[Federal Register Volume 70, Number 154 (Thursday, August 11, 2005)]
[Notices]
[Page 46891]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-15924]


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LIBRARY OF CONGRESS

Copyright Office

[Docket Nos. 2003-3 CARP DD 2002 and 2004-4 CARP DD 2003]


Distribution of 2002 and 2003 Digital Audio Recording Royalty 
Funds

AGENCY: Copyright Office, Library of Congress.

ACTION: Notice of termination of proceedings.

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SUMMARY: The Copyright Office of the Library of Congress is announcing 
the termination of two proceedings under the Copyright Arbitration 
Royalty Panel system to distribute royalty fees paid by importers and 
manufacturers of digital audio recording devices and media who 
distributed these products in the United States during the period 
beginning January 1, 2002, and ending on December 31, 2003. The Office 
is also providing notice that the authority to make determinations 
regarding the distribution of the 2004 Digital Audio Recording Royalty 
Funds passed to the Copyright Royalty Board on May 31, 2005.

DATES: Effective August 11, 2005.

FOR FURTHER INFORMATION CONTACT: Tanya M. Sandros, Associate General 
Counsel, or Abioye E. Oyewole, CRB Specialist. Telephone: (202) 707-
8380. Telefax: (202) 252-3423.

SUPPLEMENTARY INFORMATION: The Audio Home Recording Act of 1992 (the 
``Act''), Public Law 102-563, requires manufacturers and importers to 
pay royalties on digital audio recording devices and media (``DART'') 
that are distributed in the United States. 17 U.S.C. 1003. These 
royalties are deposited with the Copyright Office for further 
distribution among interested copyright parties (``ICPs''), provided 
the copyright owners file a claim with the Office during January and 
February of each year. 17 U.S.C. 1005, 1007. The Act provides that the 
royalties are divided between two funds: the Sound Recordings Fund and 
the Musical Works Fund. These fees are allocated further to specific 
subfunds. The Sound Recordings Fund consists of four subfunds: the 
Featured Recording Artists Subfund, the Copyright Owners Subfund, the 
Nonfeatured Musicians Subfund, and the Nonfeatured Vocalists Subfund. 
The royalty fees allocated to the Musical Works Fund are equally 
divided between two subfunds, the Publishers Subfund and the Writers 
Subfund. 17 U.S.C. 1006(b).
    Under the Copyright Arbitration Royalty Panel (``CARP'') system, 
proceedings to distribute funds in the Sound Recordings and Musical 
Works Funds occurred in one of two ways. If the claimants within each 
subfund agreed among themselves how to distribute the royalty fees, the 
Librarian of Congress distributed the royalties to the claimants in 
accordance with their negotiated agreement. 17 U.S.C. 1007(b). In the 
absence of an agreement, the Librarian of Congress convened a CARP, an 
ad-hoc panel of arbitrators, to determine the distribution of royalty 
payments. 17 U.S.C. 1007(c). On November 30, 2004, the President signed 
into law the Copyright Royalty and Distribution Reform Act of 2004 (the 
``CRDRA''), Public Law 108-419, 118 Stat. 2341. This Act, which became 
effective on May 31, 2005, phases out the CARP system and replaces it 
with three permanent Copyright Royalty Judges (``CRJs''). Additionally, 
CRDRA allows for the termination of ``any [CARP] proceeding commenced 
by the date of the enactment of this Act...and any proceeding so 
terminated shall become null and void. In such cases, the Copyright 
Royalty Judges may initiate a new proceeding in accordance with 
regulations adopted pursuant to section 803(b)(6) of title 17, United 
States Code.'' Section 6(b)(1) of the Copyright Royalty and 
Distribution Reform Act of 2004, Public Law 108-419. The Copyright 
Office is announcing the termination of two DART distribution 
proceedings under this provision.
    Prior to the enactment of this Act, the Copyright Office made a 
number of distributions of the 2002 and 2003 DART royalty funds under 
the CARP system. In the 2002 DART distribution proceeding, the 
Copyright Office ordered a distribution of the 2002 royalties in the 
Sound Recordings Fund on October 1, 2003, based on settlement 
agreements among the claimants to the Copyright Owners and Featured 
Recording Artists subfunds. A second distribution to an Independent 
Administrator followed on November 19, 2003, of 4% of the 2002 Sound 
Recordings Fund, the amount allocated by law to the Nonfeatured 
Musicians and Nonfeatured Vocalists royalty subfunds.
    Similar distributions were made in the 2003 DART distribution 
proceeding. On May 27, 2005, the Office made two distributions of 
royalties in the 2003 Sound Recordings Fund based upon settlement 
agreements among the interested copyright parties, one for the 
royalties allocated to the Featured Recording Artists subfund and the 
other for the funds allocated to the Copyright Owners subfund. The 
final distribution of the 2003 Sound Recordings Fund royalty fees was 
an administrative distribution of the funds in the Nonfeatured 
Musicians and Nonfeatured Vocalists royalty subfunds made on June 28, 
2004. However, no action has been taken to distribute the 2002 and 2003 
Musical Works Funds nor will the Copyright Office initiate any further 
proceedings to consider the distribution of these Funds. Rather, the 
Library elects to terminate these proceedings immediately pursuant to 
Section 6(b)(1) of the CRDRA. As a result, subsequent proceedings 
regarding the distribution of the 2002 and 2003 Musical Works Funds 
shall be initiated under the new CRJ system.
    The Office is also providing notice that all proceedings regarding 
the distribution of the 2004 DART royalty funds came under the 
jurisdiction of the Copyright Royalty Board on May 31, 2005, the 
effective date of the CRDRA. Prior to this date, the Office took no 
action to commence a proceeding to consider the distribution of these 
funds. It merely accepted the claims filed and made an administrative 
distribution of the Nonfeatured Musicians and Nonfeatured Vocalists 
subfunds, actions which do not constitute commencement of a proceeding. 
Consequently, in accordance with Section 6(b)(1) of the CRDRA, the 
Library of Congress did not acquire jurisdiction over this proceeding.

    Dated: August 5, 2005
Tanya M. Sandros,
Associate General Counsel.
[FR Doc. 05-15924 Filed 8-10-05; 8:45 am]
BILLING CODE 1410-33-S