Determination of Reasonable Rates and Terms for Noncommercial Broadcasting, 24662-24667 [2012-9927]

Download as PDF 24662 Federal Register / Vol. 77, No. 80 / Wednesday, April 25, 2012 / Proposed Rules are required by a Federal agency rather than submit a balance sheet that is certified by a certified public accountant (CPA). Additionally, a change that affects the provision requiring banks to give the Commission notice of actions alleging insolvency or bankruptcy is also being proposed. North Dakota is proposing these changes both in order to be compliant with state and Federal banking regulations and to assist banks that could possibly have difficulty submitting CPA certified balance sheets. III. Public Comment Procedures Under the provisions of 30 CFR 732.17(h), we are seeking your comments on whether the amendment satisfies the applicable program approval criteria of 30 CFR 732.15. If we approve the amendment, it will become part of the North Dakota program. pmangrum on DSK3VPTVN1PROD with PROPOSALS-1 Electronic or Written Comments If you submit written comments, they should be specific, confined to issues pertinent to the proposed regulations, and explain the reason for any recommended change(s). We appreciate any and all comments, but those most useful and likely to influence decisions on the final regulations will be those that either involve personal experience or include citations to and analyses of SMCRA, its legislative history, its implementing regulations, case law, other pertinent state or Federal laws or regulations, technical literature, or other relevant publications. We cannot ensure that comments received after the close of the comment period (see DATES) or sent to an address other than those listed above (see ADDRESSES) will be included in the docket for this rulemaking and considered. Public Availability of Comments Before including your address, phone number, email address, or other personal identifying information in your comment, you should be aware that your entire comment—including your personal identifying information—may be made publicly available in the electronic docket for this rulemaking at www.regulations.gov. While you can ask us in your comment to withhold your personal identifying information from public review, we cannot guarantee that we will be able to do so. Public Hearing If you wish to speak at the public hearing, contact the person listed under FOR FURTHER INFORMATION CONTACT by 4 p.m., m.d.t. on May 10, 2012. If you are disabled and need reasonable accommodations to attend a public VerDate Mar<15>2010 13:41 Apr 24, 2012 Jkt 226001 hearing, contact the person listed under We will arrange the location and time of the hearing with those persons requesting the hearing. If no one requests an opportunity to speak, we will not hold the hearing. To assist the transcriber and ensure an accurate record, we request, if possible, that each person who speaks at a public hearing provide us with a written copy of his or her comments. The public hearing will continue on the specified date until everyone scheduled to speak has been given an opportunity to be heard. If you are in the audience and have not been scheduled to speak and wish to do so, you will be allowed to speak after those who have been scheduled. We will end the hearing after everyone scheduled to speak and others present in the audience who wish to speak, have been heard. FOR FURTHER INFORMATION CONTACT. Public Meeting If only one person requests an opportunity to speak, we may hold a public meeting rather than a public hearing. If you wish to meet with us to discuss the amendment, please request a meeting by contacting the person listed under FOR FURTHER INFORMATION CONTACT. All such meetings are open to the public and, if possible, we will post notices of meetings at the locations listed under ADDRESSES. We will make a written summary of each meeting a part of the administrative record. IV. Procedural Determinations Executive Order 12866—Regulatory Planning and Review This rule is exempted from review by the Office of Management and Budget (OMB) under Executive Order 12866 (Regulatory Planning and Review). Other Laws and Executive Orders Affecting Rulemaking When a State submits a program amendment to OSM for review, our regulations at 30 CFR 732.17(h) require us to publish a notice in the Federal Register indicating receipt of the proposed amendment, its text or a summary of its terms, and an opportunity for public comment. We conclude our review of the proposed amendment after the close of the public comment period and determine whether the amendment should be approved, approved in part, or not approved. At that time, we will also make the determinations and certifications required by the various laws and executive orders governing the rulemaking process and include them in the final rule. PO 00000 Frm 00023 Fmt 4702 Sfmt 4702 List of Subjects in 30 CFR Part 934 Intergovernmental relations, Surface mining, Underground mining. Dated: March 7, 2012. Allen D. Klein, Director, Western Region. [FR Doc. 2012–9869 Filed 4–24–12; 8:45 am] BILLING CODE 4310–05–P LIBRARY OF CONGRESS Copyright Royalty Board 37 CFR Part 381 [Docket No. 2011–2 CRB NCEB II] Determination of Reasonable Rates and Terms for Noncommercial Broadcasting Copyright Royalty Board, Library of Congress. ACTION: Proposed rule. AGENCY: The Copyright Royalty Judges are publishing for comment proposed rates and terms for use of certain works in connection with noncommercial broadcasting for the period commencing January 1, 2013, and ending on December 31, 2017. DATES: Comments and objections, if any, are due no later than May 25, 2012. ADDRESSES: Comments and objections may be sent electronically to crb@loc.gov. In the alternative, send an original, five copies and an electronic copy on a CD either by mail or by hand delivery. Please do not use multiple means of transmission. Comments and objections may not be delivered by an overnight delivery service other than the U.S. Postal Service Express Mail. If by mail (including overnight delivery), comments and objections must be addressed to: Copyright Royalty Board, P.O. Box. 70977, Washington, DC 20024–0977. If hand delivered by a private party, comments and objections must be brought to the Copyright Office, Public Information Office, Library of Congress, James Madison Memorial Building, Room LM–401, 101 Independence Avenue SE., Washington, DC 20559–6000, between 8:30 a.m. and 5 p.m. If delivered by a commercial courier, comments and objections must be delivered between 8:30 a.m. and 4 p.m. to the Congressional Courier Acceptance Site located at 2nd and D Street NE., Washington, DC, and the envelope must be addressed to: Copyright Royalty Board, Library of Congress, James Madison Memorial Building, Room LM–403, 101 Independence Avenue SE., Washington, DC 20559–6000. SUMMARY: E:\FR\FM\25APP1.SGM 25APP1 Federal Register / Vol. 77, No. 80 / Wednesday, April 25, 2012 / Proposed Rules FOR FURTHER INFORMATION CONTACT: pmangrum on DSK3VPTVN1PROD with PROPOSALS-1 LaKeshia Keys, Program Specialist, by telephone: (202) 707–7658 or email at crb@loc.gov. SUPPLEMENTARY INFORMATION: Background Section 118 of the Copyright Act, title 17 of the United States Code, establishes a statutory license for the use of certain copyrighted works in connection with noncommercial television and radio broadcasting. Chapter 8 of the Copyright Act requires the Copyright Royalty Judges (‘‘Judges’’) to conduct proceedings every five years to determine the rates and terms for the section 118 license.1 17 U.S.C. 801(b)(1), 804(b)(6). In accordance with section 804(b)(6), the Judges commenced the proceeding to set rates and terms for the period 2008–2012 on January 9, 2006, 71 FR 1453, and published final regulations setting those rates and terms on November 30, 2007. 72 FR 67646. Therefore, the next proceeding to determine the rates and terms for the section 118 license was to be commenced in January 2011 for the period 2013–2017. 17 U.S.C. 804(b)(6). Accordingly, the Judges published in the Federal Register a notice commencing the proceeding to determine the rates and terms for the 2013–2017 period and requesting interested parties to submit their petitions to participate. 76 FR 591 (January 5, 2011). Petitions to Participate were received from: The American Society of Authors, Composers and Publishers (‘‘ASCAP’’); SESAC, Inc.; Broadcast Music, Inc. (‘‘BMI’’); Educational Media Foundation (‘‘EMF’’); Music Reports, Inc.; National Public Radio, the Public Broadcasting Service, and noncommercial radio and television stations eligible to receive funding from the Corporation for Public Broadcasting jointly (‘‘NPR/PBS/CPB’’); National Religious Broadcasters Noncommercial Music License Committee (‘‘NRBNMLC’’); the Church Music Publishers’ Association; the National Music Publishers’ Association, Inc. and the Harry Fox Agency, jointly (‘‘NMPA/HFA’’); the Catholic Radio Association (‘‘CRA’’); and the American Council on Education (‘‘ACE’’). The Judges set the timetable for the threemonth negotiation period, see 17 U.S.C. 803(b)(3), and directed the participants to submit their written direct statements 1 Prior to the enactment of the Copyright Royalty and Distribution Reform Act of 2004, which established the Copyright Royalty Judges, rates and terms for the section 118 statutory license were set under the Copyright Arbitration Royalty Panel system, which was administered by the Librarian of Congress. VerDate Mar<15>2010 13:41 Apr 24, 2012 Jkt 226001 no later than October 31, 2011. In response to the October 31 deadline, the Judges received written direct statements from CRA, BMI, ASCAP, and Music Reports, Inc.2 as well as several notifications of settlement and proposed rates and terms for the Copyright Royalty Judges to adopt. There are two ways that copyright owners and public broadcasting entities 3 may negotiate rates and terms under the section 118 statutory license. First, copyright owners may negotiate rates and terms with specific public broadcasting entities for the use of all of the copyright owners’ works covered by the license. Section 118(b)(2) provides that such license agreements ‘‘shall be given effect in lieu of any determination by the * * * Copyright Royalty Judges,’’ provided that copies of the agreement are submitted to the Judges ‘‘within 30 days of execution.’’ 