[Federal Register Volume 82, Number 226 (Monday, November 27, 2017)]
[Rules and Regulations]
[Page 55946]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-25480]


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LIBRARY OF CONGRESS

Copyright Royalty Board

37 CFR Part 380

[Docket No. 14-CRB-0001-WR (2016-2020) (COLA 2018)]


Cost of Living Adjustment to Royalty Rates for Webcaster 
Statutory License

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

ACTION: Final rule.

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SUMMARY: The Copyright Royalty Judges announce a cost of living 
adjustment (COLA) in the royalty rates that commercial and 
noncommercial noninteractive webcasters pay for eligible transmissions 
pursuant to the statutory licenses for the public performance of and 
for the making of ephemeral reproductions of sound recordings.

DATES: Effective Date: January 1, 2018.
    Applicability Dates: These rates are applicable to the period 
January 1, 2018, through December 31, 2018.

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

SUPPLEMENTARY INFORMATION: Sections 112(e) and 114(f) of the Copyright 
Act, title 17 of the United States Code, create statutory licenses for 
certain digital performances of sound recordings and the making of 
ephemeral reproductions to facilitate transmission of those sound 
recordings. On May 2, 2016, the Copyright Royalty Judges (Judges) 
adopted final regulations governing the rates and terms of copyright 
royalty payments under those licenses for the license period 2016-2020 
for performances of sound recordings via eligible transmissions by 
commercial and noncommercial noninteractive webcasters. See 81 FR 
26316.
    Pursuant to those regulations, at least 25 days before January 1 of 
each year from 2017 to 2020, the Judges shall publish in the Federal 
Register notice of a COLA applicable to the royalty fees for 
performances of sound recordings via eligible transmissions by 
commercial and noncommercial noninteractive webcasters. 37 CFR 
380.10(a)(1)-(2).
    The adjustment in the royalty fee shall be based on a calculation 
of the percentage increase in the CPI-U from the CPI-U published in 
November 2015 (237.838), according to the formula (1 + (Cy- 
237.838)/237.838) x R2016, where Cy is the CPI-U 
published by the Secretary of Labor before December 1 of the preceding 
year and R2016 is the royalty rate for 2016 (i.e., $0.0022 
per subscription performance or $0.0017 per nonsubscription 
performance). The adjustment shall be rounded to the nearest fourth 
decimal place. 37 CFR 380.10(c) (as revised herein). The CPI-U 
published by the Secretary of Labor from the most recent index 
published before December 1, 2017, is 246.663.\1\ Applying the formula 
in 37 CFR 380.10(c) and rounding to the nearest fourth decimal place 
results in an increase in the rates for 2018.
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    \1\ As announced on November 15, 2017, by the Bureau of Labor 
Statistics in its News Release--Consumer Price Index October 2017, 
available at http://www.bls.gov/news.release/pdf/cpi.pdf at 4.
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    The 2018 rate for eligible transmission of sound recordings by 
commercial webcasters is a rate of $0.0023 per subscription performance 
and a rate of $0.0018 per nonsubscription performance.
    Application of the increase to rates for noncommercial webcasters 
results in a 2018 rate of $0.0018 per performance for all digital audio 
transmissions in excess of 159,140 ATH in a month on a channel or 
station.
    As provided in 37 CFR 380.1(d), the royalty fee for making 
ephemeral recordings under section 112 of the Copyright Act to 
facilitate digital transmission of sound recordings under section 114 
of the Copyright Act is included in the section 114 royalty fee and 
comprises 5% of the total fee.

List of Subjects in 37 CFR Part 380

    Copyright, Sound recordings.

Final Regulations

    In consideration of the foregoing, the Judges amend part 380 of 
title 37 of the Code of Federal Regulations as follows:

PART 380--RATES AND TERMS FOR TRANSMISSIONS BY ELIGIBLE 
NONSUBSCRIPTION SERVICES AND NEW SUBSCRIPTION SERVICES AND FOR THE 
MAKING OF EPHEMERAL REPRODUCTIONS TO FACILITATE THOSE TRANSMISSIONS

0
1. The authority citation for part 380 continues to read as follows:

    Authority: 17 U.S.C. 112(e), 114(f), 804(b)(3).


0
2. Section 380.10 is amended by revising paragraph (a) to read as 
follows:


Sec.  380.10  Royalty fees for the public performance of sound 
recordings and the making of ephemeral recordings.

    (a) Royalty fees. For the year 2018, Licensees must pay royalty 
fees for all Eligible Transmissions of sound recordings at the 
following rates:
    (1) Commercial Webcasters: $0.0023 per performance for subscription 
services and $0.0018 per performance for nonsubscription services.
    (2) Noncommercial webcasters. $500 per year for each channel or 
station and $0.0018 per performance for all digital audio transmissions 
in excess of 159,140 ATH in a month on a channel or station.
* * * * *

    Dated: November 20, 2017.
Suzanne M. Barnett,
Chief Copyright Royalty Judge.
[FR Doc. 2017-25480 Filed 11-24-17; 8:45 am]
BILLING CODE 1410-72-P