[Federal Register Volume 71, Number 105 (Thursday, June 1, 2006)]
[Rules and Regulations]
[Pages 31089-31092]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-5046]



[[Page 31089]]

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LIBRARY OF CONGRESS

Copyright Office

37 CFR Parts 201, 202 and 212

[Docket No. RM 2006-1]


Fees

AGENCY: Copyright Office, Library of Congress.

ACTION: Final rule.

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SUMMARY: The Copyright Office of the Library of Congress is publishing 
a final rule establishing adjusted fees for its services. The adjusted 
fees will recover a significant part of the costs to the Office of 
registering claims and provide full cost recovery for many services 
provided by the Office which benefit only or primarily the user of that 
service. The proposed fee increase for preregistration has been 
eliminated, and the proposed increase for group registration of 
photographs has been reduced to the fee for basic registration. 
Adjusted fees will be effective July 1, 2006. This final rule assumes 
that no legislative action will take place before July, 1, 2006.

DATES: Effective Date: July 1, 2006.

FOR FURTHER INFORMATION CONTACT: Tanya M. Sandros, Associate General 
Counsel, or Kent Dunlap, Principal Legal Advisor for the General 
Counsel. P.O. Box 70400, Washington, DC 20024-0400, Telephone (202) 
707-8380. Telefax: (202) 707-8366.

SUPPLEMENTARY INFORMATION:

Background

    This final rule adjusts Copyright Office fees in accordance with 
the applicable provisions of title 17, United States Code, and the 
Technical Amendments Act, Public Law 105-80, 111 Stat. 1529 (1997), 
codified as 17 U.S.C. 708(b).
    Section 708 of the copyright law establishes two separate 
procedures for adjusting fees for Copyright Office services to account 
for increases in costs. Fees for services specifically enumerated in 
section 708(a)(1)-(9) (``statutory fees'') are adjusted according to 
the procedures set forth in section 708(b). This procedure includes the 
completion of a cost study, and the forwarding of an economic report 
and proposed fee schedule to Congress, which takes effect unless 
Congress enacts a law within 120 days disapproving of the new fees. The 
Office submitted its cost study and proposed fee schedule to Congress 
on March 1, 2006.
    The second procedure concerns fees for services not specifically 
enumerated in section 708(a)(1)-(9); and for the purposes of this 
rulemaking, these fees are termed ``discretionary fees.'' Section 
708(a) authorizes the Register to set these fees at ``the cost of 
providing the service.'' As with the statutory fees, the Copyright 
Office adjusts the discretionary fees only after conducting a cost 
study to determine the cost of providing the services.
    On March 28, 2006, the Copyright Office published a notice of 
proposed rulemaking informing the public of the proposed adjusted 
statutory and discretionary fees. 71 FR 15368 (March 28, 2006). The 
notice explained that most statutory fees were to be increased based on 
the findings from the cost study and after considering a number of 
policy and economic factors such as fairness and equity and 
consideration of the objectives of the copyright system, projected 
inflation, and the effect of these increases on the public's decision 
to utilize these services. In light of these considerations, it was 
proposed that a number of the statutory fees be adjusted to achieve 
full cost recovery, e.g., the fees for filing a supplemental 
registration, issuing a receipt for a deposit under 17 U.S.C. 407, 
recording documents of various types, and providing additional 
certificates, whereas other statutory fees would be adjusted only to 
account for inflation since the last fee adjustment in 2002.
    The Office proposed that the basic registration filing fee be 
increased from $30 to $45. The $30 fee was established in 1999, and was 
not raised in 2002. The proposed increase did not reflect full cost 
recovery for the service provided, nor did the Office seek to recover 
its full cost for registration of a single claim. The registration 
system provides benefits to the public and to the Library of Congress 
that offset the need to set fees at a level that would recover full 
costs. Although the copyright law provides incentives to register 
copyrights, see 17 U.S.C. 410(c), 411(a), and 412, the Office 
nevertheless recognizes that copyright owners balance the benefits of 
these incentives against the costs of registration, and that there is a 
fair degree of price elasticity with respect to registration. 
Therefore, the Office proposed setting the fee for the basic 
registration at a level to allow reasonable cost recovery but not so 
high as to discourage copyright owners from filing their claims with 
the Office.
    The notice of proposed rulemaking provided that the discretionary 
fees were generally adjusted to reflect increased costs to the Office 
and account for the effect of inflation. In those cases where the 
service benefits only or primarily the requester of the service, the 
fee was generally set at full cost recovery. These fees included secure 
test processing and expedited searches. Fees for first and second 
reconsideration of refusal to register a claim were also increased, but 
not at the level of full cost recovery because it may be helpful to 
courts to have the claims reexamined at a higher level, and the purpose 
of providing such review is to ensure that the Office's decisions on 
registration comply with the applicable legal standards.
    The notice of proposed rulemaking also discussed special 
circumstances in six areas. The topics included the decision to 
eliminate GATT Group registration; the decision to apply the same fee 
for recording Notices of Intent to Enforce (NIE's) as applies to 
recordation of documents; the decision to charge $100 for the order of 
a written search estimate by the Reference & Bibliography Section, with 
the $100 to be applied to the total fee charged if the search is 
ordered; establishment of a handling fee for an extra deposit copy for 
certification to be the same as the basic registration fee; 
establishment of a single fee to cover both the search and the written 
report of an expedited Reference & Bibliography Search and Report; and 
the establishment of new copying fees which included a new minimum fee 
of $6.00 for photocopying of documents.