17 U.S.C. 118(b)(2). The Judges received several agreements in this category for which no further action is required. Second, copyright owners and public broadcasting entities may negotiate rates and terms for categories of copyrighted works and uses that would be binding on all owners and entities and submit them to the Judges for approval. Section 801(b)(7)(A) provides that in such event: (i) The Copyright Royalty Judges shall provide those that would be bound by the terms, rates, or other determination set by any agreement in a proceeding to determine royalty rates an opportunity to comment on the agreement and shall provide to participants in the proceeding under section 803(b)(2) that would be bound by the terms, rates, or other determination set by the agreement to comment on the agreement and object to its adoption as a basis for statutory terms and rates; and (ii) the Copyright Royalty Judges may decline to adopt the agreement as a basis for statutory terms and rates for participants that are not parties to the agreement, if any participant described in clause (i) objects to the agreement and the Copyright Royalty Judges conclude, based on the record before them if one exists, that the agreement does not provide a reasonable basis for setting statutory terms and rates. 2 Pursuant to 17 U.S.C. 803(b)(6)(C)(x), the Judges set the 60-day discovery period to run from November 30, 2011, through January 30, 2012. During the discovery period, Music Reports, Inc., and CRA each withdrew from the proceeding on December 13, 2011, and January 27, 2012, respectively. CRA also requested that the Judges vacate their Order dated January 20, 2012, compelling CRA to produce certain discovery; the Judges deny this request as moot, given CRA’s withdrawal from the proceeding. 3 A ‘‘public broadcasting entity’’ is defined as a ‘‘noncommercial educational broadcast station as defined in section 397 of title 47 and any nonprofit institution or organization engaged in the activities described in paragraph (2) of subsection (c)’’ of section 118. 17 U.S.C. 118(f). PO 00000 Frm 00024 Fmt 4702 Sfmt 4702 24663 17 U.S.C. 801(b)(7)(A). The Judges received seven proposals within this category from the following participants: (1) SESAC and ACE; (2) BMI and ACE; (3) ASCAP and ACE; (4) NMPA/HFA and NRBNMLC; (5) SESAC and NRBNMLC, (6) ASCAP and NRBNMLC; and (7) BMI and NRBNMLC.4 ACE Joint Proposals The joint proposals entered into by ACE and each of SESAC, BMI, and ASCAP propose to modify the royalty rates set forth in § 381.5. The rates proposed in the ASCAP/ACE and BMI/ ACE submissions reflect a change in both the fees and the fee structure, going from a flat rate to tiered rates primarily based on the number of full-time students enrolled in the educational entity operating the station, with an exception that looks to the college radio station’s authorized effective radiation power (‘‘ERP’’) as set forth in its current FCC license. ASCAP/ACE Joint Proposal at 4; BMI/ACE Joint Proposal at 4. Moreover, the proposed rates for ASCAP and BMI eliminate the need for the historic annual Consumer Price Index adjustments, as the proposed rates increase at the rate of two percent per year. Id. at 5. The SESAC/ACE submission retains a flat rate which is then adjusted, starting in 2014, by the change in the Consumer Price Index or two percent, whichever is greater. SESAC/ACE Joint Proposal at 2.5 Each joint proposal proposes to require that each annual payment of the royalty rate be accompanied by a declaration stating the number of fulltime students enrolled in the educational entity operating the station and/or the ERP as specified in the entity’s current FCC license. See proposed § 381.5(d). NRBNMLC Joint Proposals The joint proposals entered into by NRBNMLC and each of NMPA/HFA, ASCAP, BMI, and SESAC propose carrying forward unchanged the current provisions set forth in §§ 381.1 (except 4 On October 31, 2011, EMF notified the Judges that as a member of NRBNMLC it was a party to each of the joint proposals involving NRBNMLC. 5 The proposed elimination of the CPI adjustments for ASCAP and BMI necessitated a change to § 381.10. However, no proposed language was provided with the initial proposals. Consequently, the Judges issued an order requesting proposed language to § 381.10, and the parties provided the same. See Order Regarding Submission of Settlement Proposals, Docket No. 2011–3 CRB NCEB II (February 2, 2012). See also Joint Submission of American Council on Education, the American Society of Composers, Authors and Publishers, Broadcast Music, Inc., and SESAC, Inc. (filed March 16, 2012). E:\FR\FM\25APP1.SGM 25APP1 24664 Federal Register / Vol. 77, No. 80 / Wednesday, April 25, 2012 / Proposed Rules to replace ‘‘2008’’ with ‘‘2013’’ and ‘‘2012’’ with ‘‘2017’’), 381.2, 381.9, and 381.11. The joint proposal between NMPA/ HFA and NRBNMLC stated that the rates in § 381.7(b)(4) should remain the same as those currently set for 2008– 2012, ‘‘subject to the additional provisions’’ of §§ 381.7(b)(3) and (5), since they ‘‘are reasonable’’ and ‘‘no circumstances exist that would warrant modification of these fees.’’ NMPA/HFA and NRBNMLC Joint Proposal at 2. The proposal also stated that separate negotiations were ongoing between HFA and NMPA and NPR and PBS with respect to provisions in § 381.7 other than § 381.7(b)(4). Id. at 2–3. When such proposal did not appear to be forthcoming, the Judges issued an order requesting in part that such proposal, if finalized, be submitted by March 16, 2012, in order to allow for publication of all proposed rates and terms in a single document. See Order Regarding Submission of Settlement Proposals, Docket No. 2011–2 CRB NCEB II (February 2, 2012); see also n.5. However, after receiving no responsive filings, the Judges issued a subsequent order requiring HFA, NMPA, NPR, and PBS to show cause why the provisions to be covered by their separate proposal (§§ 381.7(b)(1)(i)–(iii), 381.7(b)(2)(i)–(iv), 381.7(c), 381.7(d), and 381.7(e)) should not be removed from Part 381. See Order to Show Cause, Docket No. 2011– 2 CRB NCEB II (March 28, 2012). In response, HFA, NMPA, NPR and PBS submitted their joint proposal covering the provisions specified in the March 28 order. Specifically, they proposed that the rates set forth in §§ 381.7(b)(1) and (2) ‘‘be changed to reflect a rate increase consistent with the prior percentage increase from the 2003–2007 license period to the 2008–2012 license period’’ as such increase ‘‘is fair and reasonable.’’ Response to Order to Show Cause, and Joint Proposal of the Harry Fox Agency, Inc., National Music Publishers’ Association, Inc., National Public Radio, Inc. and Public Broadcasting Service, at 3 (April 4, 2012). These parties proposed no changes to §§ 381.7(c)–(e) and requested that these provisions be carried forward as is because they ‘‘are fair and reasonable in that they facilitate efficient, consistent and accurate payments of royalties for uses governed by [§ ] 381.7.’’ Id. at 4. Each of the joint proposals between NRBNMLC and ASCAP, BMI, and SESAC propose modifications to § 381.6. Under the proposals, alternatives have been provided to a Religious/Community Noncommercial Radio Station in determining its Population Count which is the basis of the rates paid. In addition, the proposals include a new reduced rate for a Religious/Community Noncommercial Radio Station using a talk format necessitating a number of newly defined terms. Finally, the proposals address a Religious/Community Noncommercial Radio Station’s broadcast of in-band, onchannel, digital radio (‘‘HD Radio’’) signals. Other Provisions Finally, the Judges have removed and reserved two sections for which no proposals were submitted. Specifically, § 381.4, which governed performance of musical compositions by PBS, NPR and other public broadcasting entities engaged in the activities of 17 U.S.C. 118(c), and § 381.8, which governed the terms and rates of royalty payments for the use of published pictorial, graphic, and sculptural works in PBS-distributed programs as well as in other than PBSdistributed programs, have been removed and their section numbers reserved. As noted above, the public may comment and object to any or all of the proposed regulations contained in this notice. Such comments and objections Number of full-time students pmangrum on DSK3VPTVN1PROD with PROPOSALS-1 Level Level Level Level Level 1 2 3 4 5 ............................ ............................ ............................ ............................ ............................ VerDate Mar<15>2010 13:41 Apr 24, 2012 Jkt 226001 47 CFR 73.310(a), of 100 Watts or less, as specified on its current FCC license, regardless of the size of the student population. PO 00000 Frm 00025 Fmt 4702 List of Subjects in 37 CFR Part 381 Copyright, Music, Radio, Television, Rates. Proposed Regulations For the reasons set forth in the preamble, the Copyright Royalty Judges propose to amend Part 381 to Chapter III of title 37 of the Code of Federal Regulations to read as follows: PART 381—USE OF CERTAIN COPYRIGHTED WORKS IN CONNECTION WITH NONCOMMERCIAL EDUCATIONAL BROADCASTING 1. The authority citation for part 381 continues to read as follows: Authority: 17 U.S.C. 118, 801(b)(1) and 803. § 381.1 Sfmt 4702 [Amended] 2. Section 381.1 is amended by removing ‘‘2008’’ and adding ‘‘2013’’ in its place and by removing ‘‘2012’’ and adding ‘‘2017’’ in its place. § 381.4 [Removed and Reserved] 3. Remove and reserve § 381.4. 4. Section 381.5 is amended by revising paragraphs (c) and (d) to read as follows: § 381.5 Performance of musical compositions by public broadcasting entities licensed to colleges and universities. * * * * * (c) Royalty rate. A public broadcasting entity within the scope of this section may perform published nondramatic musical compositions subject to the following schedule of royalty rates: (1) For all such compositions in the repertory of ASCAP, the royalty rates shall be as follows: (i) 2013 <1,000 ....................................................................................... 