[Federal Register Volume 89, Number 102 (Friday, May 24, 2024)]
[Notices]
[Pages 45925-45926]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-11496]
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LIBRARY OF CONGRESS
Copyright Office
[Docket No. 2024-4]
Notice of Intent To Audit
AGENCY: U.S. Copyright Office, Library of Congress.
ACTION: Public notice.
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[[Page 45926]]
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 April 29, 2024, the Office received a notice of intent to
conduct an audit of the MLC from the Songwriters Guild of America, Inc.
for the period of January 1, 2021, through December 31, 2023. A copy of
the notice will be made available on the Office's website at https://copyright.gov/music-modernization/audits/.
Dated: May 21, 2024.
Suzanne V. Wilson,
General Counsel and Associate Register of Copyrights.
[FR Doc. 2024-11496 Filed 5-23-24; 8:45 am]
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