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o consumers should pay copyright royalties based on the programming

they receive, not the size of the town they live in. Currently consumers in small communities must pay a greater rate for the

second and third distant television signals than consumers in

large metropolitan areas. In other words, cable consumers must pay more dearly for diversity if they happen to live in small ci ties. Consumers should be treated equally, regardless of the

size of their communities.

o Consumers should not over-pay copyright royalties. Currently,

consumers must pay royalty fees for distant signals based on the revenues from the tier of programming services which includes

those signals. Yet, typically, these tiers include many made

for-cable programming services such as C-SPAN, Cable News Network, and ESPN. Cable operators offering these services do so through individual contracts with the program suppliers which include copy right compensa tion. Distant signal royalties based on tier revenue rather than revenue attributable only to the

distant signals -- force consumers to over pay the fair rate of

compensation for those signals and provide windfall money to copyright holders for the programming carried on distant signals. Consumers should pay a fair rate for each service they purchase.

o Consumers should not again be victimized by an unguided Copyrisht

Royalty Tribunal Congress should establish standards and procedures to be followed by the CRI in a rate adjustment

proceeding. In setting the level of cable copyright liability,

the CRT performs an essentially legislative function; but does so with very little substantive guidance from Congress. In 1982,

the only time that the CRT has conducted a major rate adjustment

proceeding, the public's interest in access to a diversity of

programming at reasonable rates was subjugated almost entirely to

the interests of the movie studios and other program creators,

Congress should instruct the CRT as to the methods to be used in

any rate adjustment proceeding so that the interests of cable

consumers are given appropriate consideration and weight. The CRT should protect the legitimate interests of copyright holders,

cable systems, and the public.

Congress should also insure that the CRT has funding and staf

adequate to accomplish these important goals.

as the members of the Subcommittee know, we are at a critical juncture

in the administration of the Act. The CRT may again this year consider the rates charged for cable retransmission of distant'television signals. consumers are to benefit from the broadest possible diversity in programzing

choices, some changes clearly must be made.

NCTA stands ready to work with

the Subcommittee, the CRT, and the Copyright office to bring the system back

into balance in order to protect the legitimate interests of cable systees,

copyright holders, and

most important

- conswers.

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Gentlemen,
With the abrupt departure of Marianne Melec Hall as chairman of the
Copyright Royalty Tribunal, the entire status of the Tribunal has come
into focus. I especially share your concern because, you see, I have
been under consideration by the President for appointment as a Commis-
sioner of the Tribunal, for quite some time.
The truly scary aspecte of the Tribunal's status are (1) that no prer-
ident has ever aspointed to the Tribunal anyone with copyrir: t exuri-
anca; and (2) The President, in a commendable, desire to reduce govern-
ment spending, has attempted to limit the number of Commissioner: to ?
when it desperately needs the full complement of 5. After all, we are
talking acout the disposition of billions of dollars of royalties no
ver the years...a division not only among factions of opposing goals
but among recipients envious of what other recipients receive.
To the best of my knowledge I'm the only person under consideration as
a Commissioner who has had direct music and literary copyright exper-
icnce (I operated publishing enterprises for more than a quarter-cen-
tury) and I understand that Senator Wilson and Congressman nadham tave
both urged the President to consider me upon the aforrsaid basis, amons
others.

I should be delighted to come to washington at my expense to testify
in connection with the need for the Tribunal and for experienced com-
missioners at any time you find the need for such commentary.

Sinerrely,

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Disney stockholders Assn. of Film Commissioners meets in Chicago win in L.A. court re Steinberg injunction entiem or the fun. of Film Commu.

profits the new york financier gar Sweet dies at age 65 thai a commitice of major Arkansas being a commissioner, according

Copyright Tribunal under close scrutiny

By DAVID JANDA

lett, Illinois film commissioner and battle is over." CHICAGO - The 10th annual con host of Cineposium "85. is pleased Joc O'Kanc. Sin Jax film commit

with this year's record turnout. sionet, noted, "There is no school, By PAUL DISAI

sioners got under way yesterday with Joc (ilass, director of the film office book, that caches how to be a file Disney stockholders won another

some 160 commissioners from across in Arkansas - the state that put itself commissioner. You ha c to be ambu round Wednesday in the Saul Stein the United States, Puerto Rico, the

on the map by offering a se produc dextrous. You must have the lobbyin. herg "greenmail court case when a

Virgin Islands and Canada, Suzy Kel- tion rehatc - announced plans for yet skills of a politician. be a budget dire. uale appeals court in Los Angeles op 'Gimme a Break's'.

another effort by his calc to promote for and tour guide." neid a love court injunction freezing

production,

Cutting through all the burcaciak

Gilass told The I lollywood Reporter and red tape is the hardest part acred in his hostile lakcover attempt of Walt Disney Procks

Dolph Sweet, 65. died May #, after

bankers, investment counselors, Arizona', Bill MacCallum. "It is a 24. Stating that the stockholders have a long illness. Born in New York City.

