Late-Filed and Underpaid Royalties, 29071-29073 [E8-11274]
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Federal Register / Vol. 73, No. 98 / Tuesday, May 20, 2008 / Rules and Regulations
(7) Persons who hold a valid ‘‘Vessel
Security Officer’’ endorsement may
serve as vessel or company personnel
with security duties (33 CFR 104.220),
and as all other vessel personnel (33
CFR 104.225), without meeting any
additional requirements.
TITLE 46 CFR—SHIPPING
PART 10—LICENSING OF MARITIME
PERSONNEL
3. The authority citation for part 10
continues to read as follows:
Authority: 14 U.S.C. 633; 31 U.S.C. 9701;
46 U.S.C. 2101, 2103, and 2110; 46 U.S.C.
chapter 71; 46 U.S.C. 7502, 7505, 7701, and
8906; Executive Order 10173; Department of
Homeland Security Delegation No. 0170.1.
Section 10.107 is also issued under the
authority of 44 U.S.C. 3507.
4. In § 10.104, add the definition of
Vessel Security Officer in alphabetical
order to read as follows:
I
*
*
*
*
*
Vessel Security Officer (VSO) means a
person onboard the vessel accountable
to the Master, designated by the
Company as responsible for security of
the vessel, including implementation
and maintenance of the Vessel Security
Plan, and for liaison with the Facility
Security Officer and vessel’s Company
Security Officer.
*
*
*
*
*
I
*
*
*
*
(b) * * *
(10) GMDSS radio operator; and
(11) Vessel Security Officer.
*
*
*
*
*
I 8. In § 15.1101, add paragraph (a)(6) to
read as follows:
General.
(a) * * *
(6) Vessel Security Officer (VSO)
means a person onboard the vessel
accountable to the Master, designated by
the Company as responsible for security
of the vessel, including implementation
and maintenance of the Vessel Security
Plan, and for liaison with the Facility
Security Officer and vessel’s Company
Security Officer.
*
*
*
*
*
I 9. Add § 15.1113 to read as follows:
§ 15.1113
Definitions of terms used in this
Definitions of terms used in this
*
§ 15.1101
I
§ 10.104
part.
§ 15.301
part.
Vessel Security Officer (VSO).
After July 1, 2009, on board seagoing
vessel, all persons performing duties as
VSO must hold a valid endorsement as
Vessel Security Officer.
Dated: May 6, 2008.
Brian M. Salerno,
Rear Admiral, U.S. Coast Guard, Assistant
Commandant for Marine Safety, Security and
Stewardship.
[FR Doc. E8–11225 Filed 5–19–08; 8:45 am]
BILLING CODE 4910–15–P
LIBRARY OF CONGRESS
5. Add § 10.811 to read as follows:
§ 10.811 Requirements to qualify for an
STCW endorsement as vessel security
officer.
Copyright Office
(a) The applicant for an endorsement
as vessel security officer must present
satisfactory documentary evidence in
accordance with the requirements in 33
CFR 104.215.
(b) All applicants for an endorsement
must meet the physical examination
requirements in § 10.205(d)(1)–(2) of
this chapter.
[Docket No. RM 2008–5]
37 CFR Parts 201
PART 15—MANNING REQUIREMENTS
6. The authority citation for part 15
continues to read as follows:
jlentini on PROD1PC65 with RULES
I
Authority: 46 U.S.C. 2101, 2103, 3306,
3703, 8101, 8102, 8104, 8105, 8301, 8304,
8502, 8503, 8701, 8702, 8901, 8902, 8903,
8904, 8905(b), 8906, 9102, and 8103; and
Department of Homeland Security Delegation
No. 0170.1.
7. Amend § 15.301 by adding
paragraph (b)(10) and revising
paragraph (b)(11) to read as follows:
I
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Jkt 214001
Late–Filed and Underpaid Royalties
Copyright Office, Library of
Congress.
ACTION: Final rule.
