Rule2023-27290

Cost of Living Adjustment to Royalty Rates and Terms for Making and Distributing Phonorecords

Primary source

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Published
December 12, 2023
Effective
December 12, 2023

Issuing agencies

Library of CongressCopyright Royalty Board

Abstract

The Copyright Royalty Judges announce a cost of living adjustment (COLA) in the royalty rates for the statutory license for making and distributing phonorecords of nondramatic musical works regarding physical phonorecords and Permanent Downloads.

Full Text

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<title>Federal Register, Volume 88 Issue 237 (Tuesday, December 12, 2023)</title>
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[Federal Register Volume 88, Number 237 (Tuesday, December 12, 2023)]
[Rules and Regulations]
[Page 86058]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-27290]


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LIBRARY OF CONGRESS

Copyright Royalty Board

37 CFR Part 385

[Docket No. Docket No. 23-CRB-0014-PR-COLA (2024)]


Cost of Living Adjustment to Royalty Rates and Terms for Making 
and Distributing Phonorecords

AGENCY: Copyright Royalty Board, Library of Congress.

ACTION: Final rule; cost of living adjustment.

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SUMMARY: The Copyright Royalty Judges announce a cost of living 
adjustment (COLA) in the royalty rates for the statutory license for 
making and distributing phonorecords of nondramatic musical works 
regarding physical phonorecords and Permanent Downloads.

DATES: 
    Effective date: December 12, 2023.
    Applicability date: These rates and terms are applicable during the 
period from January 1, 2024, through December 31, 2024.

FOR FURTHER INFORMATION CONTACT: Anita Brown, Program Specialist, (202) 
707-7658, <a href="/cdn-cgi/l/email-protection#10736272507c7f733e777f66"><span class="__cf_email__" data-cfemail="e0839282a08c8f83ce878f96">[email&#160;protected]</span></a>.

SUPPLEMENTARY INFORMATION: Section 115 of the Copyright Act, title 17 
of the United States Code, creates a statutory license for making and 
distributing phonorecords of nondramatic musical works. On December 16, 
2022, the Copyright Royalty Judges (Judges) adopted final regulations 
that set rates and terms applicable for the statutory license for 
making and distributing phonorecords of nondramatic musical works. See 
87 FR 76942.
    Pursuant to those regulations, at least 25 days before January 1 of 
each year, the Judges shall publish in the Federal Register notice of a 
cost of living adjustment (COLA) applicable to the royalty fees for 
making and distributing physical phonorecords and Permanent Downloads. 
37 CFR 385.11.
    The royalty fee shall be adjusted to reflect any changes occurring 
in the cost of living as determined by the most recent Consumer Price 
Index for All Urban Consumers (U.S. City Average, all items) (CPI-U) 
published by the Secretary of Labor before December 1 of the preceding 
year. The calculation of the rate for each year shall be cumulative 
based on a calculation of the percentage increase in the CPI-U from the 
CPI-U published in November, 2022 (the Base Rate) and shall be made 
according to the following formulas: for the per-work rate, (1 + (Cy - 
Base Rate)/Base Rate) x 12[cent], rounded to the nearest tenth of a 
cent; for the per-minute rate, (1 + (Cy - Base Rate)/Base Rate) x 
2.31[cent], rounded to the nearest hundredth of a cent; where Cy is the 
CPI-U published by the Secretary of Labor before December 1 of the 
preceding year. 37 CFR 385.11(a)(2).

List of Subjects in 37 CFR Part 385

    Copyright, Phonorecords, Recordings.

Final Regulations

    In consideration of the foregoing, the Judges amend part 385 of 
title 37 of the Code of Federal Regulations 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).


0
2. Section 385.11 is amended by revising paragraph (a)(1) to read as 
follows:


Sec.  385.11  Royalty fees for the public performance of sound 
recordings and the making of ephemeral recordings.

    (a) * * *
    (1) 2024 rate. For the year 2024 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 or Permanent Download shall be either 12.40 
cents or 2.39 cents per minute of playing time or fraction thereof, 
whichever amount is larger.
* * * * *

    Dated: December 7, 2023.
David P. Shaw,
Chief Copyright Royalty Judge.
[FR Doc. 2023-27290 Filed 12-8-23; 11:15 am]
BILLING CODE 1410-72-P


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Indexed from Federal Register on December 12, 2023.

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