[Federal Register Volume 86, Number 22 (Thursday, February 4, 2021)]
[Notices]
[Pages 8222-8223]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-02270]


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LIBRARY OF CONGRESS

Copyright Royalty Board

[Docket No. 20-CRB-0008-CA (2020-2025)]


Adjustment of Cable Statutory License Royalty Rates

AGENCY: Copyright Royalty Board, Library of Congress.

ACTION: Notice of proposed settlement; request for comments.

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SUMMARY: The Copyright Royalty Judges publish for comment a proposed 
settlement governing royalty rates and terms for the distant 
retransmission of over-the-air television and radio broadcast stations 
by cable television systems to their subscribers.

DATES: Comments are due no later than February 25, 2021.

ADDRESSES: You may send comments, identified by docket number 20-CRB-
0008-CA, online through eCRB at https://app.crb.gov.
    Instructions: All submissions received must include the Copyright 
Royalty

[[Page 8223]]

Board name and the docket number for this proceeding. All comments 
received will be posted without change to eCRB at https://app.crb.gov, 
including any personal information provided.
    Docket: For access to the docket to read background documents or 
comments received, go to eCRB at https://app.crb.gov and perform a case 
search for docket 20-CRB-0008-CA.

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

SUPPLEMENTARY INFORMATION: On January 26, 2021, the Copyright Royalty 
Judges (Judges) received a Joint Notice of Settlement of Participating 
Parties \1\ informing the Judges that they have agreed not to seek a 
quinquennial adjustment in the existing Section 111 royalty rates or 
gross receipts limitations pursuant to 17 U.S.C. 804(b)(1)(A)-(B) for 
the 2020-2025 period. As a result, the Participating Parties request 
that the Judges terminate this proceeding without making any changes in 
(1) the royalty rates currently set forth in 17 U.S.C. 111(d)(1)(B) and 
37 CFR 256.2(c)-(d); \2\ and (2) the gross receipts limitations set 
forth in 17 U.S.C. 111(d)(1)(E)-(F). Joint Notice at 2. The Judges 
hereby publish the proposed settlement and request comments from 
interested parties as required by 17 U.S.C. 801(b)(7)(A).
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    \1\ The Participating Parties are American Society of Composers, 
Authors and Publishers, Broadcast Music, Inc., Canadian Claimants 
Group (by Canadian Broadcasting Corporation), Devotional Claimants 
(Crystal Cathedral Ministries, et al.), Global Music Rights, LLC, 
Joint Sports Claimants, Motion Picture Association, Commercial 
Television Claimants (through the National Association of 
Broadcasters), NPR Claimants (through National Public Radio, Inc.), 
NCTA--The Internet & Television Association, Public Television 
Claimants (through Public Broadcasting Service), and SESAC 
Performing Rights, LLC.
    \2\ The Judges assume that the Participating Parties' reference 
to 37 CFR 256.2(c) & (d), which was a Copyright Office regulation 
relating to the Judges' predecessor, is intended to refer to 
paragraphs (c)-(d) of 37 CFR 387, which the Judges adopted at the 
conclusion of the last cable rate proceeding. See 81 FR 62812 (Sept. 
13, 2016) and 81 FR 24523-24 (Apr. 26, 2016).
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    Section 111 of the Copyright Act grants a statutory copyright 
license to cable television systems for the distant retransmission of 
over-the-air television and radio broadcast stations to their 
subscribers. 17 U.S.C. 111(c). In exchange for the license, cable 
operators submit to the Copyright Office semiannually royalty payments 
and statements of account detailing their retransmissions. 17 U.S.C. 
111(d)(1). The Copyright Office deposits the royalties into the United 
States Treasury for later distribution to copyright owners of the 
broadcast programming that the cable systems retransmit. 17 U.S.C. 
111(d)(2).
    A cable system calculates its royalty payments in accordance with 
the statutory formula described in 17 U.S.C. 111(d)(1). Royalty rates 
are based upon a cable system's gross receipts from subscribers who 
receive retransmitted broadcast signals. For rate calculation purposes, 
cable systems are divided into three tiers (small, medium, and large) 
based on their gross receipts. 17 U.S.C. 111(d)(1)(B) through (F). Both 
the applicable rates and the tiers are subject to adjustment. 17 U.S.C. 
801(b)(2).
    Every five years persons with a significant interest in the royalty 
rates may file petitions to initiate a proceeding to adjust the rates. 
17 U.S.C. 804(a)-(b). No person with a significant interest filed a 
petition to initiate a proceeding in 2020. Therefore, the Judges 
initiated a rate adjustment proceeding by publishing a notice and 
request for petitions to participate in the Federal Register. 85 FR 
34467 (June 4, 2020). The Judges accepted the petitions to participate 
of each of the Participating Parties and commenced a Voluntary 
Negotiation Period (VNP). Notice of Participants, Commencement of 
Voluntary Negotiation Period, and Scheduling Order (Oct. 20, 2020).\3\ 
In response to that Notice and Order, the Participating Parties have 
notified the Judges that they have agreed not to seek a quinquennial 
adjustment in the existing Section 111 royalty rates or gross receipts 
limitations pursuant to 17 U.S.C. 804(b)(1)(A)-(B) for the 2020-2025 
period. They request that the Judges terminate this proceeding without 
making any changes in the applicable royalty rates and gross receipts 
limitations.
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    \3\ The Judges also received a petition to participate from 
Circle God Network Inc. (through David Powell), which the Judges 
concluded failed to state why it believed it had a significant 
interest in the proceeding. The Judges subsequently rejected Mr. 
Powell's petition to participate, Order Rejecting David Powell's 
Petition to Participate and Permitting Filing of an Amended Petition 
(Oct. 20, 2020), and later dismissed Mr. Powell from the proceeding. 
Order Dismissing David Powell (Nov. 5, 2020).
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    Section 801(b)(7)(A) allows for the adoption of rates and terms 
negotiated by ``some or all of the participants in a proceeding at any 
time during the proceeding'' provided the parties submit the negotiated 
rates and terms to the Judges for approval. That provision directs the 
Judges to provide those who would be bound by the negotiated rates and 
terms an opportunity to comment on the agreement. Unless a participant 
in a proceeding objects and the Judges conclude that the agreement does 
not provide a reasonable basis for setting statutory rates or terms, 
the Judges adopt the negotiated rates and terms. 17 U.S.C. 
801(b)(7)(A).
    If the Judges adopt the proposed rates and terms pursuant to this 
provision for the 2020-2025 rate period, the adopted (and thus, 
existing) rates and terms and gross receipts limitations will continue 
to be binding on all cable systems that retransmit distantly over-the-
air television and radio broadcast stations to their subscribers and on 
all copyright owners of the broadcast programming that the cable 
systems retransmit during the license period 2020-2025.
    Interested parties may comment and Participating Parties may object 
to the proposed settlement referenced in this notice. See 17 U.S.C. 
801(b)(7)(A). Such comments and objections, if any, must be submitted 
no later than February 25, 2021.

    Dated: January 29, 2021.
Jesse M. Feder,
Chief Copyright Royalty Judge.
[FR Doc. 2021-02270 Filed 2-3-21; 8:45 am]
BILLING CODE 1410-72-P