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Federal Register/Vol. 84, No. 130/Monday, July 8, 2019/Rules and Regulations

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Federal Register/Vol. 84, No. 130/Monday, July 8, 2019/Rules and Regulations 32274 Federal Register / Vol. 84, No. 130 / Monday, July 8, 2019 / Rules and Regulations (b) Definitions. As used in this to the compulsory license for digital administer this new blanket-licensing section, designated representative music providers to make and distribute system beginning on the ‘‘license means a Coast Guard Patrol digital phonorecord deliveries. For the availability date,’’ that is, January 1, Commander, including a Coast Guard reasons published in this document, the 2021.5 As detailed further below, the petty officer, warrant or commissioned Register designates Mechanical MLC, through its board of directors and officer on board a Coast Guard vessel or Licensing Collective, Inc. as the task-specific committees, will be on board a federal, state, or local law mechanical licensing collective and responsible for a variety of duties, enforcement vessel assisting the Captain Digital Licensee Coordinator, Inc. as the including receiving usage reports from of the Port (COTP), Delaware Bay in the digital licensee coordinator, including digital music providers, collecting and enforcement of the safety zone. their individual proposed board distributing royalties associated with (c) Regulations. (1) Under the general members. those uses, identifying musical works safety zone regulations in subpart C of DATES: Effective July 8, 2019. embodied in particular sound this part, you may not enter the safety recordings, administering a process by FOR FURTHER INFORMATION CONTACT: zone described in paragraph (a) of this which copyright owners can claim Regan A. Smith, General Counsel and section unless authorized by the COTP ownership of musical works (and shares Associate Register of Copyrights, by or the COTP’s designated representative. of such works), and establishing a email at [email protected], Steve (2) To seek permission to enter or musical works database relevant to Ruwe Assistant General Counsel, by remain in the zone, contact the COTP or these activities.6 email at [email protected], or Jason the COTP’s representative via VHF–FM By statute, digital music providers E. Sloan, Assistant General Counsel, by channel 16 or 215–271–4807. Those in will bear the reasonable costs of email at [email protected]. Each can be the safety zone must comply with all establishing and operating the MLC contacted by telephone by calling (202) lawful orders or directions given to through an administrative assessment, 707–8350. them by the COTP or the COTP’s to be determined if necessary by the designated representative. SUPPLEMENTARY INFORMATION: Copyright Royalty Judges (‘‘CRJs’’) in a (3) This section applies to all vessels I. Background separate proceeding.7 The MMA also except those engaged in law allows, but does not require, the enforcement, aids to navigation On October 11, 2018, the Orrin G. Register to designate a digital licensee servicing, and emergency response Hatch-Bob Goodlatte Music coordinator (‘‘DLC’’) to represent operations. Modernization Act (the ‘‘MMA’’) was 1 licensees in this proceeding, to serve as (d) Enforcement. The U.S. Coast signed into law. Title I of the MMA a non-voting member of the MLC, and Guard may be assisted in the patrol and addresses the efficiency and fairness of to carry out other functions.8 enforcement of the safety zone by the section 115 ‘‘mechanical’’ license for Federal, State, and local agencies. the reproduction and distribution of A. MLC Designation Requirements, (e) Enforcement period. This zone musical works embodied in digital Duties, and Functions will be enforced from approximately phonorecord deliveries, including The entity designated as the MLC (but no earlier than) 5 p.m. to permanent downloads, limited must be: 2 approximately (but not later than) 9 downloads, and interactive streams. In • A single nonprofit entity that is p.m. on July 14, 2019. relevant part, it eliminates the song-by- created by copyright owners to carry out song notice of intention process for such Dated: June 28, 2019. its statutory responsibilities; uses and creates a new blanket • Scott E. Anderson, ‘‘endorsed by, and enjoy[ ] compulsory licensing system for digital substantial support from, musical work Captain, U.S. Coast Guard, Captain of the music providers engaged in digital copyright owners that together represent Port Delaware Bay. 3 phonorecord deliveries. The blanket the greatest percentage of the licensor [FR Doc. 2019–14420 Filed 7–5–19; 8:45 am] licensing structure is designed to reduce market for uses of such works in BILLING CODE 9110–04–P the transaction costs associated with covered activities, as measured over the song-by-song licensing by commercial preceding 3 full calendar years;’’ 9 services that strive to offer ‘‘as much • able to demonstrate to the LIBRARY OF CONGRESS music as possible,’’ while ‘‘ensuring fair Copyright Office that, by the license and timely