AGENCY:
SUMMARY: The Copyright Office is
amending its rules governing the
payment of interest on late or underpaid
royalty fees under the Copyright Act to
clarify when interest for late and
underpayments is due in light of the
Copyright Office’s electronic funds
transfer requirement. In addition, the
Copyright Office amends the rules to
add text that was inadvertently deleted
by a previous rulemaking action. The
Copyright Office also makes a technical
correction to its satellite carrier
requirements to recognize changes made
to Section 119 in 2004.
EFFECTIVE DATE: May 20, 2008.
PO 00000
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29071
Ben
Golant, Assistant General Counsel, and
Tanya M. Sandros, General Counsel,
Copyright GC/I&R, P.O. Box 70400,
Washington, DC 20024. Telephone:
(202) 707–8380. Telefax: (202) 707–
8366.
FOR FURTHER INFORMATION CONTACT:
On August
10, 2006, the Copyright Office published
a final rule requiring the submission of
royalty fees to be made by electronic
funds transfer (‘‘EFT’’). 71 FR 45739
(August 10, 2006). The purpose of this
notice is to make technical amendments
to Section 201.17(i) and other similar
rules for satellite carriers and digital
audio recording technologies to clarify
when interest accrues for late and
underpayments in light of the recent
EFT requirement. In addition, we intend
to re–insert regulatory text, originally
contained in Section 201.17(i)(2), that
was incorrectly deleted from Title 37
CFR when the EFT requirements were
adopted.
SUPPLEMENTARY INFORMATION:
I. Electronic Funds Transfer
Requirement
Under the new EFT regulations, 37
CFR 201.17(i), a number of changes
were made regarding the payment of
copyright royalties. The most important
change was that payment could only be
made through an electronic funds
transfer. This change eliminates the
options of payment by certified or
cashier’s check, or money order. Most
payors already use EFTs, and requiring
the use of EFTs substantially enhances
the efficiency of the collection process.
The regulations also require that the
parties submit specific identifying and
linking information as part of the EFT,
and/or as part of a ‘‘remittance advice’’
which accompanies Statement(s) of
Account, and that the ‘‘remittance
advice’’ be faxed or emailed to the
Licensing Division. Failure to submit
the EFT in accordance with the rules
may require the remitter to resubmit the
EFT correctly. Should this occur, the
remitter will be responsible for any
assessed interest charge that accrues as
a result of a late payment or an
underpayment.
The rules now include a waiver
provision for those situations where
there may be circumstances which make
it virtually impossible for a remitter to
use the electronic payment option or
imposes a financial or other hardship.
Requests for a waiver must include a
statement setting forth the reasons why
the waiver should be granted and the
statement must be signed by a duly
authorized representative of the entity
making the payment, certifying that the
E:\FR\FM\20MYR1.SGM
20MYR1
29072
Federal Register / Vol. 73, No. 98 / Tuesday, May 20, 2008 / Rules and Regulations
late–filed SOAs for digital audio
recording devices is comparable to that
for satellite carriers. Section 201.28(l)(1)
states:
information provided is true and
correct.
II. Proposed Amendments
Section 201.17(c)(1) states that:
Statements of Account shall cover
semiannual accounting periods of (i) January
1 through June 30, and (ii) July 1 through
December 31, and shall be deposited in the
Copyright Office, together with the total
royalty fee for such accounting periods . . .
.by not later than the immediately following
August 29, if the Statement of Account
covers the January 1 through June 30
accounting period, and by not later than the
immediately following March 1, if the
Statement of Account covers the July 1
through December 31 accounting period.
Section 201.17(i)(2) (before it was
deleted) stated that:
Royalty fee payments submitted as a result of
late or amended filings shall include interest.
