BEFORE THE jfeberal QCouununications ClComnti£l'sion WASHINGTON, D.C. 20554
In the Matter of ) ) Optical Telecommunications, Inc. ) MB Docket No. 14-258 ) CSR-8895-C Complaint Concerning Retransmission ) of WXCW(TV), Naples, FL ) )
To: The Secretary, FCC Attn: Chief, Media Bureau
ANSWER
Optical Telecommunications, Inc. ("OpticalTel"), by its attorneys, hereby submits this
Answer to the Complaint filed by Sun Broadcasting, Inc., licensee of full-power television station WXCW(TV), Naples, Florida ("WXCW"), dated December 4, 2014. As will be demonstrated below, WXCW's Complaint is utterly without merit and should be dismissed.
Background and Summary
OpticalTel is a service company that provides back office operational functions and assistance, such as billing and collection, technical suppo1t and maintenance, financial reporting, responses to telephone calls, and other administrative services to direct broadcast satellite
("DBS") resellers. OpticalTel owns no wires, cables, fibers or other physical video distribution facilities.
HControl Corporation ("HControl") is a DBS reseller that facilitates the receipt of Dish
Network ("Dish") DBS service provided at Sail Harbour, a residential community in Lee
1 County, FL and at Glades Country Club, a residential community in Collier County, FL.
HControl began reselling Dish service at Sail Harbour in February, 2006 and acquired the rights to resell Dish service at Glades Country Club in April, 2013. OpticalTel began to provide contract administration service in c01mection with the Dish service provided at Sail Harbour in
December, 2012.
HControl owns no wires, cables, fibers or other physical video distribution facilities in either Sail Harbour or Glades Country Club. HControl and OpticalTel are small, minority owned businesses under common control and, for convenience, may be referred to interchangeably as
OpticalTel herein.1 At all relevant times, OpticalTel has been fully authorized to resell Dish video programming, including local broadcast signals retransmitted by Dish, at both Sail
Harbour and Glades Country Club. Local broadcast signals are available to residents of Sail
Harbour and Glades Country Club at no separate charge, but rather are provided as a standard amenity of residence.
By a letter from Mr. James Schwartze! dated September 29, 2014, WXCW purported to elect retransmission consent with respect to "every Cable System owned or operated by
OpticalTel within the Fort Myers/Naples, FL OMA" for the election cycle commencing January
1, 2015. Neither OpticalTel nor HControl had ever previously received any must- carry/retransmission consent election or other carriage request from WXCW.2 Moreover, to the
Ceriain facilities used to relay the signals retransmitted by Dish and received on site at each community are owned by a separate, commonly controlled entity. As explained in detail infra, to the best of OpticalTel's knowledge, all such facilities are located entirely on private property.
2 On that same date, OpticalTel also received its first-ever retransmission consent election letter from WINK TV, Fort Myers, FL, listing the same address as WXCW and signed by Mr. Joseph Schwartze!. OpticalTel expresses no opinion at this time whether any common attributable interests or other coordinated actions between WXCW and WINK are consistent with FCC multiple ownership rules. 2 best of Optica!Tel 's knowledge, the facilities at Sail Harbour and Glades Country Club do not meet the definition of "Cable Systems" for regulatory purposes.
Two days after its initial retransmission consent election, by letter dated October 1, 2014,
WXCW alleged that its signal was being delivered to residents of Sail Harbour and Glades
Country Club without appropriate retransmission consent. Then, on December 4, 2014, WXCW submitted a Complaint to the FCC claiming a violation of the retransmission consent requirements with respect to the delivery of WXCW as part of the Dish service provided to Sail
Harbour and Glades Country Club.
As will be shown below, DBS resellers such as OpticalTel, whose activities are limited to the relay of signals retransmitted by satellite carriers such as Dish over private property for home viewing, are not classified as "multichannel video programming distributors" ("MVPDs"), and thus are not subject to retransmission consent requirements. Rather, the FCC has determined that the responsibility for retransmission consenUmust-carry and copyright compulsory license compliance falls solely on the satellite carrier (Dish in this case). Moreover, to the extent that a satellite canier can somehow avoid its end-to-end retransmission consent and copyright obligations by labeling the service it provides to a reseller as "transport," in the case of the resale of Dish service at Sail Harbour and Glades Country Club, OpticalTel has never elected
"transport" and has no reason to believe that Dish has not fulfilled its retransmission consent and copyright obligations with respect to the broadcast signals retransmitted by Dish to the residents of those communities.
Alternatively, in the event the Commission reverses over twenty years of precedent and finds, for the first time, that DBS resellers such as OpticalTel should now be deemed to be
MVPDs, Optica!Tel is nevertheless exempt from retransmission consent pursuant to the
3 provisions of Section 76.64(e) of the Commission's rnles. Finally, although OpticalTel has no reason to believe that the facilities located at Sail Harbour or Glades Country Club qualify as
"cable television systems" under Section 76.S(a) of the Commission's rules, it has taken prophylactic steps to register these communities at the FCC (FL 1410 and FLl 411) and to submit appropriate compulsory license payments to the U.S. Copyright Office. Thus, to the extent these facilities might in fact meet the "cable system" definition, as WXCW has asserted in its first-ever retransmission consent election dated September 29, 2014, then the station's status was default must-carry for all periods prior to January 1, 2015.
Argument
I. DBS Rcsclle1·s Arc Not Subject To Retransmission Consent.
When the Commission adopted rnles to implement the retransmission consent provisions of the Cable Television Consumer Protection and Competition Act of 1992, it determined that
DBS resellers do not qualify as "MVPDs'' and thus are exempt from retransmission consent obligations. Rather, the Commission concluded that it is the "satellite carrier," as defined in 17
U.S.C. § 1l9(d), that bears sole responsibility for satisfying end-to-end retransmission consent and copyright requirements for the receipt by ultimate viewers of the broadcast signals retransmitted by the satellite carrier:
A satellite carrier, as defined in the Satellite Home Viewer Act of 1988, is an entity that uplinks a broadcast signal and retransmits it over satellite facilities that the carrier may own or lease. See 17 U.S.C. § 119(d). Satellite carriers' customers are home satellite dish (HSD) households. The carriers themselves sell retransmitted broadcast signals directly to HSD households, but they also license a variety of agents (e.g., program packagers, equipment distributors, and satellite equipment retailers) to sell the signals on their behalf. As noted above, the definition applies to a "television receive-only satellite program distributor." In order to resolve any potential ambiguity regarding responsibility for securing retransmission consent, and in view of the fact that the satellite canier is the entity entitled to the compulsmy license granted by 17 U.S.C. § 119, we find that, with
4 respect to HSD sales, the satellite carrier is the multichannel distributor and must secure retransmission consent. 3
Similarly, in implementing the "local-into-local" provisions of the Satellite Home Viewer
Improvement Act of 1999 ("SHVIA"), the Commission noted that, beginning on May 29, 2000, satellite carriers must obtain retransmission consent for delivery of local broadcast signals to viewers;4 that retransmission consent/must-carry elections for satellite carriers apply on a market- wide, rather than system-by-system basis; 5 and that broadcasters only deal with two satellite carriers, DirecTV and Echostar (now Dish) with regard to local-into-local carriage matters, not with DBS resellers.6 Significantly, the Commission noted that while SHVIA amended the
Communications Act to add a definition of "Distributor" that encompasses the activities of DBS resellers, the term was not used elsewhere in the statute and thus has no substantive effect, thereby reaffirming the Commission's prior conclusion that DBS resellers are not MVPDs and have no bearing on the must-carry/retransmission consent obligations imposed on satellite carriers.7
Thus, under long-standing Commission policy, DBS resellers simply do not fall within the statutory "MVPD" definition. First, a DBS reseller is not a person "such as" the true MVPDs listed in the statutory examples. In particular, each of the listed MVPDs bears responsibility for obtaining rights for all the programming they offer to subscribers, including both broadcast signals and traditional cable networks. A DBS reseller, on the other hand, simply resells the programming packages distributed by Dish or DirecTV, the rights to which have already been
Implementation ofthe Cable Television Consumer Protection and Competition Act of 1992, Broadcast Signal Carriage Issues, 8 FCC Red 2965 (1993) ("I 993 Must-Carry Order"),~ 131. 4 Implementation ofthe SHVIA of 1999, Broadcast Signal Carriage and Retransmission Consent Issues, 16 FCC Red 1918 (2000), if 14.
Id at~24. 6 Id. at~ 28.
Id. at~ 135.
5 obtained by the satellite carrier. Hence, just as a DBS reseller is not required to enter into separate affiliation agreements with ESPN, USA, MTV, HBO or the other programming networks offered by the satellite carrier, so too is the DBS reseller not obligated to obtain separate retransmission consent for the broadcast signals retransmitted by the satellite carrier.
Second, it is the satellite carrier, not the DBS reseller, that makes multiple channels of video programming available for purchase by subscribers or customers. Finally, each of the MVPDs listed as examples in the statutory language offers, as an integral part of its service, transmission paths that traverse public rights of way, either through physical facilities such as wires or cables or via electromagnetic spectrum. A DBS reseller, on the other hand, merely relays the MVPD service offered by Dish or DirecTV over facilities located entirely on private property.
The Commission's well-established conclusion that satellite carriers have sole responsibility for retransmission consent and copyright obligations relating to carriage of television broadcast signals is fully supp01ied by both legal and practical considerations. As the
Commission noted as far back as 1993, it is the satellite call'ier, not the reseller, that is entitled to the copyright compulsory license under 17 U.S.C. § 119 for distant signals. That same approach is also incorporated in 17 U .S.C. § 122 with respect to retransmission of local broadcast signals by satellite carriers. Thus, as the sole party responsible for copyright matters, it is entirely logical for the satellite carrier to also be the sole pa1iy for retransmission consent obligations relating to broadcast signals retransmitted to home viewers by such satellite caniers.8
Moreover, if both the satellite canier and reseller had been found to be subject to retransmission consent requirements, not only would broadcasters enjoy a windfall double payment, but practical complications would render such an approach unworkable. For example,
8 By contrast, the Commission noted that where a satellite carrier transports a broadcast signal for carriage by a cable system, the cable operator, who is eligible for its own compulso1y copyright license, is responsible for obtaining any requisite retransmission consent. 1993 Must-Carry Order, n. 367.
6 assume hypothetically that a station had entered into a retransmission consent agreement with both the satellite carrier and its reseller, but that the satellite carrier's authorization subsequently expired or was terminated. That could result in a requirement for the reseller to continue to pay retransmission consent fees to the station, even though the signal had been removed from the satellite ca11'ier's lineup and thus could no longer be relayed to home viewers. Indeed, because retransmission consent agreements typically embody both the right and the obligation to deliver the affected station, the reseller could be found in violation of such requirement simply because the station had forced the satellite carrier to discontinue retransmission.
Similarly, assume a situation where a station elects must-cany from the satellite canier, and the DBS reseller, who is not subject to must-carry requirements, was then required to obtain retransmission consent, but could not reach an acceptable agreement with the station. In that case, the anomalous result would be that the satellite carrier could be found in violation of must carry if the reseller does not relay the station, and the reseller could be found in violation of its contractual obligations to the satellite carrier, which typically require the reseller to relay the entire package of broadcast signals being retransmitted by the satellite carrier.
Technical considerations also support the Commission's determination that the satellite carrier bears sole responsibility for retransmission consent. It is OpticalTel's understanding that
Dish transmits digital/HD signals in fixed packages that are then processed by a transcoder installed at the headend facility on the prope1ty. If satellite carriers and DBS resellers both were required to obtain retransmission consent, and the DBS reseller was unable to reach an agreement with one of the stations included in the digital transcoder package established by
Dish, the reseller would be required to discontinue relay of all stations included in that group.
As the foregoing examples vividly demonstrate, a duplicative retransmission consent obligation
7 imposed on both satellite caniers and resellers would be unfair and unworkable, and was wisely rejected by the Commission.
As noted above, satellite caniers are exempt from retransmission consent when they provide "transport" of broadcast signals, e.g., to cable systems that (unlike DBS resellers) utilize their own transmission paths over public rights-of-way, qualify for their own copyright compulsory license, and clearly fall within the definition of MVPD. In such situations, and in keeping with the policy of avoiding duplicative retransmission consent requirements for receipt of the same signal by the same viewer, it is the cable system, and not the satellite carrier, which bears sole responsibility for retransmission consent.
In its Complaint, WXCW asserts that back in January, 2014, it had contacted Ms. Melisa
Ordonez, General Manager, Programming Acquisitions for Dish, and claims that Ms. Ordonez informed WXCW that Dish provides only "transport" services to Optical Tel and "does not provide OpticalTel with any rights to retransmit the signal of WXCW."9 Upon receipt of
WXCW's Complaint, OpticalTel contacted Dish for clarification, and was advised that Dish now offers two options to resellers with respect to delivery of local broadcast signals retransmitted by
Dish: "Local Networks" and "Local Networks Transport," rather than the single option that was offered in 2005 when the Dish resale contract for Sail Harbour was entered into.
OpticalTel has confirmed that in more recent resale agreements, such as the contract covering Cypress Trails RV Resort dated November 6, 2013, Dish does in fact offer both options: "Local Networks" and "Local Networks Transport." As is evident from the election of
"Local Networks" (and not "Transport") on the Cypress Trails agreement (see Attaclunent 1),
9 We note that Ms. Ordonez is not the representative for OpticalTel's account with Dish and Optica!Tel has no record of ever dealing with Ms. Ordonez. To the extent that Dish may owe additional payments for its retransmission of local broadcast signals to residents of Sail Harbour or Glades Country Club, that is a matter to be resolved between WXCW and Dish.
8 OpticalTel has never intended to elect the purely transport option for any of its properties in the
Ft. Myers/Naples DMA. Indeed, to the best of its knowledge, OpticalTel was never offered the option to elect between "Transport" and "Non-Transpo11" with respect to Sail Harbour or Glades
County Club. As can be seen on the Exhibit from the Sail Harbour Dish resale agreement entered into in December, 2005 (see Attachment 2), OpticalTel was only offered one option for the resale of local television stations retransmitted by Dish, contrasted with the two options set f011h on the more recent Exhibit from the Cypress Trails agreement. 10
In sum, it had always been OpticalTel's understanding that Dish assumes full responsibility for retransmission consent and copyright matters relating to the television stations retransmitted by Dish at Sail Harbour and Glades Country Club. Thus, when OpticalTel became aware that Dish now offers the option between transpo11 and non-transport, OpticalTel contacted
Dish to confirm that its records properly reflect the non-transport status of these properties, as intended. OpticaITel was advised that Dish imposes a higher monthly fee for resellers electing non-transport status. OpticalTel agreed to pay the applicable fee, and Dish responded by Jetter dated January 22, 2015 acknowledging that OpticalTel had been paying for non-transp011 service all along for Cypress Trails, where it had been given an election, and that OpticalTel would be authorized on a non-transport basis for Sail Harbour and Glades Country Club effective
December 12, 2014, thereby covering all periods after WXCW's initial retransmission consent election, which took effect on January 1, 2015 (see Attachment 3).
10 As noted above, the rights to resell Dish service at Glades Country Club were acquired from the previous reseller in April, 2013. While an assignment of rights was obtained from Dish, OpticalTel has been unable to locate a copy of the original resale agreement, nor has Dish been able to provide one. However, because the Glades Country Club and Sail Harbour Dish resale agreements were entered into contemporaneously, Optica!Tel assumes that Exhibit A to the Glades Country Club Dish resale agreement is substantially identical to Attachment 2. In any event, OpticalTe! has no record of electing "Transpmt" service for Glades Country Club or of a request from Dish to elect between "Transport" and "Non-Transpo1i."
9 OpticalTel recognizes that WXCW has asserted retransmission consent liability for periods prior to the January 1, 2015 effective date of its initial retransmission consent election.
Thus, to the extent that Dish may have inadve11ently been treating Sail Harbour and Glades
Country Club as "transpoti" prope1iies prior to December 12, 2014, OpticalTel has requested
Dish to rectify the status of these communities. Moreover, to the extent that OpticalTel may owe additional fees to Dish for non-transpo11 status subsequent to the date (unknown to OpticalTel) that Dish began offering such an election and imposing higher fees, OpticalTel has offered any such additional amounts to Dish. Notably, however, these are matters to be resolved exclusively between OpticalTel and Dish. Regardless of whether Dish seeks to characterize its relationship with OpticalTel at Sail Harbour and Glades Country Club as "transpo1t" or "non-transport," and even if OpticalTel may owe additional amounts to Dish, the fact remains that, as a non-MVPD agent reselling DBS service on behalf of Dish, OpticalTel is not subject to retransmission consent obligations. Under long-standing Commission precedent, Dish alone bears full responsibility for retransmission consent with respect to the broadcast signals it retransmits to residents of Sail Harbour and Glades Country Club.
