Copyright Royalty Judges Adopt Regulations Setting Rates and Terms

by Janette Spencer-Davis, Legal Editor, CCH Copyright Law Reports   

   Noncommercial Educational Broadcasting. The Copyright Royalty Judges have adopted final regulations, setting the royalty rates and terms under Section 118 of the Copyright Act for the noncommercial educational broadcasting statutory license for the license period of 2008 --2012. The royalty rates reflect changes in the cost of living as determined by the Consumer Price Index. Effective January 1, 2008, the royalty rates for the use of musical compositions in the repertoires of the American Society of Composers, Authors and Publishers (ASCAP) and Broadcast Music, Inc. (BMI), based on a 3.5% change in the Consumer Price Index, is $287. The new rate does not apply to the SESAC, Inc. repertoires because the SESAC rate had already been set for calendar year 2008.

The terms and rates for this statutory license have been adjusted periodically by the Librarian of Congress and appear in 37 CFR part 253. However, the Copyright Royalty and Distribution Reform Act of 2004 transferred jurisdiction over these rates and terms to the Copyright Royalty Judges. The regulations appear at ¶12,981 (72 Federal Register 67646, November 30, 2007).

Digital Transmissions. The Royalty Judges adopted final regulations, setting royalty rates and terms for digital transmissions of sound recordings and the reproduction of ephemeral recordings by preexisting subscription services under Sections 114 and 112 of the Copyright Act for the license period of 2008 --2012. Section 114(d) limits the rights of copyright owners by allowing certain non-interactive digital audio services to pay a royalty fee make digital transmissions of a sound recording under a compulsory license. Pursuant to Section 112(e), the services may make any necessary ephemeral reproductions to facilitate the digital transmission of the sound recording. Beginning January 1, 2008, and continuing through December 31, 2011, the royalty fees for digital performance of sound recordings and the making of ephemeral phonorecords by preexisting subscription services will be 7.25% of the licensee's monthly gross revenues resulting from residential services in the United States. The regulations appear at ¶12,982 (72 Federal Register 71795, December 19, 2007).

Use of Sound Recordings. Also adopted were final regulations, setting royalty rates and terms for the use of sound recordings in transmissions made by new subscription services and for the making of ephemeral recordings necessary for the facilitation of such transmissions for the period commencing from the inception of the new subscription service through December 31, 2007. The schedule of fees for public performances of sound recordings appears at ¶12,983 (72 Federal Register 72253, December 20, 2007).

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