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63532 Federal Register / Vol. 72, No.

217 / Friday, November 9, 2007 / Proposed Rules

Paperwork Reduction Act of 1995 (44 power and responsibilities between the we make the final decision on whether
U.S.C. 3501–3520.). Federal Government and Indian tribes. to categorically exclude this rule from
further environmental review.
Federalism Energy Effects
We have analyzed this proposed rule List of Subjects in 33 CFR Part 117
A rule has implications for federalism
under Executive Order 13132, under Executive Order 13211, Actions Bridges.
Federalism, if it has a substantial direct Concerning Regulations That For the reasons discussed in the
effect on State or local governments and Significantly Affect Energy Supply, preamble, the Coast Guard proposes to
would either preempt State law or Distribution, or Use. We have amend 33 CFR part 117 as follows:
impose a substantial direct cost of determined that it is not a ‘‘significant
compliance on them. We have analyzed energy action’’ under that order because PART 117—DRAWBRIDGE
this proposed rule under that Order and it is not a ‘‘significant regulatory action’’ OPERATION REGULATIONS
have determined that it does not have under Executive Order 12866 and is not
1. The authority citation for part 117
implications for federalism. likely to have a significant adverse effect
continues to read as follows:
on the supply, distribution, or use of
Unfunded Mandates Reform Act energy. The Administrator of the Office Authority: 33 U.S.C. 499; 33 CFR 1.05–1(g);
of Information and Regulatory Affairs Department of Homeland Security Delegation
The Unfunded Mandates Reform Act No. 0170.1.
of 1995 (2 U.S.C. 1531–1538) requires has not designated it as a significant
energy action. Therefore, it does not 2. § 117.433 is revised to read as
Federal agencies to assess the effects of
require a Statement of Energy Effects follows:
their discretionary regulatory actions. In
particular, the Act addresses actions under Executive Order 13211. § 117.433 Bonfouca Bayou.
that may result in the expenditure by a Technical Standards The draw of the S433 Bridge, mile 7.0,
State, local, or tribal government, in the The National Technology Transfer at Slidell, shall open on signal, except
aggregate, or by the private sector of and Advancement Act (NTTAA) (15 that from 6 p.m. to 6 a.m., the draw
$100,000,000 or more in any one year. U.S.C. 272 note) directs agencies to use shall open on signal if at least 2 hours
Though this proposed rule will not voluntary consensus standards in their notice is given. On Monday through
result in such an expenditure, we do regulatory activities unless the agency Friday, except Federal holidays, the
discuss the effects of this rule elsewhere provides Congress, through the Office of draw need not open for the passage of
in this preamble. Management and Budget, with an vessels from 7 a.m. to 8 a.m. and from
Taking of Private Property explanation of why using these 1:45 p.m. to 2:45 p.m.
standards would be inconsistent with Dated: October 29, 2007.
This proposed rule would not affect a applicable law or otherwise impractical. Joel R. Whitehead,
taking of private property or otherwise Voluntary consensus standards are Rear Admiral, U.S. Coast Guard Commander,
have taking implications under technical standards (e.g., specifications Eighth Coast Guard District.
Executive Order 12630, Governmental of materials, performance, design, or [FR Doc. E7–21884 Filed 11–8–07; 8:45 am]
Actions and Interference with operation; test methods; sampling BILLING CODE 4910–15–P
Constitutionally Protected Property procedures; and related management
Rights. systems practices) that are developed or
Civil Justice Reform adopted by voluntary consensus LIBRARY OF CONGRESS
standards bodies.
This proposed rule meets applicable This proposed rule does not use Copyright Royalty Board
standards in sections 3(a) and 3(b)(2) of technical standards. Therefore, we did
Executive Order 12988, Civil Justice not consider the use of voluntary 37 CFR Part 383
Reform, to minimize litigation, consensus standards.
eliminate ambiguity, and reduce [Docket No. 2005–5 CRB DTNSRA]
burden. Environment
We have analyzed this proposed rule Digital Performance Right in Sound
Protection of Children Recordings and Ephemeral
under Commandant Instruction
We have analyzed this proposed rule M16475.lD and Department of Recordings for a New Subscription
under Executive Order 13045, Homeland Security Management Service
Protection of Children from Directive 5100.1, which guide the Coast AGENCY: Copyright Royalty Board,
Environmental Health Risks and Safety Guard in complying with the National Library of Congress.