II. OpticalTel Is Exempt From Retransmission Consent Pursuant To Section 76.64(e).
As explained in detail above, in accordance with FCC policies in effect for over twenty years, DBS resellers, whose activities are limited to the relay of signals retransmitted by satellite caniers over private property for home viewing, are not deemed to be MVPDs, and the responsibility for obtaining any necessary end-to-end retransmission consent rights falls solely on the satellite carrier. Neve11heless, any effort by WXCW to establish a new, redundant retransmission consent requirement for both DBS resellers and satellite carriers with respect to
10 the same signal would be unavailing because OpticalTel is exempt from retransmission consent pursuant to Section 76.64(e) of the Commission's rules. 11
The so-called "MATV exception" is set forth in Section 76.64(e) of the Commission's rules:
The retransmission consent requirements of this section are not applicable to broadcast signals received by master antenna television facilities or by direct over-the-air reception in conjunction with the provision of service by a multichannel video program distributor provided that the multichannel video program distributor makes reception of such signals available without charge and at the subscribers option and provided further that the antenna facility used for the reception of such signals is either owned by the subscriber or the building owner; or under the control and available for purchase by the subscriber or the building owner upon termination of service. 12
In adopting this rnle, the Commission analogized to the right, also recognized under copyright law, of the owner of a hotel, apai1ment building or similar private property owner to install an on-site antenna to receive local broadcast signals without needing retransmission consent or incurring copyright liability. 13
Upon termination of the right to resell the Dish service at Sail Harbour or Glades Country
Club, it is OpticalTel's policy to transfer ownership of the on-site antenna used to receive all signals, including all television stations retransmitted by Dish, to the relevant homeowners association ("HOA"), without charge. In the alternative, in the event the HOA may not wish to continue to receive the Dish service, OpticalTel offers to construct an on-site off-air reception facility at cost, to facilitate continued viewership of free local television signals by residents.
11 Because the current policy finding DBS resellers and other agents of satelllte carriers to be exempt from retransmission consent was established in an order adopted by the full Commission, any change in policy would similarly require full Commission action, and could not be accomplished through delegated authority. See, e.g., 47 C.F.R. § 0.283(c). 12 47 C.F.R. § 76.64(e) 13 1993 Must-Carry Order,~ 135 (citing 17 U.S.C. § 11 l(a)).
11 Because the MATV exception applies broadly regardless of whether the service received at such private residential properties is MA TV, MMDS, MATV-SMA TV or MMDS-SMATV, it is clear that it should make no difference whether the on-site antenna receives signals off-air or via satellite, so long as such antenna is available for purchase upon tennination of service, thereby ensuring that the right of individual residents to continue to receive local broadcast signals cannot be terminated or otherwise limited. Here, OpticalTel has gone a step further to protect the rights of individual residents by not only agreeing to tum over ownership of the on- site DBS antenna, but to build an off-air reception facility on-site, at the election of the affected private community. 14
In sum, under the clear provisions of the MATV exception, even if Optical Tel is deemed to be an MVPD on a prospective basis, it is neve11heless exempt from the requirement to obtain retransmission consent from WXCW or any other local television station.
III. If The Facilities At Sail Harbour And/Or Glades Country Club Arc Cable Systems, Carriage Of WXCW Has Been Authorized.
As noted above, OpticalTel owns no wires, cables, fibers or other physical video distribution facilities at Sail Harbour or Glades Country Club. Moreover, OpticalTel did not participate in the construction and installation of such facilities. It is OpticalTel's understanding that such facilities are located entirely on private property, do not use any public rights-of-way, and thus do not meet the definition of a "cable system" for regulatory purposes.
Nevertheless, despite its good faith understandings, OpticalTel cannot state definitively that these facilities are not cable systems. Indeed, WXCW must believe that the facilities at Sail
14 As noted above, the local broadcast signals retransmitted by Dish are available to residents of Sail Harbour and Glades Country Club at no additional charge. Nevertheless, the Commission has clarified that the detennining factor under the MATV exception relates to the ability to obtain ownership of the antenna, "not the provision of the service free-of-charge." Implementation ofthe Cable Television Consumer Protection and Competition Act of 1992, Broadcast Signal Carriage Issues, 9 FCC Red 6723 (1994), ~ 79.
12 Harbour and Glades Country Club are cable systems because, by letter dated September 29,
2014, it elected retransmission consent for the period beginning January 1, 2015. By WXCW's own admission, no such election would have been necessary if these properties were not cable systems - there would be no need for a station to choose between retransmission consent and must-carry. Thus, when faced with WXCW's vexatious threats of potentially crippling liability, and out of an abundance of caution, Optica!Tel has taken prophylactic steps to register these communities as separate cable systems (FLl 410 and FL 1411 ), and to submit appropriate compulsory license payments to the U.S. Copyright Office (see Attachment 4).
As detailed above, OpticalTel believes that Dish bears sole responsibility for retransmission consent and copyright compliance for all periods with respect to the broadcast stations retransmitted by Dish to viewers at Sail Harbour and Glades Country Club. Dish has acknowledged this arrangement for all times subsequent to December 12, 2014, and OpticalTel has requested that Dish rectify its records to properly reflect the intended status of these properties for all prior periods as well. Nevertheless, even absent any fmiher communications from Dish, and assuming that WXCW's claim that these properties are cable systems is correct,
WXCW would have been default must-cany for all periods prior to January 1, 2015, the effective date of its initial retransmission consent election.
Conclusion
DBS resellers such as OpticalTel have been found by the Commission not to be MVPDs and thus not subject to retransmission consent. Rather, the satellite carrier has sole responsibility to obtain end-to-end authorization for the broadcast signals retransmitted by such satellite carrier, regardless of how it labels the feed it provides to a DBS reseller. In any event, the facts here show that OpticalTel was never initially offered a choice between "transport" and "non-
13 transpo1i," and never elected any arrangement other than the typical situation where the satellite carrier is solely responsible for any applicable retransmission consent and copyright payments.
Alternatively, in the event of a change in policy whereby DBS resellers such as
OpticalTel are hereafter deemed to be MVPDs, OpticalTel is neve11heless exempt from retransmission consent pursuant to the provisions of Section 76.64(e) of the Commission's rules.
Finally, although OpticalTel has no reason to believe that the facilities located at Sail Harbour or
Glades Country Club qualify as "cable television systems," it has taken prophylactic steps to register these communities at the FCC (FL1410 and FL1411) and to submit appropriate compulsory license payments to the U.S. Copyright Office. Thus, to the extent these facilities might in fact meet the "cable system" definition, as WXCW has asserted in its first-ever retransmission consent election dated September 29, 2014, then the station's status was default must-carry for all periods prior to January 1, 2015.
Reliance by WXCW on TV MAX, Inc. and Broadband Ventures Six, LLC d/b/a
Wavevision, et al., 29 FCC Red 8648 (2014) is misplaced. That case involved a "cable operator" as defined by 47 C.F.R. § 76.5(cc) and franchised by the City of Houston that had entered into retransmission consent agreements and continued to carry the affected stations after those agreements had expired. 15 And while TV MAX asserted the "MATV" exception as a defense, it neve1iheless had retransmitted the affected signals from its off-site headend over its cable system and/or fiber ring traversing public rights-of-way, rather than relying on signals received at an on- site reception facility on private prope11y. Here, OpticalTel is a DBS reseller that is not deemed
15 To the best of Optica\Tel's knowledge, the only cases where the FCC has imposed a forfeiture for carriage of a station without retransmission consent have involved situations, like TV MAX, where carriage continued after the expiration of a valid retransmission consent agreement. See Bailey Cable Tl~ Inc., 27 FCC Red 2625 (MB 2012). Here, of course, WXCW has not been carried in violation of an existing retransmission consent agreement. Indeed, prior to its letter of September 29, 2014, WXC\V never elected retransmission consent or claimed must-carry rights in the affected communities.
14 to be a MVPD, received its first (albeit invalid) retransmission consent election from WXCW for the period commencing January 1, 2015, and has never can"ied WXCW after the expiration of a valid retransmission consent agreement. Moreover, local broadcast signals retransmitted by Dish have at all times been received by an on-site antenna facility located on private prope11y at each community and available for use even after expiration of OpticalTel's relationship with the affected community, and thus the retransmission consent exception under Section 76.64(e) clearly applies.
In sum, based on any of the numerous reasons set forth above, it is clear that WXCW's
Complaint is entirely meritless and should be dismissed, and WXCW's eff011 to obtain double retransmission consent payments for providing the same signal to the same viewers should be rejected.
Respectfully submitted,
Optical Telecommunications, Inc. By:~ Arthur H. Hard.ing Locke Lord LLP 70 I 8th Street, NW Suite 700 Washington, DC 20001 (202) 939-7916
Its Attorneys
Date: April 14, 2015
AM 47524822.3
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I; g]Ytl 0No AccountNumbe1 g').5$ .. ~J·00\~002-:/~SJ Pio7l'Ml~A"llb"t Promotions AW/lllYIH(ll!TIYIUcl•k-olt-Apo~bf>o~l'llanl>•J6_.,. ~HllYVKCHTM~lo14 ....-l:t~'""°l""'*f """',. llulk Progr.immlng St!l' Amefic.a's Top 200 Atntriu'sTop 250 r Cl.mlc&Counuy l'il Add r Rtm ~SPN P•k l (All channels In lhe package must be displayed) ESPH Pak 2 (AK chaooeU In lhc: p1ckagemu11 bedlSpl.l)'td) Add r llemoYe ESPH Pak 3 (1111 cha nncls In 1hc! package must oo dl1pl.\ytdl r Add r Remove ~sm Pak4(All cha Mell In the J)ll EXHIBIT A DULi( PROGRAl\ll\llNG SERVICES AGHEEl\IENT SCHEDULE I Base Bulk Progrnmmjng Pqcknges Operator shall select one of the following Dase Dulk Programming Packages: 0 America's Top 60• --per Drop per month 0 America's Top 120• --per Drop.per month 0 America's To1> ISO• --per Drop per month In the event that Operator qualifies for such programming ns detcnnincd by EchoStnr in its sole discretion, 01>erntor shnll select the following Bulk l'rogrnmming pnekngc: D Local networks programming• •• -·per Property per month In addition to the above Dulk Programming packages, Operator may select the following Bulk Programming premium channel package 0 HBO "the Works", Showtime "Unlimited", Cincmnx, and Stnn:!fEncore --per Drop per month •Visit ht10:/lwww.dis/111eDrork.co111lco111e11tl11rogra111mi11g prices, packages and progra111111/11g i11for111alio11• ..Visit http;/lc11sto111ers11IJl)()rt. ECHOSTAR HESEltVES THE RIGHT TO CHANGE PRICES, PACl(AGES, AND PllOGRAl\ll\llNG AT AN\' Tll\IE AND l•'llOM TIME TO Tll\IF. IN ITS SOLE DISCRETION. All capitalized lcnns not otherwise defined herein shall hnvc the meanings ascribed to them in the Dulk Programming Services Agreement to wl1lch this Schedule I Is allnehcd. Neighborhood Value Progrmn Amendment to Programming Services Agreements l!choStar Proprietary and Confidential Page 3 of 5 L:/JDO/Ncighborhood Value l'rogrnm Amendment to PSAs FINAL 0722058 lnlllRI: l:choSIRr _ __ 011cmtor _ _ _ ~~~sh BUSINESS January 22, 2015 RE: DISH Service Sybscr!pt!on - Optica!Tel Telecommunicatjons. Inc. Co/BIA HContro! Cornorationl Hello, This letter is written to indicate that DISH Network L.L.C. ("DISH") has authorized local network services (non-transport) to the private cable operator OpticalTel Telecommunlcations, Inc. located at 1360 s. Dixie Hwy Suite 200, Coral Gables, Florida 33146 (the "EQl"), as requested by the PCO to DISH for the properties and service dates described below: Property N_ame j ti:ddre:ss~ Se_rvJces s_UJ>sorlptlon 1Effec11v-eiDate Qualifying local THE GLADES COUNTRY CLUO 174 TERYL RO, NAPLES, FL 34112 12/12/2014 networks Qualifying local SAIL HARBOUR 16244 VIA SOLERA CIR, FORT MYERS, FL 33908 12/12/2014 networks Qualifying local CYPRESS TRAILS RV RESORT 5340 CYPRESS TRL RESORT, FORT MYERS, Fl 33905 networks 11/11/2013 The costs and details of these services can also be located in the monthly bllling statements received by the PCO from DISH . Sincerely, DISH Business Team Library of Congress Copyright Office Ucensing Division 101 Independence Avenue SE Washington, DC 20557~6400 Official Business Penalty for Private Use $300 Forwarding Service Requested OFFICIAL BUSINESS UNITED STATES COPYRIGHT OFFICE STATEMENT OF ACCOUNT SA1-2 (SHORT FORM) SPECIAL NOTICE ABOUT THIS STATEMENT OF ACCOUNT IMPORTANT Flllng Fees Effective January i, 2014, pursuant to the Satellite Television Extension and Localism Act of 2010 (STELA), whkh granted authority to the Copyright Office to establish fees for the filing of statements of account (S01\s) under the section 111, 119, and 122 statutor)' licenses, the Office now assesses filing fees for nil SOAs for current, past, and future accounting periods. For details, sec the Fedeml Register, November 29, 2013 (78 FR 71498 http://ww11•.cop)'rigl1t.gov/ fcdrcg12013178fr71498.pdf). Please be advised that the filing fee is deducted before the royalty payment is credited; thus the omission of the appropriate filing fee will result in an underpayment of royalty fees. Please remit the royalty fee and filing fee in one EFT payment. (SOA I filing fee: $15; SOA2 filing fee: $20). Multlcnst versus Simulcast Multicast is a digital stream of programming that is transmitted by a television broadcast stalion and is not the station's primary stream. Si11111lcast is a multicast slream of a television broadcast station that duplicates the programming transmitted by the primary stream or another multicast stream of such station. Photocopy Required A legible copy of the semiannual statement of account must be submitted together with the original statement of account to the Copyright Office. Fillrtble SOAs Available Online Access the fill-in statement of account form at www.copyrigltt.gov/forms!SAl-2c-20JI.pdf Complete it on a personal computer and print it out. Or print out the form and complete it by hand in dark ink. Give all the required infomintion. Electronic Payment of Royally and Filing Fees Required Detailed instructions for making royalty payments via electronic funds transfer (EFT) arc contained in circulars 74A, 74n, and 74c, which are available at www.copyright.gov/circslcirc74 or by contacting the Licensing Division (8:30 AM and 5:00 PM eastern time) by phone at (202) 707-8150, fax al (202) 707-0905, or email at licfiscal®loc.go11• The remittance, which must include the a11propriatc filing fee, must be mnde payable lo Register of Copyrights. RcmlUance Advice Required Federal regulations l37 C.P.R. sec. 201.17 (k)] require that a remittance advice be attached to stalement(s) of account. A copy of the remittance advice must be sent by email or fax to tlte Licensing Division. The Office uses this remittance information to ensure the funds received by EFT are correctly allocated to each statement of account. Access a remittance advice form at w111w.<.'Opyright .gOl'llice11si11glremillmu:e-advice .pdf Ceased Operations Procedures If your cable system completely shut down operations during the accounting period, report the facts as they existed on the last day of operations and submit the SOA with the associated royalty and filing fee payments and a cover letter informing the Licensing Division of ceased operations. ff your cable system had no subscribers or gross recei11ts during the entire accounting period, do not submit the SOA or any fees. You do not need to notify us in this case. Important: Rnv1cw Filings Please review all elements of your filing(s) before submitting tltem. Filing properly, including an accurate advice, facilitates processing of your statement(s) of account and payments, minimizes the need for us to contact you with questions, and reduces administrath•e and other costs. Library of Congress Copyright Office Licensing Division I0 I hulependcnce Avenue SE Washington, DC 20557-6400 Tel: (202) 707-8150 (8:30 AM-5:00 PM, eastern time) Fnx: (202) 707-0905 Email: lice11si11g@loc,gol' or Web: www.copyright.gov/lice11si11g THIS FORM IS EFFECTIVE FOR ACCOUNTING PERIODS BEGINNING JANUARY 1, 2011 SA1M2 Ir you are filing for a PI!2~ accounting period, contact the Licensing Division for !he correct form. Short Form Return to: STATEMENT OF ACCOUNT FOR COPYRIGHT OFFICE USE ONLY Library of Congress for Secondary Transmissions DATE RECEIVED AMOUNT Copyrlgl1t O/fiC(J Licensing DMslon by Cable Systems (Sharl Form) $ 101 lndepelldenco Ava. SE Wasllfngton, DC 20557·6400 (202)707-8150 General instructions are at the ALLOCATION NUMBER end of this form (pages (0-(vli)J. For courier deliveries, see page ll of the general fnstrucllons. A ACCOUNTING PERIOD COVERED BY THIS STATEMENT: (Chock one of the boxes and flll In the year date.) AccounUng 0Januaiy 1-June 30 ...... [!]Jury 1-December 31 .?9.1.4 ...... Period (Yea~ (Year) INSTRUCTIONS: Give the full legal namo of tho owner or the cable system In lino 1. It lhe owner Is a subsidiary of anothor corpoiatlon, give the full B corporate true of tho subsidiary, not that of tho parent corporation. owner In tine 2, list any other namos under which the owner conducts lhe business of the cable system. If thero were differont owoors during Ilia accounting period, only tho owner on the last day of t11e accounting period should submit a single statement of accovnt and royally lea payment covering tile entiro accounting polio 1 LEGAL NAME OF OWNER OF CABLE SYSTEM: SH Services LLC 2 BUSINESS NAME(S) OF OWNER OF CABLE SYSTEM (IF DIFFERENT}: - 3 MAILING ADDRESS OF OWNER OF CABLE SYSTEM: ~.