Copyright Royalty Board Sets Cost of Living Adjustments in Certain Royalty Rates for Educational Institutions and Satellite Carriers | Practical Law

Copyright Royalty Board Sets Cost of Living Adjustments in Certain Royalty Rates for Educational Institutions and Satellite Carriers | Practical Law

The Copyright Royalty Board issued two final rules announcing cost of living adjustments in the royalty rates that (1) educational institutions pay for performance of published nondramatic musical compositions in the SESAC repertory for the noncommercial broadcasting statutory license and (2) satellite carriers pay for a compulsory license.

Copyright Royalty Board Sets Cost of Living Adjustments in Certain Royalty Rates for Educational Institutions and Satellite Carriers

by Practical Law Intellectual Property & Technology
Published on 27 Nov 2013 • USA (National/Federal)
The Copyright Royalty Board issued two final rules announcing cost of living adjustments in the royalty rates that (1) educational institutions pay for performance of published nondramatic musical compositions in the SESAC repertory for the noncommercial broadcasting statutory license and (2) satellite carriers pay for a compulsory license.
On November 27, 2013, the Copyright Royalty Board announced two final rules for cost of living adjustments (COLA) for the royalty rates paid by:
  • Colleges, universities and other educational institutions (not affiliated with National Public Radio) for using published nondramatic musical compositions in the SESAC repertory under the noncommercial broadcasting statutory license of the Copyright Act.
  • Satellite carriers for compulsory licenses under the Copyright Act.
The final rule setting the COLA for educational institutions' performance of certain musical composition will go into effect 30 days after publication in the Federal Register (78 FR 71501-01 (Nov. 29, 2013)). The Copyright Royalty Judges announced that the COLA will be 2%. Applying the 2% COLA to the current rate for the performance of published nondramatic musical compositions in the SESAC repertory ($140 per station) results in an adjusted rate of $143 per station.
The final rule setting the COLA for satellite carrier compulsory license royalty rates will go into effect on January 1, 2014 and apply from January 1, 2014 through December 31, 2014 (78 FR 71501-02 (Nov. 29, 2013)). The Copyright Royalty Judges announced that the COLA will be 1%, based on the change in the Consumer Price Index from October 2012 to October 2013. Applying the COLA to current rates will have the following results, both rounded to the nearest cent:
  • For the secondary transmission of broadcast stations by satellite carriers for private home viewing, the current rate of $0.27 per subscriber per month will remain the same.
  • For viewing in commercial establishments, the current rate of $0.54 per subscriber per month results in an adjusted rate of $0.55 per subscriber per month.