Federal Register - January 22, 2021
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Source: Federal Register
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Federal Register / Vol. 86, No. 13 / Friday, January 22, 2021 / Rules and Regulations Annual Assessment means the administrative assessment for each calendar year beginning with the calendar year 2021.
Annual Calculation Period means the calculation period for annual minimum fees, as set forth in 390.3b.
Annual minimum fee means the minimum amount each Licensee shall pay for each Annual Assessment period, as set forth in 390.3.
Blanket Licensee means a digital music provider that is engaged, in all or in part, in covered activities pursuant to a compulsory blanket license described in 17 U.S.C. 115d.
Certified Minimum Fee Disclosure means a Licensees certified statement setting forth its Unique Sound Recordings Count for the respective calculation period.
Covered activity has the meaning set forth in 17 U.S.C. 115e7.
Digital licensee coordinator or DLC
has the meaning set forth in 17 U.S.C.
115e9.
ECI means the Employment Cost Index for total compensation not seasonally adjusted, all civilian workers, as published on the website of the United States Department of Labor, Bureau of Labor Statistics, for the most recent 12-month period for which data are available on the date that is 60 days prior to the start of the calendar year.
Flat Fee Licensees mean licensees as set forth in 390.3a who are not allocated an additional share of assessments beyond the annual minimum fee.
License availability date has the meaning set forth in 17 U.S.C.
115e15.
Licensee means either a Blanket Licensee or a Significant Nonblanket Licensee.
Mechanical licensing collective or MLC has the meaning set forth in 17
U.S.C. 115e18.
New Licensee means a Licensee that begins engaging in covered activities on or after the license availability date.
Notice of license has the meaning set forth in 17 U.S.C. 115e22.
Notice of nonblanket activity has the meaning set forth in 17 U.S.C.
115e23.
Quarterly Allocation means each of four equal parts of each Annual Assessment, to be paid on a calendar quarterly basis.
Significant Nonblanket Licensee has the meaning set forth in 17 U.S.C.
115e31.
Startup Assessment means the onetime administrative assessment for the startup phase of the MLC.
Threshold Licensee means an Allocated Licensee that reports at least
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7.5% of the Aggregate Sound Recordings Count of all Allocated Licensees.
Threshold Licensee Assessment Pool means an amount equaling 50% of each Annual Assessment and Quarterly Allocation.
Unique Sound Recordings Count means, for each Licensee, the number of unique sound recordings used and reported per month by such Licensee in Section 115 covered activities, such as would be reflected in the information required to be reported under 17 U.S.C.
115d, calculated as a monthly average over the respective calculation period, except that a sound recording of a musical work that is in the public domain and designated as such in a monthly report of use shall not count towards the Licensees Unique Sound Recordings Count. For example, a Licensees Unique Sound Recordings Count for a Quarterly Allocation calculation period will be calculated by adding together the counts of unique sound recordings reported by such Licensee to the MLC during each month of that quarter and dividing that sum by three. A Licensees Unique Sound Recordings Count for an Annual Calculation Period will be calculated by adding together the counts of unique sound recordings reported by such Licensee to the MLC during each month of that twelve-month period and dividing that sum by twelve. In the case of a Licensee that was engaged in covered activities only for part of a Quarterly Allocation calculation period or Annual Calculation Period, the monthly average shall be calculated using only the calendar months that the Licensee was engaged in covered activities. In the case of a Licensee that was not engaged in covered activities during any part of a Quarterly Allocation calculation period or Annual Calculation Period, the monthly average shall be zero. Within each months usage reports from a particular Licensee, a sound recording reported multiple times with the same metadata would be counted as a single sound recording, and a sound recording reported multiple times each with different metadata would be counted multiple times, once for each reporting with new or different metadata.
3. Revise 390.3 to read as follows:
390.3
Annual minimum fees.
a Amounts. Subject to paragraph e of this section, Licensees shall pay annual minimum fees as follows 1 In general. Except as provided in paragraph a2 of this section i Licensees that have a Unique Sound Recordings Count of 10,000 or
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less during the relevant Annual Calculation Period shall pay $2,500 and shall be Flat Fee Licensees for the respective Annual Assessment;
ii Licensees that have a Unique Sound Recordings Count of between 10,001 and 25,000 during the relevant Annual Calculation Period shall pay $5,000 and shall be Flat Fee Licensees for the respective Annual Assessment;
iii Licensees that have a Unique Sound Recordings Count of between 25,001 and 50,000 during the relevant Annual Calculation Period shall pay $10,000 and shall be Flat Fee Licensees for the respective Annual Assessment, where such Annual Calculation Period is for the Annual Assessment for the calendar year 2024 or earlier; otherwise such Licensees shall pay $60,000 and shall be Allocated Licensees for the respective Annual Assessment;
iv Licensees that have a Unique Sound Recordings Count of between 50,001 and 100,000 during the relevant Annual Calculation Period shall pay $20,000 and shall be Flat Fee Licensees for the respective Annual Assessment, where such Annual Calculation Period is for the Annual Assessment for the calendar year 2024 or earlier; otherwise such Licensees shall pay $60,000 and shall be Allocated Licensees; and v Licensees that have a Unique Sound Recordings Count greater than 100,000 during the relevant Annual Calculation Period shall pay an annual minimum fee of $60,000 and shall be Allocated Licensees for the respective Annual Assessment.
2 Download store annual fee.
Licensees that engage in covered activities exclusively under authority obtained from licensors of sound recordings to make and distribute permanent downloads of musical works embodied in such sound recordings pursuant to individual download licenses or voluntary licenses shall be Flat Fee Licensees and pay the following amounts:
i $2,500 if the Licensee has a Unique Sound Recordings Count of 50,000 or less during the relevant Annual Calculation Period.
ii $5,000 if the Licensee has a Unique Sound Recordings Count of between 50,001 to 100,000 during the prior Annual Calculation Period.
iii $10,000 if the Licensee has a Unique Sound Recordings Count of between 100,001 to 250,000 during the prior Annual Calculation Period.
iv $20,000 if the Licensee has a Unique Sound Recordings Count of between 250,001 to 500,000 during the prior Annual Calculation Period.
v $60,000 if the Licensee has a Unique Sound Recordings Count of
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