[Federal Register Volume 83, Number 234 (Thursday, December 6, 2018)]
[Notices]
[Pages 62908-62909]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-26494]
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LIBRARY OF CONGRESS
Copyright Royalty Board
[Docket Nos. 2012-6 CRB CD 2004-2009 (Phase II) and 2012-7 CRB SD 1999-
2009 (Phase II)]
Distribution of Cable and Satellite Royalty Funds
AGENCY: Copyright Royalty Board, Library of Congress.
ACTION: Final distribution determination.
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SUMMARY: The Copyright Royalty Judges (Judges) announce the final
distribution of satellite royalty funds for the year 2000. The
distribution determination results from a contested motion by the
Settling Devotional Claimants (SDC) requesting that the Judges order a
final distribution to the SDC of 100% of the Devotional Claimants'
share of the 2000 satellite royalties.
DATES: Applicable date: December 5, 2018.
ADDRESSES: The final distribution order is also published in eCRB at
https://app.crb.gov/. Docket: For access to the docket to read
submitted background documents, go to eCRB, the Copyright Royalty
Board's electronic filing and case management system, at https://app.crb.gov/ and search for docket number 2012-6 CRB CD 2004-2009.
FOR FURTHER INFORMATION CONTACT: Anita Blaine, CRB Program Specialist,
by telephone at (202) 707-7658 or email at [email protected].
SUPPLEMENTARY INFORMATION:
On October 1, 2018, the Judges issued an initial determination
relating to the requested distribution. The Register of Copyrights
concluded her statutory review and issued no opinion. The Order is now
before the Librarian of Congress for final review and publication. The
essence of the initial determination follows.
On November 21, 2017, the Settling Devotional Claimants (SDC) filed
a motion seeking final distribution of the 2000 satellite royalty fund
in the Devotional category (Motion). In the Motion, the SDC contended
that there is no controversy with respect to the subject satellite
royalties. The SDC argued that the direct cases filed by the SDC and
Independent Producers Group (IPG) in this consolidated proceeding
confirm that both parties agree to the allocation of 100% of the 2000
satellite royalties to the SDC. As a result, the SDC asked the
Copyright Royalty Judges (Judges) to order a final distribution to SDC
in an amount equal to the Devotional Claimants' share of the 2000
satellite royalty fund. Motion at 1-2.
On December 1, 2017, IPG filed an opposition to the SDC's motion
(IPG Opposition). IPG conceded that the written testimony of both IPG
and the SDC conclude that ``subject to the current rulings of the
Judges,'' IPG has no valid claim to satellite royalties for the year
2000. See IPG Opposition at 1. Nevertheless, IPG noted that it disputes
and will appeal the Judges' claims rulings. Id. at 2. IPG continued:
[I]f appellate review of the Judges' dismissal of 51 claims held
by IPG-represented claimants is reversed as an excessive discovery
sanction, as IPG contends, then the relative value of the
previously-dismissed claims will require reconsideration for any
award to IPG of 2000 satellite royalties. Under such circumstance,
IPG will likely be awarded a substantial portion of the 2000
satellite royalties, and final distribution of 2000 satellite
royalties will necessarily require repayment from the SDC of
royalties with an attributed interest rate. Id. at 3.
In light of the value IPG projected for its dismissed claims should
they be reinstated, IPG maintained that distribution to SDC would be
``imprudent.'' Id. at 3-4.
In their response (Response), the SDC noted that the Judges have
twice rejected IPG's requests for rehearing of the order in which the
Judges dismissed IPG's claims to 2000 satellite royalties. Response at
2. In the SDC's estimation, IPG has had full and fair opportunities to
state its case to the Judges, and an appeal to the Court of Appeals is
unlikely to succeed. Id.
Moreover, the SDC noted that the Judges addressed the identical
situation with respect to the 2008 satellite royalties, and the Judges
ordered a final distribution of the Devotional Claimants' share to the
SDC. Id., citing Order Granting Final Distribution of 2008 Satellite
Royalties for the Devotional Category, Dkt. No. 2012-7 CRB SD 1999-2009
(Phase II) (Dec. 22, 2015). In response to IPG's concerns regarding the
SDC's repayment of royalties should IPG prevail on appeal, the SDC
noted that they have executed the royalty repayment agreement required
by the Library of Congress prior to any partial distribution of royalty
funds. Response at 3. The SDC added:
All devotional ministries that are members of the SDC in the
relevant period are bound by that obligation. How the remission
might be accomplished is the responsibility of the SDC, which are
among the largest religious ministries in the United States.
