[Federal Register: August 28, 1997 (Volume 62, Number 167)]
[Page 45687]


Copyright Office
[Docket No. 94-3 CARP CD 90-92]

Determination of the Distribution of the 1991 Cable Royalties in 
the Music Claimants Category

AGENCY: Copyright Office, Library of Congress.

ACTION: Initiation of arbitration.


SUMMARY: The Librarian of Congress is announcing initiation of the 180-
day arbitration period for determination of the distribution of the 
1991 cable royalties in the Music Claimants category.

EFFECTIVE DATE: September 3, 1997.

ADDRESSES: All hearings and meetings for this proceeding shall take 
place in the Library of Congress, Copyright Office, 101 Independence 
Avenue, S.E., James Madison Memorial Building, Room 414, Washington, 
D.C. 20559-6000.

FOR FURTHER INFORMATION CONTACT: William Roberts, Senior Attorney, or 
Tanya Sandros, Attorney Advisor, P.O. Box 70977, Southwest Station, 
Washington, D.C. 20024. Telephone (202) 707-8380. Telefax (202) 707-



    This notice fulfills the requirement of 37 C.F.R. 251.72 which 
provides that:

    If the Librarian determines that a controversy exists among 
claimants to either cable, satellite carrier, or digital audio 
recording devices and media royalties, the Librarian shall publish 
in the Federal Register a declaration of controversy along with a 
notice of initiation of an arbitration proceeding. Such notice 
shall, to the extent feasible, describe the nature, general 
structure and schedule of the proceeding.

This notice published today fulfills the requirements of Sec. 251.72 
for the distribution of the 1991 cable royalties in the Music Claimants 
    On February 15, 1996, the Library of Congress published a notice 
requesting interested parties to comment on the existence of Phase II 
controversies for the distribution of the 1990, 1991, and 1992 cable 
royalty funds. 61 FR 6040 (February 15, 1996). The parties who filed 
comments and Notices of Intent to Participate identified two unsettled 
categories that would require resolution before a CARP. The first 
controversy involved the distribution of the 1991 royalty funds between 
James Cannings and Broadcast Music, Inc., the American Society of 
Composers, Authors and Publishers, and SESAC, Inc. (collectively, ``the 
Music Claimants''). The second controversy involved the distribution of 
the 1990-1992 cable royalty funds between the National Association of 
Broadcasters (NAB) and the Public Broadcasting Service (PBS). On June 
3, 1997, however, NAB and PBS notified the Copyright Office that they 
had reached settlement concerning all matters related to their Phase II 
dispute over the distribution of the 1990-1992 royalty funds, thus 
leaving a single dispute for resolution by a CARP.
    Each proceeding includes a 45 day precontroversy discovery period. 
The original schedule for the precontroversy discovery period 
established by order of the Register of Copyrights, see Order in Docket 
No. 94-3 CARP CD 90-92 (February 14, 1997), was vacated and reset at 
the request of the Music Claimants. See Order in Docket No. 94-3 CARP 
CD 90-92 (May 21, 1997).
    The precontroversy discovery phase of the CARP proceeding now being 
complete, the Copyright Office of the Library of Congress is announcing 
the existence of a Phase II controversy as to the distribution of the 
1991 cable compulsory license royalties in the Music Claimants 
category, and is initiating an arbitration proceeding under chapter 8 
of title 17 to resolve the distribution of the funds. The arbitration 
proceeding shall begin on September 3, 1997, and shall continue for a 
period not to exceed 180 days. Consequently, the proceeding shall 
conclude, and the arbitrators shall submit their final report to the 
Librarian of Congress by March 2, 1998, in accordance with Sec. 251.53 
of the rules.
    Section 802(b) of the Copyright Act, 17 U.S.C., also instructs the 
Librarian of Congress to select two arbitrators within 10 days of the 
initiation of the proceeding. Having already completed this task, the 
Librarian is announcing the names of the two arbitrators who have 
agreed to serve on this panel:
    The Honorable John Farmakides and The Honorable Jesse Etelson. The 
third arbitrator, who shall serve as the Chairperson for the panel, 
will be selected in accordance with section 802(b).
    A meeting between the copyright claimants participating in the 
distribution proceeding and the arbitrators shall take place at 2 p.m. 
on Thursday, September 4, 1997, at the above described address to 
discuss the hearing schedule, billing for the services of the 
arbitrators and payment, and all other procedural matters. The meeting 
is open to the public. Further scheduling of the Music Claimants 1991 
cable distribution proceeding is within the discretion of the CARP. The 
Library will publish a schedule of the proceedings, as required by 37 
CFR 251.11(b), when it becomes available.

    Dated: August 25, 1997.
Nanette Petruzzelli,
Acting General Counsel.
[FR Doc. 97-22954 Filed 8-27-97; 8:45 am]