[Federal Register Volume 70, Number 152 (Tuesday, August 9, 2005)]
[Notices]
[Pages 46193-46194]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-15731]


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LIBRARY OF CONGRESS

Copyright Royalty Board

[Docket No. 2005-2 CRB SD 2001-2003]


Distribution of the 2001, 2002, and 2003 Satellite Royalty Funds

AGENCY: Copyright Royalty Board, Library of Congress.

ACTION: Request for comments.

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SUMMARY: The Interim Chief Copyright Royalty Judge, on behalf of the 
Copyright Royalty Board, is requesting comments on the existence of 
controversies to the distribution of the 2001, 2002, and 2003 satellite 
royalty funds.

DATES: Written comments should be received no later than September 8, 
2005.

ADDRESSES: If hand delivered by a private party, an original and five 
copies of comments must be brought to Room LM-401 of the James Madison 
Memorial Building, Monday through Friday, between 8:30 a.m. and 5 p.m., 
and the envelope must be addressed as follows: Copyright Royalty Board, 
Library of Congress, James Madison Memorial Building, LM-401, 101 
Independence Avenue, SE., Washington, DC 20559-6000. If delivered by a 
commercial courier (excluding overnight delivery services such as 
Federal Express, United Parcel Service and similar overnight delivery 
services), an original and five copies of comments must be delivered to 
the Congressional Courier Acceptance Site located at 2nd and D Street, 
NE., Monday through Friday, between 8:30 a.m. and 4 p.m., and the 
envelope must be addressed as follows: Copyright Royalty Board, Library 
of Congress, James Madison Memorial Building, LM-403, 101 Independence 
Avenue, SE., Washington, DC 20559-6000. If sent by mail (including 
overnight delivery using United States Postal Service Express Mail), an 
original and five copies of comments must be addressed to: Copyright 
Royalty Board, P.O. Box 70977, Southwest Station, Washington, DC 20024-
0977. Comments 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: William J. Roberts, Jr., Senior 
Attorney, or Abioye E. Oyewole, CRB Program Specialist. Telephone (202) 
707-8380. Telefax: (202) 252-3423.

SUPPLEMENTARY INFORMATION: Each year satellite carriers submit 
royalties to the Copyright Office under the section 119 statutory 
license for the retransmission to their subscribers of distant over-
the-air television broadcast signals. 17 U.S.C. 119. These royalties 
are, in turn, distributed in one of two ways to copyright owners whose 
works were included in a retransmission of an over-the-air television 
broadcast signal and who timely filed a claim for royalties with the 
Copyright Office. The copyright owners may either negotiate the terms 
of a settlement as to the division of the royalty funds, or the 
Copyright Royalty Board may conduct a proceeding to determine the 
distribution of the royalties that remain in controversy. See 17 U.S.C. 
Chapter 8.
    By Motion received on June 20, 2005, representatives of the Phase I 
claimant categories (the ``Phase I Parties'') \1\ have asked the Board 
to authorize a partial distribution of 50% of each of the 2001, 2002, 
and 2003 satellite royalty funds, asserting that 50% of those funds is 
not in controversy. As set forth in the Motion, the proposed partial 
distribution would be preceded by a notice in the Federal Register, 
seeking comments with respect to the premise of the Motion that 50% of 
the relevant royalty funds is not in controversy. The Phase I Parties 
also indicated that, ``in the event that the final percentage shares to 
Phase I Parties differ from the distributions made pursuant to this 
Motion, any overpayment that results from the final distribution shall 
be repaid * * * with interest * * *.'' Motion, at 4 (internal quotation 
and citation omitted).
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    \1\ The ``Phase I Parties'' are the Program Suppliers, the Joint 
Sports Claimants, the Public Television Claimants, the Broadcaster 
Claimants Group, the American Society of Composers, Authors and 
Publishers, Broadcast Music, Inc., SESAC, Inc., and the Devotional 
Claimants.
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    In support of their Motion, the Phase I Parties invoked the Board's 
authority under Copyright Act sections 801(b)(3)(C) and 119(b)(4)(C). 
Because no distribution proceeding with respect to the 2001-2003 
satellite funds was ``pending,'' the Board was concerned that it might 
lack authority to act favorably on the requested 50% partial 
distribution. Accordingly, on July 1, 2005, the Board invited 
supplemental briefing from the Phase I Parties on this issue. In their 
supplemental brief, filed July 26, 2005, the Phase I Parties rely 
heavily on section 801(b)(3)(A). 17 U.S.C. 801(b)(3)(A), which was 
enacted as part of the Copyright Royalty and Distribution Reform Act of 
2004, Public Law 108-419, 118 Stat. 2341 (November 30, 2004), 
``authorize[s] the distribution'' of satellite and other royalty funds 
``to the extent that the Copyright Royalty Judges have found that the 
distribution of such fees is not subject to controversy.'' In arguing 
that section 801(b)(3)(A) should be construed to permit partial 
distributions prior to the formal initiation of distribution 
proceedings, the Phase I Parties point to the historic practices of the 
Copyright Royalty Tribunal and the Copyright Arbitration Royalty Panel 
system and demonstrate that Congress did not intend to alter that 
flexibility in adopting the current language of Copyright Act section 
801(b)(3). After considering the arguments made by the Phase I Parties, 
the Board agrees with the Phase I Parties that section 801(b)(3)(A) 
should be construed to authorize the partial distribution of royalties 
not in controversy prior to the initiation of proceedings under 
sections 803(b)(1).
    Accordingly, through this Federal Register notice, the Board is 
seeking comments on whether any controversy exists that would preclude 
the distribution of 50% of the satellite royalty funds to the Phase I 
Parties. If no controversy exists with respect to 50% of the funds, or 
no comments are received, the Board will grant the Phase I Parties' 
Motion for the partial distribution of the 2001-2003 satellite royalty 
funds, subject to the protective refund conditions required for partial 
distributions.
    The Board also seeks comment on the existence and extent of any 
controversies to the 2001-2003 satellite royalty funds, either at Phase 
I or Phase II, with respect to the 50% of the 2001-2003 satellite 
royalty funds that would remain, if the partial distribution is 
granted. In Phase I of a satellite royalty distribution, royalties are 
distributed to certain categories of broadcast programming that have 
been retransmitted by satellite carriers. The categories have 
traditionally been movies and syndicated television series, sports 
programming, commercial and noncommercial broadcaster-owned 
programming, religious programming, music programming and Canadian 
programming. In Phase II of a satellite royalty distribution, royalties 
are distributed to claimants within each of the Phase I categories. Any 
party submitting comments on the existence

[[Page 46194]]

of a Phase II controversy must identify the category or categories in 
which there is a dispute, and the extent of the controversy or 
controversies.
    The Board must be advised of the existence and extent of all Phase 
I and Phase II controversies by the end of the comment period. It will 
not consider any controversies that come to its attention after the 
close of that period.

    Dated: August 4, 2005.
Bruce G. Forrest,
Interim Chief Copyright Royalty Judge.
[FR Doc. 05-15731 Filed 8-8-05; 8:45 am]
BILLING CODE 1410-72-P