[Federal Register Volume 83, Number 13 (Friday, January 19, 2018)]
[Rules and Regulations]
[Pages 2739-2743]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-00735]


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LIBRARY OF CONGRESS

Copyright Royalty Board

37 CFR Part 381

[Docket No. 16-CRB-0002-PBR (2018-2022)]


Determination of Rates and Terms for Public Broadcasting (PB III)

AGENCY: Copyright Royalty Board (CRB), Library of Congress.

ACTION: Final rule.

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SUMMARY: The Copyright Royalty Judges publish this final rule regarding 
rates and terms for use of certain works in connection with 
noncommercial broadcasting for the period commencing January 1, 2018, 
and ending on December 31, 2022.

DATES: 
    Effective date: This rule is effective on January 19, 2018.
    Applicability dates: This rule applies to the license period 
January 1, 2018, through December 31, 2022.

ADDRESSES: Docket: For access to the docket to read background 
documents or comments received, go to eCRB, the Copyright Royalty 
Board's electronic filing and case management system, at https://app.crb.gov/ and search for docket number 16-CRB-0002-PBR (2018-2022). 
For documents not yet uploaded to eCRB (because it is a new system), go 
to the agency website at https://www.crb.gov/ or contact the CRB 
Program Specialist.

FOR FURTHER INFORMATION CONTACT: Anita Blaine, CRB Program Specialist, 
by telephone at (202) 707-7658 or email at [email protected].

SUPPLEMENTARY INFORMATION: 

Background

    Section 118 of the Copyright Act, title 17 of the United States 
Code, establishes a statutory license for the use of certain 
copyrighted works in connection with noncommercial television and radio 
broadcasting. 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 118 license. 17 U.S.C. 
801(b)(1), 804(b)(6). In accordance with section 804(b)(6), on January 
5, 2016, the Judges commenced the proceeding to set rates and terms for 
the period 2018 through 2022. 77 FR 71104.
    Copyright owners and public broadcasting entities \1\ may negotiate 
rates and terms under the section 118 license for categories of 
copyrighted works and uses that would be binding on all owners and 
entities using the same license \2\ and submit them to the Judges for 
approval. 17 U.S.C. 801(b)(7)(A). The participants \3\ in the 
proceeding settled and submitted to the Judges proposed rates for the 
relevant categories and uses, which the Judges published in the Federal 
Register for comment on November 3, 2017. 82 FR 51589.
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    \1\ A ``public broadcasting entity'' is defined as a 
``noncommercial educational broadcast station as defined in section 
397 of title 47 and any nonprofit institution or organization 
engaged in the activities described in paragraph (2) of subsection 
(c)'' of section 118. 17 U.S.C. 118(f).
    \2\ Copyright owners may negotiate rates and terms with specific 
public broadcasting entities for the use of all of the copyright 
owners' works covered by the Section 118 license. Section 118(b)(2) 
provides that such license agreements ``shall be given effect in 
lieu of any determination by the * * * Copyright Royalty Judges,'' 
provided that copies of the agreement are submitted to the Judges 
``within 30 days of execution.'' 17 U.S.C. 118(b)(2). The Judges 
received three such agreements (from BMI, ASCAP, and SESAC).
    \3\ The Judges received settlement proposals from the following 
active participants: The American Society of Authors, Composers and 
Publishers (``ASCAP''); SESAC, Inc.; Broadcast Music, Inc. 
(``BMI''); Educational Media Foundation (``EMF''); National Public 
Radio (``NPR'') and the Public Broadcasting Service (``PBS''), 
jointly; National Religious Broadcasters Noncommercial Music License 
Committee (``NRBNMLC''); the National Music Publishers' Association 
(``NMPA''), The Harry Fox Agency (``HFA''), National Association of 
College and University Business Officers (``NACUBO''). The remaining 
active participant, Church Music Publishers Association (``CMPA''), 
approved the four joint proposals involving ASCAP/BMI/SESAC/HFA and 
NMPA and NRBNMLC/EMF.
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    The Judges received two comments, a joint comment from participants 
ASCAP, BMI, NPR, PBS, and SESAC, and a comment from non-participant 
Global Music Rights, LLC (``GMR'').\4\
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    \4\ The Judges correct one error in the proposed regulatory text 
published in the proposed rule. They remove the preface after the 
heading of 381.4 because that language (with proposed revisions) is 
now in subparagraph (a).

