[Federal Register: October 7, 2003 (Volume 68, Number 194)]
[Rules and Regulations]
LIBRARY OF CONGRESS Copyright Office
37 CFR Part 260
[Docket No. 2001-1 CARP DSTRA2]
Determination of Reasonable Rates and Terms for the Digital Performance of Sound Recordings by Preexisting Subscription Services
AGENCY: Copyright Office, Library of Congress.
ACTION: Final rule: technical amendment.
The Copyright Office of the Library of Congress is making a non-substantive
technical amendment to its final regulations adjusting the royalty rates and
terms under the Copyright Act for the statutory license for the use of sound
recordings by preexisting subscription services for the period January 1, 2002,
through December 31, 2007.
Effective Date: August 4, 2003. Applicability Date: The regulations apply to
the license period January 1, 2002 through December 31, 2007.
FOR FURTHER INFORMATION CONTACT:
David O. Carson, General Counsel, or Tanya M. Sandros, Senior Attorney, Copyright
Arbitration Royalty Panel, P.O. Box 70977, Southwest Station, Washington, D.C.
20024. Telephone: (202) 707-8380. Telefax: (202) 252-3423.
Section 106(6) of the Copyright Act, title 17 of [[Page 57815]] the United States
Code, gives copyright owners of sound recordings an exclusive right to perform
their copyrighted works publicly by means of a digital audio transmission. This
right is limited by section 114(d), which allows certain noninteractive digital
audio services to make digital transmissions of a sound recording under a compulsory
license, provided that the services pay a reasonable royalty fee and comply
with the terms of the statutory license. Moreover, these services may make any
necessary ephemeral reproductions to facilitate the digital transmission of
the sound recording under a second license set forth in section 112(e) of the
On June 18, 2003, the Copyright Office published final regulations
effectuating an agreement on the terms that would govern SoundExchange1 when
it functions as the designated agent for the purpose of receiving royalty payments
and statements of account from nonexempt subscription digital transmission services
for transmissions of sound recordings made under a statutory license prior to
January 1, 2002. 68 FR 36469 (June 18, 2003). Pursuant to the agreement, the
Office amended Sec. 260.7 by removing the word "fees" and replacing it with
the word "payments." 68 FR at 36470.
1SoundExchange is an unincorporated division of the Recording Industry Association of America, Inc. that administers statutory licenses.
On July 3, 2003, the Copyright Office published final regulations implementing
an agreement to adjust the royalty rates and terms for the section 114 license
for the use of sound recordings by preexisting subscription services for the
current license period--January 1, 2002, through December 31, 2007. 68 FR 39837
(July 3, 2003). Pursuant to the second agreement, the Office amended Sec. 260.7
once again; however, the amendatory language did not reflect the aforementioned
amendment made on June 18. As a result, the intended amendment to the final
clause of Sec. 260.7 could not be effectuated. The technical amendment published
today rectifies this oversight, correctly identifying the language being amended.
List of Subjects in 37 CFR Part 260
Copyright, Digital audio transmissions, Performance right, Sound recordings.
In consideration of the foregoing, the Copyright Office amends part 260 of 37 CFR as follows:
PART 260--RATES AND TERMS FOR PREEXISTING SUBSCRIPTION SERVICES' DIGITAL TRANSMISSIONS OF SOUND RECORDINGS AND THE MAKING OF EPHEMERAL PHONORECORDS
The authority citation for part 260 continues to read as follows: Sec. 260.7 [Amended]
Section 260.7 is amended by removing "the cost of the administration
of the collection and distribution of the royalty payments" and adding
"any costs deductible under 17 U.S.C. 114(g)(3)" in its place.
17 U.S.C. 114, 801(b)(1).
Dated: September 5, 2003. Marybeth Peters, Register of Copyrights. James H. Billington, The Librarian of Congress.