~~~ .~~.~~~ .!?!~!~. ~i~.t~~~Y. ~l!!l.~ -~~~ ...... _...... {Nvmbet, $Uttl, l\lroJ 1 Instructions: In Uno 1, give any business or trade names used lo Identify tho business and opera lion ot the system unless these names c alroady appear in space B. In fine 2, give lhe malling address of lhe syslem, If different from tho address olven In space B. System IDENTIFICATION OF CABl.E SYSTEM: 1 Optical Telecommunications Inc. MAILING ADDRESS OF CABLE SYSTEM: .1 ~~~ '?.~':1~~. ~1~1~. H!~~X'?:~ .~~.I!~ . ?.~ ~ ...... 2 (Number, sltee1, rutal route. apotlrr>Ml. "'ruao nurr.b61) Coral Gables, Florida 33146 '(Ci,Y, '1~;,,;.'si~1~:,;Pl. · · .... · · · · ' · · · · • • • · · · · · · · • · · · · · · · · •· · · · · · · · · · · · · · · ·' · · • ' · • · '· · · · • ·'' · ·' '' · · · · .. · · · .. · • · · · · •- · · · - Instructions: List each separate community served by the cable system. A "community"' Is tho samo as a "community unll" as defined fn FCC rules: "a separate and distinct community or municipal entity Oncludlng unincorporated communities within unincorporated D areas and Including single, discrete unlnco1porated areas)." 47 C.F.R. §76.5(dcl}. Tllo Hrst community that you llst will serve as a form Aro a of syslem ldontlficallon herealter known as the "first community." Ploaso uso It as the first commun/fy on all ft/lure filings. Sorved NOii): Entities anc.l propo1tfes such as hotels, apartments, condominiums. or mob!le home palks shoukf bo rnpo1ted In parentheses below tho ldenliflc First..,_ .~?r:'.~J.6!~.(~~i! f!~'.~ Privacy Ao! NoUco: Section 11 I of tiUe 17 of the United Stal* C-Ode authorizes the Copyright Oflioe to co!lccl tho pots00ally ldcnlify:ng lnfotmat'on (PIQ requested oo this lorm in ocde< to process yoor slatemeol of account. Pit is any pefSOrlal information !hat can be uso ..z 3 Cl> .-- -· ...... -··- f OHM SA 1-2. PAGE 2 Name LEGAL NAME OF OWNEfl Of CAIILE SYSTEM: SH Se1Vices LLC SECONDARY TRANSMISSION SERVICE: SUBSCRIBERS AND RATES E In General: The fnformatlon In space E should cover all categories of secondary tral'\Smlsslon service of the cabro system, that Is, the retransmission of television and radio broadcasts by your system to subscribers. Give Information Secondary about other services Qncludlng pay cable) In space F, not here. All tho facts you state must be those existing on the last Transmission ·day of the accounting period (June 30 or December 31, as the case may be). Servlco: Number of Subscribers: Both blocks In space E call for the number or subscribers to the cable system, broken Subscrlbors down by categories of secondary transmission servlco. In general, you can compute the number of subscribers in each and Rates category by counting the number of billlngs In that category {the number of persons or organizations charged separately for the particular seivlce at the rate Indicated- not the number of sets receiving service). Rate: Give the standard rate charged for each category of service. lncfude both lhe amount of the charge and the unit In which it is generally bllled. (Example: "$20/mth'l Summarize any standard rate variations within a particular rate category, but do not Include discounts allowed for advance payment. Block 1: In the left-hand block in space E, the form lists the categories of secondary transmission service that cable systems most commonly provide to their subscribers. Give the number of subscribers and rate for each fisted category that applies to your system. Note: Where an Individual or organization is receiving service that falls under different categories, that person or entity should be counted as a subscriber In each applicable category. Example: a residential subscriber who pays extra for cable service to additional sets would be included In the count under "Servlce to lhe first set," and would be counted once again under "Service to additional set(s)." Block 2: If your cable system has rate categories for secondary transmission service that are dlUerent from those printed In block 1, (for example, tiers or services that Include one or more secondary transmissions), list them, together with the number of subscribers and rates, in the right-hand block. A two- or three-word description of the service Is sufficient. -· ------~------·~------ ,______BLOCK 1 t----- · - --- BLOCK2 ··-· ---••------I NO.OF NO.OF CATEGQRY OF SERVICE SUBSCRIBERS I RATE CATEGORY OF SERVICE;!. SUBSCRIBERS I RATE Resldentlal: •Service lo first set 473 I $29.30 •Service to additional set(s} 0 •FM radio (if separate rate) 0 Motel, hotel 0 Commerclal 0 converter 0 • Resldenllal 0 •Nonresidential 0 SERVICES OTHER THAN SECONDARY TRANSMISSIONS: RATES F In General: Space F calls for rate (not subscriber) Information with respect to all your cable system's services that were Services not covered in space E, that is, those services that are not offered In combination with any secondary transmission service Other Than for a single fee. There are two exceptions: you do not need to give rate lnfonnatlon concerning (1) services furnished Secondary at cost or (2) servlces or facllllles furnished to nonsubscribers. Rate information should Include both the amount of the Transmissions: charge and the unit in which it is usually billed. If any rates are charged on a variable per-program basis, enter only the Rates letters "PP" In the rate column. Block 1: Give the standard rate charged by the cable system for each of the applrcable services listed. Block 2: Lisi any sel\llces that your cable system furnished or offered during the accounting period that were not listed in block 1 and for which a separate charge was made or established. List these other services in the form or a brief (two- or three-word) description and include the rate for each. ··-· ~ ···- ·-·-· - · ~ · ------; BLOCI< 1 BLOCK2 I--·- -··· "·--·-· ._.·--·· .. . CATEGORY OF SERVICE !------·---- RATE I CATEGORY..9.F.~~BY.'!CE RATE ICATf;Q..QBY.. .QF- SERVIC E! RATE Continuing Services: lnstallallon ~ Non-residential •Paycable •Motel, hotel •Pay cable-add'! channel • Commercial • Fire protection •Paycable •Burglar prolectlon I S22.45 •Pay cable-add'I channel Installation: Residential • Fire protection •First set •Burglar protectfon • Addlllonal sel(s) Other Services: • FM radio Qf separate rateil • Roconnect I S30.00 •Converter • Disconnect •Outlet relocation I $35.00 1. Move lo new address L..-- · . ,____ ,____ . ___ _.._____ [ ___ _.. ._ ._. -···. ------~---- 1.,.._ ___ -· - · ------~--- FORM SA1-2. PAGE 3 ······- - -· , .. ·-· ~------·------LEGAL NAME OF O\'INEA OF CABLE SYSTEM: Name SH Services LLC PRIMARY TRANSMITIERS: TELEVISION In General: In space G, identify every television station (Including translator stations and low power television stations) carried by your cable system during the accounting perfod, except (1) stations carried only on a part-time basfs under G FCC rules and rogulatlons In effect on June 24, 1981, permitting the carriage of certain network programs (seclfons 76.59(d)(2) and (4), 76.61(e)(2) and (4), or 76.63 (referring to 76.61(e)(2) and (4))]; and (2) certain stations carried on a Primary substitute program basis, as explained In the next paragraph. Transmitters: Substitute Basis Stations: With respect to any distant stations ca"led by your cabfe system on a subslitute program Telovlslon basis under specific FCC rules, regulations, or authorfzatlons: • Do not list the station here fn space G-bul do list It In space I (the Special Statement Program Log)-lf the station was carried only on a substitute basis. • List the station here, and also In space I, if the station was carried both on a substitute basis and also on some other basis. For further Information concerning substitute basis stations, see page (v) of Iha general lnstrucllons. Column 1: List each stallon's call sign. Do not report origination program services such as HBO, ESPN, etc. Identify each multicast stream associated wllh a station according to Its over-the-air designation. For example, report multlcasl stream "WETA-2" as the same on lhe form. Slmulcast stations must be reported In column 1 Oist each station separately; for example, WEfA-2-slmulcasl). Column 2: Give the channel number the FCC assigned to the television station for broadcasting over the air In Its community of lfcense. For example, WAC is channel 4 In Washington, D.C. Column 3: Indicate ln each case whether lhe station is a network station, an Independent station, or a noncommercial educational station, by entering the lelter "N" (for network), "N-M" (for network multicast), "I" (for Independent), "1-M" (for Independent multicast), "E" (for noncommercial educntlonaO, or "E·M" (for noncommercial educational multfcast). For the meaning of these terms, see page Ov) or the general lnstnictlons. Column 4: Give the location of each station. For U.S. stations, list the community to which Iha station Is licensed by the FCC. For Mexican or Canadian stations, if any, give the name of the community with which the station Is Identified. ~- 1. CALL 2.B'CAST 3. TYPE 4. LOCATION OF STATION SIGN CHANNEL OF NUMBER STATION -·-. ,.,_ _ -- - WZVN 26 N Fort Myors/NAplos Florida WANA·LP 14 B Fort Myers/Naples Florida WINK 11 Fort Myers/Naples Florida wxcw 46 Ir I Fort Myers/Naples Florida WFTX 36 I IFort Myers/Naples Florida WRXY 49 I Fort Myers/Naples Florida WBBH 20 N IFort Myers/Naples Florlda WGCU 30 E Fort Myers/Naples Florida VvWDT·CD 43 l IFort Myers/Naples Florida WLZE·LD !st l Fort MyorsJNaplos Florida I I I I I I I I ..... ··- - .....J.,;...: - -·- ... ··--· - -- -·--·- .. . . ··-·-- FORM SA1-2. PAGE 4. -- ·-··-· .... - • •. ·- -·-·· ------~ •--·-··-···-··- Na mo LEGALNM1E OF OWNEA OF CAlllE svsrEM; SH SeNices LLC PRIMARY TRANSMlnEAS: RADIO In General: List every radio station carried on a separate and discrete basis and llst those FM statrons earned on an H alt-band basis whose signals were generally receivable by your cable system during the accounting period. Primary Special Instructions Con cernlng All-Band FM carriage: Under Copyright Office regulations, an FM signal is generally TransmlHers: receivable Ir (1) it Is carried by the system whenever It is received at lhe system's headend; and (2} lt can be expected, on Radio tho bas ls of monitoring, to be received at the headend, with the system's FM antenna, during certain stated In!orvals. For dofalled information about the the Copyright Ottice regulaUons on this point, see page Qv) of the general instruclions. Column 1: Identify the call sign of each station carried. Column 2: State whether the station Is AM or FM. Column 3: If tha radio slallon's signal was electronlcalfy processed by the cable system as a separate and discrete signal, Indicate this by placing a check mark In the "SID" column. Column 4: Give the statron's location (the community to which the station is licensed by Iha FCC or, rn the case of Maxfcan or Canadian stations, If any, Iha community with which Iha station ts identified). CALL SIGN AM or FM I S/D ILOCATION OF STATION --r r~ALL SIGN I AM or FM I SID I LOCATJON OF STATION I _' u----11 l 1=1 I ------11----1-1-I .· 1 I l~ I I I I I =1 -,-1 ------, I . ----, ___1 ___, B 1-: II I j --··- .. ···--- FORM SA1-2. PAGE 5...... -·· .. - -~---- ··------LEGl\L NAME OF OWNER OF CABLE SYSTEM: Name SH Services LLC SUBSTITUTE CARRIAGE: SPECIAL STATEMENT AND PROGRAM LOG In General: In space I, Identify eve!}' nonnetworlc television program, broadcast by a distant station, that your cable system carried on a substitute basis during the accounting period, under specific present and former FCC rules, regula I tions, or authorizations. For a further explanation of the programming that must be Included In this log, see page (v) of Substitute the general Instructions. ,______-- ...... Carriage: Special 1. SPECIAL STATEMENT CONCERNING SUBSTITUTE CARRIAGE Statement and • During the accounting period, did your cable system carry, on a substitute basis, a,m: nonnetwork television program Program log broadcast by a distant stalfon? LI Yes [!]No Note: If your answer is "No," leave the rest of this page blank. If your answer Is "Yes," you must complete the program log In block 2. - -·-·-·------··--- ··-· .. ···--- 2. LOG OF SUBSTITUTE PROGRAMS In General: list each substitute program on a separate line. Use abbreviations wherever possible, If their meaning is clear. If you need more space, please attach additional pages. Column 1: Give tho Ullo of every nonnetwork television program ("substitute program") that, during the accounting period, was broadcast by a distant station and lhatyourcable system substituted fortha programming of anolherstatlon under certain FCC rules, regulations, or authorizations. See page (v) of the general Instructions for further information. Do not use general categories like "movlas" or "basketball." List specific program titles, for example, "I Love Lucy" or "NBA Basketball: 76ers vs. Bulls." Column 2: If the program was broadcast live, enter "Yes". Otherwise, enter "No." Column 3: Give the call sign of the station broadcasting the substitute program. Column 4: Give the broadcast station's location (lhe community to which the station Is licensed by the FCC or, In the case of Mexlcan or Canadian stations, if any, the community with which the station Is Identified). Column 5: Give the month and day when your system earned the substitute program. Use numerals, with the month first. Example: for May 7, give "5{1." Column 6: State the times when the substitute program was corried by your cable system. List the times accurately to the nearest five minutes. Example: a program carried by a system from 6:01 :15 p.m. to 6:28:30 p.m. should be stated as "6:0CH>:30 p.m." Column 7: Enter the letter "R" if the listed program was substituted for programming that your system was required to delete under FCC rules and regulations In effect durtng the acrounllng period; enter the letter "P" if the listed program was substituted for programming that your system was pennltted to delete under FCC rules and regulations In effect on October 19, 1976. · ·· - - · 1---- WHEN SUBSTITUTE SUBSTITUTE PROGRAM CARRIAGE OCCURRED 17. RE'ASON ~.-... . --.-.. - .• ·· ···· .. ····- I FOR 5. MONTH 6. TIMES I DELETION 1. TITl.E OF PllOGHAM 2. LN~?_ I 3. STATION'S I J\ND DAY FROM - TO t------+-"'11-es or-~- --~L~ _s_1~~ J _ ~:.~T/\TION'S l.OCATION ·------I 1--- i :-, 1-=-1·- ----1_1 1=--1_ . I I - l ----1 I l_-_l~- 1-1 1-:-~ ----:=1,-, 1--1==-_-1:-- r---- ____l_I -_I I ____l_I I - I I ____ ,_I __, I I - I 1-II I -_-,-11· I 1== 1·_ ,__ J ____ --·-. · ...... --·-----· _J __ , -- . j _____~ FORM SA1·2, PAGE 6. Name LEGAL NAMc OF OWNER Of CAlllE SYSTEM: SH Services LLC K GROSS RECEIPTS lnatruo11ona: The figure you give In this space determines the fonn you tile and the amount you pay. Enter the total of Groas Receipts ell amounts (gross receipts) pafd to your cable system by subscribers for the system's secondary transmission seNlce (as Identified Jn space E) during the accounting period. For a further explanation of how to compute this amount, see page (vO of the general lnstruollons. I I . ~:~ \~~~~~~~~~~"::..":::~~.'~'. '.'.".'.".'. •."."'. ''.~'.~''.'.'~-~ ~-'.~~'.~ ...... •r $. -~~:'.~~ : ·~ ...... IMPORTANT: You must complete a statement fn apace P concernfng gross recefpts. ~ 01 ~~> COPYRIGHT ROYALTY AND FILINO FEES L lnetruotone: To compute the royalty fee you owe: Copyrlght • Complete block 1, block 2, or block 3 Royalty Fee • Use block 1 if the amount of gross receipts In space K Is $137, 100 or less • Use block 2 rt the amount of gross recefpts fn space K Is more than $137,100 but less than or equal to $263,800 • Use block 3 if the amount of gross receipts In space K Is more than $263,800 but less than $527,600 See page (vi) of the general Instructions for more Information. BLOCK 1: GROSS RECEIPTS QEl1\llLL00 O""'R'-"LE=S=S,.______-----1 Jnatruotlon11: As a cable system \\illt gross reoolpte of $137, 100 or IBSS, the royalty 11111 lhal you must pay for this slx·monlh aooounllng period Is $52.00 $ Un& 1. Royalty fee for accounting period • • · ...... • • • • .... • ... •• ·...... 62,00 Una 2. lnterast charge. Enter the amount from line 4, space 0, page 8 • • ...... _$_0._10______Una3. Fiiing Fee...... , , ...... ,...... $16.00 1 1 ~: :~::~~~~~~~.~~.~ .~ ~~.~~~~ .~~~~~.~~.~ .~~~~.~~.~,~~.~~.~,.~~· •• ••• •••••••••• 1$ 67.10 I BLOCK 2: GROSS RECEIPTS OF $263,800 OR LESS (but more than $137,100) 1. Base amount under sleMOI)' fonnula ...... • .. • ...... • .. • • ...,.. $263,600 2. Enter amount of gross r~pte from space K ...... ,. $______3. Subtract line 2 from Una 1...... ,,, •• ,,,,, •• ,,, •.,. $______4. Enter tho amount of gross receipts from space K , . .. , • •• , • , , , , ...... ,. _,$'------6. Enter tho amount from llno 3 ...... , ...... ·)>---$ - - --- 6. Subtract l!no 5 from Uno 4 ...... , ••••••• •• , ...... ,.....:....$ ______7. Multiply llno 6 by .005 (entor figure hero) ...... , ...... ,. "'$:....______8. Interest charge. Enter tho amount from Uno 4, space Q, page 6 ••••••• •••••••• •••••••••.•••.•• )> .z-.______9. Flllng Fe& ...... ,. $ 20.00 10.1~J~::~;~~ ~~ ~!~~~ ~~~~. ~~~~.L.~ ~~~ ~.~?.~~.~~~~.~ ~~~.'~~: ...... ,.1$ I BLOCK 3: GROSS RECEIPTS OF MORE THAN $263,800 (but less than $527,600) 1. Enter the amount of gross r~pte from space K · • • • • • • • • • • • • · • • • • • ·•··-"-$______2. Base amount under staMol)' fonnula ...... _...... , $ 263.800 3. Subtract Uno 2 from line 1 ...... ~ $ ---·-· 4. Mulllplyllno 3 by .01...... ·~ ..:::$~------6. Royalty duo on the first $263,800 of gross receipts (under statutOI)' formula) .•••.. •• ,. $ U.;lli 6. Interest Charge. Enter tho amount fcom Uno 4, space Q, page 8 .