[Federal Register Volume 70, Number 47 (Friday, March 11, 2005)]
[Notices]
[Pages 12242-12243]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-4842]


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LIBRARY OF CONGRESS

Copyright Office

[Docket No. 2005-3 CARP]


Notice of Intent to Audit

AGENCY: Copyright Office, Library of Congress.

ACTION: Public notice.

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SUMMARY: The Copyright Office of the Library of Congress is announcing 
receipt of a notice of intent to audit DMX Music, Inc., for its 
transmissions of sound recordings to business establishments made under 
an exemption to the digital performance right. This audit intends to 
review transmissions to business establishments made by DMX Music, 
Inc., for the years 2002, 2003, and 2004.

FOR FURTHER INFORMATION CONTACT: Tanya M. Sandros, Associate General 
Counsel, or Abioye E. Oyewole, CARP Specialist, Copyright Arbitration 
Royalty Panel (CARP), P.O. Box 70977, Southwest Station, Washington, DC 
20024-0977. Telephone: (202) 707-8380. Telefax: (202) 707-3423.

SUPPLEMENTARY INFORMATION: Section 106(6) of the Copyright Act, title 
17 of the United States Code, gives the copyright owner of a sound 
recording the right to perform the sound recording publicly by means of 
a digital audio transmission, subject to certain limitations. Among 
these limitations is an exemption from the digital performance right 
for services making digital transmissions of sound recordings to a 
business establishment for use in the ordinary course of its business 
(henceforth, ``Business Establishment Services''), provided that two 
conditions are met: 1) the business recipient does not retransmit the 
transmissions outside of its premises or the immediate surrounding 
vicinity and, 2) the transmissions do not exceed the sound recording 
performance complement. While Business Establishment Services do not 
pay royalty fees for the right to transmit the sound recording, they do 
make ephemeral phonorecords under a statutory license, see 17 U.S.C. 
112(e), to facilitate the transmission of the sound recordings. Use of 
this license requires the Business Establishment Service to make 
payments of royalty fees to and file reports of sound recording 
performances with SoundExchange, a collecting rights entity that was 
designated by the Librarian of Congress to collect and distribute 
royalty fee payments made under section 112(e). See 69 FR 5693 
(February 6, 2004) and 69 FR 11515 (March 11, 2004).
    Pursuant to Sec.  262.6 of title 37 of the Code of Federal 
Regulations, as the Designated Agent, SoundExchange may conduct a 
single audit of a Licensee, such as DMX Music, Inc., for the purpose of 
verifying their royalty payments. As a preliminary matter, the 
Designated Agent is required to submit a notice of its intent to audit 
a Licensee with the Copyright Office and to serve this notice on the 
service to be audited. 37 CFR 262.6(c).
    On February 16, 2005, SoundExchange filed with the Copyright Office 
a notice of intent to audit DMX Music, Inc.,\1\ for the years 2002, 
2003, and 2004. As stated in section 262.6(c), the Copyright Office 
then is required to publish a notice in

[[Page 12243]]

the Federal Register within thirty days of receipt of the filing 
announcing the Designated Agent's intent to conduct an audit.
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    \1\ A copy of the Notice of Intent to Audit DMX Music, Inc., 
will be posted on the Office website at http://www.copyright.gov/carp/dmx_notice262.pdf.
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    In accordance with this regulation, the Office is publishing 
today's notice to fulfill this requirement with respect to 
SoundExchange's notice of intent to audit.

    Dated: March 8, 2005
Tanya M. Sandros,
Associate General Counsel.
[FR Doc. 05-4842 Filed 3-10-05; 8:45 am]
BILLING CODE 1410-33-S