Interest shall begin to accrue beginning on
the first day after the close of the period for
filing statements of account for all
underpayments of royalties for the cable
compulsory license occurring within that
accounting period. The accrual period shall
end on the date appearing on the certified
check, cashier’s check, money order or
electronic payment submitted by a cable
system, provided that such payment is
received by the Copyright Office within five
business days of that date. If the payment is
not received by the Copyright Office within
five business days of its date, then the
accrual period shall end on the date of the
actual receipt by the Copyright Office.
jlentini on PROD1PC65 with RULES
Morever, Section 201.17(i)(2)(iii)
(before it was deleted) stated that
‘‘Interest is not required to be paid on
any royalty underpayment or late
payment from a particular accounting
period if the interest charge is less than
or equal to five dollars ($5.00).’’
It is important to note that the
Copyright Office’s regulations
concerning interest and accrual vis–a–
vis late–filed SOAs for satellite carriers
is different than that for cable operators.
Section 201.11(i)(1) states:
Royalty fee payments submitted as a result of
late or amended filings will include interest.
Interest will begin to accrue beginning on the
first day after the close of the period for filing
statements of account for all underpayments
or late payments of royalties for the satellite
carrier statutory license for secondary
transmissions for private home viewing
occurring within that accounting period. The
accrual period will end on the date appearing
on the certified check, cashier’s check,
money order, or electronic payment
submitted by a satellite carrier, provided that
such payment is received by the Copyright
Office within five business days of that date.
If the payment is not received by the
Copyright Office within five business days of
its date, the accrual period will end on the
date of actual receipt by the Copyright Office.
(Emphasis added)
The Copyright Office’s regulations
regarding interest and accrual vis–a–vis
VerDate Aug<31>2005
16:52 May 19, 2008
Jkt 214001
Royalty payments submitted as a result of
late payments or underpayments shall
include interest, which shall begin to accrue
on the first day after the close of the period
for filing Statements of Account for all late
payments or underpayments of royalties
occurring within that accounting period. The
accrual period for interest shall end on the
date appearing on the certified check,
cashier’s check, money order, or electronic
payment submitted by the manufacturing or
importing party, if the payment is received
by the Copyright Office within five business
days of that date. If the payment is not
received by the Copyright Office within five
business days of its date, the accrual period
shall end on the date of actual receipt by the
Copyright Office. (Emphasis added)
We note that the five–day language,
contained in Section 201.17(i)(2) of the
Copyright Office’s rules (before it was
deleted), does not extend the Statement
of Account filing period deadlines.
However, the appropriate interest
accrual period for late–filed SOAs has
been subject to dispute because the
‘‘five business day’’ language of Section
201.17(i)(2) applies, on its face, to
underpayments, not to late payments. It
has been the Copyright Office’s
Licensing Division’s practice that
interest on late payments begins to
accrue on the first day after the close of
the period for filing statements of
account until the date payment is
received by the Copyright Office. If the
‘‘five business day’’ language applied in
the instance of late payments, which it
does not under the practices of the
Copyright Office, then the amount of
interest due would be less.
Given the facts and circumstances,
and the need for clarity and
administrative consistency, technical
amendments to the existing regulations
are appropriate. We propose to amend
Section 201.17(i) by adding the phrase
‘‘late payments’’ to the existing
regulatory language. In the interest of
consistency, this change would make
the rule largely parallel to Sections
201.11(i) and 201.28(l). As such, all
royalty payments made by EFT must be
made the day they are due. Interest will
begin to accrue the next day for all late–
filed submissions and on royalties that
are underpaid. The accrual period ends
when a full royalty payment is received
by the Copyright Office.
We also propose to modify the ‘‘five
business day’’ rule, currently found in
all three regulations, and apply it only
to those circumstances where a waiver
of the EFT rule is granted by the
Copyright Office. While the Office has
received very few waivers since the EFT
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Frm 00036
Fmt 4700
Sfmt 4700
regulations were implemented, we still
believe that special provisions
concerning royalty payments by check
are appropriate. In cases where a waiver
is granted, the accrual period ends on
the date the mailed payment is
postmarked. However, if the payment is
not received by the Copyright Office
within five business days of its due
date, then the accrual period shall end
on the date of the actual receipt by the
Copyright Office.
