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Copyright Office Issues Interim Regulations On Information Webcasters Must Maintain When They Use Statutory Licenses to Broadcast Music Over the Internet
[July 2004]

This Spring, the Copyright Office again moved to clarify the obligations of webcasters that use statutory licenses to transmit music. These licenses were made a part of the Copyright Act several years ago, first through the Digital Performance Right in Sound Recordings Act (1995) and later the Digital Millennium Copyright Act (1998). Since then, many of the issues surrounding these licenses have been resolved by the Copyright Office and courts. For example, in the Fall of 2003, the United States Court of Appeals for the Third Circuit affirmed the Copyright Office’s ruling that AM and FM radio stations must obtain these statutory licenses for the simultaneous internet streaming of their broadcast signals.

Until now, however, it was not clear what type of information they must maintain about their transmissions. Record companies, who distribute a portion of the statutory license fees to recording artists, sought extensive information requirements. But webcasters argued that onerous recordkeeping requirements would make it impossible for them to use the licenses. The Copyright Office responded with “interim” regulations that, in essence, require periodic monitoring and reporting by the webcasters. Specifically, for two weeks each calendar year, webcasters must log the following information:

(1) name of the webcaster
(2) its transmission category (e.g., music)
(3) name of featured artist
(4) sound recording title
(5) sound recording identification (such as the album title)
(6) total number of performances of each sound recording

Notice and Recordkeeping for Use of Sound Recordings Under Statutory License, Copyright Office, Library of Congress, 69 Federal Register 11515 (March 11, 2004).

Of course, these are “interim” regulations, and the rules may change after further review. Moreover, even if the Copyright Office does not substantially change the regulations, several important issue surrounding these licenses remain unresolved. One of the most important is the extent of recordkeeping that will be required for webcasters’ use of the licenses from October 1998, when the licenses went into effect, and April 2004, when these interim regulations went into effect.

For the full text of the Copyright Office Regulations, please follow the link:

www.copyright.gov/fedreg/2004/69fr11515.pdf

For more information, please contact:

Jeffrey H. Blum Los Angeles, CA (213) 633-6830 jeffblum@dwt.com

This Advisory is a publication of the Music Law Group of Davis Wright Tremaine LLP. Our purpose in publishing this Advisory is to inform our clients and friends of recent developments in the music industry. It is not intended, nor should it be used, as a substitute for specific legal advice as legal counsel may be given only in response to inquiries regarding particular situations.

Copyright © 2004, Davis Wright Tremaine LLP.

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