payment to all creators’’ of U.S. Copyright Office availability date, it will have the the musical works used on these digital administrative and technological services.4 37 CFR Part 210 capabilities to perform the required The MMA directs the Register of functions; and [Docket No. 2018–11] Copyrights to designate a nonprofit • governed by a board of directors entity operated by copyright owners, and include committees that are Designation of Music Licensing referred to by statute as the mechanical composed of a mix of voting and non- Collective and Digital Licensee licensing collective (‘‘MLC’’), to voting members as directed by the Coordinator statute.10 1 Public Law 115–264, 132 Stat. 3676 (2018). AGENCY: U.S. Copyright Office, Library 2 See S. Rep. No. 115–339, at 1–2 (2018); Report If no single entity meets each of these of Congress. and Section-by-Section Analysis of H.R. 1551 by the statutory criteria, the Register must Chairmen and Ranking Members of Senate and designate as the MLC the entity that ACTION: Final rule. House Judiciary Committees, at 1 (2018), https:// www.copyright.gov/legislation/mma_conference_ 5 SUMMARY: Pursuant to title I of the Orrin report.pdf (‘‘Conf. Rep.’’); see also H.R. Rep. No. 17 U.S.C. 115(d)(2)(B), (d)(3)(B); see also id. at G. Hatch-Bob Goodlatte Music 115–651, at 2 (2018) (detailing the House Judiciary 115(e)(15). 6 Modernization Act, and following a Committee’s efforts to review music copyright Id. at 115(d)(3)(C). 7 Id. at 115(d)(7)(D). solicitation of proposals and public laws). 3 The MMA retains the ability of record 8 Id. at 115(d)(5)(B); see also id. at comment on those proposals, the companies to obtain an individual download 115(d)(3)(D)(i)(IV), (d)(5)(C). Register is designating the entities who license on a song-by-song basis. 17 U.S.C. 115(b)(3). 9 Id. at 115(d)(3)(A)(ii). will perform certain functions relating 4 S. Rep. No. 115–339, at 4, 8. 10 Id. at 115(d)(3)(A), (d)(3)(D)(i). VerDate Sep<11>2014 15:55 Jul 05, 2019 Jkt 247001 PO 00000 Frm 00020 Fmt 4700 Sfmt 4700 E:\FR\FM\08JYR1.SGM 08JYR1 jbell on DSK3GLQ082PROD with RULES Federal Register / Vol. 84, No. 130 / Monday, July 8, 2019 / Rules and Regulations 32275 most nearly fits these qualifications.11 relating to the governance of the to assist the MLC in its efforts to locate After five years, the Register will collective, following statutory criteria.18 and identify copyright owners of commence a periodic review of this By statute, the MLC board must unmatched musical works (and shares designation.12 establish three committees. First, an of such works) by encouraging digital The MMA enumerates a number of operations advisory committee will music providers to publicize the required functions for the MLC.13 A core make recommendations concerning the existence of the collective and the aspect of the MLC’s responsibilities operations of the collective, ‘‘including ability of copyright owners to claim includes identifying musical works and the efficient investment in and unclaimed accrued royalties, including copyright owners, matching them to deployment of information technology by posting contact information for the sound recordings (and addressing and data resources.’’ 19 Second, an collective at reasonably prominent disputes), and ensuring that a copyright unclaimed royalties oversight locations on digital music provider owner gets paid as he or she should. To committee will establish policies and websites and applications, and that end, the MLC will create and procedures necessary to undertake a fair conducting in-person outreach activities maintain a free, public database of distribution of unclaimed royalties.20 with songwriters. The DLC is authorized musical work and sound recording Third, a dispute resolution committee to participate in proceedings before the ownership information. The MLC will will establish policies and procedures CRJs to determine the administrative administer processes by which for copyright owners to address disputes assessment to be paid by digital music copyright owners can claim ownership relating to ownership interests in providers, and before the Copyright of musical works (and shares of such musical works, including a mechanism Office with respect to the blanket works), and by which royalties for to hold disputed funds pending the mechanical license. works for which the owner is not resolution of the dispute.21 identified or located are equitably C. Designation Process and the Role of distributed to known copyright owners B. DLC Designation Criteria and the Copyright Office. Functions on a market share basis after a required The Register is to designate the MLC, holding period.14 The MLC will Similar to the MLC, the DLC must: along with the DLC (as applicable), by participate in proceedings before the • Be a single nonprofit entity created publishing a notice in the Federal CRJs to establish the administrative to carry out certain statutory Register that sets forth ‘‘the identity of assessment that will fund the MLC’s responsibilities; and contact information for the .
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