Waiver of Statement of Account Filing Deadline for the 2010/1 Period, 52267-52269 [2010-20956]
Download as PDF
Federal Register / Vol. 75, No. 164 / Wednesday, August 25, 2010 / Rules and Regulations
52267
This correction is effective on
August 25, 2010, and is applicable on
July 30, 2010.
DEPARTMENT OF THE TREASURY
LIBRARY OF CONGRESS
Internal Revenue Service
Copyright Office
FOR FURTHER INFORMATION CONTACT:
Zoran Stojanovic, (202) 622–3980 (not a
toll-free number).
26 CFR Part 1
37 CFR Part 201
[TD 9495]
[Docket No. 2005–5]
SUPPLEMENTARY INFORMATION:
RIN 1545–BC61
Background
Qualified Zone Academy Bonds;
Obligations of States and Political
Subdivisions; Correction
Waiver of Statement of Account Filing
Deadline for the 2010/1 Period
DATES:
The final regulations (TD 9495) that
are the subject of this document are
under section 1397E of the Internal
Revenue Code.
Internal Revenue Service (IRS),
Treasury.
ACTION: Correction to final regulations.
AGENCY:
Need for Correction
This document contains a
correction to final regulations (TD 9495)
that were published in the Federal
Register on Friday, July 30, 2010 (75 FR
44901) providing guidance to State and
local governments that issue qualified
zone academy bonds and to banks,
insurance companies, and other
taxpayers that hold those bonds on the
program requirements for qualified zone
academy bonds.
DATES: This correction is effective on
August 25, 2010, and is applicable on
July 30, 2010.
FOR FURTHER INFORMATION CONTACT:
Zoran Stojanovic, (202) 622–3980 (not a
toll-free number).
SUPPLEMENTARY INFORMATION:
SUMMARY:
As published, the final regulations
(TD 9495) contain an error that may
prove to be misleading and is in need
of clarification.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and
recordkeeping requirements.
Correction of Publication
Accordingly, 26 CFR part 1 is
corrected by making the following
correcting amendment:
■
PART 1—INCOME TAXES
Paragraph 1. The authority citation
for part 1 continues to read in part as
follows:
■
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.1397E–1 is amended
by revising the first sentence of
paragraph (m)(3) to read as follows:
■
§ 1.1397E–1
bonds.
Qualified zone academy
*
*
*
*
(m) * * *
(3) * * * Except to the extent
inconsistent with the successor
statutory provisions for QZABs in
sections 54A and 54E or applicable
public administrative or regulatory
guidance under those provisions and
except as otherwise provided in this
paragraph (m)(3), issuers and taxpayers
may apply these regulations to QZABs
issued under sections 54A and 54E that
are sold after October 3, 2008. * * *
mstockstill on DSKH9S0YB1PROD with RULES
*
LaNita Van Dyke,
Chief, Publications and Regulations Branch,
Legal Processing Division, Associate Chief
Counsel (Procedure and Administration).
[FR Doc. C1–2010–21045 Filed 8–24–10; 8:45 am]
BILLING CODE 4830–01–P
Background
The final regulations (TD 9495) that
are the subject of this document are
under section 1397E of the Internal
Revenue Code.
Need for Correction
As published, the final regulations
(TD 9495) contain an error that may
prove to be misleading and is in need
of clarification.
Correction of Publication
Accordingly, the publication of the
final regulations (TD 9495) which were
the subject of FR Doc. 2010–18678, is
corrected as follows:
■ On page 44903, column 1, in the
preamble, under the paragraph heading
‘‘Effective/Applicability Dates’’, lines 2
and 3 from the last paragraph of the
column, the language ‘‘Act, effective for
QZABs that are sold on or after October
3, 2008, section 1397E’’ is corrected to
read ‘‘Act, effective for QZABs that are
sold after October 3, 2008, section
1397E’’.
■
LaNita Van Dyke,
Chief, Publications and Regulations Branch,
Legal Processing Division, Associate Chief
Counsel (Procedure and Administration).