Collectively, they would be fully capable of meeting any obligation
to the Library . . . . To suggest otherwise is without foundation.
Response at 3.
Section 801(b)(3)(A) of the Copyright Act states that the Judges
may authorize distribution of royalty fees deposited pursuant to
Section 119 of the Copyright Act if they find that the distribution is
not subject to controversy. 17 U.S.C. 801(b)(3)(A). In the current
proceeding, the parties agree that the Judges have dismissed all claims
that IPG-represented claimants had to satellite royalties for 2000 in
the Devotional category. As a result, the SDC are the only claimants in
the proceeding with valid claims to satellite royalties for 2000 in the
Devotional category. Therefore, in the current circumstances, satellite
royalties for 2000 in the Devotional category are no longer in
controversy.
In November 2008, the parties to this proceeding filed a motion
seeking partial distribution of 98% of the satellite royalty funds
deposited for royalty years 1999 through 2003. In that motion, the
parties designated specific
[[Page 62909]]
amounts of the proposed two percent reserve to be allocated among
Program Suppliers claimants, Sports claimants, and Devotional
claimants. In their motion, the moving parties represented that they
had reached a settlement with regard to royalty category allocation.
The moving parties maintained that the allocation settlement was non-
precedential and confidential. Because the moving parties maintain the
confidentiality of the allocation shares, however, the Judges have no
way to allocate the reserved funds among the categories with continuing
controversies.
By Order dated December 8, 2008, the Judges ordered distribution of
90% of the satellite royalty funds deposited for royalty years 1999
through 2003. While the Judges ordered ten percent of the royalty funds
to be held in reserve, they did not allocate the reserve among the
categories with remaining distribution controversies. See Order
Granting in Part . . . Partial Distribution . . ., Dkt. Nos. 2008-5 CRB
SD 1999-2000, 2005-2 CRB SD 2001-03 at 2-3 (Dec. 8, 2008) (Phase I
Order). To direct execution of this final determination, therefore, the
Judges must first know the exact dollar amount they should order
disbursed to the SDC to complete the distribution.
The Judges therefore Grant the Motion as to the percentage of
distribution.\1\
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\1\ This finding is based on IPG's lack of compensable claims
and not on expert valuation of the relative value of SDC's and IPG's
respective claims to 2000 satellite royalties. See Order Granting
Final Distribution of 2008 Satellite Royalties for the Devotional
Category, Docket No. 2012-7 CRB SD 1999-2009 (Phase II) (Dec. 22,
2015).
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The Judges Further Order that this final distribution determination
is without prejudice to the parties' right to appeal the Judges'
interlocutory ruling in this consolidated proceeding with regard to
both cable and satellite claims issues.
The Judges Further Order the Phase I Claimants jointly to notify
the Judges and the Licensing Division no later than seven days after
the date of publication of this Determination of the percentage of 2000
satellite royalty funds that was allocable to the SDC as of December 8,
2008.
The Judges Further Order the Licensing Division of the Copyright
Office, based upon the percentage allocable to the SDC provided by the
Phase I Claimants, to calculate the dollar amount that is available to
be distributed from 2000 satellite royalty funds to the SDC by taking
the principal balance as of December 8, 2008, as reported jointly by
the remaining categories of claimants to 2000 satellite royalty funds,
adjusting that balance for a proportional deduction of administrative
fees, and adding the interest accrued on the Devotional category
balance from and after December 8, 2008. The Licensing Division shall
provide the result of its calculation to the Judges and to the Phase I
Claimants. The SDC may then request that the Judges distribute those
funds to complete the final distribution.
The Register of Copyrights (``Register'') has concluded her
statutory review. The Librarian of Congress shall review and cause this
final determination, and any correction thereto by the Register, to be
published in the Federal Register.
October 1, 2018.
So Ordered.
Suzanne M. Barnett, Chief United States Copyright Royalty Judge.
David R. Strickler, United States Copyright Royalty Judge.
Jesse M. Feder, United States Copyright Royalty Judge.
Dated: November 7, 2018.
Suzanne M. Barnett,
Chief United States Copyright Royalty Judge.
Approved by:
Carla B. Hayden,
Librarian of Congress.
[FR Doc. 2018-26494 Filed 12-4-18; 8:45 am]
BILLING CODE 1410-72-P