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[[Page 2740]]

    The joint comment from participants proposed a revision to Sec.  
381.4(b) to conform it to Sec. Sec.  381.5 and 381.6 by making explicit 
that the rates only apply to compositions not in the repertories of 
ASCAP, BMI, and SESAC.\5\ This change would ensure that, were a 
voluntary agreement to terminate within the license period, the 
statutory rate would not apply to compositions in the repertories of 
ASCAP, BMI, and SESAC. The Judges find the proposed revision is too 
late and they reject it for several reasons, including:
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    \5\ In the Supplementary Information provided in the Proposed 
Rule relating to this license, the Judges noted that ``NPR and PBS 
filed proposed changes . . . in Sec.  381.4 . . . [which] conform to 
analogous changes in Sec. Sec.  381.5 and 381.6.'' 82 FR at 51591 
(Nov. 7, 2017). See Submission of NPR and PBS (Oct. 25, 2017). The 
conforming changes were those establishing the $1.00 backstop rate. 
None of the participants sought the limitation language they now 
urge.

    1. The proposed language was not sought by any party before the 
proposed regulations were published for public comment.
    2. The proposed language is not in the current regulations.
    3. The proposed regulation includes a rate for licenses that are 
not subject to a voluntary, negotiated agreement.
    4. Extension, renewal, or renegotiation of any negotiated 
agreement to avoid the statutory rate is within the control of 
ASCAP, BMI, and SESAC.

    Notwithstanding the agreement of all parties who allegedly might be 
affected by this late-proposed change, making this change would alter 
the proposed regulation without affording interested parties an 
opportunity for review and comment or objection.
    The comment from GMR raised two concerns. GMR objects to a decrease 
in the Sec.  381.4 rate for non-participants and requests the Judges 
keep the current rates and add a one-time cost of living adjustment. It 
also objects to leaving the Sec. Sec.  381.5 and 381.6 rates for non-
participants at the current level and requests the Judges revise it to 
match the increase in the SESAC rate.
    GMR did not file a Petition to Participate in the proceeding. It is 
allowed to comment, but the Judges need not accept its comments as an 
``objection'' to be weighed. The Judges respectfully acknowledge GMR's 
concerns, but those concerns cannot be a basis for the Judges to find 
that there is a reasonable objection to adoption of the rules. The 
Judges' ability to reject an agreement on the reasonableness of the 
rates and terms proposed therein is constrained by statute. 
Specifically, section 801(b)(7)(A)(ii) directs the Judges to adopt 
proposed agreed rates and terms unless a participant to the proceeding 
objects.\6\ The entity objecting to the proposed rates and terms at 
issue, GMR, did not file a timely petition to participate in this 
proceeding, and it does not qualify as a participant to the 
proceeding.\7\ Therefore, having received no objections to the 
reasonableness of the proposed rates and terms from a participant in 
this proceeding, the Copyright Royalty Judges adopt with one minor 
revision the final regulations as published on November 3, 2017, which 
set the rates and terms for the section 118 statutory license for the 
period 2018 through 2022.
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    \6\ The Register of Copyrights has opined that the statutory 
direction does not imply or require that the Judges must adopt 
proposed regulations that are inherently contrary to law. See 78 FR 
47421.
    \7\ In the Cable Sports Rule proceeding, docket number 15-CRB-
0010-CA-S (Sports Rule Proceeding), the Judges gave the comments of 
non-participant Major League Soccer (``MLS'') more consideration by 
soliciting reply comments because the settlement in that proceeding 
excluded MLS from any royalty consideration. 82 FR 44368. In this 
proceeding, the settling parties proposed a rate for non-settling 
entities that would cover non-participant GMR.
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List of Subjects in 37 CFR Part 381

    Copyright, Music, Radio, Television, Rates.

Final Regulations

    For the reasons set forth in the preamble, the Copyright Royalty 
Judges amend part 381 to chapter III of title 37 of the Code of Federal 
Regulations as set forth below:

PART 381--USE OF CERTAIN COPYRIGHTED WORKS IN CONNECTION WITH 
NONCOMMERCIAL EDUCATIONAL BROADCASTING

0
1. The authority citation for part 381 continues to read as follows:

    Authority:  17 U.S.C. 118, 801(b)(1) and 803.


Sec.  381.1   [Amended]

0
2. In Sec.  381.1, remove ``2013'' and in its place add ``2018'' and 
remove ``2017'' and in its place add ``2022''.

0
3. Amend Sec.  381.4 as follows:
0
a. Remove the introductory text;
0
b. Add introductory text to paragraph (a);
0
c. In paragraph (c), remove ``2013'' and in its place add ``2018'' and 
remove ``2017'' and in its place add ``2022''; and
0
d. Remove paragraph (d).
    The revision reads as follows:


Sec.  381.4  Performance of musical compositions by PBS, NPR and other 
public broadcasting entities engaged in the activities set forth in 17 
U.S.C. 118(c).