[FR Doc. C1–2010–21046 Filed 8–24–10; 8:45 am]
BILLING CODE 4830–01–P
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19:18 Aug 24, 2010
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Copyright Office, Library of
Congress.
ACTION: Extension of Cable Statement of
Account Filing Deadline
AGENCY:
The Copyright Office extends
the deadline for the filing of the 2010/
1 cable statements of account to
September 29, 2010. In granting the
extension, the Office waives the filing
requirements under Section 201.17(c)(1)
of its rules. The passage of the Satellite
Television Extension and Localism Act
of 2010 (STELA) and the subsequent
work by the Office to revise the cable
statements of account, in light of
STELA(s amendments to the Copyright
Act, have impaired the timely
availability of the on-line forms cable
operators use to pay their royalty fees.
These circumstances will make it
extremely difficult for many cable
operators to comply with the current
deadline. For these reasons, therefore,
the Office deems the extension
necessary and in the public interest.
EFFECTIVE DATES: August 25, 2010.
FOR FURTHER INFORMATION CONTACT: Ben
Golant, Assistant General Counsel, and
Tanya M. Sandros, Deputy General
Counsel, Copyright GC/I&R, P.O. Box
70400, Washington, DC 20024.
Telephone: (202) 707–8380. Telefax:
(202) 707–8366.
SUPPLEMENTARY INFORMATION: Section
111 of the Copyright Act (‘‘Act’’), title 17
of the United States Code (‘‘Section
111’’), provides cable operators with a
statutory license to retransmit a
performance or display a work
embodied in a primary transmission
made by a television station licensed by
the Federal Communications
Commission (‘‘FCC’’). Cable systems that
retransmit broadcast signals in
accordance with the provisions
governing the statutory license set forth
in Section 111 are required to pay
royalty fees to the Copyright Office
(‘‘Office’’). Payments made under the
cable statutory license are remitted
semi–annually to the Office which
invests the royalties in United States
Treasury securities pending distribution
of these funds to those copyright owners
who are entitled to receive a share of the
fees.
Congress recently passed the Satellite
Television Extension and Localism Act
SUMMARY:
E:\FR\FM\25AUR1.SGM
25AUR1
52268
Federal Register / Vol. 75, No. 164 / Wednesday, August 25, 2010 / Rules and Regulations
mstockstill on DSKH9S0YB1PROD with RULES
of 2010 (‘‘STELA‘‘), Pub. L. No. 111–175
(2010). STELA amended the cable
statutory license found in Section 111 of
the Copyright Act as well as the distant
and local satellite licenses found in
Sections 119 and 122, respectively.1
Among other updates, the new law
revised the rates for the cable
retransmission of distant broadcast
signals and changed the method for
calculating royalty fees. Cable operators
now pay royalties on a ‘‘community–by–
community‘‘ basis (that is, according to
‘‘subscriber groups’’) rather than on a
system–wide basis as had been the case
before STELA amended Section 111(d)
of the Act. In addition, STELA now
requires cable operators to pay for the
retransmission of distant multicast
streams in certain instances. STELA also
broadened the definition of ‘‘local
service area’’ found in Section 111(f) of
the Act to accommodate a digital
television station‘s technical service
area. The President signed STELA on
May 27, 2010, with a retroactive
effective date of February 27, 2010.
Cable operators must pay royalties
under the Section 111 license on a
semi–annual basis using a Statement of
Account (‘‘SOA’’) form2 developed by
the Office.3 Section 111 does not
establish a specific deadline upon
which a cable operator must file its SOA
with the Office. Instead, Congress had
left it to the Office to implement a filing
schedule to fulfill the mandates found
in the statute. See 37 CFR 201.17(c)(1).
Cable operators that file their statement
of accounts late must add interest to
their royalty payment. See 37 CFR
201.17(i)(4).
The SOAs are available in a print
format, a PDF format, and a software
‘‘fill–in’’ format created by Gralin
Associates, Inc.4 The first two forms are
1One of STELA‘s principal purposes was to
reauthorize the satellite carrier distant broadcast
signal license for another five years. Congress also
amended the licenses to take into account the
recent digital broadcast television transition and the
ability of digital television stations to split their
signal into several sub–channels (i.e.,
‘‘multicasting’’).
