INTELLECTUAL PROPERTY RIGHTS

NATIONAL LEGISLATION - USA

Copyright Laws and Regulations

Regulations: Title 37, Chapters I (Subchapter C) and II, Code of Federal
Regulations

37 C.F.R. § 257.3   Content of claims. 

        (a) Claims filed by parties claiming to be entitled to satellite carrier compulsory license royalty fees shall include the following information: 

        (1) The full legal name of the person or entity claiming royalty fees. 

        (2) The telephone number, facsimile number, if any, and full address, including a specific number and street name or rural route, of the place of business of the person or entity.  

        (3) If the claim is a joint claim, a concise statement of the authorization of the filing of the joint claim, and the name of each claimant to the joint claim. For this purpose, a performing rights society shall not be required to obtain from its members or affiliates separate authorizations, apart from their standard membership or affiliate agreements, or to list the name of each of its members or affiliates in the joint claim. 

        (4) For individual claims, a general statement of the nature of the claimant's copyrighted works and identification of at least one secondary transmission by a satellite carrier of such works establishing a basis for the claim. For joint claims, a general statement of the nature of the joint claimants' copyrighted works and identification of at least one secondary transmission of one of the joint claimants' copyrighted works by a satellite carrier establishing a basis for the joint claim.  

        (b) Claims shall bear the original signature of the claimant or of a duly authorized representative of the claimant.  

        (c) In the event that the legal name and/or full address of the claimant changes after the filing of the claim, the claimant shall notify the Copyright Office of such change. If the good faith efforts of the Copyright Office to contact the claimant are frustrated because of failure to notify the Office of a name and/or address change, the claim may be subject to dismissal. 

        (d) [Removed. See 59 FR 63043, Dec. 7, 1994.]  

[54 FR 32811, Aug. 10, 1989, as amended at 56 FR 2438, Jan. 23, 1991; redesignated and revised at 59 FR 23994, May 9, 1994; 59 FR 63043, Dec. 7, 1994]

37 C.F.R. § 257.4   Compliance with statutory dates. 

        (a) Claims filed with the Copyright Office shall be considered timely filed only if:           

        (1) They are hand delivered, either by the claimant, the claimant's agent, or a private delivery carrier, to: Office of the Register of Copyrights, Room 403, James Madison Memorial Building, 101 Independence Avenue, SE., Washington, DC 20540, during normal business hours during the month of July; or 

        (2) They are addressed to: Copyright Arbitration Royalty Panel, P.O. Box 70977, Southwest Station, Washington, DC 20024, and are deposited with sufficient postage with the United States Postal Service and bear a July U.S. postmark. 

        (b) Notwithstanding subsection (a), in any year in which July 31 falls on a Saturday, Sunday, holiday, or other nonbusiness day within the District of Columbia or the Federal Government, claims received by the Copyright Office by the first business day in August, or properly addressed and deposited with sufficient postage with the United States Postal Service and postmarked by the first business day in August, shall be considered timely filed. 

        (c) Claims dated only with a business meter that are received after July 31, will not be accepted as having been timely filed.  

        (d) No claim may be filed by facsimile transmission.  

        (e) In the event that a properly addressed and mailed claim is not timely received by the Copyright Office, a claimant may nonetheless prove that the claim was properly filed if it was sent by certified mail return receipt requested, and the claimant can provide a receipt bearing a July date stamp of the U.S. Postal Service, except where paragraph (b) of this section applies. No affidavit of an officer or employee of the claimant, or of a U.S. postal worker will be accepted in lieu of the receipt.  

[54 FR 32811, Aug. 10, 1989, as amended at 56 FR 2438, Jan. 23, 1991; redesignated and revised at 59 FR 23994, May 9, 1994; 59 FR 63043, Dec. 7, 1994; 61 FR 63715, 63718, Dec. 2, 1996; 63 FR 30634, 30636, June 5, 1998] 

 37 C.F.R. § 257.5   Copies of claims.  

        A claimant shall, for each claim submitted to the Copyright Office, file an original and two copies of the claim to satellite carrier royalty fees. 

