[Federal Register Volume 70, Number 65 (Wednesday, April 6, 2005)]
[Rules and Regulations]
[Pages 17320-17321]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-6840]



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LIBRARY OF CONGRESS

Copyright Office

37 CFR Part 258

[Docket No. 2004-9 CARP SRA]


Rate Adjustment for the Satellite Carrier Compulsory License

AGENCY: Copyright Office, Library of Congress.

ACTION: Final rule.

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SUMMARY: The Copyright Office of the Library of Congress is publishing 
the royalty rates for analog television broadcast stations 
retransmitted by satellite carriers under the section 119 statutory 
license.

DATES: January 1, 2005.

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

SUPPLEMENTARY INFORMATION: On December 8, 2004, the President signed 
the Satellite Home Viewer Extension and Reauthorization Act 
(``SHVERA''), a part of the Consolidated Appropriations Act of 2005. 
Pub.L. 108-447, 118 Stat. 3394. SHVERA extends for an additional five 
years the statutory license for satellite carriers retransmitting over-
the-air television broadcast stations to their subscribers, 17 U.S.C. 
119, as well as making a number of amendments to the license. One of 
the amendments to section 119 sets forth a process for adjusting the 
royalty fees paid by satellite carriers for retransmitting analog 
television network and superstations. 17 U.S.C. 119(c)(1). The law 
directs the Librarian of Congress to publish notice in the Federal 
Register requesting satellite carriers, distributors and copyright 
owners to submit to the Copyright Office any voluntary agreements they 
have negotiated as to the adjustment of the rates for analog stations. 
The Library published such a notice on December 30, 2004, and, pursuant 
to the statute, requested that any agreements be submitted no later 
than January 10, 2005. 69 FR 78482 (December 30, 2004).
    The Office has received one agreement, submitted jointly by the 
satellite carriers DirecTV, Inc. and EchoStar Satellite L.L.C., the 
copyright owners of motion pictures and syndicated television series 
represented by the Motion Picture Association of America, and the 
copyright owners of sports programming represented by the Office of the 
Commissioner of Baseball. Section 119(c)(1)(D)(ii)(II) requires the 
Library to ``provide public notice of the royalty fees from the 
voluntary agreement and afford parties an opportunity to state that 
they object to those fees.'' 17 U.S.C. 119(c)(1)(D)(ii)(II). The 
Library published a Notice of Proposed Rulemaking on January 26, 2005, 
to fulfill this requirement. 70 FR 3656 (January 26, 2005). No 
objections were received. Consequently, the Library is adopting the 
voluntary agreement as final.

List of Subjects in 37 CFR Part 258

    Copyright, Satellite, Television.

Final Regulation

0
For the reasons set forth above, the Copyright Office amends 37 CFR 
chapter II as follows:

PART 258--ADJUSTMENT OF ROYALTY FEE FOR SECONDARY TRANSMISSIONS BY 
SATELLITE CARRIERS

0
1. The authority citation for part 258 is amended to read as follows:

    Authority: 17 U.S.C. 119, 702, 802.


0
2. Section 258.2 is revised to read as follows:


Sec.  258.2  Definitions.

    (a) Commercial establishment. The term ``commercial establishment'' 
means an establishment used for commercial purposes, such as bars, 
restaurants, private offices, fitness clubs, oil rigs, retail stores, 
banks and financial institutions, supermarkets, auto and boat 
dealerships, and other establishments with common business areas; 
provided that the term ``commercial establishment'' shall not include a 
multi-unit permanent or temporary dwelling where private home viewing 
occurs, such as hotels, dormitories, hospitals, apartments, 
condominiums and prisons, all of which shall be subject to the rates 
applicable to private home viewing.
    (b) Syndex-proof signal. A satellite retransmission of a broadcast 
signal shall be deemed ``syndex proof'' for purposes of Sec.  258.3(b) 
if, during any semi-annual reporting period, the retransmission does 
not include any program which, if delivered by any cable system in the 
United States, would be subject to the syndicated exclusivity rules of 
the Federal Communications Commission.
    (c) Per subscriber per month. The term ``per subscriber per month'' 
means each subscriber subscribing to the station in question, or to a 
package including such station, on the last day of a given month.

0
3. Section 258.3 is amended by adding new paragraphs (d) through (h) to 
read as follows:


Sec.  258.3  Royalty fee for secondary transmission of broadcast 
stations by satellite carriers.

* * * * *
    (d) Commencing January 1, 2005, the royalty rate for secondary 
transmission of broadcast stations by satellite carriers shall be as 
follows:
    (1) For private home viewing-
    (i) 20 cents per subscriber per month for distant superstations.
    (ii) 17 cents per subscriber per month for distant network 
stations.
    (2) For viewing in commercial establishments, 40 cents per 
subscriber per month for distant superstations.
    (e) Commencing January 1, 2006, the royalty rate for secondary 
transmission of broadcast stations by satellite carriers shall be as 
follows:
    (1) For private home viewing-
    (i) 21.5 cents per subscriber per month for distant superstations.
    (ii) 20 cents per subscriber per month for distant network 
stations.
    (2) For viewing in commercial establishments, 43 cents per 
subscriber per month for distant superstations.
    (f) Commencing January 1, 2007, the royalty rate for secondary 
transmission of broadcast stations by satellite carriers shall be as 
follows:
    (1) For private home viewing-
    (i) 23 cents per subscriber per month for distant superstations.
    (ii) 23 cents per subscriber per month for distant network 
stations.
    (2) For viewing in commercial establishments, 46 cents per 
subscriber per month for distant superstations.
    (g) Commencing January 1, 2008, the royalty rate for secondary 
transmission of broadcast stations by satellite carriers shall be as 
follows:
    (1) For private home viewing-
    (i) The 2007 rate per subscriber per month for distant 
superstations adjusted for the amount of inflation as measured by the 
change in the Consumer Price Index for all Urban Consumers from January 
2007 to January 2008.
    (ii) The 2007 rate per subscriber per month for distant network 
stations adjusted for the amount of inflation as measured by the change 
in the Consumer Price Index for all Urban Consumers from January 2007 
to January 2008.
    (2) For viewing in commercial establishments, the 2007 rate per 
subscriber per month for viewing distant superstations in commercial 
establishments adjusted for the amount

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of inflation as measured by the change in the Consumer Price Index for 
all Urban Consumers from January 2007 to January 2008.
    (h) Commencing January 1, 2009, the royalty rate for secondary 
transmission of broadcast stations by satellite carriers shall be as 
follows:
    (1) For private home viewing-
    (i) The 2008 rate per subscriber per month for distant 
superstations adjusted for the amount of inflation as measured by the 
change in the Consumer Price Index for all Urban Consumers from January 
2008 to January 2009.
    (ii) The 2008 rate per subscriber per month for distant network 
stations adjusted for the amount of inflation as measured by the change 
in the Consumer Price Index for all Urban Consumers from January 2008 
to January 2009.
    (2) For viewing in commercial establishments, the 2008 rate per 
subscriber per month for viewing distant superstations in commercial 
establishments adjusted for the amount of inflation as measured by the 
change in the Consumer Price Index for all Urban Consumers from January 
2008 to January 2009.

    Dated: March 25, 2005
Marybeth Peters,
Register of Copyrights.
    Approved by:
James H. Billington,
The Librarian of Congress.
[FR Doc. 05-6840 Filed 4-5-05; 8:45 am]
BILLING CODE 1410-33-S