[Federal Register Volume 88, Number 17 (Thursday, January 26, 2023)]
[Proposed Rules]
[Pages 4928-4935]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-01521]


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

LIBRARY OF CONGRESS

Copyright Royalty Board

37 CFR Part 381

[Docket No. 21-CRB-0002-PBR (2023-2027)]


Determination of Rates and Terms for Public Broadcasting (PB IV)

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

ACTION: Proposed rule.

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

SUMMARY: The Copyright Royalty Judges solicit comments on proposed 
rates and terms for use of certain works in connection with 
noncommercial broadcasting for the period from January 1, 2023, through 
December 31, 2027.

DATES: Comments and objections, if any, are due on or before February 
27, 2023.

ADDRESSES: You may submit comments and objections, identified by docket 
number 21-CRB-0002-PBR (2023-2027), online through eCRB at https://app.crb.gov.
    Instructions: To send your comment through eCRB, if you don't have 
a user account, you will first need to register for an account and wait 
for your registration to be approved. Approval of user accounts is only 
available during business hours. Once you have an approved account, you 
can only sign in and file your comment after setting up multi-factor 
authentication, which can be done at any time of day. All comments must 
include the Copyright Royalty Board name and the docket number for this 
proposed rule. All properly filed comments will appear without change 
in 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, the Copyright Royalty Board's electronic 
filing and case management system, at https://app.crb.gov/, and search 
for docket number 21-CRB-0002-PBR (2023-2027).

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

SUPPLEMENTARY INFORMATION:

Background

    Section 118 of the Copyright Act, title 17 of the United States 
Code, establishes a statutory license for the use of certain 
copyrighted works in connection with noncommercial television and radio 
broadcasting. Chapter 8 of the Copyright Act requires the Copyright 
Royalty Judges (Judges) to conduct proceedings every five years to 
determine the rates and terms for the section 118 license. 17 U.S.C. 
801(b)(1), 804(b)(6). In accordance with section 804(b)(6), the Judges 
commenced the proceeding to set rates and terms for the period 2023-
2027 on January 5, 2021. (86 FR 325).

[[Page 4929]]

    In the Federal Register notice, the Judges requested that 
interested parties submit petitions to participate. 86 FR 325 (January 
5, 2021). Petitions to Participate (PTPs) were received from: The 
American Society of Authors, Composers and Publishers (ASCAP); SESAC 
Performing Rights, LLC (SESAC); Broadcast Music, Inc. (BMI); 
Educational Media Foundation (EMF); Corporation for Public Broadcasting 
(CPB), National Public Radio (NPR), and the Public Broadcasting Service 
(PBS), jointly (the Public Broadcasting Entities (PBE)); National 
Religious Broadcasters Noncommercial Music License Committee NRBNMLC); 
the Church Music Publishers' Association (CMPA); The Harry Fox Agency 
(HFA); Global Music Rights, LLC (GMR); and David Powell.
    The Judges set the timetable for the three-month negotiation 
period, see 17 U.S.C. 803(b)(3), and directed the participants to 
submit written direct statements no later than September 10, 2021. 
Notice of Participants, Commencement of Voluntary Negotiation Period, 
and Case Scheduling Order (Feb. 9, 2021). The Judges amended the case 
schedule four times to accommodate ongoing negotiations. See Order 
Granting Joint Motion to Postpone Submission of Written Direct 
Statements (Dec. 1, 2021). In July 2021, September 2021, November 2021, 
and December 2022 participants filed notices of settlement and proposed 
rates and terms for adoption \1\. No participant filed a written direct 
statement.
---------------------------------------------------------------------------

    \1\ The Judges received no notice of settlement or proposed 
rates and terms from participant David Powell.
---------------------------------------------------------------------------

    There are two ways copyright owners and public broadcasting 
entities \2\ may negotiate rates and terms under the section 118 
statutory license. First, copyright owners may negotiate rates and 
terms with specific public broadcasting entities for the use of all of 
the copyright owners' works covered by the license. Section 118(b)(2) 
provides that such license agreements ``shall be given effect in lieu 
of any determination by the * * * Copyright Royalty Judges,'' provided 
that copies of the agreement are submitted to the Judges ``within 30 
days of execution.'' 17 U.S.C. 118(b)(2). The Judges received five 
agreements in this category for which no further action is required.\3\
---------------------------------------------------------------------------

    \2\ A ``public broadcasting entity'' is defined as a 
``noncommercial educational broadcast station as defined in section 
397 of title 47 and any nonprofit institution or organization 
engaged in the activities described in paragraph (2) of subsection 
(c)'' of section 118. 17 U.S.C. 118(f).
    \3\ The Judges received agreements with PBE from BMI, HFA, 
SESAC, ASCAP, and GMR on October 29, 2021; November 2, 2021; 
November 2, 2021; January 28, 2022, and December 29, 2022, 
respectively.
---------------------------------------------------------------------------

