[Federal Register Volume 83, Number 214 (Monday, November 5, 2018)]
[Proposed Rules]
[Pages 55334-55335]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-24089]


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LIBRARY OF CONGRESS

Copyright Royalty Board

37 CFR Chapter III

[Docket No. 18-CRB-0012-RM]


Modification and Amendment of Regulations To Conform to the MMA

AGENCY: Copyright Royalty Board, Library of Congress.

ACTION: Notification of inquiry.

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SUMMARY: The Copyright Royalty Judges (Judges) publish a notice of 
inquiry regarding necessary and appropriate modifications and 
amendments to agency regulations following enactment of a new law 
regarding the music industry.

[[Page 55335]]


DATES: Comments and proposals, if any, are due no later than November 
26, 2018.

ADDRESSES: You may submit comments and proposals, identified by docket 
number 18-CRB-0012-RM, by any of the following methods:
    CRB's electronic filing application: Submit comments and proposals 
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, commenters must submit an 
original, two paper copies, and an electronic version on a CD. All 
submissions must include a reference to the CRB and this docket number. 
All submissions will be posted without change to eCRB at https://app.crb.gov/ including any personal information provided.
    Docket: For access to the docket to read submitted background 
documents or comments, go to eCRB, the Copyright Royalty Board's 
electronic filing and case management system, at https://app.crb.gov/ 
and search for docket number 18-CRB-0012-RM.

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

SUPPLEMENTARY INFORMATION: 

Background

    The Orrin G. Hatch-Bob Goodlatte Music Modernization Act, Public 
Law 115-264, 132 Stat. 3676 (Oct. 11, 2018) (MMA), implements changes 
in administration of copyright royalties relating to the music 
industry. The most sweeping changes relate to the copyrights of 
songwriters and publishers of nondramatic musical works. Prior to 
enactment of the MMA, section 115 of title 17 (Copyright Act) detailed 
procedures for administration of the compulsory license (also known as 
the ``mechanical'' compulsory license) to reproduce and distribute, 
including by digital transmissions, phonorecords embodying copyrighted 
musical works.
    Chapter 8 of the Copyright Act requires the Copyright Royalty 
Judges (Judges) to conduct proceedings every five years to determine 
the rates and terms for the section 115 license. See 17 U.S.C. 
801(b)(1), 804(b)(4). In the MMA, Congress authorized designation of an 
entity, the Mechanical License Collective (MLC) to serve as a 
clearinghouse for collection and distribution of royalties and to 
develop a comprehensive database to ensure efficient and appropriate 
payment and distribution of those royalties.
    Creation of the MLC and the other statutory changes in the MMA 
requires or authorizes modification of the Judges' regulations relating 
to section 115. For example, section 102(d) of the MMA requires the 
Judges, not later than 270 days after enactment of the MMA, to amend 
part 385 of 37, Code of Federal Regulations (CFR) ``to conform the 
definitions used in such part to the definitions of the same terms 
described in section 115(e) of title 17, United States Code, as added 
by'' section 102(a) of the MMA. That provision also directs the Judges 
to ``make adjustments to the language of the regulations as necessary 
to achieve the same purpose and effect as the original regulations with 
respect to the rates and terms previously adopted by the [Judges].'' In 
addition, the MMA authorizes the Judges to adopt regulations concerning 
proceedings to set the administrative assessment established by the 
statute to fund the MLC. 17 U.S.C. 115(d)(7)(D)(viii), 115(d)(12)(A).
    The MMA also adds a new section 801(b)(8) to the Copyright Act, 
which authorizes the Judges ``to determine the administrative 
assessment to be paid by digital music providers under section 115(d)'' 
but states that ``[t]he provisions of section 115(d) shall apply to the 
conduct of proceedings by the [Judges] under section 115(d) and not the 
procedures in this section, or section 803, 804, or 805.''
    The Judges seek input from persons and entities who reasonably 
believe they have a significant interest in the content of necessary or 
appropriate changes to the regulations in chapter III, title 37, Code 
of Federal Regulations (CFR). The Judges also seek input from persons 
and entities who reasonably believe they have a significant interest in 
interpreting and applying the changes the MMA purports to make to 
chapter 8 of the Copyright Act.
    Specifically, but not exclusively, the Judges seek comments 
regarding the following questions.
    (1) What regulations in chapter III, title 37 CFR, if any, must be 
changed and how?
    (2) What regulations in chapter III, title 37 CFR, if any, should 
be changed and how?
    (3) What effect, if any, does the new language in subparagraph 8 of 
section 801(b) have on the Judges' ability to make necessary procedural 
or evidentiary rulings under sections 801, 803, 804, and/or 805 \1\ of 
the Copyright Act, and, in particular, does the new language have the 
effect that the Judges are now required to adopt new regulations, 
notwithstanding their general authority under section 801(c)?
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    \1\ Examples: Section 801(c) (necessary procedural and 
evidentiary rulings), section 803(b)(5) (paper proceedings), section 
803(b)(6)(C)(ix) (subpoenas), section 803(c)(2) (rehearings), 
section 803(c)(5) (protective orders).
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    (4) If the new language in subparagraph 8 of section 801(b) affects 
the Judges' authority under other subsections of section 801, how does 
it change that authority or the procedures to exercise that authority?
    The Judges solicit proposed new or modified regulatory language 
that may be necessary to fully implement the MMA. Commenting persons 
and entities must support each legal conclusion and each proposed 
regulatory change with appropriate legal analysis and citation to 
authority. After considering the proposals, if the Judges determine 
that rulemaking is required, the Judges will publish a formal notice of 
proposed rulemaking in accordance with the provisions of the 
Administrative Procedures Act.

    Dated: October 30, 2018.
Suzanne M. Barnett,
Chief Copyright Royalty Judge.
[FR Doc. 2018-24089 Filed 11-2-18; 8:45 am]
 BILLING CODE 1410-72-P