[Federal Register Volume 87, Number 231 (Friday, December 2, 2022)]
[Rules and Regulations]
[Pages 73940-73941]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-26229]


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

LIBRARY OF CONGRESS

Copyright Royalty Board

37 CFR Part 380

[Docket No. 19-CRB-0005-WR (2021-2025) COLA (2023)


Cost of Living Adjustment to Royalty Rates for Webcaster 
Statutory License

AGENCY: Copyright Royalty Board (CRB), Library of Congress.

ACTION: Final rule; cost of living adjustment.

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

SUMMARY: The Copyright Royalty Judges announce a cost of living 
adjustment (COLA) in the royalty rates that commercial and 
noncommercial noninteractive webcasters pay for eligible transmissions 
pursuant to the statutory licenses for the public performance of and 
for the making of ephemeral reproductions of sound recordings.

DATES: 
    Effective date: December 2, 2022.
    Applicability date: These rates are applicable to the period 
January 1, 2023, through December 31, 2023.

FOR FURTHER INFORMATION CONTACT: Anita Brown, (202) 707-7658, 
[email protected].

SUPPLEMENTARY INFORMATION: Sections 112(e) and 114(f) of the Copyright 
Act, title 17 of the United States Code, create statutory licenses for 
certain digital performances of sound recordings and the making of 
ephemeral reproductions to facilitate transmission of those sound 
recordings. On October 27, 2021, the Copyright Royalty Judges (Judges) 
adopted final regulations governing the rates and terms of copyright 
royalty payments under those licenses for the license period 2021-2025 
for performances of sound recordings via eligible transmissions by 
commercial and noncommercial noninteractive webcasters. See 86 FR 
59452.
    Pursuant to those regulations, at least 25 days before January 1 of 
each year from 2022 to 2025, the Judges shall publish in the Federal 
Register notice of a COLA applicable to the royalty fees for 
performances of sound recordings via eligible transmissions by 
commercial and noncommercial noninteractive webcasters. 37 CFR 380.10.
    The adjustment in the royalty fee shall be based on a calculation 
of the percentage increase in the CPI-U from the CPI-U published in 
November 2020 (260.229), according to the formula: for subscription 
performances, (1 + (Cy-260.229)/260.229) x $0.0026; for 
nonsubscription performances, (1 + (Cy-260.229)/260.229) x 
$0.0021; for performances by a noncommercial webcaster in excess of 
159,140 ATH per month, (1 + (Cy-260.229)/260.229) x $0.0021; 
where Cy is the CPI-U published by the Secretary of Labor 
before December 1 of the preceding year. The adjusted rate shall be 
rounded to the nearest fourth decimal place. 37 CFR 380.10(c). The CPI-
U published by the Secretary of Labor from the most recent index 
published before December 1, 2022, is 298.012.\1\ Applying the formula 
in 37 CFR 380.10(c) and rounding to the nearest fourth decimal place 
results in an increase in the rates for 2023.
---------------------------------------------------------------------------

    \1\ This CPI-U was announced on November 10, 2022, by the Bureau 
of Labor Statistics in its Consumer Price Index News Release--
Consumer Price Index, available at https://www.bls.gov/news.release/cpi.htm at Table 1.
---------------------------------------------------------------------------

    The 2023 rate for eligible transmissions of sound recordings by 
commercial webcasters is $0.0030 per subscription performance and 
$0.0024 per nonsubscription performance.
    Application of the increase to rates for noncommercial webcasters 
results in a 2023 rate of $0.0024 per performance for all digital audio 
transmissions in excess of 159,140 ATH in a month on a channel or 
station.
    As provided in 37 CFR 380.10(d), the royalty fee for making 
ephemeral recordings under section 112 of the Copyright Act to 
facilitate digital transmission of sound recordings under section 114 
of the Copyright Act is included in the section 114 royalty fee and 
comprises 5% of the total fee.

List of Subjects in 37 CFR Part 380

    Copyright; sound recordings.

Final Regulations

    In consideration of the foregoing, the Judges amend part 380 of 
title 37 of the Code of Federal Regulations as follows:

PART 380--RATES AND TERMS FOR TRANSMISSIONS BY ELIGIBLE 
NONSUBSCRIPTION SERVICES AND NEW SUBSCRIPTION SERVICES AND FOR THE 
MAKING OF EPHEMERAL REPRODUCTIONS TO FACILITATE THOSE TRANSMISSIONS

0
1. The authority citation for part 380 continues to read as follows:

    Authority:  17 U.S.C. 112(e), 114(f), 804(b)(3).


0
2. Section 380.10 is amended by revising paragraph (a) to read as 
follows:

[[Page 73941]]

Sec.  380.10  Royalty fees for the public performance of sound 
recordings and the making of ephemeral recordings.

    (a) Royalty fees. For the year 2023, Licensees must pay royalty 
fees for all Eligible Transmissions of sound recordings at the 
following rates:
    (1) Commercial webcasters: $0.0030 per Performance for subscription 
services and $0.0024 per Performance for nonsubscription services.
    (2) Noncommercial webcasters: $1,000 per year for each channel or 
station and $0.0024 per Performance for all digital audio transmissions 
in excess of 159,140 ATH in a month on a channel or station.
* * * * *

    Dated: November 28, 2022.
David P. Shaw,
Chief Copyright Royalty Judge.
[FR Doc. 2022-26229 Filed 12-1-22; 8:45 am]
BILLING CODE 1410-72-P