[Federal Register Volume 82, Number 51 (Friday, March 17, 2017)]
[Proposed Rules]
[Pages 14167-14170]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-05239]



[[Page 14167]]

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LIBRARY OF CONGRESS

Copyright Royalty Board

37 CFR Parts 350 and 360

[Docket No. 17-CRB-0012-RM]


Copyright Royalty Board Regulations Regarding Filing of Claims to 
Royalty Fees Collected Under Compulsory License

AGENCY: Copyright Royalty Board, Library of Congress.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Copyright Royalty Judges propose to amend regulations 
governing the filing of claims to royalty fees collected under 
compulsory license to reflect implementation of a new electronic filing 
system and to consolidate cable and satellite rules. The Judges solicit 
comments on the proposed rule.

DATES: Comments are due no later than April 17, 2017.

ADDRESSES: Submit electronic comments via email to [email protected]. Those 
who choose not to submit comments electronically should see ``How to 
Submit Comments'' in the SUPPLEMENTARY INFORMATION section below for 
physical addresses and further instructions. The proposed rule is also 
posted on the agency's Web site (www.loc.gov/crb).

FOR FURTHER INFORMATION CONTACT: Program Specialist by telephone at 
(202) 707-7658 or email at [email protected].

SUPPLEMENTARY INFORMATION: On September 23, 2016, the Library of 
Congress awarded a contract for the design and implementation of an 
electronic filing and case management system for the Copyright Royalty 
Board (``Board''). The Copyright Royalty Judges (``Judges'') anticipate 
that the new system will be available for use by claims filers, 
participants in proceedings before the Judges, and other members of the 
public having business with the Board (e.g., persons wishing to comment 
on proposed regulations) by summer 2017. The Judges intend to make use 
of the system mandatory for attorneys representing participants in 
proceedings after a transition period.\1\
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    \1\ The Judges proposed regulations relating specifically to 
implementation of eCRB at 81 FR 84526 (Nov. 23, 2016).
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    As part of the Judges' continuing oversight of the Board's 
procedural regulations, the Judges propose to amend the claims filing 
regulations to accommodate electronic filing of claims. In addition, 
the Judges propose to consolidate nearly identical regulations for 
cable and satellite claims and make other amendments to the claims 
regulation to remove outdated references and enhance readability.

I. Part 350--General Administrative Provisions

    The Judges propose adding a new rule 350.5(c)(3) which would 
provide that any claimant desiring to file with the Copyright Royalty 
Board a claim for distribution of copyright royalties may obtain an 
eCRB password. While filing of claims through eCRB will not be 
mandatory, any claimant wishing to file claims through eCRB will be 
required to obtain an eCRB password. Obtaining a password for claims 
filing will entail filling in a webform and responding to a 
confirmation email to activate the account. The eCRB system will also 
have an automated password recovery feature so that users who have 
forgotten their password can reset their password without human 
intervention.
    The Judges proposed this regulation in the notice soliciting 
comments on the proposed eFiling regulations \2\ but decided to re-
propose it in response to a comment received on the earlier proposal.
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    \2\ See 81 FR 84526.
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II. Part 360--Filing of Claims to Royalty Fees Collected Under 
Compulsory Licenses

