Digital Performace License Proceedings for XM Satellite Radio

On December 5, 2005, the Copyright Royalty Board of the Library of Congress has announced proceedings to determine rates and terms for ephemeral recording statutory licenses that would apply to subscription services for sound recordings on digital audio channels programmed by the licensee for transmission by a satellite television distribution service to residential customers, where the audio channels are bundled with television channels as part of a "basic" package of service and not for a separate fee.

A party who wishes to participate in the new rate proceeding must file its Petition to Participate, together with a filing fee of $150, by January 4, 2006. For further information, go to the Copyright Royalty Board website at http://www.loc.gov/crb/fedreg/2005/70fr72471.html

On October 31, 2005, the Copyright Royalty Board (“Board”) received from XM Satellite Radio, Inc. (“XM”), a Petition to Initiate and Schedule Proceeding for a New Type of Subscription Service pursuant to 17 U.S.C. 114(f)(2)(C). As explained in the Petition, commencing on or about November 15, 2005, DirecTV, Inc., (“DirecTV”), a provider of television service to residential consumers by satellite, would begin to include a number of music and non-music audio channels, supplied by XM in its program lineup. The XM channels will be “a part of the DirecTV basic package of service, without requiring payment of a separate subscription fee.” This new service would utilize the statutory copyright licenses provided in 17 U.S.C. 114(d)(2) (for performance by means of subscription digital audio transmission) and 17 U.S.C. 112(e) (for ephemeral recordings solely for use in those transmissions).