•...•. •.••. . . •• ••• _. ""$______7. Flllng Foe...... , ...... , • • $ 20.00 9·~J~~~~f.rai:1° . ~~~~~~ ~~.~~.~~~~~~ ~~~. ~~~~~~,-~~. ~~~~~~...... ,, 1$ I IMPORTANn Your remittance must be In the fonn of M etsctron/c paymMI payable to Register of Copyrights. Seo page I of the general Instructions for more Information. ~~~~~~~~~~~~~~~~~~~~~~~~-- FORM SA1-2. PAGE 7. LE CHANNELS Instruction&: You must give (1) the number of channels on which the cable system carried television broadcast stations M to Its subscribers, and (2) the cable system's total number of activated channels during the accounting period. Ohanne1e 1. Enter tho total number of channels on which the cable l I system carried television broadcast stations. . . . • • • • . • • • • • • ...... • . • ...... 1.Q •.••••• ••.•• .••• •••: 2. Enter the total number of acllvated ~~~n:~~~na~~!~~ !~~~~~~ ~~~.t~~. ~~~~~.~ .t~~~~~I.~~ .~~~~~.~~~~ ~~~~~~~~- ...... I .~Q ...... I INDIVIDUAL TO BE: CONTACTED IF FURTHER INFORMATION IS NEEDED Odentlfy an lndlvldual we can contact about this statement of account.) N Individual to Name. M~fi.C! M: -~~ !'.l ~ !l)?fl.t~...... Telephone "flJ-JJ.r-?.~ ? ? ...... Be Oontaoted for Further Address ..1.~ ~9. ?~~ ~~ .Qi.~i~. ~ill!~".'~.Y. ~ l!i.t~. ?P.q .• ...•...... • ...... •••...... lnfonnatlon (!llrnb«, al16'f. Mt/ rou1e, tpll!tnefTI, or .We runb«) Coral Gables, FL 33146 ••. ••. •• (Ciii, ic:M',\ ~iaiO, i!Pi •• ••• •••• ••..•.•...... •.•• .•••••.• ••••.• ••••. •• ••• ••••.•••. ••.•••••...•...... •.. . Email (optional) • M~.~~~~~!i~l:':~ i; CERTIFICATION (This statement of account must be certified and signed In accordance with CopyrlghtOfflce regula· tlons, as explained In the general Instructions.) 0 Certification • I, the undersigned, hereby certify that (Check one, but only one, of the box&S.) D (Owner ottter than corporation or par1nershlp) I am the owner of the cable system as Identified In line 1 of space B; or 0 (Agent of owner othor than corporation or partnership) I am the duly authorized agent of the owner of the cable system as Identified In line 1 of space B, and that the owner Is not a corporallon or partnership; or [!) {Officer or partner) I am an officer Qt a corporation) or a partner (!f a partnership) of the legal entity Identified as owner of the cable system In line 1 of space B. • I have examined the statement of account and hereby declare under penalty of law that all statements of fact con tained herein are true, complete, and correct to the best of my knowledge, Information, and belief, and are made In good faith. [See 18 U.S.C. sec.10011 l."~ Handwritten signature: ...... ) l __) 'fyped or printed nrune: ..Ma..rio...... M. Bus..tama... .nt..e...... Title:.~~~ ...... (ntl4 d o16<1al l»'1tlo!1 fltld "1 C>Ol!Xf•l!on or jNlfMl1lip) Date: ....3/6/20.....15 , ...... Ptlvacy Act Nollw. Section t11 of tHlo 17 of lho Un/tod Ststo.t Coda alJ\hotlzet tho Copyrlghl Office to ool~ the peroo1111Jly Id~ Information (PIQ roquasted Oil thla form In Ofdu to Pf000$I yolll statement of accotKll. Ptl la MY por$<)(1-1 Infonnatlon that can be used lo ldeo1lfy Of trace an lndMduaJ, such as n8111Q, addnm, ll11d tel&!lhooe numbera. By proYldng Pll, you atD egroolng to tho roothe ul!O of It to establish and malntakl a pubflo record, v.tilch ~°' &ppeallng In \ho Olllce'e publlo hdexes end In ll08td1 toporte prep&'od fOf tho pub!lo. lho el foot of not pcovtd"1g tho Pit roquoatod Is that II may dolay ~ ot your alalemon I of aocount end Ila plaCOO'IOOl In tho completod record of elstementa of aocomt, Md It may affoct tho IGgal sulflcloncy of tho ntn11, a dotennhallon \hat would be made by a oourt or law. FORM SA1-2. PAGES. Name LEeAI- NAME OF O'ffllfl\ OF CNllE SYSWd: SH Services LLC SPECIAL STATEMENT CONCERNING GROSS RECEIPTS EXCLUSIONS p The Satellite Home Viewer Act of 1988 amended Tiiie 17, section 111 (d){1 )(A) of the Copyright Aot by adding the fol· lowing sentence: ~lat •tn determining the total number of subscribers and the gross amounts paid to the cable system for the basic statem&nt service of providing secondary transmissions of primary broadcast transmitters, the system shall not Include sub Concerning scribers and amounts collected from subscribers receiving secondary transmissions pursuant to seotlon 119.• Groas R11celpt1 Exclualona For more Information on when to exclude these amounts, see the note on page (YO of the general Instructions. During the accounting period, did the cable system exclude any amounts of gross receipts for secondary transmissions made by satellite canters to satellite dish owners? l!JNo DYES, Enter the total here and Hat the satellite carrler(s) below...... $ -- ·-·-----·-· II~ ••••.••.••••••••••..•.•.•••.• • •• • .•••.•••••••••••••••• Nemo _ ...... • • • • • • • • • • • • • •• ''' . ' ...... • •• • .. • Mollng •d Q INTEREST ASSESSMENT You must complete this worksheet for those royalty payments submitted as a result of a late payment or underpayment. Interest For an explanatron of Interest assessment, see page (YIO of the general Instructions. Aueument Line 1. Enter the amount of late payment or underpayment •••.•....•...... •••.•• $ ------ Line 2. Mulllply llne 1 by the Interest rate• and enter the sum here .•..•••• •. ••. .. .. Line 3. Multiply llne 2 by the number of days late and enter the sum here...... - Line 4, Mulllply llne 3 by .00274.. and enter here and In space L (page 6) block 1, line 2, or block 2, line 8, or block 3, llne 6 ...... $ ----- • To view the Interest rate chart click on www.copyright.gov/llCtJnsfngllnterest·rate.pdf. For further aasletance please contact the Licensing Division at (202) 707-8150 or llcenslngfltoc.gov. •"This Is lhe declmal equivalent of 1/365, which Is the Interest assessment for one day late. Note: If you are filing this worksheet covering a statement of account already submitted lo the Copyright Office, please Hsi below the owner, address, first community served, ID number, and accounting period as given In the orfglnel filing. O\Yner lll•l••·••t UUtU••··················· ...... 111111ut1•1•••111111Utfl UtltlUH•••••• ...... 1 ...... , ...... Address .... ,...... ,.. ,,,,,, ...... ,...... , ...... ,,,,, ...... u •••u •••• t ...... ID number ...... 1 ...... , ...... ,. First community served ...... Accountlng period ...... •...... •, ...... ,"''''''"'···.. ········ ...... ,., .. ,... . Privacy Act NoUce: Socllon 111 of title 17 of !ho UrJted StalM cooo aulhorlzea tha ~t O!f!C8 to collect !he personlllty klonllfylng Information o>m mqu6Slad oo lhls fonn In 0tdar to prOCGss )'CUI slatement of a USE THIS FORM WHEN: • You are the owner (or represent the owner) of a cable system; and • You are fifing the semiannual statement of account required by the copyright law; and • Your system's semiannual gross receipts for secondary transmissions (the flgure you glva In space K of the fonn)ls less than $527,600; and • You are also deposll[ng the required semlennual royally fee with the Licensing Division of the Copyright Office. IF YOUR FIGURE FOR SEMIANNUAL GROSS RECEIPTS IN SPACEK IS $527,600 OR MORE, USE SA3 {LONO FORM} GENERAL INSTRUCTIONS FOR SA1-2 (SHORT FORM) CABLE SYSTEMS stream and any multicast streams transmitted by the sta AND THE COPYRIGHT LAW (P.L. 94-553) tion constitute primary transmissions. Cable systems are subJeot to copyright llablllty for their use • Secondary transmfaslone. A secondary transmission of copyl'fghte royally and filing fees. See the Federal Register, August ming It transmits or run the risk of substantial civil (or, In 10, 2006 (71 FR45739) avaUable at www.copyright.gov/ some cases, crlmlna» llablllty for multiple acts of copyright fedreg/2006/71fr45739.html. The remlttance should be Jnfringement. payable to Register of Copyrights. Who Can Utilize the Statutory License 5 Send the completed statement of account and one leglble Under the statute and Copyright Office regulations, retrans copy of the statement of account to: missions are subJect to statutory llcenslng only If they are Library of Congress made by cable systems. Copyright Office Cable system. A "cable system" rs defined as "a faclllty, Licensing Division located In any State, territory, trust territory, or possession 101 Independence Avenue SE of the United States, that in whole or In part receives signals Washington, DC 20557-6400 transmitted or programs broadcast by one or more television For courier deliveries, see www.copyrlght,govlmall. broadcast stations licensed by the Federal Communications html for updated lnfonnatlon. Commission, and makes secondary transmissions of such slgnafs or programs by wires, cables, microwave, or other Note: Please DO NOT send pages consisting solely of communications channels to subscribing members of the Instructions. publlc who pay for such service." A system that meets this 6 The Copyright Office will retain your statement of account definition is considered a cable system for copyright pur and make It a part of our public records. You should, poses, even if the FCC excludes It from being considered a therefore, keep a copy of the entire statement, as filed, cable system because of the number or nature of Its sub~ In case you need It for future reference. scribers or the nature of its secondary transmissions. Note: For detailed Instructions concerning electronic pay~ Individual cable system. An Individual cable system Is ments, contact the Licensing Division tor Circular 74, which defined generally as "each cable system recognized as a Is also available at www.copyright.gov/clrcs/circ74. distinct entity under the rules, regulations, and practices of the Federal Communications Commission." In addition, two or more cable facllltles are considered as one lndivldual HOW THE STATUTORY LICENSE WORKS cable system If either: (A} the facllltles are In contiguous In general, having a statutory llcense means that a cable communities and are under common ownership or control; system can retransmit broadcast programming without vlo or (8) the facltltles operate from one headend. Thus, even If fatlng the copyright law, as long as it complies with certain they are owned by different entitles, two cable facllltles will paperwork requirements and, twice a year, deposits a royalty be considered as one Individual cable system If they share fee with the Copyright Office. a common headend. • The cable system can, without negotiated licenses or advance permission from copyright owners, retransmit WHAT A STATUTORY LlCENSE the signals of any U.S. television or radio station that It DOES NOT PERMIT YOU TO DO Is authorized to carry under FCC rules, regulations, or authori;;ations (plus Mexican or Canadian stations In cer Ttle statutory authority given to cab! e systems to retransrn lt tain cases); and televlslon and radio broadcasts under a statutoiy license Is limited In several ways: • The cable system must file statements of account with the Copyright Office and must also deposit a semlannual roy • Originations. To repeat: a cable system's statutory li alty. The amount of the royally, which Is established under cense extends only to secondary transmlsslons (retrans missions). It does not permit the system to make any a statutory formula, depends on the total of the system's ortglnatlons of copyrighted material without negotiated gross receipts for secondary transmission service. a license· covering that material. • Every six months, the cable system must send the Copy right Office a statement of account on this form, SA1-2 • Nonelmultaneous Retransmissions. In general, to be subject to statutory licensing under the copyright law, (Short Form), or on SA3 (Long Form) Of the gross receipts a cable retransmission must be simultaneous with the are $527,600 or more). broadcast being canted. As a rule, taping or other record • Each semiannual statement of account must be accom ing of the program ts not permitted. Taping for delayed panied by the deposit of a royalty fee covering retransmis transmission Is permlsslble only for some (not al~ cable sions during the preceding six months In the form of an systems located outside the 46 contiguous states; and, electronic payment payable to Register of Copyrights. even In these exceptional cases, there are further !Imita tions and conditions that the cable system must meet. Why Having a Statutory License Is Important Most television and radio broadcasts contain copyrighted • FCC Violatlons. The broadcast signals that a cable sys material. Without a statutory license, a cable system would tem can carry under astatutory Ilcense arelimlted to those either have to negotlate licenses for an copyrighted program- that It Is permitted to cany under FCC rules, regulations, GENEAAL INSTRUCTIONS, FORM SAt-2, PAGE QiQ. and authorizations. If signal carriage Is In vlolatlon of FCC receipt at the Copyright Office of the royalty payment that Is requirements, the cable system may be subject under the the subject of the request. The Debt Coflectlon Improvement Copyright Act to a separate action for copyright lnftinge Act of 1996 requires that refunds be made through electronic ment for each unauthorized retransmission. funds transfer (EFl). Note: Late payments are subject to • Foreign Signals. In general, the copyright law does not Interest assessment. Seepage(vfO of the general Instructions. permit a cable system to retransmit signals of foreign Contact the Licensing Division for additional Information. television and radio stations under a statutory license. How Royalty Fees Are Handled The only exceptions have to do with the signals of certain For purposes of computing the semiannual royalty fee a cable Mexican and Canadian stations. Unless foreign signals system must pay, the statute creates three brackets, depend fall within these exceptions, their carriage would not be ing upon the system's gross receipts from subscribers for authorized under a statutory license, even If permissible secondary transmissions during the accounting period: under FOO rules. 1 Gross receipts of $137,100 or leas: royalty fee of $52: • Program Alteration or Commercial Substitution. Ca ble systems are not permitted to alter the content of re 2 Gross receipts of more than $137,100 and less than transmitted programs, orto change, delete, or substitute $527,600: royalty fee determined by a formula based on commercials or station announcements In or adjacent percentage of gross receipts; to programs being carried. There Is only one exception: 3 Groes receipts of $527,600 or more: royalty fee de under certain circumstances, substitutions Involving com termined by a formula based on percentage of gross re mercial advertising matket research may be permitted. ceipts and on the number of distant stations carried by the system. Accounting Periods The statute establishes two six-month accounting periods A cable system Is required to deposit Its semiannual roy for purposes of computing the royalty fee and reporting the alty fee with the Copyright OHlce at the time It flies each Information called for In the statement of account. The first statement of account. The royalty must be made by elec semiannual period runs from January through June, and tronic payment, and the related statement of account must the second from July through December, of each calendar be flied by the appropriate deadline accompanied with a year. You must use these accounting periods whether or not cover letter (see circulars 74a, 74b, and 74c ).The Copyright they coincide with the beginning or ending of your cable Office transfers these fees Into a special fund, which Is later system's fiscal year. distributed to copyright owners as payment for the use of their works by cable systems. Filing Dates ----- · ---··-.,. T ·-~ · · · ------Cable systems are given 60 days after the close of each ac PURPOSES OF THE STATEMENT OF ACCOUNT counting period In which to flie their statements of account, filing and royalty fees. The foliowlng are the two filing dates The law requires a cable system to file statements of account you must observe each year: for two purposes: • For the January-June accounting period: File between • To show the basis forthesemlannual royalty fee the cable July 1 and August 29, Inclusive; system owes under its statutory flcense; and • For the July-December accounting period: Fifa between • To give the lnfonnatlon needed to allocate royalty fees Januaf}' 1 and March 1, Inclusive. among copyright owners. Note: If August 29 or March 1 falls on a weekend or federal Thus, some of the Information you give on your statement holiday, statements of account and royalty fees maybe made of account has nothing to do with computing your gross on the next succeeding business day. receipts or deciding the amount of your royalty fee. Never theless, you are required to give Ute additional lnfonnatlon In Statements of account, royalty and fifing fees received order to provide the basis for the second phase of the statu before the end of the accounting period wlll not be accepted. tory llcense: the distribution of fees to copyright owners. Statements and fees received alter the August 29 or March 1 deadlines will be accepted for whatever legal effect they may have, If any. The Copyright Office takes no position as to what this effect will be, and a cable system that files late runs a substantial risk. Refunds Refund requests must be received within 60 days after the close of the filing period (by April 30 or October 28). Also, refund requests for late and amended payments must be received before the expiration of 60 days from the date of GENERAL INSTRUCTIONS, FORM SA1-2, PAGE Ov). SOME POINTS TO REMEMBER space G of the fonn). Do not llst stations that were not In fact ABOUT STATUTORY LICENSES: carried during that period, even If the FCC has authorized their carriage, and even If they were carried during earller • As long as a cable system keeps Its statutoryllcense accounting periods. In force by complying with the requirements of the new copyright law, It Is not obliged to negotiate Low Power Te/evlslon Stations. The Copyright Act In sec Individual copyright licenses for retransmission of tion 111(f) delineates the local status of a low power televi television and radio broadcasts. sion station as follows: "In the case of a low power televl" • The following are among the various ways a cable slon station, as defined by the rules and