You are on page 1of 8

34578 Federal Register / Vol. 69, No.

119 / Tuesday, June 22, 2004 / Rules and Regulations

minimize litigation, eliminate determined that it is not a ‘‘significant LIBRARY OF CONGRESS


ambiguity, and reduce burden. energy action’’ under that order because
it is not a ‘‘significant regulatory action’’ Copyright Office
Protection of Children
under Executive Order 12866 and is not
The Coast Guard has analyzed this likely to have a significant adverse effect 37 CFR Part 201
rule under Executive Order 13045, on the supply, distribution, or use of [Docket No. RM 2001–6B]
Protection of Children from energy. It has not been designated by the
Environmental Health Risks and Safety Administrator of the Office of Compulsory License for Making and
Risks. This rule is not an economically Information and Regulatory Affairs as a Distributing Phonorecords, Including
significant rule and does not concern an significant energy action. Therefore, it Digital Phonorecord Deliveries
environmental risk to health or risk to does not require a Statement of Energy
safety that may disproportionately affect Effects under Executive Order 13211. AGENCY: Copyright Office, Library of
children. Congress.
List of Subjects in 33 CFR Part 165
ACTION: Final rule.
Environment
Harbors, Marine safety, Navigation
We have considered the SUMMARY: The Copyright Office of the
(water), Reporting and recordkeeping
environmental impact of this rule and Library of Congress is amending its
requirements, Security measures,
concluded that, under figure 2–1 of regulations governing the content and
Waterways.
Commandant Instruction M16475.1D, service of certain notices on the
this rule is categorically excluded from ■ For the reasons discussed in the copyright owner of a musical work. The
further environmental documentation. preamble, the Coast Guard amends 33 notice is served or filed by a person who
A written categorical exclusion CFR part 165 as follows: intends to use a musical work to make
determination is available in the docket and distribute phonorecords, including
for inspection or copying where PART 165—REGULATED NAVIGATION by means of digital phonorecord
indicated under ADDRESSES. AREAS AND LIMITED ACCESS AREAS deliveries, under a compulsory license.
Indian Tribal Governments EFFECTIVE DATE: July 22, 2004.
■ 1. The authority citation for part 165
FOR FURTHER INFORMATION CONTACT:
This rule does not have tribal continues to read as follows:
David O. Carson, General Counsel, or
implications under Executive Order Authority: 33 U.S.C. 1226, 1231; 46 U.S.C. Tanya M. Sandros, Senior Attorney,
13175, Consultation and Coordination chapter 701; 50 U.S.C. 191, 195; 33 CFR Copyright Arbitration Royalty Panel,
with Indian Tribal Governments, 1.05–1(g), 6.04–1, 6.04–6, and 160.5; Pub. L. P.O. Box 70977, Southwest Station,
because it does not have a substantial 107–295, 116 Stat. 2064; Department of
Washington, DC 20024–0977.
direct effect on one or more Indian Homeland Security Delegation No. 0170.1
Telephone: (202) 707–8380; telefax:
tribes, on the relationship between the
■ 2. A new temporary § 165.T09–035 is (202) 252–3423.
Federal government and Indian tribes,
added to read as follows: SUPPLEMENTARY INFORMATION:
or on the distribution of power and
responsibilities between the Federal § 165.T09–035 Safety Zone; Canal Fest, I. Background
government and Indian tribes. Tonowanda, NY.
Section 115 of the Copyright Act, 17
Technical Standards (a) Location. The following area is a U.S.C., provides that ‘‘[w]hen
The National Technology Transfer temporary safety zone: All navigable phonorecords of a nondramatic musical
and Advancement Act (NTTAA) (15 waters of the Niagara River within the work have been distributed to the public
U.S.C. 272 note) directs agencies to use following boundaries: Starting at 43° 01′ in the United States under the authority
voluntary consensus standards in their 07″ N, 078° 53′ 53″ W; then to 43° 01′ of the copyright owner, any other
regulatory activities unless the agency 00″ N, 078° 53′ 29″ W; then to 43° 01′ person * * * may, by complying with
provides Congress, through the Office of 20″ N, 078° 53′ 03″ W; then to 43° 01′ the provisions of this section, obtain a
Management and Budget, with an 30″ N, 078° 53′ 30″ W; then following compulsory license to make and
explanation of why using these the shoreline back to the beginning. The distribute phonorecords of the work.’’
standards would be inconsistent with fireworks display will originate from a 17 U.S.C. 115(a)(1). The compulsory
applicable law or otherwise impractical. barge moored in the center of this zone license set forth in section 115 permits
Voluntary consensus standards are at 43° 01′ 16″ N, 078° 53′ 32″ W (NAD the use of a nondramatic musical work
technical standards (e.g., specifications 83). in a phonorecord without the consent of
of materials, performance, design, or (b) Effective time and date. This the copyright owner if certain
operation; test methods; sampling section is effective from 9:30 p.m. (local) conditions are met and royalties are
procedures; and related management until 11:30 p.m. (local) on July 25, 2004. paid.
systems practices) that are developed or (c) Regulations. In accordance with Section 115 was subsequently
adopted by voluntary consensus the general regulations in § 165.23 of amended on November 1, 1995, with the
standards bodies. this part, entry into this safety zone is enactment of the Digital Performance
This rule does not use technical prohibited unless authorized by the Right in Sound Recordings Act of 1995
standards. Therefore, we did not Coast Guard Captain of the Port Buffalo, (‘‘DPRA’’), Public Law 104–39 (1995).
consider the use of voluntary consensus or his designated on-scene Among other things, this law expanded
standards. representative. the section 115 compulsory license for
making and distributing phonorecords
Energy Effects Dated: June 1, 2004. to include not only the traditional use
We have analyzed this rule under P.M. Gugg, of the musical work to make an original
Executive Order 13211, Actions Commander, U.S. Coast Guard, Captain of sound recording, but also the
Concerning Regulations That the Port Buffalo. distribution of a phonorecord of a
Significantly Affect Energy Supply, [FR Doc. 04–14065 Filed 6–21–04; 8:45 am] nondramatic musical work by means of
Distribution, or Use. We have BILLING CODE 4910–15–P a digital phonorecord delivery