    Second, copyright owners and public broadcasting entities may 
negotiate rates and terms for categories of copyrighted works and uses 
that would be binding on all owners and entities using the same license 
and submit them to the Judges for approval. Section 801(b)(7)(A) of the 
Copyright Act authorizes the Judges to adopt rates and terms negotiated 
by ``some or all of the participants in a proceeding at any time during 
the proceeding'' provided they are submitted to the Judges for 
approval. This section provides that the Judges shall provide notice 
and an opportunity to comment on the agreement to (1) those that would 
be bound by the terms, rates, or other determination set by the 
agreement and (2) participants in the proceeding that would be bound by 
the terms, rates, or other determination set by the agreement. In 
addition, the Judges shall provide participants in the proceeding the 
opportunity to object to its adoption as a basis for statutory rates 
and terms. See section 801(b)(7)(A). The Judges may decline to adopt 
the agreement as a basis for statutory terms and rates for participants 
not party to the agreement if any participant objects and the Judges 
conclude that the agreement does not provide a reasonable basis for 
setting statutory terms or rates. Id.
    The Judges received negotiated rates and terms from ASCAP (Jul. 2, 
2021), BMI (May 17, 2021), GMR (Sept. 9, 2021) and SESAC (Sept. 3, 
2021), and jointly from all four (Dec. 7, 2022) regarding rates for 
compositions in their repertories by certain public broadcasters \4\; 
and from NRBNMLC jointly with ASCAP (Sept. 9, 2021), BMI (Sept. 10, 
2021), GMR (Sept. 9, 2021, and Dec, 7, 2022)), SESAC (Sept. 10, 2021) 
and HFA (June 21, 2021) regarding rates for compositions in their 
repertories by certain other public broadcasters.\5\
---------------------------------------------------------------------------

    \4\ The joint proposal aggregates the separate proposals and is 
to be considered in place of them. See Joint Proposal at 1 n.1.
    \5\ The Judges already published for comment the proposed rates 
and terms the Judges received early in 2021 from three participants. 
See 86 FR 34674 (Jul. 1, 2021) (BMI proposal); 86 FR 34676 (Jul. 1, 
2021) (HFA/NRBNMLC proposal). The comment period has ended, and the 
Judges received no comments. To minimize confusion that may occur 
from issuing more than one final rule, those proposed rates are 
repeated in the regulatory language of this proposed rule and the 
Judges do not seek comment on them.
---------------------------------------------------------------------------

ASCAP, BMI, GMR, and SESAC Joint Proposal

    The joint proposal of ASCAP,\6\ BMI, GMR, and SESAC proposes to 
modify the royalty rates set forth in Sec.  381.5. The rates proposed 
regarding ASCAP reflect a modification of the fees in different rate 
tiers. Joint Proposal at 4, App. A. The SESAC submission retains a flat 
rate, which it proposes adjusting, starting in 2023, by the change in 
the Consumer Price Index or one-and-a-half percent, whichever is 
greater. SESAC Proposal App. A.
---------------------------------------------------------------------------

    \6\ The joint proposal is supported by the National Association 
of College and University Business Officers (NACUBO) and implicitly 
by the American Council on Education (ACE). Joint Proposal at 3 n.2.
---------------------------------------------------------------------------

    The GMR proposals add a section for compositions in its repertory 
that provide for an initial rate for 2023; provide for adjusting that 
rate, starting in 2024, by the change in the Consumer Price Index or 
one-and-a-half percent, whichever is greater; add a term providing rate 
options for certain entities broadcasting primarily in a religious 
format; and add references to GMR in paragraphs related to the rates. 
See Joint PROs Proposal. App. A at 9.\7\
---------------------------------------------------------------------------

    \7\ The Joint PROs Proposal was filed subsequent to GMR's motion 
of December 2, 2022, requesting amendments to Sec. Sec.  381.1, 
381.5, and 381.10, and thus the motion is DENIED as moot.
---------------------------------------------------------------------------

NRBNMLC Joint Proposals

    The joint proposals entered into by NRBNMLC and each of ASCAP, BMI, 
GMR, and SESAC \8\ propose adjusting the rates and structure in (ASCAP, 
BMI, SESAC), and adding some rates to (GMR), the current provisions set 
forth in Sec.  381.6, and replacing ``January 1, 2018'' with ``January 
1, 2023'' and ``December 31, 2022'' with ``December 31, 2027'' in Sec.  
381.1.\9\ ASCAP and NRBNMLC Joint proposal at 3; BMI and NRBNMLC Joint 
proposal at 5; SESAC and NRBNMLC Joint proposal at 3; GMR and NRBNMLC 
Joint proposal at 4.
---------------------------------------------------------------------------

