[Federal Register Volume 73, Number 58 (Tuesday, March 25, 2008)]
[Notices]
[Page 15778]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-6068]


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LIBRARY OF CONGRESS

Copyright Royalty Board


Notice of Intent To Audit

AGENCY: Copyright Royalty Board, Library of Congress.

ACTION: Public notice.

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SUMMARY: The Copyright Royalty Judges are announcing receipt of a 
notice of intent to audit the 2006 and 2007 statements of account 
submitted by Last.fm, Ltd. concerning the royalty payments made under 
two statutory licenses.

FOR FURTHER INFORMATION CONTACT: Richard Strasser, Senior Attorney, or 
Gina Giuffreda, Attorney Advisor, by telephone at (202) 707-7658 or e-
mail at [email protected].

SUPPLEMENTARY INFORMATION: In 1995, Congress enacted the Digital 
Performance Right in Sound Recordings Act of 1995 (``DPRA''), Public 
Law No. 104-39, which created an exclusive right for copyright owners 
of sound recordings subject to certain limitations, to perform publicly 
sound recordings by means of certain digital audio transmissions. Among 
the limitations on the performance right was the creation of a 
compulsory license for nonexempt noninteractive digital subscription 
transmissions. 17 U.S.C. 114(f).
    Section 114 was later amended with the passage of the Digital 
Millennium Copyright Act of 1998 (``DMCA'' or ``the Act''), Public Law 
No. 105-304, to cover additional digital audio transmissions, including 
eligible nonsubscription transmissions.\1\ In addition to expanding the 
section 114 license, the DMCA also created a statutory license to allow 
a service to make any necessary ephemeral reproductions to facilitate 
the digital transmission of the sound recording. 17 U.S.C. 112(e).
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    \1\ An ``eligible nonsubscription transmission'' is a 
noninteractive digital audio transmission which, as the name 
implies, does not require a subscription for receiving the 
transmission. The transmission must also be made as a part of a 
service that provides audio programming consisting in whole or in 
part of performances of sound recordings the primary purpose of 
which is to provide audio or entertainment programming, but not to 
sell, advertise, or promote particular goods or services other than 
sound recordings, live concerts, or other music-related events. 17 
U.S.C. 114(j)(6).
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    Licensees may operate under these licenses provided they pay the 
royalty fees and comply with the terms set by the Copyright Royalty 
Judges (the ``Judges''). On May 1, 2007, the Copyright Royalty Judges 
issued their final determination setting rates and terms for the 
section 112 and 114 licenses for the period 2006-2010. 72 FR 24084. As 
part of the terms set for these licenses, the Judges designated 
SoundExchange, Inc. as the organization charged with collecting the 
royalty payments and statements of account and distributing the 
royalties to the copyright owners and performers entitled to receive 
such royalties under the section 112 and 114 licenses. 37 CFR 
380.4(b)(1). As the designated Collective, SoundExchange may conduct a 
single audit of a licensee for any calendar year for the purpose of 
verifying their royalty payments. SoundExchange must first file with 
the Judges a notice of intent to audit a licensee and serve the notice 
on the licensee to be audited. 37 CFR 380.6(b), (c).
    On March 3, 2008, pursuant to 37 CFR 380.6(c), SoundExchange filed 
with the Judges a notice of intent to audit Last.fm, Ltd. for the years 
2006 and 2007.\2\ Section 380.6(c) requires the Judges to publish a 
notice in the Federal Register within 30 days of receipt of the notice 
announcing the Collective's intent to conduct an audit.
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    \2\ SoundExchange also stated in the notice its intent to audit 
Last.fm Ltd. for the calendar year 2005. Verification of statements 
of account for 2005 are governed by 37 CFR 262.6(c) of the Copyright 
Office's regulations.
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    In accordance with 37 CFR 380.6(c), the Copyright Royalty Judges 
are publishing today's notice to fulfill this requirement with respect 
to SoundExchange's notice of intent to audit Last.fm, Ltd. filed on 
March 3, 2008.

    Dated: March 19, 2008.
James Scott Sledge,
Chief Copyright Royalty Judge.
[FR Doc. E8-6068 Filed 3-24-08; 8:45 am]
BILLING CODE 1410-72-P