[Federal Register Volume 84, Number 183 (Friday, September 20, 2019)]
[Notices]
[Pages 49562-49563]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-20428]


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LIBRARY OF CONGRESS

Copyright Royalty Board

[Docket No. 15-CRB-0011 DART (SRF/CO) (2014)]


Distribution of Digital Audio Recording Royalty Funds

AGENCY: Copyright Royalty Board, Library of Congress.

ACTION: Notice announcing commencement of paper proceeding, requesting 
Petitions to Participate, and allowing comments.

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SUMMARY: The Copyright Royalty Judges (Judges) announce commencement of 
a proceeding to determine the distribution of digital audio recording 
technology royalty fees in the 2014 Sound Recordings Fund. 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 are due no later 
than October 21, 2019.

ADDRESSES: Each Petition to Participate must include the proceeding 
docket number, 15-CRB-0011 DART (SRF/CO) (2014). Participants must file 
using the online form on the CRB's electronic filing application, eCRB, 
at https://app.crb.gov/, unless they do not have access to the 
internet, in which case they may file using any of the following 
methods:
    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, two paper copies, and an electronic version on a CD. All 
submissions must include the Copyright Royalty Board name and docket 
number. All submissions received will be posted without change on eCRB 
including any personal information provided.
    Docket: For access to the docket, go to eCRB, the Copyright Royalty 
Board's electronic filing and case management system, at https://app.crb.gov/, and search for docket number 15-CRB-0011 DART (SRF/CO) 
(2014).

FOR FURTHER INFORMATION CONTACT: Anita Blaine, CRB Program Specialist, 
by telephone at (202) 707-7658 or 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 Sound Recordings 
Fund, which is the subject of this notice, is divided between the 
Copyright Owners Subfund (60%) and the Featured Recording Artists 
Subfund (40%), after small portions are distributed to nonfeatured 
musicians and nonfeatured vocalists. 17 U.S.C. 1006(b)(1).
    Distribution of the fees in the two subfunds 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 January 21, 2016, the Judges ordered distribution of 98% of the 
royalties held in the Featured Recording Artists Subfund and the 
Copyright Owners Subfund of the 2014 Sound Recordings Fund to settling 
claimants. Order Granting AARC's Request for Partial Distribution of 
Royalties from the 2014 DART Sound Recordings Fund.
    The Judges subsequently denied requests from two nonsettling 
claimants for distribution of funds. Order Denying Eugene Curry/Tajai 
Music, Inc's Request for Partial Distribution of Funds from the 
Copyright Owners Subfund (Jan. 18, 2017) (``Tajai Music Order''); Order 
Denying Herman Kelly's Request for Partial Distribution of Funds (Jan. 
18, 2017) (``Kelly Order'').
    In the Kelly order, the Judges found that a controversy exists 
regarding the proper distribution of the remaining funds in the 
Featured Artists Subfund.
    Tajai Music, Inc. has not settled its interest in the Copyright 
Owners Subfund. See Motion in Support of Settling Claimants' Notice of 
Settlement and Request for Partial Distribution of the 2014 DART Sound 
Recordings Fund Featured Recording Artists and Copyright Owners 
Subfunds Royalties at 1 (Dec. 2, 2015); Tajai Music Order at 1.
    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 2014 Sound Recordings Fund royalties from the 
Copyright Owners Subfund and the Featured Recording Artists Subfund.

Commencement of Proceeding

    By this notice, the Judges announce the commencement of a 
proceeding to determine the final distribution of DART Sound Recordings 
Funds (from both the Copyright Owners Subfund and the Featured 
Recording Artists Subfund) for royalty year 2014.

Petitions To Participate

    Petitions to Participate must provide all of the information 
required by 37 CFR 351.1(b)(2). Participants also must

[[Page 49563]]

identify each subfund in the Sound Recordings Fund to which they are 
asserting a claim (i.e., Copyright Owners, Featured Recording Artists, 
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. Any party without access to the internet 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 303.2 (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 after 
previously approved partial distributions and the anticipated small 
number of non-settling claimants. In paper proceedings, the Judges 
enter an order scheduling 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). The 
Judges make their determination on the basis of these filings. Any 
party wishing to comment on the Judges' intention to conduct a paper 
proceeding should include such comments in its Petition to Participate.

    Dated: September 17, 2019.
Jesse M. Feder,
Chief Copyright Royalty Judge.
[FR Doc. 2019-20428 Filed 9-19-19; 8:45 am]
 BILLING CODE 1410-72-P