    \8\ All proposals mention that EMF joins in the proposals. The 
ASCAP and NRBNMLC joint proposal mention that Church Music 
Publishers Association., Inc., supports the proposal.
    \9\ Proposed changes to Sec.  381.7(b)(4) pursuant to a joint 
proposal from HFA and NRBNMLC were published on June 30, 2021, and 
are published again here, not for comment but rather in order to 
include all proposed changes to Sec.  381 in one document.
---------------------------------------------------------------------------

    Three of the four joint proposals (those from NRBNMLC and ASCAP, 
SESAC, and GMR) propose a revision to 381.6(4) to add the words ``in 
the aggregate''. All participants proposing the revision later agree 
that the revision is not necessary, NRBNMLC being the only one bound by 
that provision. NRBNMLC supports the language change, but would not 
object to maintaining the current language if the

[[Page 4930]]

published document of the rates makes clear ``that the $1 fee is a one-
time aggregate fee that merely ensures universal rate coverage, not a 
fee assessed multiple times.'' See Response of the NRBNMLC to the CRJ's 
Order 6 . . . at 4-5 (Dec, 7, 2022). The Judges have thus hereby stated 
the clarification from the NRBNMLC in this supplementary information.

PBE Joint Proposals

    The Judges received a joint proposal from PBE and HFA to modify the 
fees in Sec.  381.7 for uses that would be binding on all owners and 
entities using the same license.
    The Judges received a joint proposal from CPB and PBS to continue 
the existing rates in Sec.  381.8 for the use of and making 
reproductions of published pictorial, graphic, and sculptural works, 
and to make changes to the terms regarding when those rates apply and 
related reporting requirements.\10\
---------------------------------------------------------------------------

    \10\ Corporation for Public Broadcasting (CPB), National Public 
Radio (NPR), and Public Broadcasting Service (PBS) filed a ``Joint 
petition'' to participate in this proceeding, as petitioners with 
similar interests under the designation Public Broadcasting Entities 
(PBE), pursuant to 37 CFR 351.1(b)(1)(ii). The participants that 
submitted the joint proposal, CPB and PBS, share similar interests, 
but the Judges do not presume or find that they share identical 
interests. Under the present circumstances, the Judges consider the 
CPB and PBS proposal pursuant to section 801(b)(7)(A).
---------------------------------------------------------------------------

Proposal re Format of Cue Sheets and Summaries

    The Judges propose technical revisions to Sec. Sec.  381.7(e) and 
381.8(e)(1) to require online filing of cue sheets or summaries in lieu 
of submissions of electronic copies on compact disk or floppy diskette. 
This change would conform these sections with Sec.  303.5(a) that 
generally requires online filing of documents in eCRB.
    As noted above, the members of the public may comment on, and 
participants in this rate proceeding may comment on and object to, any 
or all of the proposed regulations and the proposed technical revision 
contained in this document.

List of Subjects in 37 CFR Part 381

    Copyright, Music, Radio, Television, Rates.

Proposed Regulations

    For the reasons set forth in the preamble, the Copyright Royalty 
Judges propose to amend part 381 to chapter III of title 37 of the Code 
of Federal Regulations as set forth below:

PART 381--USE OF CERTAIN COPYRIGHTED WORKS IN CONNECTION WITH 
NONCOMMERCIAL EDUCATIONAL BROADCASTING

0
1. The authority citation for part 381 continues to read as follows:

    Authority:  17 U.S.C. 118, 801(b)(1) and 803.


Sec.  381.1  [Amended]

0
2. In Sec.  381.1, remove they year ``2018'' and add in its place the 
year ``2023'', and remove the year ``2022'' and add in its place the 
year ``2027''.
0
3. In Sec.  381.4, revise paragraphs (a) and (c) a to read as follows:


Sec.  381.4  Performance of musical compositions by PBS, NPR and other 
public broadcasting entities engaged in the activities set forth in 17 
U.S.C. 118(c).

    (a) Determination of royalty rate. The following rates and terms 
shall apply to the performance by the Public Broadcasting Service 
(PBS), National Public Radio (NPR) and other public broadcasting 
entities engaged in activities set forth in 17 U.S.C. 118(c) of 
copyrighted published nondramatic musical compositions, except for 
public broadcasting entities covered by Sec. Sec.  381.5 and 381.6, and 
except for compositions which are the subject of voluntary license 
agreements: The royalty shall be $1.
* * * * *
    (c) Records of use. PBS and NPR shall, upon the request of a 
copyright owner of a published musical work who believes a musical 
composition of such owner has been performed under the terms of this 
schedule, permit such copyright owner a reasonable opportunity to 
examine their standard cue sheets listing the nondramatic performances 
of musical compositions on PBS and NPR programs. Any local PBS and NPR 
station that shall be required by the provisions of any voluntary 
license agreement with American Society of Authors, Composers and 
Publishers (ASCAP), Broadcast Music, Inc. (BMI), Global Music Rights, 
LLC (GMR) or SESAC Performing Rights, LLC (SESAC) covering the license 
period January 1, 2023, to December 31, 2027, to provide a music use 
report shall, upon request of a copyright owner who believes a musical 
composition of such owner has been performed under the terms of this 
schedule, permit such copyright owner to examine the report.
0
4. In Sec.  381.5, revise paragraphs (c) through (e) to read as 
follows:


Sec.  381.5  Performance of musical compositions by public broadcasting 
entities licensed to colleges and universities.

