Page:H.R. Rep. No. 94-1476 (1976) Page 011.djvu

 ::(B) except in the case of a cable system whose royalty is specified in statement, computed on the basis of specified percentages of the gross receipts from subscribes to the cable service during said period for the basic service of providing secondary transmissions of primary broadcast transmitters, as follows:


 * (i) 0.675 of 1 per centum of such gross receipts for the privilege of further transmitting any nonnetwork programing of a primary transmitter in whole or in part beyond the local service area of such primary transmitter, such amount to be applied against the fee, if any, payable pursuant to paragraphs (ii) through (iv);


 * (ii) 0.675 of 1 per centum of such gross receipts for the first distant signal equivalent;


 * (iii) 0.425 of 1 per centum of such gross receipts for each of the second, third, and fourth distant signal equivalents;


 * (iv) 0.2 of 1 per centum of such gross receipts for the fifth distant signal equivalent and each additional distant signal equivalent thereafter; and


 * in computing the amounts payable under paragraphs (ii) through (iv), above, any fraction of a distant signal equivalent shall be computed at its fractional value and, in the case of any cable system located partly within and partly without the local service area of a primary transmitter, gross receipts shall be limited to those gross receipts derived from subscribers located without the local service area of such primary transmitter;


 * (C) if the actual gross receipts paid by subscribers to a cable system for the period covered by the statement for the basic service of providing secondary transmissions of primary broadcast transmitters total less than $80,000, gross receipts of the cable system for the purpoe of this subclause shall be computed by subtracting from such actual gross receipts the amount by which $80 000 exceeds such actual gross receipts, except that in no case shall a cable system’s gross receipts be reduced to less than $3,000. The royalty fee payable under this subclause shall be 0.5 of 1 per centum, regardless of the number of distant signal equivalents, if any; and


 * (D) if the actual gross receipts paid by subscribers to a cable system for the period covered by the statement, for the basic service of providing secondary transmissions of primary broadcast transmitters, are more than $80,000 but less than $160,000, the royalty fee payable under this subclause shall be (i) 0.5 of 1 per centum of any gross receipts in excess of $80,000; and (ii) 1 per centum, of any gross receipts in excess of $80,000 but less than $160,000, regardless of the number of distant signal equivalents, if any.


 * (3) The Register of Copyrights shall receive all fees deposited under this section and, after deducting the reasonable costs incurred by the Copyright Office under this section, shall deposit the balance in the Treasury of the United States, in such manner as the Secretary of the Treasury directs, for later distribution by the Copyright Royalty Commission as provided by this title. The Register shall submit to the Copyright Royalty Commission, on a semiannual basis, a compilation of all statements of account covering the relevant six-month period provided by clause (2) of this subsection.


 * (4) The royalty fees thus deposited shall, in accordance with the procedures provided by clause (5), be distributed to those among the following copyright owners who claim that their works were the subject of secondary transmissions by cable systems during the relevant semiannual period:


 * (A) any such owner whose work was included in a secondary transmission made by a cable system of a nonnetwork television program in whole or in part beyond the local service area of the primary transmitter; and


 * (B) any such owner whose work was included in a secondary transmission identified in a special statement of account deposited under clause (2)(A); and


 * (C) any such owner whose work was included in nonnetwork programing exclusively of aural signals carried by a cable system in whole or in part beyond the local service area of the primary transmitter of such programs.


 * (5) The royalty fees thus deposited shall be distributed in accordance with the following procedures:


 * (A) During the month of July in each year, every person claiming to be entitled to compulsory license fees for secondary transmissions shall file a claim with the Copyright Royalty Commission, in accordance with requirements that the Commission shall prescribe by regulation. Notwithstanding