    The Judges propose revisions to Part 360 to accommodate filing of 
claims through the new electronic filing system. Proposed new rules 
360.1 through 360.5 (proposed Subpart A) would replace current rules 
360.1 through 360.15 (current Subparts A and B), which separately set 
out the filing requirements for cable and satellite claims. The current 
rules contain redundant information, which the Judges propose to 
remove. In addition, the proposal makes reference, where applicable, to 
the new electronic filing system (eCRB). The proposal also adds a new 
definition section (rule 360.2), which would define the terms cable 
compulsory license royalty fees and satellite compulsory license 
royalty fees.
    Regulations for Digital Audio Recording Devices and Media Royalty 
Claims (DART), currently in rules 360.20 through 360.25 (Subpart C), 
would be redesignated as 360.20 through 360.24 (Subpart B). For the 
most part, the substance of the current DART rules would be retained, 
although the proposal makes applicable references to eCRB. In addition, 
proposed new rule 360.24 sets out the notice requirements of 
independent administrators appointed to manage and distribute royalty 
payments to nonfeatured musicians and vocalists and updates the timing 
of those administrators' notices. These provisions currently appear in 
rule 360.23.
    Finally, the proposal would add a new Subpart C: Rules of General 
Application, which would address amendment of claims (proposed new rule 
360.30), withdrawal of claims (proposed new rule 360.31), and 
reinstatement of previously withdrawn claims (proposed new rule 
360.23). The Judges believe that these proposals will provide important 
guidance on the process for amending, withdrawing, and reinstating 
claims.
    The Judges solicit comments on the rule proposal as a whole and on 
each of the proposed rules. In particular, the Judges seek comment on 
whether the proposed new rules that consolidate the cable and satellite 
claims filing rules enhances the clarity of those rules and 
appropriately reduces unnecessary redundancies. The Judges also seek 
comment on whether there are other opportunities within these proposed 
rules to further enhance clarity or whether separate rules for cable 
and satellite filings would be more appropriate. The Judges also seek 
comments on whether the proposed rules appropriately integrate 
references to eCRB. Finally, the Judges seek comment on the proposed 
new rules addressing the claim amendment, withdrawal, and reinstatement 
process. Are the proposed procedures reasonable and appropriate or 
would other procedures work better? If so, please specify those 
procedures and why they might be more appropriate than the ones the 
Judges propose. Are there procedures or other considerations not in the 
proposed claim amendment, withdrawal, and reinstatement process that 
the Judges should consider?

How To Submit Comments

    Interested members of the public must submit comments to only one 
of the following addresses. If not commenting by email or online, 
commenters must submit an original of their comments, five paper 
copies, and an electronic version on a CD.
    Email: [email protected]; or
    U.S. mail: Copyright Royalty Board, P.O. Box 70977, Washington, DC 
20024-0977; or
    Overnight service (only USPS Express Mail is acceptable): Copyright 
Royalty Board, P.O. Box 70977, Washington, DC 20024-0977; or
    Commercial courier: Address package to: Copyright Royalty Board, 
Library of Congress, James Madison Memorial

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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.

List of Subjects

37 CFR Part 350

    Copyright Royalty Judges Rules and Procedures, General 
administrative provisions.

37 CFR Part 360

    Filing of claims to royalty fees collected under compulsory 
license.

Proposed Regulations

    For the reasons set forth in the preamble, and under the authority 
of chapter 8, title 17, United States Code, the Copyright Royalty 
Judges propose to amend parts 350 and 360 of Title 37 of the Code of 
Federal Regulations as follows:

Subchapter B--Copyright Royalty Judges Rules and Procedures

PART 350--GENERAL ADMINISTRATIVE PROVISIONS

0
1. The authority citation for part 350 continues to read:

    Authority:  17 U.S.C. 803.

0
2. In Sec.  350.5 revise paragraph (c)(3) to read as follows:


Sec.  350.5  Electronic Filing System.

* * * * *
    (c) * * *
* * * * *
    (3) Claimants. Any person desiring to file a claim with the 
Copyright Royalty Board for copyright royalties may obtain an eCRB 
password for the limited purpose of filing claims by completing the 
application form available on the CRB Web site.
* * * * *

Subchapter C--Submission of Royalty Claims

PART 360--FILING OF CLAIMS TO ROYALTY FEES COLLECTED UNDER 
COMPULSORY LICENSE

0
3. Revise part 360 to read as follows:
Subpart A--Cable and Satellite Claims
Sec.
360.1 General.
360.2 Definitions.
360.3 Time of filing.
360.4 Form and content of claims.
360.5 Copies of claims.
Subpart B--Digital Audio Recording Devices and Media Royalty Claims
360.20 General.
360.21 Time of filing.
360.22 Form and content of claims.
360.23 Copies of claims.
360.24 Content of notices regarding independent administrators.
Subpart C--Rules of General Application
360.30 Amendment of Claims.
360.31 Withdrawal of Claims.
360.32 Reinstatement of Previously Withdrawn Claims.