2There are two types of Statement of Account
forms. The Form SA1–2 is for smaller cable
operators (cable television systems whose
semiannual gross receipts are less than $527,600).
The Form SA3 is for larger cable operators (cable
television systems whose semiannual gross receipts
are $527,600 or more).
3The Office receives about 4,800 statement of
account forms from cable operators each accounting
period.
4Gralin is a specialty software company,
unaffiliated with the government, that custom
designs ‘‘filler’’ forms for cable operators and other
businesses. Gralin touts the following benefits of
using its SOA software: (1) generates a single
database containing information for all cable
system‘s Statement of Account information; (2)
allows editing of data for subsequent filings; (3)
VerDate Mar<15>2010
17:51 Aug 24, 2010
Jkt 220001
freely available from the Office either by
mail or by accessing them via the web
at copyright.gov. Cable operators have to
pay Gralin for the right to use its
specialized software. It is estimated that
about 40%–45% of all cable statement
of account forms filed with the Office
have been prepared using the Gralin
form since the software was first made
available in1985.
The Office recently revised the cable
statement of account forms in light of
the recent STELA amendments to
Section 111. The new SA3 form now
reflects the royalty rate adjustments
found in STELA and includes, inter
alia, modifications to accommodate the
reporting of subscriber groups and
multiple channel line–ups and the
retransmission of multicast streams. The
paper and PDF versions of the form
have been available to cable operators
since the second week in July. However,
the Gralin SOA ‘‘fill–in’’ form, which is
usually released at or about the same
time as the paper version in years past,
was not made publicly available until
August 6, 2010. This form was delayed
because it had to undergo performance
tests over a period spanning several
days. As such, cable operators who have
relied on the Gralin form have been
unable to access it or use it until very
recently.
NCTA request. On August 12, 2010,
the National Cable and
Telecommunications Association
(‘‘NCTA’’) filed a letter with the Office
seeking an extension, for 30 days, of the
filing deadline for cable copyright
Statements of Account covering the first
accounting period of 2010.5
NCTA explains that Section 111(d)(2)
of the Act requires cable operators to file
semi–annual Statements of Account. It
then states that Section 201.17(c)(1) of
the Office‘s regulations provide that
those filings ‘‘shall be deposited in the
Copyright Office, together with the total
royalty fee for such accounting periods
as prescribed by Section 111(d)(1) (B),
(C), or (D) of title 17, by not later than
the immediately following August 29, if
the SOA covers the January 1 through
June 30 accounting period....’’ It also
notes that Section 201.17(i)(4) of the
Office‘s regulations state that royalty fee
payments ‘‘submitted as a result of late
performs the necessary royalty fee calculations for
short and long forms; (4) available for use on an
unlimited number of computers in a single location;
(5) database may be located on a server accessible
by all system users at a single location; and (6)
prints the cable system‘s Statement of Account on
images of the Copyright Office prescribed forms.
See https://www.gralin.net (Last accessed on August
13, 2010).
5Letter from Diane Burstein, Deputy General
Counsel, NCTA, to Marybeth Peters, Register of
Copyrights, dated August 12, 2010.
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Frm 00056
Fmt 4700
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or amended filings’’ must include
interest. NCTA requests that the Office
issue a waiver so that SOAs currently
due August 30, 2010, instead would be
due September 29, 2010. NCTA adds
that pursuant to its waiver request, SOA
filings made by that date would be
considered timely and no interest would
be assessed, but that SOA filings made
after September 29, 2010, would be
assessed interest from September 30,
2010, until the filing date.
NCTA comments that this one–time
waiver is warranted in light of the
changes to the Statement of Account
forms and associated calculations
resulting from Congress’s adoption of
STELA leaving little time for making the
necessary changes to the SOA forms that
must be used for the first accounting
period of 2010. It adds that many cable
operators that file SOAs for multiple
cable systems use commercial software
to facilitate those filings. It remarks that
this software was not approved by the
Office for use until August 6, 2010.
