[Code of Federal Regulations]
[Title 37, Volume 1]
[Revised as of July 1, 1999]
From the U.S. Government Printing Office via GPO Access
[CITE: 37CFR201.17]

[Page 360-371]
 
             TITLE 37--PATENTS, TRADEMARKS, AND COPYRIGHTS
 
                                CONGRESS
 
PART 201--GENERAL PROVISIONS--Table of Contents
 
Sec. 201.17  Statements of Account covering compulsory licenses for secondary transmissions by cable systems.

    (a) General. This section prescribes rules pertaining to the deposit 
of Statements of Account and royalty fees in the Coypright Office as 
required by section 111(d)(2) of title 17 of the United States Code in 
order for secondary transmissions of cable systems to be subject to 
compulsory licensing.
    (b) Definitions. (1) Gross receipts for the ``basic service of 
providing secondary transmissions of primary broadcast transmitters'' 
include the full amount of monthly (or other periodic) service fees for 
any and all services or tiers of services which include one or more 
secondary transmissions of television or radio broadcast signals, for 
additional set fees, and for converter fees. In no case shall gross 
receipts be less than the cost of obtaining the signals of primary 
broadcast transmitters for subsequent retransmission. All such gross 
receipts shall be aggregated and the DSE calculations shall be made 
against the aggregated amount. Gross receipts for secondary transmission 
services do not include installation (including connection, relocation, 
disconnection, or reconnection) fees, separate charges for security, 
alarm or facsimile services, charges for late payments, or charges for 
pay cable or other program origination services: Provided That, the 
origination services are not offered in combination with secondary 
transmission service for a single fee.
    (2) A cable system is a facility, located in any State, Territory, 
Trust Territory, or Possession, that in whole or in part receives 
signals transmitted or programs broadcast by one or more television 
broadcast stations licensed by the Federal Communications Commission, 
and makes secondary transmissions of such signals or programs by wires, 
cables, microwave, or other communications channels to subscribing 
members of the public who pay for such service. A system that meets this 
definition is considered a ``cable system'' for copyright purposes, even 
if the FCC excludes it from being considered a ``cable system'' because 
of the number or nature of its subscribers or the nature of its 
secondary transmissions. The statements of account and royalty fees to 
be deposited under Sec. 201.17 of this section, shall be recorded and 
deposited by each individual cable system desiring its secondary 
transmissions to be subject to compulsory licensing. The owner of each 
individual cable system on the last day of the accounting period covered 
by a Statement of Account is responsible for depositing the Statement of 
Account and remitting the copyright royalty fees. For these purposes, 
and the purpose of Sec. 201.17 of this section, an ``individual'' cable 
system is each cable system recognized as a distinct entity under the 
rules, regulations, and practices of the Federal Communications 
Commission in effect on the last day of the accounting period covered by 
a Statement of Account, in the case of the preparation and deposit of a 
Statement of Account and copyright royalty fee. For these purposes, two 
or more cable facilities are considered as one individual cable system 
if the facilities are either:
    (i) In contiguous communities under common ownership or control or
    (ii) Operating from one headend.
    (3) FCC means the Federal Communications Commission.
    (4) In the case of cable systems which make secondary transmissions 
of all available FM radio signals, which signals are not electronically 
processed by the system as separate and discrete signals, an FM radio 
signal is ``generally receivable'' if:
    (i) It is usually carried by the system whenever it is received at 
the system's headend, and
    (ii) As a result of monitoring at reasonable times and intervals, it 
can be expected to be received at the system's headend, with the 
system's FM antenna, at least three consecutive hours each day at the 
same time each day, five or more days a week, for four or more weeks 
during any calendar quarter, with a strength of not less than fifty 
microvolts per meter measured at the foot of the tower or pole to which 
the antenna is attached.
    (5) The terms primary transmission, secondary transmission, local 
service area of a primary transmitter, distant signal

[[Page 361]]