regulations of the system can lose Its statutory license: by falllng Federal Communications Commission, the 'local service to file the statements of account or royalty fees: area of a primary transmitter' comprises the area within 35 by taping for delayed retransmission; by carrying miles of the transmltter site, ex<:ept that In the case of such signals In vlolallon of FCC requirements; by car a station located In a standard metropollt!lll stat!sllcal area riage of certain foreign stations; and by alterlng which has one of the 50 largest populations of all standard programs or substituting commercials. metropolitan statlstlcal areas (based on the 1980 decennial census of population taken by the Secretary of Commerce), • Without a statutory license, a cable system can the number of mlles shall be 20 mlles.t' This means that a low be sued by a copyright owner for the full range power television station carried by a cable system within an of civil remedies for copyright Infringement, In area as defined above will be considered "local." cluding Injunctions, actual damages and profits, or statutory damages (of up to $150,000 In cases of Translator Stations. Translator stations must be listed. For willful infringement). The statute also provides for copyright purposes, a translator station is a primary transmit criminal penalties In cases of wlllful Infringements ter not only of any programs it originally transmits but also for commercial purposes. of all the programming It receives from its parent station and retransmits. Thus, If your cable system carried signals ema nating from a translator station, you must list the translator WHAT FACTS THE STATEMENT OF ACCOUNT station In space G. And, If your system separately carried SHOULD COVER signals from both a translator station and its parent station, All of the Information you give In a statement of account must both the translator and the parent station should be Identified. be an accurate presentation of the facts existing during the • Type of Translator Station. Note that for any translator accounting period covered by that statement (or, In certain station listed Jn space G, the type of station Indicated In cases, on the last day of that period). column 3 should be that of the parent station. • Spaces D, G, H, and I. List all areas served, stations Multloast stream. A multicast stream Is a digital stream of carried, and certain substitute programs carried at any programming 1hat Is transmitted by a television broadcast time during the accounting period. station and is not the station's primary stream. • Spaces K snd M. You should report the total of gross Simulcast. A simulcast Is a multicast stream of a television receipts attributable to the particular accounting period broadcast station that duplicates the programming trans In space K. The figures requested In space M should be mitted by the primary stream or another mulllcast stream the appropriate totals of channels for the entire period. of such station. • Space J. This space (part-time carriage log) has been Deflnfllons of 1}'pes ofStations. Under the Copyrtght Act, deleted. the terms used In connection with column 3 of space G mean the following: • Spaces 8 1 C, E1 and F. Even if items of Information con cerning the owner, system, subscribers, or rates have • Network station. Aprimary stream of a television broad· changed during the accounting period, your statement of cast station that Is owned or operated by, or affiliated with, account does not need to reflect the change. Give only the one or more ofthe television n etwotks In the United States facts existing on the last day of the accounting period. If provlding nationwide transmissions, and that transmits there were different owners durfng the accounting period, a substantial part of the programming supplied by such only the owner on the last day of the accounting period networks for a substantial part of the primary stream's should submit a single statement of account and royalty typical broadcast day. fee payment covering the entire accounting period. The term network station also applfes to a multicast stream on which a television broadcast station transmits SPACE G (Primary Transmitters: Television) all or substantially all of the programming of an Intercon nected program service that Is owned or operated by, Stations Actually Canted. Make sure that space G lists all or affiliated with, one or more of the television networks the televlslon stations your system actually carried at any described above and offers programming on a regular time during the accounting period (except as explained In GENERAL INSTRUCTIONS, FORM SA1-2, PAGE M basis for 15 or more hours per week to at least 25 of tlons, and programs Involved In any nonnatwork talevlslon the affiliated television licensees of the interconnected programming that was carried In whole or In part beyond program setvlce In 10 or more states. the local service area of the primary transmitter, under rules, regulations, or authorizations of the FCC parmltting the sub • Independent station. A primary stream or a multicast stitution or addition of signals under certain circumstances. stream of a television broadcast station that Is not a net~ The applicable present and former rules and regulations are work station or a noncommercial educational station. For Identified In Item 3, which follows. · purposes of determining a station's type-value this cate· gory Includes all specially, Canadian and Mexican stations. What Programs Must Ba Listed. You must list a program • Noncommercial education el station. A primary stream In space I if all three of the following conditions apply: or a multicast stream of a televlsion broadcast station that Is a noncommerclal educational broadcast station; whtch 1 The program Is a nonnetwork television program, A is owned and operated by a publ!c agency or nonprofit "nonnetwork televlslon program" Is a program that was private foundation, corporation or association; or owned not being broadcast by a station as part of a network tele· an operated by a munlclpallty and which transmits only vision broadcast at the time the cable system earned It. noncommercial programs for education purposes. 2 The program is picked up from a distant station. A "distant station" Is a television station earned by a cable SPACE H {Primary Transmitters: Radio) system In whole or In part beyond that station's local service area. Atelevision station's local service area Is the All·Band Carriage. If your system carried FM radfo stations area within which the station Is entltlad to Insist upon Its on an all-band basls, you are not required to Ust every sta signal belng retransmitted by a cable system pursuant to tion that subscribers might possibly have received during rules, regulations, and authorizations of the FCC In effect the accounting period. Instead, Copyright Office regulations on April 15, 1976. Effective on July 1, 1994, a station's require you to monitor your FM transmission service at your local service area also Includes the station's telev/slon system's headend from time to time during the accounting matl 2 Effective Januaiy 1, 1990, the FCC amended Parts 73 • As provided In the Satellite Home Viewer Act [amend and 76 of Its rules relating to program exclusivity in the ment of section 111 (d) (1 )(A)], any amounts collected by cable and broadcast Industries. a cable system/distributor from subscribers should be excluded from the cable system's detennlnatlon of gross SPACE K (Gross Receipts) receipts received for the basic seivlce of providing sec ondaiy transmissions of primary broadcast transmitters What Are Gross Receipts? The gross receipts you enter In pursuant to the cable statutory license, section 111 (c) space I< are the receipts for the basic service of providing to (Q, This provision contemplates the situation where secondaiy transmissions of ptimaiy broadcast transmltters. the same entity may be offering both satellite and cable They Include the full amount of monthly (or other periodic) distribution of secondary transmissions of primary broad setvlce faas for any and all services or tiers of satv/ces that cast transmitters. Include one or more secondary transmissions of television • If a cable system otters both s ate!lite and cable services to or radio broadcast signals, for additfonal set fees, and for sate111te dish owners, then It may exclude those amounts converter fees. All such gross receipts shall be aggregated attributed to the satellite service under section 119 of1he and the royalty fee calculations shall be made against the agw act. Such a system should declare on page 8 the amount gregated amount. Gross recelptsforsecondaiytransmlss!on of gross receipts th at are excluded for this service and fist services do not Include Installation Qncludlng connection, the name and address of each satellite carrier In which relocation, disconnection or reconnection) fees; separate the system has contracted as a distributor or agent to charges for security, alarm, or facslmlle services; charges market the carrier's retransmissions service. The system for late payments; or charges for pay cable or other program should also maintain separate records of the subscriber origination seivlces provided that the origination services fees received for satelflte earner retransmissions. are not offered In cornbfnatlon with secondaiytransmlsslon service for a single fee. Aoorua/ Basis. If your revenue accounts are kept on an accrual basis, the figure you give In space K should be the total of au gross receipts for secondary transmission ser SATELLtTE CARRIER vice accrued for the accounting period. Subtract bad debts GROSS RECEIPTS EXCLUSION actually written off during the period and add previously • The Satellite Home Viewer Act of 1988, Publlo Law 100- written-off debts that were actually recovered during the 667, as amended by Public Law 103-369, Public Law period. (However, do not make adjustments for bad debts 106-113, Public Law 108-447, and Public Law 111-175, for secondaiy transmission service furnished before Janu~ establishes a statutoiy license for certaln secondary trans aiy 1, 1978.) missions made by satell!tecarrlers to satellite dish owners. Cash Basis. If your revenue accounts are kept on a cash basis, Satellite carriers are subject to copyright llabll!ty for their your gross receipts are all amounts actually received during use of copyrighted material when they make secondary the accounting parfod for sscondaiy transmission service. ''transmissions" (retransmissions of television broadcasts) to satellite dish owners and they make a direct or Indirect SPACE L (COPYRIGHT ROYALTY AND FILING FEES) charge for that service. Satellite carrier retransmissions of the copyrighted programming embodied In the signals Statutory Fonnulas for Computing the Royalty and of non-network or network stations are eligible under an Fiiing Fees operational system of statutory licensing that is estab lished in section 119 of the Copyright Act. For cable systems whose semiannual gross rece{pts are under $527 ,600, the method of calcuratrng the royalty fee depends • A satellite carrier Is defined In the Satellite Home Viewer on the amount of gross receipts reported In space K. Extension and Reauthorization Aot of 2004 as "an entity that uses the facilities of a satellite or satellite service Gross receipts of $137, 100 or less. If the figure you give licensed by the Federal Communications Commission, In space K ls $137,100 or less, your royalty fee has bean and operates In the Flxed-Satelllte Service under part 25 calculated for you In accordance with the formula set out In of title 47 of the Code ofFederal Regulations or the DI reel section 111 (d)(2)(C) of the Copyright Act as adjusted. The Broadcast Satellite Service under part 100 of tltle 47 of amount Is $52 and the filing fee Is $15. Do not use blocks the Code of Federal Regufatfons, to establish and oper 2and 3. ate a channel of communications for polnt-to-mulllpolnt Gross receipts of more than $137,100 but less than or distribution of television station signals, and that owns or equal to $263,800. If the figure you give in space K Is more leases a capacity or service on a satelllte In order to pro than $137,100 but less than or equal to $263,800, your vide such point-to-multipoint distribution, except to the royally fee must be calculated In accordance with the for extentthatsuch entity provides such distribution pursuant mula set out rn section 111(d){2)(C) of the Copyright Act, totariftundertha Communications Act of 1934, other than as adjusted. Follow the step-by-step calculatlons In block for private home viewing pursuant to Section 119." 2 of space Land add the $20 flllng fee. Do not use blocks GENERAL INSTRUCTIONS, FORM SA1-2, PAGE (vl0 1and3. Gross receipts of more than $263,800 but lees then $527.600. If your gross receipts figure In space K Is more than $263,800 but less than $527,600, you must use the fonnula set out In section 111 (d)(2)(D) of the Copyright Act, as adjusted. Follow the step-by-step calculations In block 3 of space L and add the $20 filing fee. Do not use blocks 1and2. Interest Charges for Underpayments and Late Payments Underpayments or late payments received after the flllng deadllne shall be subject to an Interest assessment. Cable systems must calculate their own Interest charge. (A work sheet Is provided at space Q, page 8.) The Interest rate set for a speclllc accounting period is the U.S. Treasury Current Value of Funds Rate In effect on the first business day after the close of the flllng deadline for that accounting period. Cable systems can obtain the Interest rate for the applicable accounting perlod(s) by callrng the Licensing Division at (202) 707MS150, or by elf eking on towww.copyrlght.gov//;censingl lnterest-rate.pdf. For underpayments and late payments, the Interest shall begin to accrue on the first day after the close of the filing date for that accounting period. The accrual period ends on the date that the remittance Is received In the Copyright Office. Note: The Office ahall not require, nor notify a cable system of, an Interest charge of $5.00 or less. Library of Congress Copyright Office Licensing Division 101 Independence Avenue SE Washington, DC 20557-6400 Official Business Penalty for Private Use $300 Forwarding Service Requested OFFICIAL BUSI NESS UNITED STATES COPYRIGHT OFFICE STATEMENT OF ACCOUNT SA1-2 (SHORT FORM) SPECIAL NOTICE ABOUT THIS STATEMENT OF ACCOUNT IMPORTANT Filing Fees Effective January 1, 2014, pursuant to the Satellite Television Extension and Lornlism Act of 2010 (STELt\), which granted authority to the Copyright Office to establish fees for the filing of statements of account (SOAs) under the section m, 119, and i22 statutory licenses, the Office now assesses filing fees for all SOAs for current, past, and future accounting periods. For details, see the lledeml Register, November 29, 2013 (78 FR 71498 f1ttp://1YIVll'.COp)'rigl1t.go1'/ fcdrcg12013(78fr71498.pdf). Please be nd\•ised that the filing fee is deducted before the royalty payment is credited; thus the omission of the appropriate filing fee will result in au underpayment of royalty fees. Please remit the roynlly fee and filing fee in one EFT payment. (SOA I filing fee: $15; SOA2 filing fee: $20). Multicast versus Simulcast Multicast is a digital stream of programming llu\l is trnnsmilled by n television broadcast slation and is not !he station's primary stream. Simulcast is a multicast stream of n television broadcast station that d11111icates the programming trnnsmiltcd by the primary stream or another multicast stream of such slalion. Photocopy Requh'ed A legible copy of the semiannual statement of account must be submitted together with the original statement of account to the Copyright Office. Fillable SOAs Available Online Access the fi II-in statement of account form at www.c:opyrigllt.go1•1forms/SAJ-2c-2011.pdf. Complele it on a personal computer and print it out. Or print out the form and complete it by hand in dark ink. Give all the required information. Elecll'onic Payment of Royalty and Filing Fees Required Detailed instmctions for making royally payments via eleclronic funds trnnsfcr (EFT) are contained in circulars 74A, 74u, and 74c, which are available nt www.copyrighr.go11/clrcslcll'c74 or by contacting the Licensing Division (8:30 AM and 5:00 PM eastern time) by phone at (202) 707-8150, fax at (202) 707-0905, or email at [email protected]. The remittnnce, which must include lhe appropriate filing fee, must be made payable to Register of Copyrights. Remittance Advice Required Federal regulations [37 C.F.R. sec. 201.17 (k)) require that a remiltnnce advice be attached to statcment(s) or account. A copy of the remillance advice must be sent by email or fox to the Licensing Division. The Office uses this rcmiltancc infom1ntion to ensure the funds received by EFT' are correctly allocated to each statement of account. Access a remittance advice form at www.co1>yright .govllice11si11glre111itta11ce-ad\lice.pdf. Ceased Opcmtions P1·occdurcs If your cable system completely shut down operations during lhe accounting period, report the facts as they existed on the Inst day of operations and submit the SOA with the associatecl royalty and filing fee payments and a cover letter informing the Licensing Division of ceased operations. If your cable system had no subscribers or gross receipts during the entire accounting period, do not submit the SOA or any fees. You do not need to notify us in this case. Important: Review Filings Please review nil elements of your filing(s) before submilting them. Filing properly, including an accurate advice, fncilitntcs processing of your stalement(s) of account and payments, minimizes the need for us lo contact you with questions, and reduces administrative and other costs. Library of Congress Copyright Office Licensing Division 101 Independence Avenue SE Washington, DC 20557-6400 Tel: (202) 707-8150 (8:30 AM-5:00 rM, eastern time) Fax: (202) 707-0905 Email : lice11si11g@/oc.gol' or Web: www.copyriglrt.gov/lice11si11g THIS FORM IS EFFECTIVE FOR ACCOUNTING PERIODS BEGINNING JANUARY 1, 2011 SA1"2 If you are filing for a prior accounting period, contact the Licensing Division for the correct form. Short Form Retumto: STATEMENT OF ACCOUNT FOR COPYRIGHT OFFICE USE ONLY library of Congress for Secondary Transmissions DATE RECEIVED AMOUNT Copyright Office Ucens/ng Dlvlsto11 by Cable Systems (Short Form) $ 101 fndopondenceAve. SE Wosl1/11g/on, DC 20557-6400 (202)707-8160 General Instructions are at the end of this form (pages 0)-(vll)]. ALLOCATION NUMBER For courier dellverles, soo pag& II of the general lnatructlon9. A ACCOUNTING PERIOD COVERED BY THIS STATEMENT: (Check one of the boxes end flll In the year date.) Accounting OJanuary 1...June 30 ...... •••••.