[54 FR 32811, Aug. 10, 1989; redesignated and revised at 59 FR 23994, May 9, 1994]  

37 C.F.R. § 257.6   Separate claims required. 

        If a party intends to file claims for both cable compulsory license and satellite carrier compulsory license royalty fees during the same month of July, that party must file separate claims with the Copyright Office. Any single claim which purports to file for both cable and satellite carrier royalty fees will be dismissed. 

[54 FR 32811, Aug. 10, 1989; redesignated and revised at 59 FR 23994, May 9, 1994]  

37 C.F.R. § 258.1   General.  

        This part 258 adjusts the rates of royalties payable under the compulsory license for the secondary transmission of broadcast stations under 17 U.S.C. 119. 

[57 FR 19053, May 1, 1992; redesignated and amended at 59 FR 23994, May 9, 1994; 63 FR 30634, 30636, June 5, 1998] 

37 C.F.R. § 258.2   Definition of syndex-proof signal.  

        A satellite retransmission of a broadcast signal shall be deemed “syndex-proof” for purposes of § 258.3(b) if, during any semiannual reporting period, the retransmission does not include any program which, if delivered by any cable system in the United States, would be subject to the syndicated exclusivity rules of the Federal Communications Commission.  

[57 FR 19053, May 1, 1992; redesignated and amended at 59 FR 23994, May 9, 1994]  

37 C.F.R. § 258.3   Royalty fee for secondary transmission of broadcast stations by satellite carriers. 

        (a) Commencing May 1, 1992, the royalty rate for the secondary transmission of broadcast stations for private home viewing by satellite carriers shall be as follows: 

        (1) 17.5 cents per subscriber per month for superstations. 

        (2) 14 cents per subscriber per month for superstations whose signals are syndex-proof, as defined in § 258.2.  

        (3) 6 cents per subscriber per month for network stations and noncommercial educational stations.  

        (b) Commencing January 1, 1998, the royalty fee for secondary transmission of broadcast stations for private home viewing by satellite carriers shall be as follows: 

        (1) 27 cents per subscriber per month for distant superstations. 

        (2) 27 cents per subscriber per month for distant network stations. 

        (3) No royalty rate (zero) for a superstation secondarily transmitted within the station's local market, as defined in 17 U.S.C. 119(d)(11). 

        (4) No royalty rate (zero) for a network station secondarily transmitted within the station's local market, as defined in 17 U.S.C. 119(d)(11), to subscribers residing in unserved households, as defined in 17 U.S.C. 119(d)(10). 

[57 FR 19053, May 1, 1992, as redesignated at 59 FR 23994, May 9, 1994; 62 FR 55742, 55759, Oct. 28, 1997] 

37 C.F.R. § 259.1   General.  

        This part prescribes procedures pursuant to 17 U.S.C. 1007(a)(1), whereby interested copyright parties, as defined in 17 U.S.C. 1001(7), claiming to be entitled to royalty payments made for the importation and distribution in the United States, or the manufacture and distribution in the United States, of digital audio recording devices and media pursuant to 17 U.S.C. 1006, shall file claims with the copyright arbitration royalty panel and/or Librarian of Congress. 

[58 FR 6445, Jan. 29, 1993; redesignated and amended at 59 FR 23994, May 9, 1994, as corrected at 59 FR 33202, June 28, 1994; 60 FR 8198, Feb. 13, 1995]  

37 C.F.R. § 259.2   Time of filing.  

        (a) General. During January and February of each succeeding year, every interested copyright party claiming to be entitled to digital audio recording devices and media royalty payments made for quarterly periods ending during the previous calendar year shall file a claim with the Copyright Office. Claimants may file claims jointly or as a single claim.  

        (b) Consequences of an untimely filing. No royalty payments for the previous calendar year shall be distributed to any interested copyright party who has not filed a claim to such royalty payments during January or February of the following calendar year. 