* * * * *
    (c) Royalty rate. A public broadcasting entity within the scope of 
this section may perform published nondramatic musical compositions 
subject to the following schedule of royalty rates:
    (1) For all such compositions in the repertory of ASCAP, the 
royalty rates shall be as follows:
    (i) Music Fees.

                                                             Table 1 to Paragraph (c)(1)(i)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                          Number of full-
                                                           time students       2023            2024            2025            2026            2027
--------------------------------------------------------------------------------------------------------------------------------------------------------
Level 1.................................................         < 1,000            $390            $400            $410            $421            $432
Level 2.................................................     1,000-4,999             451             463             475             487             500
Level 3.................................................     5,000-9,999             619             635             652             669             686
Level 4.................................................   10,000-19,999             801             822             843             865             887
Level 5.................................................        20,000 +           1,009           1,035           1,062           1,090           1,118
--------------------------------------------------------------------------------------------------------------------------------------------------------

    (ii) Level 1 rates as set forth in paragraph (c)(1)(i) of this 
section, shall also apply to College Radio Stations with an authorized 
effective radiated power (ERP), as that term is defined in 47 CFR 
73.310(a), of 100 Watts or less, as specified on its current (Federal 
Communications Commission (FCC) license, regardless of the size of the 
student population.

[[Page 4931]]

    (2) For all such compositions in the repertory of BMI, the royalty 
rates shall be as follows:
    (i) Music fees.

                                                             Table 2 to Paragraph (c)(2)(i)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                          Number of full-
                                                           time students       2018            2019            2020            2021            2022
--------------------------------------------------------------------------------------------------------------------------------------------------------
Level 1.................................................          <1,000            $390            $400            $410            $421            $432
Level 2.................................................     1,000-4,999             451             463             475             487             500
Level 3.................................................     5,000-9,999             619             635             652             669             686
Level 4.................................................   10,000-19,999             801             822             843             865             887
Level 5.................................................        20,000 +           1,009           1,035           1,062           1,090           1,118
--------------------------------------------------------------------------------------------------------------------------------------------------------

    (ii) Level 1 rates, as set forth in paragraph (c)(2)(i) of this 
section, shall also apply to College Radio Stations with an authorized 
effective radiated power (ERP), as that term is defined in 47 CFR 
73.310(a), of 100 Watts or less, as specified on its current FCC 
license, regardless of the size of the student population.
    (3) For all such compositions in the repertory of SESAC, the 
royalty rates shall be as follows:
    (i) 2023: The 2022 rate, subject to an annual cost of living 
adjustment in accordance with paragraph (c)(3)(vi) of this section.
    (ii) 2024: The 2023 rate, subject to an annual cost of living 
adjustment in accordance with paragraph (c)(3)(vi) of this section.
    (iii) 2025: The 2024 rate, subject to an annual cost of living 
adjustment in accordance with paragraph (c)(3)(vi) of this section.
    (iv) 2026: The 2025 rate, subject to an annual cost of living 
adjustment in accordance with paragraph (c)(3)(vi) of this section.
    (v) 2027: The 2026 rate, subject to an annual cost of living 
adjustment in accordance with paragraph (c)(3)(vi) of this section.
    (vi) Such cost of living adjustment to be made in accordance with 
the greater of:
    (A) The change, if any, in the Consumer Price Index (all consumers, 
all items) published by the U.S. Department of Labor, Bureau of Labor 
Statistics during the twelve (12) month period from the most recent 
Index, published before December 1 of the year immediately prior to the 
applicable year; or
    (B) One and one-half percent (1.5%).
    (4) For all such compositions in the repertory of GMR, the royalty 
rates shall be as follows:
    (i) 2023: $174.00 per station, subject to an annual cost of living 
adjustment in accordance with Sec.  381.10.
    (ii) 2024: The 2023 rate, subject to an annual cost of living 
adjustment in accordance with Sec.  381.10.
    (iii) 2025: The 2024 rate, subject to an annual cost of living 
adjustment in accordance with Sec.  381.10.
    (iv) 2026: The 2025 rate, subject to an annual cost of living 
adjustment in accordance with Sec.  381.10.
    (v) 2027: The 2026 rate, subject to an annual cost of living 
adjustment in accordance with Sec.  381.10.
    (vi) For stations broadcasting primarily in a religious format 
(including, without limitation, Contemporary Christian music, praise 
and worship, Gospel, Southern Gospel, Spanish religious music, 
inspirational, religious, etc.), at their option for 2023-2027, either 
the rates set forth in paragraph (c)(4) of this section or the rates 
set forth in Sec.  381.6(d)(4).
    (5) For the performance of all other such compositions: $1.
    (d) Payment of royalty rate. The public broadcasting entity shall 
pay the required royalty rate to ASCAP, BMI, SESAC, and GMR not later 
than January 31 of each year. Each annual payment to ASCAP, BMI, SESAC, 
and GMR shall be accompanied by a signed declaration stating the number 
of full-time students enrolled in the educational entity operating the 
station and/or the effective radiated power (ERP) as specified in its 
current FCC license. An exact copy of such declaration shall be 
furnished to each of ASCAP, BMI, SESAC, and GMR.
    (e) Records of use. A public broadcasting entity subject to this 
section shall furnish to ASCAP, BMI, SESAC, and GMR upon request, a 
music-use report during one week of each calendar year. ASCAP, BMI, 
SESAC, and GMR shall not in any one calendar year request more than 10 
stations to furnish such reports.
0
5. Amend Sec.  381.6 by revising paragraphs (d) through (f) to read as 
follows:


Sec.  381.6  Performance of musical compositions by other public 
broadcasting entities.

* * * * *
    (d) Royalty rate. A public broadcasting entity within the scope of 
this section may perform published nondramatic musical compositions 
subject to the following schedule of royalty rates:
    (1) For all such compositions in the repertory of ASCAP, the 
royalty rates shall be as follows:
    (i) Music Fees (Stations with 20% or more programming containing 
Feature Music):

                                                             Table 1 to Paragraph (d)(1)(i)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                          Calendar years
                                                  Population count       -------------------------------------------------------------------------------
                                                                               2023            2024            2025            2026            2027
--------------------------------------------------------------------------------------------------------------------------------------------------------
Level 1...................................  0-24,999....................            $574            $585            $597            $609            $621
Level 2...................................  25,000-249,999..............             754             769             784             800             816
Level 3...................................  250,000-499,999.............           1,346           1,373           1,400           1,428           1,457
Level 4...................................  500,000-999,999.............           2,017           2,057           2,098           2,140           2,183
Level 5...................................  1,000,000-1,499,999.........           2,691           2,745           2,800           2,856           2,913
Level 6...................................  1,500,000-1,999,999.........           3,363           3,430           3,499           3,569           3,640
Level 7...................................  2,000,000-2,499,999.........           4.035           4,116           4,198           4,282           4.368
Level 8...................................  2,500,000-2,999,999.........           4,708           4,802           4,898           4,996           5,096

[[Page 4932]]

 
Level 9...................................  3,000,000 and above.........           6,726           6,861           6,998           7,138           7,280
--------------------------------------------------------------------------------------------------------------------------------------------------------

    (ii) Talk Format Station Fees (Stations with <20% Feature Music 
programming):

                                                             Table 2 to Paragraph (d)(1)(ii)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                          Calendar years
                                                  Population count       -------------------------------------------------------------------------------
                                                                               2023            2024            2025            2026            2027
--------------------------------------------------------------------------------------------------------------------------------------------------------
Level 1...................................  0-24,999....................            $265            $270            $276            $281            $287
Level 2...................................  25,000-249,000..............             574             585             597             609             621
Level 3...................................  250,000-499,999.............             574             585             597             609             621
Level 4...................................  500,000-999,999.............             574             585             597             609             621
Level 5...................................  1,000,000-1,499,999.........             942             961             980           1,000           1,020
Level 6...................................  1,500,000-1,999,999.........           1,177           1,201           1,225           1,249           1,274
Level 7...................................  2,000,000-2,499,999.........           1,412           1,440           1,469           1,498           1,528
Level 8...................................  2,500,000-2,999,999.........           1,647           1,680           1,714           1,748           1,783
Level 9...................................  3,000,000 and above.........           2,354           2,401           2,449           2,498           2,548
--------------------------------------------------------------------------------------------------------------------------------------------------------

    (2) For all such compositions in the repertory of BMI, the royalty 
rates shall be as follows:
    (i) Music Fees (Stations with 20% or more programming containing 
Feature Music):

                                                             Table 3 to Paragraph (d)(2)(i)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                          Calendar years
                                                  Population count       -------------------------------------------------------------------------------
                                                                               2023            2024            2025            2026            2027
--------------------------------------------------------------------------------------------------------------------------------------------------------
Level 1...................................  0-24,999....................            $574            $585            $597            $609            $621
Level 2...................................  25,000-249,000..............             754             769             784             800             816
Level 3...................................  250,000-499,999.............           1,346           1,373           1,400           1,428           1,457
Level 4...................................  500,000-999,999.............           2,017           2,057           2,098           2,140           2,183
Level 5...................................  1,000,000-1,499,999.........           2,691           2,745           2,800           2,856           2,913
Level 6...................................  1,500,000-1,999,999.........           3,363           3,430           3,499           3,569           3,640
Level 7...................................  2,000,000-2,499,999.........           4,035           4,116           4,198           4,282           4,368
Level 8...................................  2,500,000-2,999,999.........           4,708           4,802           4,898           4,996           5,096
Level 9...................................  3,000,000 and above.........           6,726           6,861           6,998           7,138           7,280
--------------------------------------------------------------------------------------------------------------------------------------------------------