Finally, Section 201.11(i) is amended
to recognize that in 2004, Congress
expanded Section 119 to include
secondary transmissions to commercial
establishments. Satellite Home Viewer
Extension and Reauthorization Act of
2004, a part of the Consolidated
Appropriations Act of 2004. See Pub. L.
No. 108–447, 118 Stat. 3394 (2004)
(‘‘Section 107’’).
List of Subjects in 37 CFR Part 201
Copyright.
Proposed Regulation
In consideration of the foregoing, the
Copyright Office is amending part 201
of 37 CFR, chapter II in the manner set
forth below:
I
PART 201–GENERAL PROVISIONS
1. The authority citation for part 201
continues to read as follows:
I
Authority: 17 U.S.C. 702.
2. Revise § 201.11(i)(1) to read as
follows:
I
§ 201.11 Satellite carrier statements of
account covering statutory licenses for
secondary transmissions.
*
*
*
*
*
(i) * * *
(1) Interest. Royalty fee payments
submitted as a result of late or amended
filings will include interest. Interest will
begin to accrue beginning on the first
day after the close of the period for
filing statements of account for all
underpayments or late payments of
royalties for the satellite carrier
statutory license for secondary
transmissions for private home viewing
and viewing in commercial
establishments occurring within that
accounting period. The accrual period
shall end on the date the electronic
payment submitted by a satellite carrier
is received by the Copyright Office. In
cases where a waiver of the electronic
funds transfer requirement is approved
by the Copyright Office, and royalties
payments are either late or underpaid,
the accrual period shall end on the date
the payment is postmarked. If the
payment is not received by the
Copyright Office within five business
E:\FR\FM\20MYR1.SGM
20MYR1
Federal Register / Vol. 73, No. 98 / Tuesday, May 20, 2008 / Rules and Regulations
days of its date, then the accrual period
shall end on the date of the actual
receipt by the Copyright Office.
*
*
*
*
*
I 3. Amend § 201.17 by adding
paragraph (i)(4) to read as follows:
§ 201.17 Statements of account covering
compulsory licenses for secondary
transmissions by cable systems.
*
*
*
*
*
(i) * * *
(4) Royalty fee payments submitted as
a result of late or amended filings shall
include interest. Interest shall begin to
accrue beginning on the first day after
the close of the period for filing
statements of account for all late
payments and underpayments of
royalties for the cable statutory license
occurring within that accounting period.
The accrual period shall end on the date
the electronic payment submitted by a
cable operator is received. The accrual
period shall end on the date the
electronic payment submitted by a
satellite carrier is received by the
Copyright Office. In cases where a
waiver of the electronic funds transfer
requirement is approved by the
Copyright Office, and royalties
payments are either late or underpaid,
the accrual period shall end on the date
the payment is postmarked. If the
payment is not received by the
Copyright Office within five business
days of its date, then the accrual period
shall end on the date of the actual
receipt by the Copyright Office.
*
*
*
*
*
I 4. Revise § 201.28(l))(1) to read as
follows:
§ 201.28 Statements of account for digital
audio recording devices or media.
jlentini on PROD1PC65 with RULES
*
*
*
*
*
(l) * * *
(1) Royalty payments submitted as a
result of late payments or
underpayments shall include interest,
which shall begin to accrue on the first
day after the close of the period for
filing Statements of Account for all late
payments or underpayments of royalties
for the digital audio recording obligation
occurring within that accounting period.
The accrual period shall end on the date
the electronic payment submitted by the
remitter is received. In cases where a
waiver of the electronic funds transfer
requirement is approved by the
Copyright Office, and royalties
payments are either late or underpaid,
the accrual period shall end on the date
the payment is postmarked. If the
payment is not received by the
Copyright Office within five business
days of its date, then the accrual period
VerDate Aug<31>2005
16:52 May 19, 2008
Jkt 214001
shall end on the date of the actual
receipt by the Copyright Office.
*
*
*
*
*
Dated: April 30, 2008.