VerDate jul<14>2003 17:48 Jun 21, 2004 Jkt 203001 PO 00000 Frm 00030 Fmt 4700 Sfmt 4700 E:\FR\FM\22JNR1.SGM 22JNR1
Federal Register / Vol. 69, No. 119 / Tuesday, June 22, 2004 / Rules and Regulations 34579

(‘‘DPD’’).1 See 17 U.S.C. parties before the Office could issue a controversy. RIAA/NMPA/HFA had
115(c)(3)(A). As defined in the law, a final rule. For this reason, the Office maintained that the current rules
digital phonorecord delivery (DPD) is: published yet another NPRM for the require more information than needed
Each individual delivery of a phonorecord purpose of offering interested parties an to meet the copyright owner’s legitimate
by digital transmission of a sound recording opportunity to comment on these three right to know with whom it is dealing
which results in a specifically identifiable issues: (1) Whether licensees should be and may well impose a needless burden
reproduction by or for any transmission required to send statements of account on licensees. In light of these assertions
recipient of a phonorecord of that sound and royalty payments to the agent to by both copyright owners and users, the
recording, regardless of whether the digital whom the notice of intention was sent Office proposed to amend the rule and
transmission is also a public performance of until the agent or the copyright owner adopt the RIAA/NMPA/HFA proposal
the sound recording or any nondramatic
musical work embodied therein.
advises the licensee that the statements which requires that a licensee provide
and payments should be sent elsewhere; only the name and title of the licensee’s
17 U.S.C. 115(d). (2) whether it is advisable to simplify CEO, managing partner or the like, and
The DMCA did not change or alter the the requirement that a licensee provide identifying information for the primary
longstanding notice requirement set information concerning its ownership, entity (such as a record company or
forth in section 115(b) which requires a officers and directors; and (3) the digital music service) expected to be
person who wishes to obtain a sufficiency of a Notice to cover all actively engaged in business under the
compulsory license under section 115 to possible configurations, including those license, if that entity is other than the
notify the copyright owner of his or her not listed specifically on the notice. 69 licensee itself. Because the proposed
intention to use the copyright owner’s FR 11566 (March 11, 2004). amendment to the rules provide
musical work to make and distribute sufficient information to identify the
phonorecords under the section 115 II. Comments and Discussion
licensee and no party opposes the
license. However, the amendments did The Copyright Office received six proposed changes, the Copyright Office
require the Copyright Office to amend comments in response to the March 11 is adopting the proposed amendments
its regulations governing the content notice from the National Music as announced in the March 11 notice.
and service of the required Notices of Publishers’ Association, Inc. (‘‘NMPA’’) The only issue over which the
Intention to use the license to include and The Harry Fox Agency, Inc. commenters disagreed was whether a
the making of a digital phonorecord (‘‘HFA’’), jointly; the Digital Media single Notice of Intention to use a
delivery, and the Office did so in 1999. Association (‘‘DiMA’’); Yemi particular work is sufficient notice to
See 64 FR 41286 (July 30, 1999). It is Adegbonmire; the Recording Industry cover all possible format configurations,
now evident that these changes did not Association of America, Inc. (‘‘RIAA’’); including both those specifically
go far enough to address the needs of NMPA/HFA/RIAA, jointly; and Music identified on the notice and those which
certain digital music services which Reports, Inc. (‘‘MRI’’).2 could be used although not listed on the
anticipate using most, if not all, of the All commenters who expressed an notice. The question arose because of a
musical works embodied in the sound opinion supported proposed rule comment DiMA made in its initial
recordings readily available in today’s § 201.18(b), which would require the comment suggesting that the Office
marketplace under the section 115 authorized agent of a copyright owner, promulgate ‘‘a minimal set of
license. within two weeks of receiving a notice, regulations for the common situation in
Consequently, on August 28, 2001, to provide the licensee the name and which online entities will be
the Copyright Office published a second address of the person to whom the distributing digital phonorecord
notice of proposed rulemaking licensee shall submit Statements of deliveries of sound recordings already
(‘‘NPRM’’) in which it suggested further Account and royalty payments. They covered by a mechanical license.’’
amendments to those rules associated agreed that the rule balanced the Because DiMA’s suggestion was unclear,
with service of a notice to use the equities fairly between the licensee, the Office opined that DiMA’s
section 115 license and filing of such who bears the responsibility for serving suggestion may have been intended to
notice with the office. 66 FR 45241 the notice on the proper party in the permit a licensee to rely upon an earlier-
(August 28, 2001). After considering the first instance, and the copyright owner. filed notice, e.g., one filed in order to
comments from the record industry, RIAA/NMPA/HFA went on to note that use the license to make physical
music publishers and potential new the alternative proposal—to allow a phonorecords, to cover the making of
users of the license who seek to make licensee to make payments and file DPDs even though the digital
digital phonorecord deliveries under the statements on the agent authorized to phonorecord format configuration was
section 115 license, the Office published accept the notice—would open the door not listed on that notice. We had stated
a set of proposed regulations that would to disputes concerning misdirected in the March 11 notice that while it was
allow, among other things, service on an payments which could be difficult and highly unlikely the final rule
agent, the listing of multiple works on time consuming to resolve after the fact. promulgated in this proceeding would
a single notice, and use of an address We find this reasoning compelling. include any further amendments to
other than the one listed in the The second proposal—to eliminate address DiMA’s suggestion, we would
Copyright Office records. In proposing the requirement that a licensee provide consider DiMA’s proposal and
these rules, however, the Office certain information concerning its comments received on this issue for
identified three issues pertinent to the ownership, officers and directors, and possible future action.
rulemaking that either had not been substitute greatly simplified DiMA, however, did not elaborate on
presented to the public for comment or requirements—also generated no its earlier comment, obviating the need
that required further comment from the to consider its suggestion further. On
2 The MRI comment was received on May 4, 2004, the other hand, HFA/NMPA and RIAA
1 The right to make and distribute a DPD, nearly a month after the date specified in the March did file comments on the Office’s
however, does not include the exclusive rights to 11 Federal Register notice for filing comments. proposed interpretation of DiMA’s
make and distribute the sound recording itself. Nevertheless, the Office has considered its
These rights are held by the copyright owner of the comments since review of its comment has not
suggestion. Interestingly, the record
sound recording and must be cleared through a impeded the process nor caused any undue company representatives and the
separate transaction. See 17 U.S.C. 115(c)(3)(H). prejudice to the other interested parties. publishing interests representatives take