Comments

    The Office received thirty-two comments, the vast majority of which 
came from photographers and organizations representing photographers. 
The issues raised by those who submitted comments included the 
following:
     Opposition to raising the basic registration fee from $30 
to $45. The basic registration fee of $30 was set in 1999 when it was 
increased by 50%, from $20 to $30. Although the Copyright Office made 
no further adjustment to the basic registration fee in 2002 when a 
number of other Copyright Office fees were adjusted, the commentators 
objected to the proposed increase in the basic registration fee. They 
maintained that the $45 fee was too high for creators running small 
businesses, and a few comments suggested that the higher fee was being 
proposed to fund reengineering of business processes in the Copyright 
Office.
     Opposition to raising the fee for group registration of 
photographs. Commentators objected to raising the fee for group 
registration of photographs to $75, asserting that the new fee 
represented a 150% increase from the current $30 fee. One commentator

[[Page 31090]]

suggested that the new fee would create a ``Berlin wall'' between 
photographers and the Copyright Office.
     Opposition to raising the preregistration fee. 
Commentators objected to raising the preregistration fee from $100 to 
$150. It was argued that the $100 fee was put into place approximately 
6 months ago, and since the registration system is electronic, costs 
should drop rather than increase.
     Opposition to increasing search fees from $75 to $150 an 
hour. Photographers objected to increasing search fees of the Reference 
& Bibliography Section on the grounds that it would negatively impact 
policies with respect to Orphan Works.

Final Regulation

A. Adoption of New Fees for Registration, Recordation, and Other 
Required Services

    With the exception of the proposed new fees for preregistration and 
group registration of photographs, the Copyright Office has decided to 
adopt the adjusted fees as proposed. The basic registration fee of $45 
is less than the actual cost of providing the service. The Copyright 
Office is currently collecting 56.7% of its total expenditures from 
fees. This shortfall is largely due to the reality that the current $30 
fee does not come close to recovering costs of current operations. 
While it would have been preferable to continue to operate under the 
current cost schedule and await a new assessment under the reengineered 
processes, the need to raise fees to meet current costs during the 
reengineering period could not be overlooked. Even so, the $45 fee does 
not recover full costs, it merely brings the Copyright Office closer to 
its historical range of cost recovery. Moreover, comments suggesting 
that the proposed increase is intended to cover the cost of 
reengineering of Copyright Office business processes are incorrect 
since no costs related to this task were included in the cost study. 
Costs associated with the reengineered processes will be the focus of a 
separate cost study that the Office will undertake once these processes 
are operational and, at that time, the Office anticipates establishing 
a differential fee schedule with lower filing fees for on-line 
registration than for the current paper-based registration, to reflect 
the efficiencies of the new reengineered processes.
    Search fees will also be increased to recover more of the costs of 
the service. The current $75 rate covers only a relatively small 
fraction of the actual cost of conducting the searches; and even by 
doubling the fee to $150, the Office will not recover a substantial 
portion of the costs of this service. While the increase may result in 
fewer search requests, as the comments suggest, the service primarily 
benefits those who seek it and they should bear the brunt of the costs. 
Moreover, there are alternative choices in the marketplace. Private 
businesses offer this type of search service in the private sector at 
competitive rates.