Risks. This rule is not an economically Environmental Policy Act of 1969 ACTION: Notice of proposed rulemaking.
significant rule and would not create an (NEPA)(42 U.S.C. 4321–4370f), and
environmental risk to health or risk to have made a preliminary determination SUMMARY: The Copyright Royalty Judges
safety that might disproportionately that there are no factors in this case that are publishing for comment proposed
affect children. would limit the use of a categorical regulations that set the rates and terms
exclusion under section 2.B.2 of the for the use of sound recordings in
Indian Tribal Governments transmissions made by new
Instruction. Therefore, we believe that
This proposed rule does not have this rule should be categorically subscription services and for the making
tribal implications under Executive excluded, under figure 2–1, (32)(e), of of ephemeral recordings necessary for
Order 13175, Consultation and the Instruction, from further the facilitation of such transmissions for
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Coordination with Indian Tribal environmental documentation. Under the period commencing from the
Governments, because it would not have figure 2–1, paragraph (32)(e), an inception of the new subscription
a substantial direct effect on one or ‘‘Environmental Analysis Check List’’ or service through December 31, 2010.
more Indian tribes, on the relationship ‘‘Categorical Exclusion Determination’’ DATES: Comments and objections, if any,
between the Federal Government and is not required for this rule. Comments are due no later than December 10,
Indian tribes, or on the distribution of on this section will be considered before 2007.

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Federal Register / Vol. 72, No. 217 / Friday, November 9, 2007 / Proposed Rules 63533

ADDRESSES: Comments and objections a preexisting satellite digital audio radio The Judges set the schedule for the
may be sent electronically to service.’’ 17 U.S.C. 114(j)(8). proceeding for both the direct and
crb@loc.gov. In the alternative, send an In addition to expanding the current rebuttal phases of the proceeding,
original, five copies and an electronic section 114 license, the DMCA also including the dates for the filing of the
copy on a CD either by mail or hand created a new statutory license to allow written statements and the dates for oral
delivery. Please do not use multiple for the making of ephemeral testimony for each phase. Subsequent to
means of transmission. Comments and reproductions for the purpose of the presentation of the direct phase of
objections may not be delivered by an facilitating certain digital audio their case and the filing of their written
overnight delivery service other than the transmissions, including those made by rebuttal statements, but prior to the oral
U.S. Postal Service Express Mail. If by new subscription services. 17 U.S.C. presentation of their rebuttal witnesses,
mail (including overnight delivery), 112(e). the parties informed the Judges that they
comments and objections must be To initiate a proceeding to establish had ‘‘reached full agreement on all
addressed to: Copyright Royalty Board, rates and terms for those transmissions issues in this litigation’’ and that ‘‘there
P.O. Box 70977, Washington, DC 20024– made by a new subscription service, are no more issues to try.’’ Transcript of
0977. If hand delivered by a private either a copyright owner of sound September 10, 2007, at p. 5. They also
party, comments and objections must be recordings or a new subscription service stated that the settlement agreement
brought to the Copyright Office Public must file a petition with the Copyright would be submitted to the Judges for
Information Office, Library of Congress, Royalty Judges (‘‘Judges’’). The petition approval and adoption pursuant to 17
James Madison Memorial Building, must indicate that a new subscription U.S.C. 801(b)(7)(A). Id. at 6. The
Room LM–401, 101 Independence service on which sound recordings are proposed rates and terms codifying the
Avenue, SE., Washington, DC 20559– performed is or is about to become settlement agreement were filed on
