[Federal Register: December 15, 1994]


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LIBRARY OF CONGRESS

Copyright Office
[Docket No. 94-3 CARP-90CD]

 
Ascertainment of Controversy for 1990 and Other Cable Royalty 
Funds

AGENCY: Copyright Office, Library of Congress.

ACTION: Notice with request for comments.

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SUMMARY: The Copyright Office directs all claimants to royalty fees 
collected for secondary transmission by cable systems in 1990 to submit 
comments as to whether a controversy exists as to the distribution of 
this fund. The Office also seeks comment as to whether it should 
consolidate the distribution of the 1990 cable royalties with other 
cable royalty funds collected in subsequent years. For those claimants 
intending to participate in the distribution proceeding, the Office 
requests that they file a Notice of Intent to Participate.

DATES: Written comments and Notices of Intent to Participate are due 
January 20, 1995.

ADDRESSES: If sent by mail, an original and five copies of written 
comments and Notice of Intent to Participate should be addressed to: 
Copyright Arbitration Royalty Panel (CARP), P.O. Box 70977, Southwest 
Station, Washington, D.C. 20024. If hand-delivered, an original and 
five copies of written comments and Notice of Intent to Participate 
should be brought to: Office of the Copyright General Counsel, James 
Madison Memorial Building, Room 407, First and Independence Avenue, 
S.E., Washington, D.C. 20540.

FOR FURTHER INFORMATION CONTACT: Marilyn J. Kretsinger, Acting General 
Counsel, Copyright Arbitration Royalty Panel, (CARP), P.O. Box 70977, 
Southwest Station, Washington, D.C. 20024. Telephone (202) 707-8380. 
Telefax: (202) 707-8366.

SUPPLEMENTARY INFORMATION:

I. Background

    Each year, cable systems submit royalties to the U.S. Copyright 
Office for a statutory license to retransmit broadcast signals to their 
subscribers. 17 U.S.C. 111. These royalties are, in turn, distributed 
to the appropriate copyright owners by means of a cable royalty 
distribution proceeding. These proceedings were formerly conducted by 
the Copyright Royalty Tribunal. However, on December 17, 1993, the 
Tribunal was abolished. Royalty distribution proceedings are now 
conducted by ad hoc copyright arbitration royalty panels (CARPs) 
convened and supported by the Library of Congress and the Copyright 
Office. Copyright Royalty Tribunal Reform Act of 1993, P.L. 103-198, 
107 Stat. 2304 (1993).
    At the time Congress was considering the abolition of the Tribunal, 
the Tribunal had already begun a proceeding to distribute the cable 
royalties that were collected in 1990. The 1990 cable royalty 
distribution proceeding began on April 2, 1993. 58 FR 17387 (1993). The 
proceeding did not, however, reach a conclusion. In light of the 
imminent passage of the Copyright Royalty Reform Act of 1993, the 
Tribunal suspended the 1990 cable royalty distribution proceeding. 
Order, dated October 14, 1993.

II. Copyright Office Actions in 1994

    On January 18, 1994, the Copyright Office issued a notice of 
proposed rulemaking to adopt rules to govern the new CARP proceedings. 
Among other things, we considered the question of how to handle 
proceedings that were suspended because of the abolition of the 
Tribunal. The Office determined that matters left pending at the 
Tribunal would not be taken up where they have been left off, but would 
have to be begun anew. 59 FR 2551 (1994). This policy determination was 
confirmed and restated when we issued our interim rules on May 9, 1994. 
59 FR 23954 (1994).
    During the comment period on our May 9 interim rules, the Office 
met with the cable copyright claimants who stated that they preferred 
to restart the 1990 cable distribution proceeding only after final 
rules were adopted and in place. Meeting, held August 11, 1994. Final 
rules governing CARP proceedings were published in the Federal Register 
on December 7, 1994. 59 FR 63025.

 This Notice

    Accordingly, the Library of Congress and the Copyright Office, 
having adopted final CARP rules, are hereby taking the first step to 
start the 1990 cable royalty distribution proceeding.
    The Library of Congress and the Copyright Office direct all 
claimants\1\ to royalty fees collected in 1990 for secondary 
transmissions by cable systems to submit comments as to whether a 
controversy exists as to the distribution of this fund. If any 
controversies exist, the claimant should specifically name the 
claimants with whom he or she has a controversy, and whether it is a 
Phase I or Phase II controversy. If there are both Phase I and Phase II 
controversies, we also solicit comment as to how these proceedings 
should be scheduled, sequentially or concurrently, and whether separate 
panels should be convened if they are to be scheduled concurrently.
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    \1\``All claimants'' includes even those claimants, such as 
National Public Radio, who reached settlements during the suspended 
1990 cable distribution proceeding held by the Tribunal. Since we 
are starting this proceeding anew, we want to know whether those 
settlements apply to the new proceeding as well.
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    The Library and the Office also seek comment from all cable 
claimants, 1990-1993, as to whether we should consolidate the 
distribution of the 1990 cable royalties with other cable royalty funds 
collected in subsequent years. Royalties have been collected during 
1991, 1992, and 1993, and could be made the subject of the same 
proceeding as the 1990 cable royalty proceeding if that would serve the 
public interest. If claimants want to consolidate this proceeding with 
that of subsequent years, we would also need to know the extent of the 
Phase I and Phase II controversies that exist for the subsequent years, 
as well.
    Finally, the Office is requesting claimants who wish to participate 
in the 1990 cable distribution proceeding to file a Notice of Intent to 
Participate. If the Office decides, after receiving comments, to 
consolidate the 1990 cable distribution with one or more subsequent 
years, we will issue at that time a request for Notices of Intent to 
Participate for those subsequent years.
    An original and five copies of the claimants' comments and Notice 
of Intent to Participate should be filed no later than January 20, 
1995, to the address noted above. Claimants should use this time period 
to make diligent efforts at settlement. If a claimant does not report a 
controversy or file a notice of intent to participate, it will be 
presumed that the claimant has settled, and has no controversies with 
the other claimants.

    Dated: December 8, 1994.
Marilyn J. Kretsinger,
Acting General Counsel.

    Approved:
James H. Billington,
The Librarian of Congress.
[FR Doc. 94-30855 Filed 12-14-94; 8:45 am]
BILLING CODE 1410-33-P