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The major activities for the Copyright Royalty Tribunal in FY 84 concerned distribution and disbursement of cable royalty fees. Determinations for the 1981 and 1982 cable royalties were rendered this year. Both have been appealed.
The appellate decision for the 1979 cable royalty determination was rendered. The U.S. Court of Appeals for the D.C. Circuit affirmed the Tribunal in almost all respects, remanding on three issues. The Tribunal reconsidered the three issues, which determination is on appeal, awaiting a decision. The 1980 and 1981 cable royalty determinations will adopt the results of this appeal of the 1979 remand.
Meanwhile, the Tribunal actively disbursed cable royalty funds for several past years, which funds were deemed to not be in controversy.
In addition, The Tribunal rendered determination and disbursed some royalties on the 1982 jukebox distribution. The determination has been appealed in the Second Circuit.
Lastly, the Tribunal announced a cost of living adjustment for public broadcasting entities licensed to colleges and uni- . versities.
The Tribunal's adjudication proceedings consist of the yearly distribution of cable television and jukebox royalties which are deposited with the Licensing Division of the Copyright Office. Full fees for any given year are deposited after the close of that year. Copyright owner's claims for these fees are. filed with the Tribunal during the following year, therefore, the Tribunal's distribution proceedings run approximately two years behind. In FY 84, the Tribunal determined distribution on 1982 cable royalty fees and 1982 jukebox royalty fees. A. 1982 Cable Royalty Distribution
In PY 84, approximately 635 copyright owners filed claims for approximately $50 million in cable television royalties deposited with the Licensing Division of the Copyright office for 1982. Voluntary agreements resolved all but three claims. The Devotional claimants sought more of the Phase I distributions. Spanish International Network (SIN) sought a share of the Joint Sports allotment for its World Cup soccer broadcasts, (Phase II). Multimedia Entertainment Inc. (Multimedia) sought to defend its share of the Program Syndicators' award since it discontinued satellite transmission of some of its works, (Phase II).
A controversy was declared on October 6, 1983. Hearings were held through July and August 1984. A determination was
rendered on September 20, 1984. The Tribunal increased the Devotional share, granted a small share of the Joint Sports award to SIN and decreased the Multimedia share. Appeal has been taken by several parties, in the U.S. Court of Appeals for the D.C. Circuit. The Department of Justice is representing the Tribunal.
Seven claims were filed in January 1983 for approximately $3,676,000 in jukebox royalty fees deposited with the Licensing Division of the Copyright office for 1982. A controversy was declared on December 8, 1983. Voluntary agreement by four claimants was reached. Subsequently, the Tribunal determined to award the full fund to these four claimants, ASCAP, BMI, SESAC, and the Italian Book Company on August 28, 1984. of the other three claimants : Sammie Belcher offered no evidence, Michael W. Walsh's claim was determined to be de minimus and A.C.E.M.L.A.'s claim was denied for failure of proof.
On January 19, 1984, and before the determination above, the Tribunal distributed about 90% of the fund to these four claimants based on the history of past jukebox determinations and on the conclusion that approximately 10% of the fund remained in controversy.
Appeal has been taken by A.C.E.M.L.A. in the Second Circuit. The Justice Department is representing the Tribunal.
The Tribunal had published a final determination for 1979 cable royalty fees in March 1982, which determination was appealed in the U.S. Court of Appeals for the D.C. Circuit. (Christian Broadcasting Network v. CRT, 720 F.2d 1295 (1983)). A decision was rendered on October 25, 1983.! This decision affirmed the Tribunal's determination in all respects but three. The Appellate Court remanded the following issues :
1) National Association of Broadcasters (NAB) claim of part of the Joint Sports share,
2) Devotional claimant's zero award in the Phase I proceeding,
3) Commercial radio's zero award in the Phase I proceeding.
The Tribunal accepted voluntary agreement in lieu of reconsidering the NAB claim. The Tribunal accepted evidence on the other two remand issues. Upon reconsideration, the Tribunal granted the Devotionals .35% of the Phase I fund. This was a result of reevaluating some of the evidence and apportioning different weight to the criteria of benefit and harn.