    Authority:  17 U.S.C. 801, 803, 805.
    Subpart A also issued under 17 U.S.C. 111(d)(4) and 119(b)(4).
    Subpart B also issued under 17 U.S.C. 1007(a)(1).
    Subpart C also issued under 17 U.S.C. 111(d)(4), 119(b)(4) and 
1007(a)(1).

Subpart A--Cable and Satellite Claims


Sec.  360.1  General.

    This subpart prescribes procedures under 17 U.S.C. 111(d)(4)(A) and 
17 U.S.C. 119(b)(4) whereby parties claiming entitlement to cable 
compulsory license royalty fees or satellite compulsory license royalty 
fees must file claims with the Copyright Royalty Board.


Sec.  360.2  Definitions.

    For purposes of this subpart, the following definitions will apply:
    Cable compulsory license royalty fees means royalty fees deposited 
with the Copyright Office pursuant to 17 U.S.C. 111.
    Satellite compulsory license royalty fees means royalty fees 
deposited with the Copyright Office pursuant to 17 U.S.C. 119.


Sec.  360.3  Time of filing.

    (a) During the month of July each year, any party claiming to be 
entitled to cable compulsory license royalty fees or satellite 
compulsory license royalty fees for secondary transmissions during the 
preceding calendar year must file a claim or claims with the Copyright 
Royalty Board. No party will receive royalty fees for secondary 
transmissions during the specified period unless the party has filed a 
timely claim to the fees. Claimants may file claims jointly or as a 
single claim. Claimants must file separate claims for cable compulsory 
license royalty fees and satellite compulsory license royalty fees. The 
Copyright Royalty Board will reject any claim that purports to be for 
both cable and satellite royalty fees.
    (b) Claims filed with the Copyright Royalty Board will be 
considered timely filed only if they are filed online through eCRB or 
by mail or hand delivery in accordance with section 301.2 during the 
month of July, as determined in accordance with section 350.7.
    (c) Notwithstanding paragraphs (a) and (b) of this section, in any 
year in which July 31 falls on a Saturday, Sunday, holiday, or other 
nonbusiness day within the District of Columbia or the Federal 
Government, the due date for claims to cable or satellite compulsory 
license royalty fees will be the first business day in August.
    (d) In the event the Copyright Royalty Board does not receive a 
claim that was properly addressed and mailed, the filer may prove 
proper filing of the claim if it was sent by certified mail return 
receipt requested, and the filer produces a receipt bearing a July date 
stamp of the United States Postal Service. The Copyright Royalty Board 
will accept no other offer of proof in lieu of the return receipt.
    (e) For claims filed electronically through eCRB, the Copyright 
Royalty Board will accept the confirmation email generated by eCRB as 
proof of filing. The Copyright Royalty Board will accept no other offer 
of proof regarding claims filed electronically through eCRB.


Sec.  360.4  Form and content of claims.

    (a) Forms. (1) Each filer must use the form prescribed by the 
Copyright Royalty Board to claim cable compulsory license royalty fees 
or satellite compulsory license royalty fees, and must provide all 
information required by that form and its accompanying instructions.
    (2) Copies of claim forms are available:
    (i) On the Copyright Royalty Board Web site at http://www.crb.gov/claims/ during the month of July for claims filed with the Copyright 
Royalty Board by mail or by hand delivery;
    (ii) On the Copyright Royalty Board Web site at http://www.loc.gov/cable/ (for cable claims) or http://www.crb.gov/satellite/ (for 
satellite claims) during the month of July for claims filed online 
through eCRB; and
    (iii) Upon request to the Copyright Royalty Board by mail at the 
address set forth in section 301.2(a), by email at the address set 
forth in section 301.2(d), or by telephone at (202) 707-7658.
    (b) Content--(1) Single claim. A claim filed on behalf of a single 
copyright owner of a work or works secondarily transmitted by a cable 
system or satellite carrier must include the following information:
    (i) The full legal name, address, and email address of the 
copyright owner entitled to claim the royalty fees.

