[Federal Register: May 11, 1999 (Volume 64, Number 90)]
[Page 25374-25375]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]



Copyright Office
[Docket No. 97-1 CARP SD 92-95]

Distribution of 1992, 1993, 1994, and 1995 Satellite Royalty 

AGENCY: Copyright Office, Library of Congress.

ACTION: Announcement of the schedule for the proceeding.


SUMMARY: The Librarian of Congress is announcing the schedule for the 
180-day arbitration period for the distribution of the 1992-95 
satellite carrier compulsory license royalty fees.

EFFECTIVE DATE: May 11, 1999.

ADDRESSES: All hearings and meetings for the 1992-95 satellite 
distribution proceeding shall take place at the Library of Congress, 
James Madison Memorial Building, Room LM-414, First and Independence 
Avenue, SE., Washington, DC. 20540.

FOR FURTHER INFORMATION CONTACT: David O. Carson, General Counsel, or 
William J. Roberts, Jr., Senior Attorney, PO Box 70977, Southwest 
Station, Washington, DC 20024. Telephone: (202) 707-8380. Telefax: 
(202) 252-3423.



    Section 251.11(b) of 37 CFR provides:

    At the beginning of each proceeding, the CARP shall develop the 
original schedule of the proceeding which shall be published in the 
Federal Register at least seven calendar days in advance of the 
first meeting. Such announcement shall state the times, dates, and 
place of the meetings, the testimony to be heard, whether any of the 
meetings, or any portion of a meeting, is to be closed, and if so, 
which ones, and the name and telephone number of the person to 
contact for further information.

This notice fulfills the requirements of Sec. 251.11(b) for Phase I of 
the proceeding to determine the distribution of satellite carrier 
compulsory license royalty fees for the years 1992-95.
    On January 31, 1997, the Copyright Office published a notice in the 
Federal Register requesting comment as to the existence of Phase I and/
or Phase II controversies concerning the distribution of the 1992, 
1993, 1994, and 1995 satellite royalty fees, and in the event that a 
controversy exists, whether to consolidate the determination of the 
distribution of the 1992-95 royalty fees into a single proceeding, or 
to conduct multiple proceedings. 62 FR 4814 (January 31, 1997). The 
notice also requested that each interested party file a Notice of 
Intent to Participate, indicating the level of participation for each 
year, i.e., Phase I, Phase II, or both, with the Office. In response to 
this notice, the following parties identified the existence of 
controversies for distribution of the 1992-95 funds: James Cannings; 
<SUP>1</SUP> the American Society of Composers, Authors and Publishers 
(ASCAP), Broadcast Music, Inc. (BMI), and SESAC, Inc. (collectively the 
Music Claimants); Program Suppliers; CBS, Inc.; ABC, Inc.; Public 
Television Claimants; Devotional Claimants; Home Shopping Network; 
Multimedia Entertainment, Inc.; National Broadcasting Company, Inc.; 
Joint Sports Claimants; and Broadcaster Claimants. All but one party 
favored consolidating the 1992-95 satellite funds into a single 
distribution proceeding.

    \1\ Mr. Cannings identified only a Phase II controversy.

    On June 4, 1997, the Office issued an Order consolidating the 
determination of the distribution of the 1992-95 satellite royalty fees 
into a single proceeding and announcing the precontroversy discovery 
schedule for a Phase I proceeding. See Order in Docket No. 
97-1 CARP SD 92-95 (June 4, 1997). The June 4, 1997, Order set 
September 8, 1997, as the beginning of the 45-day precontroversy 
discovery period, with the initiation of the arbitration set for 
December 1, 1997. This schedule, however, proved unworkable, so at the 
request of the parties, the Copyright Office rescheduled the start of 
the 45-day precontroversy discovery period. See Order in Docket No. 97-
1 CARP SD 92-95 (August 20, 1997). In fact, the Office reset the 
schedule three times before establishing a schedule which met the needs 
of all the parties. See also Orders in Docket No. 97-1 CARP SD 92-95 
(January 15, 1998, July 20, 1998, and October 15, 1998).
    During this time, the parties continued to negotiate among 
themselves. As a result, all of the Phase I parties, with the exception 
of Joint Sports Claimants and Program Suppliers, settled their Phase I 
claims for 15.5% of the total aggregate amount of the satellite royalty 
fees for the years 1992-1995. See Order in Docket No. 97-1 CARP SD 92-
95 (December 21, 1998).

[[Page 25375]]

Thus, the only parties who will appear before the CARP in the current 
Phase I proceeding are the Joint Sports Claimants and the Program 
Suppliers. The 45-day precontroversy discovery period for these parties 
began on January 8, 1999, and proceeded according to the schedule 
announced in the October 15, 1998, Order. However, the April 5 
initiation date set in that schedule has been rescheduled for May 18, 
1999, in order to accommodate conflicts in both the arbitrators' and 
the parties' schedules. The Office will publish the initiation of the 
arbitration in the Federal Register on May 18, 1999.

Selection of Arbitrators

    In accordance with Sec. 251.6 of the CARP rules, the arbitrators 
have been selected for this proceeding. They are:

The Honorable John W. Cooley (Chairperson)
The Honorable Jeffrey Gulin
The Honorable Curtis E. von Kann.

Schedule for the Proceeding

    On April 20, 1999, the parties to this proceeding met with the 
arbitrators for the purpose of setting a schedule for this proceeding. 
At that meeting, the parties and the arbitrators agreed to the 
following schedule:

Presentation of Direct Cases:
Opening statement: Joint Sports       May 18, 1999.
 Claimants (JSC).
    Testimony for JSC <SUP>2</SUP>:
        Witnesses: (week 1)
            Paul Beeston, Paul        May 18-22, 1999.
             Bortz, James Trautman,
             Gilbert Korta, Kimberly
        Witnesses: (week 2)
            Glen Friedman, Jeffrey    June 1-5, 1999.
             Treeman, Jody Kaveney,
             Scott Shultz, John
             Hartman, Edwin Desser.
Opening Statement: Program Suppliers  June 7, 1999.
    Testimony for Program Suppliers:
        Marsha Kessler..............  June 7, 1999.
        Marsha Kessler, Sandra Pope.  June 9, 1999.
        Linda McLaughlin............  June 14, 1999.
        Alan Wurtzel, Leonard         June 15, 1999.
        Paul Lindstrom..............  June 16, 1999.
        James Von Schilling.........  June 17, 1999.
Additional Hearing Days (if           June 22-25, 1999.
Filing Deadline for Written Rebuttal  June 28, 1999.
Presentation of Rebuttal Cases......  July 26-27, 1999; August 11-20,
Filing Deadline for Proposed          September 13, 1999.
 Findings of Fact and Conclusions of
Filing Deadline for Reply Findings    September 27, 1999.
 of Fact and Conclusions of Law.
Closing Arguments...................  October 14, 1999.
Closing of the 180-day period.......  November 15, 1999.

\2\ JSC did not designate specific dates for the presentation of
  testimony by its witnesses.

    All hearings will begin at 9:30 a.m. and end at 4:30 p.m.
    At this time, the parties have not moved to close any portion of 
the proceeding to the public. Further refinements to the schedule will 
be announced in open meetings and issued as orders to the parties 
participating in the proceeding. All changes will be noted in the 
docket file of the proceeding, as required by the Copyright Office 
regulations governing the administration of CARP proceedings. 37 CFR 

    Dated: May 6, 1999.
David O. Carson,
General Counsel.
[FR Doc. 99-11884 Filed 5-10-99; 9:47 am]