    (ii) Talk Format Station Fees (Stations with <20% Feature Music 
programming):

                                                             Table 4 to Paragraph (d)(2)(ii)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                          Calendar years
                                                  Population count       -------------------------------------------------------------------------------
                                                                               2023            2024            2025            2026            2027
--------------------------------------------------------------------------------------------------------------------------------------------------------
Level 1...................................  0-24,999....................            $265            $270            $276            $281            $287
Level 2...................................  25,000-249,000..............             574             585             597             609             621
Level 3...................................  250,000-499,999.............             574             585             597             609             621
Level 4...................................  500,000-999,999.............             574             585             597             609             621
Level 5...................................  1,000,000-1,499,999.........             942             961             980           1,000           1,020
Level 6...................................  1,500,000-1,999,999.........           1,177           1,201           1,225           1,249           1,274
Level 7...................................  2,000,000-2,499,999.........           1,412           1,440           1,469           1,498           1,528
Level 8...................................  2,500,000-2,999,999.........           1,647           1,680           1,714           1,748           1,783
Level 9...................................  3,000,000 and above.........           2,354           2,401           2,449           2,498           2,548
--------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 4933]]

    (3) For all such compositions in the repertory of SESAC, the 
royalty rates shall be as follows:
    (i) Music fees for stations with >=20% Feature Music programming:

                                                             Table 5 to Paragraph (d)(3)(i)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                  Population count             2023            2024            2025            2026            2027
--------------------------------------------------------------------------------------------------------------------------------------------------------
Level 1...................................  0-24,999....................            $189            $192            $196            $200            $204
Level 2...................................  25,000-249,000..............             189             192             196             200             204
Level 3...................................  250,000-499,999.............             315             321             328             334             341
Level 4...................................  500,000-999,999.............             473             482             492             502             512
Level 5...................................  1,000,000-1,499,999.........             630             643             656             669             682
Level 6...................................  1,500,000-1,999,999.........             789             805             821             837             854
Level 7...................................  2,000,000-2,499,999.........             945             964             983           1,003           1,023
Level 8...................................  2,500,000-2,999,999.........           1,104           1,126           1,149           1,172           1,195
Level 9...................................  3,000,000 and above.........           1,577           1,608           1,640           1,673           1,707
--------------------------------------------------------------------------------------------------------------------------------------------------------

    (ii) Talk fees for stations with <20% Feature Music programming:

                                                             Table 6 to Paragraph (d)(3)(ii)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                  Population count             2023            2024            2025            2026            2027
--------------------------------------------------------------------------------------------------------------------------------------------------------
Level 1...................................  0-24,999....................            $130            $133            $135            $138            $141
Level 2...................................  25,000-249,000..............             189             192             196             200             204
Level 3...................................  250,000-499,999.............             189             192             196             200             204
Level 4...................................  500,000-999,999.............             189             192             196             200             204
Level 5...................................  1,000,000-1,499,999.........             221             225             229             234             239
Level 6...................................  1,500,000-1,999,999.........             276             282             287             293             299
Level 7...................................  2,000,000-2,499,999.........             331             337             344             351             358
Level 8...................................  2,500,000-2,999,999.........             386             394             402             410             418
Level 9...................................  3,000,000 and above.........             552             563             574             586             597
--------------------------------------------------------------------------------------------------------------------------------------------------------

