Determination of Rates and Terms for Making and Distributing Phonorecords (Phonorecords IV), 33601-33603 [2021-12950]
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Federal Register / Vol. 86, No. 120 / Friday, June 25, 2021 / Proposed Rules
Race area is an area described by a
line bound by coordinates provided in
latitude and longitude that outlines the
boundary of a race area within the
regulated area defined by this section.
Spectator means a person or vessel
not registered with the event sponsor as
participants or assigned as official
patrols.
Spectator area is an area described by
a line bound by coordinates provided in
latitude and longitude that outlines the
boundary of a spectator area within the
regulated area defined by this part.
(c) Special local regulations. (1) The
COTP Maryland-National Capital
Region or Event PATCOM may forbid
and control the movement of all vessels
and persons, including event
participants, in the regulated area
described in paragraph (a)(1) of this
section. When hailed or signaled by an
official patrol, a vessel or person in the
regulated area shall immediately
comply with the directions given by the
patrol. Failure to do so may result in the
Coast Guard expelling the person or
vessel from the area, issuing a citation
for failure to comply, or both. The COTP
Maryland-National Capital Region or
Event PATCOM may terminate the
event, or a participant’s operations at
any time the COTP Maryland-National
Capital Region or Event PATCOM
believes it necessary to do so for the
protection of life or property.
(2) Except for participants and vessels
already at berth, a person or vessel
within the regulated area at the start of
enforcement of this section must
immediately depart the regulated area.
(3) A spectator must contact the Event
PATCOM to request permission to
either enter or pass through the
regulated area. The Event PATCOM, and
official patrol vessels enforcing this
regulated area, can be contacted on
marine band radio VHF–FM channel 16
(156.8 MHz) and channel 22A (157.1
MHz). If permission is granted, the
spectator must enter the designated
Spectator Area or pass directly through
the regulated area as instructed by Event
PATCOM. A vessel within the regulated
area must operate at safe speed that
minimizes wake. A spectator vessel
must not loiter within the navigable
channel while within the regulated area.
(4) Only participant vessels and
official patrol vessels are allowed to
enter and remain within the race area.
(5) Only participant vessels and
official patrol vessels are allowed to
enter and transit directly through the
buffer area in order to arrive at or depart
from the race area.
(6) A person or vessel that desires to
transit, moor, or anchor within the
regulated area must obtain authorization
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from the COTP Maryland-National
Capital Region or Event PATCOM. A
person or vessel seeking such
permission can contact the COTP
Maryland-National Capital Region at
telephone number 410–576–2693 or on
Marine Band Radio, VHF–FM channel
16 (156.8 MHz) or the Event PATCOM
on Marine Band Radio, VHF–FM
channel 16 (156.8 MHz).
(7) The Coast Guard will publish a
notice in the Fifth Coast Guard District
Local Notice to Mariners and issue a
marine information broadcast on VHF–
FM marine band radio announcing
specific event dates and times.
(d) Enforcement officials. The Coast
Guard may be assisted with marine
event patrol and enforcement of the
regulated area by other federal, state,
and local agencies.
(e) Enforcement period. This section
will be enforced from 7:30 a.m. to 5 p.m.
on October 2, 2021 and from 7:30 a.m.
to 5 p.m. on October 3, 2021.
Dated: June 15, 2021.
David E. O’Connell,
Captain, U.S. Coast Guard, Captain of the
Port Maryland-National Capital Region.
[FR Doc. 2021–13291 Filed 6–24–21; 8:45 am]
BILLING CODE 9110–04–P
LIBRARY OF CONGRESS
Copyright Royalty Board
37 CFR Part 385
[Docket No. 21–CRB–0001–PR (2023–2027)]
Determination of Rates and Terms for
Making and Distributing Phonorecords
(Phonorecords IV)
Copyright Royalty Board,
Library of Congress.
ACTION: Proposed rule.
AGENCY:
The Copyright Royalty Judges
publish for comment proposed
regulations that set rates and terms
applicable during the period beginning
January 1, 2023, and ending December
31, 2027, for the section 115 statutory
license for making and distributing
phonorecords of nondramatic musical
works.
DATES: Comments and objections, if any,
are due no later than July 26, 2021.