equivalent, network station, independent station, and noncommercial 
educational station have the meanings set forth in section 111(f) of 
title 17 of the United States Code, as amended by Pub. L. 94-553 and 
Pub. L. 103-369.
    (6) A primary transmitter is a ``distant'' station, for purposes of 
this section, if the programming of such transmitter is carried by the 
cable system in whole or in part beyond the local service area of such 
primary transmitter.
    (7) A translator station is, with respect to programs both 
originally transmitted and retransmitted by it, a primary transmitter 
for the purposes of this section. A translator station which retransmits 
the programs of a network station will be considered a network station; 
a translator station which retransmits the programs of an independent 
station shall be considered an independent station; and a translator 
station which retransmits the programs of a noncommercial educational 
station shall be considered a noncommercial educational station. The 
determination of whether a translator station should be identified as a 
``distant'' station depends on the local service area of the translator 
station.
    (8) For purposes of this section, the ``rules and regulations of the 
FCC in effect on October 19, 1976,'' which permitted a cable system, at 
its election, to omit the retransmission of a particular program and 
substitute another program in its place, refers to that portion of 
former 47 CFR 76.61(b)(2), revised June 25, 1981, and Sec. 76.63 
(referring to Sec. 76.61(b)(2)), deleted June 25, 1981, concerning the 
substitution of a program that is primarily of local interest to the 
distant community (e.g., a local news or public affairs program).
    (9) For purposes of this section, the ``rules and regulations of the 
FCC'', which require a cable system to omit the retransmission of a 
particular program and substitute another program in its place, refers 
to 47 CFR 76.67.
    (10) For purposes of this section, a cable system ``lacks the 
activated channel capacity to retransmit on a full-time basis all 
signals which it is authorized to carry'' only if:
    (i) All of its activated television channels are used exclusively 
for the secondary transmission of television signals; and
    (ii) The number of primary television transmitters secondarily 
transmitted by the cable system exceeds the number of its activated 
television channels.
    (c) Accounting periods and deposit. (1) Statements of Account shall 
cover semiannual accounting periods of (i) January 1 through June 30, 
and (ii) July 1 through December 31, and shall be deposited in the 
Copyright Office, together with the total royalty fee for such 
accounting periods as prescribed by section 111(d)(1) (B), (C), or (D) 
of title 17, by not later than the immediately following August 29, if 
the Statement of Account covers the January 1 through June 30 accounting 
period, and by not later than the immediately following March 1, if the 
Statement of Account covers the July 1 through December 31 accounting 
period.
    (2) Upon receiving a Statement of Account and royalty fee, the 
Copyright Office will make an official record of the actual date when 
such Statement and fee were physically received in the Copyright Office. 
Thereafter, the Office will examine the Statement and fee for obvious 
errors or omissions appearing on the face of the documents, and will 
require that any such obvious errors or omissions be corrected before 
final processing of the documents is completed. If, as the result of 
communications between the Copyright Office and the cable system, an 
additional fee is deposited or changes or additions are made in the 
Statement of Account, the date that additional deposit or information 
was actually received in the Office will be added to the official record 
of the case. However, completion by the Copyright Office of the final 
processing of a Statement of Account and royalty fee deposit shall 
establish only the fact of such completion and the date or dates of 
receipt shown in the official record. It shall in no case be considered 
a determination that the Statement of Account was, in fact, properly 
prepared and accurate, that the correct amount of the royalty fee had 
been deposited, that the statutory time limits for filing had been met, 
or that any other requirements to qualify

[[Page 362]]

for a compulsory license have been satisfied.
    (3) Statements of Account and royalty fees received before the end 
of the particular accounting period they purport to cover will not be 
processed by the Copyright Office. Statements of Account and royalty 
fees received after the filing deadlines of August 29 or March 1, 
respectively, will be accepted for whatever legal effect they may have, 
if any.
    (4) In the Register's discretion, four years after the close of any 
calendar year, the Register may, close out the royalty payments account 
for that calendar year, and may treat any funds remaining in such 
account and any subsequent deposits that would otherwise be attributable 
to that calendar year as attributable to the succeeding calendar year.
    (d) Forms. (1) Each Statement of Account shall be furnished on an 
appropriate form prescribed by the Copyright Office, and shall contain 
the information required by that form and its accompanying instructions. 
Computation of distant signal equivalents and the copyright royalty fee 
shall be in accordance with the procedures set forth in the forms. 
Copies of Statement of Account forms are available free upon request to 
the Licensing Division, United States Copyright Office, Library of 
Congress, Washington, DC 20557.
    (2) The forms prescribed by the Copyright Office are designated 
``Statement of Account for Secondary Transmissions By Cable Systems'':
    (i) Form SA1-2--``Short Form'' for use by cable systems whose 
semiannual gross receipts for secondary transmission total less than 
$292,000; and
    (ii) Form SA3--``Long Form'' for use by cable systems whose 
semiannual gross receipts for secondary transmission total $292,000 or 
more.
    (e) Contents. Each Statement of Account shall contain the following 
information:
    (1) A clear designation of the accounting period covered by the 
Statement.
    (2) The designation ``Owner,'' followed by:
    (i) The full legal name of the owner of the cable system. The 
`owner' of the cable system is the individual or entity that provides 
the retransmission service and collects payment from the end user either 
directly or indirectly through a third party. If the owner is a 
partnership, the name of the partnership is to be followed by the name 
of at least one individual partner;
    (ii) Any other name or names under which the owner conducts the 
business of the cable system; and
    (iii) The full mailing address of the owner.

Ownership, other names under which the owner conducts the business of 
the cable system, and the owner's mailing address shall reflect facts 
existing on the last day of the accounting period covered by the 
Statement of Account.
    (3) The designation ``System,'' followed by:
    (i) Any business or trade names used to identify the business and 
operation of the system, unless these names have already been given 
under the designation ``Owner''; and
    (ii) The full mailing address of the system, unless such address is 
the same as the address given under the designation ``Owner''.