• [!]July 1-December 31 .?0.1.4 •..•.•.•. Period {Year) (Year) INSTRUCTIONS: Give the full legal name of the owner of the cable system In line 1. If the owner Is a subsldhuy of another corporation, give the full B col))Olate title of the subsidiary, not that of the parent corpol'atlon. Owner In fine 2, llst any other names under which the owner conducts the business of the cable system. If lhero woro Cfiffarent owners during the accounting period, only 1110 owner on the last day of Ille accoonllng period should submll a single statement of account and royally fee payment covering lhe entire accounlfng period. [j] Check here If this ls the system's first flllng. II not, enter the system's ID number assigned by the U<*!slng Division. 1 LEGAL NAME OF OWNER OF CABLE SYSTEM: HConlrol Holdings LLC 2 BUSINESS NAME(8) OF OWNER OF CABLE SYSTEM (IF DIFFERENT}: 3 MAILING ADDRESS OF OWNER OF CABLE 8Y8TEM: J.~~~ ~?.~~~ .!?!~!~ .ti.i~.~~~Y. ~l:l!l.~ -~~~ ...... (H\n'ilef, a!Jee~ n.1110\lle, 'f)Allmtnl, or "'1tlM~ {Ciy;i;.,,;,:Coral Gables, ;u.;;,:is;,; .•.•.•..Florida ' ...... 33146 ...... ' ...... lnetruotlon1: In llne 1, give any busln&aa or ttade names used to Identify the business and operation of the system unless these names c alroady eppear In apace B. In llne 2, give the malling address of the system, II different from the addreM given In apace B. System IDENTIFICATION OF CABLE SYSTEM: 1 Optical Telecommunications Inc. MAILING ADDRESS OF CABLE SYSTEM: .~ ?~~ .~.~~!~. ~i~i ~. H ~~~~~~ -~~.I!~.?~~ ...... ~ .iroe~ """ lll lnatructlona: Ual each separate community ~ed by the cable ayatem. A "community" ls the samo as a •community unit" as defined In FCC rules: •a separate and distinct community or munlcipal entity Qncluding unlnoorporalod communlUes within unlnoorporated D areas and Including 61ngle, discrete unincorporated Mlas).• 47 C.F.R. §76.6(dd), Tho tlral community that you list will serve aa a fonn Area of system ldontlflcallon hereafter known aa !he "HIS! community.• Please use It es the ffrst community on all future filings. Served Note: Enliti 6S f!lld propeillos such 1121 ho!el~, spa.rtmoola, oondom'ol\lms, or mobile home palk8 &houtd be repOtted In paiB!lth61es below the ldenlilled city. ,_,,_ ----...... CITY OR TOWN STATE CITY OR TOWN STATE Flrat >- ./;l~P!': ~ ~~.f~~~.s. ~?.!!~~ .~1.u.~J., •.• , , •• f!q~~. Prlveoy Act NoUce: Soctlon 111 of UllO 17 of IM United Stales Code 8\llhorlz&S the Cop)11ghl Ottioe to oollecl the p«sonaR)' kleolff)fng lnfonnallon (PIQ roquosted on this fOITTI In «der to proce&S yoor s1alomen\ or account Pl I la any per600AI lnfOllTl81lon lhat can be ll&8d lo ldeollty a trace 81\ lndMdual, IUch as namo, addleM, and telaphcna numbore. By providing Pll, you rva agl'oelng to tho routine use of It to O!ta.bl!sh and malnlm a publlo rooool, whl<:h Include& appeallog In Iha Offlco'a publlo lndexea Md lo 88ardl reports pcapated foe the pob6o. Tho effoc\ of not pn:Mdlng the Pit requetted Is that It may delay pcocesslog of your statement of 80000/\l lll -<~ ~ ~'-\ m ~ ... (J) 3 .... c)>c % 3 ;: SECONDARY TRANSMISSION SERVICE: SUBSCRIBERS AND RATES E In General: The information In space E should cover all categories or secondaJY transmission service of the cable system, that is, the retransmission of television and radio broadcasts by your system to subscribers. Give inronnatlon Secondary about other services {Including pay cable) In space F, not here. All tho facts you state must be those existing on t11e last Transmission day of the accounlfng period (June 30 or December 31, as the case may be). Service: Number of Subscribers: Both blocks In space E call for tho number of subscribers to the cable system, broken Subscribers down by categories of secondary transmission service. In general, you can compute the number of subscribers in each and Rates category by counting the number of bllllngs In that category (the number of persons or organizations chorged separately for the particular service at the rate Indicated- not the number or sets receiving service). Rate: Give the standard rate charged for each category or service. Include boU1 the amount or the charge and the unit in which it is generally billed. (Example: "$20/mth'). Summarize any standard rate variations within a particular rate category, but do not Include discounts allowed for advance payment. Block 1: In the !ell-hand block in space E, the form lists the categories of secondary transmission service that cable systems mosl commonly provide to their subscribers. Give the number of subscribers and rate for each llsted category that applies to your system. Note: Whom an Individual or organizalion Is receiving service that falls under different categories, lhat person or entity should be counted as a subscriber In each applicable cat~ory. Example: a resldenllal subscriber who pays extra for cable service to additional sets would be Included In the count under "Service to the first set," and would be counted once again under "Service to additional sat(s)." Block 2: If your cable system has rate categories for secondaJY transmission service that are different from those printed Jn block 1, (for example, tiers of services that Include one or more secondary transmissions}, list them, together with the number of subscribers and rates, In the right-hand block. A two- or three-word description of the service ls sufficient. 1---· I 1------.. BLOC~ 1 . - l-.. BLOCI~ 2 _ NO.OF NO. OF _GAl:_~gORY OF SERVICE SUBSCRIBER_~I RATE CATEGORY OF SERVICE;j SUBSCRIBERS RATE Resldentlal: •Service to first set 1,300 I $29.52 •Service lo addilional set(s) 0 •FM radio (if sepamte rate) 0 Motel, hotel 0 Commercial 0 Converter 0 • Rosfdenlfal 0 •Nonresidential 0 SERVICES OTHER THAN SECONDARY TRANSMISSIONS: RATES F In General: Space F calls for rate (not subscriber) Information with respect to all your cable system's services that were Services nol covered in space E, that Is, those services that are not offered in combination with any secondary transmission servfce Other Than for a single fee. Thero are two exceptions: you do not need lo give rate Information concerning (1) services furnished Secondary at cost or (2) services or facllllfes furnished to nonsubscrfbers. Rate Information should Include both the amount of the ll'ensmlsslons: charge and the unit In which it is usually bflled. If any rates are charged on a variable per-program basis, enter only the Rates lettors "PP" in the rate column. Block 1: Give the standard rate charged by the cable system for each of the applicable services listed. Block 2: List any services that your cable system furnished or offered during lhe accounting period that were not listed in block 1 and for which a sapatate chaige was made or establfshad. List these olhar services In the form of a brief (two- or three-word} description and Include the rate for each. 1------~ - · -- ---·--- -- ·····-·--·------< BLOCK 1 I BLOCK 2 --~ATEG_ -- --·· 1. CALL 2. B'CAST 3.TYPE 4. LOCATION OF STATION SIGN CHANNEL OF NUMBER STATION -- -·-·-···-- ··-····- WZ.VN 26 N Naples Florida WA NA-LP 14 8 NaplcsFlorlda WINK 11 Naples FlorJda wxcw 46 j I I Naples florida WFTX 36 I I Naples Florida WRXY 49 I I Naples Florida WBBH 20 N INaples Florida WGCU 30 E ' Naples Florida W#DT-CD 43 "'~"""~' \'\'\.ZE-1.D 51 1gI1 Naple s Florida I~ I I I I I I I -- I I - - ··-· ...... --·· -· ·· FOAM SA1-2...... PAGE :·:. 4. -..:.. . -~ .. -·-·- ~--- ...... ---- -· ------~·-- --·------Nam& LE PRIMARY TRANSMITIERS: RADIO In General: List every radio station carried on a separate and discrete basis and Ust those FM stallons carried on an H all·band basis whose signals were generally receivable by your cable syslem during the accounllng period. Prim pry Specie! fnstrucUons Concerning All· Band FM Carriage: Under Copyright Office regulaHons, an FM sfgnal Is genarally TransmiUsra; recervable If (1) It Is carried by the system whenever It ts received at the system's headand; and (2) itcanba expected, on Red lo the basis of monitoring, to be received attha headend, wllh the system's FM antenna, during certain stated Intervals. For detailed lnfonnatron about the the Copyright Office regulations on !his point, sea page Qv) of the general lnslrucllons. Column 1: ldentlry the call sign of each stauon carried. Column 2: State whether Iha station Is AM or FM. Column 3: If Iha radfo station's signal was electronlcalty processed by the cable system as a separate and discrete slgnol, Indicate this by placing a check mark In the "SID" column. Column 4: Give the slallon's locallon (the community to which the station Is licensed by the FCC or, In the case of Mexican or Canadian stations, If any, the communltyw!th which the stalfon Is ldenllfied}. - -·- -· -----···- CALL SIGN AM or FM S/D LOCATION OF STATION CALL SIGN AM or FM SID LOCATION OF STATION 1 ----., I ----, -I I ____, I I -----. ----, -----. --.., I ...... --.. I ----, l I ----., I I -----, I I ____, I l -----. I I ____, I -----. -----. I I -----. I I -----. I -----. - ----., I I -----. 1 ~ 1 I -----. I I - I I ----. I - ----. ------. I~ ----, I I ------. ~------· .. .J ------· ·- FORM SAt-2. PAGE 5. --··------·------···--·-·-- L.EOAl. NAME Of OWNER OF CABLE SYSTEM: Name HControl Holdings LLC SUBSTITUTE CARRIAGE: SPECJAL STATEMENT AND PROGRAM LOG In General: In space I, Identify evety nonnaf\Vork television program, broadcast by a distant station, that your cable system carried on a substitute basis during the accounting period, under speclflc present and fonner FCC rules, regula· I lions, or authorizations. For a further explanallon of the programming that must be Included In th!s log, see page (v) of the general instrucUons. Substitute ------_,_ _ ------! Carrlege: Specie! 1. SPECIAL STATEMENT CONCERNING SUBSTITUTE CARRIAGE Statement end did • During the accounting period, your cable system carry, on a substitute basis, ~ nonnetwork television program Program Log broadcast by a distant station? UYes l!J No Note: If your answer Is "No,• 1eave the rest of this page blank. If your answer Is "Yes,• you must complete the program log In block 2. ~...... -----········ ... ·-··· ----··-·----! 2. LOG OF SUBSTITUTE PROGRAMS In General: List each substrtute program on a separate Una. Use abbravlntlons wherever possible, If thelr meaning ls clear. If you need more space, please attach addlllonal pag8S. Column 1: Give the title of every nonnetwork television program ("subslllute program'' that, during the accountrng period, was broadcast by a distant station and that your cable system substituted for the programming of another station under certain FOO rules, regulations, or aulhorl~allone. See page (v) of the general Instructions tor further Information. Do not use general categories like "movies" or "basketball." List specific program !Illes, for example, "I Love Lucy" or "NBA Basketball: 76ers vs. Bulls." Column 2: If the program was broadcast llve, enter "Yas". Otherwise, enter "No." Column 3: Give the call sign of the station broadcasting Iha substitute program. Column 4: Give the broadcast station's location (the community lo whlch the station is licensed by the FCC or, In the case ot Mexican or Canadian stations, If any, the community with which the station Is Identified}. Column 5: Give the monlh and day when your system carried the substitute program. Use numerals, with the month first. Example: for May 7, give "5fl.n Column 6: State the tlm8S when the substitute program was carried by your cable system, List the times accurately to the nearest five minutes. Example: a program carrled by a system from 6:01 :15 p.m. to 6:28:30 p.m. should be stated as "6:00-6:30 p.m.• Column 7: Enter the letter "Ru It the listed program was substituted for programming that your system was 1aqulrad to delete under FCC rules and regulations In effect during the accounting pel'lod; enter the le\Cer "P" If the listed program was substituted for programming that your system was pem1ltted to delete under FCC rules and regulations In effect on October 19, 1976• .. _ ·---·· -·- ·--·· --·---~-----t WHEN SUBSTITUTE SUBSTITUTE PROGRAM CARRIAGE OCCURRED 17. RCASON !------···· ·-· ------.. ----~>----~------< FOR 6. MOlmt 6. TIME'S I OELETlON 1. TTTlE OF PROGRAM 2. LM!? I 3. STATION'S I Yes omo CALL SfON -4. STATION'S LOCATION AND OAY FROM - TO ·-·- ··-·-····-···· -- -· -- ·1-1 ,-_ :1,-1=1 1, =-=1F-=-~ I 1_1I I,__ - . I l_-_I l_I 1_: l~- 1 I - I ·_1 ==1_ I I-I 1-= I-- . II 1-:-I - ;-1f ~--- - I I ----- H 1=: I;=, _~ FORM SA1·2. PAGE 6, Ne.me LEGAL WJ.IE OF OWHER OF CABl.E SYSJDd: HControf Holdings LLC K GROSS RECEIPTS Instructions: The figure you give In th1s apace detetmfnes the fonn you tile end the amount you pay. Enter the total of Qro.111 Receipts all amounts (gross receipts) paid to your cable system by subscribers for the system's secondmy transmission s81Vlce (as ldenltfled tn space E) during the accounting period. For a further explanetron of how to compute this amount, see page (vO of tha general lnslrucllons. • Gross receipts from subscribers for seC-Ondary transmission service(s) $ 230,256.00 during lhe accounting period ...... ~ ...... IMPORTANT: You must complete a statement In space P concerning gross receipts. IAtf\oult<>for-rooo/pllJ COPYRIGHT ROYALTY AND FILING FEES L lnatructons: To compute the royalty fee you owe: Copyright • Complete block 1, block 2, or block 3 RovattyFee • Use block 1 if the amount of gross reoolpts In space K Is $137, 100 or less • Use btock2 if tho amount of gross receipts In space K Is more than $137,100 but less than or equal to $263,800 • Use btock3 if tho amount of gross receipts In space K Is more than $263,800 but less than $527,600 See page (vi) of the general Instructions for more !nfonnal!on. BLOCK 1: GROSS RECEIPTS OF 1_137,100 OR LESS ln1!ructlons1 As a cable system \'with grGSa reoolpls of $137,100 or fess, the royaltyfoa that you must pay forthlsalx·monlh acoounUng perlod Is $52.00 $ Line 1. Royalty fee for accoun11og period • • • • . • . • • . • • . • • • • • • • . . • . . . • • • • • • . • . • . • . • • . • . • • • • . • • • • .. 52.00 Una 2. Interest charge. Enter Iha amovnt from line 4, space Q, page 8 • • • • • • • • · · • • • · • • · • • · • • • • • • • • • · _,$______Uno 3. Fiiing Fee...... , ••. , ••••.• , •• , , , , , • , , ... , ••• , , • , , .. , • • • . $ 16.00 ~= ~~~~~~L;~~~~-~-~.~l-~f~~.~~~~ .~~~~~~. ~~~.~~.~~.~~,~~-~~.~[-~~...... ' ...... 1$ I BLOCK 2: GROSS RECEIPTS OF $263,800 OR LESS (but more than $137,100) 1. Base amount under slaMory fonnula •••••••••••.••• , •••• , .... , •••• ·>- $263.800 2. Enter amount of gross recelpte from space K , .••••••••.•••••• , • , ••• ~ $ $230,256.00 3. Subtract line 2 from line 1,, •..•. ,., •••.••• , •••• , ... ,.,,,.,, ... ,, ..... $ $33,544.00 4. Enter the amount of gross r~pts from space K ...• _... _.....•• _••••.•••••.•••• ._ $ $230,256.00 6. Enter the amount from Hne 3 ...... , ...... ,,.__$___ __:.$_33_,,'--5-'-44.:.c..O..:..O::... 6. Subtractlfna6 from llna4 ...... , •••••••••••• ,., .... ,,. $ $196,712.00 7. Multlplyflne 6 by .005 (enter figure here) ...... , ...... , ...... ~$ 963.56 8. Interest charge, Enter the amount from lfne 4, space Q, page 6 •••••••••. , •• , .... , •••• , , •••••• i. $ 1.97 9. Fllln9 Fe& ...... , • • • • • • • • • . • • . • • .. • . . • • • • ... $ 20.00 10 • ~J~B~~~~~ ~~ ~!~~~~ ~~~~ :~~~.~~ ~~~ ~~~.~~.~~~~~ ~~~.'~.~: •.. ,., .. ,.. ,... ,~l$ 1,005.531 BLOCK 3: GROSS RECEIPTS OF MORE THAN $263,800 (blrt less than $527,600)_ 1. Enter the arnoont ol gross receipts from space K • · ...... ~$ ______2. Basa amount under slatulory formula •••••••• , • • • .. • • • • • • • .. • • • • • • • • ... $ 263,800 3. Subtract line 2 from llne 1 ...... ~ -'-$______4. Mu!Uply Uno 3 by .01 ...... ,. _$ ______6, Royalty due on the first $263,800 of Qross receipts (under statutory formula) , •• , •• , • ._ $ $1,319 6. lnter&at Charge. Enter the amount from tine 4, space a, page 8 ••••••••••••..••••• • $______7. Fiiing Foo ...... ,. $ 20.00 6. ~J~a:~~:.i-~:70. ~~~,.~~- ~~.~~.~~~~~~ ~~~.~~~~~~~,.~~ ~.~~~~~...... 1;-· I IMPOITTANT: Your remittance must be In the form or an elootronfc payment payable to Register of Copyrights. See page I of the general Instructions for more lnfonnauon. FORM SA1·2. PAGE 7. LEGAl.llAME Of' OWNER Of CAllLli SYSTI:M: Nam a HControl Holdings LLC CHANNELS lnatruatlone: You must give (1) the number of channels on which the cable system ca.rrled television broadcast stations M to Its subscribers, and (2) the cable system's total number of activated channels during the accounting period. Channala 1. Enter the total number of channels on which the cable l I system carried televlslon broadcast stations. • • • ...... • ...... • ...... • • . . . . . • • . . • • • . . • • • .W ...... 2. Enter the total number of activated 1 1 ~~~n::~~~ona~~!~~ !~~~~~~- ~~~~~~. ~~~~~ . ~~~~'.~ .~~ .~~~~.~~~~ ~.t~~~~~~.... • • • • • • • • • • • • 1.~9 ...... I INDIVIDUAL TO BE CONTACTED IF FURTHER INFORMATION IS NEEDED (Identify an Individual we can contact about this statement of account.) N lndMdualto Name . M~fi.~ M: .~~~.f{l!l'.l~r.t~...... Telephone Z.~'H~.7:7.~?!...... Be Conlaoted V"°" OO CERTIFICATION {Tllls statement of account must be certified and sfgned In accordance with Copyright Office regula· tlons, as explalned In the general Instructions.) 0 • I, the undersigned, hereby certify that (Check one, but only one, of the boxes.) Certification 0 (Owner olitor than corpora Ifon or partnership) I am the owner of the cable system as Identified In line 1 of spaceB; or 0 (Agent of owner other than corporation or partnership) I am the duly authorized agent of the owner of the cable system as Identified In llna 1 of space B, and that the owner is not a corporation or partnership; or (!I (Officer or partner) I am an officer Of a corporation) or a partner Of a partnership) of the legal entity Identified as owner of the cable system In line 1 of space B. • I have examined the statement of account and hereby declare undel" penalty of law that all statements of fact con· talned herein are true, complete, and cOfreot to the best of my knowledge, Information, and belief, and are made In good faith. (See 18 U.S.C. sec.1001) r ~ Handwritten signature: ...... " _,J) 'fyped or printed name: .Mario...... M...... Bustamante...... Tllle:.