Rates and Terms for Statutory License for Eligible Nonsubscription Services

On December 24, 2002, the Copyright Office published in the Federal Register an agreement negotiated between Sound Exchange and Voice of Webcasters, which sets rates and terms for the reproduction and performance of sound recordings by small commercial webcasters under the section 112 and section 114 statutory licenses pursuant to the SWSA. Small commercial webcasters who meet the eligibility requirements may choose to operate under the statutory licenses in accordance with the rates and terms set forth in the negotiated agreement; or they may operate under the statutory licenses in accordance with the rates and terms adopted by the Librarian on June 20, 2002. (Read agreement, as published.)

President Signs into Law the Small Webcaster Settlement Act of 2002 (SWSA)

On December 4, 2002, President Bush signed into law the Small Webcaster Settlement Act of 2002. The act allows Sound Exchange, the receiving agent designated in the Librarian’s June 20 order, to enter into agreements on behalf of all copyright owners and performers to set rates, terms and conditions for noncommercial webcasters and small webcasters for the public performance of a sound recording under a section 114 license and the making of ephemeral recordings under the section 112 license. The act also defers the obligation of noncommercial webcasters to make payments not already made until June 20, 2003; and it allows Sound Exchange to enter into agreements on behalf of all copyright owners and performers to delay the payment obligation of small webcasters up to December 15, 2002. (Read the act PDF HTML)

Office Requests Notices of Intent to Participate and Comments and Proposals on CARP Scheduling

On November 20, 2002, the Copyright Office of the Library of Congress will publish in the Federal Register a notice requesting Notices of Intent to Participate in a CARP proceeding the purpose of which is to set rates and terms for the statutory licenses that allow eligible nonsubscription services to make certain digital audio transmissions of sound recordings during the 2003-2004 license period. Notices of Intention shall be due on or before December 23, 2002. The notice also requests written comments and proposals for the scheduling of three different Copyright Arbitration Royalty Panel (CARP) proceedings to adjust royalty rates and terms under provisions of the Copyright Act governing ephemeral recordings and digital transmissions of performances of sound recordings. The written comments shall be due on or before December 2, 2002. (Read the notice).

Librarian of Congress Denies Motion for Stay of Webcasting Rates

The Librarian of Congress, on the recommendation of the Register of Copyrights, has denied a motion by Live365.com Inc. for a stay of the Final Rule and Order published July 8, 2002, that established rates and terms for the statutory license for eligible nonsubscription services to perform sound recordings publicly by means of digital audio transmissions ("webcasting") and the statutory license to make ephemeral recordings of sound recordings to facilitate such public performances. (Read the order.)

Register of Copyrights Denies Broadcasters' Motion for a Stay

On October 10, 2002, the Register of Copyrights denied an application by a number of broadcasters for a stay of the December 11, 2000, Final Rule that clarified that the retransmission of an AM/FM broadcast signal over the Internet is not exempt from the limited digital performance right for sound recordings. Broadcasters had sought the stay because they believed it would relieve them from the requirement to pay statutory royalties beginning October 20, 2002. (Read the order.)

Statements of Account Now Available from SoundExchange

SoundExchange, the Receiving Agent designated by the Librarian of Congress to receive royalty payments from eligible nonsubscription services, has made available on its website the Statements of Account that must accompany royalty payments.

Final rule and order as prepared for published in the Federal Register

Summary of the Librarian's Determination