Business or trade names used to identify the business and operation of 
the system, and the system's mailing address, shall reflect the facts 
existing on the last day of the accounting period covered by the 
Statement of Account.
    (4) The designation ``Area Served'', followed by the name of the 
community or communities served by the system. For this purpose a 
``community'' is the same as a ``community unit'' as defined in FCC 
rules and regulations.
    (5) The designation ``Channels,'' followed by:
    (i) The number of channels on which the cable system made secondary 
transmissions to its subscribers, and
    (ii) The cable system's total activated channel capacity, in each 
case during the period covered by the Statement.
    (6) The designation ``Secondary Transmission Service: Subscribers 
and Rates'', followed by:
    (i) A brief description of each subscriber category for which a 
charge is made by the cable system for the basic

[[Page 363]]

service of providing secondary transmissions of primary broadcast 
transmitters;
    (ii) The number of subscribers to the cable system in each such 
subscriber category; and
    (iii) The charge or charges made per subscriber to each such 
subscriber category for the basic service of providing such secondary 
transmissions. Standard rate variations within a particular category 
should be summarized; discounts allowed for advance payment should not 
be included. For these purposes:
    (A) The description, the number of subscribers, and the charge or 
charges made shall reflect the facts existing on the last day of the 
period covered by the Statement; and
    (B) Each entity (for example, the owner of a private home, the 
resident of an apartment, the owner of a motel, or the owner of an 
apartment house) which is charged by the cable system for the basic 
service of providing secondary transmissions shall be considered one 
subscriber.
    (7) The designation ``Gross Receipts'', followed by the gross amount 
paid to the cable system by subscribers for the basic service of 
providing secondary transmissions of primary broadcast transmissions 
during the period covered by the Statement of Account. If the cable 
system maintains its revenue accounts on an accrual basis, gross 
receipts for any accounting period includes all such amounts accrued for 
secondary transmission service furnished during that period, regardless 
of when accrued:
    (i) Less the amount of any bad debts actually written-off during 
that accounting period, excluding bad debts for secondary transmission 
service furnished before January 1, 1978;
    (ii) Plus the amount of any previously written-off bad debts for 
secondary transmission service which were actually recovered during that 
accounting period, excluding bad debt recoveries for secondary 
transmission service furnished before January 1, 1978.


If the cable system maintains its revenue accounts on a cash basis, 
gross receipts for any accounting period includes all such amounts 
actually received by the cable system during that accounting period, 
excluding amounts paid for secondary transmission service furnished 
before January 1, 1978; however, amounts received before January 1, 
1978, for secondary transmission service furnished after that date, are 
to be considered as if they had been received during the accounting 
period in which the service covered by such payments was furnished.
    (8) The designation ``Services Other Than Secondary Transmissions: 
Rates,'' followed by a description of each package of service which 
consists solely of services other than secondary transmission services, 
for which a separate charge was made or established, and which the cable 
system furnished or made available to subscribers during the period 
covered by the Statement of Account, together with the amount of such 
charge. However, no information need be given concerning services 
furnished at cost. Specific amounts charged for pay cable programming 
need not be given if the rates are on a variable, per-program basis. 
(The fact of such variable charge shall be indicated.)
    (9) The designation ``Primary Transmitters: Television'', followed 
by an identification of all primary television transmitters whose 
signals were carried by the cable system during the period covered by 
the Statement of Account, other than primary transmitters of programs 
carried by the cable system exclusively pursuant to rules, regulations, 
or authorizations of the FCC in effect on October 19, 1976, permitting 
the substitution of signals under certain circumstances, and required to 
be specially identified by paragraph (e)(11) of this section, together 
with the information listed below:
    (i) The station call sign of the primary transmitter.
    (ii) The name of the community to which that primary transmitter is 
licensed by the FCC (in the case of domestic signals) or with which that 
primary transmitter is identified (in the case of foreign signals).
    (iii) The number of the channel upon which that primary transmitter 
broadcasts in the community to which that primary transmitter is 
licensed by the

[[Page 364]]

FCC (in the case of domestic signals) or with which that primary 
transmitter is identified (in the case of foreign signals).
    (iv) A designation as to whether that primary transmitter is a 
``network station'', an ``independent station'', or a ``noncommercial 
educational station''.
    (v) A designation as to whether that primary transmitter is a 
``distant'' station.
    (vi) If that primary transmitter is a ``distant'' station, a 
specification of whether the signals of that primary transmitter are 
carried:
    (A) On a part-time basis where full-time carriage is not possible 
because the cable system lacks the activated channel capacity to 
retransmit on a full-time basis all signals which it is authorized to 
carry; or
    (B) On any other basis.

