Rule2023-22179
Determination of Adjustment to Administrative Assessment to Fund Mechanical Licensing Collective
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
October 5, 2023
Effective
October 5, 2023
Issuing agencies
Library of CongressCopyright Royalty Board
Abstract
The Copyright Royalty Judges publish final regulations that adjust the amounts and terms of the Administrative Assessment To fund the Mechanical Licensing Collective.
Full Text
<html>
<head>
<title>Federal Register, Volume 88 Issue 192 (Thursday, October 5, 2023)</title>
</head>
<body><pre>
[Federal Register Volume 88, Number 192 (Thursday, October 5, 2023)]
[Rules and Regulations]
[Pages 69038-69039]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-22179]
=======================================================================
-----------------------------------------------------------------------
LIBRARY OF CONGRESS
Copyright Royalty Board
37 CFR Part 390
[Docket No. 23-CRB-0007-AA]
Determination of Adjustment to Administrative Assessment to Fund
Mechanical Licensing Collective
AGENCY: Copyright Royalty Board, Library of Congress.
ACTION: Final rule; adoption of voluntary agreement.
-----------------------------------------------------------------------
SUMMARY: The Copyright Royalty Judges publish final regulations that
adjust the amounts and terms of the Administrative Assessment To fund
the Mechanical Licensing Collective.
DATES:
Effective date: October 5, 2023.
Applicability date: These rates and terms are applicable starting
January 1, 2023.
ADDRESSES: Docket: For access to the docket to read background
documents go to eCRB, the Copyright Royalty Board's electronic filing
and case management system, at <a href="https://app.crb.gov/">https://app.crb.gov/</a>, and search for
docket number 23-CRB-0007-AA.
FOR FURTHER INFORMATION CONTACT: Anita Brown, (202) 707-7658,
<a href="/cdn-cgi/l/email-protection#d1b2a3b391bdbeb2ffb6bea7"><span class="__cf_email__" data-cfemail="bbd8c9d9fbd7d4d895dcd4cd">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: On May 31, 2023, the Mechanical Licensing
Collective (MLC) and the Digital Licensee Coordinator (DLC) filed a
Joint Petition to Commence Proceeding to Adjust Administrative
Assessment by Adoption of a Voluntary Agreement (Petition) and a Joint
Motion to Adopt Voluntary Agreement and Proposed Regulations (Voluntary
Agreement). By notice published in the Federal Register the Copyright
Royalty Judges (Judges) commenced the captioned proceeding to determine
an adjustment to the administrative assessment that digital music
providers and any significant nonblanket licensees must pay to fund the
operations of the Mechanical Licensing Collective. 88 FR 42396 (June
30, 2023) (Notice of Commencement). The Notice of Commencement included
a request for petitions to participate and a schedule for submissions
and proceedings.
Only two parties filed Petitions to Participate: the Mechanical
Licensing Collective and the Digital Licensee Coordinator;
participation in this proceeding was required by the two Petitioners.
The Judges gave notice of the identity of petitioners as required by 37
CFR 355.2(f) and, in light of the
[[Page 69039]]
Voluntary Agreement, suspended the case schedule. See Notice of
Identity of Petitioners and Case Scheduling Order (July 18, 2023).
Section 115(d)(7)(D)(v) of the Copyright Act authorizes the Judges
to approve and adopt a negotiated agreement that has been agreed to by
the Mechanical Licensing Collective and the Digital Licensee
Coordinator in lieu of a determination of the administrative
assessment. An administrative assessment adopted under sec.
115(d)(7)(D)(v) ``shall apply to all digital music providers and
significant nonblanket licensees engaged in covered activities during
the period the administrative assessment is in effect.'' Id.
However, the Judges, in their discretion, may reject a proposed
settlement for good cause shown. 17 U.S.C. 115(d)(7)(D)(v) and 37 CFR
355.6(d). Section 355.4(c)(4) of 37 CFR establishes a process for non-
settling participants to comment on a proposed settlement and for the
settling participants to respond. Because there were no non-settling
participants in the instant proceeding, the proposed settlement was
unopposed. Moreover, the participants explained to the Judges'
satisfaction how the Proposed Regulations comply with the provisions of
the Copyright Act. See generally Voluntary Agreement. The Judges,
finding no cause to reject the proposed settlement embodied in the
Voluntary Agreement, hereby adopt it, and publish these final
regulations implementing the settlement.
