[Federal Register Volume 73, Number 52 (Monday, March 17, 2008)]
[Rules and Regulations]
[Pages 14183-14185]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-5301]


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LIBRARY OF CONGRESS

Copyright Office

37 CFR Part 258

[Docket No. RM 2008-3]


Section 119 and the Changes in the Consumer Price Index

AGENCY: Copyright Office, Library of Congress.

ACTION: Final rule.

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[[Page 14184]]

SUMMARY:  The Copyright Office makes royalty rate adjustments for 
satellite carriers based upon changes in the Consumer Price Index.

EFFECTIVE DATE: March 17, 2008. These rates are applicable for the rate 
period of January 1, 2008, through December 31, 2008.

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 of the 
Office's adoption of royalty rate adjustments 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 Section 119 license. One of the 
amendments sets forth a process for adjusting the royalty fees paid by 
satellite carriers for retransmitting analog television networks and 
superstations. 17 U.S.C. 119(c)(1). The law directed the Librarian of 
Congress to publish a notice in the Federal Register announcing the 
initiation of a voluntary negotiation period, the result of which may 
be a rate settlement between the parties. 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). The Library 
subsequently 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. Subpart (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. Similarly, for viewing in commercial 
establishments, the 2007 rate per subscriber per month for viewing 
distant superstations in commercial establishments shall also 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 SHVERA amendment to Section 119 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 initial rates were the rates set by the Librarian in 
1997 for the retransmission of analog broadcast signals, 37 CFR 
258.3(b)(1) and (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 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). Consequently, the Library adopted the rates as set 
forth in the voluntary agreement as final. 70 FR 39178 (July. 7, 2005).
    The terms and conditions of the agreement were codified at Section 
258.4 of the Copyright Office's rules. Subpart (d) of the rule states 
the royalty rate for secondary transmission of digital signals of 
broadcast stations by satellite carriers for the first three years of 
the licensing period and the process for readjusting the rates for the 
last two years of the five year licensing period (2008 and 2009).
    The Copyright Office's regulations prescribe that the 2008 rates 
should be adjusted according to the following schedule. For private 
home viewing, the 2007 rate per subscriber per month for distant 
superstations and network stations is to 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 is to 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.
    2008 rates. In December 2007, the Copyright Office published a 
notice in the Federal Register announcing that it will 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

[[Page 14185]]

consumers from January 2007 to January 2008. 72 FR 68198 (Dec. 4, 
2007). Through this final rule, we hereby announce those changes.
    The change in the cost of living as determined by the Consumer 
Price Index (all consumers, all items) for the relevant period is 4.3% 
(January 2007 figure was 202.4; the figure for January 2008 is 211.080, 
based on 1982-1984 = 100 as a reference base). Rounding off to the 
nearest cent, the new rates are as follows. For private home viewing of 
analog stations: 24 cents per subscriber per month for distant 
superstations and 24 cents per subscriber per month for distant network 
stations. For viewing in commercial establishments: 48 cents per 
subscriber per month for distant superstations. For private home 
viewing of digital stations: 24 cents per subscriber per month for 
distant superstations and 24 cents per subscriber per month for distant 
network stations. For viewing in commercial establishments: 48 cents 
per subscriber per month for distant superstations.

List of Subjects in 37 CFR Part 258

    Copyright, Satellite, Television.

Final Regulations

0
For the reasons set forth above, the Copyright Office amends 37 CFR 
chapter II as follows:

PART 258--ADJUSTMENT OF ROYALTY FEE FOR SECONDARY TRANSMISSIONS BY 
SATELLITE CARRIERS

0
1. The authority citation for part 258 continues to read as follows:

    Authority: 17 U.S.C. 119, 702, 802.

0
2. Section 258.3(g) is revised to read as follows:


Sec.  258.3  Royalty fee for secondary transmission of analog signals 
of broadcast stations by satellite carriers.

* * * * *
    (g) Commencing January 1, 2008, the royalty rate for secondary 
transmission of analog signals of broadcast stations by satellite 
carriers shall be as follows:
    (1) For private home viewing--
    (i) 24 cents per subscriber per month for distant superstations.
    (ii) 24 cents per subscriber per month for distant network 
stations.
    (2) For viewing in commercial establishments, 48 cents per 
subscriber per month for distant superstations.
* * * * *
0
3. Section 258.4(d) is revised to read as follows:


Sec.  258.4  Royalty fee for secondary transmission of digital signals 
of broadcast stations by satellite carriers.

* * * * *
    (d) Commencing January 1, 2008, the royalty rate for secondary 
transmission of digital signals of broadcast stations by satellite 
carriers shall be as follows:
    (1) For private home viewing--
    (i) 24 cents per subscriber per month for distant superstations.
    (ii) 24 cents per subscriber per month for distant network 
stations.
    (2) For viewing in commercial establishments, 48 cents per 
subscriber per month for distant superstations.
* * * * *

    Dated: March 11, 2008
Marybeth Peters,
Register of Copyright.
[FR Doc. E8-5301 Filed 3-14-08; 8:45 am]
BILLING CODE 1410-30-S