[Federal Register: August 30, 2002 (Volume 67, Number 169)]

[Notices]               

[Page 55885-55886]

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LIBRARY OF CONGRESS



Copyright Office



[Docket No. 2002-8 CARP CD 2000]

 

Ascertainment of Controversy for the 2000 Cable Royalty Funds



AGENCY: Copyright Office, Library of Congress.



ACTION: Notice with request for comments and notices of intention to 

participate.



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SUMMARY: The Copyright Office of the Library of Congress directs all 

claimants to royalty fees collected for calendar year 2000 under the 

section 111 cable statutory license to submit comments as to whether a 

Phase I or Phase II controversy exists as to the distribution of those 

fees, and a Notice of Intention to Participate in a royalty 

distribution proceeding.



DATES: Comments and Notices of Intention to Participate are due on 

September 30, 2002.



ADDRESSES: If sent by mail, an original and five copies of written 

comments and a Notice of Intention to Participate should be addressed 

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

Southwest Station, Washington, DC 20024. If hand delivered, an original 

and five copies should be brought to the Office of the General Counsel, 

James Madison Memorial Building, Room 403, First and Independence Ave., 

SE., Washington, DC 20540.



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

Tanya M. Sandros, Senior Attorney, Copyright Arbitration Royalty 

Panels, PO Box 70977, Southwest Station, Washington, DC 20024. 

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



SUPPLEMENTARY INFORMATION: Each year cable systems submit royalties to 

the Copyright Office for the retransmission to their subscribers of 

over-the-air broadcast signals. These royalties are, in turn, 

distributed in one of two ways to copyright owners whose works were 

included in a retransmission of an over-the-air broadcast signal and 

who timely filed a claim for royalties with the Copyright Office. The 

copyright owners may either negotiate the terms of a settlement as to 

the division of the royalty funds, or the Librarian of Congress may 

convene a Copyright Arbitration Royalty Panel ("CARP") to determine 

the distribution of the royalty fees that remain in controversy. See 17 

U.S.C. chapter 8.

    During the pendency of any proceeding, the Librarian of Congress 

may distribute any amounts that are not in controversy, provided that 

sufficient funds are withheld to cover reasonable administrative costs 

and to satisfy all claims with respect to which a controversy exists 

under his authority set forth in section 111(d)(4) of the Copyright 

Act, title 17 of the United States Code. See, e.g., Orders, Docket No. 

2000-6 CARP CD 98 (dated October 12, 2000) and Docket No. 99-5 CARP CD 

97 (dated October 18, 1999). However, the Copyright Office must, prior 

to any distribution of the royalty fees, ascertain who the claimants 

are and the extent of any controversy over the distribution of the 

royalty fees.

    The CARP rules provide that:



    In the case of a royalty fee distribution proceeding, the 

Librarian of Congress shall, after the time period for filing 

claims, publish in the Federal Register a notice requesting each 

claimant on the claimant list to negotiate with each other a 

settlement of their differences, and to comment by a date certain as 

to the existence of controversies with respect to the royalty funds 

described in the notice. Such notice shall also establish a date 

certain by which parties wishing to participate in the proceeding 

must file with the Librarian a notice of intention to participate.



37 CFR 251.45(a). The Copyright Office may publish this notice on its 

own initiative, see, e.g., 64 FR 23875 (May 4, 1999); in response to a 

motion from an



[[Page 55886]]



interested party, see, e.g., 65 FR 54077 (September 6, 2000), or in 

response to a petition requesting that the Office declare a controversy 

and initiate a CARP proceeding. In this case, the Office has received a 

motion for a partial distribution of the 2000 cable royalty fees.

    On July 31, 2002, representatives of the Phase I claimant 

categories to which royalties have been allocated in prior cable 

distribution proceedings filed a motion with the Copyright Office for a 

partial distribution of the 2000 cable royalty fund. The Office will 

consider this motion after each interested party has been identified by 

filing the Notice of Intention to Participate requested herein and had 

an opportunity to file responses to the motion.



