National Ass'n of Broadcasters v. Copyright Royalty Tribunal

772 F.2d 922, 249 U.S. App. D.C. 4
CourtCourt of Appeals for the D.C. Circuit
DecidedAugust 30, 1985
DocketNos. 84-1230, 84-1232 to 84-1234, 84-1238, 84-1396, 84-1398 to 84-1401, 84-1519, 84-1525, 84-1526, 84-1529 to 84-1531 and 84-1535
StatusPublished
Cited by5 cases

This text of 772 F.2d 922 (National Ass'n of Broadcasters v. Copyright Royalty Tribunal) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Ass'n of Broadcasters v. Copyright Royalty Tribunal, 772 F.2d 922, 249 U.S. App. D.C. 4 (D.C. Cir. 1985).

Opinion

STARR, Circuit Judge:

These two cases — one consisting of ten consolidated petitions for review, National Ass’n of Broadcasters v. Copyright Royalty Tribunal, C.A. Nos. 84-1230 et al., the other of seven consolidated petitions, Christian Broadcasting Network, Inc. v. Copyright Royalty Tribunal, C.A. Nos. 84-1519 et al.1—return us once again to the increasingly familiar terrain of copyright royalty awards made by the Copyright Royalty Tribunal (“CRT” or “Tribunal”), a government entity established by the 1976 Copyright Act, 17 U.S.C. §§ 101-810 (1982). These cases represent the court’s third foray in as many years into this hotly contested territory, characterized by lively competition for the ever increasing annual cache of royalty dollars for cable retransmission of copyrighted programs. For the reasons that follow, we uphold the decisions under challenge and accordingly deny the petitions for review.

I. Background

In view of our two prior decisions in appeals from royalty-distribution determinations by the Tribunal, see National Ass’n of Broadcasters (NAB) v. CRT, 675 [8]*8F.2d 367 (D.C.Cir.1982) (reviewing the Tribunal’s first distribution determination, for calendar year 1978); Christian Broadcasting Network, Inc. (CBN) v. CRT, 720 F.2d 1295 (D.C.Cir.1983) (reviewing the CRT’s second annual distribution, for calendar year 1979), it would serve little purpose to rehearse in detail the history of the establishment and operation of the Tribunal and the Royalty Fund. Suffice it to say that in determining the manner in which owners of copyrighted programs would be compensated for cable retransmission of their programming, Congress elected to require cable operators periodically to pay royalties into a central fund, from which the Tribunal distributes the allocated amounts to copyright owners-claimants in annual proceedings. The Copyright Act contemplates that claimants may settle their respective claims,2 but in each of the first five distributions to date a controversy has emerged requiring CRT resolution. With these consolidated cases, four of those five distributions have been appealed to this court.

At the outset, we observe what is common ground among the parties, namely that the nature of our review of CRT decisions is quite limited. A royalty determination is scarcely a typical agency adjudication. When claimants cannot agree among themselves on the appropriate distribution of the fund, they present their cases to the CRT, which resolves the dispute. Any particular royalty percentage established by the Tribunal is, moreover, doomed to be somewhat artificial; that is, it may well appear that it would have been as reasonable for the Tribunal to have fixed the percentage a little higher or a little lower. As we have previously suggested, mathematical exactitude in these matters appears well nigh impossible, NAB v. CRT, supra, 675 F.2d at 373; rough justice in dividing up the royalty pie seems to be the inevitable result of the process that Congress ordained.

In reviewing the Tribunal's determinations, the judicial task is not to weigh the evidence and fix what in our view would constitute appropriate percentages, for that would be to intrude into the function entrusted to the Tribunal. Our job, rather, is to determine whether the royalty awards are within a “zone of reasonablenesss”— not unreasonably high or unreasonably low — and that the CRT’s decision is neither arbitrary nor capricious, and is supported by substantial evidence. NAB v. CRT, supra, 675 F.2d at 371, 374-75.3

II. Appeals From 1979 Proceedings

As with the Tribunal’s first allocation (for calendar year 1978), much of the Tribunal’s 1979 allocation was appealed to this court in CBN v. CRT, supra, 720 F.2d 1295. The CRT’s allocation was upheld in all but three respects, namely, the Tribunal’s decision to award no portion of the Royalty Fund to three separate groups of claimants: (1) the Devotional Claimants,4 [9]*9(2) commercial radio broadcasters, and (3) television broadcasters for their contribution to the quality of sports telecasts. On remand, the CRT reconsidered those three non-awards. The Tribunal reaffirmed its decision to award nothing to commercial radio broadcasters and to television broadcasters for the latter's contribution to sports telecasts; however, the Tribunal altered the Devotionals’ zero award so as to grant them 0.35% of the total Royalty Fund. The award to the Devotionals and the reaffirmed non-award to commercial radio are now before us.

A. The Devotional Claimants’Award

The Devotionals contend that the record evidence demonstrates that their award should have been much higher than a measly 0.35%; in contrast, several petitioners, including the Motion Picture Association of America (“MPAA”) and the Public Broadcasting Service (“PBS”), claim that the Tribunal did not have before it evidence to support any award to this group of claimants. In the view of these challengers, the Tribunal was correct the first time around in awarding nothing to the Devotionals. Next, moving beyond the debate over zero versus something, both the Devotionals and their opponents join, albeit from quite different perspectives, in the claim that the Tribunal gave no indication as to how it arrived at the figure of 0.35%. Hence, the Tribunal is attacked from all sides for having, in effect, pulled a number out of the air.

In CBN v. CRT, supra, we identified several specific arguments and pieces of evidence that the CRT failed to address in making its non-award to the Devotional Claimants, thus rendering its decision arbitrary. 720 F.2d at 1309-12. On remand, the Tribunal addressed each of these points, and, as we will demonstrate, adequately responded to them.

(1)

First, we criticized the Tribunal for having failed to analyze the possible benefits that cable operators might enjoy by carrying the Devotionals’ programs. In establishing appropriate royalty percentages, the CRT considered as a major criterion the benefit of the programming to cable systems, yet the Tribunal had not even discussed this criterion in reaching its 1979 decision on the Devotionals. We stated that evidence of record did exist, that the CRT was obliged to address, of benefit to cable systems. Id. at 1310.

On remand, the Tribunal stated that “some evidence” supported the proposition that devotional programming was of benefit to cable systems, but that “none of this evidence, in our view, significantly bolsters the devotional claims on the benefit standard, or can remotely be deemed similar to that which we have found to be supportive of the case of sports claimants.”5 49 Fed. Reg. 20,049, J.A. at 2210 (footnote omitted). The CRT thus concluded that the record did not support a finding that cable operators welcomed the inclusion of devotional programs on distant signals to balance the carriage of non-religious programs. Id.

The Devotionals now claim that CRT’s decision in this respect is conclusory, totally devoid of analysis as to why the Devotionals’ evidence did not prove benefit. We disagree. In support of its conclusion, the CRT relied upon the analysis of the Devotional Claimants’ evidence set forth in the Settling Parties’ Proposed Findings at 28-29, J.A.

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772 F.2d 922, 249 U.S. App. D.C. 4, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-assn-of-broadcasters-v-copyright-royalty-tribunal-cadc-1985.