parties to participate.^3223 Sirius Satellite Radio, Inc. (“Sirius”), XM, MTV Networks (“MTV”),
and SoundExchange, Inc petitioned to participate, and the parties reached a settlement, with the
proposed rates and terms filed on Oct. 30, 2007.^3224 On Nov. 9, 2007, the CRB published a
Notice of Proposed Rulemaking requesting comment on the proposed rates and terms submitted
to the CRB, and adopted the proposed rates and terms in its final regulations on Dec. 20,
2007.^3225
The final rates for stand-alone contracts^3226 are the greater of 15% of revenue, or the
following monthly minimum payment per subscriber:
$0.0075 from inception through 2006
$0.0075 for 2007
$0.0075 for 2008
$0.0125 for 2009
$0.0150 for 2010For bundled contracts,^3227 the final rates are the greater of 15% of revenue allocated to reflect the
objective value of the licensee's service, or the following monthly minimum payment per
subscriber:
$0.0220 from inception through 2006
$0.0220 for 2007
$0.0220 for 2008
$0.0220 for 2009
$0.0250 for 2010These rates also include a minimum, non-refundable, annual fee of $100,000, credited against
royalties due in that year. The CRB ruled that these rates were inclusive of the Section 112
ephemeral license, but declined to ascribe any particular percentage of the Section 114 royalty as
representative of the value of the Section 112 license.^3228
As mentioned above in the section on preexisting subscription services, the Register of
Copyrights issued a determination on Feb. 19, 2008 that stated that the CRB had committed clear
legal error by failing to set separate values for the Section 112 and Section 114 licenses, and
(^3223) 70 Fed. Reg. 72471 (Dec. 05, 2005).
(^3224) 72 Fed. Reg. 72253 (Dec. 20, 2007).
(^3225) Id.
(^3226) “Stand-alone contracts” mean contracts between the licensee and a cable or satellite television provider in
which the service is the only content licensed by the licensee to the provider. See 72 Fed. Reg. 72253, 72255
(Dec. 20, 2007).
(^3227) “Bundled contracts” mean contracts between the licensee and a cable or satellite television provider in which
the service is not the only content licensed by the licensee to the provider. 72 Fed. Reg. 72253, 72255 (Dec. 20,
2007).
(^3228) Id.