6000. If delivered by a commercial operational, for the purpose of October 30, 2007.
courier, comments and objections must determining reasonable terms and rates Section 801(b)(7)(A) allows for the
be delivered between 8:30 a.m. and 4 of royalty payments for the new adoption of rates and terms negotiated
p.m. to the Congressional Courier subscription service for the period by ‘‘some or all of the participants in a
Acceptance Site located at 2nd and D commencing with the inception of such proceeding at any time during the
Street, NE., Washington, DC, and the new subscription service and ending on proceeding’’ provided they are
envelope must be addressed to: the date on which the most recent submitted to the Copyright Royalty
Copyright Royalty Board, Library of royalty rates and terms for preexisting Judges for approval. This section
Congress, James Madison Memorial subscription digital audio transmission provides that in such event:
Building, LM–403, 101 Independence services or preexisting satellite digital (i) the Copyright Royalty Judges shall
Avenue, SE., Washington, DC 20559– audio radio services expire or such provide to those that would be bound by the
6000. other period as the parties may agree. 17 terms, rates, or other determination set by
U.S.C. 114(f)(2)(C). any agreement in a proceeding to determine
FOR FURTHER INFORMATION CONTACT: royalty rates an opportunity to comment on
Richard Strasser, Senior Attorney, or On October 31, 2005, pursuant to
the agreement and shall provide to
Gina Giuffreda, Attorney-Advisor, by section 114(f)(2)(C), XM Satellite Radio, participants in the proceeding under section
telephone at (202) 707–7658 or e-mail at Inc. (‘‘XM’’) filed with the Judges a 803(b)(2) that would be bound by the terms,
crb@loc.gov. Petition to Initiate and Schedule rates, or other determination set by the
Proceeding for a New Type of agreement an opportunity to comment on the
SUPPLEMENTARY INFORMATION: Subscription Service for a ‘‘new type of agreement and object to its adoption as a
subscription service [which] performs basis for statutory terms and rates; and
Background (ii) the Copyright Royalty Judges may
sound recordings on digital audio
In 1995, Congress enacted the Digital channels programmed by the licensee decline to adopt the agreement as a basis for
Performance Right in Sound Recordings statutory terms and rates for participants that
for transmission by a satellite television are not parties to the agreement, if any
Act of 1995 (‘‘DPRA’’), Public Law 104– distribution service to its residential participant described in clause (i) objects to
39, which created an exclusive right for customers, where the audio channels the agreement and the Copyright Royalty
copyright owners of sound recordings, are bundled with television channels as Judges conclude, based on the record before
subject to certain limitations, to perform part of a ‘basic’ package of service and them if one exists, that the agreement does
publicly the sound recordings by means not for a separate fee.’’ XM Petition at not provide a reasonable basis for setting
of certain digital audio transmissions. 1. The petition noted that this new statutory terms or rates.
Among the limitations on the subscription service was to commence 17 U.S.C. 801(b)(7)(A). Rates and terms
performance right was the creation of a on or about November 15, 2005. Id. adopted pursuant to this provision are
new compulsory license for nonexempt On December 5, 2005, pursuant to 17 binding on all copyright owners of
noninteractive digital subscription U.S.C. 804(b)(3)(C)(ii), the Copyright sound recordings and new subscription
transmissions. 17 U.S.C. 114(f). Royalty Judges published a notice in the services performing the sound
Section 114 was later amended with Federal Register announcing recordings on digital audio channels
the passage of the Digital Millennium commencement of the proceeding to set programmed by the licensee for
Copyright Act of 1998 (‘‘DMCA’’ or ‘‘the rates and terms for royalty payments transmission by a satellite television
Act’’), Public Law 105–304, to cover under sections 114 and 112 for the distribution service to its residential
additional digital audio transmissions. activities of the new subscription customers where the audio channels are
These include transmissions made by service described in the XM Petition bundled with television channels as
‘‘new subscription services.’’ For and requesting interested parties to part of a ‘‘basic’’ package of service and
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purposes of the section 114 license, a submit their petitions to participate. 70 not for a separate fee.