VerDate jul<14>2003 17:48 Jun 21, 2004 Jkt 203001 PO 00000 Frm 00031 Fmt 4700 Sfmt 4700 E:\FR\FM\22JNR1.SGM 22JNR1
34580 Federal Register / Vol. 69, No. 119 / Tuesday, June 22, 2004 / Rules and Regulations

diametrically opposed positions on particular song (which we feel is terms set forth in section 115 of the
whether a single notice covers all necessary for purposes of clarity and Copyright Act. The terms of the
configuration formats or whether sensible accounting in any event).’’ statutory license are set by Congress and
additional Notices need to be filed each Supplemental Statement Concerning are not subject to modification at will by
time the licensee expects to use the Regulations to be Promulgated by the the parties. Parties may use the statutory
musical work in a format not previously Copyright Office Relative to the license as a starting point, adopting
identified. Compulsory License Provisions of the those provisions that meet their needs
RIAA maintains that the current Copyright Act (section 115), submitted and modifying or eliminating those that
regulations already ‘‘permit a licensee by the Harry Fox Agency, Inc., May 26, do not. But, the result is a negotiated
under section 115 to rely upon a Notice 1977. RIAA opines that the Office license which varies from the section
of Intention that had been previously adopted HFA’s position and 115 statutory license in significant
served or filed to make DPDs.’’ It notes promulgated §§ 201.19(e)(3)(ii)(D) and ways.
that the Copyright Act recognizes a (f)(4), at least in part, to serve this NMPA and HFA, however, treat the
single compulsory license within purpose. These two provisions of the statutory and negotiated licenses as one
section 115 and covers the making and rules require that specific accounting and the same. Thus, they rely on the
distribution of a nondramatic musical information be reported separately for courts’ interpretation of voluntary
work by means of a digital audio each phonorecord configuration, thus license terms to inform the
transmission that results in a digital giving the publishers accurate and interpretation of similar statutory and
phonorecord delivery (‘‘DPD’’) and that timely information about the number regulatory provisions that govern the
the regulations treat DPDs as merely and types of phonorecords being made statutory license, but they fail to explain
another phonorecord configuration. and distributed under the compulsory how the courts’ interpretation of private
RIAA then turns to the regulatory text, license. commercial licenses relates to the
focusing on the provision that requires NMPA and HFA take a radically regulatory framework and the policy
the licensee to identify those different view of the current notice considerations which underlie the
phonorecord configurations already requirements. They now argue that any notice and accounting requirements
made and those expected to be made provision or interpretation which would adopted by the Register of Copyrights in
under the license. See 37 CFR allow the filing of a single Notice of 1980.
201.18(c)(1)(iv). It maintains that the Intention to cover format configurations The relevant question is whether the
phrase ‘‘expected to be made’’ does not beyond those identified on the notice, current regulations adopted in 1980
require absolute precision and that the ‘‘would disrupt longstanding industry require a compulsory licensee to file a
licensee need only provide the practice and conflict directly with new notice in the case where the
information ‘‘in good faith and on the established jurisprudence.’’ They licensee seeks to expand its use of the
basis of the best knowledge, maintain that it is standard industry section 115 license to cover
information, and belief of the person practice to require each licensee to phonorecord configurations not listed
signing the Notice. If so given, later specify the configuration for which the on the Notice of Intention to Use. A
developments affecting the accuracy of licensee seeks the license. They argue review of the comments and testimony
such information shall not affect the that the reason for imposing from the rulemaking proceeding by
validity of the Notice.’’ 37 CFR configuration limitations is to provide which the current regulations were
201.18(d)(3), as amended. According to the publishers with a means to track the promulgated show that the question
RIAA, these provisions when taken licensee’s use of the musical work and engendered some debate. During the
together do not require the filing of to insure that the appropriate royalty early phase of that proceeding,
subsequent notices merely because a rate attaches to the different publishers sought a rule that would
new type of phonorecord configuration configurations. In support of their require a licensee to file a separate
is being made and distributed under the position, NMPA and HFA cite two court notice for each separate type of
section 115 license. cases which held that the scope of a phonorecord configuration, but they
RIAA then cites to an HFA comment mechanical license was limited to the backed away from that position in their
offered during the initial rulemaking express terms of the license. See later comments. In Supplemental
proceeding,3 the purpose of which was Rodgers & Hammerstein Org. v. UMG Comments filed on May 26, 1977, the
to establish notice and recordkeeping Recordings, Inc., 00 Civ. 9322 (JSM), Harry Fox Agency stated its willingness
requirements for use of the section 115 2001 U.S. Dist. LEXIS 16111 (S.D.N.Y. to permit use of a single notice listing
license, where HFA stated that it could Sept. 26, 2001), and Fred Ahlert Music those configurations the licensee is
accept the filing of a single notice which Corp. v. Warner/Chappell Music, Inc., contemplating using at the time of
listed all phonorecord configurations 958 F. Supp. 170 (S.D.N.Y. 1997). service, provided that the licensee
contemplated at the time of the notice, Neither court, however, discusses the subsequently identified the use of new
provided that ‘‘the regulations insure terms of use applicable to a section 115 configurations on the accounting forms.
adequate notice of use of additional statutory license. They may have changed their position
forms to be filed for each type of The Office acknowledges that HFA in light of statements made by the
phonorecord configuration of a and NMPA offer a well-articulated Register of Copyrights during public
particular sound recording of a presentation of the current state of hearings held by the Copyright Office in
affairs with respect to mechanical April 1977. In her comments, the
3 This proceeding began on March 30, 1977, when licenses negotiated in the marketplace Register spoke directly to the question
the Copyright Office published a notice in the but finds that their discussion misses and made the observation that the
Federal Register, announcing public hearings to
receive testimony on substantive issues related to
the mark. As a primary matter, HFA and notice was to contain information that
formulating regulations concerning the form, NMPA overlook the fact that a voluntary ‘‘would be given as of the date that the
content and manner of service of notices of license negotiated in the marketplace Notice was filed, and there [was] no
intention and accounting statements. These between a willing buyer and a willing obligation that it be kept up-to-date.’’ In
hearings took place on April 26 and 27, 1977. 42
FR 16837 (March 30, 1977). It concluded nearly 21⁄2
seller are not the same as the license taking this position, she contrasted the
years later with the publication of final rules. 45 FR Congress granted to licensees who make lack of a legal requirement to update a
79038 (November 28, 1980). and distribute phonorecords under the notice served under section 115 with

