[Federal Register Volume 70, Number 101 (Thursday, May 26, 2005)]
[Rules and Regulations]
[Pages 30366-30367]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-10552]


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LIBRARY OF CONGRESS

Copyright Office

37 CFR Part 201

[Docket No. RM 2005-4]


Statements of Account

AGENCY: Copyright Office, Library of Congress.

ACTION: Final rule.

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SUMMARY: The Copyright Office is amending its rules to require cable 
operators, satellite carriers, and manufacturers and importers of 
digital audio recording technology and media to file with the Licensing 
Division of the Copyright Office a copy of their statement of account 
together with the original statement of account.

DATE: This rule shall take effect on July 1, 2005.

FOR FURTHER INFORMATION CONTACT: David O. Carson, General Counsel, or 
Tanya M. Sandros, Associate General Counsel, Copyright GC/R&I, P.O. Box 
70400, Southwest Station, Washington, DC 20024-0400. Telephone: (202) 
707-8380. Telefax: (202) 707-8366.

SUPPLEMENTARY INFORMATION: The Copyright Act, title 17 of the United 
States Code, requires cable operators and satellite carriers making 
secondary transmissions of broadcast signals under a statutory license 
to file with the Copyright Office statements of account every six 
months together with the royalty fees required for use of the licenses. 
17 U.S.C. 111(d)(2) and 119(b)(1). Similarly, entities that manufacture 
and distribute and/or import and distribute digital audio recording 
devices or digital audio recording media in the United States must file 
with the Licensing Division quarterly and annual statements of account. 
17 U.S.C. 1003.
    Currently, a licensee operating under any of these three statutory 
licenses need file only the original statement of account with the 
Copyright Office at the appropriate time. In the case of cable filings, 
this form is then copied by the staff in the Licensing Division before 
examination, a process which may take four to six months to complete. 
In the meantime, statements of account are not available for routine 
public viewing. Such a process is inefficient and inhibits the timely 
processing of the statements. For this reason, the copyright owners who 
are the beneficiaries of the royalty fees paid to the Copyright Office 
have requested that the Office amend its rules to require the licensees 
to file both an original statement of account and a copy of the 
statement at the time of payment of the royalty fees.
    Their suggestion offers a practical and inexpensive solution to the 
problems noted above. Filing an original and one copy of the statement 
of account will have a two-fold benefit. The submission of a second 
copy will eliminate one time-consuming step in the processing of the 
statements, thereby increasing the efficiency associated with handling 
the statements at the initial stage. Certainly, it is far easier and 
less expensive for the licensee to make a single copy of its statement 
of account than to have the staff of the Licensing Division assume this 
burden on behalf of the thousands of licensees who file quarterly, 
semi-annual, and annual statements of account. Moreover, the ready 
availability of a copy of the cable and satellite statements of account 
will expedite the creation of the public file for review by copyright 
owners and other interested parties.
    For these reasons, the Copyright Office is amending its rules to 
require each licensee to file a copy of its statement of account with 
the Licensing Division of the Copyright Office along with the original 
statement of account.
    The Office is also revising the section heading for Sec.  201.11 by 
removing the phrase ``for private home viewing'' to reflect the fact 
that the section 119 statutory license is no longer limited to private 
home viewing. Under the Satellite Home Viewer Extension and 
Reauthorization Act (``SHVERA''), Public Law 108-447, which was signed 
into law on December 8, 2004, satellite carriers can now provide 
secondary retransmissions to private homes and to commercial 
establishments.
    This final rule is being published without opportunity for notice 
and comment because it is a rule of agency practice and procedure. 
Moreover, the Office finds that there is good cause to conclude that 
providing the opportunity for notice and comment would be 
impracticable, unnecessary and contrary to the public interest because 
this rule simply requires a licensee to make and submit a single copy 
of its statements of account, a trivial burden compared to the 
administrative burden to the Office of making copies of all statements 
of account. See 5 U.S.C. 553(b)(A) and (B).

Regulatory Flexibility Act Statement

    Although the Copyright Office, as a department of the Library of 
Congress and part of the Legislative Branch, is not an ``agency'' 
subject to the Regulatory Flexibility Act, 5 U.S.C. 601-612, the 
Register of Copyrights has considered the effect of the proposed 
amendment on small businesses. The Register has determined that the 
amendments would not have a significant economic impact on a 
substantial number of small business entities that would require a 
provision of special relief for them. The amendments are designed to 
minimize any significant economic impact on small business entities.

List of Subjects in 37 CFR 201

    Copyright.

Final Regulations

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In consideration of the foregoing, the Copyright Office is amending 
part 201 of 37 CFR as follows:

PART 201--GENERAL PROVISIONS

0
1. The authority citation for part 201 continues to read as follows:

    Authority: 17 U.S.C. 702.


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2. Section 201.11 is amended as follows:
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a. by revising the section heading,
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b. by redesignating paragraphs (g) and (h) as paragraphs (h) and (i), 
respectively, and
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c. by adding a new paragraph (g).
    The revisions and additions to Sec.  201.11 reads as follows:


Sec.  201.11   Satellite carrier statements of account covering 
statutory licenses for secondary transmissions.

    * * * * *
    (g) Copies of statements of account. A licensee shall file an 
original and one copy of the statement of account with the Licensing 
Division of the Copyright Office.
    * * * * *
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3. Section 201.17 is amended as follows:

[[Page 30367]]

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a. by redesignating paragraphs (j) and (k) as paragraphs (k) and (l), 
respectively, and
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b. by adding a new paragraph (j).
    The revisions and additions to Sec.  201.17 reads as follows:


Sec.  201.17  Statements of Account covering compulsory licenses for 
secondary transmissions by cable systems.

    * * * * *
    (j) Copies of statements of account. A licensee shall file an 
original and one copy of the statement of account with the Licensing 
Division of the Copyright Office.
    * * * * *
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4. Section 201.28 is amended as follows:
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a. by redesignating paragraphs (g) through (k) as paragraphs (h) 
through (l), respectively, and
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b. by adding a new paragraph (g).
    The revisions and additions to Sec.  201.28 reads as follows:


Sec.  201.28  Statements of Account for digital audio recording devices 
and media.

    * * * * *
    (g) Copies of statements of account. A licensee shall file an 
original and one copy of the statement of account with the Licensing 
Division of the Copyright Office.
    * * * * *

    Dated: May 18, 2005
Marybeth Peters,
Register of Copyrights.
    Approved by:
James H. Billington,
The Librarian of Congress.
[FR Doc. 05-10552 Filed 5-25-05; 8:45 am]
BILLING CODE 1410-30-S