1,000–4,999 .............................................................................. 5,000–9,999 .............................................................................. 10,000–19,999 .......................................................................... 20,000 + .................................................................................... (ii) Level 1 rates as set forth in paragraph (c)(1)(i) of this section, shall also apply to College Radio Stations with an authorized effective radiated power (ERP), as that term is defined in must be submitted no later than May 25, 2012. $319 369 505 655 822 2014 $325 376 515 668 838 2015 $332 384 525 681 855 2016 $339 392 535 695 872 2017 $345 399 546 708 890 (2) For all such compositions in the repertory of BMI, the royalty rates shall be as follows: (i) E:\FR\FM\25APP1.SGM 25APP1 24665 Federal Register / Vol. 77, No. 80 / Wednesday, April 25, 2012 / Proposed Rules Number of full-time students pmangrum on DSK3VPTVN1PROD with PROPOSALS-1 Level Level Level Level Level 1 2 3 4 5 ............................ ............................ ............................ ............................ ............................ 2013 <1,000 ....................................................................................... 1,000–4,999 .............................................................................. 5,000–9,999 .............................................................................. 10,000–19,999 .......................................................................... 20,000 + .................................................................................... (ii) Level 1 rates, as set forth in paragraph (c)(2)(i) of this section, shall also apply to College Radio Stations with an authorized effective radiated power (ERP), as that term is defined in 47 CFR 73.310(a), of 100 Watts or less, as specified on its current FCC license, regardless of the size of the student population. (3) For all such compositions in the repertory of SESAC, the royalty rates shall be as follows: (i) 2013: $140.00 per station; (ii) 2014: $140 per station, subject to an annual cost of living adjustment in accordance with paragraph (c)(3)(vi) of this section; (iii) 2015: The 2014 rate, subject to an annual cost of living adjustment in accordance with paragraph (c)(3)(vi) of this section; (iv) 2016: The 2015 rate, subject to an annual cost of living adjustment in accordance with paragraph (c)(3)(vi) of this section; (v) 2017: The 2016 rate, subject to an annual cost of living adjustment in accordance with paragraph (c)(3)(vi) of this section. (vi) Such cost of living adjustment to be made in accordance with the greater of (A) The change, if any, in the Consumer Price Index (all consumers, all items) published by the U.S. Department of Labor, Bureau of Labor Statistics during the twelve (12) month period from the most recent Index, published before December 1 of the year immediately prior to the applicable year, or (B) Two percent (2%). (4) For the performance of any other such compositions: $1. (d) Payment of royalty rate. The public broadcasting entity shall pay the required royalty rate to ASCAP, BMI and SESAC not later than January 31 of each year. Each annual payment to ASCAP, BMI and SESAC shall be accompanied by a signed declaration stating the number of full-time students enrolled in the educational entity operating the station and/or the effective radiated power (ERP) as specified in its current FCC license. An exact copy of such declaration shall be furnished to each of ASCAP, BMI and SESAC. * * * * * 5. Section 381.6 is amended as follows: a. By redesignating paragraphs (b) through (e) as paragraphs (c) through (f), respectively; b. By adding a new paragraph (b); c. By revising newly redesignated paragraph (d); d. By revising newly redesignated paragraph (e); and e. By removing current paragraph (f). The additions and revisions to § 381.6 read as follows: § 381.6 Performance of musical compositions by other public broadcasting entities. * * * * * (b) Definitions. As used in paragraphs (d) and (e) of this section, the following terms and their variant forms mean the following: (1) Feature Music shall mean any performance of a musical work, whether live or recorded, that is the principal focus of audience attention. Feature Music does not include bridge, background, or underscore music, themes or signatures, interstitial music between programs such as in public service announcements or program sponsorship identifications, brief musical transitions in and out of program segments (not to exceed 60 seconds in duration), incidental performances of music during broadcasts of public, religious, or sports events, or brief performances during news, talk, religious, and sports programming of no more than 30 seconds in duration. (2) Population Count. The combination of: (i) The number of persons estimated to reside within a station’s Predicted 60 dBu Contour, based on the most recent available census data; and (ii) The nonduplicative number of persons estimated to reside in the Predicted 60 dBu Contour of any Translator or Booster Station that Population count Level 1 ............................ Level 2 ............................ VerDate Mar<15>2010 Jkt 226001 PO 00000 Frm 00026 Fmt 4702 Sfmt 4702 $325 376 515 668 838 2015 $332 384 525 681 855 2016 $339 392 535 695 872 2017 $345 399 546 708 890 extends a public broadcasting entity’s signal beyond the contours of a station’s Predicted 60 dBu Contour. (iii) In determining Population Count, a station or a Translator or Booster Station may use and report the total population data, from a research company generally recognized in the broadcasting industry, for the radio market within which the station’s community license is located. (3) Predicted 60 dBu Contour shall be calculated as set forth in 47 CFR 73.313. (4) Talk Format Station shall mean a noncommercial radio station: (i) Whose program content primarily consists of talk shows, news programs, sports, community affairs or religious sermons (or other non-music-oriented programming); (ii) That performs Feature Music in less than 20% of its programming annually; and (iii) That performs music-oriented programming for no more than four (4) programming hours during the hours from 6 a.m. to 10 p.m. each weekday, with no two (2) hours of such programming occurring consecutively, with the exception of up to five (5) weekdays during the year. (5) Weekday shall mean the 24-hour period starting at 12 a.m. through 11:59 p.m. on Mondays, Tuesdays, Wednesdays, Thursdays and Fridays occurring between January 1 of a given year up to and including Thanksgiving day of that year. (6) Translator Station and Booster Station shall have the same meanings as set forth in 47 CFR 74.1201. * * * * * (d) Royalty rate. A public broadcasting entity within the scope of this section may perform published nondramatic musical compositions subject to the following schedule of royalty rates: (1) For all such compositions in the repertory of ASCAP, the royalty rates shall be as follows: (i) Music Fees (Stations with 20% or more programming containing Feature Music): 2013 0–249,999 ................................................................................. 250,000–499,999 ...................................................................... 13:41 Apr 24, 2012 $319 369 505 655 822 2014 $631 1,126 E:\FR\FM\25APP1.SGM 2014 $644 1,149 25APP1 2015 $657 1,171 2016 $670 1,195 2017 $683 1,219 24666 Federal Register / Vol. 77, No. 80 / Wednesday, April 25, 2012 / Proposed Rules Population count Level Level Level Level Level Level 3 4 5 6 7 8 ............................ ............................ ............................ ............................ ............................ ............................ 2013 500,000–999,999 ...................................................................... 1,000,000–1,499,999 ................................................................ 1,500,000–1,999,999 ................................................................ 2,000,000–2,499,999 ................................................................ 2,500,000–2,999,999 ................................................................ 3,000,000 and above ................................................................ 1,688 2,251 2,814 3,377 3,939 5,628 2014 1,722 2,296 2,870 3,445 4,018 5,741 2015 1,756 2,342 2,928 3,513 4,098 5,855 2016 1,791 2,389 2,986 3,584 4,180 5,972 2017 1,827 2,437 3,046 3,655 4,264 6,092 (ii) Talk Format Station Fees (Stations with <20% Feature Music programming): Population count Level Level Level Level Level Level Level Level 1 2 3 4 5 6 7 8 ............................ ............................ ............................ ............................ ............................ ............................ ............................ ............................ 2013 0–249,999 ................................................................................. 250,000–499,999 ...................................................................... 500,000–999,999 ...................................................................... 1,000,000–1,499,999 ................................................................ 1,500,000–1,999,999 ................................................................ 2,000,000–2,499,999 ................................................................ 2,500,000–2,999,999 ................................................................ 3,000,000 and above ................................................................ (2) For all such compositions in the repertory of BMI, the royalty rates shall be as follows: 1 2 3 4 5 6 7 8 ............................ ............................ ............................ ............................ ............................ ............................ ............................ ............................ $644 644 644 804 1,005 1,206 1,406 2,009 2015 $657 657 657 820 1,025 1,230 1,434 2,049 2016 $670 670 670 836 1,045 1,254 1,463 2,090 2017 $683 683 683 853 1,066 1,279 1,492 2,132 (i) Music Fees (Stations with 20% or more programming containing Feature Music): Population count Level Level Level Level Level Level Level Level $631 631 631 788 985 1,182 1,379 1,970 2014 2013 0–249,999 ................................................................................. 250,000–499,999 ...................................................................... 500,000–999,999 ...................................................................... 1,000,000–1,499,999 ................................................................ 1,500,000–1,999,999 ................................................................ 2,000,000–2,499,999 ................................................................ 2,500,000–2,999,999 ................................................................ 3,000,000 and above ................................................................ $631 1,126 1,688 2,251 2,814 3,377 3,939 5,628 2014 $644 1,149 1,722 2,296 2,870 3,445 4,018 5,741 2015 $657 1,171 1,756 2,342 2,928 3,513 4,098 5,855 2016 $670 1,195 1,791 2,389 2,986 3,584 4,180 5,972 2017 $683 1,219 1,827 2,437 3,046 3,655 4,264 6,092 (ii) Talk Format Station Fees (Stations with <20% Feature Music programming): Population count Level Level Level Level Level Level Level Level 1 2 3 4 5 6 7 8 ............................ ............................ ............................ ............................ ............................ ............................ ............................ ............................ 0–249,999 ................................................................................. 250,000–499,999 ...................................................................... 500,000–999,999 ...................................................................... 1,000,000–1,499,999 ................................................................ 1,500,000–1,999,999 ................................................................ 2,000,000–2,499,999 ................................................................ 2,500,000–2,999,999 ................................................................ 3,000,000 and above ................................................................ (3) For all such compositions in the repertory of SESAC, the royalty rates shall be as follows: pmangrum on DSK3VPTVN1PROD with PROPOSALS-1 2013 1 2 3 4 5 6 7 ............................ ............................ ............................ ............................ ............................ ............................ ............................ VerDate Mar<15>2010 2013 0–249,999 ................................................................................. 250,000–499,999 ...................................................................... 500,000–999,999 ...................................................................... 1,000,000–1,499,999 ................................................................ 1,500,000–1,999,999 ................................................................ 2,000,000–2,499,999 ................................................................ 2,500,000–2,999,999 ................................................................ 13:41 Apr 24, 2012 Jkt 226001 $644 644 644 804 1,005 1,206 1,406 2,009 2015 $657 657 657 820 1,025 1,230 1,434 2,049 2016 $670 670 670 836 1,045 1,254 1,463 2,090 2017 $683 683 683 853 1,066 1,279 1,492 2,132 (i) Music fees for stations with >=20% Feature Music programming: Population count Level Level Level Level Level Level Level $631 631 631 788 985 1,182 1,379 1,970 2014 PO 00000 Frm 00027 Fmt 4702 Sfmt 4702 $138 230 345 459 574 689 804 E:\FR\FM\25APP1.SGM 2014 $140 234 352 468 586 702 820 25APP1 2015 $143 239 359 478 597 716 836 2016 $146 244 366 487 609 731 853 2017 $149 248 373 497 622 745 870 24667 Federal Register / Vol. 77, No. 80 / Wednesday, April 25, 2012 / Proposed Rules Population count Level 8 ............................ 2013 3,000,000 and above ................................................................ 1,149 2014 1,171 2015 2016 1,195 2017 1,219 1,243 (ii) Talk fees for stations with <20% Feature Music programming: Population count pmangrum on DSK3VPTVN1PROD with PROPOSALS-1 Level Level Level Level Level Level Level Level 1 2 3 4 5 6 7 8 ............................ ............................ ............................ ............................ ............................ ............................ ............................ ............................ 0–249,999 ................................................................................. 250,000–499,999 ...................................................................... 500,000–999,999 ...................................................................... 1,000,000–1,499,999 ................................................................ 1,500,000–1,999,999 ................................................................ 2,000,000–2,499,999 ................................................................ 2,500,000–2,999,999 ................................................................ 3,000,000 and above ................................................................ (4) For the performance of any other such compositions, in 2013 through 2017, $1. (e) Payment of royalty rate. The public broadcasting entity shall pay the required royalty rate to ASCAP, BMI and SESAC not later than January 31 of each year. Each annual payment shall be accompanied by a signed declaration stating the Population Count of the public broadcasting entity and the source for such Population Count. An exact copy of such declaration shall be furnished to each of ASCAP, BMI and SESAC. Upon prior written notice thereof from ASCAP, BMI and SESAC, a public broadcasting entity shall make its books and records relating to its Population Count available for inspection. In the event that a public broadcasting entity wishes to be deemed a Talk Format Station, then such entity shall provide a signed declaration stating that Feature Music is performed in less than 20% of its annual programming and that it complies with the caps set forth in paragraph (b)(4) of this section. An exact copy of such declaration shall be furnished to each of ASCAP, BMI and SESAC. Upon prior written notice thereof from ASCAP, BMI or SESAC, a public broadcasting entity shall make its program schedule or other documentation supporting its eligibility as a Talk Format Station available for inspection. * * * * * 6. Section 381.7 is amended as follows: a. By revising paragraphs (b)(1)(i)(A)– (D) and (b)(1)(ii)(A)–(D); b. By revising paragraphs (b)(2)(i)– (iv); c. In paragraph (b)(4), by removing ‘‘2008–2012’’ and adding ‘‘2013–2017’’ in its place; and d. In paragraph (b)(5), by removing ‘‘2012’’ and adding ‘‘2017’’ in its place. VerDate Mar<15>2010 2013 13:41 Apr 24, 2012 Jkt 226001 $138 138 138 161 201 241 281 402 The revisions to § 381.7 read as follows: § 381.7 * Recording rights, rates and terms. * * (b) * * * (1)(i) * * * * * (A) Feature .......................................... (B) Concert feature (per minute) ....... (C) Background ................................... (D) Theme: (1) Single program or first series program ........................................ (2) Other series program ................ $116.37 $34.95 $58.81 $58.81 $23.88 (ii) * * * 2013–2017 (A) Feature .......................................... (B) Concert feature (per minute) ....... (C) Background ................................... (D) Theme: (1) Single program or first series program ........................................ (2) Other series program ................ * * (2) * * * * $9.62 $2.53 $4.18 $4.18 $1.66 * 2013–2017 (i) Feature ........................................... (ii) Concert feature (per minute) ....... (iii) Background .................................. (iv) Theme: (A) Single program or first series program ........................................ (B) Other series program ................ * * § 381.8 * * $12.60 $18.49 $6.31 $6.31 $2.52 * [Removed and Reserved] 7. Remove and reserve § 381.8. 8. Section 381.10 is amended as follows: a. In paragraph (a), by removing ‘‘2007’’ and adding ‘‘2013’’ in its place in each place it appears and by removing ‘‘2006’’ and adding ‘‘2012’’ in its place, and by removing ‘‘On each December 1’’ and adding ‘‘On or before each December 1’’ in its place; b. By revising paragraph (b); PO 00000 Frm 00028 $140 140 140 164 205 246 287 410 Fmt 4702 Sfmt 4702 2015 2016 $143 143 143 167 209 251 293 418 2017 $146 146 146 170 213 256 299 427 $149 149 149 174 218 261 305 435 c. In paragraph (c), by adding ‘‘the’’ before ‘‘rates’’, by removing ‘‘381.5’’ and adding ‘‘381.5(c)(3)’’ in its place, and by adding ‘‘(30)’’ after ‘‘thirty’’. The revisions to § 381.10 read as follows: § 381.10 2013–2017 * 2014 Cost of living adjustment. * * * * * (b) On the same date of the notices published pursuant to paragraph (a) of this section, the Copyright Royalty Judges shall publish in the Federal Register a revised schedule of the rates for § 381.5(c)(3), the rate to be charged for compositions in the repertory of SESAC, which shall adjust the royalty amounts established in a dollar amount according to the greater of (1) The change in the cost of living determined as provided in paragraph (a) of this section, or (2) Two percent (2%). (3) Such royalty rates shall be fixed at the nearest dollar. * * * * * Dated: April 20, 2012. Stanley C. Wisniewski, U.S. Copyright Royalty Judge. [FR Doc. 2012–9927 Filed 4–24–12; 8:45 am] BILLING CODE 1410–72–P DEPARTMENT OF HEALTH AND HUMAN SERVICES Administration for Children and Families 45 CFR Parts 262 and 265 TANF Assistance and Electronic Benefit Transfer Transactions; Request for Public Comment Department of Health and Human Services (HHS), Administration for Children and Families, Office of Family Assistance (OFA). AGENCY: E:\FR\FM\25APP1.SGM 25APP1

