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Federal Register/Vol. 84, No. 24/Tuesday, February 5, 2019/Proposed Rules

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Federal Register/Vol. 84, No. 24/Tuesday, February 5, 2019/Proposed Rules Federal Register / Vol. 84, No. 24 / Tuesday, February 5, 2019 / Proposed Rules 1661 Insurance Corporation Improvement Act Dated at Washington, DC, on December 18, statutory deadlines set forth in the of 1991, 12 U.S.C. 1828(o), prescribes 2018. Music Modernization Act, no further standards for real estate lending to be By order of the Board of Directors. extensions of time will be granted in used by FDIC-supervised institutions in Federal Deposit Insurance Corporation. this rulemaking. adopting internal real estate lending Valerie Best, ADDRESSES: For reasons of government policies. For purposes of this subpart, Assistant Executive Secretary. efficiency, the Copyright Office is using the term ‘‘FDIC-supervised institution’’ [FR Doc. 2018–28084 Filed 2–4–19; 8:45 am] the regulations.gov system for the means any insured depository BILLING CODE 6714–01–P submission and posting of public institution for which the Federal comments in this proceeding. All Deposit Insurance Corporation is the comments are therefore to be submitted appropriate Federal banking agency LIBRARY OF CONGRESS electronically through regulations.gov. pursuant to section 3(q) of the Federal Specific instructions for submitting Deposit Insurance Act, 12 U.S.C. Copyright Office comments are available on the 1813(q). Copyright Office’s website at https:// ■ 3. Amend § 365.2 by revising 37 CFR Part 201 www.copyright.gov/rulemaking/ paragraphs (a), (b)(1)(iii), (2)(iii) and pre1972-soundrecordings- (iv), and (c) to read as follows: [Docket No. 2018–8] noncommercial/. If electronic submission of comments is not feasible Noncommercial Use of Pre-1972 Sound § 365.2 Real estate lending standards. due to lack of access to a computer and/ Recordings That Are Not Being (a) Each FDIC-supervised institution or the internet, please contact the Office Commercially Exploited shall adopt and maintain written using the contact information below for policies that establish appropriate limits AGENCY: U.S. Copyright Office, Library special instructions. and standards for extensions of credit of Congress. FOR FURTHER INFORMATION CONTACT: that are secured by liens on or interests ACTION: Notice of proposed rulemaking. Regan A. Smith, General Counsel and in real estate, or that are made for the Associate Register of Copyrights, by purpose of financing permanent SUMMARY: The U.S. Copyright Office email at [email protected] or Anna improvements to real estate. (‘‘Copyright Office’’ or ‘‘Office’’) is Chauvet, Assistant General Counsel, by (b)(1) * * * issuing a notice of proposed rulemaking email at [email protected]. Each can (iii) Be reviewed and approved by the regarding the Classics Protection and be contacted by telephone by calling FDIC-supervised institution’s board of Access Act, title II of the recently (202) 707–8350. directors at least annually. enacted Orrin G. Hatch-Bob Goodlatte SUPPLEMENTARY INFORMATION: Music Modernization Act. In connection (2) * * * I. Background (iii) Loan administration procedures with the establishment of federal for the FDIC-supervised institution’s remedies for unauthorized uses of On October 11, 2018, the president real estate portfolio; and sound recordings fixed before February signed into law the Orrin G. Hatch-Bob (iv) Documentation, approval, and 15, 1972 (‘‘Pre-1972 Sound Goodlatte Music Modernization Act, reporting requirements to monitor Recordings’’), Congress also established H.R. 1551 (‘‘MMA’’). Title II of the compliance with the FDIC-supervised an exception for certain noncommercial MMA, the Classics Protection and institution’s real estate lending policies. uses of Pre-1972 Sound Recordings that Access Act, created chapter 14 of the copyright law, title 17, United States (c) Each FDIC-supervised institution are not being commercially exploited. Code, which, among other things, must monitor conditions in the real To qualify for this exemption, a user extends remedies for copyright estate market in its lending area to must file a notice of noncommercial use infringement to owners of sound ensure that its real estate lending after conducting a good faith, reasonable recordings fixed before February 15, policies continue to be appropriate for search to determine whether the Pre- 1972 (‘‘Pre-1972 Sound Recordings’’). current market conditions. 