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    (ii) A general statement of the nature of the copyright owner's 
work(s), and identification of at least one secondary transmission by a 
cable system or satellite carrier, as the case may be, of one of the 
copyright owner's works establishing a basis for the claim.
    (iii) The name, telephone number, full mailing address, and email 
address of the person or entity filing the single claim. The 
information contained in a filer's eCRB profile shall fulfill this 
requirement for claims submitted through eCRB.
    (iv) The name, telephone number, and email address of the person 
whom the Copyright Royalty Board can contact regarding the claim.
    (v) An original signature of the copyright owner or of a duly 
authorized representative of the copyright owner, except for claims 
filed online through eCRB.
    (vi) A declaration of authority to file the claim and a 
certification of the veracity of the information contained in the claim 
and the good faith of the person signing in providing the information. 
Penalties for fraud and false statements are provided under 18 U.S.C. 
1001 et seq.
    (2) Joint claim. A claim filed on behalf of more than one copyright 
owner whose works have been secondarily transmitted by a cable system 
or satellite carrier must include the following information:
    (i) With the exception of joint claims filed by a performing rights 
organization on behalf of its members, a list including the full legal 
name, address, and email address of each copyright owner whose claim(s) 
are included in the joint claim. Claims filed online through eCRB must 
include an Excel spreadsheet containing the information if the number 
of joint claimants is in excess of ten. A performing rights 
organization is not required to list the name of each of its members or 
affiliates in the joint claim.
    (ii) A concise statement of the authorization by each named 
claimant for the person or entity to file the joint claim. For this 
purpose, a performing rights organization shall not be required to 
obtain from its members or affiliates separate authorizations, apart 
from their standard membership affiliation agreements.
    (iii) A general statement of the nature of the copyright owners' 
works, identification of at least one secondary transmission of one 
work by each identified copyright owner that has been secondarily 
transmitted by a cable system or satellite carrier establishing a basis 
for the joint claim.
    (iv) The name, telephone number, full mailing address, and email 
address of the person or entity filing the joint claim. The information 
contained in a filer's eCRB profile shall fulfill this requirement for 
claims submitted through eCRB.
    (v) The name, telephone number, and email address of a person whom 
the Copyright Royalty Board can contact regarding the claim.
    (vi) Original signatures of the copyright owners identified on the 
joint claim or of a duly authorized representative or representatives 
of the copyright owners, except for claims filed online through eCRB.
    (vii) Notwithstanding paragraph (b)(2)(ii) of this section, a 
declaration of authority to file the claim and a certification of the 
veracity of the information contained in the claim and the good faith 
of the person signing in providing the information. Penalties for fraud 
and false statements are provided under 18 U.S.C. 1001 et seq.
    (c) In the event the legal name and/or address of the copyright 
owner entitled to royalties or the person or entity filing the claim 
changes after the filing of the claim, the filer or the copyright owner 
shall notify the Copyright Royalty Board of the change. Any other 
proposed changes or amendments must be submitted in accordance with 37 
CFR 360.30. If the good faith efforts of the Copyright Royalty Board to 
contact the copyright owner or filer are frustrated because of outdated 
or otherwise inaccurate contact information, the claim may be subject 
to dismissal. A person or entity that filed a claim online through eCRB 
must notify the Copyright Royalty Board of any change of name or 
address by updating the eCRB profile for that person or entity through 
eCRB as required by 37 CFR 350.5(g).


 Sec.  360.5  Copies of claims.

    Following the instructions outlined in 37 CFR 301.2, a claimant 
must file an original and one copy of the claim to cable or satellite 
compulsory license royalty fees at the address(es) listed for each 
claim submitted to the Copyright Royalty Board by hand delivery or by 
U.S. mail.

Subpart B--Digital Audio Recording Devices and Media Royalty Claims


Sec.  360.20  General.

    This subpart prescribes procedures whereby an interested copyright 
party, as defined in 17 U.S.C. 1001(7), claiming to be entitled to 
royalty payments made for the importation and distribution in the 
United States, or the manufacture and distribution in the United 
States, of digital audio recording devices and media (DART) pursuant to 
17 U.S.C. 1006, shall file claims with the Copyright Royalty Board.