ADDRESSES: You may send comments,
identified by docket number 21–CRB–
0001–PR (2023–2027), online through
eCRB at https://app.crb.gov.
Instructions: To send your comment
through eCRB, if you don’t have a user
account, you will first need to register
for an account and wait for your
registration to be approved. Approval of
SUMMARY:
PO 00000
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33601
user accounts is only available during
business hours. Once you have an
approved account, you can only sign in
and file your comment after setting up
multi-factor authentication, which can
be done at any time of day. All
comments must include the Copyright
Royalty Board name and the docket
number for this proposed rule. All
properly filed comments will appear
without change in eCRB at https://
app.crb.gov, including any personal
information provided.
Docket: For access to the docket to
read background documents or
comments received, go to eCRB at
https://app.crb.gov and perform a case
search for docket 21–CRB–0001–PR
(2023–2027).
FOR FURTHER INFORMATION CONTACT:
Anita Blaine, CRB Program Specialist, at
202–707–7658 or crb@loc.gov.
SUPPLEMENTARY INFORMATION:
Background
Section 115 of the Copyright Act, title
17 of the United States Code, requires a
copyright owner of a nondramatic
musical work to grant a license (also
known as the ‘‘mechanical’’ compulsory
license) to any person who wants to
make and distribute phonorecords of
that work, provided that the copyright
owner has allowed phonorecords of the
work to be produced and distributed,
and that the licensee complies with the
statute and regulations. In addition to
the production or distribution of
physical phonorecords (compact discs,
vinyl, cassette tapes, and the like),
section 115 applies to digital
transmissions of phonorecords,
including permanent digital downloads
and ringtones.
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 115 license. 17
U.S.C. 801(b)(1), 804(b)(4). Accordingly,
the Judges commenced the current
proceeding in January 2021, by
publishing notice of the commencement
and a request that interested parties
submit petitions to participate. See 86
FR 25 (Jan. 5, 2021).
The Judges received petitions to
participate in the current proceeding
from Amazon.com Services LLC, Apple
Inc., Copyright Owners (joint petitioners
Nashville Songwriters Association
International (NSAI) and National
Music Publishers Association (NMPA)),
Google LLC, George Johnson, Joint
Record Company Participants (filed by
Recording Industry Association of
America, Inc. for joint petitioners Sony
Music Entertainment, UMG Recordings,
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Federal Register / Vol. 86, No. 120 / Friday, June 25, 2021 / Proposed Rules
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Inc., and Warner Music Group Corp.),
Pandora Media, LLC, David Powell,
SoundCloud Operations Inc.,1 Spotify
USA Inc., and Brian Zisk.
The Judges gave notice to all
participants of the three-month
negotiation period required by 17 U.S.C.
803(b)(3) and directed that, if the
participants were unable to negotiate a
settlement, they should submit Written
Direct Statements no later than
September 10, 2021. On May 25, 2021,
the Judges received a motion stating that
several participants 2 had reached a
partial settlement regarding the rates
and terms under Section 115 of the
Copyright Act, namely, for physical
phonorecords, permanent downloads,
ringtones, and music bundles for the
2023–2027 rate period and seeking
approval of that partial settlement. See
Motion to Adopt Settlement of Statutory
Royalty Rates and Terms for Subpart B
Configurations, Docket No. 21–CRB–
0001–PR (2023–2027) at 1 (May 25,
2021) (Motion). The movants state that
‘‘the settlement represents the
consensus of buyers and sellers
representing the vast majority of the
market for ‘mechanical’ rights for [the
37 CFR 385] Subpart B
Configurations.’’ 3 Motion at 4.
The settlement proposes that
‘‘Subpart B Configuration Rates and
Terms presently set forth in 37 CFR part
385 subpart B . . . continue to be
applicable to the Record Company
Participants and all other licensees of
‘mechanical’ rights in musical works for
the Subpart B Configurations, for the
rate period covered by the Proceeding,
with only a few minor editorial changes
to the applicable regulations.’’ Motion at
3.
The proposed editorial changes apply
to §§ 385.10 and 385.11 of Subpart B
and to two definitions in Subpart A and
would clarify the regulations. For
example, the definition of Licensed
Activity needs to be changed to remove
the reference to Subpart B because the
term Licensed Activity does not appear
in Subpart B. See 37 CFR 385.2, 385.10–
11; Motion at 6–7 (redline of regulations
with rationale for changes).