1972 Sound Recording is being commercially exploited, and the rights Under the provision, rights owners may * * * * * owner of the sound recording must not be eligible to recover statutory damages and/or attorneys’ fees for the Subpart B—[Removed and Reserved] object to the use within 90 days. After soliciting public comments through a unauthorized use of their Pre-1972 ■ 4. Remove and reserve subpart B, notice of inquiry, the Office is proposing Sound Recordings if certain consisting of §§ 365.101, 365.102, regulations identifying the specific steps requirements are met. To be eligible for 365.103, 365.104, 365.105, and that a user should take to demonstrate these remedies, rights owners must appendix A to subpart B. she has made a good faith, reasonable typically file schedules listing their Pre- search. The proposed rule also details 1972 Sound Recordings (‘‘Pre-1972 PART 390—REGULATIONS the filing requirements for the user to Schedules’’) with the U.S. Copyright TRANSFERRED FROM THE OFFICE OF submit a notice of noncommercial use Office, which are indexed into the 1 THRIFT SUPERVISION and for a rights owner to submit a notice Office’s public records. The filing objecting to such use. requirement is ‘‘designed to operate in ■ 5. The authority citation for part 390 place of a formal registration DATES: continues to read as follows: Written comments must be requirement that normally applies to received no later than 11:59 p.m. Authority: 12 U.S.C. 1819. claims involving statutory damages.’’ 2 Eastern Time on March 7, 2019. Meeting The MMA also creates a new Subpart P—[Removed and Reserved] requests must be received no later than mechanism for members of the public to 11:59 p.m. Eastern Time on March 18, obtain authorization to make ■ 6. Remove and reserve Subpart P, 2019, and all meetings must take place noncommercial uses of Pre-1972 Sound consisting of §§ 390.260, 390.261, no later than Friday, March 22, 2019. 390.262, 390.263, 390.264, 390.265, The Office will not consider requests to 1 17 U.S.C. 1401(f)(5)(A)(i)(I)–(II). 390.266, 390.267, 390.268, 390.269, hold meetings after that date. So that the 2 H.R. Rep. No. 115–651, at 16 (2018); see S. Rep. 390.270, 390.271, 390.272. Copyright Office is able to meet the No. 115–339, at 18 (2018). VerDate Sep<11>2014 16:34 Feb 04, 2019 Jkt 247001 PO 00000 Frm 00021 Fmt 4702 Sfmt 4702 E:\FR\FM\05FEP1.SGM 05FEP1 1662 Federal Register / Vol. 84, No. 24 / Tuesday, February 5, 2019 / Proposed Rules Recordings that are not being satisfy this statutory requirement, but the exceptions for libraries and commercially exploited. Under section the user would need to independently archives.19 Section 1401(f) separately 1401, a person may file a notice with the demonstrate how she met the provides that ‘‘the limitations on the Copyright Office and propose a specific requirement if challenged.12 exclusive rights of a copyright owner noncommercial use after taking steps to The Office must also issue regulations described in section 107, 108, 109, 110, determine whether the recording is, at ‘‘establish[ing] the form, content, and and 112(f) shall apply to a claim under that time, being commercially exploited procedures’’ for users to file NNUs and [section 1401(a)] with respect to a sound by or under the authority of the rights rights owners to file Pre-1972 Opt-Out recording fixed before February 15, owner.3 Specifically, before determining Notices.13 1972,’’ as well as the section 512 that the recording is not being On October 16, 2018, the Office limitation on liability relating to commercially exploited, she must first issued a notice of inquiry (‘‘NOI’’) material online.20 Further, section undertake a ‘‘good faith, reasonable soliciting comments regarding the 1401(c) states that whether ‘‘a person search’’ of both the Pre-1972 Schedules specific steps a user should take to files notice of a noncommercial use of indexed by the Copyright Office and demonstrate she has made a good faith, a sound recording’’ or ‘‘a rights holder music services ‘‘offering a reasonable search.14 The Office also opts out of a noncommercial use of a comprehensive set of sound recordings solicited comments regarding the filing sound recording,’’ that ‘‘does not itself for sale or streaming.’’ 4 At that point, requirements for the user to submit an enlarge or diminish any limitation on she may file a notice identifying the Pre- NNU and for a rights owner to submit the exclusive rights of a copyright 1972 Sound Recording and nature of the a Pre-1972 Opt-Out Notice objecting to owner described in section 107, 108, intended noncommercial use with the such use.15 In response, the Office 109, 110, or 112(f) as applied to a claim Office (a ‘‘notice of noncommercial use’’ received ten initial comments and under [section 1401(a)].’’ 21 These other or ‘‘NNU’’).5 The Office will index this fifteen reply comments, which are exceptions and limitations are available notice into its public records.6 discussed further below.16 Having to users whether or not they claim the In response, the rights owner of the reviewed and carefully considered the exception for noncommercial use.22 Pre-1972 Sound Recording may file a comments, the Office now issues a Regarding fair use specifically, the notice with the Copyright Office ‘‘opting proposed rule and invites further public Office notes that although certain out’’ of (i.e., objecting to) the requested comment. noncommercial uses may constitute fair noncommercial use (‘‘Pre-1972 Opt-Out II.
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