If the signals of that primary transmitter are carried on a part-time 
basis because of lack of activated channel capacity, the Statement shall 
also include a log showing the dates on which such carriage occurred, 
and the hours during which such carriage occurred on those dates. Hours 
of carriage shall be accurate to the nearest quarter-hour, except that, 
in any case where such part-time carriage extends to the end of the 
broadcast day of the primary transmitter, an approximate ending hour may 
be given if it is indicated as an estimate.
    (vii) The information indicated by paragraph (e)(9), subclauses (v) 
and (vi) of this section, is not required to be given by any cable 
system that appropriately completed Form SA1-2 for the period covered by 
the Statement.
    (viii) Notwithstanding the requirements of this section, where a 
cable system carried a distant primary transmitter under FCC rules and 
regulations in effect on October 19, 1976 which permitted carriage of 
specific network programs on a part-time basis in certain circumstances 
(former 47 CFR 76.59 (d) (2) and (4), 76.61(e) (2) and (4), and 76.63, 
referring to Sec. 76.61(e) (2) and (4), all of which were deleted June 
25, 1981), carriage of that primary transmitter on that basis need not 
be reported, and that carriage is to be excluded in computing the 
distant signal equivalent of that primary transmitter.
    (10) The designation ``Primary Transmitters: Radio'', followed by an 
identification of primary radio transmitters whose signals were carried 
by the cable system during the period covered by the Statement of 
Account, together with the information listed below:
    (i) A designation as to whether each primary transmitter was 
electronically processed by the system as a separate and discrete 
signal.
    (ii) The station call sign of each:
    (A) AM primary transmitter;
    (B) FM primary transmitter, the signals of which were electronically 
processed by the system as separate and discrete signals; and
    (C) FM primary transmitter carried on an all-band retransmission 
basis, the signals of which were generally receivable by the system.
    (iii) A designation as to whether the primary transmitter is AM or 
FM.
    (iv) The name of the community to which that primary transmitter is 
licensed by the FCC (in the case of domestic signals) or with which that 
primary transmitter is identified (in the case of foreign signals).
    (11) A special statement and program log, which shall consist of the 
information indicated below for all nonnetwork television programming 
that, during the period covered by the Statement, was carried in whole 
or in part beyond the local service area of the primary transmitter of 
such programming under (i) rules or regulations of the FCC requiring a 
cable system to omit the further transmission of a particular program 
and permitting the substitution of another program in place of the 
omitted transmission; or (ii) rules, regulations, or authorizations of 
the FCC in effect on October 19, 1976, permitting a cable system, at its 
election, to omit the further transmission of a particular program and 
permitting the substitution of another program in place of the omitted 
transmission:
    (A) The name or title of the substitute program.
    (B) Whether the substitute program was transmitted live by its 
primary transmitter.

[[Page 365]]

    (C) The station call sign of the primary transmitter of the 
substitute program.
    (D) The name of the community to which the primary transmitter of 
the substitute program is licensed by the FCC (in the case of domestic 
signals) or with which that primary transmitter is identified (in the 
case of foreign signals).
    (E) The date when the secondary transmission of the substitute 
program occurred, and the hours during which such secondary transmission 
occurred on that date accurate to the nearest 5 minutes.
    (F) A designation as to whether deletion of the omitted program was 
permitted by the rules, regulations, or authorizations of the FCC in 
effect on October 19, 1976, or was required by the rules, regulations, 
or authorizations of the FCC.
    (12) A statement of the total royalty fee payable for the period 
covered by the Statement of Account, together with a royalty fee 
analysis which gives a clear, complete, and detailed presentation of the 
determination of such fee. This analysis shall present in appropriate 
sequence all facts, figures, and mathematical processes used in 
determining such fee, and shall do so in such manner as required in the 
appropriate form so as to permit the Copyright Office to verify readily, 
from the face of the Statement of Account, the accuracy of such 
determination and fee. The royalty fee analysis is not required to be 
given by any cable system whose gross receipts from subscribers for the 
period covered by the Statement of Account, for the basic service of 
providing secondary transmissions of primary broadcast transmissions, 
total $75,800 or less.
    (13) The name, address, and telephone number of an individual who 
may be contacted by the Copyright Office for further information about 
the Statement of Account.
    (14) The handwritten signature of:
    (i) The owner of the cable system or a duly authorized agent of the 
owner, if the owner is not a partnership or a corporation; or
    (ii) A partner, if the owner is a partnership; or
    (iii) An officer of the corporation, if the owner is a corporation. 
The signature shall be accompanied by:
    (A) The printed or typewritten name of the person signing the 
Statement of Account;
    (B) The date of signature;
    (C) If the owner of the cable system is a partnership or a 
corporation, by the title or official position held in the partnership 
or corporation by the person signing the Statement of Account;
    (D) A certification of the capacity of the person signing; and
    (E) A declaration of the veracity of the statements of fact 
contained in the Statement of Account and the good faith of the person 
signing in making such statement of fact.
    (f) Computation of distant signal equivalents. (1) A cable system 
that elects to delete a particular television program and substitute for 
that program another television program (``substitute program'') under 
rules, regulations, or authorizations of the FCC in effect on October 
19, 1976, which permit a cable system, at its election, to omit the 
retransmission of a particular program and substitute another program in 
its place shall compute the distant signal equivalent (``DSE'') of each 
primary transmitter that broadcasts one or more substitute programs by 
dividing:
    (i) The number of the primary transmitter's live, nonnetwork, 
substitute programs that were carried by the cable system, during the 
period covered by the Statement of Account, in substitution for programs 
deleted at the option of the system; by
    (ii) The number of days in the year in which the substitution 
occurred.
    (2)(i) Where a cable system carries a primary transmitter on a full-
time basis during any portion of an accounting period, the system shall 
compute a DSE for that primary transmitter as if it was carried full-
time during the entire accounting period.
    (ii) Where a cable system carries a primary transmitter solely on a 
substitute or part-time basis, in accordance with paragraph (f)(3) of 
this section, the system shall compute a DSE for that primary 
transmitter based on its cumulative carriage on a substitute or part-
time basis. If that primary