Agencies

[Federal Register Volume 77, Number 80 (Wednesday, April 25, 2012)]
[Proposed Rules]
[Pages 24662-24667]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-9927]


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LIBRARY OF CONGRESS

Copyright Royalty Board

37 CFR Part 381

[Docket No. 2011-2 CRB NCEB II]


Determination of Reasonable Rates and Terms for Noncommercial 
Broadcasting

AGENCY: Copyright Royalty Board, Library of Congress.

ACTION: Proposed rule.

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SUMMARY: The Copyright Royalty Judges are publishing for comment 
proposed rates and terms for use of certain works in connection with 
noncommercial broadcasting for the period commencing January 1, 2013, 
and ending on December 31, 2017.

DATES: Comments and objections, if any, are due no later than May 25, 
2012.

ADDRESSES: Comments and objections may be sent electronically to 
crb@loc.gov. In the alternative, send an original, five copies and an 
electronic copy on a CD either by mail or by hand delivery. Please do 
not use multiple means of transmission. Comments and objections may not 
be delivered by an overnight delivery service other than the U.S. 
Postal Service Express Mail. If by mail (including overnight delivery), 
comments and objections must be addressed to: Copyright Royalty Board, 
P.O. Box. 70977, Washington, DC 20024-0977. If hand delivered by a 
private party, comments and objections must be brought to the Copyright 
Office, Public Information Office, Library of Congress, James Madison 
Memorial Building, Room LM-401, 101 Independence Avenue SE., 
Washington, DC 20559-6000, between 8:30 a.m. and 5 p.m. If delivered by 
a commercial courier, comments and objections must be delivered between 
8:30 a.m. and 4 p.m. to the Congressional Courier Acceptance Site 
located at 2nd and D Street NE., Washington, DC, and the envelope must 
be addressed to: Copyright Royalty Board, Library of Congress, James 
Madison Memorial Building, Room LM-403, 101 Independence Avenue SE., 
Washington, DC 20559-6000.

[[Page 24663]]


FOR FURTHER INFORMATION CONTACT: LaKeshia Keys, Program Specialist, by 
telephone: (202) 707-7658 or email at crb@loc.gov.

SUPPLEMENTARY INFORMATION: 

Background

    Section 118 of the Copyright Act, title 17 of the United States 
Code, establishes a statutory license for the use of certain 
copyrighted works in connection with noncommercial television and radio 
broadcasting. Chapter 8 of the Copyright Act requires the Copyright 
Royalty Judges (``Judges'') to conduct proceedings every five years to 
determine the rates and terms for the section 118 license.\1\ 17 U.S.C. 
801(b)(1), 804(b)(6). In accordance with section 804(b)(6), the Judges 
commenced the proceeding to set rates and terms for the period 2008-
2012 on January 9, 2006, 71 FR 1453, and published final regulations 
setting those rates and terms on November 30, 2007. 72 FR 67646. 
Therefore, the next proceeding to determine the rates and terms for the 
section 118 license was to be commenced in January 2011 for the period 
2013-2017. 17 U.S.C. 804(b)(6).
---------------------------------------------------------------------------

    \1\ Prior to the enactment of the Copyright Royalty and 
Distribution Reform Act of 2004, which established the Copyright 
Royalty Judges, rates and terms for the section 118 statutory 
license were set under the Copyright Arbitration Royalty Panel 
system, which was administered by the Librarian of Congress.
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    Accordingly, the Judges published in the Federal Register a notice 
commencing the proceeding to determine the rates and terms for the 
2013-2017 period and requesting interested parties to submit their 
petitions to participate. 76 FR 591 (January 5, 2011). Petitions to 
Participate were received from: The American Society of Authors, 
Composers and Publishers (``ASCAP''); SESAC, Inc.; Broadcast Music, 
Inc. (``BMI''); Educational Media Foundation (``EMF''); Music Reports, 
Inc.; National Public Radio, the Public Broadcasting Service, and 
noncommercial radio and television stations eligible to receive funding 
from the Corporation for Public Broadcasting jointly (``NPR/PBS/CPB''); 
National Religious Broadcasters Noncommercial Music License Committee 
(``NRBNMLC''); the Church Music Publishers' Association; the National 
Music Publishers' Association, Inc. and the Harry Fox Agency, jointly 
(``NMPA/HFA''); the Catholic Radio Association (``CRA''); and the 
American Council on Education (``ACE''). The Judges set the timetable 
for the three-month negotiation period, see 17 U.S.C. 803(b)(3), and 
directed the participants to submit their written direct statements no 
later than October 31, 2011. In response to the October 31 deadline, 
the Judges received written direct statements from CRA, BMI, ASCAP, and 
Music Reports, Inc.\2\ as well as several notifications of settlement 
and proposed rates and terms for the Copyright Royalty Judges to adopt.
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    \2\ Pursuant to 17 U.S.C. 803(b)(6)(C)(x), the Judges set the 
60-day discovery period to run from November 30, 2011, through 
January 30, 2012. During the discovery period, Music Reports, Inc., 
and CRA each withdrew from the proceeding on December 13, 2011, and 
January 27, 2012, respectively. CRA also requested that the Judges 
vacate their Order dated January 20, 2012, compelling CRA to produce 
certain discovery; the Judges deny this request as moot, given CRA's 
withdrawal from the proceeding.
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    There are two ways that copyright owners and public broadcasting 
entities \3\ may negotiate rates and terms under the section 118 
statutory license. First, copyright owners may negotiate rates and 
terms with specific public broadcasting entities for the use of all of 
the copyright owners' works covered by the license. Section 118(b)(2) 
provides that such license agreements ``shall be given effect in lieu 
of any determination by the * * * Copyright Royalty Judges,'' provided 
that copies of the agreement are submitted to the Judges ``within 30 
days of execution.'' 17 U.S.C. 118(b)(2). The Judges received several 
agreements in this category for which no further action is required.
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    \3\ A ``public broadcasting entity'' is defined as a 
``noncommercial educational broadcast station as defined in section 
397 of title 47 and any nonprofit institution or organization 
engaged in the activities described in paragraph (2) of subsection 
(c)'' of section 118. 17 U.S.C. 118(f).
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    Second, copyright owners and public broadcasting entities may 
negotiate rates and terms for categories of copyrighted works and uses 
that would be binding on all owners and entities and submit them to the 
Judges for approval. Section 801(b)(7)(A) provides that in such event:

    (i) The Copyright Royalty Judges shall provide those that would 
be bound by the terms, rates, or other determination set by any 
agreement in a proceeding to determine royalty rates an opportunity 
to comment on the agreement and shall provide to participants in the 
proceeding under section 803(b)(2) that would be bound by the terms, 
rates, or other determination set by the agreement to comment on the 
agreement and object to its adoption as a basis for statutory terms 
and rates; and
    (ii) the Copyright Royalty Judges may decline to adopt the 
agreement as a basis for statutory terms and rates for participants 
that are not parties to the agreement, if any participant described 
in clause (i) objects to the agreement and the Copyright Royalty 
Judges conclude, based on the record before them if one exists, that 
the agreement does not provide a reasonable basis for setting 
statutory terms and rates.