CTAs and lawyers will meet June 22 hour job." a "reasonable chance" to prove that he grew up in Northpost, Long Island to discuss funding independent pro Once the red tape has been an.. Disery's heard of directors siolated and was ducated at the Unis, of Ala

duction. He foresees a $2 10 3 million working with local merchants and a fide artigineup. Second Libane and Columbia College at

financial pool to be used by local pro residents has its own rohlcmc, Ken trie Juice Earl girsen and two Columbia tmir., where he wanted a Jucers for first quarter er fors-half

Buchanan, lown manager of Forcat. other judges on the panel let and a MA. Tinglish and comparative buoney on low-budget independent Ariz.. sclated an unhappy situation his Los Angeles Superior Count prelimah drama. Taking a lompormgjutet features. Ile estimates that four or town hold when a TV production com nery injunction issured lase July that after World War 11 an English five films a year could be generated rany asked to shut down Main Street requites Steinberg to hold 573 million teacher, coach and director of plays in Arkansas in this manner

during the height of the Christmas in tre rending the outcome of the at Barnard College of Columbia First-day workshops, panels and selling scavon, Alerchants were told was, taught by the stockbuilders Univ., he sayed for 12 years seminars concentrate on how file the street would be chred for about

commisione vaimse Steinberg and the Disney Mually becoming head of ihe college's

could cut through 15 minutes of film time. That tool board of Jirastu drama division. bureaucracy and work with their

Over a week. "We Think it's handmark decision With more than 50 theatre roles to communities.

Buchanan said the lown learned in in that in the first of its kind to de his crediy, the Broadway shows cn Lucy Salenger, Illinois Film Office a hurry and now is more sophise. clare greenmail illegal." stockholder compassed "Rhinoceros," "Stream- consultant, said, “Dollars talk. Once cated. The recent shooting of Mun alternes Michael Hennigan said. ers," "The Penny War," "The Sign your Mate legislature or city political phy's Romance" in Florence has ger

Hennigan said he thought the count in Sidney Brusicin's Window," and hody recognizes how much money can crated more than 52 million and S. deckun rull have a chilling effect the musical "Rilly." His fcature films be brought into a state and how many million in nearby. Mese "The residon ho lakemer attempts. "I think include "You're a Big Boy Now, extra jobs and services can he gener wals outweigh the inconvenience,"h

atal hy on-kxation filming. hall your said. the crown a mecage that it's going Heaven (Can Wait." "Which Way is 10 betah in California to engage in Up?" and "The New Centurions." the p2314c of greenmail....

Sweet's most recent role was that of you'rr grasp to take me a company, Carl Kanisky, police chick on "Crimme

R, THERESA MCMASTERS ty Tribunal there are now only 18 ou had heter en theagh with it hea Break." Additionally, he had made

WASHINGTON With the derar members left at the five-member ranki cause sou are not going to sell your more than 70 appearances on prime

ture of Marianne Mele llall as chair that makes derivons on how to parcel shares out at a premium," he said. time TV productions. He also por.

man of the troubled Copyright Royal- out some S100 million a year it collects In the opinion of the three justices, trayed Gil on the daytime series

Cervenka inks for

in copyright royalty fees. Disncy management was acting to "Another World" for four years,

Hall resigned from the CRT We protect itsell, not the sha holders, A memorial service will be held on when it paid a total of 577 a share (or May 11 at 2:30 p.m. at St. Bridget of

House a congressional uprop $325 million) to buy back Steinberg's Sweden Church, 7100 Whitaker Are. Exenc Cervenka, vocalist and lyri- over her role in editing a booklet th.. 125. interest in the company. At the in Van Nuys. His cossar from cist for acclaimed LA. rock act X and was derogatory to blacks and after same time the judges decided Stein- "Crimme a Break," Nell Carier, will its offshoot country-folk band the several members of the House Judi: herg, as the major stockholder, vio deliver the culogy. He is survived by Knitters, will star in a William Fried-ary subcommittee questioned not onl. lated his duty to the other 60.000 his wiss, actress Iris Braun. In licu of kin-directed segment on the upcoming her ability to do a fair job but whether shurcholders.

