10 Jan 2025

📜Ruling Clarifies Gross Proceeds for Business Establishments

Ruling on Regulatory Interpretation for Business Establishment Services

Summary

The Copyright Royalty Judges publish their ruling on regulatory interpretation in a matter that was referred to them by the United States District Court for the District of Columbia. The regulation at issue is the definition of "Gross Proceeds" in the rates and terms set forth through settlements in the BES I and BES II proceedings in 37 CFR 384.3(a), which is used when calculating royalty payments paid to SoundExchange, a collective for copyright owners, in relation to digital transmissions of sound recordings pursuant to the statutory license in 17 U.S.C. 112.

Agencies

  • Library of Congress
  • Copyright Royalty Board

Business Impact ?

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The ruling directly affects Business Establishment Service (BES) providers by clarifying the definition of "Gross Proceeds" used to calculate royalty payments. This may significantly alter financial obligations under the statutory license for sound recordings, impacting business operations and profitability.

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