[Federal Register: May 11, 1999 (Volume 64, Number 90)]


[Page 25374-25375]



Copyright Office

[Docket No. 97-1 CARP SD 92-95]


Distribution of 1992, 1993, 1994, and 1995 Satellite Royalty 


AGENCY: Copyright Office, Library of Congress.

ACTION: Announcement of the schedule for the proceeding.


SUMMARY: The Librarian of Congress is announcing the schedule for the 

180-day arbitration period for the distribution of the 1992-95 

satellite carrier compulsory license royalty fees.

EFFECTIVE DATE: May 11, 1999.

ADDRESSES: All hearings and meetings for the 1992-95 satellite 

distribution proceeding shall take place at the Library of Congress, 

James Madison Memorial Building, Room LM-414, First and Independence 

Avenue, SE., Washington, DC. 20540.

FOR FURTHER INFORMATION CONTACT: David O. Carson, General Counsel, or 

William J. Roberts, Jr., Senior Attorney, PO Box 70977, Southwest 

Station, Washington, DC 20024. Telephone: (202) 707-8380. Telefax: 

(202) 252-3423.



    Section 251.11(b) of 37 CFR provides:

    At the beginning of each proceeding, the CARP shall develop the 

original schedule of the proceeding which shall be published in the 

Federal Register at least seven calendar days in advance of the 

first meeting. Such announcement shall state the times, dates, and 

place of the meetings, the testimony to be heard, whether any of the 

meetings, or any portion of a meeting, is to be closed, and if so, 

which ones, and the name and telephone number of the person to 

contact for further information.

This notice fulfills the requirements of Sec. 251.11(b) for Phase I of 

the proceeding to determine the distribution of satellite carrier 

compulsory license royalty fees for the years 1992-95.

    On January 31, 1997, the Copyright Office published a notice in the 

Federal Register requesting comment as to the existence of Phase I and/

or Phase II controversies concerning the distribution of the 1992, 

1993, 1994, and 1995 satellite royalty fees, and in the event that a 

controversy exists, whether to consolidate the determination of the 

distribution of the 1992-95 royalty fees into a single proceeding, or 

to conduct multiple proceedings. 62 FR 4814 (January 31, 1997). The 

notice also requested that each interested party file a Notice of 

Intent to Participate, indicating the level of participation for each 

year, i.e., Phase I, Phase II, or both, with the Office. In response to 

this notice, the following parties identified the existence of 

controversies for distribution of the 1992-95 funds: James Cannings; 

<SUP>1</SUP> the American Society of Composers, Authors and Publishers 

(ASCAP), Broadcast Music, Inc. (BMI), and SESAC, Inc. (collectively the 

Music Claimants); Program Suppliers; CBS, Inc.; ABC, Inc.; Public 

Television Claimants; Devotional Claimants; Home Shopping Network; 

Multimedia Entertainment, Inc.; National Broadcasting Company, Inc.; 

Joint Sports Claimants; and Broadcaster Claimants. All but one party 

favored consolidating the 1992-95 satellite funds into a single 

distribution proceeding.


    \1\ Mr. Cannings identified only a Phase II controversy.


    On June 4, 1997, the Office issued an Order consolidating the 

determination of the distribution of the 1992-95 satellite royalty fees 

into a single proceeding and announcing the precontroversy discovery 

schedule for a Phase I proceeding. See Order in Docket No. 

97-1 CARP SD 92-95 (June 4, 1997). The June 4, 1997, Order set 

September 8, 1997, as the beginning of the 45-day precontroversy 

discovery period, with the initiation of the arbitration set for 

December 1, 1997. This schedule, however, proved unworkable, so at the 

request of the parties, the Copyright Office rescheduled the start of 

the 45-day precontroversy discovery period. See Order in Docket No. 97-

1 CARP SD 92-95 (August 20, 1997). In fact, the Office reset the 

schedule three times before establishing a schedule which met the needs 

of all the parties. See also Orders in Docket No. 97-1 CARP SD 92-95 

(January 15, 1998, July 20, 1998, and October 15, 1998).

    During this time, the parties continued to negotiate among 

themselves. As a result, all of the Phase I parties, with the exception 

of Joint Sports Claimants and Program Suppliers, settled their Phase I 

claims for 15.5% of the total aggregate amount of the satellite royalty 

fees for the years 1992-1995. See Order in Docket No. 97-1 CARP SD 92-

95 (December 21, 1998).

[[Page 25375]]

Thus, the only parties who will appear before the CARP in the current 

Phase I proceeding are the Joint Sports Claimants and the Program 

Suppliers. The 45-day precontroversy discovery period for these parties 

began on January 8, 1999, and proceeded according to the schedule 

announced in the October 15, 1998, Order. However, the April 5 

initiation date set in that schedule has been rescheduled for May 18, 

1999, in order to accommodate conflicts in both the arbitrators' and 

the parties' schedules. The Office will publish the initiation of the 

arbitration in the Federal Register on May 18, 1999.

Selection of Arbitrators

    In accordance with Sec. 251.6 of the CARP rules, the arbitrators 

have been selected for this proceeding. They are:

The Honorable John W. Cooley (Chairperson)

The Honorable Jeffrey Gulin

The Honorable Curtis E. von Kann.

Schedule for the Proceeding

    On April 20, 1999, the parties to this proceeding met with the 

arbitrators for the purpose of setting a schedule for this proceeding. 

At that meeting, the parties and the arbitrators agreed to the 

following schedule:

Presentation of Direct Cases:

Opening statement: Joint Sports       May 18, 1999.

 Claimants (JSC).

    Testimony for JSC <SUP>2</SUP>:

        Witnesses: (week 1)

            Paul Beeston, Paul        May 18-22, 1999.

             Bortz, James Trautman,

             Gilbert Korta, Kimberly


        Witnesses: (week 2)

            Glen Friedman, Jeffrey    June 1-5, 1999.

             Treeman, Jody Kaveney,

             Scott Shultz, John

             Hartman, Edwin Desser.

Opening Statement: Program Suppliers  June 7, 1999.

    Testimony for Program Suppliers:

        Marsha Kessler..............  June 7, 1999.

        Marsha Kessler, Sandra Pope.  June 9, 1999.

        Linda McLaughlin............  June 14, 1999.

        Alan Wurtzel, Leonard         June 15, 1999.


        Paul Lindstrom..............  June 16, 1999.

        James Von Schilling.........  June 17, 1999.

Additional Hearing Days (if           June 22-25, 1999.


Filing Deadline for Written Rebuttal  June 28, 1999.


Presentation of Rebuttal Cases......  July 26-27, 1999; August 11-20,


Filing Deadline for Proposed          September 13, 1999.

 Findings of Fact and Conclusions of


Filing Deadline for Reply Findings    September 27, 1999.

 of Fact and Conclusions of Law.

Closing Arguments...................  October 14, 1999.

Closing of the 180-day period.......  November 15, 1999.

\2\ JSC did not designate specific dates for the presentation of

  testimony by its witnesses.

    All hearings will begin at 9:30 a.m. and end at 4:30 p.m.

    At this time, the parties have not moved to close any portion of 

the proceeding to the public. Further refinements to the schedule will 

be announced in open meetings and issued as orders to the parties 

participating in the proceeding. All changes will be noted in the 

docket file of the proceeding, as required by the Copyright Office 

regulations governing the administration of CARP proceedings. 37 CFR 


    Dated: May 6, 1999.

David O. Carson,

General Counsel.

[FR Doc. 99-11884 Filed 5-10-99; 9:47 am]