[[Page 366]]

transmitter is carried on a full-time basis as well as on a substitute 
or part-time basis, the full DSE for that primary transmitter shall be 
the full DSE type value for that primary transmitter, for the entire 
accounting period.
    (3)(i) In computing the DSE of a primary transmitter in a particular 
case of carriage before July 1, 1981, the cable system may make no 
prorated adjustments other than those specified as permissible 
``exceptions and limitations'' in the definition of ``distant signal 
equivalent'' in the fifth paragraph of section 111(f) of title 17 of the 
United States Code, as amended by Pub. L. 94-553. Four prorated 
adjustments, as prescribed in the fourth and fifth sentences of said 
definition, are permitted under certain conditions where:
    (A) A station is carried pursuant to the late-night programming 
rules of the Federal Communications Commission in effect on the date of 
carriage;
    (B) A station is carried pursuant to the specialty programming rules 
of the Federal Communications Commission in effect on the date of 
carriage;
    (C) A station is carried on a part-time basis where full-time 
carriage is not possible because the cable system lacks the activated 
channel capacity to retransmit on a full-time basis all signals which it 
is authorized to carry; and
    (D) A station is carried on a ``substitute'' basis under rules, 
regulations, or authorizations of the Federal Communications Commission 
in effect on October 19, 1976.
    (ii) In computing the DSE of a primary transmitter in a particular 
case of carriage on or after July 1, 1981, the cable system may make no 
prorated adjustments other than those specified as permissible 
``exceptions and limitations'' in the definition of ``distant signal 
equivalent'' in the fifth paragraph of section 111(f) of title 17 of the 
United States Code, as amended by Pub. L. 94-553, and which remain in 
force under that provision. Two prorated adjustments, as prescribed in 
the fourth and fifth sentences of said definition, are permitted under 
certain conditions where:
    (A) A station is carried on a part-time basis where full-time 
carriage is not possible because the cable system lacks the activated 
channel capacity to retransmit on a full-time basis all signals which it 
is authorized to carry; and
    (B) A station is carried on a ``substitute'' basis under rules, 
regulations, or authorizations of the Federal Communications Commission 
in effect on October 19, 1976, which permitted a cable system, at its 
election, to omit the retransmission of a particular program and 
substitute another program in its place.
    (4) In computing a DSE, a cable system may round off to the third 
decimal point. If a DSE is rounded off in any case in a Statement of 
Account, it must be rounded off throughout the Statement. Where a cable 
system has chosen to round off, and the fourth decimal point for a 
particular DSE value would, without rounding off, have been 1, 2, 3, or 
4, the third decimal point remains unchanged; if, in such a case, the 
fourth decimal point would, without rounding off, be 5, 6, 7, 8, or 9, 
the third decimal point must be rounded off to the next higher number.
    (5) For the purposes of computing DSE values, specialty primary 
television transmitters in the United States and all Canadian and 
Mexican primary television transmitters shall be assigned a value of 
one.
    (g) Computation of the copyright royalty fee: Partially distant 
stations. A cable system located partly within and partly without the 
local service area of a primary television transmitter (``partially 
distant station'') computes the royalty fee specified in section 
111(d)(1)(B) (ii), (iii), and (iv) of the Copyright Act (``DSE fee'') by 
excluding gross receipts from subscribers located within that station's 
local service area from total gross receipts. A cable system which 
carries two or more partially distant stations with local service areas 
that do not exactly coincide shall compute a separate DSE fee for each 
group of subscribers who are located outside of the local service areas 
of exactly the same complement of distant stations. Computation of the 
DSE fee for each subscriber group is to be based on:

[[Page 367]]

    (1) The total distant signal equivalents of that group's complement 
of distant stations, and
    (2) The total gross receipts from that group of subscribers. The 
copyright royalty fee for that cable system is:
    (i) The total of the subscriber group royalty fees thus computed, or
    (ii) 0.893 of 1 percent of the system's gross receipts from all 
subscribers, whichever is larger.
    (h) Computation of the copyright royalty fee pursuant to the 1982 
cable rate adjustment. (1) For the purposes of this paragraph, in 
addition to the definitions of paragraph (b) of this section, the 
following definitions shall also apply:
    (i) Current base rate means the applicable royalty rates in effect 
on December 31, 1982, as reflected in 37 CFR 256.2(a).
    (ii) If the 3.75% rate does not apply to certain DSE's in the case 
of a cable system located wholly or in part within a top 100 television 
market, the current base rate together with the surcharge shall apply. 
However, the surcharge shall not apply for carriage of a particular 
signal first carried prior to March 31, 1972. With respect to statements 
of account covering the filing period beginning January 1, 1990, and 
subsequent filing periods, the current base rate together with the 
surcharge shall apply only to those DSE's that represent commercial VHF 
signals which place a predicted Grade B contour, in whole or in part, 
over a cable system. The surcharge will not apply if the signal is 
exempt from the syndicated exclusivity rules in effect on June 24, 1981.
    (iii) The 3.75% rate means the rate established by 37 CFR 256.2(c), 
in effect on March 15, 1983.
    (iv) Top 100 television market means a television market defined or 
interpreted as being within either the ``top 50 television markets'' or 
``second 50 television markets'' in accordance with 47 CFR 76.51, in 
effect on June 24, 1981.
    (v) The 1982 cable rate adjustment means the rate adjustment adopted 
by the Copyright Royalty Tribunal on October 20, 1982 (CRT Docket No. 
81-2, 47 FR 52146, November 19, 1982).
    (vi) The terms DSE or DSE's mean ``distant signal equivalent(s)'' as 
defined in 17 U.S.C. 111(f) and any fraction thereof.
    (2) A cable system filing Form SA3 shall compute its royalty fee in 
the following manner:
    (i) The cable system shall first determine those DSE's to which the 
3.75% rate established by 37 CFR 256.2(c) applies.
    (ii) If the 3.75% rate does not apply to certain DSE's in the case 
of a cable system located wholly or in part within a top 100 television 
market, the current base rate together with the surcharge shall apply. 
However, the surcharge shall not apply for carriage of a particular 
signal first carried prior to March 31, 1972. With respect to statements 
of account covering the filing period beginning January 1, 1990, and 
subsequent filing periods, the current base rate together with the 
surcharge shall apply only to those DSE's that represent commercial VHF 
signals which place a predicted Grade B contour, in whole or in part, 
over a cable system. The surcharge will not apply if the signal is 
exempt from the syndicated exclusivity rules in effect on June 24, 1981.
    (iii) If the 3.75% rate does not apply to certain DSE's, in the case 
of a cable system located wholly outside a top 100 television market, 
the current base rate shall apply.
    (iv) Commencing with the semiannual accounting period of January 1, 
1998, through June 30, 1998, the 3.75% rate applies to certain DSE's 
with respect to the communities within the cable system where carriage 
would not have been permitted under the rules and regulations of the 
Federal Communications Commission in effect on June 24, 1981, but in all 
other communities within the cable system, the current base rate and the 
syndicated exclusivity surcharge, where applicable, shall apply. Such 
computation shall be made as provided for on Form SA3. The calculations 
shall be based upon the gross receipts from all subscribers, within the 
relevant communities, for the basic service of providing secondary 
transmissions of primary broadcast transmitters, without regard to 
whether those subscribers actually received the station in question. For