VerDate jul<14>2003 17:48 Jun 21, 2004 Jkt 203001 PO 00000 Frm 00032 Fmt 4700 Sfmt 4700 E:\FR\FM\22JNR1.SGM 22JNR1
Federal Register / Vol. 69, No. 119 / Tuesday, June 22, 2004 / Rules and Regulations 34581

the notice requirements for use of the 115(b)(1) of the Copyright Act and acceptable proof for establishing the
cable compulsory license ‘‘where there offered proposed amendments to date of service. We agree and have made
is a requirement that it be kept up-to- § 201.18 to achieve this goal, while at the necessary changes to proposed
date.’’ Transcript of Second Hearing on the same time proposing limited § 201.18(f)(5) and to §§ 201.19(e)(7)(iv)
Implementation of the Copyright Law changes to § 201.19 in order to and (f)(7)(iv).
Revision, Docket No. 77–3, at 46. (April harmonize the service requirements He also suggested that the rules
26, 1977). between the two sections. See 66 FR expressly recognize use of a Delivery
Beyond the early exchanges, the 45241 (August 28, 2001). This notice Confirmation receipt as proof of the date
parties did not address the question expressly stated that the Office was not of service. We are unfamiliar with this
further and the Copyright Office issued considering further changes to § 201.19 service and decline to adopt the
interim regulations on December 29, in this proceeding. Id. at 45242. While suggestion to specifically list a Delivery
1977. 42 FR 64889 (December 29, 1977). we understand DiMA’s interest in Confirmation receipt as evidence of the
These regulations did not include any pursuing additional amendments in the date of service. Sections 201.18(f)(5) and
provision that would require a licensee interest of streamlining the reporting 201.19(e)(7)(iv), however, should not be
to submit a further formal notice to the process and will consider initiating a interpreted as listing the only acceptable
copyright owner of actual use beyond new rulemaking proceeding to address forms of proof. In fact, the last sentence
the initial notice that listed format these issues, we will not place the in these provisions leaves open the
configurations the licensee was using at current rulemaking on hold to consider possibility that the licensee may adduce
the time or expected to use in the future. new questions. The process with respect other evidence to establish the date of
The rules, however, did include, and to amending the rules to streamline the service. For that reason, we see no
still do, a requirement that the licensee process for serving notices under reason to list every possible means of
provide the accounting information § 201.18 has come to an end, and it is proof for establishing the date of service
specified in §§ 201.19(e)(3)(ii)(D) and in the interest of all parties that these and have only acknowledged the two
(f)(4)(i) for each phonorecord final rules be adopted without delay. specific means the parties have already
configuration actually made, thus As part of this proceeding, however, considered by virtue of the earlier
seeming to adopt the HFA suggestion for amendments have already been made to notices.
using statements of account to provide allow service of statements of account 3. Demand for electronic submission.
further information on actual use. by regular mail. See 37 CFR Adegbonmire has also offered comment
In light of the fact that the purpose of 201.19(e)(7)(i), (ii) and (f)(7)(i) and (iii). on the proposed regulation that would
the Notice of Intention is merely to give Formerly, these provisions required permit a copyright owner or its agent to
notice to the copyright owner of a service by certified mail or registered demand that a notice containing more
licensee’s intention to use the copyright mail, but they have been amended to than 50 titles of works be resubmitted in
owner’s musical work to make and allow for service ‘‘by mail or by an electronic format. He proposes
distribute phonorecords subject to the reputable courier service.’’ However, the setting the threshold at 25 titles rather
terms of the section 115 compulsory proposed rules did not include a than 50 to facilitate the process, though
license, additional notices to update provision to permit service of he does not state how it would do so.
information that was correct at the time statements of account by electronic Consequently, we see no reason to
of service are not part of the statutory delivery because this proceeding had reconsider the decision to set the
scheme. Once a notice is served, the not considered amendments to § 201.19 threshold at more than 50 titles.
copyright owner is on notice that the beyond those needed to provide the He also suggests that the rule itself
licensee will be using the identified licensee with options for sending the violates the statute because the rule
musical work to make phonorecords. Statements as currently prepared. The would allow a licensee to resubmit its
The licensee is then obligated to provide rules governing the Statements of notice in an electronic format within 30
specific information about the types and Account differ significantly from those days after receipt of the demand. We
numbers of phonorecords made and governing a Notice of Intention in that disagree. Provided that the initial notice
distributed as part of the monthly and they require the person signing the adheres to the rules and is served on the
annual statements of account, making it document to certify the accuracy of the copyright owner or its agent before or
unnecessary to file follow-up notices for information in the Statements of within 30 days of making, and before
this purpose. Account. Consequently, it would appear distributing any phonorecords of the
that the signature of the certifying listed works, then the licensee has
III. Additional Issues fulfilled the statutory requirement to
official constitutes a legal representation
1. Further revisions to § 201.19. DiMA on behalf of the licensee that should not serve notice. The request for an
offered no specific comment on the be dismissed lightly without comment electronic submission is a subsequent
three questions posed in the March 11 from the affected parties and, thus, requirement that must be met in
notice, but it has requested that the should be considered along with the accordance with the rules. The
Office modify § 201.19 as follows: (1) To other issues identified by DiMA and requirement itself does not raise
permit statements of account to be MRI in a separate rulemaking. questions of whether the filing is timely;
signed and delivered by the compulsory 2. Date of filing. Adegbonmire noted rather, it addresses compliance with
licensee or a duly authorized agent that the amended rules did not clarify format and submission requirements.
preparing the statement; (2) to eliminate that a receipt from a reputable courier Thus, failure to comply with the
the requirement for a handwritten indicating the date of attempted copyright owner’s demand for an
signature, given the ability to work delivery would be acceptable as electronic submission would constitute
through an agent; and (3) to permit evidence of the date of service, even a violation of the rules governing use of
service of the statements of account by though the March 11 notice stated that the license and could provide the basis
regular mail or electronic delivery. MRI such proof would be sufficient to for a copyright infringement suit.
requests the same three modifications. establish the date of service. He There being no other matters for
In the current rulemaking, the Office proposes amending proposed consideration, the Office is announcing
sought to amend its rules to expedite the § 201.18(f)(5) to include language final rules—incorporating the
filing of notices pursuant to section expressly stating that such receipt is amendments discussed—governing the

