[Federal Register: January 22, 2002 (Volume 67, Number 14)]

[Notices]               

[Page 2912-2914]

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LIBRARY OF CONGRESS



Copyright Office



[Docket No. 2001-7 CARP SD 2000]



 

Ascertainment of Controversy for the 2000 Satellite Royalty Funds



AGENCY: Copyright Office, Library of Congress.



ACTION: Request for notices of intention to participate.



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SUMMARY: The Copyright Office of the Library of Congress directs all 

claimants to royalty fees collected under the section 119 statutory 

license in 2000 to



[[Page 2913]]



submit comments as to whether a Phase I or a Phase II controversy 

exists as to the distribution of these fees, and a Notice of Intention 

to Participate in a royalty distribution proceeding. Parties who submit 

a Notice of Intention to Participate may also submit comments on the 

Public Broadcasting Service's motion for a partial distribution and the 

scheduling of a CARP proceeding.



DATES: Comments and Notices of Intention to Participate are due no 

later than February 1, 2002.



ADDRESSES: If sent by mail, an original and five copies of written 

comments should be addressed to: Copyright Arbitration Royalty Panel 

(CARP), P.O. Box 70977, Southwest Station, Washington, DC 20024. If 

hand delivered, an original and five copies should be brought to: 

Office of the General Counsel, James Madison Memorial Building, Room 

403, First and Independence Avenue, SE., Washington, DC 20540.



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

William J. Roberts, Jr., Senior Attorney for Compulsory Licenses, 

Copyright Arbitration Royalty Panels, P.O. Box 70977, Southwest 

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

(202) 252-3423.



SUPPLEMENTARY INFORMATION: Each year satellite carriers submit 

royalties to the Copyright Office for the retransmission of over-the-

air broadcast signals to their subscribers. 17 U.S.C. 119. These 

royalties are, in turn, distributed to copyright owners whose works 

were included in a retransmission of an over-the-air broadcast signal 

and for whom a claim for royalties was timely filed with the Copyright 

Office. The copyright owners may either negotiate the terms of a 

settlement as to the division of the royalty fees, or the Librarian of 

Congress may convene a Copyright Arbitration Royalty Panel (``CARP'') 

to determine the distribution of the royalty fees that remain in 

controversy. See 17 U.S.C. chapter 8.

    On October 30, 2001, the Library of Congress published a Notice in 

the Federal Register requesting comments from interested parties as to 

the existence of controversies over the distribution of 2000 satellite 

royalty fees collected under 17 U.S.C. 119; 66 FR 54789 (October 30, 

2001). The Library requested that interested parties submit their 

comments, along with Notices of Intention to Participate in the 2000 

distribution proceeding, by November 29, 2001. In addition, the Library 

sought comment on a petition for royalty distribution filed by the 

Public Broadcasting Service (``PBS''), seeking collection of 2000 and 

2001 royalties submitted under 17 U.S.C. 119(b) for the satellite feed.

    On November 6, 2001, the Motion Picture Association of America, 

Inc. (``MPAA'') filed a motion seeking an extension of the November 29, 

2001, deadline to January 15, 2002. MPAA asserted that it could not 

submit its Notice of Intention to Participate until it had an 

opportunity to examine the list of claimants who had filed for the 2000 

satellite funds. This list was not made available to the public until 

early December. Consequently, in response to the MPAA motion, the 

Office suspended the November 29, 2001, date for filing comments and 

Notices of Intention to Participate and requested comments on MPAA's 

motion. See 66 FR 58761 (November 23, 2001).

    Three parties filed comments in response to this notice: the Public 

Broadcasting Service, the MPAA, and the Joint Sports Claimants 

(``JSC''). In its comment, JSC stated that it was prepared to file its 

Notices of Intention to Participate at any time and provided additional 

comment on the scheduling of the proceeding. Similarly, PBS had no 

apparent objection to the MPAA request but it did ask that the date for 

filing the requisite notices not be extended beyond the January 15, 

2002 date identified by MPAA in its motion and that the PBS motion for 

a distribution of the disputed funds be expedited upon the filing of 

the notices.

    MPAA, for its part, acknowledged that with the release of the 2000 

satellite claimant list it was now able to prepare its Notice of 

Intention to Participate. However, it argued that the Office should 

give the parties a minimum of 30-45 days after the release of the list 

to prepare and file the notices and suggested January 25, 2002, as an 

appropriate date for filing the Notices of Intention. MPAA also offered 

comments on scheduling.\1\

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    \1\ MPAA's and JSC's comments on scheduling were unsolicited and 

beyond the scope of the November 23, 2001 notice and, thus, will not 

be considered at this time.

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    Notices of Intention to Participate. Since the Notices of Intention 

to Participate must list the name of each copyright owner on whose 

behalf the notice is being filed, the Office agrees that interested 

parties should have adequate time to review the official list of 

satellite claimants for 2000 before being required to file a Notice of 

Intention to Participate in a proceeding concerning the distribution of 

the 2000 satellite royalty fees. Moreover, interested parties must have 

adequate notice of the date for filing such notices. Consequently, the 

Office is setting a later date for filing a Notice of Intention to 

Participate in a proceeding to decide the distribution of the 2000 

satellite royalty fees than that requested in the MPAA comment. Notices 

of Intention to Participate in such a proceeding shall be due no later 

than February 1, 2002.

