[Federal Register Volume 84, Number 225 (Thursday, November 21, 2019)]
[Rules and Regulations]
[Page 64206]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-25198]


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LIBRARY OF CONGRESS

Copyright Royalty Board

37 CFR Part 386

[Docket No. 19-CRB-0013-SA-COLA (2020)]


Cost of Living Adjustment to Satellite Carrier Compulsory License 
Royalty Rates

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

ACTION: Final rule; cost of living adjustment.

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SUMMARY: The Copyright Royalty Judges announce a cost of living 
adjustment (COLA) of 1.8% in the royalty rates satellite carriers pay 
for a compulsory license under the Copyright Act. The COLA is based on 
the change in the Consumer Price Index from October 2018 to October 
2019.

DATES: 
    Effective date: January 1, 2020.
    Applicability dates: These rates are applicable to the period 
January 1, 2020, through December 31, 2020.

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

SUPPLEMENTARY INFORMATION: The satellite carrier compulsory license 
establishes a statutory copyright licensing scheme for the distant 
retransmission of television programming by satellite carriers. 17 
U.S.C. 119. Congress created the license in 1988 and has reauthorized 
the license for additional five-year periods, most recently with the 
passage of the STELA Reauthorization Act of 2014, Public Law 113-
200.\1\
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    \1\ The license expires on December 31, 2019. 17 U.S.C. 119(h).
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    On August 31, 2010, the Copyright Royalty Judges (Judges) adopted 
rates for the section 119 compulsory license for the 2010-2014 term. 
See 75 FR 53198. The rates were proposed by Copyright Owners and 
Satellite Carriers \2\ and were unopposed. Id. On December 4, 2014, 
Congress extended the term of those rates through 2019 by passing the 
STELA Reauthorization Act of 2014. 17 U.S.C. 119(c)(1)(E).
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    \2\ Program Suppliers and Joint Sports Claimants comprised the 
Copyright Owners while DIRECTV, Inc., DISH Network, LLC, and 
National Programming Service, LLC, comprised the Satellite Carriers.
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    Section 119(c)(2) of the Copyright Act provides that, effective 
January 1 of each year, the Judges shall adjust the royalty fee payable 
under Section 119(b)(1)(B) ``to reflect any changes occurring in the 
cost of living as determined by the most recent Consumer Price Index 
(for all consumers and for all items) [CPI-U] published by the 
Secretary of Labor before December 1 of the preceding year.'' Section 
119 also requires that ``[n]otification of the adjusted fees shall be 
published in the Federal Register at least 25 days before January 1.'' 
17 U.S.C. 119(c)(2).
    The change in the cost of living as determined by the CPI-U during 
the period from the most recent index published before December 1, 
2018, to the most recent index published before December 1, 2019, is 
1.8%.\3\ Application of the 1.8% COLA to the current rate for the 
secondary transmission of broadcast stations by satellite carriers for 
private home viewing--29 cents per subscriber per month--results in a 
rate of 30 cents per subscriber per month (rounded to the nearest 
cent). See 37 CFR 386.2(b)(1). Application of the 1.8% COLA to the 
current rate for viewing in commercial establishments--59 cents per 
subscriber per month--results in a rate of 60 cents per subscriber per 
month (rounded to the nearest cent). See 37 CFR 386.2(b)(2).
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    \3\ On November 13, 2019, the Bureau of Labor Statistics 
announced that the CPI-U increased 1.8% over the last 12 months.
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List of Subjects in 37 CFR Part 386

    Copyright, Satellite, Television.

Final Regulations

    In consideration of the foregoing, the Judges amend part 386 of 
title 37 of the Code of Federal Regulations as follows:

PART 386--ADJUSTMENT OF ROYALTY FEES FOR SECONDARY TRANSMISSIONS BY 
SATELLITE CARRIERS

0
1. The authority citation for part 386 continues to read as follows:

    Authority:  17 U.S.C. 119(c), 801(b)(1).


0
2. Section 386.2 is amended by adding paragraphs (b)(1)(xi) and 
(b)(2)(xi) to read as follows:


Sec.  386.2  Royalty fee for secondary transmission by satellite 
carriers.

* * * * *
    (b) * * *
    (1) * * *
    (xi) 2020: 30 cents per subscriber per month.
    (2) * * *
    (xi) 2020: 60 cents per subscriber per month.

    Dated: November 15, 2019.
Jesse M. Feder,
Chief Copyright Royalty Judge.
[FR Doc. 2019-25198 Filed 11-20-19; 8:45 am]
 BILLING CODE 1410-72-P