by the statute.

Voluntary Negotiation Period

    Sections 119(c)(1)(B) of the Copyright Act, 17 U.S.C., provides 
that ``[o]n or before January 2, 2005, the Librarian of Congress shall 
cause to be published in the Federal Register [notice] of the 
initiation of voluntary negotiation proceedings for the purpose of 
determining the royalty fee to be paid by satellite carriers * * * 
under subsection (b)(1)(B).'' This notice initiates the voluntary 
negotiation period.
    The statute provides that ``[w]ithin 10 days after publication in 
the Federal Register of a notice of the initiation of voluntary 
negotiation proceedings, parties who have reached a voluntary agreement 
may request that the royalty fees in that agreement be applied to all 
satellite carriers, distributors, and copyright owners without 
convening an arbitration proceeding.'' 17 U.S.C. 119(c)(1)(D)(ii)(I). 
In accordance with this provision, the voluntary negotiation period 
commences today, December 30, 2004, and concludes January 10, 2005.
    If a voluntary agreement is reached by the end of the negotiation 
period, the parties can request that the Librarian publish the 
agreement for notice and comment in accordance with section 
119(c)(1)(D)(ii)(II) and adopt the rates in the voluntary agreement if 
no objections are received from a party with a significant interest and 
an intention to participate in an arbitration proceeding. 17 U.S.C. 
119(c)(1)(D)(ii)(III). If an objection to the voluntary agreement is 
received or if parties are unable to reach a voluntary agreement, the 
statute dictates that the rates be determined under the current CARP 
system.\1\ Therefore, if a CARP proceeding becomes necessary, the 
Library must apply the rules and regulations of 37 CFR part 251. 
Consequently, should the parties be unable to reach a voluntary 
agreement by the end of the voluntary negotiation period or should a 
party with a significant interest and an intention to participate in an 
arbitration proceeding file an objection to the agreement, the Library 
will publish a subsequent notice calling for the filing of Notices of 
Intent to Participate.
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    \1\ On November 30, 2004, the President signed into law the 
Copyright Royalty and Distribution Act of 2004, Pub. L. 108-419, 
which eliminates the CARP system and replaces it with three 
permanent Copyright Royalty Judges. However, the 2004 Act calls for 
satellite royalty rates to be determined ``under chapter 8 as in 
effect on the day before the date of enactment of the Copyright 
Royalty and Distribution Act of 2004.'' 17 U.S.C. 119(c)(1)(F).

    Dated: December 27, 2004.
David O. Carson,
General Counsel.
[FR Doc. 04-28605 Filed 12-29-04; 8:45 am]
BILLING CODE 1410-33-P