B. Fee for Preregistration To Remain at $100

    Approximately six months ago the Copyright Office established a 
system of preregistration pursuant to the Artists Rights and Theft 
Protection Act of 2005. Lacking experience with registration of claims 
in the area, the Office set up an electronic form of registration and 
set the fee at $100, which was the Office's best estimate of its likely 
costs. Preregistration, however, required far more correspondence than 
had been anticipated, raising the costs beyond the $100 estimate. Thus, 
based upon the cost study, the Copyright Office proposed raising the 
fee to $150. In light of the strong opposition to this fee increase 
voiced by commentators, the Copyright Office took a second look at the 
costs of processing a preregistration claim and found that the rate of 
correspondence concerning preregistration has recently fallen. As a 
result, the Copyright Office has decided to retain the current $100 fee 
but will continue to monitor the Office's costs of providing this 
service.

C. Fee for Group Registration of Photographs

    The Office proposed raising the fee for group registration of 
photographs from the current $30 to $75 to cover its substantially 
higher costs associated with processing claims in groups of 
photographs. Photographers responded by protesting strongly that they 
would be unable to bear the additional costs. The Office acknowledges 
that when it offered the group registration of photographs option in 
2001, it intentionally set the fee at the basic registration fee. 
Photographers are an important part of the copyright community, and in 
light of the hardship which might arise as a result of raising the fee 
to $75 and the likelihood that the fee increase would result in reduced 
deposits of photographs, the Copyright Office has decided to continue 
its current practice of charging only the basic registration fee ($45 
as of July 1) for group registration of photographs as an incentive to 
photographers to register their works.

D. Technical Amendments Bringing All Fee Provisions Within Sec.  201.3

    In order to bring all fees within Sec.  201.3 of the regulations, 
the Copyright Office is amending various regulations which separately 
specify fees. These regulations include Notice to Libraries and 
Archives, Notice of Intention to Enforce (NIE), Corrected Notice of 
Intention to Enforce, registration of restored works, preregistration 
of certain unpublished works, and registration of vessel hulls. In 
addition, provisions establishing group registration of claims in 
restored works are eliminated.

E. Effective Date

    Congress has 120 days from March 1, 2006, to review the statutory 
fees submitted to it, codified in Sec. Sec.  201.3(c) and (e)(1). If no 
legislation is enacted barring adoption of these fees, the proposed fee 
schedule for registration, recordation, and other related services will 
be adopted, effective July 1, 2006. The remaining fees, which are not 
subject to the Congressional review process set forth in 17 U.S.C. 
708(b)(5), shall become effective on July 1, 2006.

List of Subjects

37 CFR Part 201

    Copyright, General provisions.

37 CFR Part 202

    Copyright, Registration.

37 CFR Part 212

    Design, Fees, Registration, Vessel hulls.

Final Rule

0
In consideration of the foregoing, parts 201, 202, and 212 of 37 CFR, 
chapter II are amended 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.


0
2. Section 201.3(c), (d) and (e) are revised to read as follows:


Sec.  201.3  Fees for registration, recordation, and related services, 
special services, and services performed by the Licensing Division.

