[Federal Register Volume 81, Number 80 (Tuesday, April 26, 2016)]
[Notices]
[Pages 24655-24656]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-09635]


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LIBRARY OF CONGRESS

Copyright Royalty Board

[Docket No. 15-CRB-0010-CA]


Adjustment of Cable Statutory License Royalty Rates

AGENCY: Copyright Royalty Board, Library of Congress.

ACTION: Notice announcing partial settlement and commencement of 
further proceedings on the issue of a proposed Sports Rule Surcharge, 
with request for further petitions to participate.

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SUMMARY: The Copyright Royalty Judges (Judges) announce partial 
settlement of the proceeding to adjust the rates for the cable 
statutory license described in section 111 of the Copyright Act (Rate 
Adjustment Proceeding). The Judges also announce commencement of 
further proceedings resulting from action by the Federal Communications 
Commission (FCC) effecting a change in the Sports Rule. Any party that 
has filed a Petition to Participate in the present proceeding may file 
a Notice of Intent to Participate in the Sports Rule Surcharge portion 
of the proceeding without payment of a further filing fee. Any other 
party in interest wishing to participate in the Sports Rule Surcharge 
portion of the proceeding must file its Petition to Participate and pay 
the $150 filing fee.

DATES: Petitions to Participate and the filing fee are due no later 
than May 26, 2016.

ADDRESSES: This notice and request is posted on the agency's Web site 
(www.loc.gov/crb) and on Regulations.gov (www.regulations.gov). Parties 
who plan to participate should see the ``How to Submit Petitions to 
Participate'' sub-section of the Supplementary Information section 
below for physical addresses and further instructions.

FOR FURTHER INFORMATION CONTACT: Kimberly Whittle, Attorney-Advisor, by 
telephone at (202) 707-7658, or by email at [email protected].

SUPPLEMENTARY INFORMATION: 

Background

    Section 111 of the Copyright Act grants a statutory copyright 
license to cable television systems for the retransmission of over-the-
air television and radio broadcast stations to their subscribers. 17 
U.S.C. 111(c). In exchange for the license, cable operators submit 
royalty payments and statements of account detailing their 
retransmissions semiannually to the

[[Page 24656]]

