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Federal Register / Vol. 86, No. 205 / Wednesday, October 27, 2021 / Rules and Regulations Eligible nonsubscription transmission has the same meaning as in 17 U.S.C.
114j.
Eligible Transmission means a subscription or nonsubscription transmission made by a Licensee that is subject to licensing under 17 U.S.C.
114d2 and the payment of royalties under this part.
Ephemeral recording has the same meaning as in 17 U.S.C. 112.
Licensee means a Commercial Webcaster, a Noncommercial Webcaster, a Noncommercial Educational Webcaster, a Public Broadcaster, or any entity operating a noninteractive internet streaming service that has obtained a license under 17 U.S.C. 114
to make Eligible Transmissions and a license under 17 U.S.C. 112e to make Ephemeral Recordings to facilitate those Eligible Transmissions.
New subscription service has the same meaning as in 17 U.S.C. 114j.
Noncommercial Educational Webcaster means a Noncommercial Educational Webcaster under subpart C
of this part.
Noncommercial Webcaster has the same meaning as in 17 U.S.C.
114f4E, but excludes a Noncommercial Educational Webcaster or Public Broadcaster.
Nonsubscription transmission has the same meaning as in 17 U.S.C. 114j.
Payor means the entity required to make royalty payments to the Collective or the entity required to distribute royalty fees collected, depending on context. The Payor is:
1 A Licensee, in relation to the Collective; and 2 The Collective in relation to a Copyright Owner or Performer.
Performance means each instance in which any portion of a sound recording is publicly performed to a listener by means of a digital audio transmission e.g., the delivery of any portion of a single track from a compact disc to one listener, but excludes the following:
1 A performance of a sound recording that does not require a license e.g., a sound recording that is not subject to protection under title 17, United States Code;
2 A performance of a sound recording for which the service has previously obtained a license from the Copyright Owner of such sound recording; and 3 An incidental performance that both:

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i Makes no more than incidental use of sound recordings including, but not limited to, brief musical transitions in and out of commercials or program segments, brief performances during news, talk and sports programming, brief background performances during disk jockey announcements, brief performances during commercials of sixty seconds or less in duration, or brief performances during sporting or other public events; and ii Does not contain an entire sound recording, other than ambient music that is background at a public event, and does not feature a particular sound recording of more than thirty seconds as in the case of a sound recording used as a theme song.
Performers means the independent administrators identified in 17 U.S.C.
114g2B and C and the parties identified in 17 U.S.C. 114g2D.
Public broadcaster means a Public Broadcaster under subpart D of this part.
Qualified auditor means an independent Certified Public Accountant licensed in the jurisdiction where it seeks to conduct a verification.
Subscription transmission has the same meaning as in 17 U.S.C. 114j.
Transmission has the same meaning as in 17 U.S.C. 114j15.
3. Revise subpart B to read as follows:
Subpart BCommercial Webcasters and Noncommercial Webcasters 380.10 Royalty fees for the public performance of sound recordings and the making of ephemeral recordings.

a Royalty fees. For the year 2021, Licensees must pay royalty fees for all Eligible Transmissions of sound recordings at the following rates:
1 Commercial webcasters. $0.0026
per Performance for subscription services and $0.0021 per Performance for nonsubscription services.
2 Noncommercial webcasters. $1000
per year for each channel or station and $0.0021 per Performance for all digital audio transmissions in excess of 159,140 ATH in a month on a channel or station.
b Minimum fee. Licensees must pay the Collective a minimum fee of $1,000
each year for each channel or station.
The Collective must apply the fee to the Licensees account as credit towards any additional royalty fees that Licensees may incur in the same year. The fee is payable for each individual channel and each individual station maintained or
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operated by the Licensee and making Eligible Transmissions during each calendar year or part of a calendar year during which it is a Licensee. The maximum aggregate minimum fee in any calendar year that a Commercial Webcaster must pay is $100,000. The minimum fee is nonrefundable.
c Annual royalty fee adjustment.
The Copyright Royalty Judges shall adjust the royalty fees each year to reflect any changes occurring in the cost of living as determined by the most recent Consumer Price Index for All Urban Consumers U.S. City Average, all items CPIU published by the Secretary of Labor before December 1 of the preceding year. The calculation of the rate for each year shall be cumulative based on a calculation of the percentage increase in the CPIU from the CPIU published in November, 2020
260.229 and shall be made according to the following formulas: For subscription performances, 1 +
Cy260.229/260.229 $0.0026; for nonsubscription performances, 1 +
Cy260.229/260.229 $0.0021; for performances by a noncommercial webcaster in excess of 159,140 ATH per month, 1 + Cy260.229/260.229
$0.0021; where Cy is the CPIU
published by the Secretary of Labor before December 1 of the preceding year. The adjusted rate shall be rounded to the nearest fourth decimal place. The Judges shall publish notice of the adjusted fees in the Federal Register at least 25 days before January 1. The adjusted fees shall be effective on January 1.
d Ephemeral recordings royalty fees;
allocation between ephemeral recordings and performance royalty fees. The Collective must credit 5% of all royalty payments as payment for Ephemeral Recordings and credit the remaining 95% to section 114 royalties.
All Ephemeral Recordings that a Licensee makes which are necessary and commercially reasonable for making noninteractive digital transmissions are included in the 5%.
Dated: September 20, 2021.
Jesse M. Feder, Chief Copyright Royalty Judge.
Approved by:
Carla D. Hayden, Librarian of Congress.
FR Doc. 202120621 Filed 102621; 8:45 am BILLING CODE 141072P

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