Sec.  360.21  Time of filing.

    (a) General. During January and February of each year, every 
interested copyright party claiming to be entitled to DART royalty 
payments made for quarterly periods ending during the previous calendar 
year must file a claim with the Copyright Royalty Board. Claimants may 
file claims jointly or as a single claim.
    (b) Consequences of an untimely filing. No royalty payments for the 
previous calendar year will be distributed to any interested copyright 
party who has not filed a claim to those royalty payments during 
January or February of the following calendar year.
    (c) Authorization. Any organization or association acting as a 
common agent for collection and distribution of DART royalty fees must 
obtain from its members or affiliates separate, specific, and written 
authorization, signed by members, affiliates, or their representatives, 
apart from their standard affiliation agreements, for purposes of 
royalties claim filing and fee distribution relating to the DART 
Musical Works Fund or Sound Recordings Fund. The written authorization, 
however, will not be required for claimants to the Musical Works Fund 
when either:
    (1) The agreement between the organization or association and its 
members or affiliates specifically authorizes the entity to represent 
its members or affiliates as a common agent before the Copyright 
Royalty Board in royalty claims filing and fee distribution 
proceedings; or
    (2) The agreement between the organization or association and its 
members or affiliates, as specified in a court order issued by a court 
with authority to interpret the terms of the contract, authorizes the 
entity to represent its members or affiliates as a common agent before 
the Copyright Royalty Board in royalty claims filing and fee 
distribution proceedings.


Sec.  360.22  Form and content of claims.

    (a) Forms. (1) Each claim to DART royalty payments must be 
furnished on a form prescribed by the Copyright Royalty Board and must 
contain the information required by that form and its accompanying 
instructions.
    (2) Copies of DART claim forms are available:
    (i) On the Copyright Royalty Board's Web site at http://
www.crb.gov/claims

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for claims filed with the Copyright Royalty Board by mail or by hand 
delivery;
    (ii) On the Copyright Royalty Board's Web site at http://www.crb.gov/dart/ during the months of January and February for claims 
filed online through eCRB; and
    (iii) Upon request to the Copyright Royalty Board, by mail at the 
address set forth in section 301.2(a), by email at the address set 
forth in section 301.2(d), or by telephone at (202) 707-7658.
    (b) Content. Claims filed by interested copyright parties for DART 
royalty payments must include the following information:
    (1) The full legal name and address of the person or entity 
claiming royalty payments.
    (2) The name, telephone number, full mailing address, and email 
address of the person or entity filing the claim. The information 
contained in a filer's eCRB profile will fulfill this requirement for 
claims submitted through eCRB.
    (3) The name, telephone number, and email address of a person whom 
the Copyright Royalty Board can contact regarding the claim.
    (4) A statement as to how the claimant fits within the definition 
of interested copyright party.
    (5) A statement as to whether the claim is being made against the 
Sound Recordings Fund or the Musical Works Fund, as set forth in 17 
U.S.C. 1006(b), and as to which Subfund the claim is made. The Subfunds 
for the Sound Recordings Fund are the copyright owners subfund and the 
featured recording artists subfund, The Subfunds for the Musical Works 
Fund are the music publishers subfund and the writers subfund, as 
described in 17 U.S.C. 1006(b)(1) through (2).
    (6) Identification, establishing a basis for the claim, of at least 
one musical work or sound recording embodied in a digital musical 
recording or an analog musical recording lawfully made under title 17 
of the United States Code that has been distributed (as that term is 
defined in 17 U.S.C. 1001(6)), and that, during the period to which the 
royalty payments claimed pertain, has been (i) Distributed (as that 
term is defined in 17 U.S.C. 1001(6)) in the form of digital musical 
recordings or analog musical recordings, or (ii) Disseminated to the 
public in transmissions.
    (7) A declaration of the authority to file the claim and of the 
veracity of the information contained in the claim and the good faith 
of the person signing in providing the information. Penalties for fraud 
and false statements are provided under 18 U.S.C. 1001 et seq.
    (c) Claims must bear the original signature of the claimant or of a 
duly authorized representative of the claimant, except for claims filed 
online through eCRB.
    (d) In the event that the legal name and/or address of the claimant 
changes after the filing of the claim, the claimant must notify the 
Copyright Royalty Board of the change. Any other proposed changes or 
amendments must be submitted in accordance with 37 CFR 360.30. If the 
good faith efforts of the Copyright Royalty Board to contact the 
claimant are frustrated because of failure to notify the Copyright 
Royalty Board of a name and/or address change, the claim may be subject 
to dismissal. A person or entity that filed a claim online through eCRB 
must notify the Copyright Royalty Board of any change of name or 
address by updating that person or entity's eCRB profile as required by 
section 350.5(g).
    (e) If the claim is a joint claim, it must include a concise 
statement of the authorization for the filing of the joint claim in 
addition to the declaration required under paragraph (b)(7) of this 
section and the name of each claimant to the joint claim.
    (f) If an interested copyright party intends to file claims against 
more than one Subfund, each Subfund claim must be filed separately with 
the Copyright Royalty Board. The Copyright Royalty Board will reject 
any claim that purports to claim funds from more than one Subfund.


