Copyright Royalty Board News, Issue 201

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November 20, 2018
Issue 201

COPYRIGHT ROYALTY JUDGES ANNOUNCE DETERMINATION OF RATES IN PHONORECORDS III PROCEEDING

On November 5, 2018, the Copyright Royalty Judges (Judges) issued their written determination of royalty rates and terms to apply from January 1, 2018, through December 31, 2022, to license the copyrights of songwriters and publishers in musical works made and distributed as physical phonorecords, digital downloads, digital streams, and other configurations described in part 385 of 37 CFR. The rate determination is not unanimous. A dissenting opinion is appended to and is a part of the rate determination.

The written determination has been reviewed by the parties to the proceeding to determine which portions, if any, contain confidential information that must be redacted from the version that will be released to the public, and the Judges are preparing the public version. For licensing of musical works for all service offerings, the all-in rate (including the rate for performances, which the Judges do not determine) for mechanical reproductions shall be the greater of the percent of service revenue and Total Content Cost (TCC) rates in the following table.

2018-2022 All-In Royalty Rates

 

2018

2019

2020

2021

2022

Percent of Revenue

11.4%

12.3%

13.3%

14.2%

15.1%

Percent of TCC

22.0%

23.1%

24.1%

25.2%

26.2%

The Judges also determined details relating to the rates for each type of use, such as rate calculations, late payment fees, and administrative terms. The regulatory language codifying the terms of the Judges’ determination is available in eCRB as Attachment A to their Order Granting in Part and Denying in Part Motions for Rehearing and will also be available once the determination is published in the Federal Register. 

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*CALENDAR*

November 26, 2018: Comments and proposals due regarding notice of inquiry regarding modifications and amendments to CRB regulations following enactment of the Music Modernization Act (83 FR 55334).

December 10, 2018: Comments and proposals due regarding whether controversies exist among claimants relating to distribution of the cable and satellite television retransmission royalty funds deposited with the U.S. Copyright Office for royalty years 2014 through 2017 (83 FR 56106).

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