[[Page 368]]

partially-distant stations, gross receipts shall be the total gross 
receipts from subscribers outside the local service area.
    (3) A cable system whose semiannual gross receipts for secondary 
transmissions totalled $214,000 or more during the period January 1, 
1983, through June 30, 1983, shall compute its royalty fee for carriage 
during that period in the following manner:
    (i) Copyright royalty fees must be paid on the basis of carriage for 
the entire accounting period except where proration of the DSE is 
permitted as described in paragraph (f)(3) of this section.
    (ii) Where a distant signal was carried at any time only between 
January 1, 1983, and March 14, 1983;
    (A) In the case of a cable system located wholly or in part within a 
top 100 television market, the current base rate, together with the 
surcharge shall apply. However, the surcharge shall not apply for 
carriage of a particular signal first carried prior to March 31, 1972.
    (B) In case of a cable system located wholly outside a top 100 
television market, the current base rate shall apply.
    (iii) Where a distant signal was carried at any time after March 14, 
1983;
    (A) The cable system shall first determine those DSE's to which the 
3.75% rate established by 37 CFR 256.2(c) applies.
    (B) If the 3.75% rate is applicable to a particular DSE, it shall be 
applied against the per centum .5967 (representing the number of days 
from March 15, 1983, through June 30, 1983, inclusive, in relation to 
the entire accounting period); and either
    (1) In the case of a cable system located wholly or in part within a 
top 100 television market, the current base rate, together with the 
surcharge, applied against the per centum .4033 (representing the number 
of days from January 1, 1983, through March 14, 1983, inclusive, in 
relation to the entire accounting period); however, the surcharge shall 
not apply for carriage of a particular signal first carried prior to 
March 31, 1972; or
    (2) In the case of a cable system located wholly outside a top 100 
television market, the current base rate applied against the per centum 
.4033.
    (C) If the 3.75% rate does not apply to certain DSE's, in the case 
of a cable system located wholly or in part within a top 100 television 
market, the current base rate together with the surcharge shall apply. 
However, the surcharge shall not apply for carriage of a particular 
signal first carried prior to March 31, 1972.
    (D) If the 3.75% rate does not apply to certain DSE's, in the case 
of a cable system located wholly outside a top 100 television market, 
the current base rate shall apply.
    (4)(i) Separate Supplemental DSE Schedules as prescribed by the 
Copyright Office shall be completed and filed by a cable system affected 
by the 1982 cable rate adjustment for the accounting periods January 1, 
1983, through June 30, 1983 (83-1), and July 1, 1983, through December 
31, 1983 (83-2). Each Supplemental DSE schedule shall contain the 
information required by that form and its accompanying instructions.
    (ii) The Supplemental DSE Schedule will be mailed to all cable 
systems whose gross receipts for secondary transmissions total $214,000 
or more either for accounting period 83-1 or for 83-2, and shall be 
completed and returned to the Copyright Office with the supplemental 
royalty fee due, if any, within sixty-five (65) days from the date of 
mailing by the Copyright Office.
    (iii) Cable systems located wholly outside all major and smaller 
television markets as defined by the FCC are not affected by the 1982 
cable rate adjustment. Such systems shall complete a certifying 
statement provided in the Supplemental DSE Schedule and return it within 
sixty-five days from the date of mailing by the Copyright Office.
    (5)(i) It shall be presumed that the 3.75% rate of 37 CFR 308.2(c) 
applies to DSE's accruing from newly added distant signals, carried for 
the first time by a cable system after June 24, 1981.
    (ii) The presumption of paragraph (h)(5)(i) of this section can be 
rebutted in whole or in part:
    (A) By actual carriage of a particular distant signal prior to June 
25, 1981, as

