Distribution of 2000-2003 Cable Royalty Funds

Citation84 FR 12295
Record Number2019-06222
Published date01 April 2019
SectionNotices
CourtCopyright Royalty Board,Library Of Congress
Federal Register, Volume 84 Issue 62 (Monday, April 1, 2019)
[Federal Register Volume 84, Number 62 (Monday, April 1, 2019)]
                [Notices]
                [Pages 12295-12296]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2019-06222]
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                LIBRARY OF CONGRESS
                Copyright Royalty Board
                [Docket No. 2008-2 CRB CD 2000-2003 (Phase II) (Remand)]
                Distribution of 2000-2003 Cable Royalty Funds
                AGENCY: Copyright Royalty Board, Library of Congress.
                ACTION: Notice requesting comments.
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                SUMMARY: The Copyright Royalty Judges solicit comments on a motion of
                Independent Producers Group for partial distribution of 2000-2003 cable
                royalty funds.
                DATES: Comments are due on or before May 1, 2019.
                ADDRESSES: You may submit comments and proposals, identified by docket
                number 2008-2 CRB CD 2000-2003 (Phase II) (Remand), by any of the
                following methods:
                 CRB's electronic filing application: Submit comments online in eCRB
                at https://app.crb.gov/.
                 U.S. mail: Copyright Royalty Board, P.O. Box 70977, Washington, DC
                20024-0977; or
                 Overnight service (only USPS Express Mail is acceptable): Copyright
                Royalty Board, P.O. Box 70977, Washington, DC 20024-0977; or
                 Commercial courier: Address package to: Copyright Royalty Board,
                Library of Congress, James Madison Memorial Building, LM-403, 101
                Independence Avenue SE, Washington, DC 20559-
                [[Page 12296]]
                6000. Deliver to: Congressional Courier Acceptance Site, 2nd Street NE
                and D Street NE, Washington, DC; or
                 Hand delivery: Library of Congress, James Madison Memorial
                Building, LM-401, 101 Independence Avenue SE, Washington, DC 20559-
                6000.
                 Instructions: Unless submitting online, commenters must submit an
                original, two paper copies, and an electronic version on a CD. All
                submissions must include a reference to the CRB and this docket number.
                All submissions will be posted without change to eCRB at https://app.crb.gov/ including any personal information provided.
                 Docket: For access to the docket to read submitted documents, go to
                eCRB, the Copyright Royalty Board's electronic filing and case
                management system, at https://app.crb.gov/ and search for docket number
                2008-2 CRB CD 2000-2003 (Phase II) (Remand).
                FOR FURTHER INFORMATION CONTACT: Anita Blaine, Program Specialist, by
                telephone at (202) 707-7658 or email at [email protected].
                SUPPLEMENTARY INFORMATION: Each year cable systems must submit royalty
                payments to the Register of Copyrights as required by the statutory
                license set forth in sec. 111 of the Copyright Act for the
                retransmission to cable subscribers of over-the-air television and
                radio broadcast signals. See 17 U.S.C. 111(d). The Copyright Royalty
                Judges (Judges) oversee distribution of royalties to copyright owners
                whose works were included in a qualifying transmission and who timely
                filed a claim for royalties.
                 Allocation of the royalties collected occurs in one of two ways. In
                the first instance, the Judges may authorize distribution in accordance
                with a negotiated settlement among all claiming parties. 17 U.S.C.
                111(d)(4)(A). If all claimants do not reach agreement with respect to
                the royalties, the Judges must conduct a proceeding to determine the
                distribution of any royalties that remain in controversy. 17 U.S.C.
                111(d)(4)(B). Alternatively, the Judges may, on motion of claimants and
                on notice to all interested parties, authorize a partial distribution
                of royalties, reserving on deposit sufficient funds to resolve
                identified disputes. 17 U.S.C. 111(d)(4)(C), 801(b)(3)(C).
