[Federal Register: December 30, 2004 (Volume 69, Number 250)]

[Notices]               

[Page 78482-78483]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr30de04-105]                         



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LIBRARY OF CONGRESS



Copyright Office



[Docket No. 2004-9 CARP SRA]



 

Rate Adjustment for the Satellite Carrier Compulsory License



AGENCY: Copyright Office, Library of Congress.



ACTION: Notice of voluntary negotiation period.



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SUMMARY: The Copyright Office of the Library of Congress is announcing 

the voluntary negotiation period for the purpose of determining the 

royalty fees for analog signals to be paid by satellite carriers under 

the satellite carrier compulsory license.



DATES: The voluntary negotiation period commences on December 30, 2004 

and concludes on January 10, 2005.



ADDRESSES: If hand delivered by a private party, an original and five 

copies of voluntary agreements should be brought to Room LM-401 of the 

James Madison Memorial Building and the envelope should be addressed as 

follows: Office of the General Counsel/CARP, U.S. Copyright Office, 

James Madison Memorial Building, Room LM-401, 101 Independence Avenue, 

SE., Washington, DC 20559-6000 between 8:30 a.m. and 5 p.m. If 

delivered by a commercial courier, an original and five copies of 

voluntary agreements must be delivered to the Congressional Courier 

Acceptance Site located at 2nd and D Streets, NE. between 8:30 a.m. and 

4 p.m. The envelope should be addressed as follows: Office of the 

General Counsel/CARP, Room LM-403, James Madison Memorial Building, 101 

Independence Avenue, SE., Washington, DC. If sent by mail (including 

overnight delivery using U.S. Postal Service Express Mail), an original 

and five copies of voluntary agreements should be addressed to: 

Copyright Arbitration Royalty Panel (CARP), P.O. Box 70977, Southwest 

Station, Washington, DC. 20024. Voluntary agreements may not be 

delivered by means of overnight delivery services such as Federal 

Express, United Parcel Service, etc., due to delays in processing 

receipt of such deliveries.



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

Gina Giuffreda, Attorney Advisor, Copyright Arbitration Royalty Panel 

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

Telephone: (202) 707-8380. Telefax: (202) 252-3423.



SUPPLEMENTARY INFORMATION:



[[Page 78483]]



Background



    The satellite carrier compulsory license establishes a statutory 

copyright licensing scheme for satellite carriers that retransmit 

television broadcast signals to satellite dish owners for their private 

home viewing. 17 U.S.C. 119. Congress created the license in 1988 with 

the passage of the Satellite Home Viewer Act of 1988. Congress 

reauthorized the satellite license for additional five-year periods in 

1994 and 1999, and the license was slated to expire on December 31, 

2004. However, Congress again reauthorized the satellite license for 

another five years with the passage of the Satellite Home Viewer 

Extension and Reauthorization Act of 2004 (``the 2004 Act'') (as part 

of the Consolidated Appropriations Act, 2005), Pub. L. 108-447, which 

was signed into law by the President on December 8, 2004.

    Satellite carriers pay royalties based on a flat, per-subscriber, 

per-month fee. These rates were initially set by Congress in the 

Satellite Home Viewer Act of 1988 and then later adjusted by a three-

person arbitration panel convened by the former Copyright Royalty 

Tribunal. 57 FR 19052 (May 1, 1992). When the license was reauthorized 

in 1994, Congress directed that the rates be adjusted by the Librarian 

of Congress using the system that replaced the Copyright Royalty 

Tribunal, namely, ad hoc Copyright Arbitration Royalty Panels 

(``CARPs'') administered by the Librarian of Congress and the Copyright 

Office. Accordingly, the Librarian adjusted the rates in 1997. 62 FR 

55742 (October 28, 1997). In the Satellite Home Viewer Improvement Act 

of 1999, which reauthorized the license for an additional five years, 

Congress reduced the rates set by the Librarian.

    The 2004 Act adopts the rates as reduced by Congress in 1999 but 

calls for the amendment of those rates to be paid by satellite carriers 

for the secondary transmission of the primary analog transmission of 

network stations and superstations. This notice begins the process 

mandated by the statute.



Voluntary Negotiation Period



    Sections 119(c)(1)(B) of the Copyright Act, 17 U.S.C., provides 

that ``[o]n or before January 2, 2005, the Librarian of Congress shall 

cause to be published in the Federal Register [notice] of the 

initiation of voluntary negotiation proceedings for the purpose of 

determining the royalty fee to be paid by satellite carriers * * * 

under subsection (b)(1)(B).'' This notice initiates the voluntary 

negotiation period.

    The statute provides that ``[w]ithin 10 days after publication in 

the Federal Register of a notice of the initiation of voluntary 

negotiation proceedings, parties who have reached a voluntary agreement 

may request that the royalty fees in that agreement be applied to all 

satellite carriers, distributors, and copyright owners without 

convening an arbitration proceeding.'' 17 U.S.C. 119(c)(1)(D)(ii)(I). 

In accordance with this provision, the voluntary negotiation period 

commences today, December 30, 2004, and concludes January 10, 2005.

    If a voluntary agreement is reached by the end of the negotiation 

period, the parties can request that the Librarian publish the 

agreement for notice and comment in accordance with section 

119(c)(1)(D)(ii)(II) and adopt the rates in the voluntary agreement if 

no objections are received from a party with a significant interest and 

an intention to participate in an arbitration proceeding. 17 U.S.C. 

119(c)(1)(D)(ii)(III). If an objection to the voluntary agreement is 

received or if parties are unable to reach a voluntary agreement, the 

statute dictates that the rates be determined under the current CARP 

system.\1\ Therefore, if a CARP proceeding becomes necessary, the 

Library must apply the rules and regulations of 37 CFR part 251. 

Consequently, should the parties be unable to reach a voluntary 

agreement by the end of the voluntary negotiation period or should a 

party with a significant interest and an intention to participate in an 

arbitration proceeding file an objection to the agreement, the Library 

will publish a subsequent notice calling for the filing of Notices of 

Intent to Participate.

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    \1\ On November 30, 2004, the President signed into law the 

Copyright Royalty and Distribution Act of 2004, Pub. L. 108-419, 

which eliminates the CARP system and replaces it with three 

permanent Copyright Royalty Judges. However, the 2004 Act calls for 

satellite royalty rates to be determined ``under chapter 8 as in 

effect on the day before the date of enactment of the Copyright 

Royalty and Distribution Act of 2004.'' 17 U.S.C. 119(c)(1)(F).



    Dated: December 27, 2004.

David O. Carson,

General Counsel.

[FR Doc. 04-28605 Filed 12-29-04; 8:45 am]



BILLING CODE 1410-33-P