‘‘new subscription service’’ is ‘‘a service FR 72471 (December 5, 2005). Petitions The parties have agreed and proposed
that performs sound recordings by to participate in this proceeding were that the terms governing the activities of
means of noninteractive subscription received from Sirius Satellite Radio, Inc. a new subscription service under
digital audio transmissions and that is (‘‘Sirius’’), XM, MTV Networks sections 114 and 112 as described
not a preexisting subscription service or (‘‘MTV’’), and SoundExchange, Inc. herein shall be the same, unless

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63534 Federal Register / Vol. 72, No. 217 / Friday, November 9, 2007 / Proposed Rules

otherwise specified, as those to be the public performance of sound Accepted Accounting Principles
determined by the Judges in the current recordings in certain digital (‘‘GAAP’’) and the Licensee’s past
proceeding to set rates and terms for the transmissions by Licensees in practices, which is derived by the
subscription transmissions and the accordance with the provisions of 17 Licensee from the operation of the
reproduction of ephemeral recordings U.S.C. 114, and the making of certain Service and shall be comprised of the
by preexisting satellite digital audio ephemeral recordings by Licensees in following:
radio services, Docket No. 2006–1 CRB accordance with the provisions of 17 (i) Revenues recognizable by Licensee
DSTRA. The Judges will render their U.S.C. 112(e), during the period from Licensee’s Providers and directly
determination in that proceeding by commencing from the inception of the from residential U.S. subscribers for
mid-December. Licensees’ Services and continuing Licensee’s Service;
The parties proposing the fee through December 31, 2010. (ii) Licensee’s advertising revenues
structure and fees set forth herein have (b) Legal compliance. Licensees recognizable from the Service (as
agreed that the fee structure and fees relying upon the statutory licenses set billed), or other monies received from
shall not be offered into evidence, relied forth in 17 U.S.C. 112 and 114 shall sponsors of the Service if any, less
upon, considered as precedent, or comply with the requirements of those advertising agency commissions not to
otherwise taken into account in (i) the sections and the rates and terms of this exceed 15% of those fees incurred to a
proceeding in Docket No. 2006–1 CRB part. recognized advertising agency not
DSTRA to set rates and fees for the (c) Relationship to voluntary owned or controlled by Licensee;
public performance of sound recordings agreements. Notwithstanding the (iii) Revenues recognizable for the
or the reproduction of ephemeral royalty rates and terms established in provision of time on the Service to any
phonorecords via preexisting satellite this part, the rates and terms of any third party;
digital audio radio services, or (ii) in the license agreements entered into by (iv) Revenues recognizable from the
immediately following proceeding to Copyright Owners and Licensees shall sale of time to Providers of paid
adopt successor rates and terms for apply in lieu of the rates and terms of programming, such as infomercials, on
preexisting satellite digital audio radio this part to transmissions within the the Service;
services. scope of such agreements. (v) Where merchandise, service, or
As discussed above, the public may anything of value is receivable by
comment and object to any or all of the § 383.2 Definitions. Licensee in lieu of cash consideration
proposed regulations contained in this For purposes of this part, the for the use of Licensee’s Service, the fair
notice of proposed rulemaking. Those following definitions shall apply: market value thereof or Licensee’s
who do comment and object, however, (a) Applicable Period is the period for prevailing published rate, whichever is
must be prepared to participate in which a particular payment to the less;
further proceedings in this docket to designated collection and distribution (vi) Monies or other consideration
establish rates and terms for the organization is due. recognizable as revenue by Licensee
activities of the new subscription (b) Bundled Contracts means from Licensee’s Providers, but not
services described herein under the contracts between the Licensee and a including revenues recognizable by
section 112 and 114 licenses. Provider in which the Service is not the Licensee’s Providers from others and
only content licensed by the Licensee to not accounted for by Licensee’s
List of Subject in 37 CFR Part 383 the Provider. Providers to Licensee, for the provision
Copyright, Digital audio (c) Copyright Owner is a sound of hardware for the Service by anyone
transmissions, Performance right, Sound recording copyright owner who is and used in connection with the
recordings. entitled to receive royalty payments Service;
under 17 U.S.C. 112(e) or 114(g). (vii) Monies or other consideration
Proposed Regulations (d) License Period means the period recognizable as revenue for any
For the reasons set forth in the commencing from the inception of the references to or inclusion of any product
preamble, the Copyright Royalty Judges Licensees’ Services and continuing or service on the Service; and
propose to add part 383 to Chapter III through December 31, 2010. (viii) Bad debts recovered regarding
of title 37 of the Code of Federal (e) Licensee is a person that has paragraphs (g)(1)(i) through (vii) of this
Regulations to read as follows: obtained statutory licenses under 17 section.
