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- p.~*col'b'e #@; 2 3 8 A3 t ANNOUNCEMENTfrom the Office, Library of Congress, Washington, D.C. 20559 'a 'a '~RVOF c ,&+

INTERIM REGULATION

STATUTORY LICENSE FOR RECORDING DEVICES AND MEDIA: LNITIAL NOTICE OF DISTRIBUTION

The following excerpt is taken from Volume 57, Number 228 of the Federal Repister for Wednesday, November 25,1992 (pp. 55464 - 55466)

permitting full public comment before copying by technological means, and (3) the issuance of final regulations. creates a new statutory bcense that LIBRARY OF CONGRESS DATES:This interim regulation is manufacturers and importem of d~gital audio recorders obtain by filing an CopVriaht Otfl- effective November 25.1992. Public comments on the interim regulation tnitial notice of distribution, by filing 37CFRPart201 should be received on or before January quarterly and annual etatements of 4.1993. account and by paying royalties upon tDodr.1 Ha RY 9261 distribution in the United States of ADORE~SLS: Ten copies of written digital audio recording devices and comments should be addressed, if sent media by mail to: Library of Congress, The manufacture and importation of Ndke of~~butlon Department 100. Washington, DC 20540. dqital audio recording devices and If delivered by hand copies should be media is subject to a statutory license. r~ur~r:Copyright Office: Library of brought to: Office of the Copyright Congress. Section 1003(a)of the Audio Home General Counsel. James Madison Recording Act, provides as follows: A- Interim regulation. Memorial Building, room 4W,First and , Independence Avenue. SE.. Washington, No person shall import lnto and distribute. -v: This notice is issued to Dc or manufacture and distribute. any digital. w9F audio ncording device or digital audio advise the public that the U.S. Copyright FDA FURTHER mmAnmCOWACT: recording medium unless such person recordr Office in the Library of Congress is Dorothy Schrader. General Counsel. the notice specified by this rectlon and adopting interim regulations to Copyright Office. Library of Congress. subsquently deposits the statementr of implement section 1003 of the Audio Washington DC 20540. Telephone (202) account and applicable royalty payments for Home Recurdmg Act of lWZ which 7074380. such device or medium specified in section creates a new statutory license under 1001. the Copyright Act title 17 U.S.C. Section 1003(b) directs the filing of an governing importation. manufacture, and initial notice: dietribution of digital audio recording fie importer or manufacturer of any drgital devices and media. meAudio Home Effective October 28.1992 the Audio audio recording device or digital audio Recording Act imposes an obligation on Home Recording Act (AHRA). Public recording medium. within a product category pemons who import and distribute in the Law 102683.108 Stat 4237, creates a or utilizing a technology with respect to United Statee. or manufasture and new statutory licenee under the which such manufacturer or importer has not distribute in the United States. any Copyright Act title 17 U.SC.. whlch previously filed a notice under this digital audio recording device or digital addresses the hatof copyright aubaection, ahall file with the Register of ownem' lost sales and royalties when a notice with respect to such audio recording medlum to file an initial device or medium. in such form and content notice. file quarteriy and annual sound recordings are reproduced on as the Register shall prescribe by regdatjon. statements of account and remit dqptal audio home recordings. The royalties to the Copyright Office. The AHRA provides three solutions to the The purpose of this interim regulation effect of the interlm regulation is to longstanding problems presented by is to preecribe the time for filing, and the establish requirements governing the consumer devicee that make near- form and content of initial notices of form and content of the initial Notice of verfect co~ieeof dinital sound distribution. Distribution, which must be filed under kcordinga. It (1)pr&ides consumers an The initial notice filing provisions of

section 1003(b)of the Act exem~tionfor ~rivate.~.noncommercial - ~ section 1003(b) are part of the larger The regulation is iesued on an interim home'recording of analog or digital statutory scheme of licensing under basie in order to allow peraone to invoke sound recordings; (2) mandates that which manufacturers and importers will the statutory license immediately. while digital audio recorders restrict serial be required to record or file other