    Section 251.45(a) of title 37 of the Code of Federal Regulations 

requires that parties file a Notice of Intention to Participate in a 

CARP proceeding, but it does not prescribe the contents of the notice. 

The Office, however, has addressed the issue of what constitutes a 

sufficient Notice and to whom it is applicable. See Orders in Docket 

No. 2000-2 CARP CD 93-97 (June 22, 2000, and August 1, 2000); see also 

65 FR 54077 (Sept. 6, 2000). In light of these rulings, the Office 

advises those parties filing Notices of Intention to Participate in 

this proceeding to comply with the following instructions.

    Each claimant that has a dispute over the distribution of the 2000 

satellite royalty fees, either at Phase I or Phase II, shall file a 

Notice of Intention to Participate that contains the following: (1) The 

claimant's full name, address, telephone number, and facsimile number 

(if any); (2) identification of whether the Notice covers a Phase I 

proceeding, a Phase II proceeding, or both; and (3) a statement of the 

claimant's intention to fully participate in a CARP proceeding.

    Claimants may, in lieu of individual Notices of Intention to 

Participate, submit joint Notices. In lieu of the requirement that the 

Notice contain the claimant's name, address, telephone number and 

facsimile number, a joint Notice shall provide the full name, address, 

telephone number, and facsimile number (if any) of the person filing 

the Notice and it shall contain a list identifying all the claimants 

that are parties to the joint Notice. In addition, if the joint Notice 

is filed by counsel or a representative of one or more of the claimants 

identified in the joint Notice, the joint Notice shall contain a 

statement from such counsel or representative certifying that, as of 

the date of submission of the joint Notice, such counsel or 

representative has the authority and consent of the claimants to 

represent them in the CARP proceeding.

    Motion of Public Broadcasting Service for Distribution of PBS 

National Satellite Feed Royalty Funds for Calendar Years 2000 and 2001. 

On June 21, 2001, PBS filed a motion for distribution of PBS national 

satellite feed royalty fees for calendar years 2000 and 2001 and sent a 

copy of the motion to those entities that have participated



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in past satellite distribution proceedings. In an earlier notice, the 

Office determined that, as a matter of law, consideration of a 

distribution of the 2001 satellite royalty fees was premature. See 66 

FR 54789 (October 30, 2001). Consequently, the Office stated that it 

would consider the PBS motion only so far as it concerns the 

distribution of the 2000 satellite royalty fees and only after all 

interested parties have been identified by filing the Notices of 

Intention requested herein and such parties have had an opportunity to 

respond to the motion. Id.

    Parties who file Notices of Intention to Participate in this 

proceeding in accordance with this notice may, at this time, file 

comments on the PBS motion. The Copyright Office has posted the PBS 

motion for distribution of PBS national satellite feed royalty funds 

for 2000-2001 on the Copyright Office website at: (http://www.loc.gov/

copyright/carp/pbsmotion.pdf). The motion is also available for copying 

in the Office of the General Counsel along with any additional 

responsive filings that have been filed in the Office of the General 

Counsel.

    Comments on the Existence of Controversies. Before commencing a 

distribution proceeding or making a partial distribution, the Librarian 

of Congress must first ascertain whether a controversy exists as to the 

distribution of the royalty fees and the extent of those controversies. 

17 U.S.C. 803(d). Therefore, any comments filed in response to the PBS 

motion as to the distribution of the 2000 satellite fees must address 

the existence and extent of any controversies at Phase I and Phase II.

    In Phase I of a satellite royalty distribution, royalties are 

distributed to certain categories of broadcast programming that have 

been retransmitted by satellite carriers. The categories have 

traditionally been syndicated programming and movies, sports, 

commercial and noncommercial broadcaster-owned programming, religious 

programming, and music programming. The Office seeks comments as to 

controversies between these categories for royalty distribution.

    In Phase II of a satellite royalty distribution, royalties are 

distributed to claimants within a program category. If a claimant 

anticipates a Phase II controversy, the claimant must state each 

program category in which he or she has an interest that has not, by 

the end of the comment period, been satisfied through a settlement 

agreement.

    The Copyright Office must be advised of the existence and extent of 

all Phase I and Phase II controversies by the end of the comment 

period. It will not consider any controversies that come to its 

attention after the close of that period.

    Schedule of CARP proceeding. Outstanding controversies concerning 

the distribution of 1996, 1997, 1998, and 1999 satellite royalty fees 

still remain. Before setting a schedule for a CARP proceeding to 

resolve any controversies over the distribution of the 2000 satellite 

royalty fees at issue in the PBS motion, the Office must first decide 

whether to resolve the remaining controversies in the preceding years 

or set these aside and focus on the distribution of the 2000 satellite 

royalty fees as requested by PBS. Therefore, the Office invites 

comments from all interested parties on whether to continue to conduct 

distribution proceedings in a sequential manner as has been the 

practice historically or to set aside the unresolved controversies in 

the earlier years and proceed immediately to the controversies 

surrounding the 2000 satellite royalty fees.



    Dated: January 16, 2002.

David O. Carson,

General Counsel.

[FR Doc. 02-1543 Filed 1-18-02; 8:45 am]

BILLING CODE 1410-33-P