[Federal Register: November 1, 1995 (Volume 60, Number 211)]
[Rules and Regulations]
[Page 55458-55459]
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LIBRARY OF CONGRESS
Copyright Office
37 CFR Part 255
[Docket No. 95-2 CARP]
Cost of Living Adjustment of the Mechanical Royalty Rate
AGENCY: Copyright Office, Library of Congress.
ACTION: Final rule.
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SUMMARY: The Copyright Office announces an adjustment of the mechanical
royalty rate based on the change in the Consumer Price Index from
September 1993 to September 1995. The rate is increased to either 6.95
cents, or 1.3 cents per minute of playing time or fraction thereof,
whichever is larger.
EFFECTIVE DATE: January 1, 1996.
FOR FURTHER INFORMATION CONTACT: Marilyn J. Kretsinger, Acting General
Counsel, or Tanya M. Sandros, Copyright Arbitration Royalty Panel, P.O.
Box 70977, Southwest Station, Washington, D.C. 20024. Telephone: (202)
707-8380. Telefax: (202) 707-8366.
SUPPLEMENTARY INFORMATION: In 1987, the Copyright Royalty Tribunal
adopted the joint proposal submitted by the National Music Publishers'
Association, The Songwriters Guild of America and the Recording
Industry Association of America, Inc. to make adjustments every two
years to the mechanical royalty rate based upon changes in the Consumer
Price Index (CPI), except: (1) when the CPI declined, in which case the
mechanical rate could go no lower than the rates in effect in 1986-
1987; and (2) when the CPI increased by more than 25%, in which case
the rate increase
[[Page 55459]]
would be no greater than 25%. 52 FR 22637 (June 15, 1987). Corrected to
clarify the adjustment to the mechanical rate when the CPI declined. 52
FR 23546 (June 23, 1987).
On December 17, 1993, the Copyright Royalty Tribunal was abolished
by Congress. Copyright Royalty Tribunal Reform Act of 1993 (CRT Reform
Act), Pub. L. 103-198, 107 Stat. 2304. The CRT Reform Act directed the
Library of Congress and the Copyright Office to adopt the rules and
regulations of the CRT as found at 37 CFR chapter 3. 17 U.S.C. 802(d).
The Office subsequently reissued the CRT regulations on December 22,
1993. 58 FR 67690 (December 22, 1993).
Former 37 CFR 307.3, which calls for a biannual cost of living
adjustment to the mechanical royalty rate, was renumbered 37 CFR 255.3
in a later action. 59 FR 23964 (May 9, 1994).
Accordingly, the Copyright Office announces that the change in the
cost of living as determined by the Consumer Price Index (all urban
consumers, all items) is 5.58% (September 1993's Index was 145.1 and
September 1995's Index was 153.2, with 1982-1984=100 as a reference
base). The current mechanical rate is 6.60 cents, or 1.25 cents per
minute of playing time or fraction thereof, whichever amount is larger.
Adjusting that rate upward by 5.58% and rounding off the results to the
nearest \1/20\th of a cent, the new rate, effective January 1, 1996,
shall be 6.95 cents, or 1.3 cents per minute of playing time or
fraction thereof, whichever amount is larger. Section 255.3 is revised
as shown below.
List of Subjects in 37 CFR Part 255
Copyright, Music recordings.
For the reasons set forth in the preamble, the Copyright Office
amends 37 CFR 255.3 as follows:
PART 255--ADJUSTMENT OF ROYALTY PAYABLE UNDER COMPULSORY LICENSE
FOR MAKING AND DISTRIBUTING PHONORECORDS
1. The authority citation for Part 255 continues to read as
follows:
Authority: 17 U.S.C. 801(b)(1) and 803.
2. Section 255.3 is revised to read as follows:
Sec. 255.3 Adjustment of Royalty Rate.
(a) For every phonorecord made and distributed on or after January
1, 1983, the royalty rate payable with respect to each work embodied in
the phonorecord shall be either 4.25 cents, or 0.8 cent per minute of
playing time or fraction thereof, whichever amount is larger, subject
to further adjustment pursuant to paragraphs (b), (c), (d), (e), (f),
(g), and (h) of this section.
(b) For every phonorecord made and distributed on or after July 1,
1984, the royalty rate payable with respect to each work embodied in
the phonorecord shall be either 4.5 cents, or 0.85 cent per minute of
playing time or fraction thereof, whichever amount is larger, subject
to further adjustment pursuant to paragraphs (c), (d), (e), (f), (g),
and (h) of this section.
(c) For every phonorecord made and distributed on or after January
1, 1986, the royalty rate payable with respect to each work embodied in
the phonorecord shall be either 5.0 cents, or 0.95 cent per minute of
playing time or fraction thereof, whichever amount is larger, subject
to further adjustment pursuant to paragraphs (d), (e), (f), (g), and
(h) of this section.
(d) For every phonorecord made and distributed on or after January
1, 1988, the royalty rate payable with respect to each work embodied in
the phonorecord shall be either 5.25 cents, or 1.0 cent per minute of
playing time or fraction thereof, whichever amount is larger, subject
to further adjustment pursuant to paragraphs (e), (f), (g), and (h) of
this section.
(e) For every phonorecord made and distributed on or after January
1, 1990, the royalty rate payable with respect to each work embodied in
the phonorecord shall be either 5.7 cents, or 1.1 cents per minute of
playing time or fraction thereof, whichever amount is larger, subject
to further adjustment pursuant to paragraphs (f), (g), and (h) of this
section.
(f) For every phonorecord made and distributed on or after January
1, 1992, the royalty rate payable with respect to each work embodied in
the phonorecord shall be either 6.25 cents, or 1.2 cents per minute of
playing time or fraction thereof, whichever amount is larger, subject
to further adjustment pursuant to paragraphs (g), and (h) of this
section.
(g) For every phonorecord made and distributed on or after January
1, 1994, the royalty rate payable with respect to each work embodied in
the phonorecord shall be either 6.6 cents, or 1.25 cents per minute of
playing time or fraction thereof, whichever amount is larger, subject
to further adjustment pursuant to paragraph (h) of this section.
(h) For every phonorecord made and distributed on or after January
1, 1996, the royalty rate payable with respect to each work embodied in
the phonorecord shall be either 6.95 cents, or 1.3 cents per minute of
playing time or fraction thereof, whichever amount is larger.
Dated: October 24, 1995.
Marybeth Peters,
Register of Copyrights.
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