[Federal Register Volume 86, Number 244 (Thursday, December 23, 2021)]
[Rules and Regulations]
[Pages 72845-72846]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-27913]


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LIBRARY OF CONGRESS

Copyright Royalty Board

37 CFR Part 387

[Docket No. 20-CRB-0008-CA (2020-2024)]


Adjustment of Cable Statutory License Royalty Rates

AGENCY: Copyright Royalty Board, Library of Congress.

ACTION: Final determination.

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SUMMARY: The Copyright Royalty Judges published for comment a proposed 
settlement governing royalty rates and terms for the retransmission of 
over-the-air television and radio broadcast stations by cable 
television systems to their subscribers. Having received no comments, 
the Judges adopt the existing rates and terms as proposed by the 
settlement.

DATES: The rates are applicable to the period beginning January 1, 
2020, and ending December 31, 2024.

ADDRESSES: Docket: For access to the docket to read background 
documents, 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, (202) 707-7658, 
[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 2020-2024 \2\ period. As a result, the Participating Parties 
requested 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); \3\ and (2) the gross receipts 
limitations set forth in 17 U.S.C. 111(d)(1)(E)-(F). Joint Notice at 2. 
Section 111 of the Copyright Act grants a statutory copyright license 
to cable television systems for the 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).
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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 period of years for the rates has been misstated as 
2020-2025 in filings in this docket. The five-year period starting 
in 2020 ends in 2024, not 2025. The Judges have adjusted the docket 
number to reflect the correct span.
    \3\ 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, was intended to refer to 
paragraphs (c)-(d) of 37 CFR 387.2, 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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    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).\4\ 
In response to that Notice and Order, on January 26, 2021, the 
Participating Parties submitted a Joint Notice of Settlement of 
Participating Parties

[[Page 72846]]

notifying 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 2020-2024 
period.\5\ They requested that the Judges terminate this proceeding 
without making any changes in the applicable royalty rates and gross 
receipts limitations.
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    \4\ 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).
    \5\ As with other filings in this docket, the Joint Notice of 
Settlement of Participating Parties addressed the 2020-2025 period. 
As indicated supra, this final action corrects the prior misstated 
dates and addresses a narrower period beginning January 1, 2020, and 
ending December 31, 2024.
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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, or 
the Judges find the negotiated rates and terms are contrary to law, the 
Judges adopt the negotiated rates and terms. 17 U.S.C. 801(b)(7)(A).
    On February 4, 2021, the Judges published the proposed settlement 
in the Federal Register and requested comments from interested parties 
pursuant to 17 U.S.C. 801(b)(7)(A). 86 FR 8222 (Feb. 4, 2021). The 
Judges received no comments. Therefore, the Judges adopt the existing 
rates and terms in 37 CFR 387.2 (c) and (d) for the 2020-2024 rate 
period and close the proceeding. The Judges hereby give notice that the 
adopted rates and terms and gross receipts limitations will continue to 
be binding on all cable systems that retransmit 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 2020-2024.

    Dated: December 9, 2021.
Suzanne M. Barnett,
Chief Copyright Royalty Judge.

    Approved:
Carla D. Hayden,
Librarian of Congress.
[FR Doc. 2021-27913 Filed 12-22-21; 8:45 am]
BILLING CODE 1410-72-P[FEDREG][VOL]*[/VOL][NO]*[/NO][DATE]*[/
DATE][RULES]