[Federal Register Volume 71, Number 154 (Thursday, August 10, 2006)]
[Rules and Regulations]
[Pages 45739-45740]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-13113]


=======================================================================
-----------------------------------------------------------------------

LIBRARY OF CONGRESS

Copyright Office

37 CFR Part 201

[Docket No. RM 2006-4]


Electronic Payment of Royalties

AGENCY: Copyright Office, Library of Congress.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Copyright Office is publishing a final rule amending its 
rules governing the submission of royalty fees to the Copyright Office 
to require such payments to be made by electronic funds transfer.

DATES: October 1, 2006.

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

SUPPLEMENTARY INFORMATION: On April 27, 2006, the Copyright Office 
published a notice of proposed rulemaking seeking comment on amending 
its rules requiring the submission of royalty fees to be made by 
electronic funds transfer. 71 FR 24829 (April 27, 2006). The purpose of 
this notice is to announce the final rule.
    Cable systems and satellite carriers that retransmit broadcast 
signals in accordance with the provisions governing the statutory 
licenses set forth in sections 111 and 119 of the Copyright Act, title 
17 of the United States Code, respectively, are required to pay royalty 
fees to the Copyright Office. The Copyright Office also receives 
statutory fees from manufacturers and importers of digital audio 
recording devices and media who distribute these products in the United 
States. 17 U.S.C. chapter 10. Payments made under the cable and 
satellite carrier statutory licenses are remitted semiannually to the 
Copyright Office. 17 U.S.C. 111(d)(1) and 119(b)(1). Payments made 
under the Audio Home Recording Act of 1992 are made quarterly. 17 
U.S.C. 1003(c). The Copyright Office invests the royalties in United 
States Treasury securities pending distribution of these funds to those 
copyright owners who are entitled to receive a share of the fees. 17 
U.S.C. 111(d)(2), 119(b)(2) and 1005.
    Under the proposed amended regulations, a number of changes were 
made regarding the payment of copyright royalties. The most important 
change was that payment could only be made through an electronic funds 
transfer (``ETF''). This change eliminates the options of payment by 
certified or cashier's check, or money order. Most payors already use 
EFTs, and requiring the use of EFTs substantially enhances the 
efficiency of the collection process. The proposed regulations also 
require that the parties submit specific identifying and linking 
information as part of the EFT, and/or as part of a ``remittance 
advice'' which accompanies Statement(s) of Account and that the 
``remittance advice'' be faxed or emailed to the Licensing Division.
    The new rules allow the Copyright Office to return any EFT which 
fails to properly identify statements to which they relate and requires 
the remitter to resubmit the EFT correctly. Should this occur, the 
remitter will be responsible for any assessed interest charge that 
accrues as a result of a late payment or an underpayment. Additionally, 
the new rules require that ``remittance advice'' information be 
included with Statements of Account in order to accurately identify 
what is submitted and how fees are to be allocated among the 
statements.
    Finally, the new rules include a waiver provision for those 
situations where there may be circumstances which make it virtually 
impossible for a remitter to use the electronic payment option or 
imposes a financial or other hardship. Requests for a waiver must 
include a statement setting forth the reasons why the waiver should be 
granted and the statement must be signed by a duly authorized 
representative of the entity making the payment, certifying that the 
information provided is true and correct.
    In response to the publication of the proposed rules, the Copyright 
Office did not receive any comments. Consequently, the Copyright Office 
is adopting the previously proposed text with minor stylistic changes, 
as final rules.

List of Subjects in 37 CFR Part 201

    Copyright.

Final Regulation

0
In consideration of the foregoing, the Copyright Office is amending 
part 201 of 37 CFR, chapter II in the manner set forth below:

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. Revise Sec.  201.11 (f) to read as follows:


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

* * * * *
    (f) Royalty fee payment. (1) All royalty fees shall be paid by a 
single electronic funds transfer and payment must be received in the 
designated bank by the filing deadline for the relevant accounting 
period. The following information shall be provided as part of the EFT 
and/or as part of the remittance advice as provided for in circulars 
issued by the Copyright Office:
    (i) Remitter's name and address;
    (ii) Name of a contact person, telephone number and extension, and 
email address;
    (iii) The actual or anticipated date that the EFT will be 
transmitted;
    (iv) Type of royalty payment (i.e. satellite);
    (v) Total amount submitted via the EFT;
    (vi) Total amount to be paid by year and period;
    (vii) Number of Statements of Account that the EFT covers;
    (viii) ID numbers assigned by the Licensing Division;
    (ix) Legal name of the owner for each Statement of Account.
    (2) The remittance advice shall be attached to the Statement(s) of 
Account. In addition, a copy of the remittance advice shall be emailed 
or sent by facsimile to the Licensing Division.
    (3) The Office may waive the requirement for payment by electronic 
funds transfer as set forth in paragraph (f)(1) of this section. To 
obtain a waiver, the remitter shall submit to the Licensing Division at 
least 60 days prior to the royalty fee due date a certified statement 
setting forth the reasons explaining why payment by an electronic funds 
transfer would be virtually impossible or, alternatively, why it would 
impose a financial or other hardship on the remitter. The certified 
statement must be signed by a duly authorized representative of the 
entity making the payment. A waiver shall cover only a single payment 
period. Failure to obtain a waiver may result in the remittance being 
returned to the remitter.
* * * * *
0
3. Revise Sec.  201.17(i) to read as follows:

[[Page 45740]]

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

* * * * *
    (i) Royalty fee payment. (1) All royalty fees must be paid by a 
single electronic funds transfer, and must be received in the 
designated bank by the filing deadline for the relevant accounting 
period. The following information must be provided as part of the EFT 
and/or as part of the remittance advice as provided for in circulars 
issued by the Copyright Office:
    (i) Remitter's name and address;
    (ii) Name of a contact person, telephone number and extension, and 
e-mail address;
    (iii) The actual or anticipated date that the EFT will be 
transmitted;
    (iv) Type of royalty payment (i.e. cable);
    (v) Total amount submitted via the EFT;
    (vi) Total amount to be paid by year and period;
    (vii) Number of Statements of Account that the EFT covers;
    (viii) ID numbers assigned by the Licensing Division;
    (ix) Legal name of the owner for each Statement of Account;
    (x) Identification of the first community served (city and state).
    (2) The remittance advice shall be attached to the Statement(s) of 
Account. In addition, a copy of the remittance advice shall be emailed 
or sent by facsimile to the Licensing Division.
    (3) The Office may waive the requirement for payment by electronic 
funds transfer as set forth in paragraph (i)(1) of this section. To 
obtain a waiver, the remitter shall submit to the Licensing Division at 
least 60 days prior to the royalty fee due date a certified statement 
setting forth the reasons explaining why payment by an electronic funds 
transfer would be virtually impossible or, alternatively, why it would 
impose a financial or other hardship on the remitter. The certified 
statement must be signed by a duly authorized representative of the 
entity making the payment. A waiver shall cover only a single payment 
period. Failure to obtain a waiver may result in the remittance being 
returned to the remitter.
* * * * *
0
4. Amend Sec.  201.28 as follows:
0
a. By revising paragraph (e)(3)(ii);
0
b. By redesignating paragraphs (h) through (l) as paragraphs (i) 
through (m) respectively, and adding a new paragraph (h);
0
c. By amending newly redesignated paragraph (j)(1)(ii) to remove 
``(i)(2)'' and add in its place ``(j)(2)'';
0
d. By amending newly redesignated paragraph (j)(3)(i) to remove 
``(i)(3)'' and add in its place ``(j)(3)'';
0
e. By amending newly redesignated paragraph (j)(3)(vi) to remove 
``(i)'' and add in its place ``(j)''.


Sec.  201.28  Statements of account for digital audio recording devices 
or media.

* * * * *
    (e) * * *
    (3) * * *
    (ii) The amount of the royalty payment shall be calculated in 
accordance with the instructions specified in the quarterly Statement 
of Account form. Payment shall be made as specified in Sec.  201.28(h).
* * * * *
    (h) Royalty fee payment. (1) All royalty fees must be paid by a 
single electronic funds transfer, and must be received in the 
designated bank by the filing deadline for the relevant accounting 
period. The following information must be provided as part of the EFT 
and/or as part of the remittance advice as provided for in circulars 
issued by the Copyright Office:
    (i) Remitter's name and address;
    (ii) Name of a contact person, telephone number and extension, and 
email address;
    (iii) The actual or anticipated date that the EFT will be 
transmitted;
    (iv) Type of royalty payment (i.e. DART);
    (v) Total amount submitted via the EFT;
    (vi) Total amount to be paid by year and period;
    (vii) Number of Statements of Account that the EFT covers;
    (viii) ID numbers assigned by the Licensing Division;
    (ix) Legal name of the owner for each Statement of Account.
    (2) The remittance advice shall be attached to the Statement(s) of 
Account. In addition, a copy of the remittance advice shall be emailed 
or sent by facsimile to the Licensing Division.
    (3) The Office may waive the requirement for payment by electronic 
funds transfer as set forth in paragraph (1) of this section. To obtain 
a waiver, the remitter shall submit to the Licensing Division at least 
60 days prior to the royalty fee due date a certified statement setting 
forth the reasons explaining why payment by an electronic funds 
transfer would be virtually impossible or, alternatively, why it would 
impose a financial or other hardship on the remitter. The certified 
statement must be signed by a duly authorized representative of the 
entity making the payment. A waiver shall cover only a single payment 
period. Failure to obtain a waiver may result in the remittance being 
returned to the remitter.
* * * * *

    Dated: July 19, 2006.
Marybeth Peters,
Register of Copyrights.
    Approved by:
James H. Billington,
Librarian of Congress.
[FR Doc. E6-13113 Filed 8-9-06; 8:45 am]
BILLING CODE 1410-30-S