        (c) Authorization. Any organization or association, acting as a common agent, shall be required to obtain from its members or affiliates separate, specific, and written authorization, signed by members, affiliates, or their representatives, to file claims to the Musical Works Fund or the Sound Recording Fund, apart from their standard agreements, for purposes of royalties filing and fee distribution. Such written authorization, however, will not be required for claimants to the Musical Works Fund where either:  

        (1) The agreement between the organization or association and its members or affiliates specifically authorizes such entity to represent its members or affiliates before the Copyright Office and/or the Copyright Arbitration Royalty Panels in royalty filing and fee distribution proceedings; or 

        (2) The agreement between the organization or association and its members or affiliates, as specified in a court order issued by a court with authority to interpret the terms of the contract, authorizes such entity to represent its members or affiliates before the Copyright Office and/or Copyright Arbitration Royalty Panels in royalty filing and fee distribution proceedings. 

[58 FR 6445, Jan. 29, 1993; redesignated and amended at 59 FR 23994, May 9, 1994, as corrected at 59 FR 33202, June 28, 1994; suspended at 59 FR 63045, Dec. 7, 1994; 60 FR 8198, Feb. 13, 1995; 60 FR 61657, 61660, Dec. 1, 1995; 61 FR 63715, 63718, Dec. 2, 1996] 

37 C.F.R. § 259.3   Content of claims. 

        (a) Claims filed by interested copyright parties for digital audio recording devices and media royalty payments shall include the following information: 

        (1) The full legal name of the person or entity claiming royalty payments. 

        (2) The telephone number, facsimile number, if any, and full address, including a specific number and street name or rural route, of the place of business of the person or entity.  

        (3) A statement as to how the claimant fits within the definition of interested copyright party specified in 17 U.S.C. 1001(7).  

        (4) A statement as to whether the claim is being made against the Sound Recordings Fund or the Musical Works Fund, as set forth in 17 U.S.C. 1006(b) and as to which Subfund of the Sound Recordings Fund (i.e., the copyright owners or featured recording artists Subfund) or the Musical Works Fund (i.e., the music publishers or writers Subfund) the claim is being made against as set forth in 17 U.S.C. 1006(b) (1) and (2).  

        (5) Identification, establishing a basis for the claim, of at least one musical work or sound recording embodied in a digital musical recording or an analog musical recording lawfully made under title 17 U.S.C. that has been distributed (as that term is defined in 17 U.S.C. 1001(6)), and that, during the period to which the royalty payments claimed pertain, has been 

        (i) Distributed (as that term is defined in 17 U.S.C. 1001(6)) in the form of digital musical recordings or analog musical recordings, or 

        (ii) Disseminated to the public in transmissions. 

        (b) Claims shall bear the original signature of the claimant or of a duly authorized representative of the claimant.  

        (c) In the event that the legal name and/or address of the claimant changes after the filing of the claim, the claimant shall notify the copyright arbitration royalty panel and/or Librarian of Congress of such change. If the good faith efforts of the copyright arbitration royalty panel and/or Librarian of Congress to contact the claimant are frustrated because of failure to notify the Office of a name and/or address change, the claim may be subject to dismissal. 

        (d) If the claim is a joint claim, a concise statement of the authorization for the filing of the joint claim, and the name of each claimant to the joint claim. 

[58 FR 6445, Jan. 29, 1993; redesignated and amended at 59 FR 23994, May 9, 1994, as corrected at 59 FR 33202, June 28, 1994; 59 FR 63043, Dec. 7, 1994; 60 FR 8198, Feb. 13, 1995]  

37 C.F.R. § 259.4   Compliance with statutory dates. 

        Claims filed with the copyright arbitration royalty panel and/or Librarian of Congress shall be considered timely filed only if:  

        (a) They are received in the offices of the copyright arbitration royalty panel and/or Librarian of Congress during normal business hours during the months of January or February, or  

        (b) They are properly addressed to the copyright arbitration royalty panel and/or Librarian of Congress, 1825 Connecticut Avenue, NW., suite 918, Washington, DC 20009 and they are deposited with sufficient postage with the United States Postal Service and bear a January or February U.S. postmark. Claims dated only with a business meter that are received after the last day of February will not be accepted as having been timely filed. No claim may be filed by facsimile transmission. 

