X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

OPINION & ORDER Plaintiff Music Choice (“Music Choice”) seeks review of a ruling by Karyn Temple Claggett, the Acting Register of Copyrights (the “Register”), issued in connection with a statutory license ratemaking proceeding held before the Copyright Royalty Board (the “Board”). Because the ruling is subject to review solely under the statutory review procedure provided for by 17 U.S.C. §803, which vests jurisdiction exclusively in the Court of Appeals for the D.C. Circuit, Music Choice’s Complaint must be dismissed.BACKGROUNDI. Statutory BackgroundThe Digital Performance Right in Sound Recordings Act of 1995 (“DPRA”), Pub. L. No. 104-39, creates a right “in the case of sound recordings, to perform the copyrighted work publicly by means of a digital audio transmission.” 17 U.S.C. §106(6).1 This limited performance right entitles the owner of a sound recording to paid in the event that a digital version of his or her recording is publicly transmitted. See id.Where a digital sound recording is transmitted to listeners pursuant to a subscription, such as “a cable system’s transmission of a digital audio service…available only to the paying customers of the cable system,” 2 Nimmer on Copyright §8.22 (2019) (quoting H. Rep. (DPRA), p. 27; S. Rep. (DPRA), p. 36)), that transmission is subject to a mandatory statutory licensing scheme, see 17 U.S.C. §114(d)(2); id. §114(f). The rates applicable to statutory licenses may be determined by mutual agreement of the affected parties, or, absent agreement, by the Board. Id.The Board consists of three Copyright Royalty Judges (“CRJs”) appointed by the Librarian of Congress. Id. §801; see also Indep. Producers Grp. v. Library of Cong., 759 F.3d 100, 102 (D.C. Cir. 2014) (describing the appointment and duties of CRJs). A ratemaking proceeding before the Board is essentially a multi-party administrative trial: Any party with a “significant” interest in the proceeding may participate and may file written statements and proposed findings of fact and conclusions of law supporting their request for a particular rate. 17 U.S.C. §803. CRJs “have full independence” in making decisions concerning rates, royalties, and petitions to participate in the proceedings before them. Id. §802(f)(1)(A).As a general matter, CRJs are permitted, but not required, to consult with the Register on “any matter other than a question of fact.” Id. However, if “a novel material question of substantive law concerning an interpretation” of the Copyright Act arises during the proceeding, then the CRJs must request a “decision of the Register of Copyrights, in writing, to resolve such novel question.” Id. §802(f)(l)(B)(i). “A ‘novel question of law’ is a question of law that has not been determined in prior decisions, determinations, and rulings described in section 803(a).” Id. §802(f)(l)(B)(ii). The Register must transmit her written ruling on the novel issue to the CRJs “within 30 days after the Register of Copyrights receives all of the briefs or comments of the participants.” Id. §802(f)(l)(B)(i). So long as the “decision is timely delivered to the [CRJs],” the CRJs are required to “apply the legal determinations embodied in the decision of the Register of Copyrights in resolving material questions of substantive law.” Id. The CRJs are also required to include the Register’s written decision in the record that accompanies their final determination. Id.II. Factual BackgroundMusic Choice, a New York City-based partnership, is a non-interactive digital music audio service that transmits audio channels to residential cable and satellite television subscribers as a component of the subscribers’ television service packages. (Compl.

 
Reprints & Licensing
Mentioned in a Law.com story?

License our industry-leading legal content to extend your thought leadership and build your brand.

More From ALM

With this subscription you will receive unlimited access to high quality, online, on-demand premium content from well-respected faculty in the legal industry. This is perfect for attorneys licensed in multiple jurisdictions or for attorneys that have fulfilled their CLE requirement but need to access resourceful information for their practice areas.
View Now
Our Team Account subscription service is for legal teams of four or more attorneys. Each attorney is granted unlimited access to high quality, on-demand premium content from well-respected faculty in the legal industry along with administrative access to easily manage CLE for the entire team.
View Now
Gain access to some of the most knowledgeable and experienced attorneys with our 2 bundle options! Our Compliance bundles are curated by CLE Counselors and include current legal topics and challenges within the industry. Our second option allows you to build your bundle and strategically select the content that pertains to your needs. Both options are priced the same.
View Now
November 27, 2024
London

Celebrating achievement, excellence, and innovation in the legal profession in the UK.


Learn More
December 02, 2024 - December 03, 2024
Scottsdale, AZ

Join the industry's top owners, investors, developers, brokers and financiers for the real estate healthcare event of the year!


Learn More
December 11, 2024
Las Vegas, NV

This event shines a spotlight on how individuals and firms are changing the investment advisory industry where it matters most.


Learn More

Experienced Insurance Defense Attorney.No in office requirement.Send resume to:


Apply Now ›

Role TitleAssociate General Counsel, Global EmploymentGrade F13Reporting ToSenior Legal Counsel, Global EmploymentProgram/Tool/ Department/U...


Apply Now ›

Ryan & Conlon, LLP, is a boutique firm specializing in insurance defense. We are a small eclectic practice with a busy and fast paced en...


Apply Now ›