Marybeth Peters,
Register of Copyrights.
Approved by:
James H. Billington,
The Librarian of Congress.
[FR Doc. E8–11274 Filed 5–19–08; 8:45 am]
BILLING CODE 1410–30–S
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 81
[EPA–R09–OAR–2008–0435; FRL–8568–3]
Designation of Areas for Air Quality
Planning Purposes; California; Ventura
Ozone Nonattainment Area;
Reclassification to Serious
Environmental Protection
Agency (EPA).
ACTION: Final rule.
AGENCY:
SUMMARY: Effective June 15, 2004, EPA
classified the Ventura County ozone
nonattainment area as ‘‘subpart 2/
moderate’’ for the 8-hour ozone
standard with an attainment date of no
later than June 15, 2010. On February
14, 2008, the California Air Resources
Board submitted a request for
reclassification of the Ventura County
ozone nonattainment area from
‘‘moderate’’ to ‘‘serious.’’ Under section
181(b)(3) of the Clean Air Act, EPA is
granting California’s request for
voluntary reclassification of the Ventura
County ozone nonattainment area to
‘‘serious’’ in today’s document.
DATES: Effective Date: This rule is
effective on June 19, 2008.
ADDRESSES: EPA has established docket
number EPA–R09–OAR–2008–0435 for
this action. The index to the docket is
available electronically at https://
www.regulations.gov and in hard copy
at EPA Region IX, 75 Hawthorne Street,
San Francisco, California. While all
documents in the docket are listed in
the index, some information may be
publicly available only at the hard copy
location (e.g., copyrighted material), and
some may not be publicly available in
either location (e.g., confidential
business information). To inspect the
hard copy materials, please schedule an
appointment during normal business
hours with the contact listed in the FOR
FURTHER INFORMATION CONTACT section.
FOR FURTHER INFORMATION CONTACT:
Dave Jesson, Air Planning Office (AIR–
2), U.S. Environmental Protection
PO 00000
Frm 00037
Fmt 4700
Sfmt 4700
29073
Agency, Region IX, (415) 972–3957,
jesson.david@epa.gov.
SUPPLEMENTARY INFORMATION:
Throughout this document, the terms
‘‘we,’’ ‘‘us,’’ and ‘‘our’’ refer to EPA.
I. Reclassification of Ventura County to
Serious Ozone Nonattainment
Effective June 15, 2004, we classified
the Ventura County ozone
nonattainment area under the Clean Air
Act (‘‘Act’’ or CAA) as ‘‘subpart 2/
moderate’’ for the 8-hour ozone national
ambient air quality standard (NAAQS).
See 69 FR 23858, at 23889 (April 30,
2004); and 40 CFR 81.305. Our
classification of Ventura County as a
‘‘moderate’’ ozone nonattainment area
establishes a requirement that the area
attain the 8-hour ozone NAAQS as
expeditiously as practicable, but no later
than six years from designation, i.e.,
June 15, 2010. By letter dated February
14, 2008, the Executive Officer for the
California Air Resources Board (CARB)
submitted a request to reclassify three
California areas designated
nonattainment for the 8-hour ozone
standard. Ventura was one of the three
areas, and for the Ventura County ozone
nonattainment area, CARB has
requested reclassification from
‘‘moderate’’ to ‘‘serious.’’ We are acting
on the request for Ventura in today’s
document. In a separate document, we
will propose a schedule for required
plan submittals for Ventura County
under the new classification.
We will also act on the requests for
the other two areas listed in CARB’s
February 14, 2008 letter, as well as the
reclassification requests previously
received from CARB for the San Joaquin
Valley, South Coast, and Coachella
Valley ozone nonattainment areas, in a
separate document. We are deferring
action on the State’s reclassification
requests for the five other areas to allow
for notification to, and the opportunity
for consultation with, the Indian tribes
located within the five areas. No Indian
tribes are located within Ventura
County. In the separate document, we
will also propose schedules for required
plan submittals under the new
classifications for these areas.
