[Federal Register Volume 87, Number 189 (Friday, September 30, 2022)]
[Rules and Regulations]
[Pages 59306-59309]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-21294]


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LIBRARY OF CONGRESS

Copyright Office

37 CFR Parts 201 and 202

[Docket No. 2020-1]


Remitter Payment Options and Deposit Account Requirements

AGENCY: U.S. Copyright Office, Library of Congress.

ACTION: Final rule.

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SUMMARY: The U.S. Copyright Office is amending certain regulations 
related to remitter payments for its services and requirements for 
maintaining a deposit account. This final rule adopts regulatory 
language set forth in the Office's February 2022 notice of proposed 
rulemaking with some modifications in response to public comments. 
These amendments consolidate regulatory provisions related to payment 
options and update existing regulations to articulate current Office 
practices. They also simplify requirements for maintaining a deposit 
account and clarify procedures related to noncompliant accounts.

DATES: Effective October 31, 2022.

FOR FURTHER INFORMATION CONTACT: Megan Efthimiadis, Assistant to the 
General Counsel, by email at [email protected] or telephone at (202) 
707-8350.

SUPPLEMENTARY INFORMATION: 

I. Background

    On February 4, 2022, the Office published a notice of proposed 
rulemaking (``NPRM'') to amend its regulations governing remitter 
payments for its services and requirements for maintaining a deposit 
account.\1\ Specifically, the Office proposed to consolidate all 
regulations related to the types of payment methods it will accept for 
services into a single set of provisions to ensure consistency as it 
moves to an integrated enterprise information technology (IT) 
system.\2\ The proposed rule enumerated three methods accepted for 
remitting a payment: (1) Electronic payments through Pay.gov; (2) 
mailed payments by check or money order; and (3) in-person payments by 
check, money order, credit or debit card, or currency, by appointment 
at the Office's Public Information Office.\3\
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    \1\ 87 FR 6452 (Feb. 4, 2022).
    \2\ Id. at 6454.
    \3\ Id. at 6454.
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    Next, the Office proposed simplifying requirements to maintain a 
deposit account, and set forth rules establishing the procedures for 
account closures. The proposed rule set forth five substantive 
amendments. First, the Office recommended eliminating the requirement 
that a deposit account holder engage in a minimum number of 
transactions per year.\4\ Second, the Office proposed imposing a 
service charge of $25 for each month a deposit account balance fell 
below $450.\5\ Third, the NPRM provided for the inactivation of deposit 
accounts if (1) there has been no activity in the account for 24 
months; (2) the account holder overdraws the account; or (3) the 
account has insufficient funds at the end of the month to pay the 
service charge for an account balance below $450.\6\ Fourth, the Office 
proposed codifying its procedures for closing noncompliant

[[Page 59307]]

and inactivated deposit accounts, including the circumstances for 
closure and the process for returning any remaining funds to the 
account holder.\7\ Finally, the Office recommended eliminating from the 
regulations references to automatic replenishment of deposit accounts, 
based on its understanding at the time the NPRM was prepared that 
Pay.gov lacked the ability to provide such an automatic replenishment 
feature.\8\
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    \4\ Id. at 6454.
    \5\ Id. at 6454.
    \6\ Id. at 6454-55.
    \7\ Id. at 6455.
    \8\ 87 FR 6455.
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    The Office received four relevant comments in response to the NPRM. 
Author Services, Inc. endorsed the proposed amendments in full, and had 
no further suggestions.\9\ The Motion Picture Association, Inc. 
(``MPA''), expressing no objection to the proposed rules regarding 
deposit accounts, noted that its members valued the automatic-
replenishment feature available in other areas of the Office (e.g., the 
eCo system for registrations), and ``urge[d] the Office to ensure that 
the payment systems in any updated versions of the registration and 
recordation systems include an automatic replenishment feature as 
well.'' \10\ Finally, Copyright Alliance and Marilyn D. Cameron 
submitted comments that were generally supportive of the amendments in 
the proposed rule, but contained several concerns that are addressed in 
more detail below.\11\
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    \9\ Author Services, Inc. Comments at 1.
    \10\ MPA Comments at 2.
    \11\ Copyright Alliance Comments at 1-4; Marilyn D. Cameron 
Comments at 1.
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II. Discussion