    (4) For all such compositions in the repertory of GMR, the royalty 
rates shall be as follows:
    (i) For a public broadcasting entity within the scope of this 
section that is broadcasting one or more radio stations as of January 
1, 2023, a single $50 fee for each such station for the entire five-
year license term from 2023 through 2027; and
    (ii) For a public broadcasting entity within the scope of this 
section that begins broadcasting a radio station after January 1, 2023 
but before December 31, 2027, a pro-rated amount equal to $10 
multiplied by the number of full or partial years remaining in the 
2023-2027 license term as of the date on which the radio station begins 
broadcasting (e.g., a public broadcasting entity that begins 
broadcasting a radio station in 2025 shall pay $30 for that station for 
the remainder of the term);
    (5) For the performance of all other such compositions, from 2023 
through 2027, $1.
    (e) Payment of royalty rate-(1) ASCAP, BMI, and SESAC. The public 
broadcasting entity shall pay the required royalty rate to ASCAP, BMI 
and SESAC not later than January 31 of each year. Each annual payment 
shall be accompanied by a signed declaration stating the Population 
Count of the public broadcasting entity and the source for such 
Population Count. An exact copy of such declaration shall be furnished 
to each of ASCAP, BMI and SESAC. Upon prior written notice thereof from 
ASCAP, BMI or SESAC, a public broadcasting entity shall make its books 
and records relating to its Population Count available for inspection. 
In the event that a public broadcasting entity wishes to be deemed a 
Talk Format Station, then such entity shall provide a signed 
declaration stating that Feature Music is performed in less than 20% of 
its annual programming and that it complies with the caps set forth in 
paragraph (b)(4) of this section. An exact copy of such declaration 
shall be furnished to each of ASCAP, BMI and SESAC. Upon prior written 
notice thereof from ASCAP, BMI or SESAC, a public broadcasting entity 
shall make its program schedule or other documentation supporting its 
eligibility as a Talk Format Station available for inspection.
    (2) GMR. For fees due pursuant to paragraph (d)(4)(i) of this 
section, the public broadcasting entity shall pay the required royalty 
rate to GMR not later than January 31, 2023. For fees due pursuant to 
paragraph (d)(4)(ii) of this section, the public broadcasting entity 
shall pay the required royalty rate to GMR not later than 60 days after 
the public broadcasting entity begins to broadcast the radio station 
for which such fee is due. If a fee is paid pursuant to paragraph 
(d)(4)(i) or (ii) of this section for a radio station and that station 
changes ownership during the course of the license term but continues 
to fall within the scope of this section, no additional fee shall be 
due for that station during the 2023-2027 license term.
    (f) Records of use. A public broadcasting entity subject to this 
section shall furnish to ASCAP, BMI, SESAC, and GMR, upon request, a 
music-use report during one week of each calendar year. ASCAP, BMI, 
SESAC, and GMR each shall not in any one calendar year request more 
than 10 stations to furnish such reports.
0
6. In Sec.  381.7, revise paragraphs (a) through (c), and (e) to read 
as follows:


Sec.  381.7  Recording rights, rates, and terms.

    (a) Scope. This section establishes rates and terms for the 
recording of nondramatic performances and displays of musical works, 
other than compositions subject to voluntary license agreements, on and 
for the radio and television programs of public

[[Page 4934]]

broadcasting entities, whether or not in synchronization or timed 
relationship with the visual or aural content, and for the making, 
reproduction, and distribution of copies and phonorecords of public 
broadcasting programs containing such nondramatic performances and 
displays of musical works solely for the purpose of transmission by 
public broadcasting entities, including transmission via the internet 
by PBS and NPR. The rates and terms established in this schedule 
include the making of the reproductions described in 17 U.S.C. 
118(c)(3).
    (b) Royalty rate. (1)(i) For uses described in paragraph (a) of 
this section of a musical work in a PBS-distributed program, the 
royalty fees shall be calculated by multiplying the following per-
composition rates by the number of different compositions in that PBS-
distributed program:

------------------------------------------------------------------------
                                                           2023-2027
------------------------------------------------------------------------
(A) Feature..........................................            $121.07
(B) Concert feature (per minute).....................              36.36
(C) Background.......................................              61.19
(D) Theme:...........................................  .................
(1) Single program or first series program...........              61.19
(2) Other series program.............................              24.84
------------------------------------------------------------------------

    (ii) For such uses other than in a PBS-distributed television 
program, the royalty fee shall be calculated by multiplying the 
following per-composition rates by the number of different compositions 
in that program:

------------------------------------------------------------------------
                                                           2023-2027
------------------------------------------------------------------------
(A) Feature..........................................             $10.01
(B) Concert feature (per minute).....................               2.63
(C) Background.......................................               4.35
(D) Theme:...........................................  .................
(1) Single program or first series program...........               4.35
(2) Other series program.............................               1.73
------------------------------------------------------------------------

    (iii) In the event the work is first recorded other than in a PBS-
distributed program, and such program is subsequently distributed by 
PBS, an additional royalty payment shall be made equal to the 
difference between the rate specified in this section for other than a 
PBS-distributed program and the rate specified in this section for a 
PBS-distributed program.
    (2) For uses licensed herein of a musical work in a NPR program, 
the royalty fees shall be calculated by multiplying the following per-
composition rates by the number of different compositions in any NPR 
program distributed by NPR. For purposes of this schedule ``National 
Public Radio'' programs include all programs produced in whole or in 
part by NPR, or by any NPR station or organization under contract with 
NPR.