Section 801(b)(7)(A) of the Copyright
Act authorizes the Judges to adopt rates
1 SoundCloud Operations Inc. withdrew from the
proceeding on May 21, 2021.
2 The participants who filed the motion are the
‘‘Publisher/Songwriter Participants’’ (NMPA and
NSAI) and the ‘‘Record Company Participants’’
(Sony Music Entertainment, UMG Recordings, Inc.
and Warner Music Group Corp.). Motion at 1.
3 Participants Amazon.com Services LLC, Google
LLC, Pandora Media, LLC, and Spotify USA Inc. do
not object to the settlement, Motion at 4 n.2,
however, the movants state that they understand
that participant George Johnson intends to object to
it. Motion at 4.
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and terms negotiated by ‘‘some or all of
the participants in a proceeding at any
time during the proceeding’’ provided
they are submitted to the Judges for
approval. This section provides that the
Judges shall provide notice and an
opportunity to comment on the
agreement to (1) those that would be
bound by the terms, rates, or other
determination set by the agreement and
(2) participants in the proceeding that
would be bound by the terms, rates, or
other determination set by the
agreement. See section 801(b)(7)(A). The
Judges may decline to adopt the
agreement as a basis for statutory terms
and rates for participants not party to
the agreement if any participant objects
and the Judges conclude that the
agreement does not provide a reasonable
basis for setting statutory terms or rates.
Id.
If the Judges adopt rates and terms
reached pursuant to a negotiated
settlement, those rates and terms are
binding on all copyright owners of
musical works and those using the
musical works in the activities
described in the proposed regulations.
The Judges propose an additional
minor revision to change an outdated
cross reference. They propose to shorten
the cross reference 17 U.S.C.
115(c)(3)(C) and (D) to 17 U.S.C. 115
because the section no longer has a
subsection (c)(3). See 17 U.S.C. 115;
Orrin G. Hatch-Bob Goodlatte Music
Modernization Act, Public Law 115–
264, 132 Stat. 3676, 3679–3684 (Oct. 11,
2018).
The Judges solicit comments on
whether they should adopt the proposed
regulations as statutory rates and terms
relating to the making and distribution
of physical or digital phonorecords of
nondramatic musical works.
Comments and objections regarding
the rates and terms and the minor
revisions must be submitted no later
than July 26, 2021.
List of Subjects in 37 CFR Part 385
Copyright, Phonorecords, Recordings.
Proposed Regulations
For the reasons set forth in the
preamble, the Copyright Royalty Judges
propose to amend 37 CFR part 385 as
follows:
PART 385—RATES AND TERMS FOR
USE OF NONDRAMATIC MUSICAL
WORKS IN THE MAKING AND
DISTRIBUTING OF PHYSICAL AND
DIGITAL PHONORECORDS
1. The authority citation for part 385
continues to read as follows:
■
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Fmt 4702
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Authority: 17 U.S.C. 115, 801(b)(1),
804(b)(4).
Subpart A—Regulations of General
Application
2. In § 385.2 revise the introductory
text of the definition for ‘‘Eligible
Limited Download’’, the definition for
‘‘Licensed Activity’’, and the fourth
sentence for definition ‘‘Sound
Recording Company’’ to read as follows:
■
§ 385.2
Definitions.
*
*
*
*
*
Eligible Limited Download means a
transmission of a sound recording
embodying a musical work to an End
User of a digital phonorecord under 17
U.S.C. 115 that results in a Digital
Phonorecord Delivery of that sound
recording that is only accessible for
listening for— * * *
*
*
*
*
*
Licensed Activity, as the term is used
in subparts C and D of this part, means
delivery of musical works, under
voluntary or statutory license, via
Digital Phonorecord Deliveries in
connection with Interactive Eligible
Streams, Eligible Limited Downloads,
Limited Offerings, mixed Bundles, and
Locker Services.
*
*
*
*
*
Sound Recording Company means a
person or entity that:
*
*
*
*
*
(4) Performs the functions of
marketing and authorizing the
distribution of a sound recording of a
musical work under its own label, under
the authority of a person identified in
paragraphs (1) through (3) of this
section.
