IP Law Daily, COPYRIGHT NEWS: Copyright Royalty Judges publish new rates for nondramatic musical works, (Mar 28, 2017)

Today, the Copyright Royalty Judges published in the Federal Register final regulations that set continued, unaltered rates and terms for subpart A configurations subject to the statutory license to use nondramatic musical works to make and distribute phonorecords of those works (the Mechanical License). In addition, the Judges are correcting an outdated cross-reference in the regulations.

The rulemaking stems from the Judges’ receipt of a Motion to Adopt Settlement from UMG Recordings and Warner Music, in their respective capacities as licensees of nondramatic musical works. Section 801(b)(7)(A) of the Copyright Act authorizes the Judges to adopt rates and terms negotiated by ‘‘some or all of the participants in a proceeding at any time during the proceeding’’ provided the settling parties submit the negotiated rates and terms to the Judges for approval. The Judges published the proposed settlement in the Federal Registeron July 15, 2016, and requested comments from the public. The Judges received comments from three entities: American Association of Independent Music, Sony Music Entertainment, and George D. Johnson dba GEO Music.

The only objections to the agreement by a participant were those of Mr. Johnson. Based on those objections, the Judges could not conclude that the agreement reached voluntarily between the settling parties does not provide a reasonable basis for setting statutory terms and rates for licensing nondramatic musical works to manufacture and distribute phonorecords, including permanent digital downloads and ringtones. Therefore, the Judges adopted the proposed regulations that codify the partial settlement. Further, In reviewing the regulations, the Judges discovered an outdated cross-reference and are correcting it.

News: Copyright