VerDate jul<14>2003 17:48 Jun 21, 2004 Jkt 203001 PO 00000 Frm 00033 Fmt 4700 Sfmt 4700 E:\FR\FM\22JNR1.SGM 22JNR1
34582 Federal Register / Vol. 69, No. 119 / Tuesday, June 22, 2004 / Rules and Regulations

filing of Notices of Intention to Use a work having more than one copyright (b) Agent. An agent who has been
section 115 license for the making and owner, any one of the copyright owners authorized to accept Notices of
distribution of phonorecords. is the same and that the information Intention in accordance with paragraph
required under paragraphs (d)(1)(i) (a)(4) of this section and who has
IV. Regulatory Flexibility Act
through (iv) of this section does not received a Notice of Intention on behalf
Although the Copyright Office, as a vary. For purposes of this section, a of a copyright owner shall provide
department of the Library of Congress Notice which lists multiple works shall within two weeks of the receipt of that
and part of the legislative branch, is not be considered a composite filing of Notice of Intention the name and
an ‘‘agency subject to the Regulatory multiple Notices and fees shall be paid address of the copyright owner or its
Flexibility Act,’’ 5 U.S.C. 601–612, the accordingly if filed in the Copyright agent upon whom the person or entity
Register of Copyrights has considered Office under paragraph (f) of this section intending to obtain the compulsory
the effect of the amendments to (i.e., a separate fee, in the amount set license shall serve Statements of
§§ 201.18 and 201.19 on individual forth in § 201.3(e)(1), shall be paid for Account and the monthly royalty in
authors and small entities. The Register each work listed in the Notice). accordance with § 201.19(a)(4).
has determined that the final regulations (3) For the purposes of this section, (c) Form. The Copyright Office does
will not have a significant economic the term copyright owner, in the case of not provide printed forms for the use of
impact on a substantial number of any work having more than one persons serving or filing Notices of
individual compulsory licensees or copyright owner, means any one of the Intention.
small entities that would require co-owners. (d) Content. (1) A Notice of Intention
provision of special relief for small (4) For the purposes of this section, shall be clearly and prominently
entities in the regulations, and that the service of a Notice of Intention on a designated, at the head of the notice, as
final regulations are, to the extent copyright owner may be accomplished a ‘‘Notice of Intention to Obtain a
consistent with the stated objectives of by means of service of the Notice on Compulsory License for Making and
applicable statutes, designed to either the copyright owner or an agent Distributing Phonorecords,’’ and shall
minimize any significant economic of the copyright owner with authority to include a clear statement of the
impact on small entities. receive the Notice. In the case where the following information:
work has more than one copyright (i) The full legal name of the person
List of Subjects in 37 CFR Part 201 owner, the service of the Notice on any or entity intending to obtain the
Copyright. one of the co-owners of the nondramatic compulsory license, together with all
musical work or upon an authorized fictitious or assumed names used by
Final Regulation agent of one of the co-owners identified such person or entity for the purpose of
■ In consideration of the foregoing, the in the Notice of Intention shall be conducting the business of making and
Copyright Office is amending part 201 of sufficient with respect to all co-owners. distributing phonorecords;
Notwithstanding paragraph (a)(2) of this (ii) The telephone number, the full
37 CFR as follows:
section, a single Notice may designate address, including a specific number
PART 201—GENERAL PROVISIONS works not owned by the same copyright and street name or rural route of the
owner in the case where the Notice is place of business, and an e-mail
■ 1. The authority citation for part 201 served on a common agent of multiple address, if available, of the person or
continues to read as follows: copyright owners, and where each of the entity intending to obtain the
Authority: 17 U.S.C. 702. works designated in the Notice is owned compulsory license, and if a business
■ 2. Section 201.18 is revised to read by any of the copyright owners who organization intends to obtain the
follows: have authorized that agent to receive compulsory license, the name and title
Notices. of the chief executive officer, managing
§ 201.18 Notice of intention to obtain a (5) For purposes of this section, a partner, sole proprietor or other person
compulsory license for making and copyright owner or an agent of a similarly responsible for the
distributing phonorecords of nondramatic copyright owner with authority to management of such entity. A post
musical works. receive Notices of Intention may make office box or similar designation will
(a) General. (1) A ‘‘Notice of public a written policy that it will not be sufficient for this purpose except
Intention’’ is a Notice identified in accept Notices of Intention to make and where it is the only address that can be
section 115(b) of title 17 of the United distribute phonorecords pursuant to 17 used in that geographic location.
States Code, and required by that U.S.C. 115 which include less than all (iii) The information specified in
section to be served on a copyright of the information required by this paragraphs (d)(1)(i) and (ii) of this
owner or, in certain cases, to be filed in section, in a form different than section for the primary entity expected
the Copyright Office, before or within required by this section, or delivered by to be engaged in the business of making
thirty days after making, and before means (including electronic and distributing phonorecords under
distributing any phonorecords of the transmission) other than those required the license or of authorizing such
work, in order to obtain a compulsory by this section. Any Notice provided in making and distribution (for example: a
license to make and distribute accordance with such policy shall not record company or digital music
phonorecords of nondramatic musical be rendered invalid for failing to comply service), if an entity intending to obtain
works. with the specific requirements of this the compulsory license is a holding
(2) A Notice of Intention shall be section. company, trust or other entity that is not
served or filed for nondramatic musical (6) For the purposes of this section, a expected to be actively engaged in the
works embodied, or intended to be digital phonorecord delivery shall be business of making and distributing
embodied, in phonorecords made under treated as a type of phonorecord phonorecords under the license or of
the compulsory license. A Notice of configuration, and a digital phonorecord authorizing such making and
Intention may designate any number of delivery shall be treated as a distribution;
nondramatic musical works, provided phonorecord manufactured, made, and (iv) The fiscal year of the person or
that the copyright owner of each distributed on the date the phonorecord entity intending to obtain the
designated work or, in the case of any is digitally transmitted. compulsory license. If that fiscal year is

