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58054 Federal Register / Vol. 68, No.

195 / Wednesday, October 8, 2003 / Proposed Rules

(d) The total amount of all fees (202) 707–8380; Telefax: (202) 252– reporting records of use for this earlier
imposed during any fiscal year shall not 3423. time period.1 While it is certain that
exceed the statutory maximum imposed SUPPLEMENTARY INFORMATION: many services have maintained few or,
by Congress. The Commission shall in many instances, no records of prior
credit pro-rata any fees collected in Background uses, a mechanism must be adopted to
excess of this amount against amounts The Copyright Act grants copyright account for the performances that
otherwise due at the end of the quarter owners of sound recordings the occurred during this period in order to
following the quarter during which the exclusive right to perform their works distribute the royalty fees collected
Commission makes such determination. publicly by means of digital audio during this period. Thus, we seek public
(1) The Commission will notify each transmissions subject to certain comment as to the form and content
gaming operation as to the amount of limitations and exceptions. Among the such regulations should take.
overpayment, if any, and therefore the limitations placed on the performance
amount of credit to be taken against the of sound recordings is a statutory Request for Comment
next quarterly payment otherwise due. license that permits certain eligible
(2) The notification required in Incomplete and absent records create
subscription, nonsubscription, satellite serious difficulties for the Copyright
paragraph (d)(1) of this section shall be digital audio radio, business
made in writing addressed to the Office in fashioning regulations that
establishment and new subscription apply to prior uses of sound recordings.
gaming operation. services to perform those sound If only partial prior records of use are
* * * * * recordings publicly by means of digital
reported, and if only some services are
[FR Doc. 03–25472 Filed 10–7–03; 8:45 am] audio transmissions. 17 U.S.C. 114.
able to submit such reports, the data
BILLING CODE 7565–01–P Similarly, copyright owners of sound
gathered from those records is likely to
recordings are granted the exclusive
skew the royalty distribution process.
right to make copies of their works
subject to certain limitations and How should the Office address this
LIBRARY OF CONGRESS problem? Should the Office require
exceptions. Among the limitations
placed on the reproduction of sound licensees to report actual performance
Copyright Office data for the historical period, if
recordings is a statutory license that
permits certain eligible subscription, available; and if so, what elements
37 CFR Part 201 should be reported, bearing in mind that
nonsubscription, satellite digital audio,
[Docket No. RM 2002–1D] business establishment and new the information provided must be
subscription services to make ephemeral sufficient to identify the copyright
Notice and Recordkeeping for Use of copies of those sound recordings to owners and performers who are the
Sound Recordings Under Statutory facilitate their digital transmission. 17 beneficiaries of these licenses? What, if
License U.S.C. 112(e). any, proxies may be used in lieu of
Both the section 114 and 112 licenses incomplete or missing prior records?
AGENCY: Copyright Office, Library of
Congress. require services to, among other things, Are there costs associated with using
report to copyright owners of sound proxies, and if so, who should bear the
ACTION: Notice of inquiry.
recordings on the use of their works. cost of obtaining use of these proxies?
SUMMARY: The Copyright Office of the Both licenses direct the Librarian of The Copyright Office seeks answers to
Library of Congress is requesting public Congress to establish regulations to give these questions and encourages
comment on the adoption of regulations copyright owners reasonable notice of interested parties to consider the costs
for records of use of sound recordings the use of their works and create and and benefits to both the licensees and
performed pursuant to the statutory maintain records of use for delivery to the copyright owners when formulating
license for public performances of copyright owners. 17 U.S.C. 114(f)(4)(A) a mechanism for accounting for past
sound recordings by means of digital and 17 U.S.C. 112(e)(4). The purpose of performances. In particular, we seek
audio transmissions between October the exchange of data is to ensure that concrete proposals and proposed
28, 1998, and the effective date of soon- the royalties collected under the regulatory language to implement rules
to-be-announced interim regulations. statutory licenses are distributed to the for the reporting of prior records of use.
DATES: Comments are due no later than
correct recipients. Services and copyright owners are
November 24, 2003. Reply comments The Copyright Office will soon be encouraged to explore the possibility of
are due no later than December 22, publishing interim regulations setting joint submissions of comments that
2003. forth the categories of information that
represent consensus among interested
services making use of sound recordings
ADDRESSES: An original and five copies parties.
under the statutory licenses must report.
of any comment or reply comment shall Those interim regulations will require Dated: October 3, 2003.
be delivered by hand to: Office of the services to identify performances of Marybeth Peters,
General Counsel, James Madison sound recordings that they transmit Register of Copyrights.
Memorial Building, Room LM–403, First pursuant to the statutory license, [FR Doc. 03–25523 Filed 10–7–03; 8:45 am]
and Independence Avenue, SE., providing information such as the titles
Washington, DC 20559–6000; or mailed BILLING CODE 1410–33–P
of sound recordings that are transmitted,
to: Copyright Arbitration Royalty Panel the names of the recording artists, etc. 1 There is one exception. Regulations, codified at
(CARP), PO Box 70977, Southwest However, the interim regulations will be 37 CFR 201.36, are already in place for preexisting
Station, Washington, DC 20024–0977. prospective in nature, meaning that they subscription services, i.e., subscription services in
FOR FURTHER INFORMATION CONTACT: will not apply to the period from existence before July 31, 1998. See 17 U.S.C.
David O. Carson, General Counsel, or October 28, 1998, to the effective date of 114(j)(11); see also 67 FR 5791 (February 7, 2002).
This notice of inquiry seeks comments on
William J. Roberts, Jr., Senior Attorney, the interim rules. Consequently, there requirements for records of use for all types of
PO Box 70977, Southwest Station, are currently no regulations establishing services operating under the section 114 statutory
Washington, DC 20024. Telephone: the requirements for creating and license except preexisting subscription services.

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