accorded Motion Picture Association of America, National Cable Television Association and Community Antenna Television Association the opportunity to review the questionnaire and to suggest additional questions. The questionnaire was then sent to all cable systems that had filed a statement of account with the Copyright Office and the Tribunal received 2,251 replies. Pursuant to the Tribunal's Notice, a statement on jurisdiction and legal questions was filed on May 1, 1980, by National Cable Television Association (NCTA). Economic and other studies were filed with the Tribunal on May 19, 1980, by NCTA and Copyright Owners, and each of these parties filed replies on June 2, 1980. No other parties responded to the Tribunal's Notice. Hearings were conducted by the Tribunal on September 29 through October 6, 1980, at which time Copyright Owners and NCTA presented their cases through their respective witnesses, The proceeding was in process at the end of the fiscal year. COMPULSORY LICENSE FOR MAKING AND DISTRIBUTING PHONORECORDS & The Tribunal's Notice of January 1, 1980 (45 FR 63) announced that the current proceeding would be conducted in accordance with the Tribunal's Rules of Procedure. The Tribunal directed parties to submit motions concerning jurisdictional or legal questions by March 3, 1980, and reply comments by March 20, 1980. The Tribunal further directed that economic or other studies be prepared in accordance with the Tribunal's Rules of Procedure, and scheduled submission of such studies by April 1, 1980, Finally, the Tribunal scheduled an evidentiary hearing to commence on April 28, 1980. In accordance with the Tribunal's Notice, NMPA and AGAC independently filed papers on March 3, 1980 describing the Tribunal's authority to express the statutory rate as a percentage of the price of phonorecords, or, alternatively, to index a flat cent royalty, determined de novo, to changes in the cost of living. On March 25, 1980 the Tribunal convened to hear oral argument on the jurisdictional issue. NMPA, AGAC and RIAA appeared. At the conference's close, the Chairman announced postponement of submission of economic and other studies to April 7, and of commencement of the evidentiary hearing to May 6. On March 27, 1980, the Tribunal denied RIAA's motion to declare "that any adjustment of the royalty rate established in 17 U.S.C. §115 (mechanical royalty) to provide for the fixing of the royalty rate as a percentage of the price of the phonorecord is beyond the jurisdiction of the Tribunal." The Tribunal further ruled to take and consider evidence on proposed percentage formulas for the mechanical royalty rate. In accordance with the Tribunal's directives, NMPA, AGAC, and RIAA submitted economic and other studies on April 7, 1980. The evidentiary hearings commenced and at the end of fiscal 1980 the hearings were still in process. COST OF LIVING ADJUSTMENT FOR NON-COMMERCIAL BROADCASTING In its final rule of June 8, 1979 (43 FR 25068) announcing the terms and rates of royalty payments to be paid by non-commercial broadcasting for the use of certain copyrighted works, the Tribunal included 14 a provision that on the first of August of each year, the Tribunal shall publish in the FEDERAL REGISTER a notice of the annual change in the cost of living, as determined by the Consumer Price Index. Such a notice was published on August 1, 1980 and the schedule of non-commercial broadcasting royalty rates was accordingly revised (44 FR 51197-8). DISTRIBUTION OF JUKEBOX ROYALTIES Pursuant to 17 U.S.C. 8116(c) the Tribunal was advised by the performing rights societies that a controversy did not exist as to the distribution of the 1978 royalty fund. Pursuant to said section distribution was made in pro rata shares as the performing right societies stipulated among themselves. STUDY IN AUDIO HOME TAPING The Tribunal in November, 1979 published the results of the first United States official survey of consumer practices and attitudes concerning the home taping of audio works. This survey was conducted as part of the Tribunal's examination of the copyright implications of the use of taping machines utilizing copyright materials. The release of the survey was accompanied by a report of the Tribunal's Home Taping Committee which stated: In addition to further refinement and development of 15 REPORT OF THE TRIBUNAL ON THE USE OF CERTAIN The Tribunal in January, 1980 transmitted to the Judiciary Committees of the United States Senate and House of Representatives its report and recommendations on the "Use Of Certain Copyrighted Works In Connection With Noncommercial Broadcasting." This report was presented in accordance with 37 CFR 304.14, the Tribunal's regulation adopted at the conclusion of its 1978 public broadcasting proceeding. The Tribunal's report reviewed the necessity for a public broadcasting copyright compulsory license for the performance of nondramatic musical works, the recording of nondramatic performances and displays of musical works, and the use of published pictorial, graphic and sculptural works. The report also considered the Tribunal's regulations concerning the record keeping and reporting by public broadcasting of the use of copyrighted materials subject to the statutory compulsory license found in 17 U.S.C. 118. The Tribunal concluded that "on the basis of its review of the experience with Section 118, the Tribunal concludes that the compulsory license is not necessary for the efficient operation of public broadcasting and thus constitutes an inappropriate interference with the traditional functioning of the copyright system and the artistic and economic freedom of those creators whose works are subject to its provisions." The Tribunal recommended that "the Congress reconsider the public broadcasting compulsory license at an appropriate time." - 16 EXPENDITURES AND FISCAL STATEMENT OF ACCOUNT The financial highlights of the Copyright Royalty Tribunal's third fiscal year of operations are as follows: Amount Allotted $471,000 Obligated Unobligated Allotment $9,804 The major expenditures were for administration, with the largest being for salaries and personnel benefits ($378,991), and rental space ($23,606). The three major hearings held by the Tribunal this fiscal year resulted in an increase in cost of hearings ($29,230). |