~~~ ...... (llt5e of ol6del poslllon lleld., cotpot•t!oo oc ~"'Pl Date: ...... Privacy Act Not10t: Seclloo 111 ol tHle 17 of lho United Sfat&S Co SPECIAL STATEMENT CONCERNING GROSS RECEIPTS EXCLUSIONS p The Satellite Home Viewer Act of 1988 amended Tiiie 17, section 111(d)(1)(A) of the Copyright Act by adding the fol lowlng sentence: &peelal •rn determining the total number of subscribers and the gross amounts paid to the cable system for the basic Statement service of providing secondary transmissions of primary broadcast transmitters, the system shall not Include sub Concemlna scribers and amounts collected from subscribers recelvlng secondary transmissions pursuant to seollon 119." Gross Receipts ISxclu 1 ton• For more Information on when to exclude these amounts, see the note on page (vQ of the general lnslruotlons. During the accou ntlng period, did the cable system exclude any amounts of gross receipts for see-0ndary transmissions made by satelllte carriers to satellite dish owners? l!lNo 0 YES. Enter the total here and list the satelllte carrfer(s) below...... $ ______ lllllllO ll Noma Ma!1>g •&hso ...... , • 11 MAll Q INTEREST ASSESSMENT You must complete thfs worksheet for those royalty payments submitted as a resull of a late payment or underpayment. 1nt11reat For an explanation of Interest assessment, see page (v10 of the general Instructions. Alaesement Line 1. Enter the amount of late payment or underpayment...... • ...... $ - -- Line 2. Multiply line 1 by the Interest rate~ and enter the sum here .••••••.•••.•••.• Line 3. Multlplyflne2 by the number of days late and enter the sum here ...... ______ Line 4, Multiply line 3 by .00274" and enter here and In space L (page 6} block 1, llne 2, or block 2, line 8, or block 3, llne 6 ...... $ ----- • To view the interest rate chart click on www.copyrlght.gov/llcens(ng/lnterost-ra lo.pd(. For further assistance please contact the Licensing Division at (202) 707~8150 or /lcenslngO/oc.gov. ..This Is the decimal equivalent of 1/365, which Is tho Interest assessment for one day late. Note! If you are filing this worksheet covering a statement of account already submitted to the Copyrlghl Office, please llst below the owner, address, first community served, ID number, and accounting period as given In the original Ollng. owner ti I I I ttU 1111 tltr lU U 111tit111 tltt• ltflf JfUf,11II1 ftll I I IJ•U•t• 1 fU ...... I I I tOl•lfo rl lllO•a I I OIUltl I tlll Ill 11 00l•ll I Llltt I'"'' I I 1111110 l .. Ull I I I lnl I Ill IUUIOI I U lllfl I Address ··································~··················J····················································,·············,···························•1••············•1••···· ID number .... u•••••z••••P••••urltl111UllllOOll21111001tllr110111Ullllllltllllllll1Ullln ...... u •• uu1111111tttlllttlUlllllllt'1tlltl1lll1l1 First community served ...... , ...... Accounting period ...... Prlvecy Act Notice: S&cllon 111 of IHfe 17 of the Urlled Sls/6$ Ccdo aulho!Ueii lhe Copyr~l Ofllc6 to collect lhe petBOO!R)' ldoo\1¥ng l use THIS FORM WHEN: • You are Iha owner (or represent the owner) of a cable system; and • You ere filing Iha semiannual statement of account required by the copyright law; Md • Your system's semiannual gross rooelpts 1or secondary transmissions (Iha figure you give In space K of the fonn)ls lass than $527,600; and • You are also depositing the required semiannual royalty tee wllh the Licensing Division of the Copyright Office. IF YOUR FJGURE FOR SEMIANNUAL GROSS RECEIPTS IN SPACEK IS $5271800 OR MORE, USE SA3 {LONG FORM) GENERAL INSTRUCTIONS FOR SA1-2 (SHORT FORM) CABLE SYSTEMS stream and any multicast streams transmitted by the sta AND THE COPYRIGHT LAW (P.L, 94-553) tion constitute primary transmissions. Cable systems are subject to copyright tlablllty for their use • Secondary tranemleelone. A secondary transmission of copyrighted material rn secondary transmissions (the re Is the basic service of retransmitting talevrslon and radio transmission oftelevlslon and radio broadcasts to subscrib broadcasts to subscribers. The statute requires all U.S. ers). Cable retransmissions of copyrighted programming cable systems, regardless of how many subscribers they are subject to a system of statutory llcenslng. Among other have or whether they are carrying any distant slgnals, to things, this means that twice a year the owner of a cable pay some copyrlght royalties. However, Instead of obtlg system must send a statement of account, together with a lng cable systems to bargain lndlvldually for each copy royalty fee, to the Licensing Division of the Copyright Office. righted program they retransmit, the law offers them the opportunity of obtaining a statutory license for secondary transmissions. TERMS Primary stream. Aprimary stream lstheslngle dlgltal stream Note: Secondary transmissions do not Include trans· of programming that, before June 12, 2009, was substantially missions originated by a cable system Uncludlng local dupUcatfng the programming transmitted by the televlslon origination cablecasting, pay cable, program services, broadcast station as an analog signal. Ir there Is no stream, background music services, and originations on leased then the primary stream Is the slngle digital stream of pro or access channels). Cable systems mu st negotiate for gramming transmitted by the tetevlslon broadcast station the use of anycopynghted material In the programming for the longest period of time. they originate, and their originations are not subject to statutory licensing. Primary transmitter. A primary transmitter Is a television or radio broadcast station licensed by the Federal Commu HOW TO FILE THE STATEMENT OF ACCOUNT nications Commission, or by an appropriate governmental ROYALTY AND FILING FEES authority of Canada or Mexlco, that makes primary trans missions to the public, 1 Study the general Information on these pages and read Subscriber, The term subscriber means a person or entity through the detailed Instructions Jn the statement of ac that receives a secondary transmission seivlcefrom a cable count form Itself. Before you start completlng the form, system and pays a fee for the service, directly or Indirectly, make sure that you have collected all the necessary ln to the cable system. formaUon and that you are using the right fonn. Subscribe. The tenn subscribe means to elect to become 2 Fm out the statement of account form, gfvlng all the re~ a subscriber. quired Information about your cable system and about In providing copyright llablllty for cable systems, the law the television and radio stations carried by it. Print the draws a distinction between "primary transmissions" and Information In black Ink. "secondary transmfsslons": 3 Certify the statement of account by slgn1ng at space • Primary transmissions. A primary transmission Is a O. The statement of account Is not acceptable unless transmission made to the publlc by a transmitting faclllty tt bears the original handwritten signature of one of the whose signals are being received and further transmitted persons Indicated In space O as authorized to certify It by a secondarytransm lss!on service, regardless of where under Copyright Office regulations. or when the performance or dlsplay was first transmitted. 4 Makeane/ectron/cpayment(seenotebelow)lnth6amount In the case of a televlslon broadcast station, the primary you have calculated In space L to cover the copyright GENERAL INSTRUCTIONS, FORM SA1-2, PAGE 0~- royalty and flllng fees. See the Federal Register, August mtng lt transmrts or run the risk of substantlal clvll (or; In 10, 2006 (71 FR45739) avallable at www.copyrfght.gov/ some cases, crlmlnal} tfablllty for multfple acts of copyright fedreg/2006/71fr45739.html. The remittance should be Infringement. payable to Register of Copyrights. Who Can Utilize the Statutory Llcense 5 Send the completed statement of account and one legible Under the statute and Copyright Office regulallons, retrans copy of the statement of account to: missions are subject to statutory licensing only If they are Library of Congress made by cable systems. Copyright Off/ca Cable system. A "ca.bra system" Is defined as "a faclllty, Licensing Division located In any State, territory, trust terrllory, or possession 101 lndepandence Avenue SE of the United States, that In whole or rn part receives srgnals Washington, DC 20557-6400 transmitted or programs broadcast by one or more terevr slon For courier dellverles, see www.copyright.gov/mafl. broadcast stations llcensed by the Federal Communications html tor updated Information. Commission, and makes secondary transmrsslons of such signals or programs by wJres, cables, microwave, or other Note: Please DO NOT send pages consisting solely of communications channels to subscribing members of the Instructions. public who pay for such service." A system that meets this 6 The Copyright Office wl II retain your statement of account definition Is considered a cabte system for copyright pur and make It a part of our public records. You should, poses, even If the FCC excludes It from being considered a therefore, keep a copy of the entire statement, as flled, cable system because of the number or nature of Its sub In case you need It for future reference. scribers or the nature of ils secondary transmissions. Note; For detailed Instructions concerning electronrc pay lndlvldual cable system. An Individual cable system Is ments, contact the Ucensfng Division forClrcular74, whlch defined generally as "each cable system recognized as a Is also available at www.copyrfght.gov/clrcslclrc74. dfstlnct entity under the rules, regulations, and practices of the Federal Communications Commission." In addition, two or more cable facllltles are considered as one lndlvldual HOW THE STATUTORY LICENSE WORKS cable system If either: {A) the facilities are In contiguous In general, having a statutory license means that a cable communities and are under common ownership or control; system can retransmit broadcast programming without vio or (B) the fac!lltles operate from one headend. Thus, even If lating the copyright law, as long as it complies with certain they are owned by different entitles, two cable facllltles wll! pape1Work requ rrements and, twice a year, d eposlts a royalty be considered as one Individual cable system If they share fee with the Copyright Office. a common headend. • The cable system can, without negotiated licenses or advance permission from copyright owners, retransmit WHAT A STATUTORY LICENSE the signals of any U.S. television or radfo station that It DOES NOT PERMIT YOU TO DO Is authorized to carry under FCC rures, regulattons, or authorlzatlons {plus Mexican or Canadian stations In cer The statutory autholi ty glven to cable systems to retransmit tain cases); and telavlslon and radio broadcasts under a statutory license Is ltmlted In several ways: • The cable system must ma statements of account with the Copyright Office and must also deposit a semiannual roy • Orlginatfons. To repeat: a cable system's statutory 11- alty. The amount of the royalty, which Is established under cense extends only to secondary transmissions {retrans a statutory formula, depends on the total of the system's missions). It does not permit 1he system to make any gross receipts for secondary transmission service. originations of copyrighted materfaf without a negotiated license covering that material. • Every six. months, the cable system must send the Copy right Office a statement of account on this form, SA1-2 • Nonslmultaneous Retransmissions. In general, to be subject to statutory llcenslng under the copyright law, (Short Form), or on SA3 (Long Form) (If the gross rec el pts are $527,600 or more). a cable retransmission must be simultaneous with the broadcast being canied. As a rule, taping or other record~ • Each semlannual statement of account must be accom Ing of the program Is not permitted. Taping for delayed panied by the deposit of a royalty fee covering retransmis transmission Is permlsslble only for some (not all) cable sions during the preceding slx months rn the form of an systems located outside the 48 cantlguous states; and, efectronlc payment payable to Register of Copynghts. even In these exceptional cases, there are further llmlta tlons and conditions that the cable system must meet. Why Having a Statutory License rs Important Most televlslon and radio broadcasts contain copyrighted • FCC Vlolatlons. The broadcast signals that a cable sys material. Without a statutory llcense, a cable system would tem can carry under a statutory llcense are llmlted to those either have to negotiate licenses for au copyrighted program- that It Is pennltted to carry under FCC rules, regulations, GENERAL I NSTAUCTIONS, FORM SA 1-2, PAGE (1lij. and authorizations. If signal carriage Is In violation of FCC receipt at the Copyright Office of the royally payment that Is requirements, the cable system may be subject under the the subject of the request. The Debt Collection Improvement Copyright Act to a separate action for copyright Infringe Act of 1996 requires that refunds be made through electronic ment for each unauthorized retransmission. funds transfer (EFT). Note: Late payments are subject to • Foreign Signals. In general, the copyright law does not Interest assessment. See page (vlQ of the general Instructions. permit a cable system to retransmit signals of foreign Contact the Licensing Division for addltlonal Information. televlslon and radio stations under a statutory license. How Royalty Fees Are Handled The only exceptions have to do with the signals of certain For purposes of computing the semiannual royalty fee a cable Mexican and Canadian stations. Unless foreign signals system must pay, the statute creates three brackets, depend fall within these exceptions, their carriage would not be ing upon the system's gross receipts from subscribers for authorized under a statutory llcense, even If permissible secondary transmissions during the accounting period: under FCC rules. 1 Gross receipts of $137, 100 or less: royalty fee of $52; • Program Alteration or Commerclal Substitution. Ca ble systems are not permitted to alter the content of re 2 Gross receipts of more than $1371100 end less than transmitted programs, or to change, delete, or substitute $527.600: royally fee detennlned by a fonnula based on commercials or station announcements In or adjacent percentage of gross receipts; to programs being carried. There Is only one exception: 3 Gross receipts of $527,600 or more: royally fee de under certain circumstances, substitutions Involving com termined by a formula based on percentage of gross re· mercial advertising market research may be permitted. celpts and on the number of distant stations carried by the system. Accounting Periods The statute establishes two six-month accounting periods A cable system Is required to deposit Its semiannual roy for purposes of computing the royalty fee and reporting the alty fee with the Copyright Office at the time tt files each !nfonnallon called for In the statement of account. The flrst statement of account. The royalty must be made by elec semiannual period runs from January through June, and tronic payment, and the related statement of account must the second from July through December; of each calendar be filed by the appropriate deadline accompanied with a year. You must use these accounting periods whether or not cover letter (see circulars 74a, 74b, and 74c ).The Copyright they coincide with the beginning or ending of your cable Oftlce transfers these fees Into a specie.I fund, which Is later system's fiscal year. distributed to copyright owners as payment for the use of their works by cable systems. Fiiing Dates Cable systems are given 60 days after the close of each ac PURPOSES OF THE STATEMENT OF ACCOUNT counting period In which to file their statements of account, filing and royalty fees. The following are the two flllng dates The law requires a cable system to file statements of account you must observe each year: tor two purposes: • For the January-June accounting period: File between • To show the basis for the semiannual royalty fee the cable July 1 and August 29, Inclusive; system owes under Its statutory lrcense; and • For the July-December accounting period: File between • To give the Information needed to allocate royalty fees January 1 and March 1, Inclusive. among copyright owners. Note: If August 29 or March 1 falls on a weekend or federal Thus, some of the Information you give on your statement holiday, statements ofaccountand royalty fees may be made of account has nothing to do with computing your gross on the next succeeding business day. receipts or deciding the amount of your royally fee. Never theless, you are required to give the additional Information In Statements of account, royalty and fil!ng fees received order to provide the basis for the second phase of the statu before the end of the accounting period will not be accepted. tory license: the dlsttlbutlon of fees to copyright owners. Statements and fees received after the August 29 or March 1 deadlines wlll be accepted for whatever legal effect they may have, If any. The Copyright Office takes no position as to what this affect wlll be, and a cable system that flies late runs a substantial risk. Refunds Refund requests must be received within 60 days after the close of the filing period (by Apr11 30 or October 28). Also, refund requests for late and amended payments must be received before the expiration of 60 days from the date of GENERAL INSTRUCTIONS, FORM SA1-2, PAGE OY), SOME POINTS TO REMEMBER space G of the form). Do not ltst stations that were not In fact ABOUT STATUTORY LICENSES: carried during that period, even If the FCC has authorized their carriage, and even If 1hey were carried during earlier • As long as a cable system keeps Its statutory lfcense accounting