U.S.C. 112 and 114, and the (2) ‘‘Revenue’’ shall include such
PART 383—RATES AND TERMS FOR implementing regulations, to make payments as set forth in paragraphs
SUBSCRIPTION TRANSMISSIONS AND digital audio transmissions as part of a (g)(1)(i) through (viii) of this section to
THE REPRODUCTION OF EPHEMERAL Service (as defined in paragraph (h) of which Licensee is entitled but which are
RECORDINGS BY NEW this section), and ephemeral recordings paid or payable to a parent, subsidiary,
SUBSCRIPTION SERVICES for use in facilitating such division, or affiliate of Licensee, in lieu
transmissions. of payment to Licensee but not
Sec. (f) Provider means a ‘‘multichannel including payments to Licensee’s
383.1 General. video programming distributor’’ as that Providers for the Service. Licensee shall
383.2 Definitions.
383.3 Royalty fees for public performance
term is defined in 47 CFR 76.1000(e); be allowed a deduction from ‘‘Revenue’’
of sound recordings and the making of notwithstanding such definition, for as defined in paragraph (g)(1) of this
ephemeral recordings. purposes of this part, a Provider shall section for bad debts actually written off
383.4 Terms for making payment of royalty include only a distributor of during the reporting period.
fees. programming to televisions, such as a (h) A Service is a non-interactive
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Authority: 17 U.S.C. 112(e), 114, and cable or satellite television provider. (consistent with the definition of
801(b)(1). (g) Revenue. (1) ‘‘Revenue’’ means all ‘‘interactive service’’ in 17 U.S.C.
monies and other considerations, paid 114(j)(7)) audio-only subscription
§ 383.1 General. or payable, recognizable during the service (including accompanying
(a) Scope. This part 383 establishes Applicable Period as revenue by the information and graphics related to the
rates and terms of royalty payments for Licensee consistent with Generally audio) that is transmitted to residential

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Federal Register / Vol. 72, No. 217 / Friday, November 9, 2007 / Proposed Rules 63535

subscribers of a television service (B) 2007: $0.0075 Providers for all past, current and future
through a Provider which is marketed as (C) 2008: $0.0075 periods. In the event that the Copyright
and is in fact primarily a video service (D) 2009: $0.0125 Royalty Judges do not adopt reports of
where (E) 2010: $0.0150 and
use regulations in the SDARS
(1) Subscribers do not pay a separate Proceeding, then reports of use provided
fee for audio channels, (2) For Bundled Contracts, the greater by XM Satellite Radio Inc. (‘‘XM’’) and
(2) The audio channels are delivered of: Sirius Satellite Radio Inc. (‘‘Sirius’’) for
by digital audio transmissions through a (i) 15% of Revenue allocated to reflect their use of sound recordings on their
technology that is incapable of tracking the objective value of the Licensee’s preexisting satellite digital audio radio
the individual sound recordings Service, or services (as defined in 17 U.S.C.
received by any particular consumer. (ii) The following monthly minimum
114(j)(10)) shall be deemed to satisfy
(3) However, paragraph (h)(2) of this payment per Subscriber to the Service of
XM’s and Sirius’ obligations to report
section shall not apply to the Licensee’s such Licensee:
sound recordings used pursuant to this
current contracts with Providers that are (A) From inception through 2006: part, and MTV Networks shall provide
in effect as of the effective date of this $0.0220 census reporting, retroactive to the
part if such Providers become capable in (B) 2007: $0.0220 inception of its Service.
the future of tracking the individual (C) 2008: $0.0220 Dated: November 6, 2007.
sound recordings received by any
(D) 2009: $0.0220 James Scott Sledge,
particular consumer, provided that the
audio channels continued to be (E) 2010: $0.0250 Chief Copyright Royalty Judge.
