Page:Copyright Law Revision (Senate Report No. 94-473).djvu/156

 systems should be required under the Section 111 compulsory license to pay copyright royalties on sources of income other than the basic service of providing secondary transmissions, provided such income is not distorted to exclude significant sums of cable television revenues from inclusion within the payment requirements of section 111.

The sole purpose of the provision in section 801(b) is to authorize the Copyright Royalty Tribunal to propose an adjustment of the cable television royalty “basis” if changes in subscriber rates had the effect of sheltering from copyright payment significant revenues that are properly allocated to the basic cable subscription service.

It has been suggested that, if in the future cable television revenues are distorted, the appropriate course of action would be legislation to amend the copyright law. The Congress by now is well acquainted with the difficulties inherent in obtaining controversial piecemeal amendments of the copyright law. Consequently, the Committee in drafting this legislation has endeavored to provide procedures that will permit appropriate adjustments in the light of future developments. For example, this Committee has accepted the position of the cable television industry that the compulsory license should apply not only to the carriage of those broadcasting signals currently authorized by the Federal Communications Commission, but also to such additional signals as may be authorized in the future. For similar considerations, the Committee believes that the Copyright Royalty Tribunal should have the authority to propose a change in the “basis” of the cable television royalty schedule if such adjustment is necessary for the specific purpose intended by this language.

Petitions for the adjustment of royalty rates

Second 802(a) provides that on Jan. 1, 1980, the Register of Copyrights shall commence the proceedings for a review of the rates provided in sections 111, 115, and 116, and the rates established for the public broadcasting royalty schedule. This subsection requires that there be a review in 1980 of such royalty rates, and it is mandatory for the Register to commence such proceedings.

During calendar year 1990 and in each subsequent tenth calendar year, any owner or user of a copyrighted work whose royalty rates are initially specified by sections 111, 115 and 116, the public broadcasting rates, or as previously adjusted by the Tribunal, or the duly authorized agent of such user, may file a petition with the Register of Copyrights declaring that the petitioner requests an adjustment of the statutory royalty rate, or a rate previously established by the Tribunal. The Register shall make a determination as to whether the applicant has a significant interest in the royalty rate in which an adjustment is requested. If the Register determines that the petitioner has a significant interest, he shall cause notice of his decision to be published in the Federal Register.

At the expiration of the calendar year the Register shall make a determination as to whether an applicant has a significant interest in the royalty rate in which an adjustment is requested. If the Register determines that at least one petition has established a significant interest, he shall cause notice of his decision to be published in the Federal Register and proceed as provided in Section 803 for the