17 U.S.C. 801(b)(7)(A). The Judges received seven proposals within this 
category from the following participants: (1) SESAC and ACE; (2) BMI 
and ACE; (3) ASCAP and ACE; (4) NMPA/HFA and NRBNMLC; (5) SESAC and 
NRBNMLC, (6) ASCAP and NRBNMLC; and (7) BMI and NRBNMLC.\4\
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    \4\ On October 31, 2011, EMF notified the Judges that as a 
member of NRBNMLC it was a party to each of the joint proposals 
involving NRBNMLC.
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ACE Joint Proposals

    The joint proposals entered into by ACE and each of SESAC, BMI, and 
ASCAP propose to modify the royalty rates set forth in Sec.  381.5. The 
rates proposed in the ASCAP/ACE and BMI/ACE submissions reflect a 
change in both the fees and the fee structure, going from a flat rate 
to tiered rates primarily based on the number of full-time students 
enrolled in the educational entity operating the station, with an 
exception that looks to the college radio station's authorized 
effective radiation power (``ERP'') as set forth in its current FCC 
license. ASCAP/ACE Joint Proposal at 4; BMI/ACE Joint Proposal at 4. 
Moreover, the proposed rates for ASCAP and BMI eliminate the need for 
the historic annual Consumer Price Index adjustments, as the proposed 
rates increase at the rate of two percent per year. Id. at 5.
    The SESAC/ACE submission retains a flat rate which is then 
adjusted, starting in 2014, by the change in the Consumer Price Index 
or two percent, whichever is greater. SESAC/ACE Joint Proposal at 2.\5\
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    \5\ The proposed elimination of the CPI adjustments for ASCAP 
and BMI necessitated a change to Sec.  381.10. However, no proposed 
language was provided with the initial proposals. Consequently, the 
Judges issued an order requesting proposed language to Sec.  381.10, 
and the parties provided the same. See Order Regarding Submission of 
Settlement Proposals, Docket No. 2011-3 CRB NCEB II (February 2, 
2012). See also Joint Submission of American Council on Education, 
the American Society of Composers, Authors and Publishers, Broadcast 
Music, Inc., and SESAC, Inc. (filed March 16, 2012).
---------------------------------------------------------------------------

    Each joint proposal proposes to require that each annual payment of 
the royalty rate be accompanied by a declaration stating the number of 
full-time students enrolled in the educational entity operating the 
station and/or the ERP as specified in the entity's current FCC 
license. See proposed Sec.  381.5(d).

NRBNMLC Joint Proposals

    The joint proposals entered into by NRBNMLC and each of NMPA/HFA, 
ASCAP, BMI, and SESAC propose carrying forward unchanged the current 
provisions set forth in Sec. Sec.  381.1 (except

[[Page 24664]]

to replace ``2008'' with ``2013'' and ``2012'' with ``2017''), 381.2, 
381.9, and 381.11.
    The joint proposal between NMPA/HFA and NRBNMLC stated that the 
rates in Sec.  381.7(b)(4) should remain the same as those currently 
set for 2008-2012, ``subject to the additional provisions'' of 
Sec. Sec.  381.7(b)(3) and (5), since they ``are reasonable'' and ``no 
circumstances exist that would warrant modification of these fees.'' 
NMPA/HFA and NRBNMLC Joint Proposal at 2. The proposal also stated that 
separate negotiations were ongoing between HFA and NMPA and NPR and PBS 
with respect to provisions in Sec.  381.7 other than Sec.  381.7(b)(4). 
Id. at 2-3. When such proposal did not appear to be forthcoming, the 
Judges issued an order requesting in part that such proposal, if 
finalized, be submitted by March 16, 2012, in order to allow for 
publication of all proposed rates and terms in a single document. See 
Order Regarding Submission of Settlement Proposals, Docket No. 2011-2 
CRB NCEB II (February 2, 2012); see also n.5. However, after receiving 
no responsive filings, the Judges issued a subsequent order requiring 
HFA, NMPA, NPR, and PBS to show cause why the provisions to be covered 
by their separate proposal (Sec. Sec.  381.7(b)(1)(i)-(iii), 
381.7(b)(2)(i)-(iv), 381.7(c), 381.7(d), and 381.7(e)) should not be 
removed from Part 381. See Order to Show Cause, Docket No. 2011-2 CRB 
NCEB II (March 28, 2012). In response, HFA, NMPA, NPR and PBS submitted 
their joint proposal covering the provisions specified in the March 28 
order. Specifically, they proposed that the rates set forth in 
Sec. Sec.  381.7(b)(1) and (2) ``be changed to reflect a rate increase 
consistent with the prior percentage increase from the 2003-2007 
license period to the 2008-2012 license period'' as such increase ``is 
fair and reasonable.'' Response to Order to Show Cause, and Joint 
Proposal of the Harry Fox Agency, Inc., National Music Publishers' 
Association, Inc., National Public Radio, Inc. and Public Broadcasting 
Service, at 3 (April 4, 2012). These parties proposed no changes to 
Sec. Sec.  381.7(c)-(e) and requested that these provisions be carried 
forward as is because they ``are fair and reasonable in that they 
facilitate efficient, consistent and accurate payments of royalties for 
uses governed by [Sec.  ] 381.7.'' Id. at 4.
    Each of the joint proposals between NRBNMLC and ASCAP, BMI, and 
SESAC propose modifications to Sec.  381.6. Under the proposals, 
alternatives have been provided to a Religious/Community Noncommercial 
Radio Station in determining its Population Count which is the basis of 
the rates paid. In addition, the proposals include a new reduced rate 
for a Religious/Community Noncommercial Radio Station using a talk 
format necessitating a number of newly defined terms. Finally, the 
proposals address a Religious/Community Noncommercial Radio Station's 
broadcast of in-band, on-channel, digital radio (``HD Radio'') signals.

Other Provisions

    Finally, the Judges have removed and reserved two sections for 
which no proposals were submitted. Specifically, Sec.  381.4, which 
governed performance of musical compositions by PBS, NPR and other 
public broadcasting entities engaged in the activities of 17 U.S.C. 
118(c), and Sec.  381.8, which governed the terms and rates of royalty 
payments for the use of published pictorial, graphic, and sculptural 
works in PBS-distributed programs as well as in other than PBS-
distributed programs, have been removed and their section numbers 
reserved.
    As noted above, the public may comment and object to any or all of 
the proposed regulations contained in this notice. Such comments and 
objections must be submitted no later than May 25, 2012.

List of Subjects in 37 CFR Part 381

    Copyright, Music, Radio, Television, Rates.

Proposed Regulations

    For the reasons set forth in the preamble, the Copyright Royalty 
Judges propose to amend Part 381 to Chapter III of title 37 of the Code 
of Federal Regulations to read as follows:

PART 381--USE OF CERTAIN COPYRIGHTED WORKS IN CONNECTION WITH 
NONCOMMERCIAL EDUCATIONAL BROADCASTING

    1. The authority citation for part 381 continues to read as 
follows:

    Authority:  17 U.S.C. 118, 801(b)(1) and 803.


Sec.  381.1  [Amended]

    2. Section 381.1 is amended by removing ``2008'' and adding 
``2013'' in its place and by removing ``2012'' and adding ``2017'' in 
its place.


Sec.  381.4  [Removed and Reserved]

    3. Remove and reserve Sec.  381.4.
    4. Section 381.5 is amended by revising paragraphs (c) and (d) to 
read as follows:


Sec.  381.5  Performance of musical compositions by public broadcasting 
entities licensed to colleges and universities.