periods. In force by complying with the requirements of the new copyright law, It Is not oblfged to negotiate Low Power Television Stations. The Copyrfght Act In sec Individual copyright licenses for retransmission of tion 111 (t) deUneates the local status of a low power televi television and radio broadcasts. sion station as follows: "In the case of a low power televi • The following are among the various ways a cable sion station, as defined by the rules and regulations of the system can lose Its statutory llcense: by falling Federal Communications Commission, the 'local service to tile the statements of account or royalty fees; area of a primary transmitter' comprfses the area within 35 by taping for delayed retransmission; by canying mlles of the transmitter site, except that In the case of such signals In violation of FCC requirements; by car a station located In a standard metropolitan statistical area riage of certain foreign stations; and by altering which has one of the 50 largest populations of all standard programs or substituting commercials. metropolitan statistical areas (based on the 1980 decennial census of population taken by the Secretary of Commerce), • Without a statutory l!cense, a cable system can the number of mlles shall be 20 miles." This means that a low be sued by a copyright owner for the full range power television station earned by a cable system within an of clvll remedies for copyright Infringement, In area as defined above will be considered "local." cluding Injunctions, actual damages and proflls, or statutory damages (of up to $150,000 In cases of TranslatorStatfons. Translator stations must be llsted. For willful lnfrfngement). The statute also provides for copyright purposes, a translatorstatlon ls aprfmarytransmlt cnmlnal penalties In cases of wlllful Infringements ter not only of any programs It originally transmits but also for commerclal purposes. of all the programming It receives from Its parent station and retransmits. Thus, If your cable system carried signals ema· natlng from a translator station, you must list the translator WHAT FACTS THE STATEMENT OF ACCOUNT station In space G. And, If your system separately carried SHOULD COVER signals from both a translator station and Its parent station, All of the lnfonnatlon you give In a statement of account must both the translator and the parent station should be Identified. be an accurate presentation of the facts existing durfng the • iype of Translator Station. Note that for any translator accounting period covered by that statement (or, In certain station listed In space G, the type of station Indicated In cases, on the last day of that period). column 3 should be that of the parent station. • Spaces D, G, H, and I. list all areas served, stations Mull/cast stream. A multicast stream Is a dlgltal stream of carried, and certain substitute programs carried at any programming that Is transmitted by a televlslon broadcast time during the accounting period. station and Is not the station's primary stream. • Spaces K and M. You should report the total of gross Simulcast. A simulcast Is a multicast stream of a televlslon receipts attrfbutable to the particular accounting period broadcast station that duplicates the programming trans~ In space K. The figures requested In space M should be mltted by the primary stream or another multicast stream the appropriate totals of channels for the entire period. of such station. • Space J. This space (part-time carriage log) has been Definitions of TYpos of Stations. Under the Copyright Aot, deleted. the terms used In connection with column 3 of space G • Spaces B, C, E, and F. Even If Items of Information con· mean the following: earning the owner, system, subscribers, or rates have • Network station. A primary stream of a television broad changed during the accounting period, your statement of cast station that Is owned or operated by, orafflllated with, account does not need to reflect the change. Give only the one or more of the television networks In the United States facts existing on the last day of the accounting period. If providing nationwide transmissions, and that transmits there were different owners during the accounting period, a substantial part of the programming supplied by such only the owner on the last day of the accounting period networks for a substantial part of the primary stream's should submit a single statement of account and royally typical broadcast day. fee payment covering the entire accounting period. The term network station also applies to a multicast stream on which a television broadcast station transmits SPACE G (Primary Transmitters: Television) all or substanUally all of the programming of an Intercon nected program service that Is owned or operated by, Stations Actually Caniad. Make sure that space G llsts all or affllfated with, one or more of the televlslon networks the televlston stations your system actually carried at any described above and offers programming on a regular time during the accounting period (except as expfalned In GENERAL INSTRUCTIONS, FORM SA1-2, PAGE {v} basis for 15 or more hours per week to at least 25 of tlons, and programs Involved In any nonn~twork television the affiliated televlslon licensees of the interconnected programming that was carried In whore or In part beyond program service in 1O or more states. the local service area of the primary transmitter, under ru !es, regufat!ons, or authorizations of the FCC permitting the sub • Independent station. A primary stream or a multlcast stitution or addition of signals under certain circumstances. stream of a television broadcast station that is not a net Tha applicable present and former rules and reg ulatlon s are work station or a noncommercial educational station. For Identified In Item 3, which follows. purposes of determining a station's type-value this cate gory Includes all specialty, Canadian and Mexican stations. What Programs Must Be Listed. You must llst a program • Noncommerolal educational station. A primary stream In space I If all three of the following conditions apply: or a multloast stream of a televlslon broadcast station that Is a noncommercial educational broadcast station; which 1 The program Is a nonnetwork television program. A Is owned and operated by a public agency or nonprofit "nonnetwork televlslon program" Is a program that was private foundation, corporation or association; or owned not being broadcast by a station as part of a network tele an operated by a municipality and which transmits only vision broadcast at the time the cable system oarrfed It. noncommercial programs for education purposes. 2 The program is picked up from a distant station. A "distant station" Is a televlslon station carried by a cable SPACE H (Primary T.-ansmltters~ Radio) system In whole or In part beyond that station's local service area. A television station's local service area Is the AJl-BandCarrfage. /fyoursystem carried FM radio stations area within which the station ls entitled to Insist upon Its on an all-band basis, you are not required to list every sta signal being retransmitted by a cable system pursuant to tion that subscribers might possibly have received dming rules, regulations, and authorizations of the FCC In effect the accounting petfod. Instead, Copyright Office regulations on Aptif 15, 1976. Effective on July 1, 1994, a station's require you to monitor your FM transmission servlce at your local service area also Includes the station's television system's headend from time to time during the accounting market as defined In section 76.55(e) of title 47, Code of period and to report the generally receivable FM stations Federal Regulations (as In effect on September 18, 1993), Identified as a result of your monitoring. or any modifications to such television market made on or after September 18, 1993, pursuant to section 76.55(e) Stations Generally Receivable. There are two standards for determining whether an FM station Is generally receivable: or 76.69 of title 47 of the Code of Federol Regulatfons. 3 The program was carried by the oable system In sub 1 Is the station usually carried whenever It Is received at stitution for another program under FCC rules, regula~ your system's headend; and tlons. or authorizations. 2 Can the station be expected to be received atthe headend, with your system's FM antenna, atleastthreeconsecutrve • Where FCC rules and regufallons In effect on the date hours each day at the same time each day, five or more of carriage require the deletion of certain programming days a wee!<, for four or more weeks durl ng any calendar of one station and permit substitution of programming quarter, with a strength of not less than 50 mfcrovoits from another distant station. That rs, If a cable system is per meter measured at the foot of the tower or pole to required to delete a station because of the FCC sports which the antenna is attached? excluslvlty rules. The monitoring arrangements you set up should be al med • Where the FCC rules, regulations and authorizations In at determining what stations can reasonably be expected effect on October 19, 1976, permit a cable system at lls to meet these standards. option, to delete programming, and autholize the system to substitute programming from another distant station. Monitoring Activities. It is not necessary to monitor con" That Is, If the cable system elects to delete a distant sta tlnuously throughout the accounting period, and you are not tion While that station Is broadcasting a program ptimarl ly req ul red to make precise measurements to determine which of local Interest to the distant community, for copyright stations In fact meet the technical standards and which do purposes former FCC rules sections 76.61 (b) (2) and 76.63 not. Your monitoring activities should take place period!" Oncorporatlng 76.61(b) (2)) continue to authorize the sta oally at your head end during the accounting period and you tion to substitute the programming of any other distant should use a good FM receiver. station. SPACE I (Substitute Carriage: Special Statement NOTES and Program Log) 1 The provisions of the Copyright Act dealing with volun --- ·------tary deletion and substitution of programs are limited to SubstltutePrograms Must Be Logged andReported. The programs substituted under FCC rules, regulations, and Copyright Act requires an cable systems to submit, with their authorizations In effect on October 19, 1976. statement of account, logs showing the times, dates, sta- GENERAL INSTRUOTlONS, FORM SA1-2, PAGE (vi) 2 Effective January 1, 1990, the FCC amended Parts 73 • As provided In the Satellfte Home Viewer Act [amend and 76 of Its rules relallng to program exclusivlty In the ment of section 111 (d)(1)(A)], any amounts collected by cable and broadcast Industrias. a cable system/distributor from subscribers should be excluded from the cable system's detennlnatfon of gross SPACE K (Gross Receipts) receipts received for the basic service of providing sec ondaiy transmissions of primary broadcast transmitters What Aro Gross Receipts? The gross receipts you enter In pursuant to the cable statutory license, section 111 (c) space Kare the receipts for the basic service of providing to (0. This provision contemplates 1he situation where secondary transmissions of primary broadoasttransmltters. the same entity may be offenng both satellfte and cable They fncluda the fuf/ amount of monthly (or other periodic) distribution of secondary transmissions of prfmary broad service fees for any and all services or tiers of services that cast transmitters, include one or more secondary transmissions of telav/slon • If a cable system offers both satellite and cab Ie seivlces to or radio broadcast signals, for additional set fees, and for satelllte dish owners, then It may exclude those amounts converter fees. All such gross receipts shall be aggregated attributed to the s atelllte service under section 119 of the and the royalty fee calculations shall be made against the ag act. Such a system should declare on page athe amount gregated amount. Gross recetptsforsecondarytransmlsslon of gross receipts that are excluded for this service and Ust services do not Include Installation Oncludlng connection, the name and address of each satellite carrier In which relocation, disconnection or reconnection} fees; separate the system has contracted as a distributor or agent to charges for security, alarm, or facsimile services; charges market the carrier's retransm1sstons service. The system tor late payments: or charges for pay cable or other program should also maintain separate records of the subscriber otlglnatlon services provided that the origination services fees received for satelllte earner retransmissions. are not offered In combination with secondaiy transmission service for a single fee. Accrual Basis. If your revenue accounts are kept on an accrual basis, the figure you give In space K should bathe total of all gross receipts for secondary transmission ser SATELLlTE CARRIER GROSS RECEIPTS EXCLUSION vice accrued for the accounting period. Subtract bad debts actually written off during the period and add previously • The Satellite Home Viewer Act of 1988, Public Law 100- written-off debts that were actually recovered during the 667, as amended by Publlo Law 103-369, Public Law period. (However, do not make adjustments for bad debts 106-113, Publlc Law 108-447, and Publlc Law 111-175, for secondaiy transmission service furnished before Janu establishes a statutory license for certain secondary trans ary 1, 1978.) missions made bysatellltecarriers to satellited lsh owners. Cash Basfs. If your revenue accounts are kept on a cash basls, Satelllte carriers are subject to copyright liabillty for their your gross receipts are all amounts actually received dutfng use of copyrighted material when they make secondaiy the accounting period for secondary transmission service. "transmlsslons" (retransmissions of televl sf on broadcasts) to satelllte dish owners and they make direct or Indirect a SPACE L (COPYRIGHT ROYALTY AND FILING FEES) charge for that service. Satellite carrier retransmissions ·-----.. -...... ,..... _.._.._._.,. of the copyrighted programming embodied In the signals Statutory Fonnulas for Computing the Royalty end of non-network or network stations are etlglb1e under an Flllng Fees operational system of statutory licensing that Is estab lished In section 119 of the Copyright Act. For cable systems whose semiannual g rossrecelpts are under • A satel/lte carrier fs defined In the Satellite Home Viewer $527 ,600, the method of calculating the royalty fee depends Extension and Reauthotizatlon Act of 2004 as "an entity on the amount of gross receipts reported In space K. that uses the faclfltles of a satelllte or satelllte service Gross receipts of $137,100 or less. If the figure you give lfcensed by the Federal Communications Commission, In space K Is $137,100 or less, your royally fee has been and operates In the Flxed-Satelllte Service under part 25 calculated for you rn accordance with the formula set out In oftitr e 47 of the Code ofFederal Regulations or the Direct section 111 (d)(2)(C) of the Copyrf ght Act as adjusted. The Broadcast Satellite Service under part 100 of tllle 47 of amount Is $52 and the flJJng fee ls $15. Do not use blocks the Coda of Federal ReguTatfons, to establ!sh and oper" 2 and 3. ate a channel of communications for polnt-to-multlpolnt Gross receipts of more than $137, 100 but less than or dlstribullon of television station signals, and that owns or equal to $263,800. If the figure you give In space K is more leases a capacity or service on a satellite In ordar to pm than $137,100 but less than or equal to $263,800, your vlde such point-to-multipoint distribution, except to the royalty fee must be calculated In accordance wlth the for extentthatsuch entl ty provides such distribution pursuant mula set out In section 111 (d)(2)(C) of the Copyright Act, to tariff under the Communications Act of 1934, other than as adjusted. Farrow the step·by-step calculat!ons In block for pnvate home viewing pursuant to Section 119." 2 of space L and add the $20 filing fee. Do not use blocks GENERAL INSTRUCTIONS, FORM SA1-2, PAGE (vlQ 1and3. Grose receipts of more than $263,800 but leas than $527,600. If your gross receipts figure In space K is more than $263,800 but fess than $527,600, you must use the formula set out In section 111 (d)(2}(D) of the Copyright Act, as adjusted. Follow the step-by-step calculations Jn block 3 of space L and add the $20 flling fee. Do not use blocks 1and2. Interest Charges for Underpayments end Late Payments Underpayments or late payments received after the filing deadline shall be subject to an Interest assessment. Cable systems must calculate their own Interest charge. (A work sheet Is provided at space Q, page 8.) The Interest rate set for a specific accounting period Is the ~.J.S. Treasury Current Value of Funds Rate In effect on the first business day after the close of the fifing deadline for that accounting period. Cable systems can obtain the Interest rate for the applicable accounting perlod(s) bycalling the licensing Division at (202) 707-8160, or by cllcklng on to www.copyrlght.gov/llcensfng/ lnterest-rate.pdf. For underpayments and late payments, the Interest shall begin to accrue on the first day after the close of the 1111ng date for that accounting period. The accrual period ends on the date that the remittance Is received In the Copyright Office. Note: The Office shall not require, nor notify a cable system of, an Interest charge of $5.00 or less. DECLARATION I, Mario M. Bustamante, hereby declare under penalty of perjury as follows: 1. I am Chief Executive Officer of Optical Telecommtmications, Inc. 2. I have read the foregoing Answer. The facts contained therein are true and correct to the best of my knowledge, information, and belief. 3. TWs Answer is grounded in fact, and is not interposed for any improper purpose. Mario M. Bustamante April 14, 2015 CERTIJ?ICATE OF SERVICE I, Penny Evetts, hereby certify that on this 14th day of April, 2015, a copy of the . . foregoing Answer has been served by first-class mail on the following: Todd M. Stansbury, Esq . . Wiley Rein LLP 1776 K Street, NW Washington, DC 20554 1\M 481 S72Jl. I