        (c) No notice may be filed by facsimile transmission.  

[58 FR 6445, Jan. 29, 1993; redesignated and amended at 59 FR 23994, May 9, 1994, as corrected at 59 FR 33202, June 28, 1994; 60 FR 8198, Feb. 13, 1995]  

37 C.F.R. § 259.5   Compliance with statutory dates. 

        (a) Claims filed with the Copyright Office shall be considered timely filed only if: 

        (1) They are hand delivered, either by the claimant, the claimant's agent, or a private delivery carrier, to: Office of the Register of Copyrights, Room 403, James Madison Memorial Building, 101 Independence Avenue SE., Washington, DC 20540, during normal business hours during the month of January or February; or 

        (2) They are addressed to: Copyright Arbitration Royalty Panel, P.O. Box 70977, Southwest Station, Washington, DC 20024, and are deposited with sufficient postage with the United States Postal Service and bear a January or February U.S. postmark. 

        (b) Notwithstanding subsection (a), in any year in which the last day of February falls on Saturday, Sunday, a holiday, or other nonbusiness day within the District of Columbia or the Federal Government, claims received by the Copyright Office by the first business day in March, or properly addressed and deposited with sufficient postage with the United States Postal Service and postmarked by the first business day in March, shall be considered timely filed. 

        (c) Claims dated only with a business meter that are received after the last day of February, will not be accepted as having been timely filed. 

        (d) No claim may be filed by facsimile transmission.  

        (e) In the event that a properly addressed and mailed claim is not timely received by the Copyright Office, a claimant may nonetheless prove that the claim was properly filed if it was sent by certified mail return receipt requested, and the claimant can provide a receipt bearing a January or February date stamp of the U.S. Postal Service, except where paragraph (b) of this section applies. No affidavit of an officer or employee of the claimant, or of a U.S. postal worker will be accepted in lieu of the receipt.  

[58 FR 6445, Jan. 29, 1993; redesignated and revised at 59 FR 23994, May 9, 1994; 59 FR 63043, Dec. 7, 1994; 61 FR 63715, 63718, Dec. 2, 1996; 63 FR 30634, 30636, June 5, 1998]

37 C.F.R. § 259.6   Copies of claims. 

        A claimant shall, for each claim submitted to the Copyright Office, file an original and two copies of the claim to digital audio recording devices and media royalty payments. 

[59 FR 23995, May 9, 1994]  

37 C.F.R. § 260.1   General. 

        (a) This part 260 establishes terms and rates of royalty payments for the public performance of sound recordings by nonexempt subscription digital transmission services in accordance with the provisions of 17 U.S.C. 114 and 801(b)(1). 

        (b) Upon compliance with 17 U.S.C. 114 and the terms and rates of this part, a nonexempt subscription digital transmission service may engage in the activities set forth in 17 U.S.C. 114. 

[63 FR 25394, 25413, May 8, 1998]  

37 C.F.R. § 260.2   Royalty fees for the digital performance of sound recordings.  

        (a) Commencing June 1, 1998, the royalty fee for the digital performance of sound recordings by nonexempt subscription digital services shall be 6.5% of gross revenues resulting from residential services in the United States. 

        (b) A nonexempt subscription digital transmission service (the “Licensee”) shall pay a late fee of 1.5% per month, or the highest lawful rate, whichever is lower, for any payment received after the due date. Late fees shall accrue from the due date until payment is received.  

        (c)        

        (1) For purposes of this section, gross revenues shall mean all monies derived from the operation of the programming service of the Licensee and shall be comprised of the following:  

        (i) Monies received by Licensee from Licensee's carriers and directly from residential U.S. subscribers for Licensee's programming service; 

        (ii) Licensee's advertising revenues (as billed), or other monies received from sponsors if any, less advertising agency commissions not to exceed 15% of those fees incurred to recognized advertising agency not owned or controlled by Licensee; 

        (iii) Monies received for the provision of time on the Programming Service to any third party; 

        (iv) Monies received from the sale of time to providers of paid programming such as infomercials;  

        (v) Where merchandise or anything or service of value is received by licensee in lieu of cash consideration for the use of Licensee's programming service, the fair market value thereof or Licensee's prevailing published rate, whichever is less; 

        (vi) Monies or other consideration received by Licensee from Licensee's carriers, but not including monies received by Licensee's carriers from others and not accounted for by Licensee's carriers to Licensee, for the provision of hardware by anyone and used in connection with the Programming Service; 

        (vii) Monies or other consideration received for any references to or inclusion of any product or service on the programming service; and

        (viii) Bad debts recovered regarding paragraphs (c)(1) (i) through (vii) of this section. 

