[Federal Register Volume 82, Number 169 (Friday, September 1, 2017)]
[Notices]
[Pages 41663-41664]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-18569]


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LIBRARY OF CONGRESS

Copyright Royalty Board

[Docket No. 2013-6 CRB DD 2009-2011 (MWF)]


Distribution of the 2009, 2010, and 2011 Digital Audio Recording 
Technology Royalty Funds for the Musical Works Funds

AGENCY: Copyright Royalty Board (CRB), Library of Congress.

ACTION: Notice announcing commencement of proceeding with request for 
Petitions to Participate.

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SUMMARY: The Copyright Royalty Judges announce the commencement of a 
proceeding to determine the distribution of the digital audio recording 
technology royalty fees in the 2009, 2010, and 2011 Musical Works 
Funds. The Judges also announce the date by which a party who wishes to 
participate in this proceeding must file its Petition to Participate 
and the accompanying filing fee, if applicable.

DATES: Petitions to Participate and the filing fee, if applicable, are 
due no later than October 2, 2017.

ADDRESSES: Interested claimants must submit petitions to participate 
and the filing fee, if applicable, identified by docket number 2013-6 
CRB DD 2009-2011 (MWF), by any of the following methods:
    CRB's electronic filing application: Submit comments online in eCRB 
at https://app.crb.gov/.
    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 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.
    Instructions: Unless submitting online, claimants must submit an 
original, five paper copies, and an electronic version on a CD. All 
submissions received must include the board name and docket number. All 
submissions received will be posted without change to eCRB on https://www.crb.gov including any personal information provided.
    Docket: For access to the docket to read background documents or 
comments received, go to eCRB, the Copyright Royalty Board's electronic 
filing and case management system, at https://app.crb.gov/ and search 
for docket number 2013-6 CRB DD 2009-2011 (MWF). For documents not yet 
uploaded to eCRB (because it is a new system), go to the agency Web 
site at https://www.crb.gov/ or contact the CRB Program Specialist.

FOR FURTHER INFORMATION CONTACT: Anita Blaine, CRB Program Specialist, 
by phone at (202) 707-7658 or by email at [email protected].

SUPPLEMENTARY INFORMATION:

Background

    The Audio Home Recording Act of 1992 (``AHRA''), Public Law 102-
563, requires manufacturers and importers to pay royalties on digital 
audio recording devices and media that are distributed in the United 
States. 17 U.S.C. 1003. These royalties are deposited with the 
Copyright Office for further distribution to eligible claimants. 17 
U.S.C. 1005, 1007. Royalties are divided into two funds: The Sound 
Recordings Fund (66\2/3\%) and the Musical Works Fund (33\1/3\%). These 
fees in turn are allocated to specific subfunds. 17 U.S.C. 1006(b). The 
Musical Works Fund, which is the subject of this notice, is divided 
equally between the Music Publishers Subfund and the Writers Subfund. 
17 U.S.C. 1006(b)(2).
    Distribution of these fees may occur in one of two ways. The 
interested copyright parties within each subfund may negotiate the 
terms of a settlement as to the division of royalty funds. If, after 
any such agreements, funds remain in dispute, the Copyright Royalty 
Judges may conduct a proceeding to determine the distribution of the 
royalties that remain in controversy in each subfund. 17 U.S.C. 1006(c) 
& 1007(c).
    On February 4, 2014, the Judges issued an order granting certain 
claimants' (i.e., Broadcast Music, Inc., the American Society of 
Composers, Authors and Publishers, SESAC, Inc., and the Harry Fox 
Agency, Inc.) request for 95% of the Digital Audio Recording Technology 
(``DART'') Musical Works Funds royalties for 2009 through 2011. Order 
Granting Claimants' Request for Partial Distribution of 2009 through 
2011 DART Musical Works Funds Royalties, Docket No. 2013-6 CRB DD 2009-
2011 (MWF).
    On March 16, 2017, the settling claimants \1\ filed a motion 
requesting that the Judges commence a proceeding to determine the 
distribution of the funds for 2009, 2010, and 2011. The settling 
claimants request that the Judges publish a notice in the Federal 
Register to (1) announce commencement of a proceeding, (2) request 
comments on the existence of controversies and petitions to 
participate, and (3) apprise parties of filing fee requirements and 
small claims procedures pursuant to 17 U.S.C.