According to NCTA, even after the
software‘s release, cable operators using
the software have discovered problems
that have delayed their ability to input
necessary data.6
NCTA asserts that granting the waiver
will be in the public interest. It states
that additional time will help operators
accurately complete their SOA filings,
thus reducing the need to file
supplemental or amended SOAs. It adds
that providing sufficient time so
operators can make that single filing
will also alleviate burdens on the Office.
NCTA asserts that it is authorized to
represent that Program Suppliers, Joint
Sports Claimants, Commercial
Television Claimants, Public Television
Claimants, Music Claimants, Devotional
Claimants, National Public Radio and
Canadian Claimants (collectively, the
‘‘Phase I Claimants’’) do not oppose the
granting by the Copyright Office of this
one–time waiver.7
Discussion. We grant NCTA’s request
to waive the filing requirement under
Section 201.17(c)(1) of the Office’s rules
and extend the filing deadline to
Septemeber 29, 2010. We recognize that
the passage of STELA in the late Spring
of this year, and the subsequent work by
the Office to revise the cable statements
of account, have impaired the timely
availability of the forms cable operators
use to pay their royalty fees, especially
the revised Gralin form. While we
recognize that the paper and PDF
versions of the SOA have been available
since July, many large and small cable
6Id. It appears that NCTA is referring to Gralin
without stating so directly.
7Id.
E:\FR\FM\25AUR1.SGM
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mstockstill on DSKH9S0YB1PROD with RULES
Federal Register / Vol. 75, No. 164 / Wednesday, August 25, 2010 / Rules and Regulations
operators have continued to rely on the
Gralin form to fulfill their SOA
reporting and filing requirement under
Section 111. Given that the Gralin form
had been made available well in
advance of the first day of the 60–day
filing period in years past, operators had
reasonably expected that it would be
ready to use at or about the same time
this year. However, through no fault of
their own, the cable operators relying on
Gralin did not have access to the revised
Gralin form until August 6 this year,
reducing to about three weeks the time
they would have had to process and file
their forms in the absence of a waiver.
We recognize that complying with the
existing deadline would be an arduous,
and perhaps insurmountable task, for
many cable operators particularly those
who would have to file hundreds of
forms during these last three weeks.
Further, as NCTA indicates, there are
still minor problems with the Gralin
software that have been discovered after
its official release on August 6th. Cable
operators should not be held
accountable for matters beyond their
control. The grant of the requested
waiver will permit Gralin an additional
amount of time to fix the problems with
its software so that the SOA filings will
be both accurate and complete.8
We also agree with NCTA when it
states that additional time will help
operators accurately complete their SOA
filings, thus reducing the need to file
supplemental or amended SOAs. It is
evident that providing sufficient time so
operators can make that single filing
will alleviate burdens on the cable
industry as well as the Copyright Office
and produce more accurate filings. In
this context, a waiver will serve the
interest of the public because it will
reduce unnecessary paperwork and
further the efficient administration and
processing of the incoming SOAs.
NCTA has also indicated that
copyright owner groups would not
oppose a thirty day extension of the
filing deadline, and the Office has
received confirmation from
representatives of the copyright owner
groups that this is the case. On this
point, we note that the Office is waiving
a procedural deadline and not a
substantive royalty requirement. Cable
operators will still be paying the
royalties that are due under the Section
111 framework, albeit under a modified
timeline. Thus, in light of the problems
associated with providing forms and the
lack of any opposition from those who
8Gralin has reported that the glitches in its
software have led, in limited instances, to
difficulties in reporting certain data points and
printing of the SA3 form. The Office is currently
working with Gralin to resolve these glitches.
VerDate Mar<15>2010
19:18 Aug 24, 2010
Jkt 220001
have a direct stake in the filing of the
statements of account and the timely
receipt of royalty payments, the Office
perceives no reason to deny the request.
Finally, we note that waivers are
rarely granted by the Office. However,
the action taken today is necessary
because of unique, extenuating
circumstances.9
We hereby waive Section 201.17(c)(1)
and extend the date for filing cable
statements of account to September 29,
2010. Accordingly, interest will be
assessed pursuant to Section
201.17(i)(4) for late payments made after
September 29, 2010.