ML-452 November 1992-500 ' Error: line should read: Independence Avenue. S.E.. Washington. information in the Copyright Office. The takes the position that this Act does not (b] Definitions-41) An Initial Notice filing of quarterly and annual statements apply to Copyright Office rulemaking. of Distribution of Digital Audio of account and payment of royalties will The Copyright Office is a department of Recording Devices or Media or Initial be addressed in a separate rulemaking the Library of Congress and is a part of Notice is a notice under section 1003(b] proceedmg. which will be instituted in the legislative branch. Neither the of the of the near future. Since the obligation to Library of Congress nor the Copyright 1992 Public Law 102-563, title 17 of the fde an initial noticeof distribution .falls Office isan "agency" within the . which is required on the first manufacturer or importer to meaning of the Administrative by that section to be filed in the distribute digital audio devices or media Procedure Act of June 11,1946, as Copyright Office by an importer or following the passage of the AHRA, the amended (title 5. chapter 5 of the U.S. manufacturer of a digital audio regulation governing the filing of such Code, subchapter I1 and chapter 7). The recording device or digital audio notices is issued on an interim basis. Regulatory Flexibility Act consequently recording medium who has not does not apply to the Copyright Office previously filed notice of the 2 Tiefor F* since that Act affects only those entities importation or manufacture for Under these regulations the importer of the Federal Govement that are distribution of such device or medium in or manufacturer must file an initial agencies as defined in the the United States. notice for a digital audio product Administrative Procedure Act.' (2) The product category of a device category or technology no later than 45 Alternatively, if it is later determined or medium is a general class of products days after the commencement of the by a court of competent jurisdiction that made up of functionally equivalent first distribution in the United States, on the Copyright Office is an "agency" digital audio recording devices or media or after October 28.1992. Subsequently. subject to the Regulatory Flexibility Act, with substantially the same use in the importer or manufacturer must file a the has substantially the same environment. new initial notice for each new digital determined and hereby certifies that this including, for example, hand-held audio product or technology not regulation will have no significant portable integrated combination units previously distributed. Any initial notice impact on small business. ["bwmboxes"); portable personal must be filed no later than 45 days after Lint of Subjects in 37 CFR Part 201 recorders; stand-alone home recorders the commencement of distribution in the ["tape decks"]; home combination United States of the new product Cable Television, Copyright. Digital audio statutory license. systems ("rack systems"); automobile category or technology. If a product recorders; configurations of tape media category or technology were first Interim Regulation8 (standard cassettes or micmcassettes): imported and distributed and the same In consideration of the foregoing. the and configurations of disc media such as entity later manufactures and distr~butes Copyright Office is amen- part Un of 2%" 3" and 5" discs. that same product category or 37 CFR chapter I1 in the manner set forth (3) The technology of a device or technology. the distributor would not below. need to file a new notice. medium is a product type distinguished by different technical processer for 3. Fonn and Content PART 201--(AMENDED] digitally recording musical wundr. such The Initial Notice of Distribution as recorders (DAT). 1. The authority citation for part 201 is , (DCC). or should be submitted on a form that is revised to read as follows: available on request from the Licensing recordable compact discs. including Division of the Copyright Office without Authority: Sec. 702.90 Stat. 2541.13 USC (MD). any charge. Fommay be requested by 702: 201.27 ia also issued under Public Law (4) The terms digital audio recording telephone by calling (#12) 707-8150. A 102-583. device, digital audio recording medium, copy of the form is published in an 2. Section 201.27 is added to read as distribute, manufacture. and transfer appendix to this regulation. follows: price, have the meanings of the same Information given on the Initial Notice terms as they are used in section 1001 of of Distribution should generally reflect 9 201.27 lnltkl Notice of Dktrlbutlon Of the Copyright Act, title 17 of the United facts as they exist on the date of filing. Dlgttal Audlo Racordlng Dewor Modlr. States Code, as amended by Public Law ~mendmentswill be accepted to correct (a) Geneml. This section prescribes 102-563. an error or omission. By contrast, where rules pertaining to the filing of an Initial [c) Forms. An Initial Notice form may the ownership of an entity changes, a Notice of Distribution in the Copyright be obtained from the Copyright Office new Initial Notice should be filed by the Office as rqquired by section 1003[b) of free of charge, by contacting the new owner when it imports or the Audio Home Recording Act of 1992. Licensing Division of the Copyright manufactures an: .htributes 3ny device Public Law 102-563, title 17 of the Office. Washington, DC 20557. or media under its namefor the first United States Code, to obtain a (d) Filing Deadline. Initial Notices time. statutory license to import and shall be filed in the Copyright Office no The statutory definition of a digital distribute, or manufacture and later than 45 days after the audio recording medium states clearly distribute, any digital audio recording commencement of the first distribution that blank discs and tapes are the device or digital audio recording of digital audio recording devices or targeted media. Thus prerecorded tapes medium in the United States. digital audio recording media in the and discs are ordinarily not covered by this regulation. United States, on or after October 28, Tbe Copyright om- war not aublect to the 1992. A manufacturer or importer shall 4. Public Comment Adminlatmuve Roadw Ad befom 1878. and it La file an Initial Notice within 45 days of now aub)ccc to it only In area# rpedfid by don the first distribution for each new The public is invited to submit m(d)of thr Copyright Ad of 1078 (Lr "all action# comments on the interim regulation on taken by the Reator of Copy"@# under thia 11th product category and each new or before January 4.1993. (17). exapt with reaped to thr nuking of copies of technology that the manufacturer or cop-1 dcporita] (17 UBC rnb)). The Coht importer has not reported in a previous 5. Regulatory Flexibility Act Ad doc* MI mka thr Omca an "agmy" a* Initial Notice. defined in the Adminiatmtive Rocedw Act. Por With respect to the Regulatory eumple. personnel action# laken by the Office are [e) Content of Initial Notices. An Flexibility Act, the Copyright Office not aubjsct to APA-FOIA requhmenla. Initial Notice of Distribution of Digital

