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Verification of Cable and Satellite Statements of Account

Sections 111 and 119 of the Copyright Act allow cable operators and satellite carriers to retransmit programming that broadcast television stations transmit via over-the-air broadcast signals. To use these statutory licenses, cable operators and satellite carriers are required to file statements of account (“SOAs”) and deposit royalty fees with the U.S. Copyright Office on a semi-annual basis.

The Satellite Television Extension and Localism Act of 2010 (“STELA”), Pub. L. No. 111-175, directed the Register of Copyrights to issue a regulation to allow copyright owners to audit the information reported on the statements that cable operators and satellite carriers file with the Office. Section 119(b)(2) of the Act directed the Register to “issue regulations to permit interested parties to verify and audit the statements of account and royalty fees submitted by satellite carriers under this subsection.” 17 U.S.C. 119(b)(2). Similarly, section 111(d)(6) directed the Register to “issue regulations to provide for the confidential verification by copyright owners whose works were embodied in the secondary transmissions of primary transmissions pursuant to [section 111] of the information reported on the semiannual statements of account filed under this subsection for accounting periods beginning on or after January 1, 2010, in order that the auditor designated under subparagraph [111(d)(6)(A)] is able to confirm the correctness of the calculations and royalty payments reported therein.” 17 U.S.C. 111(d)(6).

In response to these directives, the Office has issued a final rule to be set forth in 37 C.F.R. § 201.16. The Federal Register notice describing the rule is available at http://copyright.gov/fedreg/2014/79fr68623.pdf. It is effective as of December 18, 2014.