We are reviewing this request as one
made pursuant to section 181(b)(3) of
the Act which provides for ‘‘voluntary
reclassification’’ and states: ‘‘The
Administrator shall grant the request of
any State to reclassify a nonattainment
area in that State in accordance with
table 1 of subsection (a) of this section
to a higher classification. The
Administrator shall publish a notice in
the Federal Register of any such request
and of action by the Administrator
E:\FR\FM\20MYR1.SGM
20MYR1
]]>Agencies
[Federal Register Volume 73, Number 98 (Tuesday, May 20, 2008)]
[Rules and Regulations]
[Pages 29071-29073]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-11274]
=======================================================================
-----------------------------------------------------------------------
LIBRARY OF CONGRESS
Copyright Office
37 CFR Parts 201
[Docket No. RM 2008-5]
Late-Filed and Underpaid Royalties
AGENCY: Copyright Office, Library of Congress.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Copyright Office is amending its rules governing the
payment of interest on late or underpaid royalty fees under the
Copyright Act to clarify when interest for late and underpayments is
due in light of the Copyright Office's electronic funds transfer
requirement. In addition, the Copyright Office amends the rules to add
text that was inadvertently deleted by a previous rulemaking action.
The Copyright Office also makes a technical correction to its satellite
carrier requirements to recognize changes made to Section 119 in 2004.
EFFECTIVE DATE: May 20, 2008.
FOR FURTHER INFORMATION CONTACT: Ben Golant, Assistant General Counsel,
and Tanya M. Sandros, General Counsel, Copyright GC/I&R, P.O. Box
70400, Washington, DC 20024. Telephone: (202) 707-8380. Telefax: (202)
707-8366.
SUPPLEMENTARY INFORMATION: On August 10, 2006, the Copyright Office
published a final rule requiring the submission of royalty fees to be
made by electronic funds transfer (``EFT''). 71 FR 45739 (August 10,
2006). The purpose of this notice is to make technical amendments to
Section 201.17(i) and other similar rules for satellite carriers and
digital audio recording technologies to clarify when interest accrues
for late and underpayments in light of the recent EFT requirement. In
addition, we intend to re-insert regulatory text, originally contained
in Section 201.17(i)(2), that was incorrectly deleted from Title 37 CFR
when the EFT requirements were adopted.
I. Electronic Funds Transfer Requirement
Under the new EFT regulations, 37 CFR 201.17(i), a number of
changes were made regarding the payment of copyright royalties. The
most important change was that payment could only be made through an
electronic funds transfer. This change eliminates the options of
payment by certified or cashier's check, or money order. Most payors
already use EFTs, and requiring the use of EFTs substantially enhances
the efficiency of the collection process. The regulations also require
that the parties submit specific identifying and linking information as
part of the EFT, and/or as part of a ``remittance advice'' which
accompanies Statement(s) of Account, and that the ``remittance advice''
be faxed or emailed to the Licensing Division. Failure to submit the
EFT in accordance with the rules may require the remitter to resubmit
the EFT correctly. Should this occur, the remitter will be responsible
for any assessed interest charge that accrues as a result of a late
payment or an underpayment.
The rules now include a waiver provision for those situations where
there may be circumstances which make it virtually impossible for a
remitter to use the electronic payment option or imposes a financial or
other hardship. Requests for a waiver must include a statement setting
forth the reasons why the waiver should be granted and the statement
must be signed by a duly authorized representative of the entity making
the payment, certifying that the
[[Page 29072]]
information provided is true and correct.
II. Proposed Amendments
Section 201.17(c)(1) states that:
Statements of Account shall cover semiannual accounting periods of
(i) January 1 through June 30, and (ii) July 1 through December 31,
and shall be deposited in the Copyright Office, together with the
total royalty fee for such accounting periods . . . .by not later
than the immediately following August 29, if the Statement of
Account covers the January 1 through June 30 accounting period, and
by not later than the immediately following March 1, if the
Statement of Account covers the July 1 through December 31
accounting period.
