[Federal Register Volume 88, Number 240 (Friday, December 15, 2023)]
[Notices]
[Pages 86946-86947]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-27554]


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LIBRARY OF CONGRESS

Copyright Office

[Docket No. 2023-7]


Notice of Intent To Audit

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

ACTION: Public notice.

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SUMMARY: The U.S. Copyright Office is announcing receipt of a notice of 
intent to conduct an audit pursuant to the section 115 blanket license.

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

SUPPLEMENTARY INFORMATION: The Orrin G. Hatch-Bob Goodlatte Music 
Modernization Act (the ``MMA'') substantially modified the compulsory 
``mechanical'' license for reproducing and distributing phonorecords of 
nondramatic musical works under 17 U.S.C. 115.\1\ It did so by 
switching from a song-by-song licensing system to a blanket licensing 
regime that became available on January 1, 2021 (the ``license 
availability date''), administered by a mechanical licensing collective 
(the ``MLC'') designated by the Copyright Office (the ``Office'').\2\ 
Digital music providers (``DMPs'') are able to obtain this new 
statutory mechanical blanket license (the ``blanket license'') to make 
digital phonorecord deliveries of nondramatic musical works, including 
in the form of permanent downloads, limited downloads, or interactive 
streams (referred to in the statute as ``covered activity'' where such 
activity qualifies for a blanket license), subject to various 
requirements, including reporting and payment obligations.\3\ The MLC 
is tasked with collecting royalties from DMPs under the blanket license 
and distributing them to musical work copyright owners.\4\
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    \1\ Public Law 115-264, 132 Stat. 3676 (2018).
    \2\ 17 U.S.C. 115(d).
    \3\ Id.
    \4\ Id.
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    In connection with the new blanket license, the MMA also provides 
for certain audit rights. Under the MMA, the MLC may periodically audit 
DMPs operating under the blanket license to verify the accuracy of 
royalty payments made by DMPs to the MLC.\5\ Likewise, musical work 
copyright owners may periodically audit the MLC to verify the accuracy 
of royalty payments made by the MLC to copyright owners.\6\ To commence 
an audit, a notice of intent to conduct an audit must be filed with the 
Office and delivered to the party(ies) being audited.\7\ The Office 
must then cause notice to be published in the Federal Register within 
45 days of receipt.\8\
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    \5\ Id. at 115(d)(4)(D).
    \6\ Id. at 115(d)(3)(L).
    \7\ Id. at 115(d)(3)(L)(i)(IV), (d)(4)(D)(i)(IV).
    \8\ Id. at 115(d)(3)(L)(i)(IV), (d)(4)(D)(i)(IV).
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    On November 9, 2023, the Office received a notice of intent to 
conduct an audit of the MLC from Bridgeport

[[Page 86947]]

Music, Inc. for the period of January 1, 2021, through December 31, 
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2023.

    Dated: December 11, 2023.
Suzanne V. Wilson,
General Counsel and Associate Register of Copyrights.
[FR Doc. 2023-27554 Filed 12-14-23; 8:45 am]
BILLING CODE 1410-30-P