    (a) Determination of royalty rate. The following rates and terms 
shall apply to the performance by PBS, NPR and other public 
broadcasting entities engaged in activities set forth in 17 U.S.C. 
118(c) of copyrighted published nondramatic musical compositions, 
except for public broadcasting entities covered by Sec. Sec.  381.5 and 
381.6, and except for compositions which are the subject of voluntary 
license agreements: The royalty shall be $1.
* * * * *

0
4. Amend Sec.  381.5 by revising paragraph (c) to read as follows:


Sec.  381.5  Performance of musical compositions by public broadcasting 
entities licensed to colleges and universities.

* * * * *
    (c) Royalty rate. A public broadcasting entity within the scope of 
this section may perform published nondramatic musical compositions 
subject to the following schedule of royalty rates:
    (1) For all such compositions in the repertory of ASCAP, the 
royalty rates shall be as follows:
    (i) Music fees.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                           Number of full-time students        2018            2019            2020            2021            2022
--------------------------------------------------------------------------------------------------------------------------------------------------------
Level 1................................  <1,000.........................            $352            $359            $366            $373            $380
Level 2................................  1,000-4,999....................             407             415             423             431             440
Level 3................................  5,000-9,999....................             557             568             579             591             603
Level 4................................  10,000-19,999..................             722             736             751             766             781
Level 5................................  20,000+........................             908             926             945             964             983
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[[Page 2741]]

    (ii) Level 1 rates as set forth in paragraph (c)(1)(i) of this 
section, shall also apply to College Radio Stations with an authorized 
effective radiated power (ERP), as that term is defined in 47 CFR 
73.310(a), of 100 Watts or less, as specified on its current FCC 
license, regardless of the size of the student population.
    (2) For all such compositions in the repertory of BMI, the royalty 
rates shall be as follows:
    (i) Music fees.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                           Number of full-time students        2018            2019            2020            2021            2022
--------------------------------------------------------------------------------------------------------------------------------------------------------
Level 1................................  <1,000.........................            $352            $359            $366            $373            $380
Level 2................................  1,000-4,999....................             407             415             423             431             440
Level 3................................  5,000-9,999....................             557             568             579             591             603
Level 4................................  10,000-19,999..................             722             736             751             766             781
Level 5................................  20,000+........................             908             926             945             964             983
--------------------------------------------------------------------------------------------------------------------------------------------------------

    (ii) Level 1 rates, as set forth in paragraph (c)(2)(i) of this 
section, shall also apply to College Radio Stations with an authorized 
effective radiated power (ERP), as that term is defined in 47 CFR 
73.310(a), of 100 Watts or less, as specified on its current FCC 
license, regardless of the size of the student population.
    (3) For all such compositions in the repertory of SESAC, the 
royalty rates shall be as follows:
    (i) 2018: The 2017 rate, subject to an annual cost of living 
adjustment in accordance with paragraph (c)(3)(vi) of this section.
    (ii) 2019: The 2018 rate, subject to an annual cost of living 
adjustment in accordance with paragraph (c)(3)(vi) of this section.
    (iii) 2020: The 2019 rate, subject to an annual cost of living 
adjustment in accordance with paragraph (c)(3)(vi) of this section.
    (iv) 2021: The 2020 rate, subject to an annual cost of living 
adjustment in accordance with paragraph (c)(3)(vi) of this section.
    (v) 2022: The 2021 rate, subject to an annual cost of living 
adjustment in accordance with paragraph (c)(3)(vi) of this section.
    (vi) Such cost of living adjustment to be made in accordance with 
the greater of:
    (A) The change, if any, in the Consumer Price Index (all consumers, 
all items) published by the U.S. Department of Labor, Bureau of Labor 
Statistics during the twelve (12) month period from the most recent 
Index, published before December 1 of the year immediately prior to the 
applicable year; or
    (B) One and one-half percent (1.5%).
    (4) For the performance of any other such compositions: $1.
* * * * *

0
5. Amend Sec.  381.6 as follows:
0
a. Remove from the first sentence of paragraph (a) the words ``which 
are''; and
0
b. Revise paragraph (d).
    The revision reads as follows:


Sec.  381.6  Performance of musical compositions by other public 
broadcasting entities.