Sec.  360.23  Copies of claims.

    Following the instructions outlined in 37 CFR 301.2, a claimant 
must file an original and one copy of the claim to cable or satellite 
compulsory license royalty fees at the address(es) listed for each 
claim submitted to the Copyright Royalty Board by hand delivery or by 
U.S. mail.


Sec.  360.24  Content of notices regarding independent administrators.

    (a) The independent administrator jointly appointed by the 
interested copyright parties, as defined in 17 U.S.C. 1001(7)(A), and 
the American Federation of Musicians (or any successor entity) for the 
purpose of managing and ultimately distributing royalty payments to 
nonfeatured musicians as defined in 17 U.S.C. 1006(b)(1), must file a 
notice informing the Copyright Royalty Board of his/her name and 
address.
    (b) The independent administrator jointly appointed by the 
interested copyright parties, as defined in 17 U.S.C. 1001(7)(A) and 
the American Federation of Television and Radio Artists (or any 
successor entity) for the purpose of managing and ultimately 
distributing royalty payments to nonfeatured vocalists as defined in 17 
U.S.C. 1006(b)(1), must file a notice informing the Copyright Royalty 
Board of his/her full name and address.
    (c) A notice filed under paragraph (a) or (b) of this section must 
include the full name, telephone number, mailing address, and email 
address of the place of business of the independent administrator.
    (d) The independent administrator must file the notices identified 
in paragraphs (a) and (b) of this section through eCRB no later than 
March 31 of each year, commencing with March 31, 2018.

Subpart C--Rules of General Application


Sec.  360.30  Amendment of Claims.

    Any claimant may amend a filed claim as of right by filing a Notice 
of Amendment during the statutory period for filing annual claims. 
After the expiration of the time for filing claims, a claimant may 
amend a claim only by order of the Copyright Royalty Judges, on motion 
showing good cause and lack of prejudice to other claimants to the 
applicable year's royalty funds. No filer may amend a filed claim to 
add additional claimants after the expiration of the time for filing 
claims.


Sec.  360.31  Withdrawal of Claims.

    Any claimant may withdraw its claim for any royalty year as of 
right by filing a Notice of Withdrawal of Claim(s). If a single 
claimant filed a Petition to Participate in a proceeding, withdrawal of 
the claim shall serve to dismiss the Petition to Participate. If the 
claimant withdrawing a claim was included on the Petition to 
Participate of another entity, withdrawal of the claim shall not affect 
the Petition to Participate as to other claims listed thereon.


Sec.  360.32  Reinstatement of Previously Withdrawn Claims.

    Once a claimant has withdrawn a claim, that claim may be reinstated 
only by order of the Copyright Royalty Judges, on motion showing good 
cause and lack of prejudice to other claimants to the applicable year's 
royalty funds.

    Dated: March 10, 2017.
Jesse M. Feder,
Copyright Royalty Judge.
[FR Doc. 2017-05239 Filed 3-16-17; 8:45 am]
 BILLING CODE 1410-72-P