Section 201.17(i)(2) (before it was deleted) stated that:
Royalty fee payments submitted as a result of late or amended
filings shall include interest. Interest shall begin to accrue
beginning on the first day after the close of the period for filing
statements of account for all underpayments of royalties for the
cable compulsory license occurring within that accounting period.
The accrual period shall end on the date appearing on the certified
check, cashier's check, money order or electronic payment submitted
by a cable system, provided that such payment is received by the
Copyright Office within five business days of that date. If the
payment is not received by the Copyright Office within five business
days of its date, then the accrual period shall end on the date of
the actual receipt by the Copyright Office.
Morever, Section 201.17(i)(2)(iii) (before it was deleted) stated
that ``Interest is not required to be paid on any royalty underpayment
or late payment from a particular accounting period if the interest
charge is less than or equal to five dollars ($5.00).''
It is important to note that the Copyright Office's regulations
concerning interest and accrual vis-a-vis late-filed SOAs for satellite
carriers is different than that for cable operators. Section
201.11(i)(1) states:
Royalty fee payments submitted as a result of late or amended
filings will include interest. Interest will begin to accrue
beginning on the first day after the close of the period for filing
statements of account for all underpayments or late payments of
royalties for the satellite carrier statutory license for secondary
transmissions for private home viewing occurring within that
accounting period. The accrual period will end on the date appearing
on the certified check, cashier's check, money order, or electronic
payment submitted by a satellite carrier, provided that such payment
is received by the Copyright Office within five business days of
that date. If the payment is not received by the Copyright Office
within five business days of its date, the accrual period will end
on the date of actual receipt by the Copyright Office. (Emphasis
added)
The Copyright Office's regulations regarding interest and accrual
vis-a-vis late-filed SOAs for digital audio recording devices is
comparable to that for satellite carriers. Section 201.28(l)(1) states:
Royalty payments submitted as a result of late payments or
underpayments shall include interest, which shall begin to accrue on
the first day after the close of the period for filing Statements of
Account for all late payments or underpayments of royalties
occurring within that accounting period. The accrual period for
interest shall end on the date appearing on the certified check,
cashier's check, money order, or electronic payment submitted by the
manufacturing or importing party, if the payment is received by the
Copyright Office within five business days of that date. If the
payment is not received by the Copyright Office within five business
days of its date, the accrual period shall end on the date of actual
receipt by the Copyright Office. (Emphasis added)
We note that the five-day language, contained in Section
201.17(i)(2) of the Copyright Office's rules (before it was deleted),
does not extend the Statement of Account filing period deadlines.
However, the appropriate interest accrual period for late-filed SOAs
has been subject to dispute because the ``five business day'' language
of Section 201.17(i)(2) applies, on its face, to underpayments, not to
late payments. It has been the Copyright Office's Licensing Division's
practice that interest on late payments begins to accrue on the first
day after the close of the period for filing statements of account
until the date payment is received by the Copyright Office. If the
``five business day'' language applied in the instance of late
payments, which it does not under the practices of the Copyright
Office, then the amount of interest due would be less.
Given the facts and circumstances, and the need for clarity and
administrative consistency, technical amendments to the existing
regulations are appropriate. We propose to amend Section 201.17(i) by
adding the phrase ``late payments'' to the existing regulatory
language. In the interest of consistency, this change would make the
rule largely parallel to Sections 201.11(i) and 201.28(l). As such, all
royalty payments made by EFT must be made the day they are due.
Interest will begin to accrue the next day for all late-filed
submissions and on royalties that are underpaid. The accrual period
ends when a full royalty payment is received by the Copyright Office.
We also propose to modify the ``five business day'' rule, currently
found in all three regulations, and apply it only to those
circumstances where a waiver of the EFT rule is granted by the
Copyright Office. While the Office has received very few waivers since
the EFT regulations were implemented, we still believe that special
provisions concerning royalty payments by check are appropriate. In
cases where a waiver is granted, the accrual period ends on the date
the mailed payment is postmarked. However, if the payment is not
received by the Copyright Office within five business days of its due
date, then the accrual period shall end on the date of the actual
receipt by the Copyright Office.