* * * * *
    (c) Registration, recordation and related service fees. The 
Copyright Office has established the following fees for these services:

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------------------------------------------------------------------------
         Registration, recordation and rated services             Fees
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(1) Registration of a basic claim in an original work of             $45
 authorship: Forms TX, SE, PA, VA (including Short Forms),
 and Form SR.................................................
(2) Registration of a claim in a group of contributions to 75         45
 periodicals (GR/CP).........................................
(3) Registration of a renewal claim (Form RE):
    Claim without Addendum...................................         75
    Addendum.................................................        220
(4) Registration of a claim in a mask work (Form MW).........         95
(5) Registration of a claim in a group of serials (Form SE/           25
 Group) [per issue, with minimum 2 issues]...................
(6) Registration of a claim in a group of daily newspapers            70
 and 45 qualified newsletters (Form G/DN)....................
(7) Registration of a claim in a restored copyright (Form             45
 GATT).......................................................
(8) Registration of a group of published photographs.........         45
(9) Preregistration of certain unpublished works.............        100
(10) Registration of a correction or amplification to a claim        115
 150 (Form CA)...............................................
(11) Providing an additional certificate of registration.....         40
(12) Certification of other Copyright Office records (per            150
 hour).......................................................
(13) Search--report prepared from official records (per hour)        150
    Estimate of search fee...................................        100
(14) Location of Copyright Office records (per hour).........        150
    Location of in-process materials (per hour)..............        150
(15) Recordation of document, including a Notice of Intention         95
 to Enforce (NIE) (single title).............................
    Additional titles (per group of 10 titles)...............         25
(16) Recordation of Notice of Intention to Make and                   12
 Distribute Phonorecords.....................................
(17) Recordation of an Interim Designation of Agent to                80
 Receive Notification of Claimed Infringement under Sec.
 512(c)(2)...................................................
(18) Issuance of a receipt for a Sec.   407 deposit..........         20
(19) Registration of a claim in a vessel hull................        200
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    (d) Special Service Fees. The Copyright Office has established the 
following fees for special services:

------------------------------------------------------------------------
                       Special services                           Fees
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(1) Service charge for deposit account overdraft.............       $150
(2) Service charge for dishonored deposit account                     75
 replenishment check.........................................
(3) Appeals:
    (i) First appeal.........................................        250
        Additional claim in related group....................         25
    (ii) Second appeal.......................................        500
        Additional claim in related group....................         25
(4) Secure test processing charge, per hour..................        150
(5) Copying of Copyright Office Records by staff:
    Photocopy (b&w) (per page, minimum $6)...................       0.50
    Photocopy (color) (per page, minimum $6).................       1.50
    Photograph (Polaroid)....................................         15
    Photograph (digital).....................................         45
    Slide....................................................          3
    Audiocassette (first 30 minutes).........................         75
        Additional 15 minute increments......................         20
    Videocassette (first 30 minutes).........................         75
        Additional 15 minute increments......................         25
    CD or DVD................................................         50
    Zip or floppy disk.......................................        100
(6) Special handling fee for a claim.........................        685
    Each additional claim using the same deposit.............         50
(7) Special handling fee for recordation of a document.......        435
(8) Handling fee of extra deposit copy for certification.....         45
(9) Full-term retention of a published deposit...............        425
(10) Expedited Reference and Bibliography search and report..     400/hr
(11) Expedited Certification & Documents services (surcharge,        240
 per hour)...................................................
(12) Notice to Libraries and Archives........................         50
    Each additional title....................................         20
(13) Use of COINS terminal in LM-B14 (per hour)..............         25
(14) Fed Ex Service..........................................         35
(15) Delivery of documents via facsimile (per page, 7 page             1
 maximum)....................................................
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    (e) Licensing Division service fees. The Copyright Office has 
established the following fees for certain services performed by the 
Licensing Division:

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                 Licensing Division services                      Fees
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(1) Recordation of a Notice of Intention to Make and                 $12
 Distribute Phonorecords (17 U.S.C. 115).....................
(2) Filing Fee for Recordation of License Agreements under 17        125
 125 U.S.C. 118..............................................
(3) Recordation of Certain Contracts by Cable Television              50
 Systems Located Outside the Forty-Eight Contiguous States...
(4) Initial Notice of Digital Transmission of Sound Recording         20
 (17 U.S.C. 114).............................................
    Amendment of 17 U.S.C. 114 Notice........................         20
(5) Statement of Account Amendment (Cable Television Systems,         95
 Satellite Carriers, and Digital Audio Recording Devices or
 Media, 17 U.S.C. 111, 119, and 1003)........................
(6) Photocopy made by staff (b&w) (per page, minimum $6).....       0.50
(7) Search, per hour.........................................        150
(8) Certification of Search Report...........................        150
------------------------------------------------------------------------


0
3. Amend Sec.  201.33 by revising paragraph (e)(1) to read as follows:


Sec.  201.33  Procedures for filing Notices of Intent to Enforce a 
restored copyright under the Uruguay Round Agreements Act.

* * * * *
    (e) Fee--(1) Amount. The filing fee for recording Notices of Intent 
to Enforce is prescribed in Sec.  201.3(c).
* * * * *

0
4. Amend Sec.  201.34 by revising paragraph (e)(1) to read as follows:


Sec.  201.34  Procedures for filing Correction Notices of Intent to 
Enforce a Copyright Restored under the Uruguay Round Agreements Act.

* * * * *
    (e) Fee--(1) Amount. The filing fee for recording Correction NIEs 
is prescribed in Sec.  201.3(c).
* * * * *

0
5. Amend Sec.  201.39 by revising paragraph (g)(2) to read as follows:


Sec.  201.39  Notice to Libraries and Archives of Normal Commercial 
Exploitation or Availability at Reasonable Price.

* * * * *
    (g) * * *
    (2) Amount. The filing fee for recording Notice to Libraries and 
Archives is prescribed in Sec.  201.3(d).
* * * * *

PART 202--REGISTRATION OF CLAIMS TO COPYRIGHT

0
6. The authority citation for part 202 continues to read as follows:

    Authority: 17 U.S.C. 408, 702.


0
7. Amend Sec.  202.12 as follows:
0
a. by revising paragraphs (c)(2) and (c)(3)(i)
0
b. by removing paragraph (c)(5).
    The additions and revisions to Sec.  202.12 read as follows:


Sec.  202.12  Restored Copyrights

* * * * *
    (c) * * *
    (2) GATT form. Application for registration for works restored to 
copyright protection under URAA should be made on Form GATT. 
Application for registration for a group of works published under a 
single series title and published within the same calendar year should 
also be made on Form GATT. The GATT form may be obtained by writing or 
calling the Copyright Office Hotline at (202) 707-9100. In addition, 
legible photocopies of this form are acceptable if reproduced on good 
quality 8\1/2\ by 11 inch white paper and printed head to head so that 
page two is printed on the back of page one.
    (3) Fee--(i) Amount. The filing fee for registering a copyright 
claim in a restored work is prescribed in Sec.  201.3(c).
* * * * *

0
8. Amend Sec.  202.16 by revising paragraph (c)(5)(i) to read as 
follows:


Sec.  202.16  Preregistration of copyrights.

* * * * *
    (c) * * *
    (5) * * *
    (i) Amount. The filing fee for preregistration is prescribed in 
Sec.  201.3(c).
* * * * *

PART 212--PROTECTION OF VESSEL HULL DESIGNS

0
9. The authority citation for Part 212 continues to read as follows:

    Authority: 17 U.S.C. chapter 13.


0
10. Revise Sec.  212.2 to read as follows:


Sec.  212.2  Fees.

    Services related to registration of original designs of vessel 
hulls are subject to fees prescribed in Sec. Sec.  201.3(c) and (d).

    Dated: May 24, 2006.
Marybeth Peters,
Register of Copyrights.
    Approved by:
James H. Billington,
The Librarian of Congress.
[FR Doc. 06-5046 Filed 5-31-06; 8:45 am]
BILLING CODE 1410-30-P