Dated: August 18,2010
Marybeth Peters,
Register of Copyrights,
U.S. Copyright Office.
[FR Doc. 2010–20956 Filed 8–24–10; 8:45 am]
BILLING CODE 1410–30–S
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 180
[EPA–HQ–OPP–2010–0429; FRL–8841–2]
Acetic Acid Ethenyl Ester, Polymer
With Oxirane; Tolerance Exemption
Environmental Protection
Agency (EPA).
ACTION: Final rule.
AGENCY:
This regulation establishes an
exemption from the requirement of a
tolerance for residues of acetic acid
ethenyl ester, polymer with oxirane;
when used as an inert ingredient in a
pesticide chemical formulation under
40 CFR 180.960. BASF Corporation
submitted a petition to EPA under the
Federal Food, Drug, and Cosmetic Act
(FFDCA), requesting an exemption from
the requirement of a tolerance. This
regulation eliminates the need to
establish a maximum permissible level
for residues of acetic acid ethenyl ester,
polymer with oxirane on food or feed
commodities.
DATES: This regulation is effective
August 25, 2010. Objections and
requests for hearings must be received
on or before October 25, 2010, and must
be filed in accordance with the
instructions provided in 40 CFR part
178 (see also Unit I.C. of the
SUPPLEMENTARY INFORMATION).
SUMMARY:
9See Filing of Claims for DART Royalty Funds, 68
FR 74481 (Dec. 24, 2003), citing Northeast Cellular
Telephone Company v. FCC, 897 F.2d 1164, 1166
(D.C. Cir. 1990) (holding that a waiver of an
agency‘s rules is ‘‘appropriate only if special
circumstances warrant a deviation from the general
rule and such deviation will serve the public
interest.’’).
PO 00000
Frm 00057
Fmt 4700
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52269
EPA has established a
docket for this action under docket
identification (ID) number EPA–HQ–
OPP–2010–0429. All documents in the
docket are listed in the docket index
available at https://www.regulations.gov.
Although listed in the index, some
information is not publicly available,
e.g., Confidential Business Information
(CBI) or other information whose
disclosure is restricted by statute.
Certain other material, such as
copyrighted material, is not placed on
the Internet and will be publicly
available only in hard copy form.
Publicly available docket materials are
available in the electronic docket at
https://www.regulations.gov, or, if only
available in hard copy, at the OPP
Regulatory Public Docket in Rm. S–
4400, One Potomac Yard (South Bldg.),
2777 S. Crystal Dr., Arlington, VA. The
Docket Facility is open from 8:30 a.m.
to 4 p.m., Monday through Friday,
excluding legal holidays. The Docket
Facility telephone number is (703) 305–
5805.
FOR FURTHER INFORMATION CONTACT:
Deirdre Sunderland, Registration
Division (7505P), Office of Pesticide
Programs, Environmental Protection
Agency, 1200 Pennsylvania Ave., NW.,
Washington, DC 20460–0001; telephone
number: (703) 603–0851; e-mail address:
sunderland.deirdre@epa.gov.
SUPPLEMENTARY INFORMATION:
ADDRESSES:
I. General Information
A. Does this Action Apply to Me?
You may be potentially affected by
this action if you are an agricultural
producer, food manufacturer, or
pesticide manufacturer. Potentially
affected entities may include, but are
not limited to:
• Crop production (NAICS code 111).
• Animal production (NAICS code
112).
• Food manufacturing (NAICS code
311).
• Pesticide manufacturing (NAICS
code 32532).
This listing is not intended to be
exhaustive, but rather provides a guide
for readers regarding entities likely to be
affected by this action. Other types of
entities not listed in this unit could also
be affected. The North American
Industrial Classification System
(NAICS) codes have been provided to
assist you and others in determining
whether this action might apply to
certain entities. If you have any
questions regarding the applicability of
this action to a particular entity, consult
the person listed under FOR FURTHER
INFORMATION CONTACT.
