[Federal Register: May 13, 1996 (Volume 61, Number 93)]
[Proposed Rules]
[Page 22004]
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[[Page 22004]]
LIBRARY OF CONGRESS
Copyright Office
37 CFR Chapter II
[Docket No. RM 96-3]
Notice and Recordkeeping for Subscription Digital Transmissions
AGENCY: Copyright Office, Library of Congress.
ACTION: Notice of proposed rulemaking.
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SUMMARY: The Copyright Office of the Library of Congress is requesting
comments on the requirements by which copyright owners shall receive
reasonable notice of the use of their works from subscription digital
transmission services, and how records of such use shall be kept and
made available to copyright owners. The regulations are required to be
adopted by the Digital Performance Right in Sound Recordings Act of
1995, and are intended to ensure proper payment to copyright owners.
DATES: Comments are due July 12, 1996. Reply comments are due August
12, 1996.
ADDRESSES: An original and fifteen copies of the comments shall be
delivered to: Office of General Counsel, The Copyright Office, LM-407,
The Madison Building, 101 Independence Avenue SE., Washington, D.C., or
mailed to: Marilyn J. Kretsinger, Acting General Counsel, Copyright GC/
I&R, P.O. Box 70400, Southwest Station, Washington, D.C. 20024.
FOR FURTHER INFORMATION CONTACT: Marilyn J. Kretsinger, Acting General
Counsel, or William J. Roberts, Senior Attorney, Copyright GC/I&R, P.O.
Box 70400, Southwest Station, Washington, D.C. 20024. Telephone: (202)
707-8380. Telefax: (202) 707-8366.
SUPPLEMENTARY INFORMATION:
Background
On November 1, 1995, Congress enacted the Digital Performance Right
in Sound Recordings Act of 1995. Pub. L. 104-39, 109 Stat. 337 (1995).
Among other things, it created a new compulsory copyright license that
is paid by nonexempt subscription digital transmission services to the
copyright owners of sound recordings. 17 U.S.C. 114(f). Congress
directed the Librarian of Congress to establish regulations by which
the entities availing themselves of this new license would keep records
of their use, make the records available to the copyright owners, and
give notice to the copyright owners of the use of their works.
The Sec. 114 License for Nonexempt Subscription Digital Transmissions
Services
The Digital Performance Right in Sound Recordings Act gave to
copyright owners of sound recordings an exclusive right to perform
their works by means of a digital audio transmission. Certain digital
transmissions were exempted from the scope of this right, 17 U.S.C.
114(d)(1), while certain subscription digital transmission services
were given the opportunity to qualify for a compulsory license. 17
U.S.C. 114(d)(2).
A nonexempt subscription digital transmission qualifies for a
compulsory license if the transmission is not part of an interactive
service, does not exceed the sound recording performance complement,
does not give an advance program schedule or prior announcements of the
titles to be performed, does not automatically cause the receiving
device to switch automatically from one program channel to another, and
includes, if the copyright owner wants it, encoded information that
identifies the title, the featured artist, and related information. 17
U.S.C. 114(d)(2).
If a service offering subscription digital transmissions qualifies
for the compulsory license, it has the choice of reaching a voluntary
agreement with the owners of the sound recordings it wishes to use, or,
failing that, it may petition the Librarian of Congress to convene a
copyright arbitration royalty panel (CARP) to set the rates and terms
of the compulsory license. 17 U.S.C. 114(f). The terms and rates set by
a CARP will be applicable to all subscription digital transmission
services not subject to a voluntary agreement. However, the above
mentioned requirements for notice and recordkeeping are to be set by
the Librarian, not the CARP. 17 U.S.C. 114(f)(2).
On December 1, 1995, the Copyright Office and the Library of
Congress initiated the six month period for negotiating the rates and
terms for a compulsory license for subscription digital transmission
services. 60 FR 61655 (Dec. 1, 1995). The period will run until June 1,
1996, after which the parties have 60 days to petition the Librarian to
convene a CARP to set the rates and terms for those entities who have
not reached voluntary agreements.
In the meantime, any person who wishes to perform a sound recording
publicly by means of a nonexempt subscription transmission may do so
without infringing the rights of the copyright owner of the sound
recording by complying with the notice requirements set by the
Librarian of Congress and agreeing to pay the royalty fees as they are
determined. 17 U.S.C. 114(f)(5).
This notice requirement, however, is an affirmative duty placed on
the digital transmission subscription services to provide reasonable
notice to the copyright owners of the use of their sound recordings. 17
U.S.C. 114(f)(2). Therefore, it is important for the Copyright Office
and the Library of Congress to begin this rulemaking to establish the
notice and recordkeeping requirements so that persons wishing to abide
by section 114(f)(5) may do so.
Although we do not propose any specific regulatory language,
commentators should consider both the adequacy of the notice to the
copyright owners of the sound recordings and the administrative burdens
placed on the digital transmission services in providing notice and
maintaining records of use.
Dated: May 3, 1996.
Recommended by:
Marybeth Peters,
Register of Copyrights.
Approved by:
James H. Billington,
The Librarian of Congress.
[FR Doc. 96-11926 Filed 5-10-96; 8:45 am]
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