1. Comments on the Existence of Controversies



    Before commencing a distribution proceeding or making a partial 

distribution, the Librarian of Congress must first ascertain whether a 

controversy exists as to the distribution of the royalty fees and the 

extent of those controversies. 17 U.S.C. 803(d). Therefore, the 

Copyright Office is requesting comment on the existence and extent of 

any controversies, at Phase I and Phase II, as to the distribution of 

the 2000 cable royalty fees.

    In Phase I of a cable royalty distribution, royalties are 

distributed to certain categories of broadcast programming that has 

been retransmitted by cable systems. The categories have traditionally 

been syndicated programming and movies, sports, commercial and 

noncommercial broadcaster-owned programming, religious programming, 

music programming, and Canadian programming. The Office seeks comments 

as to the existence and extent of controversies between these 

categories for royalty distribution.

    In Phase II of a cable royalty distribution, royalties are 

distributed to claimants within a program category. If a claimant 

anticipates a Phase II controversy, the claimant must state each 

program category in which he or she has an interest that has not, by 

the end of the comment period, been satisfied through a settlement 

agreement and the extent of the controversy.

    The Copyright Office must be advised of the existence and extent of 

all Phase I and Phase II controversies by the end of the comment 

period. It will not consider any controversies that come to its 

attention after the close of that period.



2. Notice of Intention To Participate



    Section 251.45(a) of the rules, 37 CFR, requires that a Notice of 

Intention to Participate be filed in order to participate in a CARP 

proceeding, but it does not prescribe the contents of the Notice. 

Recently, in another proceeding, the Library has been forced to address 

the issue of what constitutes a sufficient Notice and to whom it is 

applicable. See 65 FR 54077 (September 6, 2000); see also Orders in 

Docket No. 2000-2 CARP CD 93-97 (June 22, 2000, and August 1, 2000). 

These rulings will result in a future amendment to Sec. 251.45(a) to 

specify the content of a properly filed Notice. In the meantime, the 

Office advises those parties filing Notices of Intention to Participate 

in this proceeding to comply with the following instructions.

    Each claimant that has a dispute over the distribution of the 2000 

cable royalty fees, either at Phase I or Phase II, shall file a Notice 

of Intention to Participate that contains the following: (1) The 

claimant's full name, address, telephone number, and facsimile number 

(if any); (2) identification of whether the Notice covers a Phase I 

proceeding, a Phase II proceeding, or both; and (3) a statement of the 

claimant's intention to fully participate in a CARP proceeding.

    Claimants may, in lieu of individual Notices of Intention to 

Participate, submit joint Notices. In lieu of the requirement that the 

Notice contain the claimant's name, address, telephone number and 

facsimile number, a joint Notice shall provide the full name, address, 

telephone number, and facsimile number (if any) of the person filing 

the Notice and it shall contain a list identifying all the claimants 

that are parties to the joint Notice. In addition, if the joint Notice 

is filed by counsel or a representative of one or more of the claimants 

identified in the joint Notice, the joint Notice shall contain a 

statement from such counsel or representative certifying that, as of 

the date of submission of the joint Notice, such counsel or 

representative has the authority and consent of the claimants to 

represent them in the CARP proceeding.

    Notices of Intention to Participate must be received in the Office 

of the Copyright General Counsel no later than 5 p.m. on September 30, 

2002.



3. Motion of Phase I Claimants for Partial Distribution



    A claimant who is not a party to the motion, but who files a Notice 

of Intention to Participate, may file a response to the motion no later 

than the due date set forth in this notice for comments on the 

existence of controversies and the Notices of Intention to Participate. 

The Motion of Phase I Claimants for Partial Distribution is available 

for inspection and copying in the Office of the General Counsel.



    Dated: August 27, 2002.

David O. Carson,

General Counsel.

[FR Doc. 02-22255 Filed 8-29-02; 8:45 am]

BILLING CODE 1410-33-P