The Tribunal reconsidered and again denied an award to commercial radio, but offered a clearer explanation. The Tribunal acknowledged that the claim was justified but unquantifiable. It reasserted that it was unable to discern ket-place value for the de minimus input of the non-music portion of commercial radio.
The determination of these remand issues was published on January 20, 1984. It has been appealed. The Justice Department has represented the CRT. We are awaiting a decision.
On March 7, 1983, the Tribunal had rendered a final detertermination on the 1980 cable royalty fees which was also appealed in 0.s. Court of Appeals for the D.C. Circuit. On February 9, 1984, upon receiving the 1979 remand decision, the Tribunal moved the court to remand the 1980 case consistent with the 1979 opinion. The motion was granted.
Upon reconsideration, the 1979 remand decision was adopted for the 1980 cable royalty determination with the exception that the distribution of the Devotionals' share be pro rata shared among all Phase I claimants as opposed to the MPAA absorbing the full impact of the Devotionals' share as was done in the 1979 remand. This reconsideration is likewise on appeal.
In FY 83, the Tribunal had declared controversy and conducted hearings on the 1981 cable royalty distribution. The determination was rendered on February 28, 1984. Said determination also adopts the 1979 determination and is likewise awaiting the decision on the appeal of the remand.
1978, 1979, 1980, 1981, 1982 Disbursement of Cable Royalty Fees
Pursuant to $111(a)(5)(c) of Title 17 and in keeping with policy strongly promoted by Commissioner Ray during his tenancy as chairman, the Tribunal has actively disbursed fees which were deemed to not be in controversy.
On October 6, 1983, the 1978 fund which had received late fees was again totally distributed. In January and March 1984, 41% of the 1979 fund was disbursed to bring its total distribution to 91%. The 1980 fund which was 80% disbursed, was not further disbursed in FY 84. In November 1983 and August 1984, an additional 11.5% of the 1981 fund was disbursed to bring its total distribution to 96.58. Lastly, in December 1983, 90% of the 1982 fund was disbursed.
On a yearly basis, and pursuant to $118 of Title 17, the Copyright Royalty Tribunal announces a cost of living adjustment to be applied to compulsory royalty rates paid by public broadcasting entities licensed to colleges and universities for the performance of musical composition. The adjustment for FY 84 was determined on November 28, 1983 to be 5.4% effective January 1, 1984.
Fiscal Statement of Account
11.1 Salaries & Compensation
$ 326,322 12.1 Personnel Benefits
34,699 13.5 Unemployment Compensation
3,117 21 Travel & Transportation
354 23A Postage
1,029 23B Local Telephone
3,463 230 Long Distance Telephone
824 23E Rental of Equipment
417 23F Rental of Space
55,570 24F Printing, Forms
10,462 25D Services of Other Agencies
15,000 257 Professional & Consultant (Legal) 5,000 25G Maintenance & Repair to Equipment 2,331 25K Cost of Hearings
7,865 26A Office Supplies
937 31 Books & Library Materials
1,559 311 Equipment
$ 480,063 Less: Royalty Fee Fund Transfer
$ 497,700 50,300
0 500 2,500 1,500
300 56,000 25,000 15,000
0 2,200 46,000 1,000 1,000
$ 700,000 490,000
TOTAL REGULAR BILL
The Copyright Royalty Tribunal benefitted in PY 84 with the acquisition of a word processor/computer system and with the temporary employment of outside counsel. Distribution and disbursement of cable television and jukebox royalty fees were the primary focus, as well as the remand and reconsideration of past cable and jukebox royalty distributions. The coming year shall include statutory cable and non-commercial broadcasting rate reviews, possible reevaluation on petition, of the cable rates that were set in 1982 (due to FCC deregulation), yearly cable and jukebox royalty distribution, and hopefully the finalization of several years of appellate review in both cable and jukebox distribution cases.
In response to your joint letter of December 18, 1984 with Congressman Moorhead to Chairman Marianne Hall, enclosed are my comments on Title I of HR 6164. These comments reflect my individual views and may not represent the consensus of the Tribunal.
Thank you for providing the Tribunal an opportunity to submit its views on this bill.