        (2) Gross revenues shall include such payments as are in paragraphs (c)(1) (i) through (viii) of this section to which Licensee is entitled but which are paid to a parent, subsidiary, division, or affiliate of Licensee, in lieu of payment to Licensee but not including payments to Licensee's carriers for the programming service. Licensee shall be allowed a deduction from “gross revenues” as defined in paragraph (c)(1) of this section for affiliate revenue returned during the reporting period and for bad debts actually written off during reporting period. 

        (d) During any given payment period, the value of each performance of each digital sound recording shall be the same.  

[63 FR 25394, 25414, May 8, 1998] 

37 C.F.R. § 260.3   Terms for making payment of royalty fees. 

        (a) All royalty payments shall be made to a designated agent(s), to be determined by the parties through voluntary license agreements or by a duly appointed Copyright Arbitration Royalty Panel pursuant to the procedures set forth in subchapter B of 37 CFR, part 251.  

        (b) Payment shall be made on the twentieth day after the end of each month for that month, commencing with the month succeeding the month in which the royalty fees are set. 

        (c) The agent designated to receive the royalty payments and the statements of account shall have the responsibility of making further distribution of these fees to those parties entitled to receive such payment according to the provisions set forth at 17 U.S.C. 114(g).  

        (d) The designated agent may deduct reasonable costs incurred in the administration of the distribution of the royalties, so long as the reasonable costs do not exceed the actual costs incurred by the collecting entity. 

        (e) Commencing June 1, 1998, and until such time as a new designation is made, the Recording Industry Association of America, Inc. shall be the agent receiving royalty payments and statements of account.  

[63 FR 25394, 25414, May 8, 1998; 63 FR 30634, 30636, June 5, 1998] 

37 C.F.R. § 260.4   Confidential information and statements of account. 

        (a) For purposes of this part, confidential information shall include statements of account and any information pertaining to the statements of account designated as confidential by the nonexempt subscription digital transmission service filing the statement. Confidential information shall also include any information so designated in a confidentiality agreement which has been duly executed between a nonexempt subscription digital transmission service and an interested party, or between one or more interested parties; Provided that all such information shall be made available, for the verification proceedings provided for in §§ 260.5 and 260.6 of this part.  

        (b) Nonexempt subscription digital transmission services shall submit monthly statements of account on a form provided by the agent designated to collect such forms and the monthly royalty payments.  

        (c) A statement of account shall include only such information as is necessary to verify the accompanying royalty payment. Additional information beyond that which is sufficient to verify the calculation of the royalty fees shall not be included on the statement of account.  

        (d) Access to the confidential information pertaining to the royalty payments shall be limited to: 

        (1) Those employees of the designated agent who are not also employees or officers of a sound recording copyright owner or performing artist, and who, for the purpose of performing their assigned duties during the ordinary course of business, require access to the records; and  

        (2) An independent and qualified auditor who is not an employee or officer of a sound recording copyright owner or performing artist, but is authorized to act on behalf of the interested copyright owners with respect to the verification of the royalty payments.  

        (e) The designated agent shall implement procedures to safeguard all confidential financial and business information, including but not limited to royalty payments, submitted as part of the statements of account. Confidential information shall be maintained in locked files.  

        (f) Books and records relating to the payment of the license fees shall be kept in accordance with generally accepted accounting principles for a period of three years. These records shall include, but are not limited to, the statements of account, records documenting an interested party's share of the royalty fees, and the records pertaining to the administration of the collection process and the further distribution of the royalty fees to those interested parties entitled to receive such fees.  

