[Federal Register Volume 72, Number 232 (Tuesday, December 4, 2007)]
[Notices]
[Pages 68198-68199]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-23520]


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LIBRARY OF CONGRESS

Copyright Office

[Docket No. 2007-12]


Section 119 and the Changes in the Consumer Price Index

AGENCY: Copyright Office, Library of Congress.

ACTION: Notice of Rate Adjustment.

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SUMMARY: The Library of Congress, through the Copyright Office, is 
announcing an upcoming royalty rate adjustment for satellite carriers 
based upon changes in the Consumer Price Index.

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

SUPPLEMENTARY INFORMATION: Pursuant to Section 119(c) and our 
implementing rules, we are hereby giving notice to the public that 
royalty rates will be adjusted for the accounting period commencing 
January 1, 2008, based on changes in the Consumer Price Index. This 
action is consistent with voluntary agreements reached between 
satellite carriers and copyright owners under the Copyright Act.
    Section 119 and royalty payments for analog television signals. In 
2004, Congress enacted the Satellite Home Viewer Extension and 
Reauthorization Act (``SHVERA''). SHVERA extended for an additional 
five years the statutory license for satellite carriers retransmitting 
over-the-air television broadcast stations to their subscribers and 
made a number of amendments to the license. One of the amendments to 
Section 119 sets forth a process for adjusting the royalty fees paid by 
satellite carriers for retransmitting analog television network and 
superstations. 17 U.S.C. 119(c)(1). The law directs the Librarian of 
Congress to publish notice in the Federal Register requesting satellite 
carriers, distributors and copyright owners to submit to the Copyright 
Office any voluntary agreements they have negotiated as to the 
adjustment of the rates for analog stations. The Library published such 
a notice on December 30, 2004, and, pursuant to the statute, requested 
that any agreements be submitted no later than January 10, 2005. 69 FR 
78482 (December 30, 2004).
    The Office received one agreement, submitted jointly by the 
satellite carriers DirecTV, Inc. and EchoStar Satellite L.L.C., the 
copyright owners of motion pictures and syndicated television series 
represented by the Motion Picture Association of America, and the 
copyright owners of sports programming represented by the Office of the 
Commissioner of Baseball. Section 119(c)(1)(D)(ii)(II) requires the 
Library to ``provide public notice of the royalty fees from the 
voluntary agreement and afford parties an opportunity to state that 
they object to those fees.'' 17 U.S.C. 119(c)(1)(D)(ii)(II). The 
Library published a Notice of Proposed Rulemaking on January 26, 2005, 
to fulfill this requirement. 70 FR 3656 (January 26, 2005). No 
objections were received. Consequently, the Library adopted the rates 
in the voluntary agreement as final. 70 FR 17320 (Apr. 6, 2005).
    The terms and conditions of the agreement were codified at Section 
258.3 of the Copyright Office's rules. Paragraph (g) of this rule 
specifically states, with regard to private home viewing, that the 2007 
rate per subscriber per month for distant superstations and network 
stations shall be adjusted for the amount of inflation as measured by 
the change in the Consumer Price Index for all urban consumers from 
January 2007 to January 2008. For viewing in commercial establishments, 
the 2007 rate per subscriber per month for viewing distant 
superstations in commercial establishments shall be adjusted for the 
amount of inflation as measured by the change in the Consumer Price 
Index for all urban consumers from January 2007 to January 2008.
    Section 119 and royalty payments for digital television signals. 
Another amendment to Section 119 promulgated by SHVERA set forth a 
process, for the first time, for adjusting the royalty fees paid by 
satellite carriers for the retransmission of digital broadcast signals. 
17 U.S.C. 119(c)(2). The law set the initial rates as the rates set by 
the Librarian in 1997 for the retransmission of analog broadcast 
signals, 37 CFR 258.3(b)(1)-(2), reduced by 22.5 percent. 17 U.S.C. 
119(c)(2)(A). These rates are to be adjusted in accordance with the 
procedures set forth in Section 119(c)(1) as directed by Section 
119(c)(2) of the Copyright Act.
    On March 8, 2005, the Copyright Office received a letter from 
EchoStar Satellite, L.L.C., DirecTV, Inc., Program Suppliers, and the 
Joint Sports Claimants requesting that the Office begin the process of 
setting the rates for the retransmission of digital broadcast signals 
by initiating a voluntary negotiation period so that rates for both 
digital and analog signals would be in place before the July 31, 2005, 
deadline for satellite carriers to pay royalties for the first 
accounting period of 2005. The Office granted the request and, pursuant 
to Section 119(c)(1), published a Notice in the Federal Register 
initiating a voluntary negotiation period and requesting that any 
agreements reached during this period be submitted no later than April 
25, 2005. See 70 FR 15368 (March 25, 2005).
    In accordance with the March 25 Notice, the Office received one 
agreement, submitted jointly by the satellite carriers EchoStar 
Satellite L.L.C. and DirecTV, Inc., the copyright owners of motion 
pictures and syndicated television series represented by the Motion 
Picture Association of America, and the copyright owners of sports 
programming represented by the Office of the Commissioner of Baseball. 
The agreement proposed rates for the private home viewing of distant 
superstations and distant network stations for the 2005-2009 period, as 
well as the viewing of those signals for commercial establishments.
    As required by statute, the Library provided public notice of the 
royalty fees from the voluntary agreement and afforded parties an 
opportunity to state that they object to those fees. 17 U.S.C. 
119(c)(1)(D)(ii)(II). The Library published a Notice of Proposed 
Rulemaking on May 17, 2005, to fulfill this requirement. 70 FR 28231 
(May 17, 2005). The Office received no objections as a result of the 
Notice. Consequently, the Library adopted the rates as set forth in the 
voluntary agreement as final. 70 FR 39178 (Jul. 7, 2006).
    The terms and conditions of the agreement were codified at Section 
258.4 of the Copyright Office's rules. Paragraph (d) of the rule states 
the royalty rate for secondary transmission of digital signals of 
broadcast stations by satellite carriers and the process for 
readjusting the rates for the accounting period commencing on January 
1, 2008. For private home viewing, the 2007 rate per subscriber per 
month for distant superstations and network stations shall be adjusted 
for the amount of inflation

[[Page 68199]]

as measured by the change in the Consumer Price Index for all Urban 
Consumers from January 2007 to January 2008. For viewing in commercial 
establishments, the 2007 rate per subscriber per month for viewing 
distant superstations in commercial establishments shall be adjusted 
for the amount of inflation as measured by the change in the Consumer 
Price Index for all Urban Consumers from January 2007 to January 2008.
    Conclusion. The Office shall be adjusting the royalty rates for the 
secondary transmission of the analog and digital transmissions of 
network and superstations to reflect changes in the Consumer Price 
Index for all Urban Consumers from January 2007 to January 2008. 
Another notice will be published after January 1, 2008, to announce the 
new CPI adjustments.

    Dated: November 29, 2007.
Tanya M. Sandros,
General Counsel
[FR Doc. E7-23520 Filed 12-3-07; 8:45 am]
BILLING CODE 1410-30-S