E:\FR\FM\25AUR1.SGM
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Agencies
[Federal Register Volume 75, Number 164 (Wednesday, August 25, 2010)]
[Rules and Regulations]
[Pages 52267-52269]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-20956]
=======================================================================
-----------------------------------------------------------------------
LIBRARY OF CONGRESS
Copyright Office
37 CFR Part 201
[Docket No. 2005-5]
Waiver of Statement of Account Filing Deadline for the 2010/1
Period
AGENCY: Copyright Office, Library of Congress.
ACTION: Extension of Cable Statement of Account Filing Deadline
-----------------------------------------------------------------------
SUMMARY: The Copyright Office extends the deadline for the filing of
the 2010/1 cable statements of account to September 29, 2010. In
granting the extension, the Office waives the filing requirements under
Section 201.17(c)(1) of its rules. The passage of the Satellite
Television Extension and Localism Act of 2010 (STELA) and the
subsequent work by the Office to revise the cable statements of
account, in light of STELA(s amendments to the Copyright Act, have
impaired the timely availability of the on-line forms cable operators
use to pay their royalty fees. These circumstances will make it
extremely difficult for many cable operators to comply with the current
deadline. For these reasons, therefore, the Office deems the extension
necessary and in the public interest.
EFFECTIVE DATES: August 25, 2010.
FOR FURTHER INFORMATION CONTACT: Ben Golant, Assistant General Counsel,
and Tanya M. Sandros, Deputy General Counsel, Copyright GC/I&R, P.O.
Box 70400, Washington, DC 20024. Telephone: (202) 707-8380. Telefax:
(202) 707-8366.
SUPPLEMENTARY INFORMATION: Section 111 of the Copyright Act (``Act''),
title 17 of the United States Code (``Section 111''), provides cable
operators with a statutory license to retransmit a performance or
display a work embodied in a primary transmission made by a television
station licensed by the Federal Communications Commission (``FCC'').
Cable systems that retransmit broadcast signals in accordance with the
provisions governing the statutory license set forth in Section 111 are
required to pay royalty fees to the Copyright Office (``Office'').
Payments made under the cable statutory license are remitted semi-
annually to the Office which invests the royalties in United States
Treasury securities pending distribution of these funds to those
copyright owners who are entitled to receive a share of the fees.
Congress recently passed the Satellite Television Extension and
Localism Act
[[Page 52268]]
of 2010 (``STELA``), Pub. L. No. 111-175 (2010). STELA amended the
cable statutory license found in Section 111 of the Copyright Act as
well as the distant and local satellite licenses found in Sections 119
and 122, respectively.\1\ Among other updates, the new law revised the
rates for the cable retransmission of distant broadcast signals and
changed the method for calculating royalty fees. Cable operators now
pay royalties on a ``community-by-community`` basis (that is, according
to ``subscriber groups'') rather than on a system-wide basis as had
been the case before STELA amended Section 111(d) of the Act. In
addition, STELA now requires cable operators to pay for the
retransmission of distant multicast streams in certain instances. STELA
also broadened the definition of ``local service area'' found in
Section 111(f) of the Act to accommodate a digital television station`s
technical service area. The President signed STELA on May 27, 2010,
with a retroactive effective date of February 27, 2010.
---------------------------------------------------------------------------
\1\One of STELA`s principal purposes was to reauthorize the
satellite carrier distant broadcast signal license for another five
years. Congress also amended the licenses to take into account the
recent digital broadcast television transition and the ability of
digital television stations to split their signal into several sub-
channels (i.e., ``multicasting'').
---------------------------------------------------------------------------
Cable operators must pay royalties under the Section 111 license on
a semi-annual basis using a Statement of Account (``SOA'') form\2\
developed by the Office.\3\ Section 111 does not establish a specific
deadline upon which a cable operator must file its SOA with the Office.
Instead, Congress had left it to the Office to implement a filing
schedule to fulfill the mandates found in the statute. See 37 CFR
201.17(c)(1). Cable operators that file their statement of accounts
late must add interest to their royalty payment. See 37 CFR
201.17(i)(4).
---------------------------------------------------------------------------
\2\There are two types of Statement of Account forms. The Form
SA1-2 is for smaller cable operators (cable television systems whose
semiannual gross receipts are less than $527,600). The Form SA3 is
for larger cable operators (cable television systems whose
semiannual gross receipts are $527,600 or more).
