National Ass'n of Broadcasters v. Librarian of Congress

146 F.3d 907, 330 U.S. App. D.C. 394, 47 U.S.P.Q. 2d (BNA) 1385, 12 Communications Reg. (P&F) 1206, 1998 U.S. App. LEXIS 13692, 1998 WL 336513
CourtCourt of Appeals for the D.C. Circuit
DecidedJune 26, 1998
DocketNos. 96-1449, 96-1450 and 96-1451
StatusPublished
Cited by9 cases

This text of 146 F.3d 907 (National Ass'n of Broadcasters v. Librarian of Congress) 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. Librarian of Congress, 146 F.3d 907, 330 U.S. App. D.C. 394, 47 U.S.P.Q. 2d (BNA) 1385, 12 Communications Reg. (P&F) 1206, 1998 U.S. App. LEXIS 13692, 1998 WL 336513 (D.C. Cir. 1998).

Opinion

KAREN LECRAFT HENDERSON, Circuit Judge:

A cable television system must pay royalty fees to the Register of Copyrights (Register) in exchange for the privilege of retransmitting to its subscribers certain copyrighted programming. See 17 U.S.C. § 111(d). The Librarian of Congress (Librarian) then distributes the collected royalties to the copyright owners. Id. § 111(d)(4). In Phase I of the distribution process, royalties are apportioned among eight classes of claimants. See Distribution of 1990, 1991 and 1992 Cable Royalties, 61 Fed.Reg. 55,653, 55,655 (1996) (hereinafter Librarian Decision). In Phase II awards are made to individual copyright owners within each of the classes. Id. If at either stage a controversy arises regarding the appropriate disposition of all or a portion of the royalties, the Librarian convenes a Copyright Arbitration Royalty Panel to propose a settlement. See 17 U.S.C. § 111(d)(4)(B); Majority Report of the Copyright Arbitration Royalty Panel (5/31/96) (hereinafter Panel Report). The panel’s proposal is then forwarded to the Librarian, who, on the recommendation of the Register, adopts it or rejects it (in whole or in part) and distributes the disputed royalties accordingly. 17 U.S.C. § 802(f).

Each of the petitioners here is a disappointed class claimant challenging the Librarian’s Phase I distribution of royalties collected for the years 1990, 1991 and 1992. Because our review of the Librarian’s decision is limited, and because on our limited review none of the petitioners has established a basis to alter or modify its royalty award, we reject their challenges and affirm the Librarian.

I. BACKGROUND

In 1974 the Supreme Court ruled that a cable television system’s retransmission of non-network copyrighted programing to markets distant front those to which it was originally broadcast was not a “performance” under the Copyright Act of 1909, 17 U.S.C. §§ 1 et seq., (hereinafter 1909 Act) and therefore an action for copyright infringement did not lie against the cable system. See Teleprompter Corp. v. CBS, 415 U.S. 394, 94 S.Ct. 1129, 39 L.Ed.2d 415 (1974); cf. Fortnightly Corp. v. United Artists Television, Inc., 392 U.S. 390, 88 S.Ct. 2084, 20 L.Ed.2d 1176 (1968) (retransmission of non-network copyrighted programming to local markets did not give rise to infringement liability under 1909 Act). While it recognized the adverse effect the retransmissions could have on copyright owners, the Supreme Court concluded that “[djetailed regulation of these relationships [between cable operators and copyright owners], and any ultimate resolution of the many sensitive and important problems in this field, must be left to Congress.” Teleprompter, 415 U.S. at 414, 94 S.Ct. 1129; accord Fortnightly, 392 U.S. at 401, 88 S.Ct. 2084 (“We have been invited ... to render a compromise decision in this case that would, it is said, accommodate the various competing considerations of copyright, communications, and antitrust policy. We decline the invitation. That job is for Congress.”).

[911]*911 A The Evolving Statutory Framework

In response to the Fortnightly and Teleprompter decisions, and having struggled with the matter since 1965, the Ninety-Fourth Congress enacted legislation to address the retransmission royalty problem. See The Copyright Act of 1976, Pub.L. No. 94-553 (codified as amended at 17 U.S.C. §§ 101 ei seq.) (hereinafter 1976 Act); see also H.R.Rep. No.94-1476, at 89 (1976), U.S. Code Cong. & Admin. News at 5659, 5703-5704 (“The difficult problem of determining the copyright liability of cable television systems has been before the Congress since 1965.”) (hereinafter 1976 House Report). The 1976 Act permitted recovery of royalties for non-network programming retransmitted to distant markets but not for other types of retransmitted programming:

The Committee determined ... that there was no evidence that the retransmission of “local” broadcast signals [to the same markets served by the local broadcasters] threatens the existing market for copyright program owners. Similarly, the retransmission of network programming, including network programming which is broadcast in “distant” markets, does not injure the copyright owner. The copyright owner contracts with the network on the basis of his programming reaching all markets served by the network and is compensated accordingly.
By contrast, their [sic] transmission of distant non-network programming by cable systems causes damage to the copyright owner by distributing the program in an area beyond which it has been licensed. Such retransmission adversely affects the ability of the copyright owner to exploit the work in the distant market. It is also of direct benefit to the cable system by enhancing its ability to attract subscribers and increase revenues. For these reasons, the Committee has concluded that the copyright liability of cable television systems under the compulsory license should be limited to the retransmission of distant non-network programming.

1976 House Report at 90, U.S. Code Cong. & Admin. News at 5704-5705; accord National Ass’n of Broadcasters v. Copyright Royalty Tribunal, 675 F.2d 367, 373 (D.C.Cir.1982) (“The Act therefore was not intended to compensate network broadcasts or even local broadcasters whose programs are retransmitted locally by a cable system in the same area”) (hereinafter NAB J); Christian Broadcasting Network, Inc. v. Copyright Royalty Tribunal, 720 F.2d 1295, 1303 (D.C.Cir.1983) (similar) (hereinafter CBN).

Because the Congress believed “that it would be impractical and unduly burdensome to require every cable system to negotiate with every copyright owner whose work was transmitted by a cable system,” 1976 House Report at 89, it established a centralized process for the collection and payment of royalties. See National Broadcasting Co. v. Copyright Royalty Tribunal, 848 F.2d 1289, 1291 (D.C.Cir.1988) (“The purpose of this regulatory structure is to facilitate the exploitation of copyrighted materials by removing the prohibitive transaction costs that would attend direct negotiations between cable operators and copyright holders, while at the same time assuring copyright holders compensation for the use of their property.”) (hereinafter NBC). To administer the process, the Congress established the Copyright Royalty Tribunal (Tribunal) and authorized it to periodically adjust royalty rates and distribute collected royalties. See 17 U.S.C. §§ 111(d), 801-810 (1976).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
146 F.3d 907, 330 U.S. App. D.C. 394, 47 U.S.P.Q. 2d (BNA) 1385, 12 Communications Reg. (P&F) 1206, 1998 U.S. App. LEXIS 13692, 1998 WL 336513, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-assn-of-broadcasters-v-librarian-of-congress-cadc-1998.