ML-452 November 1992-500 Audio Recording Devices or Media shall (6) The signature of an appropriate (3) The recordation of an amendment be identified as such by prominent officer, partner. or agent of the importer under this paragraph shall have only caption or heading, and shall include the or manufacturer. as specified by the such effect as may be attributed to it by following: Initial Notice form; and a court of competent jurisdiction. (1) The designation "Importer" or (71 Other information relevant to the (g] Recodation. (I)The Copyright "Manufacturer." or both whichever is importation or manufacture for applicable, followed by the full legal distribution of digital audio recording Offiewill record the Initial Notices and name of the importer or manufacturer of devices or media as prescribed on the amendments submitted in accordance with this section by placing them in the the digital audio recording device or lnitial Notice form provided by the medium, of or the party named is a Copyright Office. appropriate public files of the Office. partnership, the name of the partnership The Copyright Office will adrise followed by the name of at least one (f) Amendments. (1)The Copyright rnanufacturera and importers of emra or Office will record amendments to Initial omissions appearing on the face of individual partner; Notices submitted to comct an emr or (2) Any trade or business name or documents submitted to it. and will names. trademarks, or other indicia of omission in the i~;.f-xmationgiven in an require that any such obvious emrs or origin that the importer or manufacturer earlier Initial Notice. An amendment is omissions be corrected before the uses or intends to use in connection with not appropriate to reflect developments documents will be recorded. However. the importation, manufacture, or or changes in facts occurring after the recordation by the Copyright Office distribution of such digital audio date of signature of an Initial Notice. shall establish only the fact and date thereof; such recordation shaU in no recording device or medium in the (2) An amendment shall: (i) Be clearly United States: and prominently identified as an case be considered a determination that (3) The full United States mailing "Amendment to an Initial Notice of the document was. in fact properly address of the importer or manufacturer. Distribution of Dlgital Audio Recording prepared or that all of the regulatory and the full business address, if Devices or Media;" (ii] identify the requirements to satisfy section 1003 of different; specific Initial Notice intended to be title 17 have been met. (4) The product category and amended eo that it may be readily (2) No fee shall be required for the technology of the devices or media located in the records of the Copyright recording of Initial Notices. A fee of $20 imported or manufactured; Office: (iii) clearly specify the nature of payable by personal or company check (5) The first date (day. month, and t!!e amendment to be made: and (iv] be to the Register of Copyrighb shall year] that distribution commenced, or is signed and dated in accordance with accompany any Amendment permitted to commence; this section by paragraph (f) of this section.

Dated: November 17.1992 hlpb- Register of Copyrights. Appmved: JamesH. BUlingtw. The Libmrian of Congress.

[FR Doc. 92-285W Piled H-24-92; t45 am] Blwacocn rrrooev

ML-452 November 1992-500