[[Page 41664]]

803(b)(1) and 1007(c). Motion at 1-2. The settling parties have not 
represented that they have reached an agreement with non-settling 
claimants. Therefore, the Judges conclude that a controversy exists 
with respect to DART Musical Works Funds for royalty years 2009, 2010, 
and 2011.
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    \1\ One of the settling claimants, The Harry Fox Agency LLC, was 
formerly The Harry Fox Agency, Inc.
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    By this notice, the Judges grant the settling claimants' Motion and 
announce the commencement of a proceeding to determine the proper 
distribution of DART Musical Works Funds (both the Musical Publishers 
Subfund and the Writers Subfund) for royalty years 2009, 2010, and 
2011. The Judges granted the settling claimants' request for partial 
distribution pursuant to Section 801(b)(3)(C) of the Copyright Act, 
which authorizes the Judges to order partial distributions 
notwithstanding the existence of ongoing controversies. Consequently, 
all DART Musical Works funds for royalty years 2009, 2010, and 2011 
remain in dispute, notwithstanding the 95% distribution to the settling 
claimants. All settling claimants agreed, at the time of the partial 
distribution, to repay any potential overpayment.

Commencement of Proceeding

    Consistent with 17 U.S.C. 804(b)(8), the Judges determine that, for 
the reasons stated above, a controversy exists with respect to the 
distribution of the 2009, 2010, and 2011 DART Musical Works Funds 
royalties for the Music Publishers Subfund and the Writers Subfund.

Petitions To Participate

    Petitions to Participate must provide all of the information 
required by 37 CFR 351.1(b)(2). Participants also must identify by year 
each subfund in the Musical Works Fund to which they are asserting a 
claim (i.e., Music Publishers or Writers, or both). Petitions to 
Participate submitted by interested parties whose claims do not exceed 
$1,000 must contain a statement that the party will not seek a 
distribution of more than $1,000. 37 CFR 351.1(b)(4). No filing fee is 
required for such parties. Interested parties with claims exceeding 
$1,000, however, must submit a filing fee of $150 with their respective 
Petitions to Participate, or the petition will be rejected. CASH WILL 
NOT BE ACCEPTED. Parties filing online through eCRB must pay by credit 
card. All other parties must pay the filing fee with a check or money 
order made payable to the ``Copyright Royalty Board'' and mailed or 
delivered with a paper claim form, as described in the Addresses 
section above. If a check is returned for lack of sufficient funds, the 
corresponding Petition to Participate will be dismissed.
    Any participant that is an individual may represent herself or 
himself. All other participants must be represented by counsel. In 
accordance with 37 CFR 350.2 (Representation), only attorneys who are 
members of the bar in one or more states or the District of Columbia 
and in good standing will be allowed to represent parties before the 
Copyright Royalty Judges. The Judges will address further procedural 
matters, including scheduling, after Petitions to Participate have been 
filed.

Intention To Conduct a Paper Proceeding

    In accordance with Section 803(b)(5)(B) of the Copyright Act, the 
Judges find it appropriate to conduct a paper proceeding in this matter 
in light of the relatively modest amount of royalties in dispute and 
the anticipated small number of non-settling claimants. In such 
proceedings, the Judges determine issues solely on the basis of the 
filing of a written direct statement by each participant, a response of 
an opposing participant, and one additional response from the 
participant. 17 U.S.C. 803(b)(5). Any party wishing to comment on the 
Judges' intention to conduct a paper proceeding should include such 
comments in its Petition to Participate.

    Dated: August 29, 2017.
Jesse M. Feder,
U.S. Copyright Royalty Judge.
[FR Doc. 2017-18569 Filed 8-31-17; 8:45 am]
BILLING CODE P