*
*
*
*
*
Subpart B—Physical Phonorecord
Deliveries, Permanent Downloads,
Ringtones, and Music Bundles
■
3. Revise § 385.10 to read as follows:
§ 385.10
Scope.
This subpart establishes rates and
terms of royalty payments for making
and distributing physical phonorecords,
Permanent Downloads, Ringtones, and
Music Bundles, in accordance with the
provisions of 17 U.S.C. 115.
■ 4. Revise § 385.11 paragraph (a) to
read as follows:
§ 385.11
Royalty rates.
(a) Physical phonorecords and
Permanent Downloads. For every
physical phonorecord and Permanent
Download the Licensee makes and
distributes or authorizes to be made and
distributed, the royalty rate payable for
each work embodied in the phonorecord
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Federal Register / Vol. 86, No. 120 / Friday, June 25, 2021 / Proposed Rules
or Permanent Download shall be either
9.1 cents or 1.75 cents per minute of
playing time or fraction thereof,
whichever amount is larger.
*
*
*
*
*
Jesse M. Feder,
Chief Copyright Royalty Judge.
[FR Doc. 2021–12950 Filed 6–24–21; 8:45 am]
BILLING CODE 1410–72–P
NATIONAL FOUNDATION ON THE
ARTS AND THE HUMANITIES
National Endowment for the
Humanities
45 CFR Part 1174
RIN 3136–AA36
Implementation of the Program Fraud
Civil Remedies Act of 1986
National Endowment for the
Humanities; National Foundation on the
Arts and the Humanities.
ACTION: Proposed rule with request for
comments.
AGENCY:
The National Endowment for
the Humanities (NEH) is proposing to
issue regulations to implement the
Program Fraud Civil Remedies Act of
1986 (PFCRA). The PFCRA authorizes
certain Federal agencies, including
NEH, to impose civil penalties and
assessments through administrative
adjudication against any person who
makes, submits, or presents a false,
fictitious, or fraudulent claim or written
statement to NEH. The proposed rule
will establish the procedures that NEH
will follow in implementing the PFCRA,
as well as specify the hearing and
appeal rights of persons subject to
penalties and assessments under the
PFCRA.
SUMMARY:
Send comments on or before July
26, 2021.
DATES:
You may send comments by
email to gencounsel@neh.gov.
Instructions: Include ‘‘3136–AA36’’ in
the subject line of the email.
FOR FURTHER INFORMATION CONTACT:
Elizabeth Voyatzis, Deputy General
Counsel, Office of the General Counsel,
National Endowment for the
Humanities, 400 7th Street SW, Room
4060, Washington, DC 20506; (202) 606–
8322; gencounsel@neh.gov.
SUPPLEMENTARY INFORMATION:
ADDRESSES:
1. Background
In October 1986, Congress enacted the
PFCRA, 31 U.S.C. 3801–3812. The
PFCRA established an administrative
remedy against any person who makes,
or causes to be made, a false claim or
written statement to certain Federal
agencies. The PFCRA requires these
Federal agencies to follow certain
procedures in recovering penalties and
assessments against people who file
false claims or statements for which the
liability is $150,000 or less. Initially, the
PFCRA did not apply to NEH. Section
10 of the Inspector General Reform Act
of 2008, Public Law 110–409, 122 Stat.
4314, however, expanded the PFCRA’s
scope to include NEH.
The PFCRA requires each covered
agency to promulgate rules and
regulations necessary to implement its
provisions. Following the PFCRA’s
enactment, the President’s Council on
Integrity and Efficiency requested that
the Department of Health and Human
Services lead an inter-agency task force
to develop model PFCRA regulations.
This action was in keeping with the
Senate Governmental Affairs
Committee’s desire that ‘‘the regulations
would be substantially similar
throughout the government’’ (S. Rep.
No. 99–212, 99th Cong., 1st Sess. 12
(1985)). The Council recommended that
all covered agencies adopt the model
rule.
Accordingly, NEH is implementing
the PFCRA’s provisions through this
proposed rule—which substantively
conforms to the model rule—in order to
establish procedures by which NEH will
seek to recover penalties and
assessments against persons who file, or
cause to have filed, false claims or
statements with NEH for which liability
is $150,000 or less.
