[Federal Register Volume 88, Number 229 (Thursday, November 30, 2023)]
[Rules and Regulations]
[Pages 83508-83509]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-26221]


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LIBRARY OF CONGRESS

Copyright Royalty Board

37 CFR Part 380

[Docket No. 19-CRB-0005-WR (2021-2025) COLA (2024)]


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.

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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: November 30, 2023.
    Applicability dates: These rates are applicable to the period 
January 1, 2024, through December 31, 2024.

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

[[Page 83509]]


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 cost of living adjustment (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 Consumer Price Index for all Urban 
Consumers (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 
Aggregate Tuning Hours (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, 2023, is 307.671.\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 2024.
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    \1\ This CPI-U was announced on November 14, 2023, 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.
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    The 2024 rate for eligible transmissions of sound recordings by 
commercial webcasters is $0.0031 per subscription performance and 
$0.20025 per nonsubscription performance.
    Application of the increase to rates for noncommercial webcasters 
results in a 2024 rate of $0.0025 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:


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

    (a) Royalty fees. For the year 2024, Licensees must pay royalty 
fees for all Eligible Transmissions of sound recordings at the 
following rates:
    (1) Commercial webcasters: $0.0031 per Performance for subscription 
services and $0.0025 per Performance for nonsubscription services.
    (2) Noncommercial webcasters: $1,000 per year for each channel or 
station and $0.0025 per Performance for all digital audio transmissions 
in excess of 159,140 ATH in a month on a channel or station.
* * * * *

    Dated: November 22, 2023.
David P. Shaw,
Chief Copyright Royalty Judge.
[FR Doc. 2023-26221 Filed 11-29-23; 8:45 am]
BILLING CODE 1410-72-P