VerDate jul<14>2003 17:48 Jun 21, 2004 Jkt 203001 PO 00000 Frm 00034 Fmt 4700 Sfmt 4700 E:\FR\FM\22JNR1.SGM 22JNR1
Federal Register / Vol. 69, No. 119 / Tuesday, June 22, 2004 / Rules and Regulations 34583

a calendar year, the Notice shall state accuracy of such information shall not at, that address. In these cases, the
that this is the case; affect the validity of the Notice. Copyright Office will specially mark its
(v) For each nondramatic musical (e) Signature. The Notice shall be records to consider the date the original
work embodied or intended to be signed by the person or entity intending Notice was mailed, or the date delivery
embodied in phonorecords made under to obtain the compulsory license or by by courier service was attempted, if
the compulsory license: a duly authorized agent of such person shown by the evidence mentioned
(A) The title of the nondramatic or entity. above, as the date of filing. An
musical work; (1) If the person or entity intending to acknowledgment of receipt and filing
(B) The name of the author or authors, obtain the compulsory license is a will be provided to the sender.
if known; corporation, the signature shall be that (3) If, with respect to the nondramatic
(C) A copyright owner of the work, if of a duly authorized officer or agent of musical works named in the Notice of
known; the corporation. Intention, the registration records or
(D) The types of all phonorecord (2) If the person or entity intending to other public records of the Copyright
configurations already made (if any) and obtain the compulsory license is a Office do not identify the copyright
expected to be made under the partnership, the signature shall be that owner of such work and include an
compulsory license (for example: single of a partner or of a duly authorized address for such owner, the Notice may
disk, long-playing disk, cassette, agent of the partnership. be filed in the Copyright Office. Notices
cartridge, reel-to-reel, a digital (3) If the Notice is signed by a duly
of Intention submitted for filing shall be
phonorecord delivery, or a combination authorized agent for the person or entity
accompanied by the fee specified in
of them); intending to obtain the compulsory
§ 201.3(e). A separate fee shall be
(E) The expected date of initial license, the Notice shall include an
affirmative statement that the agent is assessed for each title listed in the
distribution of phonorecords already
authorized to execute the Notice of Notice. Notices of Intention will be filed
made (if any) or expected to be made
Intention on behalf of the person or by being placed in the appropriate
under the compulsory license;
(F) The name of the principal entity intending to obtain the public records of the Licensing Division
recording artist or group actually compulsory license. of the Copyright Office. The date of
engaged or expected to be engaged in (4) If the Notice is served filing will be the date when the Notice
rendering the performances fixed on electronically, the person or entity and fee are both received in the
phonorecords already made (if any) or intending to obtain the compulsory Copyright Office. An acknowledgment
expected to be made under the license and the copyright owner shall of receipt and filing will be provided to
compulsory license; establish a procedure to verify that the the sender.
(G) The catalog number or numbers, Notice is being submitted upon the (4) Alternatively, if the person or
and label name or names, used or authority of the person or entity entity intending to obtain the
expected to be used on phonorecords intending to obtain the compulsory compulsory license knows the name
already made (if any) or expected to be license. and address of the copyright owner of
made under the compulsory license; (f) Filing and service. (1) If the the nondramatic musical work, or the
and registration records or other public agent of the copyright owner as
(H) In the case of phonorecords records of the Copyright Office identify described in paragraph (a)(4) of this
already made (if any) under the the copyright owner of the nondramatic section, the Notice of Intention may be
compulsory license, the date or dates of musical works named in the Notice of served on the copyright owner or the
such manufacture. Intention and include an address for agent of the copyright owner by sending
(vi) In the case where the Notice will such owner, the Notice may be served the Notice by mail or delivering it by
be filed with the Copyright Office on such owner by mail sent to, or by reputable courier service to the address
pursuant to paragraph (f)(3) of this reputable courier service at, the last of the copyright owner or agent of the
section, the Notice shall include an address for such owner shown by the copyright owner. For purposes of
affirmative statement that with respect records of the Office. It shall not be section 115(b)(1) of title 17 of the United
to the nondramatic musical work named necessary to file a copy of the Notice in States Code, the Notice will not be
in the Notice of Intention, the the Copyright Office in this case. considered properly served if the Notice
registration records or other public (2) If the Notice is sent by mail or is not sent to the copyright owner or the
records of the Copyright Office have delivered by reputable courier service to agent of the copyright owner as
been searched and found not to identify the last address for the copyright owner described in paragraph (a)(4) of this
the name and address of the copyright shown by the records of the Copyright section, or if the Notice is sent to an
owner of such work. Office and the Notice is returned to the incorrect address.
(2) A ‘‘clear statement’’ of the sender because the copyright owner is (5) If a Notice of Intention is sent by
information listed in paragraph (d)(1) of no longer located at the address or has certified mail or registered mail, a
this section requires a clearly refused to accept delivery, the original mailing receipt shall be sufficient to
intelligible, legible, and unambiguous Notice as sent shall be filed in the prove that service was timely. If a
statement in the Notice itself and Copyright Office. Notices of Intention Notice of Intention is delivered by a
without incorporation by reference of submitted for filing under this reputable courier, documentation from
facts or information contained in other paragraph (f)(2) shall be submitted to the courier showing the first date of
documents or records. the Licensing Division of the Copyright attempted delivery shall also be
(3) Where information is required to Office, shall be accompanied by a brief sufficient to prove that service was
be given by paragraph (d)(1) of this statement that the Notice was sent to the timely. In the absence of a receipt from
section ‘‘if known’’ or as ‘‘expected,’’ last address for the copyright owner the United States Postal Service
such information shall be given in good shown by the records of the Copyright showing the date of delivery or
faith and on the basis of the best Office but was returned, and may be documentation showing the first date of
knowledge, information, and belief of accompanied by appropriate evidence attempted delivery by a reputable
the person signing the Notice. If so that it was mailed to, or that delivery by courier, the compulsory licensee shall
given, later developments affecting the reputable courier service was attempted bear the burden of proving that the

VerDate jul<14>2003 17:48 Jun 21, 2004 Jkt 203001 PO 00000 Frm 00035 Fmt 4700 Sfmt 4700 E:\FR\FM\22JNR1.SGM 22JNR1
34584 Federal Register / Vol. 69, No. 119 / Tuesday, June 22, 2004 / Rules and Regulations