2. Maximum Penalty Amount
The PFCRA established a maximum
penalty of $5,000 for each violation. The
Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015 (the 2015 Act), 28 U.S.C. 2461
note, required all Federal agencies to (1)
adjust the penalty amount to 2016
inflation levels with an initial ‘‘catchup’’ inflation adjustment; and (2) make
subsequent annual adjustments for
inflation.1 This proposed rule
incorporates the initial ‘‘catch-up’’
adjustment to 2016 inflation levels and
the annual adjustments for 2017 through
2021, and applies those adjustments
cumulatively to the civil monetary
penalties that the PFCRA imposes.2
A. Initial ‘‘Catch-Up’’ and 2021
Adjustments for Inflation
NEH determined the first ‘‘catch-up’’
adjustment to 2016 inflation levels
using the formula set forth in the 2015
Act. Specifically, NEH calculated the
percent change between the Consumer
Price Index for all Urban Consumers
(CPI–U) for October of the last year in
which Congress adjusted the PFCRA
civil penalties (October 1986) and the
CPI–U for October 2015, and then
rounded to the nearest dollar.
NEH similarly determined each
subsequent annual adjustment by
calculating the percent increase between
the CPI–U for the month of October
preceding the date of the adjustment
and the CPI–U for the October one year
prior to the October immediately
preceding the date of the adjustment.
Table 1, below, details the above
calculations.
TABLE 1—ANNUAL ADJUSTMENTS TO PFCRA CIVIL MONETARY PENALTIES, 2016–2021
Baseline
maximum
penalty
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Effective date
August 1, 2016 ............................................................................................................................
January 15, 2017 .........................................................................................................................
January 15, 2018 .........................................................................................................................
January 15, 2019 .........................................................................................................................
January 15, 2020 .........................................................................................................................
1 For a more detailed explanation of the 2015 Act
and the civil monetary penalty inflation adjustment
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Jkt 253001
calculations that it requires, see NEH’s regulation
implementing the 2015 Act at 85 FR 35566.
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$5,000
10,781
10,957
11,181
11,463
Applicable
multiplier
based on
percent
increase
in CPI–U
3 2.15628
4 1.01636
5 1.02041
6 1.02522
7 1.01764
New baseline
maximum
penalty
$10,781
10,957
11,181
11,463
11,665
2 Table 1 details the annual adjustments to the
PFCRA maximum penalty amount for years 2016–
2021.
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]]>Agencies
[Federal Register Volume 86, Number 120 (Friday, June 25, 2021)]
[Proposed Rules]
[Pages 33601-33603]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-12950]
=======================================================================
-----------------------------------------------------------------------
LIBRARY OF CONGRESS
Copyright Royalty Board
37 CFR Part 385
[Docket No. 21-CRB-0001-PR (2023-2027)]
Determination of Rates and Terms for Making and Distributing
Phonorecords (Phonorecords IV)
AGENCY: Copyright Royalty Board, Library of Congress.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: The Copyright Royalty Judges publish for comment proposed
regulations that set rates and terms applicable during the period
beginning January 1, 2023, and ending December 31, 2027, for the
section 115 statutory license for making and distributing phonorecords
of nondramatic musical works.
DATES: Comments and objections, if any, are due no later than July 26,
2021.
ADDRESSES: You may send comments, identified by docket number 21-CRB-
0001-PR (2023-2027), online through eCRB at https://app.crb.gov.
Instructions: To send your comment through eCRB, if you don't have
a user account, you will first need to register for an account and wait
for your registration to be approved. Approval of user accounts is only
available during business hours. Once you have an approved account, you
can only sign in and file your comment after setting up multi-factor
authentication, which can be done at any time of day. All comments must
include the Copyright Royalty Board name and the docket number for this
proposed rule. All properly filed comments will appear without change
in eCRB at https://app.crb.gov, including any personal information
provided.
Docket: For access to the docket to read background documents or
comments received, go to eCRB at https://app.crb.gov and perform a case
search for docket 21-CRB-0001-PR (2023-2027).
FOR FURTHER INFORMATION CONTACT: Anita Blaine, CRB Program Specialist,
at 202-707-7658 or [email protected].