A. Remitter Payment Options

    Most commenters supported the provisions of the proposed rule that 
consolidate the regulations governing the types of payment methods the 
Office will accept for services.\12\ Accordingly, those provisions are 
adopted in the final rule without alteration.
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    \12\ See e.g., Copyright Alliance Comments at 1. Marilyn D. 
Cameron requested that ``all other rules attached to the 
announcement and do not have any relevance to Remitter Payment 
Options and Deposit Account Requirements, for example Section 
201.33, be removed from this round of comments and a new Federal 
Register proposal written for a later date.'' Marilyn D. Cameron 
Comments at 1. Because each of the proposed amendments, including 
the amendment proposed to Sec.  201.33(e) regarding the fee and 
method of payment, relate to payment options available to remitters, 
the Office declines to remove the rule.
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    In addition to ``applaud[ing] the Office's efforts to modernize and 
consolidate regulations regarding payment options for Copyright Office 
services,'' Copyright Alliance encouraged the Office to ``accommodate 
the diversity of copyright owners engaging with the Office's systems'' 
by permitting payment using ``prepaid cards and other widely accepted 
online payment options, like PayPal, Zelle, Venmo, and CashApp.'' \13\ 
The Office appreciates Copyright Alliance's concern and shares its aim 
to broaden participation in the copyright system. While payment using 
prepaid cards is not currently supported by Pay.gov, the Office will 
enable the Pay.gov feature to accept Paypal and Amazon digital wallet 
options to better accommodate a broader range of stakeholders. The 
Office will continue to consider additional options to improve 
accessibility as Pay.gov expands its capabilities.
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    \13\ Copyright Alliance Comments at 1-2.
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B. Deposit Accounts

    With respect to the proposed rule simplifying requirements for 
maintaining deposit accounts, commenters universally endorsed the 
Office's amendment to eliminate the minimum-transaction-per-year 
requirement.\14\ Copyright Alliance expressed appreciation for the 
``Office's decision to continue allowing stakeholders to use deposit 
accounts, as well as the decision to eliminate the requirement for a 
minimum number of transactions per year.'' \15\
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    \14\ See e.g., id. at 2.
    \15\ Id.
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    However, some commenters disagreed with the Office's proposal to 
assess a service charge of $25 for each month a deposit account balance 
fell below $450. One commenter opposed the fee outright, calling it 
``[t]oo much'' as ``many individuals find a minimum deposit amount a 
challenge, especially during the pandemic.'' \16\ Copyright Alliance 
argued that imposing a service charge ``without first notifying the 
account holder that the account has fallen below the minimum balance'' 
``will only exacerbate a problem . . . that might otherwise be easily 
resolved.'' \17\ Commenters encouraged the Office to ``notify the 
account holder so that they can add the necessary funds'' before 
assessing any service charge \18\ and before any account 
inactivation.\19\ Finally, Copyright Alliance probed whether the Office 
could permit automatic replenishment, advising, ``rather than assessing 
a $25 service charge if an account falls below the minimum balance, the 
regulations should permit automatic replenishment of those deposit 
accounts.'' \20\
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    \16\ Marilyn D. Cameron Comments at 1.
    \17\ Copyright Alliance Comments at 2-3.
    \18\ Id. at 3.
    \19\ Marilyn D. Cameron Comments at 1.
    \20\ Copyright Alliance Comments at 3.
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    As an initial matter, it has been and will remain the Office's 
practice to send automatic notifications to account holders when their 
balances drop below the minimum balance. Similarly, notifications are 
and will be provided before the Office takes any action to inactivate 
or close an account. To ensure that these notifications are received, 
the Office encourages account holders to keep their contact information 
current.
    Regarding the service charge, the Office proposed the fee to 
incentivize deposit account holders to maintain sufficient funds in 
deposit accounts and avoid any overdraft of the account, which is 
subject to a penalty (currently $285). Ultimately, the Office's goal is 
to help account holders maintain sufficient balances to prevent 
additional penalties and delays. Copyright Alliance's comment led the 
Office to consider again the availability of an automatic replenishment 
option. While our initial inquiry had suggested that this option was 
not available,\21\ further investigation has determined that an 
automatic recurring payment option (via ACH transactions) can be used 
to automatically replenish deposit accounts through Pay.gov. Therefore, 
the Office will test the practical application of such a feature for 
deposit accounts. Once confirmed operable, the Office will announce 
details on how this feature can be used.
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    \21\ 87 FR 6454.
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    In addition, given commenters' concern regarding the potential 
financial burden for those account holders who find the minimum balance 
amount difficult to maintain, we will pause the implementation of any 
service charge to further assess whether there is a need for measures 
to incentivize balance maintenance. Accordingly, the final rule omits 
any reference to the proposed service charge, and instead provides that 
the Office will automatically notify account holders when their 
accounts fall below a minimum balance of $450, as the previous rule 
prescribed.
    Finally, while commenters did not raise specific concerns regarding 
the NPRM's inactivation and closure procedures beyond objecting to 
inactivation or closure based on a failure to pay the proposed service 
charge, the Office acknowledges their general desire for more 
communication regarding account status issues. Thus, in addition to 
removing references to the previously proposed service charge, the

