[Federal Register: January 9, 2001 (Volume 66, Number 6)]


[Page 1700-1701]



Copyright Office

[Docket No. 2001-1 CARP DSTRA2]


Adjustment of Rates and Terms for the Digital Performance of 

Sound Recordings

AGENCY: Copyright Office, Library of Congress.

ACTION: Notice of negotiation period and request for notification.


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

the 6-month negotiation period for the adjustment of royalty rates and 

terms for the public performance of copyrighted sound recordings by 

preexisting subscription services and preexisting satellite digital 

audio radio services. The Office is also requesting those parties 

participating in the negotiations to so notify the Office.

DATES: The 6-month negotiation period commences on January 9, 2001. 

Notification of participation in the negotiation period is due by 

January 31, 2001.

ADDRESSES: An original and five copies of notification of participation 

in the settlement negotiations may be hand delivered to: Office of the 

General Counsel, Copyright Office, James Madison Memorial Building, 

Room LM-403, First and Independence Avenue, SE., Washington, DC 20559-

6000; or mailed to: Copyright Arbitration Royalty

[[Page 1701]]

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

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, DC 20024. Telephone: 

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

SUPPLEMENTARY INFORMATION: Since 1995, copyright owners of sound 

recordings have enjoyed an exclusive right to perform publicly their 

copyrighted works by means of a digital audio transmission, subject to 

certain limitations. 17 U.S.C. 106(6). Among the initial limitations 

placed on the performance of a sound recording was the creation of a 

statutory license for performances made by nonexempt, noninteractive, 

digital subscription services. 17 U.S.C. 114 (1995).

    After receipt of a petition from the Recording Industry Association 

of America (``RIAA''), the Librarian of Congress conducted a CARP 

proceeding to establish rates and terms for the statutory license. The 

eligible subscription services that participated in that proceeding 

were Digital Cable Radio Associates, Digital Music Express, Inc. and 

Muzak, L.P. The Librarian issued a final determination of rates and 

terms, which was appealed by the RIAA. 63 FR 25394 (May 8, 1998). The 

U.S. Court of Appeals for the District of Columbia Circuit affirmed the 

rates, but remanded the matter of certain payment terms to the Library 

for further proceedings. Recording Industry Ass'n of America v. 

Librarian of Congress, 176 F.3d 528 (D.C. Cir. 1999). The remand has 

yet to be resolved.

    In 1998, as part of the amendments made by the Digital Millennium 

Copyright Act (``DMCA''), the section 114 statutory license was 

expanded, and a new schedule for rate adjustment proceedings was 

established. For subscription services in existence prior to passage of 

the DMCA (defined as ``pre-existing subscription services''), and for 

satellite digital audio radio services in existence prior to passage of 

the DMCA (defined as ``pre-existing satellite digital audio radio 

services''), the Librarian of Congress is required to announce a 6-

month negotiation period in the first week of January 2001 for purposes 

of promoting settlement of the terms and rates of the statutory 

license. 17 U.S.C. 114(f)(1)(C)(i)(II). This notice fulfills that 


Announcement of Negotiation Period

    Pursuant to section 114(f)(1)(C)(i), the Librarian of Congress is 

announcing a 6-month negotiation period for the settlement of rates and 

terms for the statutory license for preexisting subscription services 

and preexisting satellite digital audio radio services. If the 6-month 

negotiation period fails to yield a full settlement, interested parties 

must petition the Librarian for a CARP proceeding during the period 

commencing on July 1, 2001, and ending August 29, 2001. 17 U.S.C. 


Request for Notification

    In order to facilitate productive settlement discussions during the 

negotiation period, and to facilitate complete settlement, see 65 FR 

10564 (February 20, 2000), it is useful to create a list of parties 

that wish to participate in the negotiation period. The list should be 

in a centralized location and available to the public so that 

interested parties may identify each other and begin their settlement 

discussions. Consequently, the Library is requesting that those parties 

wishing to participate in the 6-month negotiation period file 

notification with the Copyright Office by January 31, 2000.

    The list compiled by the Copyright Office is solely for 

informational purposes and is on a voluntary basis. In other words, 

parties that wish to participate in the negotiation period are not 

required to file notification and may file notification with the Office 

at any time after the January 31, 2001, deadline up until the end of 

the negotiation period. The notification is not a Notice of Intent to 

Participate in a CARP proceeding, because, as provided in 17 U.S.C. 

114(f)(1)(B), the Library cannot begin a CARP proceeding until 

petitioned to do so after the end of the negotiation period. If the 

Library receives such a petition, it will call for Notices of Intent to 

Participate at a later date.

    Dated: January 4, 2001.

David O. Carson,

General Counsel.

[FR Doc. 01-581 Filed 1-8-01; 8:45 am]