* * * * *
    (c) Royalty rate. A public broadcasting entity within the scope of 
this section may perform published nondramatic musical compositions 
subject to the following schedule of royalty rates:
    (1) For all such compositions in the repertory of ASCAP, the 
royalty rates shall be as follows:
    (i)

----------------------------------------------------------------------------------------------------------------
                                        Number of full-time
                                             students             2013      2014      2015      2016      2017
----------------------------------------------------------------------------------------------------------------
Level 1...........................  <1,000....................      $319      $325      $332      $339      $345
Level 2...........................  1,000-4,999...............       369       376       384       392       399
Level 3...........................  5,000-9,999...............       505       515       525       535       546
Level 4...........................  10,000-19,999.............       655       668       681       695       708
Level 5...........................  20,000 +..................       822       838       855       872       890
----------------------------------------------------------------------------------------------------------------

     (ii) Level 1 rates as set forth in paragraph (c)(1)(i) of this 
section, shall also apply to College Radio Stations with an authorized 
effective radiated power (ERP), as that term is defined in 47 CFR 
73.310(a), of 100 Watts or less, as specified on its current FCC 
license, regardless of the size of the student population.
    (2) For all such compositions in the repertory of BMI, the royalty 
rates shall be as follows:
    (i)

[[Page 24665]]



----------------------------------------------------------------------------------------------------------------
                                        Number of full-time
                                             students             2013      2014      2015      2016      2017
----------------------------------------------------------------------------------------------------------------
Level 1...........................  <1,000....................      $319      $325      $332      $339      $345
Level 2...........................  1,000-4,999...............       369       376       384       392       399
Level 3...........................  5,000-9,999...............       505       515       525       535       546
Level 4...........................  10,000-19,999.............       655       668       681       695       708
Level 5...........................  20,000 +..................       822       838       855       872       890
----------------------------------------------------------------------------------------------------------------

     (ii) Level 1 rates, as set forth in paragraph (c)(2)(i) of this 
section, shall also apply to College Radio Stations with an authorized 
effective radiated power (ERP), as that term is defined in 47 CFR 
73.310(a), of 100 Watts or less, as specified on its current FCC 
license, regardless of the size of the student population.
    (3) For all such compositions in the repertory of SESAC, the 
royalty rates shall be as follows:
    (i) 2013: $140.00 per station;
    (ii) 2014: $140 per station, subject to an annual cost of living 
adjustment in accordance with paragraph (c)(3)(vi) of this section;
    (iii) 2015: The 2014 rate, subject to an annual cost of living 
adjustment in accordance with paragraph (c)(3)(vi) of this section;
    (iv) 2016: The 2015 rate, subject to an annual cost of living 
adjustment in accordance with paragraph (c)(3)(vi) of this section;
    (v) 2017: The 2016 rate, subject to an annual cost of living 
adjustment in accordance with paragraph (c)(3)(vi) of this section.
    (vi) Such cost of living adjustment to be made in accordance with 
the greater of
    (A) The change, if any, in the Consumer Price Index (all consumers, 
all items) published by the U.S. Department of Labor, Bureau of Labor 
Statistics during the twelve (12) month period from the most recent 
Index, published before December 1 of the year immediately prior to the 
applicable year, or
    (B) Two percent (2%).
    (4) For the performance of any other such compositions: $1.
    (d) Payment of royalty rate. The public broadcasting entity shall 
pay the required royalty rate to ASCAP, BMI and SESAC not later than 
January 31 of each year. Each annual payment to ASCAP, BMI and SESAC 
shall be accompanied by a signed declaration stating the number of 
full-time students enrolled in the educational entity operating the 
station and/or the effective radiated power (ERP) as specified in its 
current FCC license. An exact copy of such declaration shall be 
furnished to each of ASCAP, BMI and SESAC.
* * * * *
    5. Section 381.6 is amended as follows:
    a. By redesignating paragraphs (b) through (e) as paragraphs (c) 
through (f), respectively;
    b. By adding a new paragraph (b);
    c. By revising newly redesignated paragraph (d);
    d. By revising newly redesignated paragraph (e); and
    e. By removing current paragraph (f).

    The additions and revisions to Sec.  381.6 read as follows:


Sec.  381.6  Performance of musical compositions by other public 
broadcasting entities.

* * * * *
    (b) Definitions. As used in paragraphs (d) and (e) of this section, 
the following terms and their variant forms mean the following:
    (1) Feature Music shall mean any performance of a musical work, 
whether live or recorded, that is the principal focus of audience 
attention. Feature Music does not include bridge, background, or 
underscore music, themes or signatures, interstitial music between 
programs such as in public service announcements or program sponsorship 
identifications, brief musical transitions in and out of program 
segments (not to exceed 60 seconds in duration), incidental 
performances of music during broadcasts of public, religious, or sports 
events, or brief performances during news, talk, religious, and sports 
programming of no more than 30 seconds in duration.
    (2) Population Count. The combination of:
    (i) The number of persons estimated to reside within a station's 
Predicted 60 dBu Contour, based on the most recent available census 
data; and
    (ii) The nonduplicative number of persons estimated to reside in 
the Predicted 60 dBu Contour of any Translator or Booster Station that 
extends a public broadcasting entity's signal beyond the contours of a 
station's Predicted 60 dBu Contour.
    (iii) In determining Population Count, a station or a Translator or 
Booster Station may use and report the total population data, from a 
research company generally recognized in the broadcasting industry, for 
the radio market within which the station's community license is 
located.
    (3) Predicted 60 dBu Contour shall be calculated as set forth in 47 
CFR 73.313.
    (4) Talk Format Station shall mean a noncommercial radio station:
    (i) Whose program content primarily consists of talk shows, news 
programs, sports, community affairs or religious sermons (or other non-
music-oriented programming);
    (ii) That performs Feature Music in less than 20% of its 
programming annually; and
    (iii) That performs music-oriented programming for no more than 
four (4) programming hours during the hours from 6 a.m. to 10 p.m. each 
weekday, with no two (2) hours of such programming occurring 
consecutively, with the exception of up to five (5) weekdays during the 
year.
    (5) Weekday shall mean the 24-hour period starting at 12 a.m. 
through 11:59 p.m. on Mondays, Tuesdays, Wednesdays, Thursdays and 
Fridays occurring between January 1 of a given year up to and including 
Thanksgiving day of that year.
    (6) Translator Station and Booster Station shall have the same 
meanings as set forth in 47 CFR 74.1201.
* * * * *
    (d) Royalty rate. A public broadcasting entity within the scope of 
this section may perform published nondramatic musical compositions 
subject to the following schedule of royalty rates:
    (1) For all such compositions in the repertory of ASCAP, the 
royalty rates shall be as follows:
    (i) Music Fees (Stations with 20% or more programming containing 
Feature Music):

----------------------------------------------------------------------------------------------------------------
                                         Population count         2013      2014      2015      2016      2017
----------------------------------------------------------------------------------------------------------------
Level 1...........................  0-249,999.................      $631      $644      $657      $670      $683
Level 2...........................  250,000-499,999...........     1,126     1,149     1,171     1,195     1,219

[[Page 24666]]

 
Level 3...........................  500,000-999,999...........     1,688     1,722     1,756     1,791     1,827
Level 4...........................  1,000,000-1,499,999.......     2,251     2,296     2,342     2,389     2,437
Level 5...........................  1,500,000-1,999,999.......     2,814     2,870     2,928     2,986     3,046
Level 6...........................  2,000,000-2,499,999.......     3,377     3,445     3,513     3,584     3,655
Level 7...........................  2,500,000-2,999,999.......     3,939     4,018     4,098     4,180     4,264
Level 8...........................  3,000,000 and above.......     5,628     5,741     5,855     5,972     6,092
----------------------------------------------------------------------------------------------------------------

     (ii) Talk Format Station Fees (Stations with <20% Feature Music 
programming):

----------------------------------------------------------------------------------------------------------------
                                         Population count         2013      2014      2015      2016      2017
----------------------------------------------------------------------------------------------------------------
Level 1...........................  0-249,999.................      $631      $644      $657      $670      $683
Level 2...........................  250,000-499,999...........       631       644       657       670       683
Level 3...........................  500,000-999,999...........       631       644       657       670       683
Level 4...........................  1,000,000-1,499,999.......       788       804       820       836       853
Level 5...........................  1,500,000-1,999,999.......       985     1,005     1,025     1,045     1,066
Level 6...........................  2,000,000-2,499,999.......     1,182     1,206     1,230     1,254     1,279
Level 7...........................  2,500,000-2,999,999.......     1,379     1,406     1,434     1,463     1,492
Level 8...........................  3,000,000 and above.......     1,970     2,009     2,049     2,090     2,132
----------------------------------------------------------------------------------------------------------------