[[Page 369]]

reported in Statements of Account duly filed with the Copyright Office 
(``actual carriage''), unless the prior carriage was not permitted by 
the FCC; or
    (B) By carriage of no more than the number of distant signals which 
was or would have been allotted to the cable system under the FCC's 
quota for importation of network and nonspecialty independent stations 
(47 CFR 76.59(b), 76.61 (b) and (c) and 76.63, referring to 76.61 (b) 
and (c), in effect on June 24, 1981).
    (6) To qualify as an FCC-permitted signal on the ground of 
individual waiver of the FCC rules (47 CFR 76.7 in effect on June 24, 
1981), the waiver must have actually been granted by the FCC, and the 
signal must have been first carried by the cable system after April 15, 
1976.
    (7) Expanded geographic carriage after June 24, 1981, of a signal 
previously carried within only certain parts of a cable system is 
governed by the current base rate and the surcharge, if applicable.
    (8) In cases of expanded temporal carriage of the same signal, 
previously carried pursuant to the FCC's former part-time or substitute 
carriage rules (47 CFR 76.61(b)(2), 76.61 (e)(1) and (e)(3), and 76.63, 
referring to 76.61 (e)(1) and (e)(3), in effect on June 24, 1981), the 
3.75% rate shall be applied to any additional fraction of a DSE accruing 
from the expanded temporal carriage of that signal. To identify such 
additional DSE's, a comparison shall be made of DSE's reported for that 
signal in any single accounting period prior to the July 1, 1981, to 
December 31, 1981, period (81-2), as designated by the cable system, 
with the DSE's for that same signal reported in the current relevant 
accounting period.
    (9) Substitution of like signals pursuant to 37 CFR 256.2(c) is 
possible at the relevant non-3.75% rate (the surcharge together with the 
current base rate, or the current base rate alone) only if the 
substitution does not exceed the number of distant signals which was or 
would have been allotted to the cable system under the FCC's television 
market quota for importation of network and nonspecialty independent 
stations (47 CFR 76.59(b), 76.61 (b) and (c), and 76.63, referring to 
76.61 (b) and (c), in effect on June 24, 1981.
    (i) Royalty fee payment. (1) All royalty fees may be paid by 
electronic transfer of funds, provided the payment is received in the 
designated United States Federal Reserve Bank by the filing deadline for 
the relevant accounting period. Except in the case of an electronic 
payment, the royalty fee payable for the period covered by the Statement 
of Account shall accompany that Statement of Account and shall be 
deposited at the Copyright Office with it. Payment must be in the form 
of a certified check, cashier's check, or a money order, payable to: 
Register of Copyrights; or a United States Treasury electronic payment.
    (2) Royalty fee payments submitted as a result of late or amended 
filings shall include interest. Interest shall begin to accrue beginning 
on the first day after the close of the period for filing statements of 
account for all underpayments of royalties for the cable compulsory 
license occurring within that accounting period. The accrual period 
shall end on the date appearing on the certified check, cashier's check, 
money order or electronic payment submitted by a cable system, provided 
that such payment is received by the Copyright Office within five 
business days of that date. If the payment is not received by the 
Copyright Office within five business days of its date, then the accrual 
period shall end on the date of actual receipt by the Copyright Office.
    (i) The interest rate applicable to a specific accounting period 
beginning with the 1992/2 period shall be the Current Value of Funds 
Rate, as established by section 8025.40 of the Treasury Financial Manual 
and published in the Federal Register, in effect on the first business 
day after the close of the filing deadline for that accounting period. 
Cable operators wishing to obtain the interest rate for a specific 
accounting period may do so by consulting the Federal Register for the 
applicable Current Value of Funds Rate, or by contacting the Licensing 
Division of the Copyright Office.
    (ii) The interest rate applicable to a specific accounting period 
earlier than the 1992/2 period shall be the rate fixed

[[Page 370]]