* * * * *
    (d) Royalty rate. A public broadcasting entity within the scope of 
this section may perform published nondramatic musical compositions 
subject to the following schedule of royalty rates:
    (1) For all such compositions in the repertory of ASCAP, the 
royalty rates shall be as follows:
    (i) Music Fees (Stations with 20% or more programming containing 
Feature Music):

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                          Calendar years
                                                 Population count        -------------------------------------------------------------------------------
                                                                               2018            2019            2020            2021            2022
--------------------------------------------------------------------------------------------------------------------------------------------------------
Level 1................................  0-249,999......................            $697            $711            $725            $739            $754
Level 2................................  250,000-499,999................           1,243           1,268           1,294           1,319           1,346
Level 3................................  500,000-999,999................           1,864           1,901           1,939           1,978           2,017
Level 4................................  1,000,000-1,499,999............           2,486           2,535           2,586           2,638           2,691
Level 5................................  1,500,000-1,999,999............           3,107           3,169           3,232           3,297           3,363
Level 6................................  2,000,000-2,499,999............           3,728           3,803           3,879           3,956           4,035
Level 7................................  2,500,000-2,999,999............           4,349           4,436           4,525           4,615           4,708
Level 8................................  3,000,000 and above............           6,214           6,338           6,465           6,594           6,726
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    (ii) Talk Format Station Fees (Stations with <20% Feature Music 
programming):

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                          Calendar years
                                                 Population count        -------------------------------------------------------------------------------
                                                                               2018            2019            2020            2021            2022
--------------------------------------------------------------------------------------------------------------------------------------------------------
Level 1................................  0-249,999......................            $697            $711            $725            $739            $754
Level 2................................  250,000-499,999................             697             711             725             739             754
Level 3................................  500,000-999,999................             697             711             725             739             754
Level 4................................  1,000,000-1,499,999............             870             887             905             923             942
Level 5................................  1,500,000-1,999,999............           1,087           1,109           1,131           1,154           1,177
Level 6................................  2,000,000-2,499,999............           1,305           1,331           1,357           1,384           1,412
Level 7................................  2,500,000-2,999,999............           1,522           1,552           1,583           1,615           1,647
Level 8................................  3,000,000 and above............           2,175           2,218           2,262           2,308           2,354
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[[Page 2742]]

    (2) For all such compositions in the repertory of BMI, the royalty 
rates shall be as follows:
    (i) Music Fees (Stations with 20% or more programming containing 
Feature Music):

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                          Calendar years
                                                 Population count        -------------------------------------------------------------------------------
                                                                               2018            2019            2020            2021            2022
--------------------------------------------------------------------------------------------------------------------------------------------------------
Level 1................................  0-249,999......................            $697            $711            $725            $739            $754
Level 2................................  250,000-499,999................           1,243           1,268           1,294           1,319           1,346
Level 3................................  500,000-999,999................           1,864           1,901           1,939           1,978           2,017
Level 4................................  1,000,000-1,499,999............           2,486           2,535           2,586           2,638           2,691
Level 5................................  1,500,000-1,999,999............           3,107           3,169           3,232           3,297           3,363
Level 6................................  2,000,000-2,499,999............           3,728           3,803           3,879           3,956           4,035
Level 7................................  2,500,000-2,999,999............           4,349           4,436           4,525           4,615           4,708
Level 8................................  3,000,000 and above............           6,214           6,338           6,465           6,594           6,726
--------------------------------------------------------------------------------------------------------------------------------------------------------

    (ii) Talk Format Station Fees (Stations with <20% Feature Music 
programming):

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                          Calendar years
                                                 Population count        -------------------------------------------------------------------------------
                                                                               2018            2019            2020            2021            2022
--------------------------------------------------------------------------------------------------------------------------------------------------------
Level 1................................  0-249,999......................            $697            $711            $725            $739            $754
Level 2................................  250,000-499,999................             697             711             725             739             754
Level 3................................  500,000-999,999................             697             711             725             739             754
Level 4................................  1,000,000-1,499,999............             870             887             905             923             942
Level 5................................  1,500,000-1,999,999............           1,087           1,109           1,131           1,154           1,177
Level 6................................  2,000,000-2,499,999............           1,305           1,331           1,357           1,384           1,412
Level 7................................  2,500,000-2,999,999............           1,522           1,552           1,583           1,615           1,647
Level 8................................  3,000,000 and above............           2,175           2,218           2,262           2,308           2,354
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    (3) For all such compositions in the repertory of SESAC, the 
royalty rates shall be as follows:
    (i) Music fees for stations with > = 20% Feature Music programming:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                 Population count              2018            2019            2020            2021            2022
--------------------------------------------------------------------------------------------------------------------------------------------------------
Level 1................................  0-249,999......................            $152            $155            $158            $161            $164
Level 2................................  250,000-499,999................             253             258             263             268             274
Level 3................................  500,000-999,999................             380             388             396             403             411
Level 4................................  1,000,000-1,499,999............             507             517             527             538             548
Level 5................................  1,500,000-1,999,999............             634             647             660             673             686
Level 6................................  2,000,000-2,499,999............             760             775             790             806             822
Level 7................................  2,500,000-2,999,999............             887             905             923             941             960
Level 8................................  3,000,000 and above............           1,268           1,293           1,318           1,344           1,371
--------------------------------------------------------------------------------------------------------------------------------------------------------

