[Federal Register Volume 70, Number 57 (Friday, March 25, 2005)]
[Notices]
[Pages 15368-15369]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-5953]


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LIBRARY OF CONGRESS

Copyright Office

[Docket No. 2005-4 CARP SRA-Digital]


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 the retransmission of digital over-the-air television 
broadcast signals by satellite carriers under the statutory license.

DATES: The voluntary negotiation period commences on March 25, 2005 and 
concludes on April 25, 2005. Voluntary agreements must be submitted no 
later than April 25, 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 between 8:30 a.m. and 5 p.m. and the 
envelope should be addressed as follows: Copyright Office General 
Counsel/CARP, U.S. Copyright Office, James Madison Memorial Building, 
Room LM-401, 101 Independence Avenue, S.E., Washington, D.C. 20559-
6000. 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, N.E. between 8:30 a.m. 
and 4 p.m. The envelope should be addressed as follows: Copyright 
Office General Counsel/CARP, Room LM-403, James Madison Memorial 
Building, 101 Independence Avenue, S.E., Washington, D.C. 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, D.C. 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, D.C. 20024. 
Telephone: (202) 707-8380. Telefax: (202) 252-3423.

SUPPLEMENTARY INFORMATION:

Background

    The satellite carrier compulsory license establishes a statutory 
copyright licensing scheme for satellite carriers that retransmit over-
the-air television broadcast signals to satellite dish owners. 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 (``SHVERA'') (as part of the Consolidated 
Appropriations Act, 2005), Pub. L. 108-447, which was signed into law 
by the President on December 8, 2004.
    Rates for the statutory license 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, a Copyright Arbitration Royalty Panel (``CARP''). 
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. 17 U.S.C. 119(c)(4).
    SHVERA adopts the rates as reduced by Congress in 1999 for the 
retransmission of analog signals but calls for the adjustment of those 
rates.\1\ In addition, SHVERA calls for the setting of rates, for the 
first time, for the retransmission of the primary digital transmissions 
of network stations and superstations. SHVERA provides that the rates 
to be paid by satellite carriers for the retransmission of digital 
signals shall be the rates set by the Librarian in 1997 for the 
retransmission of analog signals, 37 CFR 258.3(b)(1)&(2), reduced

[[Page 15369]]

by 22.5 percent but provides for a rate adjustment in accordance with 
the
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    \1\ The Library has begun the process to adjust the rates paid 
for the retransmission of analog signals. See 69 FR 78482 (December 
30, 2004); 70 FR 3656 (January 26, 2005).
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procedures set forth in section 119(c)(1) of the Copyright Act.
    On March 8, 2005, the Copyright Office received a letter from 
EchoStar Satellite L.L.C., DirecTV, Inc., Program Suppliers, and the 
Joint Sports Claimants requesting that the Office begin the process of 
setting the rates for the retransmission of digital broadcast signals 
by initiating a voluntary negotiation period so that rates for both 
digital and analog signals ``will be in place before the July 31, 2005 
deadline for satellite carriers to pay royalties for the first 
accounting period of 2005.'' \2\ Letter at 2. The Office sees no reason 
not to grant this request. Accordingly, today's notice begins the 
process mandated by statute.
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    \2\ We note that the letter referenced Docket No. 2004-9 CARP 
SRA, which is the proceeding to adjust the rates for the 
retransmission of analog signals. As the parties state in their 
letter, ``the analog rates and digital rates are distinct and 
separate.'' Letter at 1. We agree. Therefore, we have assigned a 
separate docket number to this proceeding.
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Voluntary Negotiation Period

    Section 119(c)(2) of the Copyright Act, 17 U.S.C., provides that 
``[t]he process and requirements for establishing the royalty fee 
payable . . . for the secondary transmission of the primary digital 
transmissions of network stations and superstations shall be the same'' 
as that set forth in section 119(c)(1) for the amendment of the rates 
paid for the retransmission of analog signals. Section 119(c)(1) 
provides that ``the Librarian of Congress shall cause to be published 
in the Federal Register [notice] of the initiation of the voluntary 
negotiation proceedings for the purpose of determining the royalty fee 
to be paid by satellite carriers'' for the retransmission of digital 
broadcast signals. This notice initiates the voluntary negotiation 
period.
    The statute does not specify how long the voluntary negotiation 
period is to last. However, the regulations governing CARP proceedings 
provide for a ``30-day period for negotiation of a settlement'' when 
adjusting rates under the cable, phonorecord and jukebox statutory 
licenses. 37 CFR 251.63(a). Since the rates will be determined under 
the current CARP system\3\ should parties be unable to negotiate a 
voluntary agreement or an objection to such agreement is raised, the 
Library sees no reason not to adopt the period set forth in Sec.  
251.63(a) here. Therefore, the voluntary negotiation period commences 
today, March 25, 2005, and concludes April 25, 2005.
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    \3\ On November 30, 2004, the President signed into law the 
Copyright Royalty and Distribution Act of 2004, Pub. L. 108-419, 
which phases out the CARP system and replaces it with three 
permanent Copyright Royalty Judges. However, SHVERA 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).
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    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 a CARP proceeding. 17 U.S.C. 
119(c)(1)(D)(ii)(III). Voluntary agreements must be submitted no later 
than April 25, 2005. If no agreements are received by that time, the 
Library will proceed in accordance with the rules and regulations of 37 
CFR part 251.

    Dated: March 22, 2005
David O. Carson,
General Counsel.
[FR Doc. 05-5953 Filed 3-24-05; 8:45 am]
BILLING CODE 1410-33-S