List of Subjects in 37 CFR Part 390
Copyright, Licensing and registration, Music, Phonorecords,
Recordings, Royalties.
Final Regulations
For the reasons set forth in the preamble, the Copyright Royalty
Judges amend 37 CFR part 390 as follows:
PART 390--AMOUNTS AND TERMS FOR ADMINISTRATIVE ASSESSMENTS TO FUND
MECHANICAL LICENSING COLLECTIVE
0
1. The authority citation for part 390 continues to read as follows:
Authority: 17 U.S.C. 115, 801(b).
Sec. 390.1 [Amended]
0
2. Amend Sec. 390.1 as follows:
0
a. In the definition of ``Annual Assessment'' remove ``2021'' and add
in its place ``2023''.
0
b. Remove the definition of ``Certified Minimum Fee Disclosure''.
0
3. Amend Sec. 390.2 by revising paragraphs (a), (b), and (c)(1)
introductory text to read as follows:
Sec. 390.2 Amount of assessments.
(a) 2023 Annual Assessment. The Annual Assessment for the calendar
year 2023 shall be in the amount of $32,900,000.
(b) 2024 Annual Assessment. The Annual Assessment for the calendar
year 2024 shall be in the amount of $39,050,000.
(c) * * * (1) For the calendar year 2025 and all subsequent years,
the amount of the Annual Assessment will be automatically adjusted by
increasing the amount of the Annual Assessment of the preceding
calendar year by the lesser of:
* * * * *
0
4. Amend Sec. 390.3 by:
0
a. In paragraph (b);
0
i. Removing ``2021'' and adding in its place ``2024'';
0
ii. Removing ``2019'' and adding in its place ``2022''; and
0
iii. Removing ``2020'' and adding in its place ``2023''.
0
b. Remove paragraph (c) and redesignate paragraphs (d) and (e) as
paragraphs (c) and (d).
0
c. Revise newly redesignated paragraph (c) introductory text.
The revision reads as follows:
Sec. 390.3 Annual minimum fees.
* * * * *
(c) Calculation by the MLC. The MLC will calculate each Licensee's
annual minimum fee based on usage reporting received from Licensees
pursuant to 17 U.S.C. 115(d)(4). The MLC shall send invoices for the
appropriate annual minimum fee to each Licensee. Licensees shall pay
the annual minimum fee invoices from the MLC by the later of:
* * * * *
0
5. Amend Sec. 390.4 as follows:
0
a. In paragraph (b) remove the words ``, except that the calculation
period for the Quarterly Allocation for the first and second quarters
of 2021 shall be the same as for the annual minimum fee for the 2021
Annual Assessment, and shall be calculated based upon the information
provided in the Certified Minimum Fee Disclosures, as required by this
part.''
0
b. Remove paragraph (c)(2)(i)(D) and redesignate paragraphs
(c)(2)(i)(E) and (F) as (c)(2)(i)(D) and (E).
0
c. Revise paragraph (h).
The revision reads as follows:
Sec. 390.4 Annual Assessment allocation and payment.
* * * * *
(h) 2023 Annual Assessment allocation and payment. The 2023 Annual
Assessment shall be paid in two separate processes:
(1) The MLC will collect from Licensees the amount of $30,235,650
pursuant to the standard procedures outlined in the other provisions of
this part for collection of the 2023 Annual Assessment, including the
collection of Annual Minimum Fees and Quarterly Allocations.
(2) The MLC will collect from Allocated Licensees the amount of
$2,664,350 through a separately invoiced, one-time collection, with no
minimum fees applied. The amount shall be divided into two equal parts
and allocated among Licensees using the formulas set forth in
paragraphs (a)(1) and (a)(2) of this section. The calculation period
shall be the first three months of 2023. The MLC may invoice for this
collection at any time, with payment to be due no later than 45 days
after receipt of the invoice from the MLC.
Dated: September 25, 2023.
David P. Shaw,
Chief Copyright Royalty Judge.
David R. Strickler,
Copyright Royalty Judge.
Steve Ruwe,
Copyright Royalty Judge.
Approved by:
Carla D. Hayden,
Librarian of Congress.
[FR Doc. 2023-22179 Filed 10-4-23; 8:45 am]
BILLING CODE 1410-72-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on October 5, 2023.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.