[63 FR 25394, 25414, May 8, 1998] 

37 C.F.R. § 260.5   Verification of statements of account. 

        (a) General. This section prescribes general rules pertaining to the verification of the statements of account by interested parties according to terms promulgated by a duly appointed copyright arbitration royalty panel, under its authority to set reasonable terms and rates pursuant to 17 U.S.C. and 801(b)(1), and the Librarian of Congress under his authority pursuant to 17 U.S.C. 802(f). 

        (b) Frequency of verification. Interested parties may conduct a single audit of a nonexempt subscription digital transmission service during any given calendar year. 

        (c) Notice of intent to audit. Interested parties must submit a notice of intent to audit a particular service with the Copyright Office, which shall publish in the Federal Register a notice announcing the receipt of the notice of intent to audit within 30 days of the filing of the interested parties' notice. Such notification of intent to audit shall also be served at the same time on the party to be audited. 

        (d) Retention of records. The party requesting the verification procedure shall retain the report of the verification for a period of three years. 

        (e) Acceptable verification procedure. An audit, including underlying paperwork, which was performed in the ordinary course of business according to generally accepted auditing standards by an independent auditor, shall serve as an acceptable verification procedure for all parties.  

        (f) Costs of the verification procedure. The interested parties requesting the verification procedure shall pay for the cost of the verification procedure, unless an independent auditor concludes that there was an underpayment of five (5) percent or more; in which case, the service which made the underpayment shall bear the costs of the verification procedure.  

        (g) Interested parties. For purposes of this section, interested parties are those copyright owners who are entitled to receive royalty fees pursuant to 17 U.S.C. 114(g), their designated agents, or the entity designated by the copyright arbitration royalty panel in 37 CFR 260.3 to receive and to distribute the royalty fees. 

[63 FR 25394, 25414, May 8, 1998]

37 C.F.R. § 260.6   Verification of royalty payments. 

        (a) General. This section prescribes general rules pertaining to the verification of the payment of royalty fees to those parties entitled to receive such fees, according to terms promulgated by a duly appointed copyright arbitration royalty panel, under its authority to set reasonable terms and rates pursuant to 17 U.S.C. 114 and 801(b)(1), and the Librarian of Congress under his authority pursuant to 17 U.S.C. 802(f).  

        (b) Frequency of verification. Interested parties may conduct a single audit of the entity making the royalty payment during any given calendar year. 

        (c) Notice of intent to audit. Interested parties must submit a notice of intent to audit the entity making the royalty payment with the Copyright Office, which shall publish in the Federal Register a notice announcing the receipt of the notice of intent to audit within 30 days of the filing of the interested parties' notice. Such notification of interest shall also be served at the same time on the party to be audited.  

        (d) Retention of records. The party requesting the verification procedure shall retain the report of the verification for a period of three years. 

        (e) Acceptable verification procedure. An audit, including underlying paperwork, which was performed in the ordinary course of business according to generally accepted auditing standards by an independent auditor, shall serve as an acceptable verification procedure for all parties.  

        (f) Costs of the verification procedure. The interested parties requesting the verification procedure shall pay for the cost of the verification procedure, unless an independent auditor concludes that there was an underpayment of five (5) percent or more; in which case, the entity which made the underpayment shall bear the costs of the verification procedure.  

        (g) Interested parties. For purposes of this section, interested parties are those copyright owners who are entitled to receive royalty fees pursuant to 17 U.S.C. 114(g), or their designated agents.  

[63 FR 25394, 25415, May 8, 1998] 

37 C.F.R. § 260.7   Unknown copyright owners. 

        If the designated collecting agent is unable to identify or locate a copyright owner who is entitled to receive a royalty payment under this part, the collecting agent shall retain the required payment in a segregated trust account for a period of three years from the date of payment. No claim to such payment shall be valid after the expiration of the three year period. After the expiration of this period, the collecting agent may use the unclaimed funds to offset the cost of the administration of the collection and distribution of the royalty fees. 

[63 FR 25394, 25415, May 8, 1998]