Copyright Office. 17 U.S.C. 111(d)(1). The Copyright Office deposits 
the royalties into the United States Treasury for later distribution to 
copyright owners of the broadcast programming that the cable systems 
retransmit. 17 U.S.C. 111(d)(2).
    A cable system calculates its royalty payments in accordance with 
the statutory formula described in 17 U.S.C. 111(d)(1). Royalty rates 
are based upon a cable system's gross receipts from subscribers who 
receive retransmitted broadcast signals. For rate calculation purposes, 
cable systems are divided into three tiers based on their gross 
receipts (small, medium, and large). 17 U.S.C. 111(d)(1)(B) through 
(F). Both the applicable rates and the tiers are subject to adjustment. 
17 U.S.C. 801(b)(2).
    Every five years persons with a significant interest in the royalty 
rates may file petitions to initiate a proceeding to adjust the rates. 
17 U.S.C. 804(a) and (b). No person with a significant interest filed a 
petition to initiate a proceeding in 2015.\1\ Therefore, the Copyright 
Royalty Judges (Judges) initiated this rate adjustment proceeding 
relating to statutory licenses for the distant retransmission by cable 
systems of over-the-air broadcast radio and television programming. See 
17 U.S.C. 801(b)(2), 803(b)(1), 804(a) and (b), by notice published in 
the Federal Register on June 19, 2015.
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    \1\ The cable rates were last adjusted in 2005. Although the 
Judges commenced a rate proceeding relating to the 2010 rate 
adjustment, the Judges terminated it when passage of the Satellite 
Television Extension and Localism Act of 2010, Pub. L. 111-175, 
rendered the proceeding unnecessary. Order Granting Request to 
Terminate Proceeding, Docket No. 2010-1 CRB Cable Rate (July 13, 
2010).
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    The Judges received two joint Petitions to Participate, one from a 
group referring to itself as Phase I Parties \2\ and another from the 
National Cable & Telecommunications Association and the American Cable 
Association. The Judges accepted these petitions and commenced a 
Voluntary Negotiation Period (VNP).
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    \2\ The Phase I Parties consist of: Program Suppliers, Joint 
Sports Claimants, Public Television Claimants, Commercial Television 
Claimants, Music Claimants, Canadian Claimants Group, National 
Public Radio, and Devotional Claimants.
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    On November 23, 2015, the Joint Sports Claimants \3\ filed a 
``Petition . . . to Initiate Cable Royalty Rate Adjustment 
Proceedings'' with a self-styled caption indicating a proceeding for 
cable rate adjustments ``for Retransmission of Certain Sports 
Telecasts.'' On December 15, 2015, at the conclusion of the VNP, all 
participants, including the Joint Sports Claimants, notified the Judges 
of a global settlement and asked that cable retransmission rates remain 
unchanged for the rate period 2015 to 2019, inclusive. Given the 
conflicting positions of the Joint Sports Claimants, the Judges 
rejected the proposed global settlement, without prejudice.
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    \3\ The Joint Sports Claimants consist of: The National 
Basketball Association, the National Collegiate Athletic 
Association, the National Football League, the National Hockey 
League, the Office of the Commissioner of Baseball, and the Women's 
National Basketball Association.
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    Settling participants have now asked that the Judges accept the 
negotiated settlement as a ``partial settlement'' and permit continuing 
proceedings to determine whether and to what degree to make a rate 
adjustment under section 801(b)(2)(C). Section 801(b)(2)(C) provides 
for adjustment proceedings \4\ in the event of an FCC rule change 
``with respect to . . . sports program exclusivity. . . .'' The Joint 
Sports Claimants base their separate petition on an FCC rule change, 
viz., repeal of the sports exclusivity rule, effective November 24, 
2014.
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    \4\ Sports program exclusivity proceedings may be conducted 
apart from the quinquennial proceedings required by Sec.  804 of the 
Act.
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    The Judges give this notice and opportunity for additional parties 
to file a Petition to Participate in the extant proceeding. The Judges 
shall continue the proceeding solely for determination of what rate 
adjustment, if any, should result from the FCC rule change. According 
to the Act, any adjustment resulting from the remainder of this 
proceeding shall be limited to those broadcast signals carried on 
systems affected by the FCC rule change. See 17 U.S.C. 801(b)(2)(C).

How To Submit Petitions to Participate

    Any party that has filed a Petition to Participate in the present 
proceeding need only file a Notice of Intent to Participate in the 
Sports Rule Surcharge portion of the proceeding. Any other party 
wishing to participate in the proceeding to determine a Sports Rule 
Surcharge adjustment to the cable royalty rate shall submit to the 
Copyright Royalty Board the filing fee (US $150), an original Petition 
to Participate, five paper copies, and an electronic copy on a CD or 
other portable memory device in Portable Document Format (PDF) that 
contains searchable, accessible text (not a scanned image of text). 
Participants should conform filed electronic documents to the Judges' 
Guidelines for Electronic Documents posted online at www.loc.gov/crb/docs/Guidelinesfor_Electronic_Documents.pdf. Participants shall deliver 
Petitions to Participate to only one of the following addresses.
    U.S. mail: Copyright Royalty Board, PO Box 70977, Washington, DC 
20024-0977; or
    Overnight service (only USPS Express Mail is acceptable): Copyright 
Royalty Board, PO Box 70977, Washington, DC 20024-0977; or
    Commercial courier: Address package to: Copyright Royalty Board, 
Library of Congress, James Madison Memorial Building, LM-403, 101 
Independence Avenue SE., Washington, DC 20559-6000. Deliver to: 
Congressional Courier Acceptance Site, 2nd Street NE. and D Street NE., 
Washington, DC; or
    Hand delivery: Library of Congress, James Madison Memorial 
Building, LM-401, 101 Independence Avenue SE., Washington, DC 20559-
6000.

    Dated: April 20, 2016.
Suzanne M. Barnett,
Chief Copyright Royalty Judge.
[FR Doc. 2016-09635 Filed 4-25-16; 8:45 am]
 BILLING CODE 1410-72-P