Mowers, Jonations can be made to the CBS "Twilight Zone" TV series. Ac the CRT was able to function at al Disney spokeman Ben ('hester American Cancer Society.

cording to executive producer Phil given the lack of expertise its membe said. "This is a long-term thing. The

Deciuere, however, the casting coup have in copyright laws,

Her resignation prompted Rep. Boh to be

"front-koaded with names you see on

Kastenmeier (D-lis.), chairman of the has yet been set." Al mess link, at

oriented audience.

over copyright matters, to question Lerncy for Steinberg ha nem letu nu David L., Wolper will produce a

Nevertheless, while I te wys White House appointments and the phone calls.

three-lour iclescature for ABC based the revived "Twilight Zone" is "not qualification of those made to the on "Times of My Life," the autobi

like 'Aliami Vice," he has commis. (RT. He said, "We need to considk ABC tags Burnett graphy of former First Lady Betty sioned the Cirateful Dead to do the whether the tribunal can discharge the NEW-YORK - Carel Burnett will Ford. The film will be produced in

show's theme music, which he de duties imposed on it and whether in car in fier first comedy special for Auxiation with Warner Bros Tv. ABC I aw during the 1985-86 wason.

Karen llall will adapt Times or scribes as "essentially abstract and shaukel he reformerl or climinated. T.

not a pop tune. "Deciucre picked the subcommittee intends to look into it The il will shoncase the My Life" for TV.

Dead because they're world-re in the near future." wnique tange of Carol Hornett's per

Wolper noted that he had been nowned experts in the Twilight Hall's departure leaves only Ed forming talents. Joining Burnett will trying for five years to convince Betty Zone."

ward Ray and Mano Aguero out te various guest stars to be an- Ford to allow a TV Version of her In the Friedkin-directed segment, what is supposed to be a five-membet nounced shortly), in a stylish and book, and he was "delighted" that she titled "Night Crawlers," Cercnka commission. Ray, who has been with contemporary onc-hour program. bas finally agreed to do it. pretray a waitress lumel (heryl who the ('RT since 1982. n a SMIT recond

erwomers the ghows of Vietnam producer and disturbow. Aguero
coming back to ble, according to who joined the tribunal one year ago
Chert, who claims the rocker's act. is a Cuban immigrant and former pre-
ing is a first-rate, excellent" and may ducer of TV and concerts.
even dchut the series this fall.

Sen. Charles Mathias (R-Md.:
DEISIIIIIIIII The Crecutive produce stread that chairman of the Senate copyright suh-

Cmi' nywel committee who runpa thn

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'Twilight Zone' TV mesday under presure from the Whii

Steinbere group may decide to appeal. Wolper to produce doesn't mean the program will be
Jecide w tle Wweet court and no date Ford bio for ABC MTV" to attract a young. pop music. House subcommittee with jurisdiction

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As you know during the 98th Congress, our Subcomittee devoted much time and attention to examining the operations of the Copyright Royalty Tribunal. Hearings were held and ultimately a bill was favorably reported (H.R. 6164) that, in large part, was designed to improve the functioning of the CRT. in. brief, H.R. 5164 authorizes the Tribunal to hire an economist and a general counsel, reduces the number of commissioners from 5 to 3, sets forth objective criteria that the Tribunal shall consider in setting copyright royalty rates for retransmission of distant signals by cable television, and modifies the current law relating to judicial review of final Tribunal decisions..

We would like to solicit Tribunal comment on the sections of H.R. 6164 as they relate directly to your agency. You need not take a position on Title II of the bill, which sets forth provisions concerning retransmission of distant . signals and tiering.

As regards the staffing needs of the Tribunal, we are cognizant of the fact that funds have been legislatively appropriated for the past two years. We fully expect the Tribunal to respect the will of the policy-making branch in this regard, and to hire a general counsel and an economist.

In our capacity as ranking members on your oversight Subcommittee, we will persist in our efforts to focus on the staff needs of the CRT through legis. lative hearings and oversight. However, since you already have the funds available to take action, it is our opinion that additional legislative authorization is not necessary prior to your hiring a staff.

In conclusion, the Copyright Royalty Tribunal is already six years old: a relatively mature age for government agencies. The days are long since past when arguments could be presented to courts or Congress that the youth of the CRT meant that it was entitled to more deference, to be less responsive to the tax dollar and the public interest, and to render a less than satisfactory work product.

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