Notice of Intention was served in a ■ i. by revising paragraph (e)(7)(i); However, in the case where the licensee
timely manner. ■ j. by revising paragraph (e)(7)(ii)(A); has served its Notice of Intention upon
(6) If a Notice served upon a copyright ■ k. in paragraph (e)(7)(ii)(B), by an agent of the copyright owner
owner or an authorized agent of a removing the phrase ‘‘§ 202.19(e)(7)(ii)’’ pursuant to § 201.18, the licensee is not
copyright owner identifies more than 50 and adding ‘‘this paragraph (e)(7)(ii)’’ in required to serve Monthly Statements of
works that are embodied or intended to its place; Account or make any royalty payments
be embodied in phonorecords made ■ l. in paragraph (e)(7)(ii)(D), by until the licensee receives from the
under the compulsory license, the removing the phrase ‘‘this agent with authority to receive the
copyright owner or the authorized agent § 201.19(e)(7)(ii)’’ and adding ‘‘this Notice of Intention notice of the name
may send the person who served the paragraph (e)(7)(ii)’’ in its place; and address of the copyright owner or
Notice a demand that a list of each of ■ m. by adding a new paragraph its agent upon whom the licensee shall
the works so identified be resubmitted (e)(7)(iv); serve Monthly Statements of Account
in an electronic format, along with a ■ n. by revising paragraph (f)(3)(iii); and the monthly royalty fees. Upon
copy of the original Notice. The person ■ o. in paragraph (f)(4)(ii), by removing receipt of this information, the licensee
who served the Notice must submit the phrase ‘‘paragraphs (A) through (F) of shall serve Monthly Statements of
such a list, which shall include all of this § 201.19(f)(4)(i)’’ and adding Account and all royalty fees covering
the information required in paragraph ‘‘paragraphs (f)(4)(i)(A) through (F) of the intervening period upon the person
(d)(1)(v) of this section, within 30 days this section’’ in its place; or entity identified by the agent with
after receipt of the demand from the ■ p. in paragraph (f)(5), by removing the authority to receive the Notice of
copyright owner or authorized agent. phrase ‘‘[subject to paragraph Intention by or before the 20th day of
The list shall be submitted on magnetic (f)(3)(iii)(A)]’’; the month following receipt of the
disk or another medium widely used at ■ q. by revising paragraph (f)(7)(i); notification. It shall not be necessary to
the time for electronic storage of data, in ■ r. by revising paragraph (f)(7)(iii)(A); file a copy of the Monthly Statement in
the form of a flat file, word processing ■ s. in paragraph (f)(7)(iii)(B), by the Copyright Office.
document or spreadsheet readable with removing the phrase ‘‘§ 202.19(f)(7)(iii)’’ (ii)(A) In any case where a Monthly
computer software in wide use at such and adding ‘‘this paragraph (f)(7)(iii)’’ in Statement of Account is sent by mail or
time, with the required information its place; and reputable courier service and the
identified and/or delimited so as to be ■ t. by adding a new paragraph (f)(7)(iv). Monthly Statement of Account is
■ The revisions and additions to § 201.19
readily discernible. The list may be returned to the sender because the
submitted by means of electronic read as follows: copyright owner or agent is no longer
transmission (such as e-mail) if the § 201.19 Royalties and statements of located at that address or has refused to
demand from the copyright owner or account under compulsory license for accept delivery, or in any case where an
authorized agent states that such making and distributing phonorecords of address for the copyright owner is not
submission will be accepted. nondramatic musical works. known, the Monthly Statement of
(g) Harmless errors. Harmless errors (a) * * * Account, together with any evidence of
in a Notice that do not materially affect (3) For the purposes of this section, mailing or attempted delivery by courier
the adequacy of the information the term copyright owner, in the case of service, may be filed in the Licensing
required to serve the purposes of section any work having more than one Division of the Copyright Office. Any
115(b)(1) of title 17 of the United States copyright owner, means any one of the Monthly Statement of Account
Code, shall not render the Notice co-owners. submitted for filing in the Copyright
invalid. (4) For the purposes of this section, Office shall be accompanied by a brief
■ 3. Section 201.19 is amended as the service of a Statement of Account on statement of the reason why it was not
follows: a copyright owner under paragraph served on the copyright owner. A
■ a. by revising paragraph (a)(3); (e)(7) or (f)(7) of this section may be written acknowledgment of receipt and
■ b. by redesignating paragraphs (a)(4) accomplished by means of service on filing will be provided to the sender.
through (a)(11) as paragraph (a)(5) either the copyright owner or an agent * * * * *
through (a)(12), respectively; of the copyright owner with authority to (iv) If a Monthly Statement of
■ c. by adding a new paragraph (a)(4); receive Statements of Account on behalf Account is sent by certified mail or
■ d. by removing the phrase of the copyright owner. In the case registered mail, a mailing receipt shall
‘‘subparagraph (B) of this where the work has more than one be sufficient to prove that service was
§ 201.19(a)(5)(iii)’’ and adding copyright owner, the service of the timely. If a Monthly Statement of
‘‘paragraph (a)(7)(iii)(B) of this section’’ Statement of Account on one co-owner Account is delivered by a reputable
in its place each place it appears; or upon an agent of one of the co- courier, documentation from the courier
■ e. by removing the phrase ‘‘paragraph owners shall be sufficient with respect showing the first date of attempted
(B) of this § 201.19(a)(5)(iii)’’ and adding to all co-owners. delivery shall also be sufficient to prove
‘‘paragraph (a)(7)(iii)(B) of this section’’ * * * * * that service was timely. In the absence
in its place each place it appears; (e) * * * of a receipt from the United States
■ f. in newly designated paragraph (a)(7), (7) Service. (i) Each Monthly Postal Service showing the date of
by removing the phrase ‘‘paragraph Statement of Account shall be served on delivery or documentation showing the
(a)(5)’’ and adding ‘‘paragraph (a)(6) of the copyright owner or the agent with first date of attempted delivery by a
this section’’ in its place; authority to receive Monthly Statements reputable courier, the compulsory
■ g. in paragraph (c)(2)(iii), by removing of Account on behalf of the copyright licensee shall bear the burden of
the phrase ‘‘paragraph (a)(7)’’ and adding owner to whom or which it is directed, proving that the Monthly Statement of
‘‘paragraph (a)(10)’’ in its place; together with the total royalty for the Account was served in a timely manner.
■ h. in paragraph (d) introductory text, month covered by the Monthly (f) * * *
by removing the phrase ‘‘§ 201.19(a)(4)’’ Statement, by mail or by reputable (3) * * *
and adding ‘‘paragraph (a)(5) of this courier service on or before the 20th day (iii) If the compulsory licensee is a
section’’ in its place; of the immediately succeeding month. business organization, the name and