delivered to Subscribers by digital audio (b) Minimum fee. Each Licensee will [FR Doc. E7–22044 Filed 11–8–07; 8:45 am]
transmissions and the Licensee remains pay an annual, non-refundable BILLING CODE 1410–72–P
incapable of tracking the individual minimum fee of one hundred thousand
sound recordings received by any dollars ($100,000), payable on January
particular consumer. 31 of each calendar year in which the ENVIRONMENTAL PROTECTION
(i) Subscriber means every residential Service is provided pursuant to the AGENCY
subscriber to the underlying service of section 112 and 114 statutory licenses,
the Provider who receives Licensee’s but payable pursuant to the applicable 40 CFR Part 82
Service in the United States for all or regulations for all years 2007 and
any part of a month; provided, however, earlier. Such fee shall be recoupable and [EPA–HQ–OAR–2006–5065; FRL–8493–4]
that for any Licensee that is not able to credited against royalties due in the RIN 2060–AO32
track the number of subscribers on a calendar year in which it is paid.
per-day basis, ‘‘Subscribers’’ shall be Protection of Stratospheric Ozone:
§ 383.4 Terms for making payment of
calculated based on the average of the royalty fees.
Revision of Refrigerant Recovery and
number of subscribers on the last day of Recycling Equipment Standards
the preceding month and the last day of (a) Subject to the provisions of this
the applicable month, unless the Service section, terms governing timing and due AGENCY: Environmental Protection
is paid by the Provider based on end-of- dates of royalty payments, late fees, Agency (EPA).
month numbers, in which event statements of account, audit and ACTION: Proposed rule.
‘‘Subscribers’’ shall be counted based on verification of royalty payments and
distributions, cost of audit and SUMMARY: The Environmental Protection
end-of-month data.
(j) Stand-Alone Contracts means verification, record retention Agency (EPA) is proposing to update
contracts between the Licensee and a requirements, treatment of Licensees’ motor vehicle refrigerant recovery and
Provider in which the only content confidential information, distribution of recycling equipment standards. Under
licensed to the Provider is the Service. royalties, unclaimed funds, designation Clean Air Act Section 609, motor
and definition of the collection and vehicle air-conditioning (MVAC)
§ 383.3 Royalty fees for public distribution organization, and any refrigerant handling equipment must be
performances of sound recordings and the definitions for applicable terms not certified by the Administrator or an
making of ephemeral recordings. defined herein and not otherwise independent organization approved by
(a) Royalty rates. Royalty rates for the inapplicable shall be those adopted by the Administrator and, at a minimum,
public performance of sound recordings the Copyright Royalty Judges for must be as stringent as the standards of
by eligible digital transmissions made subscription transmissions and the the Society of Automotive Engineers
over a Service pursuant to 17 U.S.C. reproduction of ephemeral recordings (SAE) in effect as of the date of the
114, and for ephemeral recordings of by preexisting satellite digital audio enactment of the Clean Air Act
sound recordings made pursuant to 17 radio services in Docket No. 2006–1 Amendments of 1990. In 1997, EPA
U.S.C. 112 to facilitate such CRB DSTRA (‘‘the SDARS Proceeding’’). promulgated regulations that required
transmissions, are as follows. Each (b) Without prejudice to any the use of SAE Standard J2210, HFC–
Licensee will pay, with respect to applicable notice and recordkeeping 134a Recycling Equipment for Mobile
content covered by the License that is provisions, statements of account shall Air Conditioning Systems for
provided via the Service of each such not require reports of performances. certification of MVAC refrigerant
Licensee: (c) If the Copyright Royalty Judges handling equipment. SAE has replaced
(1) For Stand-Alone Contracts, the adopt reports of use regulations in the Standard J2210 with J2788, Recovery/
greater of: SDARS Proceeding, those regulations, if Recycle and Recovery/Recycle/
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(i) 15% of Revenue, or any, shall govern Licensees’ obligations Recharging Equipment for HFC–134a
(ii) The following monthly minimum to report sound recordings used Refrigerant. To avoid confusion, EPA is
payment per Subscriber to the Service of pursuant to this part, except that updating its reference to include the
such Licensee— Licensees also shall report to new SAE standards. This action reflects
(A) From inception through 2006: SoundExchange which channels are a change in industry standard practice.
$0.0075 transmitted by their respective This action proposes to revise the EPA

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