Copyright Board Raises Satellite Radio Rates

On December 14, 2012, the Copyright Royalty Judges issued their Initial Determination setting rates and terms for the digital performance of sound recordings and the making of ephemeral recordings by preexisting subscription services (PSS) and preexisting satellite digital audio radio services (SDARs) under the statutory licenses set forth in Sections 112 and 114 of the Copyright Act for January 1, 2013, through December 31, 2017. Section 112 Rates: The Judges adopted the Parties’ Stipulation regarding the rates and terms for the Section 112 rates, which will require a minimum fee advance payment of $100,000 per year, with royalties accruing during the year recoupable against the advance. The parties agreed that the value of the royalties allocated to the Section 112 license holders is 5% of the total royalty obligation, with the remaining 95% going to the Section 114 license holders. Section 114 Rates: The Judges determined that the appropriate Section 114(f)(1) rates for Preexisting Subscription Services for 2013-2017 are 8% of Gross Revenues for 2013 and 8.5% for 2014 through 2017. The Judges determined that the appropriate Section 114(f)(1) rates for Preexisting Satellite Digital Audio Radio Services for 2013-2017 are 9% of Gross Revenues for 2013, 9.5% for 2014, 10.0% for 2015, 10.5% for 2016 and 11.0% for 2017. The parties have until December 19, 2012, to request redaction from the Initial Determination of any information governed by the Protective Order in effect in this proceeding. A public version of the full text of the Initial Determination will be made available upon redaction of protected information.