                 On April 21, 2017, Worldwide Subsidy Group LLC dba Independent
                Producers Group (``IPG'') filed with the Judges a motion requesting a
                partial distribution amounting to 21.52% of the cable royalty funds for
                2000-2003 in the Devotional Category pursuant to sec. 801(b)(3)(C) of
                the Copyright Act. 17 U.S.C. 801(b)(3)(C). Motion at 1, 5. IPG arrived
                at 21.52% by multiplying IPG's final distribution of 28.7% of funds in
                the Devotional Category for 1999 by 75%,
                 On April 26, 2017, the Settling Devotional Claimants (``SDC'')
                filed an opposition to IPG's motion arguing, among other things, that
                IPG is not an established claimant (but rather is a ``commercial entity
                representing claimants'') and that ``there are strong reasons to doubt
                that its single final distribution for 1999 will be predictive of
                results in later years.'' SDC Opposition at 1-2. The SDC also
                questioned whether IPG would be willing and able to disgorge funds if
                necessary. Id.
                 On May 2, 2017, IPG replied to the SDC's opposition, contending
                that IPG was already deemed an ``established claimant'' in the program
                suppliers' category with respect to 2004-2009 cable royalties and that
                IPG should not be precluded from receiving a partial distribution
                merely because it is a claimant representative as opposed to an actual
                claimant. IPG Reply at 2-3. IPG noted that ``[t]he vast majority of
                entities receiving advances are `agents' of claimants.'' Id. at 3. IPG
                argues that the SDC seeks to distinguish between IPG and other agents,
                such as the Motion Picture Association of America (``MPAA''), the
                National Association of Broadcasters (``NAB''), and PBS, which have
                received partial distributions in the past, on the ground that MPAA,
                NAB, and PBS are not commercially motivated, unlike IPG. IPG questioned
                the relevancy of the distinction between for-profit organizations and
                not for profit organizations, contending that ``while many of the
                entities receiving advances are ostensibly non-commercial, they
                nonetheless represent (and have received partial distributions on
                behalf of) commercially motivated agents and commercially motivated
                claimants.'' Id. at 4. IPG argued that were there such a rule
                precluding for-profit entities from receiving partial distributions,
                IPG would not have been permitted to receive a partial distribution of
                royalties in the program suppliers' category. Id. at 4-5.\1\ IPG
                dismissed the SDC's concerns regarding IPG's ability or willingness to
                disgorge funds if necessary as ``unsubstantiated and non-sequitur
                `suspicions' of IPG's alleged insolvency and alleged refusal to abide
                by its contractual relationships.'' Id. at 8.
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                 \1\ For its part, the SDC concedes that, based on IPG's final
                award for 2000-2003 in the program suppliers' category, MPAA
                conceded that IPG was entitled to a partial distribution in that
                category for 2004-2009 and that the Judges accepted MPAA's
                concession. Nevertheless, the SDC ``did not and do not make such a
                concession in the Devotional category based on IPG's final award for
                a single year.'' SDC Opposition at n.2.
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                 Prior to ruling on a motion for partial distribution filed under
                Sec. 801(b)(3)(C) of the Copyright Act, the Judges must publish a
                notice in the Federal Register to determine whether any interested
                claimant entitled to receive such royalty fees has a reasonable
                objection to the partial distribution. Accordingly, this Notice seeks
                comments from interested claimants on whether any reasonable objection
                exists that would preclude the distribution of 21.52% of the 2000-2003
                cable royalty funds in the Devotional category to IPG. As the Judges
                have commenced a distribution proceeding concerning 2000-03 cable
                royalties, only claimants that have filed petitions to participate in
                the proceeding (or are included in a petition to participate filed on
                their behalf) are ``interested claimants'' for purposes of this Notice.
                Interested claimants objecting to the partial distribution must advise
                the Judges of the existence and extent of all objections by the end of
                the comment period. The Judges will not consider any objections with
                respect to the partial distribution motion that come to their attention
                after the close of the comment period.
                 Dated: March 27, 2019.
                Jesse M. Feder,
                Chief Copyright Royalty Judge.
                [FR Doc. 2019-06222 Filed 3-29-19; 8:45 am]
                BILLING CODE 1410-72-P
                

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