[Federal Register: September 17, 2002 (Volume 67, Number 180)]
[Proposed Rules]
[Page 58550-58551]
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LIBRARY OF CONGRESS
Copyright Office
37 CFR Part 201
[Docket No. RM 2000-3C]
Public Performance of Sound Recordings: Definition of a Service
AGENCY: Copyright Office, Library of Congress.
ACTION: Request for comment.
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SUMMARY: The Copyright Office of the Library of Congress is providing
an opportunity to all interested persons to file comments to a motion
requesting a stay of its final rule which clarifies that transmissions
of a broadcast signal over a digital communications network are not
exempt from copyright liability under section 114(d)(1)(A) of the
Copyright Act.
DATES: Oppositions are due no later than Tuesday, September 24, 2002.
Replies are due no later than Friday, September 27, 2002.
ADDRESSES: An original and five copies should be hand delivered to:
Office of the Copyright General Counsel, James Madison Memorial
Building, Room LM-403, First and Independence Avenue, SE., Washington,
DC 20540.
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:
[[Page 58551]]
(202) 707-8380. Telefax: (202) 252-3423.
SUPPLEMENTARY INFORMATION: On December 11, 2000, the Copyright Office
issued a final rule to clarify that the transmission of a sound
recording as part of a retransmission of an AM/FM broadcast signal over
a digital communications network, such as the Internet, is subject to
the limited digital performance right provided by section 106(6) of the
Copyright Act, title 17 of the United States Code, and is not exempt
under section 114(d)(1)(A)--the provision that specifically exempts a
``nonsubscription broadcast transmission.'' 65 FR 77292 (December 11,
2000).
Broadcasters have challenged the Copyright Office's final rule and
its interpretation of the relevant statutory provisions. On January 25,
2001, Bonneville International Corp., Clear Channel Communications,
Inc., Cox Radio, Inc., Emmis Communications Corp., Entercom
Communications Corp., Susquehanna Radio Corp. and the National
Association of Broadcasters (hereinafter, ``Broadcasters'') filed suit
in the United States District Court for the Eastern District of
Pennsylvania, seeking a declaratory ruling that the Office's rule was
invalid. On cross summary judgment motions, the district court upheld
the Copyright Office's interpretation of the statutory exemption,
finding the interpretation both reasonable and permissible. Bonneville
Int'l, et al. v. Peters, 153 F. Supp. 2d 763 (E.D. Pa. 2001). An appeal
of the district court's decision is currently pending in the Third
Circuit. See Bonneville, et al. v. Peters, Case No. 01-3720 (3d Cir.).
Under the Office's interpretation of the section 114(d)(1)(A)
exemption, FCC-licensed broadcasters who retransmit their AM/FM
programming over the Internet may publicly perform the sound recordings
that are part of that programming under the section 114 statutory
license provided that the licensee pays the appropriate copyright
royalty fees and abides by the terms of the statutory license. The
rates and terms for use of this license and for the statutory license
for making ephemeral phonorecords for the purpose of facilitating
digital transmissions were recently adopted by the Library of Congress.
See Final Order and Rule, Docket No. 2000-9 CARP DTRA1&2, 67 FR 45239
(July 8, 2002). Under these rules, the first payment of copyright
royalty fees for those operating under the section 112 and section 114
statutory licenses is due October 20, 2002.
Broadcasters, however, would like to stay the application of the
Copyright Office's interpretation of section 114(d)(1)(A). To this end,
Bonneville International Corp., Clear Channel Communications, Inc., Cox
Radio, Inc., Emmis Communications Corp., Entercom Communications Corp.,
Salem Communications Corp., Susquehanna Radio Corp. and the National
Association of Broadcasters (hereinafter, ``Movants'') filed a motion
for stay \1\ with the Copyright Office on September 11, 2002, asking
``the Register of Copyrights to stay the Register's December 11, 2000
final rule, 65 FR 77330 (December 11, 2000), to the extent that its
application would otherwise require thousands of radio stations across
the nation to pay retrospective royalties covering a four year period
on October 20, 2002 and thereafter to make royalty payments on a
monthly basis for broadcasting transmissions that Broadcasters contend
are exempt from any such obligation pursuant to 17 U.S.C.
114(d)(1)(A).''
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\1\ A copy of the motion to stay has been posted to the
Copyright Office website at: http://www.copyright.gov/carp/
motiontostay.pdf. Alternatively, copies of the motion are available
in the Office of the General Counsel for copying.
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Because this rule was promulgated through a notice and comment
proceeding in accordance with the Administrative Procedure Act, title 5
of the United States Code, Chapter 5, Subchapter II and Chapter 7, the
Copyright Office is publishing this notice to announce the receipt of
the motion to stay the December 11, 2000, final rule and to provide any
person with an interest in this proceeding with an opportunity to
comment on the motion.
Oppositions are due in the Copyright Office no later than close of
business on Tuesday, September 24, 2002. Replies are due no later than
Friday, September 27, 2002.
Dated: September 13, 2002.
David O. Carson,
General Counsel.
[FR Doc. 02-23731 Filed 9-16-02; 8:45 am]
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