\3\The Office receives about 4,800 statement of account forms
from cable operators each accounting period.
---------------------------------------------------------------------------
The SOAs are available in a print format, a PDF format, and a
software ``fill-in'' format created by Gralin Associates, Inc.\4\ The
first two forms are freely available from the Office either by mail or
by accessing them via the web at copyright.gov. Cable operators have to
pay Gralin for the right to use its specialized software. It is
estimated that about 40%-45% of all cable statement of account forms
filed with the Office have been prepared using the Gralin form since
the software was first made available in1985.
---------------------------------------------------------------------------
\4\Gralin is a specialty software company, unaffiliated with the
government, that custom designs ``filler'' forms for cable operators
and other businesses. Gralin touts the following benefits of using
its SOA software: (1) generates a single database containing
information for all cable system`s Statement of Account information;
(2) allows editing of data for subsequent filings; (3) performs the
necessary royalty fee calculations for short and long forms; (4)
available for use on an unlimited number of computers in a single
location; (5) database may be located on a server accessible by all
system users at a single location; and (6) prints the cable system`s
Statement of Account on images of the Copyright Office prescribed
forms. See https://www.gralin.net (Last accessed on August 13, 2010).
---------------------------------------------------------------------------
The Office recently revised the cable statement of account forms in
light of the recent STELA amendments to Section 111. The new SA3 form
now reflects the royalty rate adjustments found in STELA and includes,
inter alia, modifications to accommodate the reporting of subscriber
groups and multiple channel line-ups and the retransmission of
multicast streams. The paper and PDF versions of the form have been
available to cable operators since the second week in July. However,
the Gralin SOA ``fill-in'' form, which is usually released at or about
the same time as the paper version in years past, was not made publicly
available until August 6, 2010. This form was delayed because it had to
undergo performance tests over a period spanning several days. As such,
cable operators who have relied on the Gralin form have been unable to
access it or use it until very recently.
NCTA request. On August 12, 2010, the National Cable and
Telecommunications Association (``NCTA'') filed a letter with the
Office seeking an extension, for 30 days, of the filing deadline for
cable copyright Statements of Account covering the first accounting
period of 2010.\5\
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\5\Letter from Diane Burstein, Deputy General Counsel, NCTA, to
Marybeth Peters, Register of Copyrights, dated August 12, 2010.
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NCTA explains that Section 111(d)(2) of the Act requires cable
operators to file semi-annual Statements of Account. It then states
that Section 201.17(c)(1) of the Office`s regulations provide that
those filings ``shall be deposited in the Copyright Office, together
with the total royalty fee for such accounting periods as prescribed by
Section 111(d)(1) (B), (C), or (D) of title 17, by not later than the
immediately following August 29, if the SOA covers the January 1
through June 30 accounting period....'' It also notes that Section
201.17(i)(4) of the Office`s regulations state that royalty fee
payments ``submitted as a result of late or amended filings'' must
include interest. NCTA requests that the Office issue a waiver so that
SOAs currently due August 30, 2010, instead would be due September 29,
2010. NCTA adds that pursuant to its waiver request, SOA filings made
by that date would be considered timely and no interest would be
assessed, but that SOA filings made after September 29, 2010, would be
assessed interest from September 30, 2010, until the filing date.
NCTA comments that this one-time waiver is warranted in light of
the changes to the Statement of Account forms and associated
calculations resulting from Congress's adoption of STELA leaving little
time for making the necessary changes to the SOA forms that must be
used for the first accounting period of 2010. It adds that many cable
operators that file SOAs for multiple cable systems use commercial
software to facilitate those filings. It remarks that this software was
not approved by the Office for use until August 6, 2010. According to
NCTA, even after the software`s release, cable operators using the
software have discovered problems that have delayed their ability to
input necessary data.\6\
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\6\Id. It appears that NCTA is referring to Gralin without
stating so directly.
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NCTA asserts that granting the waiver will be in the public
interest. It states that additional time will help operators accurately
complete their SOA filings, thus reducing the need to file supplemental
or amended SOAs. It adds that providing sufficient time so operators
can make that single filing will also alleviate burdens on the Office.