    (ii) Talk fees for stations with <20% Feature Music programming:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                 Population count              2018            2019            2020            2021            2022
--------------------------------------------------------------------------------------------------------------------------------------------------------
Level 1................................  0-249,999......................            $152            $155            $158            $161            $164
Level 2................................  250,000-499,999................             152             155             158             161             164
Level 3................................  500,000-999,999................             152             155             158             161             164
Level 4................................  1,000,000-1,499,999............             177             181             185             188             192
Level 5................................  1,500,000-1,999,999............             222             227             231             236             240
Level 6................................  2,000,000-2,499,999............             266             271             277             282             288
Level 7................................  2,500,000-2,999,999............             311             317             323             330             336
Level 8................................  3,000,000 and above............             444             452             461             470             480
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    (4) For the performance of any other such compositions, in 2018 
through 2022, $1.
* * * * *

0
6. Amend Sec.  381.7 as follows:
0
a. Revise paragraphs (b)(1)(i)(A) through (D) and (b)(1)(ii)(A) through 
(D);
0
b. Revise paragraph (b)(2)(i) through (iv); and
0
c. Revise paragraph (b)(4)(i) through (iii).
    The revisions read as follows:

[[Page 2743]]

Sec.  381.7  Recording rights, rates and terms.

* * * * *
    (b) * * *
    (1)(i) * * *

------------------------------------------------------------------------
                                                              2018-2022
------------------------------------------------------------------------
(A) Feature................................................      $118.70
(B) Concert feature (per minute)...........................        35.65
(C) Background.............................................        59.99
(D) Theme:
  (1) Single program or first series program...............        59.99
  (2) Other series program.................................        24.36
------------------------------------------------------------------------

    (ii) * * *

------------------------------------------------------------------------
                                                              2018-2022
------------------------------------------------------------------------
(A) Feature................................................        $9.81
(B) Concert feature (per minute)...........................         2.58
(C) Background.............................................         4.26
(D) Theme:
  (1) Single program or first series program...............         4.26
  (2) Other series program.................................         1.69
------------------------------------------------------------------------

* * * * *
    (2) * * *

------------------------------------------------------------------------
                                                              2018-2022
------------------------------------------------------------------------
(i) Feature................................................       $12.85
(ii) Concert feature (per minute)..........................        18.86
(iii) Background...........................................         6.44
(iv) Theme:
  (A) Single program or first series program...............         6.44
  (B) Other series program.................................         2.57
------------------------------------------------------------------------

* * * * *
    (4) * * *

------------------------------------------------------------------------
                                                              2018-2022
------------------------------------------------------------------------
(i) Feature................................................         $.81
(ii) Feature (concert) (per half hour).....................         1.69
(iii) Background...........................................          .41
------------------------------------------------------------------------

* * * * *

0
7. Amend Sec.  381.10 as follows:
0
a. In paragraph (a), remove ``2013'' everywhere it appears and in its 
place add ``2018'' and remove ``2012'' and in its place add ``2017''; 
and
0
b. Revise paragraph (b).
    The revision reads as follows:


Sec.  381.10  Cost of living adjustment.

* * * * *
    (b) On the same date of the notices published pursuant to paragraph 
(a) of this section, the Copyright Royalty Judges shall publish in the 
Federal Register a revised schedule of the rates for Sec.  381.5(c)(3), 
the rate to be charged for compositions in the repertory of SESAC, 
which shall adjust the royalty amounts established in a dollar amount 
according to the greater of:
    (1) The change in the cost of living determined as provided in 
paragraph (a) of this section; or
    (2) One-and-a-half percent (1.5%).
    (3) Such royalty rates shall be fixed at the nearest dollar.
* * * * *

    Dated: December 12, 2017.
Suzanne M. Barnett,
Chief U.S. Copyright Royalty Judge.
Jesse M. Feder,
U.S. Copyright Royalty Judge.
David R. Strickler,
U.S. Copyright Royalty Judge.
Carla D. Hayden,
Librarian of Congress.
[FR Doc. 2018-00735 Filed 1-18-18; 8:45 am]
 BILLING CODE 1410-72-P