[Federal Register Volume 85, Number 34 (Thursday, February 20, 2020)]
[Rules and Regulations]
[Pages 9663-9664]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-02134]


=======================================================================
-----------------------------------------------------------------------

LIBRARY OF CONGRESS

Copyright Royalty Board

37 CFR Part 383

[Docket No. 19-CRB-0006-NSR (2021-2025) (NSS IV)]


Digital Performance Right in Sound Recordings and Ephemeral 
Recordings

AGENCY: Copyright Royalty Board, Library of Congress.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Copyright Royalty Judges publish a final rule governing 
the rates and terms for the digital performances of sound recordings by 
new subscription services and for the making of ephemeral recordings 
necessary to facilitate those transmissions for the period commencing 
January 1, 2021, and ending on December 31, 2025.

DATES: Effective date: January 1, 2021.

ADDRESSES: 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 19-CRB-0006-NSR (2021-2025).

FOR FURTHER INFORMATION CONTACT: Anita Blaine, Program Specialist, by 
telephone at (202) 707-0078 or email at [email protected].

SUPPLEMENTARY INFORMATION: 

Background

    On November 8, 2019, the Copyright Royalty Judges published a 
proposed rule governing the rates and terms for the digital 
performances of sound recordings by new subscription services that 
provide transmissions to residential subscribers as part of a cable or 
satellite

[[Page 9664]]

television bundle and for the making of ephemeral recordings necessary 
to facilitate those transmissions for the period commencing January 1, 
2021, and ending on December 31, 2025. 84 FR 60356. The rates and terms 
in the proposed rule were the subject of a settlement between 
SoundExchange, Inc., and Sirius XM Inc. Joint Motion to Adopt 
Settlement, Docket No. 19-CRB-0006-NSR (2021-2025) (``NSS IV''). The 
Judges received no comments on the proposed rule.
    The Judges ``may decline to adopt the agreement as a basis for 
statutory terms and rates for participants that are not parties to the 
agreement,'' only ``if any participant [in the proceeding] objects to 
the agreement and the [Judges] conclude, based on the record before 
them if one exists, that the agreement does not provide a reasonable 
basis for setting statutory terms or rates.'' 17 U.S.C. 
801(b)(7)(A)(ii). Because no NSS IV participant has objected to the 
settlement, and the Judges find no basis in the record to conclude that 
the settlement does not provide a reasonable basis for setting 
statutory terms and rates, the Judges adopt the terms and rates as 
proposed.

List of Subjects in 37 CFR Part 383

    Copyright, Sound recordings, Webcasters.

Final Regulations

    For the reasons set forth in the preamble, the Copyright Royalty 
Judges amend 37 CFR part 383 as follows:

PART 383--RATES AND TERMS FOR SUBSCRIPTION TRANSMISSIONS AND THE 
REPRODUCTION OF EMPHEMERAL RECORDINGS BY CERTAIN NEW SUBSCRIPTION 
SERVICES

0
1. The authority citation for part 383 continues to read as follows:

    Authority: 17 U.S.C. 112(e), 114, and 801(b)(1).


Sec.  383.1  [Amended]

0
2. In Sec.  383.1, amend paragraph (a), by removing ``2016'' and adding 
in its place, ``2021'', and by removing ``2020'' and adding in its 
place, ``2025''.


Sec.  383.2  [Amended]

0
3. In Sec.  383.2, amend paragraph (c), by removing ``2016'' and adding 
in its place, ``2021'', and by removing ``2020'' and adding in its 
place, ``2025''.

0
4. Amend Sec.  383.3 by:
0
a. In paragraph (a), removing the words ``statutory licenses'' and 
adding, in their place, the word ``License'';
0
b. Revising paragraphs (a)(1)(i) through (v);
0
c. Revising paragraph (a)(2)(i) through (v); and
0
d. Revising paragraph (c).
    The revisions read as follows:


Sec.  383.3   Royalty fees for public performances of sound recordings 
and the making of ephemeral recordings.

    (a) * * *
    (1) * * *
    (i) 2021: $0.0208
    (ii) 2022: $0.0214
    (iii) 2023: $0.0221
    (iv) 2024: $0.0227
    (v) 2025: $0.0234
    (2) * * *
    (i) 2021: $0.0346
    (ii) 2022: $0.0356
    (iii) 2023: $0.0367
    (iv) 2024: $0.0378
    (v) 2025: $0.0390
* * * * *
    (c) Allocation between ephemeral recordings fees and performance 
royalty fees. The Collective must credit 5% of all royalty payments as 
royalty payment for Ephemeral Recordings and credit the remaining 95% 
to section 114 royalties. All Ephemeral Recordings that a Licensee 
makes which are necessary and commercially reasonable for making 
noninteractive digital transmissions through a Service are included in 
the 5%.


Sec.  383.4  [Amended]

0
5. In Sec.  383.4 amend paragraph (a) by:
0
a. Removing the words ``subscription transmissions'' and adding, in 
their place, the words ``Digital audio transmission'';
0
b. Removing the words ``preexisting satellite digital audio radio 
services'' and adding, in their place, the words ``Commercial 
Webcasters'';
0
c. Removing the words ``part 382, subpart B'' and adding, in their 
place, the words ``part 380, subpart A'';
0
d. Removing the years ``2013-2017'' and adding, in their place, the 
years ``2021-2025'';
0
e. Removing the words ``For purposes of this section'' and adding, in 
their place, the words ``For purposes of this part''.

    Dated: January 21, 2020.
Jesse M. Feder,
Chief Copyright Royalty Judge.
    Approved by:
Carla D. Hayden,
Librarian of Congress.
[FR Doc. 2020-02134 Filed 2-19-20; 8:45 am]
 BILLING CODE 1410-72-P