SUPPLEMENTARY INFORMATION:
Background
Section 115 of the Copyright Act, title 17 of the United States
Code, requires a copyright owner of a nondramatic musical work to grant
a license (also known as the ``mechanical'' compulsory license) to any
person who wants to make and distribute phonorecords of that work,
provided that the copyright owner has allowed phonorecords of the work
to be produced and distributed, and that the licensee complies with the
statute and regulations. In addition to the production or distribution
of physical phonorecords (compact discs, vinyl, cassette tapes, and the
like), section 115 applies to digital transmissions of phonorecords,
including permanent digital downloads and ringtones.
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 115 license. 17 U.S.C. 801(b)(1),
804(b)(4). Accordingly, the Judges commenced the current proceeding in
January 2021, by publishing notice of the commencement and a request
that interested parties submit petitions to participate. See 86 FR 25
(Jan. 5, 2021).
The Judges received petitions to participate in the current
proceeding from Amazon.com Services LLC, Apple Inc., Copyright Owners
(joint petitioners Nashville Songwriters Association International
(NSAI) and National Music Publishers Association (NMPA)), Google LLC,
George Johnson, Joint Record Company Participants (filed by Recording
Industry Association of America, Inc. for joint petitioners Sony Music
Entertainment, UMG Recordings,
[[Page 33602]]
Inc., and Warner Music Group Corp.), Pandora Media, LLC, David Powell,
SoundCloud Operations Inc.,\1\ Spotify USA Inc., and Brian Zisk.
---------------------------------------------------------------------------
\1\ SoundCloud Operations Inc. withdrew from the proceeding on
May 21, 2021.
---------------------------------------------------------------------------
The Judges gave notice to all participants of the three-month
negotiation period required by 17 U.S.C. 803(b)(3) and directed that,
if the participants were unable to negotiate a settlement, they should
submit Written Direct Statements no later than September 10, 2021. On
May 25, 2021, the Judges received a motion stating that several
participants \2\ had reached a partial settlement regarding the rates
and terms under Section 115 of the Copyright Act, namely, for physical
phonorecords, permanent downloads, ringtones, and music bundles for the
2023-2027 rate period and seeking approval of that partial settlement.
See Motion to Adopt Settlement of Statutory Royalty Rates and Terms for
Subpart B Configurations, Docket No. 21-CRB-0001-PR (2023-2027) at 1
(May 25, 2021) (Motion). The movants state that ``the settlement
represents the consensus of buyers and sellers representing the vast
majority of the market for `mechanical' rights for [the 37 CFR 385]
Subpart B Configurations.'' \3\ Motion at 4.
---------------------------------------------------------------------------
\2\ The participants who filed the motion are the ``Publisher/
Songwriter Participants'' (NMPA and NSAI) and the ``Record Company
Participants'' (Sony Music Entertainment, UMG Recordings, Inc. and
Warner Music Group Corp.). Motion at 1.
\3\ Participants Amazon.com Services LLC, Google LLC, Pandora
Media, LLC, and Spotify USA Inc. do not object to the settlement,
Motion at 4 n.2, however, the movants state that they understand
that participant George Johnson intends to object to it. Motion at
4.
---------------------------------------------------------------------------
The settlement proposes that ``Subpart B Configuration Rates and
Terms presently set forth in 37 CFR part 385 subpart B . . . continue
to be applicable to the Record Company Participants and all other
licensees of `mechanical' rights in musical works for the Subpart B
Configurations, for the rate period covered by the Proceeding, with
only a few minor editorial changes to the applicable regulations.''
Motion at 3.
The proposed editorial changes apply to Sec. Sec. 385.10 and
385.11 of Subpart B and to two definitions in Subpart A and would
clarify the regulations. For example, the definition of Licensed
Activity needs to be changed to remove the reference to Subpart B
because the term Licensed Activity does not appear in Subpart B. See 37
CFR 385.2, 385.10-11; Motion at 6-7 (redline of regulations with
rationale for changes).