by the Licensing Division of the Copyright Office pursuant to 37 CFR 
201.17(i) in effect on June 30, 1992.
    (iii) Interest is not required to be paid on any royalty 
underpayment or late payment from a particular accounting period if the 
interest charge is less than or equal to five dollars ($5.00).
    (j) Corrections, supplemental payments, and refunds. (1) Upon 
compliance with the procedures and within the time limits set forth in 
paragraph (j)(3) of this section, corrections to Statements of Account 
will be placed on record, supplemental royalty fee payments will be 
received for deposit, or refunds will be issued, in the following cases:
    (i) Where, with respect to the accounting period covered by a 
Statement of Account, any of the information given in the Statement 
filed in the Copyright Office is incorrect or incomplete;
    (ii) Where, for any reason except that mentioned in paragraph 
(j)(1)(iii) of this section, calculation of the royalty fee payable for 
a particular accounting period was incorrect, and the amount deposited 
in the Copyright Office for that period was either too high or too low; 
or
    (iii) Where, for the semiannual accounting period of January 1, 
1978, through June 30, 1978, the total royalty fee deposited was 
incorrect because the cable operator failed to compute royalties 
attributable to carriage of late-night, specialty, or part-time 
programming between January 1, 1978, and February 9, 1978.
    (2) Corrections to Statements of Account will not be placed on 
record, supplemental royalty fee payments will not be received for 
deposit, and refunds will not be issued, where the information in the 
Statements of Account, the royalty fee calculations, or the payments 
were correct as of the date on which the accounting period ended, but 
changes (for example, addition or deletion of a distant signal) took 
place later.
    (3) Requests that corrections to a Statement of Account be placed on 
record, that fee payments be accepted, or requests for the issuance of 
refunds, shall be made only in the cases mentioned in paragraph (j)(1) 
of this section. Such requests shall be addressed to the Licensing 
Division of the Copyright Office, and shall meet the following 
conditions:
    (i) The request must be in writing, must clearly identify its 
purpose, and, in the case of a request for a refund, must be received in 
the Copyright Office before the expiration of 60 days from the last day 
of the applicable Statement of Account filing period, or before the 
expiration of 60 days from the date of receipt at the Copyright Office 
of the royalty payment that is the subject of the request, whichever 
time period is longer. A request made by telephone or by telegraphic or 
similar unsigned communication, will be considered to meet this 
requirement if it clearly identifies the basis of the request, if it is 
received in the Copyright Office within the required 60-day period, and 
if a written request meeting all the conditions of this paragraph (j)(3) 
is also received in the Copyright Office within 14 days after the end of 
such 60-day period;
    (ii) The Statement of Account to which the request pertains must be 
sufficiently identified in the request (by inclusion of the name of the 
owner of the cable system, the community or communities served, and the 
accounting period in question) so that it can be readily located in the 
records of the Copyright Office;
    (iii) The request must contain a clear statement of the facts on 
which it is based and provide a clear basis on which a refund may be 
granted, in accordance with the following procedures:
    (A) In the case of a request filed under paragraph (j)(1)(i) of this 
section, where the information given in the Statement of Account is 
incorrect or incomplete, the request must clearly identify the erroneous 
or incomplete information and provide the correct or additional 
information;
    (B) In the case of a request filed under paragraph (j)(1)(ii) of 
this section, where the royalty fee was miscalculated and the amount 
deposited in the Copyright Office was either too high or too low, the 
request must be accompanied by an affidavit under the official seal of 
any officer authorized to administer oaths within the United

[[Page 371]]

States, or a statement in accordance with section 1746 of title 28 of 
the United States Code, made and signed in accordance with paragraph 
(e)(14) of this section. The affidavit or statement shall describe the 
reasons why the royalty fee was improperly calculated and include a 
detailed analysis of the proper royalty calculations;
    (C) In the case of a request filed under paragraph (j)(1)(iii) of 
this section, the request shall be identified as ``Transitional and 
Supplemental Royalty Fee Payment'' and include a detailed analysis of 
the proper royalty calculations;
    (iv)(A) All requests filed under this paragraph (j) (except those 
filed under subparagraph (1)(iii) of this paragraph must be accompanied 
by a filing fee in the amount of $15 for each Statement of Account 
involved. Payment of this fee may be in the form of a personal or 
company check, or of a certified check, cashier's check or money order, 
payable to: Register of Copyrights. No request will be processed until 
the appropriate filing fees are received.
    (B) All requests that a supplemental royalty fee payment be received 
for deposit under this paragraph (j), must be accompanied by a 
remittance in the full amount of such fee. Payment of the supplemental 
royalty fee must be in the form of a certified check, cashier's check, 
or money order, payable to: Register of Copyrights; or an electronic 
payment. No such request will be processed until an acceptable 
remittance in the full amount of the supplemental royalty fee has been 
received.
    (v) All requests submitted under this paragraph (j) must be signed 
by the cable system owner named in the Statement of Account, or the duly 
authorized agent of the owner, in accordance with paragraph (e)(14) of 
this section.
    (vi) A request for a refund is not necessary where the Licensing 
Division, during its examination of a Statement of Account or related 
document, discovers an error that has resulted in a royalty overpayment. 
In this case, the Licensing Division will forward the royalty refund to 
the cable system owner named in the Statement of Account without regard 
to the time limitations provided for in paragraph (j)(3)(i) of this 
section.
    (4) Following final processing, all requests submitted under this 
paragraph (j) will be filed with the original Statement of Account in 
the records of the Copyright Office. Nothing contained in this paragraph 
shall be considered to relieve cable systems from their full obligations 
under title 17 of the United States Code, and the filing of a correction 
or supplemental payment shall have only such effect as may be attributed 
to it by a court of competent jurisdiction.
    (k) Satellite carriers not eligible. Satellite carriers and 
satellite resale carriers are not eligible for the cable compulsory 
license based upon an interpretation of the whole of section 111 of 
title 17 of the United States Code. Any such entity who paid copyright 
royalties into the Copyright Office in an attempt to comply with 17 
U.S.C. 111 may obtain a refund of such royalties by submitting a written 
request to the Chief, Licensing Division, Copyright Office, Library of 
Congress, Washington DC 20557 no later than March 1, 1995.

(17 U.S.C. 111, 702, 708)

[43 FR 27832, June 27, 1978]

    Editorial Note: For Federal Register citations affecting 
Sec. 201.17, see the List of CFR Sections Affected in the Finding Aids 
section of this volume.