------------------------------------------------------------------------
                                                           2023-2027
------------------------------------------------------------------------
(i) Feature..........................................             $13.11
(ii) Concert feature (per minute)....................              19.24
(iii) Background.....................................               6.56
(iv) Theme:..........................................  .................
(A) Single program or first series program...........               6.56
(B) Other series program.............................               2.62
------------------------------------------------------------------------

    (3) For purposes of this schedule, a ``Concert Feature'' shall be 
deemed to be the nondramatic presentation in a program of all or part 
of a symphony, concerto, or other serious work originally written for 
concert performance, or the nondramatic presentation in a program of 
portions of a serious work originally written for opera performance.
    (4) For such uses other than in an NPR-produced radio program:

------------------------------------------------------------------------
                                                           2023-2027
------------------------------------------------------------------------
(i) Feature..........................................               $.83
(ii) Feature (concert) (per half hour)...............               1.72
(iii) Background.....................................                .42
------------------------------------------------------------------------

    (5) The schedule of fees covers use for a period of three years 
following the first use. Succeeding use periods will require the 
following additional payment: Additional one-year period--25 percent of 
the initial three-year fee; second three-year period--50 percent of the 
initial three-year fee; each three-year fee thereafter--25 percent of 
the initial three-year fee; provided that a 100 percent additional 
payment prior to the expiration of the first three-year period will 
cover use during all subsequent use periods without limitation. Such 
succeeding uses which are subsequent to December 31, 2022, shall be 
subject to the royalty rates established in this schedule.
    (6) For each use licensed herein pursuant to paragraphs (b)(1)(i) 
and (b)(2) of this section for transmission via the internet, the 
royalty fees shall include a pro-rata share of $2,000 per calendar 
year, which share shall be determined by calculating the aggregate 
amount of royalty fees earned during that calendar year and dividing 
the sum by the amount of royalty fees earned for each use.
    (c) Payment of royalty rates. The required royalty due under 
paragraphs (b)(1), (b)(2), and (b)(4) of this section shall be paid to 
each known copyright owner not later than July 31 of each calendar year 
for uses during the first six months of that calendar year, and not 
later than January 31 for uses during the last six months of the 
preceding calendar year. The required royalty due under paragraph 
(b)(6) of this section for each calendar year of the statutory license 
term shall be paid to each known copyright owner not later than March 
31 of each following year for PBS- or NPR-distributed uses via the 
internet during the preceding calendar year.
* * * * *
    (e) Filing of use reports with the Copyright Royalty Judges. 
Deposit of cue sheets or summaries. PBS and its stations, NPR, or other 
television public broadcasting entity shall deposit with the Copyright 
Royalty Judges via online filing in eCRB one electronic copy of their 
standard music cue sheets or summaries of same listing the recording 
pursuant to this schedule of the musical works of copyright owners. 
Such cue sheets or summaries shall be deposited not later than July 31 
of each calendar year for recordings during the first six months of the 
calendar year and not later than January 31 of each calendar year for 
recordings during the second six months of the preceding calendar year. 
PBS and NPR shall maintain at their offices copies of all standard 
music cue sheets from which such music use reports are prepared. Such 
music cue sheets shall be furnished to the Copyright Royalty Judges 
upon their request and also shall be available during regular business 
hours at the offices of PBS or NPR for examination by a copyright owner 
who believes a musical composition of such owner has been recorded 
pursuant to this schedule.


Sec.  381.8  [Amended]

0
7. In Sec.  381.8:
0
a. In paragraph (b)(1), add the words ``not otherwise licensed by the 
copyright owner'' at the end of the introductory text;
0
b. In paragraphs (b)(1)(i) and (ii), remove the year ``2013-2017'' and 
add in its place the year ``2023-2027'';
0
c. In paragraph (d)(1) add the words ``, upon request,'' after ``shall 
maintain and''; and
0
d. In paragraph (f)(1) remove the year ``2017'' and add in its place 
the year ``2027''.
0
8. Revise Sec.  381.10 to read as follows:


Sec.  381.10  Cost of living adjustment.

    (a) On or before December 1, 2023, the Copyright Royalty Judges 
shall publish in the Federal Register a notice of the change in the 
cost of living as determined by the Consumer Price

[[Page 4935]]

Index (all consumers, all items) during the period from the most recent 
Index published prior to December 1, 2022, to the most recent Index 
published prior to December 1, 2023. On or before each December 1 
thereafter the Copyright Royalty Judges shall publish a notice of the 
change in the cost of living during the period from the most recent 
index published prior to the previous notice, to the most recent Index 
published prior to December 1, of that year.
    (b) On the same date of the notices published pursuant to paragraph 
(a) of this section, the Copyright Royalty Judges shall publish in the 
Federal Register a revised schedule of the rates for Sec.  381.5(c)(3) 
and (4), the rate to be charged for compositions in the repertory of 
SESAC and GMR, which shall adjust the royalty amounts established in a 
dollar amount according to the greater of:
    (1) The change in the cost of living determined as provided in 
paragraph (a) of this section; or
    (2) One-and-a-half percent (1.5%).
    (3) Such royalty rates shall be fixed at the nearest dollar.
    (c) The adjusted schedule for the rates for Sec.  381.5(c)(3) and 
(4) shall become effective thirty (30) days after publication in the 
Federal Register.

    Dated: January 19, 2022.
David P. Shaw,
Chief Copyright Royalty Judge.
[FR Doc. 2023-01521 Filed 1-25-23; 8:45 am]
BILLING CODE 1410-72-P