Section 801(b)(7)(A) of the Copyright Act authorizes the Judges to
adopt rates and terms negotiated by ``some or all of the participants
in a proceeding at any time during the proceeding'' provided they are
submitted to the Judges for approval. This section provides that the
Judges shall provide notice and an opportunity to comment on the
agreement to (1) those that would be bound by the terms, rates, or
other determination set by the agreement and (2) participants in the
proceeding that would be bound by the terms, rates, or other
determination set by the agreement. See section 801(b)(7)(A). The
Judges may decline to adopt the agreement as a basis for statutory
terms and rates for participants not party to the agreement if any
participant objects and the Judges conclude that the agreement does not
provide a reasonable basis for setting statutory terms or rates. Id.
If the Judges adopt rates and terms reached pursuant to a
negotiated settlement, those rates and terms are binding on all
copyright owners of musical works and those using the musical works in
the activities described in the proposed regulations.
The Judges propose an additional minor revision to change an
outdated cross reference. They propose to shorten the cross reference
17 U.S.C. 115(c)(3)(C) and (D) to 17 U.S.C. 115 because the section no
longer has a subsection (c)(3). See 17 U.S.C. 115; Orrin G. Hatch-Bob
Goodlatte Music Modernization Act, Public Law 115-264, 132 Stat. 3676,
3679-3684 (Oct. 11, 2018).
The Judges solicit comments on whether they should adopt the
proposed regulations as statutory rates and terms relating to the
making and distribution of physical or digital phonorecords of
nondramatic musical works.
Comments and objections regarding the rates and terms and the minor
revisions must be submitted no later than July 26, 2021.
List of Subjects in 37 CFR Part 385
Copyright, Phonorecords, Recordings.
Proposed Regulations
For the reasons set forth in the preamble, the Copyright Royalty
Judges propose to amend 37 CFR part 385 as follows:
PART 385--RATES AND TERMS FOR USE OF NONDRAMATIC MUSICAL WORKS IN
THE MAKING AND DISTRIBUTING OF PHYSICAL AND DIGITAL PHONORECORDS
0
1. The authority citation for part 385 continues to read as follows:
Authority: 17 U.S.C. 115, 801(b)(1), 804(b)(4).
Subpart A--Regulations of General Application
0
2. In Sec. 385.2 revise the introductory text of the definition for
``Eligible Limited Download'', the definition for ``Licensed
Activity'', and the fourth sentence for definition ``Sound Recording
Company'' to read as follows:
Sec. 385.2 Definitions.
* * * * *
Eligible Limited Download means a transmission of a sound recording
embodying a musical work to an End User of a digital phonorecord under
17 U.S.C. 115 that results in a Digital Phonorecord Delivery of that
sound recording that is only accessible for listening for-- * * *
* * * * *
Licensed Activity, as the term is used in subparts C and D of this
part, means delivery of musical works, under voluntary or statutory
license, via Digital Phonorecord Deliveries in connection with
Interactive Eligible Streams, Eligible Limited Downloads, Limited
Offerings, mixed Bundles, and Locker Services.
* * * * *
Sound Recording Company means a person or entity that:
* * * * *
(4) Performs the functions of marketing and authorizing the
distribution of a sound recording of a musical work under its own
label, under the authority of a person identified in paragraphs (1)
through (3) of this section.
* * * * *
Subpart B--Physical Phonorecord Deliveries, Permanent Downloads,
Ringtones, and Music Bundles
0
3. Revise Sec. 385.10 to read as follows:
Sec. 385.10 Scope.
This subpart establishes rates and terms of royalty payments for
making and distributing physical phonorecords, Permanent Downloads,
Ringtones, and Music Bundles, in accordance with the provisions of 17
U.S.C. 115.
0
4. Revise Sec. 385.11 paragraph (a) to read as follows:
Sec. 385.11 Royalty rates.
(a) Physical phonorecords and Permanent Downloads. For every
physical phonorecord and Permanent Download the Licensee makes and
distributes or authorizes to be made and distributed, the royalty rate
payable for each work embodied in the phonorecord
[[Page 33603]]
or Permanent Download shall be either 9.1 cents or 1.75 cents per
minute of playing time or fraction thereof, whichever amount is larger.
* * * * *
Jesse M. Feder,
Chief Copyright Royalty Judge.
[FR Doc. 2021-12950 Filed 6-24-21; 8:45 am]
BILLING CODE 1410-72-P