VerDate jul<14>2003 17:48 Jun 21, 2004 Jkt 203001 PO 00000 Frm 00036 Fmt 4700 Sfmt 4700 E:\FR\FM\22JNR1.SGM 22JNR1
Federal Register / Vol. 69, No. 119 / Tuesday, June 22, 2004 / Rules and Regulations 34585

title of the chief executive officer, Dated: June 7, 2004. DEPARTMENT OF HOMELAND
managing partner, sole proprietor or Marybeth Peters, SECURITY
other person similarly responsible for Register of Copyrights.
the management of such entity. Federal Emergency Management
* * * * *
So Approved. Agency
James H. Billington,
(7) Service. (i) Each Annual Statement 44 CFR Part 65
The Librarian of Congress.
of Account shall be served on the
copyright owner or the agent with [FR Doc. 04–14084 Filed 6–21–04; 8:45 am] [Docket No. FEMA–B–7446]
authority to receive Annual Statements BILLING CODE 1410–33–P
Changes in Flood Elevation
of Account on behalf of the copyright Determinations
owner to whom or which it is directed
by mail or by reputable courier service AGENCY: Federal Emergency
on or before the 20th day of the third DEPARTMENT OF VETERANS Management Agency (FEMA),
month following the end of the fiscal AFFAIRS Emergency Preparedness and Response
year covered by the Annual Statement. Directorate, Department of Homeland
It shall not be necessary to file a copy 38 CFR Part 4 Security.
of the Annual Statement in the ACTION: Interim rule.
Schedule for Rating Disabilities
Copyright Office. An Annual Statement
SUMMARY: This interim rule lists
of Account shall be served for each CFR Correction
fiscal year during which at least one communities where modification of the
Base (1% annual-chance) Flood
Monthly Statement of Account shall be ■ In Title 38 of the Code of Federal Elevations (BFEs) is appropriate because
served for each fiscal year during which Regulations, parts 0 to 17, revised as of of new scientific or technical data. New
at least one Monthly Statement of July 1, 2003, on page 420, § 4.114 is flood insurance premium rates will be
Account was required to have been corrected by removing the entry for calculated from the modified BFEs for
served under paragraph (e)(7) of this diagnostic code 7313. new buildings and their contents.
section.
[FR Doc. 04–55510 Filed 6–21–04; 8:45 am] DATES: These modified BFEs are
* * * * * currently in effect on the dates listed in
BILLING CODE 1505–01–D
(iii)(A) In any case where an Annual the table below and revise the Flood
Statement of Account is sent by mail or Insurance Rate Maps in effect prior to
by reputable courier service and is this determination for the listed
returned to the sender because the DEPARTMENT OF HEALTH AND communities.
copyright owner or agent is not located HUMAN SERVICES From the date of the second
at that address or has refused to accept publication of these changes in a
delivery, or in any case where an Centers for Medicare and Medicaid newspaper of local circulation, any
address for the copyright owner is not Services person has ninety (90) days in which to
known, the Annual Statement of request through the community that the
Account, together with any evidence of Mitigation Division Director for the
42 CFR Part 412
mailing or attempted delivery by courier Emergency Preparedness and Response
service, may be filed in the Licensing Prospective Payment Systems for Directorate reconsider the changes. The
Division of the Copyright Office. Any Inpatient Hospital Services modified BFEs may be changed during
Annual Statement of Account submitted the 90-day period.
for filing shall be accompanied by a CFR Correction ADDRESSES: The modified BFEs for each
brief statement of the reason why it was community are available for inspection
not served on the copyright owner. A ■ In Title 42 of the Code of Federal at the office of the Chief Executive
written acknowledgment of receipt and Regulations, parts 400 to 429, revised as Officer of each community. The
filing will be provided to the sender. of Oct. 1, 2003, on page 477, § 412.525 respective addresses are listed in the
* * * * * is corrected by adding paragraph (b) as table below.
follows: FOR FURTHER INFORMATION CONTACT:
(iv) If an Annual Statement of Doug Bellomo, P.E. Hazard
Account is sent by certified mail or § 412.525 Adjustments to the Federal Identification Section, Mitigation
registered mail, a mailing receipt shall prospective payment. Division, Emergency Preparedness and
be sufficient to prove that service was * * * * * Response Directorate, FEMA, 500 C
timely. If an Annual Statement of Street, SW., Washington, DC 20472,
Account is delivered by a reputable (b) Adjustments for Alaska and
Hawaii. CMS adjusts the Federal (202) 646–2903.
courier, documentation from the courier SUPPLEMENTARY INFORMATION: The
showing the first date of attempted prospective payment for the effects of a
higher cost of living for hospitals modified BFEs are not listed for each
delivery shall also be sufficient to prove community in this interim rule.
that service was timely. In the absence located in Alaska and Hawaii.
However, the address of the Chief
of a receipt from the United States * * * * * Executive Officer of the community
Postal Service showing the date of [FR Doc. 04–55511 Filed 6–21–04; 8:45 am] where the modified BFE determinations
delivery or documentation showing the are available for inspection is provided.
BILLING CODE 1505–01–D
first date of attempted delivery by a Any request for reconsideration must
reputable courier, the compulsory be based on knowledge of changed
licensee shall bear the burden of conditions or new scientific or technical
proving that the Annual Statement of data.
Account was served in a timely manner. The modifications are made pursuant
* * * * * to section 201 of the Flood Disaster

VerDate jul<14>2003 17:48 Jun 21, 2004 Jkt 203001 PO 00000 Frm 00037 Fmt 4700 Sfmt 4700 E:\FR\FM\22JNR1.SGM 22JNR1

You might also like