[Federal Register Volume 86, Number 5 (Friday, January 8, 2021)]
[Notices]
[Page 1530]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-00182]


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LIBRARY OF CONGRESS

Copyright Royalty Board

[Docket No. 20-CRB-0017-AU (Music Choice)]


Notice of Intent To Audit

AGENCY: Copyright Royalty Board, Library of Congress.

ACTION: Public notice.

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SUMMARY: The Copyright Royalty Judges (Judges) announce receipt from 
SoundExchange, Inc., (SoundExchange) of a notice of intent to audit 
Music Choice to verify royalties paid by Commercial Webcasters, 
Preexisting Subscription Services, and Business Establishment Services 
in 2017, 2018, and 2019 pursuant to two statutory licenses.

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

SUMMARY INFORMATION: The Copyright Act, title 17 of the United States 
Code, grants to sound recordings copyright owners the exclusive right 
to publicly perform sound recordings by means of certain digital audio 
transmissions, subject to limitations. Specifically, the right is 
limited by the statutory license in section 114, which allows nonexempt 
noninteractive digital subscription services, eligible nonsubscription 
services, and preexisting satellite digital audio radio services to 
perform publicly sound recordings by means of digital audio 
transmissions. 17 U.S.C. 114(f). In addition, a statutory license in 
section 112 allows a service to make necessary ephemeral reproductions 
to facilitate the digital transmission of the sound recording, 
including for transmissions to business establishments. 17 U.S.C. 
112(e).
    Licensees may operate under these licenses provided they pay the 
royalty fees and comply with the terms set by the Judges. The rates and 
terms for the section 112 and 114 licenses are set forth in 37 CFR 
parts 380, 382, and 384.
    As part of the terms set for these licenses, the Judges designated 
SoundExchange as the Collective, i.e., the organization charged with 
collecting the royalty payments and statements of account submitted by 
eligible licensees and with distributing royalties to the copyright 
owners and performers entitled to receive them under the section 112 
and 114 licenses. See, e.g., 37 CFR 380.4(d).
    As the Collective, SoundExchange may, only once a year, conduct an 
audit of a licensee for any or all of the prior three calendar years in 
order to verify royalty payments. SoundExchange must first file with 
the Judges a notice of intent to audit a licensee and deliver the 
notice to the licensee. See, e.g., 37 CFR 380.6.
    On December 18, 2020, SoundExchange filed with the Judges a notice 
of intent to audit Music Choice for royalties paid by Commercial 
Webcasters, Preexisting Subscription Services, and Business 
Establishment Services for the years 2017, 2018, and 2019. The Judges 
must publish notice in the Federal Register within 30 days of receipt 
of a notice announcing the Collective's intent to conduct an audit. See 
id. Today's notice fulfills this requirement with respect to 
SoundExchange's notice of intent to audit filed December 18, 2020.

    Dated: January 5, 2021.
Jesse M. Feder,
Chief Copyright Royalty Judge.
[FR Doc. 2021-00182 Filed 1-7-21; 8:45 am]
BILLING CODE 1410-72-P