Finally, Section 201.11(i) is amended to recognize that in 2004,
Congress expanded Section 119 to include secondary transmissions to
commercial establishments. Satellite Home Viewer Extension and
Reauthorization Act of 2004, a part of the Consolidated Appropriations
Act of 2004. See Pub. L. No. 108-447, 118 Stat. 3394 (2004) (``Section
107'').
List of Subjects in 37 CFR Part 201
Copyright.
Proposed Regulation
0
In consideration of the foregoing, the Copyright Office is amending
part 201 of 37 CFR, chapter II in the manner set forth below:
PART 201-GENERAL PROVISIONS
0
1. The authority citation for part 201 continues to read as follows:
Authority: 17 U.S.C. 702.
0
2. Revise Sec. 201.11(i)(1) to read as follows:
Sec. 201.11 Satellite carrier statements of account covering
statutory licenses for secondary transmissions.
* * * * *
(i) * * *
(1) Interest. Royalty fee payments submitted as a result of late or
amended filings will include interest. Interest will begin to accrue
beginning on the first day after the close of the period for filing
statements of account for all underpayments or late payments of
royalties for the satellite carrier statutory license for secondary
transmissions for private home viewing and viewing in commercial
establishments occurring within that accounting period. The accrual
period shall end on the date the electronic payment submitted by a
satellite carrier is received by the Copyright Office. In cases where a
waiver of the electronic funds transfer requirement is approved by the
Copyright Office, and royalties payments are either late or underpaid,
the accrual period shall end on the date the payment is postmarked. If
the payment is not received by the Copyright Office within five
business
[[Page 29073]]
days of its date, then the accrual period shall end on the date of the
actual receipt by the Copyright Office.
* * * * *
0
3. Amend Sec. 201.17 by adding paragraph (i)(4) to read as follows:
Sec. 201.17 Statements of account covering compulsory licenses for
secondary transmissions by cable systems.
* * * * *
(i) * * *
(4) Royalty fee payments submitted as a result of late or amended
filings shall include interest. Interest shall begin to accrue
beginning on the first day after the close of the period for filing
statements of account for all late payments and underpayments of
royalties for the cable statutory license occurring within that
accounting period. The accrual period shall end on the date the
electronic payment submitted by a cable operator is received. The
accrual period shall end on the date the electronic payment submitted
by a satellite carrier is received by the Copyright Office. In cases
where a waiver of the electronic funds transfer requirement is approved
by the Copyright Office, and royalties payments are either late or
underpaid, the accrual period shall end on the date the payment is
postmarked. If the payment is not received by the Copyright Office
within five business days of its date, then the accrual period shall
end on the date of the actual receipt by the Copyright Office.
* * * * *
0
4. Revise Sec. 201.28(l))(1) to read as follows:
Sec. 201.28 Statements of account for digital audio recording devices
or media.
* * * * *
(l) * * *
(1) Royalty payments submitted as a result of late payments or
underpayments shall include interest, which shall begin to accrue on
the first day after the close of the period for filing Statements of
Account for all late payments or underpayments of royalties for the
digital audio recording obligation occurring within that accounting
period. The accrual period shall end on the date the electronic payment
submitted by the remitter is received. In cases where a waiver of the
electronic funds transfer requirement is approved by the Copyright
Office, and royalties payments are either late or underpaid, the
accrual period shall end on the date the payment is postmarked. If the
payment is not received by the Copyright Office within five business
days of its date, then the accrual period shall end on the date of the
actual receipt by the Copyright Office.
* * * * *
Dated: April 30, 2008.
Marybeth Peters,
Register of Copyrights.
Approved by:
James H. Billington,
The Librarian of Congress.
[FR Doc. E8-11274 Filed 5-19-08; 8:45 am]
BILLING CODE 1410-30-S