NCTA asserts that it is authorized to represent that Program Suppliers,
Joint Sports Claimants, Commercial Television Claimants, Public
Television Claimants, Music Claimants, Devotional Claimants, National
Public Radio and Canadian Claimants (collectively, the ``Phase I
Claimants'') do not oppose the granting by the Copyright Office of this
one-time waiver.\7\
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\7\Id.
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Discussion. We grant NCTA's request to waive the filing requirement
under Section 201.17(c)(1) of the Office's rules and extend the filing
deadline to Septemeber 29, 2010. We recognize that the passage of STELA
in the late Spring of this year, and the subsequent work by the Office
to revise the cable statements of account, have impaired the timely
availability of the forms cable operators use to pay their royalty
fees, especially the revised Gralin form. While we recognize that the
paper and PDF versions of the SOA have been available since July, many
large and small cable
[[Page 52269]]
operators have continued to rely on the Gralin form to fulfill their
SOA reporting and filing requirement under Section 111. Given that the
Gralin form had been made available well in advance of the first day of
the 60-day filing period in years past, operators had reasonably
expected that it would be ready to use at or about the same time this
year. However, through no fault of their own, the cable operators
relying on Gralin did not have access to the revised Gralin form until
August 6 this year, reducing to about three weeks the time they would
have had to process and file their forms in the absence of a waiver. We
recognize that complying with the existing deadline would be an
arduous, and perhaps insurmountable task, for many cable operators
particularly those who would have to file hundreds of forms during
these last three weeks.
Further, as NCTA indicates, there are still minor problems with the
Gralin software that have been discovered after its official release on
August 6th. Cable operators should not be held accountable for matters
beyond their control. The grant of the requested waiver will permit
Gralin an additional amount of time to fix the problems with its
software so that the SOA filings will be both accurate and complete.\8\
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\8\Gralin has reported that the glitches in its software have
led, in limited instances, to difficulties in reporting certain data
points and printing of the SA3 form. The Office is currently working
with Gralin to resolve these glitches.
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We also agree with NCTA when it states that additional time will
help operators accurately complete their SOA filings, thus reducing the
need to file supplemental or amended SOAs. It is evident that providing
sufficient time so operators can make that single filing will alleviate
burdens on the cable industry as well as the Copyright Office and
produce more accurate filings. In this context, a waiver will serve the
interest of the public because it will reduce unnecessary paperwork and
further the efficient administration and processing of the incoming
SOAs.
NCTA has also indicated that copyright owner groups would not
oppose a thirty day extension of the filing deadline, and the Office
has received confirmation from representatives of the copyright owner
groups that this is the case. On this point, we note that the Office is
waiving a procedural deadline and not a substantive royalty
requirement. Cable operators will still be paying the royalties that
are due under the Section 111 framework, albeit under a modified
timeline. Thus, in light of the problems associated with providing
forms and the lack of any opposition from those who have a direct stake
in the filing of the statements of account and the timely receipt of
royalty payments, the Office perceives no reason to deny the request.
Finally, we note that waivers are rarely granted by the Office.
However, the action taken today is necessary because of unique,
extenuating circumstances.\9\
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\9\See Filing of Claims for DART Royalty Funds, 68 FR 74481
(Dec. 24, 2003), citing Northeast Cellular Telephone Company v. FCC,
897 F.2d 1164, 1166 (D.C. Cir. 1990) (holding that a waiver of an
agency`s rules is ``appropriate only if special circumstances
warrant a deviation from the general rule and such deviation will
serve the public interest.'').
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We hereby waive Section 201.17(c)(1) and extend the date for filing
cable statements of account to September 29, 2010. Accordingly,
interest will be assessed pursuant to Section 201.17(i)(4) for late
payments made after September 29, 2010.
Dated: August 18,2010
Marybeth Peters,
Register of Copyrights,
U.S. Copyright Office.
[FR Doc. 2010-20956 Filed 8-24-10; 8:45 am]
BILLING CODE 1410-30-S