[[Page 59308]]

final rule explains that the Office will automatically notify account 
holders when their accounts are made inactive due to prolonged 
inactivity or overdrawal of the account. Reflecting current procedures, 
the final rule further provides that an inactive deposit account will 
only be closed 30 days from the date of the inactivation notice if 
there continues to be no activity or if insufficient funds remain in 
the account.

C. Technical Changes

    Lastly, the final rule includes a few non-substantive technical 
revisions to clarify certain phrases and terms.

List of Subjects

37 CFR Part 201

    Copyright, General provisions.

37 CFR Part 202

    Copyright, Preregistration and registration of claims to copyright.

Final Regulations

    For the reasons set forth in the preamble, the Copyright Office 
amends 37 CFR parts 201 and 202 as follows:

PART 201--GENERAL PROVISIONS

0
1. The authority citation for part 201 continues to read as follows:

    Authority: 17 U.S.C. 702.
    Section 201.10 also issued under 17 U.S.C. 304.


0
2. Amend Sec.  201.6 by:
0
a. Revising paragraphs (a) and (b); and
0
b. Removing the parenthetical authority citation at the end of the 
section.
    The revisions read as follows:


Sec.  201.6  Payment and refund of Copyright Office fees.

    (a) In general--(1) Electronic payments. All fees for online 
applications and services must be paid by electronic payment through 
Pay.gov.
    (2) Mailed payments. All fees mailed to the Copyright Office should 
be in the form of a money order or check payable to the U.S. Copyright 
Office. Currency will not be accepted; any payment received in currency 
will be refunded via check, and the registration or other service 
request will not be processed. Where the statutory fee is submitted in 
the form of a check, the registration of the copyright claim or other 
record made by the Office is provisional until the funds associated 
with the check are received. In the event the fee is not paid, the 
provisional registration or other record shall be expunged.
    (3) In-person payments. All fees for services rendered in person at 
the Copyright Office Public Information Office must be paid by cash, 
money order, check, or credit or debit card.
    (4) Foreign remittances. Foreign remittances must be redeemable 
without service or exchange fees through a United States institution, 
must be payable in United States dollars, and must be imprinted with 
American Banking Association routing numbers. Postal money orders that 
are negotiable only at a post office are not acceptable. International 
checks and money orders must be drawn from a United States bank and 
payable in United States dollars for the full amount of the fee 
required. Uncertified checks are accepted subject to collection.
    (5) Other. In addition to the payment options in paragraphs (a)(1) 
through (3) of this section, payment for any application or service can 
be made using a Copyright Office deposit account.
    (b) Deposit accounts--(1) Establishment. Persons or firms may 
prepay copyright expenses by establishing a deposit account.
    (2) Minimum balance. The Office will automatically notify the 
deposit account holder when the account goes below a minimum balance of 
$450.
    (3) Contact information. (i) Deposit account holders are 
responsible for keeping contact information with the Copyright Office 
current.
    (ii) If the Copyright Office is unable to correspond with the 
deposit account holder (e.g., due to returned/undeliverable postal or 
email), the Office will deem the deposit account undeliverable.
    (4) Inactivation. (i) The Copyright Office will inactivate a 
deposit account if there has been no activity in the account for 24 
months.
    (ii) The Copyright Office will inactivate a deposit account if the 
deposit account holder overdraws his or her account.
    (iii) The Copyright Office will automatically notify the deposit 
account holder when the account has been inactivated.
    (5) Closure. (i) An inactive deposit account will be closed no 
sooner than 30 days from the date of the inactivation notice if there 
continues to be no activity in the account or if insufficient funds 
remain in the deposit account after the deposit account holder 
overdraws the account.
    (ii) The Copyright Office may permanently close a deposit account 
if the deposit account holder overdraws his or her account twice in any 
calendar year.
    (iii) An undeliverable deposit account as defined in paragraph 
(b)(3)(ii) of this section will be closed after the Copyright Office 
has made at least three unsuccessful attempts, including at least one 
attempt by phone if a deposit account holder provided a telephone 
number, to correspond with the deposit account holder. Attempts at 
corresponding with the deposit account holder may be considered 
unsuccessful if the postal or email correspondence is returned as 
undeliverable.
    (iv) Any funds remaining in a closed deposit account will be 
applied to any pending or processed service request(s) for which 
payment is due. If there are insufficient funds to cover the total of 
all fees due for any service, the service request(s) will not be 
processed.
    (v) Any balance remaining in a closed deposit account will be 
refunded to the account holder in accordance with Copyright Office 
policies. Unredeemed refunds will be handled in accordance with Library 
of Congress and U.S. Treasury rules and policies.
    (vi) The Copyright Office may refer any overdraft in a closed 
deposit account for collections.
    (6) Further information. For information on deposit accounts, see 
Circular 5 on the Copyright Office's website, or request a copy at the 
address specified in Sec.  201.1(b).
* * * * *