     (2) For all such compositions in the repertory of BMI, the royalty 
rates shall be as follows:
    (i) Music Fees (Stations with 20% or more programming containing 
Feature Music):

----------------------------------------------------------------------------------------------------------------
                                         Population count         2013      2014      2015      2016      2017
----------------------------------------------------------------------------------------------------------------
Level 1...........................  0-249,999.................      $631      $644      $657      $670      $683
Level 2...........................  250,000-499,999...........     1,126     1,149     1,171     1,195     1,219
Level 3...........................  500,000-999,999...........     1,688     1,722     1,756     1,791     1,827
Level 4...........................  1,000,000-1,499,999.......     2,251     2,296     2,342     2,389     2,437
Level 5...........................  1,500,000-1,999,999.......     2,814     2,870     2,928     2,986     3,046
Level 6...........................  2,000,000-2,499,999.......     3,377     3,445     3,513     3,584     3,655
Level 7...........................  2,500,000-2,999,999.......     3,939     4,018     4,098     4,180     4,264
Level 8...........................  3,000,000 and above.......     5,628     5,741     5,855     5,972     6,092
----------------------------------------------------------------------------------------------------------------

     (ii) Talk Format Station Fees (Stations with <20% Feature Music 
programming):

----------------------------------------------------------------------------------------------------------------
                                         Population count         2013      2014      2015      2016      2017
----------------------------------------------------------------------------------------------------------------
Level 1...........................  0-249,999.................      $631      $644      $657      $670      $683
Level 2...........................  250,000-499,999...........       631       644       657       670       683
Level 3...........................  500,000-999,999...........       631       644       657       670       683
Level 4...........................  1,000,000-1,499,999.......       788       804       820       836       853
Level 5...........................  1,500,000-1,999,999.......       985     1,005     1,025     1,045     1,066
Level 6...........................  2,000,000-2,499,999.......     1,182     1,206     1,230     1,254     1,279
Level 7...........................  2,500,000-2,999,999.......     1,379     1,406     1,434     1,463     1,492
Level 8...........................  3,000,000 and above.......     1,970     2,009     2,049     2,090     2,132
----------------------------------------------------------------------------------------------------------------

     (3) For all such compositions in the repertory of SESAC, the 
royalty rates shall be as follows:
    (i) Music fees for stations with >=20% Feature Music programming:

----------------------------------------------------------------------------------------------------------------
                                         Population count         2013      2014      2015      2016      2017
----------------------------------------------------------------------------------------------------------------
Level 1...........................  0-249,999.................      $138      $140      $143      $146      $149
Level 2...........................  250,000-499,999...........       230       234       239       244       248
Level 3...........................  500,000-999,999...........       345       352       359       366       373
Level 4...........................  1,000,000-1,499,999.......       459       468       478       487       497
Level 5...........................  1,500,000-1,999,999.......       574       586       597       609       622
Level 6...........................  2,000,000-2,499,999.......       689       702       716       731       745
Level 7...........................  2,500,000-2,999,999.......       804       820       836       853       870

[[Page 24667]]

 
Level 8...........................  3,000,000 and above.......     1,149     1,171     1,195     1,219     1,243
----------------------------------------------------------------------------------------------------------------

     (ii) Talk fees for stations with <20% Feature Music programming:

----------------------------------------------------------------------------------------------------------------
                                         Population count         2013      2014      2015      2016      2017
----------------------------------------------------------------------------------------------------------------
Level 1...........................  0-249,999.................      $138      $140      $143      $146      $149
Level 2...........................  250,000-499,999...........       138       140       143       146       149
Level 3...........................  500,000-999,999...........       138       140       143       146       149
Level 4...........................  1,000,000-1,499,999.......       161       164       167       170       174
Level 5...........................  1,500,000-1,999,999.......       201       205       209       213       218
Level 6...........................  2,000,000-2,499,999.......       241       246       251       256       261
Level 7...........................  2,500,000-2,999,999.......       281       287       293       299       305
Level 8...........................  3,000,000 and above.......       402       410       418       427       435
----------------------------------------------------------------------------------------------------------------

     (4) For the performance of any other such compositions, in 2013 
through 2017, $1.
    (e) Payment of royalty rate. The public broadcasting entity shall 
pay the required royalty rate to ASCAP, BMI and SESAC not later than 
January 31 of each year. Each annual payment shall be accompanied by a 
signed declaration stating the Population Count of the public 
broadcasting entity and the source for such Population Count. An exact 
copy of such declaration shall be furnished to each of ASCAP, BMI and 
SESAC. Upon prior written notice thereof from ASCAP, BMI and SESAC, a 
public broadcasting entity shall make its books and records relating to 
its Population Count available for inspection. In the event that a 
public broadcasting entity wishes to be deemed a Talk Format Station, 
then such entity shall provide a signed declaration stating that 
Feature Music is performed in less than 20% of its annual programming 
and that it complies with the caps set forth in paragraph (b)(4) of 
this section. An exact copy of such declaration shall be furnished to 
each of ASCAP, BMI and SESAC. Upon prior written notice thereof from 
ASCAP, BMI or SESAC, a public broadcasting entity shall make its 
program schedule or other documentation supporting its eligibility as a 
Talk Format Station available for inspection.
* * * * *
    6. Section 381.7 is amended as follows:
    a. By revising paragraphs (b)(1)(i)(A)-(D) and (b)(1)(ii)(A)-(D);
    b. By revising paragraphs (b)(2)(i)-(iv);
    c. In paragraph (b)(4), by removing ``2008-2012'' and adding 
``2013-2017'' in its place; and
    d. In paragraph (b)(5), by removing ``2012'' and adding ``2017'' in 
its place.
    The revisions to Sec.  381.7 read as follows:


Sec.  381.7  Recording rights, rates and terms.

* * * * *
    (b) * * *
    (1)(i) * * *

 
                                                              2013-2017
 
(A) Feature................................................      $116.37
(B) Concert feature (per minute)...........................       $34.95
(C) Background.............................................       $58.81
(D) Theme:
  (1) Single program or first series program...............       $58.81
  (2) Other series program.................................       $23.88
 

    (ii) * * *

 
                                                              2013-2017
 
(A) Feature................................................        $9.62
(B) Concert feature (per minute)...........................        $2.53
(C) Background.............................................        $4.18
(D) Theme:
  (1) Single program or first series program...............        $4.18
  (2) Other series program.................................        $1.66
 

* * * * *
    (2) * * *

 
                                                              2013-2017
 
(i) Feature................................................       $12.60
(ii) Concert feature (per minute)..........................       $18.49
(iii) Background...........................................        $6.31
(iv) Theme:
  (A) Single program or first series program...............        $6.31
  (B) Other series program.................................        $2.52
 

* * * * *


Sec.  381.8  [Removed and Reserved]

    7. Remove and reserve Sec.  381.8.
    8. Section 381.10 is amended as follows:
    a. In paragraph (a), by removing ``2007'' and adding ``2013'' in 
its place in each place it appears and by removing ``2006'' and adding 
``2012'' in its place, and by removing ``On each December 1'' and 
adding ``On or before each December 1'' in its place;
    b. By revising paragraph (b);
    c. In paragraph (c), by adding ``the'' before ``rates'', by 
removing ``381.5'' and adding ``381.5(c)(3)'' in its place, and by 
adding ``(30)'' after ``thirty''.
    The revisions to Sec.  381.10 read as follows:


Sec.  381.10  Cost of living adjustment.

* * * * *
    (b) On the same date of the notices published pursuant to paragraph 
(a) of this section, the Copyright Royalty Judges shall publish in the 
Federal Register a revised schedule of the rates for Sec.  381.5(c)(3), 
the rate to be charged for compositions in the repertory of SESAC, 
which shall adjust the royalty amounts established in a dollar amount 
according to the greater of
    (1) The change in the cost of living determined as provided in 
paragraph (a) of this section, or
    (2) Two percent (2%).
    (3) Such royalty rates shall be fixed at the nearest dollar.
* * * * *

    Dated: April 20, 2012.
Stanley C. Wisniewski,
U.S. Copyright Royalty Judge.
[FR Doc. 2012-9927 Filed 4-24-12; 8:45 am]
BILLING CODE 1410-72-P
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