0
3. Amend Sec.  201.33 by revising paragraph (e) to read as follows:


Sec.  201.33  Procedures for filing Notices of Intent to Enforce a 
restored copyright under the Uruguay Round Agreements Act.

* * * * *
    (e) Fee. The filing fee for recording Notices of Intent to Enforce 
is prescribed in Sec.  201.3(c).
* * * * *


Sec.  201.39  [Amended]

0
4. Amend Sec.  201.39 by removing paragraph (g)(3).

PART 202--PREREGISTRATION AND REGISTRATION OF CLAIMS TO COPYRIGHT

0
5. The authority citation for part 202 continues to read as follows:

    Authority: 17 U.S.C. 408(f), 702.


Sec.  202.3  [Amended]

0
6. Amend Sec.  202.3 by removing paragraph (b)(2)(i)(C) and 
redesignating paragraph (b)(2)(i)(D) as paragraph (b)(2)(i)(C) and 
removing the parenthetical authority citation at the end of the 
section.

0
7. Amend Sec.  202.12 by revising paragraph (c)(2) to read as follows:

[[Page 59309]]

Sec.  202.12  Restored copyrights.

* * * * *
    (c) * * *
    (2) Fee. The filing fee for registering a copyright claim in a 
restored work is prescribed in Sec.  201.3(c) of this chapter.
* * * * *

0
8. Amend Sec.  202.16 by revising paragraph (c)(5) to read as follows:


Sec.  202.16  Preregistration of copyrights.

* * * * *
    (c) * * *
    (5) Fee. The filing fee for preregistration is prescribed in Sec.  
201.3(c) of this chapter.
* * * * *

0
9. Amend Sec.  202.23 by revising paragraph (e)(2) to read as follows:


Sec.  202.23  Full term retention of copyright deposits.

* * * * *
    (e) * * *
    (2) Payment in the amount prescribed in Sec.  201.3(d) of this 
chapter payable to the U.S. Copyright Office, must be received in the 
Copyright Office within 60 calendar days from the date of mailing of 
the Copyright Office's notification to the requestor that full-term 
retention has been granted for a particular copyright deposit.
* * * * *

    Dated: September 22, 2022.
Shira Perlmutter,
Register of Copyrights and Director of the U.S. Copyright Office.

    Approved by:
Carla D. Hayden,
Librarian of Congress.
[FR Doc. 2022-21294 Filed 9-29-22; 8:45 am]
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