[Code of Federal Regulations]
[Title 37, Volume 1]
[Revised as of July 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 37CFR256.2]

[Page 585-586]
 
              TITLE 37--PATENTS, TRADEMARKS, AND COPYRIGHTS
 
                                CONGRESS
 
PART 256--ADJUSTMENT OF ROYALTY FEE FOR CABLE COMPULSORY LICENSE--Table of Contents
 
Sec. 256.2  Royalty fee for compulsory license for secondary transmission by cable systems.

    (a) Commencing with the second semiannual accounting period of 2000 
and for each semiannual accounting period thereafter, the royalty rates 
established by 17 U.S.C. 111(d)(1)(B) shall be as follows:
    (1) .956 of 1 per centum of such gross receipts for the privilege of 
further transmitting any nonnetwork programming of a primary transmitter 
in whole or in part beyond the local service area of such primary 
transmitter, such amount to be applied against the fees, if any, payable 
pursuant to paragraphs (a) (2) through (4) and (c);
    (2) .956 of 1 per centum of such gross receipts for the first 
distant signal equivalent;
    (3) .630 of 1 per centum of such gross receipts for each of the 
second, third and fourth distant signal equivalents; and
    (4) .296 of 1 per centum of such gross receipts for the fifth 
distant signal equivalent and each additional distant signal equivalent 
thereafter.
    (b) Commencing with the second semiannual accounting period of 2000 
and for each semiannual accounting period thereafter, the gross receipts 
limitations established by 17 U.S.C. 111(d)(1) (C) and (D) shall be 
adjusted as follows:
    (1) If the actual gross receipts paid by subscribers to a cable 
system for the period covered by the statement for the basic service of 
providing secondary transmission of primary broadcast transmitters total 
$189,800 or less, gross receipts of the cable system for the purpose of 
this paragraph shall be computed by subtracting from such actual gross 
receipts the amount by which $189,800 exceeds such actual gross 
receipts, except that in no case shall a cable system's gross receipts 
be reduced to less than $7,400. The royalty fee payable under this 
paragraph shall be 0.5 of 1 per centum regardless of the number of 
distant signal equivalents, if any; and
    (2) If the actual gross receipts paid by the subscribers to a cable 
system for the period covered by the statement, for the basic service of 
providing secondary transmissions of primary broadcast transmitters, are 
more than $189,800 but less than $379,600, the royalty fee payable under 
this paragraph shall be:
    (i) 0.5 of 1 per centum of any gross receipts up to $189,800 and

[[Page 586]]

    (ii) 1 per centum of any gross receipts in excess of $189,800 but 
less than $379,600, regardless of the number of distant signal 
equivalents, if any.
    (c) Notwithstanding paragraphs (a) and (d) of this section, 
commencing with the first accounting period of 1983 and for each 
semiannual accounting period thereafter, for each distant signal 
equivalent or fraction thereof not represented by the carriage of:
    (1) Any signal which was permitted (or, in the case of cable systems 
commencing operations after June 24, 1981, which would have been 
permitted) under the rules and regulations of the Federal Communications 
Commission in effect on June 24, 1981, or
    (2) A signal of the same type (that is, independent, network, or 
non-commercial educational) substituted for such permitted signal, or
    (3) A signal which was carried pursuant to an individual waiver of 
the rules and regulations of the Federal Communications Commission, as 
such rules were in effect on June 24, 1981;

the royalty rate shall be, in lieu of the royalty rates specified in 
paragraphs (a) (2) through (4) and (d) of this section, 3.75 per centum 
of the gross receipts of the cable systems for each distant signal 
equivalent; any fraction of a distant signal equivalent shall be 
computed at its fractional value.
    (d) Commencing with the first semiannual accounting period of 1990 
and for each semiannual accounting period thereafter, in the case of a 
cable system located outside the 35-mile specified zone of a commercial 
VHF station that places a predicted Grade B contour, in whole or in 
part, over the cable system, and that is not significantly viewed or 
otherwise exempt from the FCC's syndicated exclusivity rules in effect 
on June 24, 1981, for each distant signal equivalent or fraction thereof 
represented by the carriage of such commercial VHF station, the royalty 
rate shall be, in addition to the amount specified in paragraph (a) of 
this section,
    (1) For cable systems located wholly or in part within a top 50 
television market,
    (i) .599 per centum of such gross receipts for the first distant 
signal equivalent;
    (ii) .377 per centum of such gross receipts for each of the second, 
third, and fourth distant signal equivalents; and
    (iii) .178 per centum of such gross receipts for the fifth distant 
signal equivalent and each additional distant signal equivalent 
thereafter;
    (2) For cable systems located wholly or in part within a second 50 
television market,
    (i) .300 per centum of such gross receipts for the first distant 
signal equivalent;
    (ii) .189 per centum of such gross receipts for each of the second, 
third, and fourth distant signal equivalents; and
    (iii) .089 per centum of such gross receipts for the fifth distant 
signal equivalent and each additional distant signal equivalent 
thereafter;
    (3) For purposes of this section top 50 television markets and 
``second 50 television markets'' shall be defined as the comparable 
terms are defined or interpreted in accordance with 47 CFR 76.51, as 
effective June 24, 1981.

[47 FR 52159, Nov. 19, 1982, as amended at 50 FR 18481, May 1, 1985; 54 
FR 12619, Mar. 28, 1989; 55 FR 33613, Aug. 16, 1990; 56 FR 12122, Mar. 
22, 1991. Redesignated at 59 FR 23993, May 9, 1994, as amended at 63 FR 
30636, June 5, 1998; 63 FR 39739, July 24, 1998; 65 FR 39820, June 28, 
2000; 65 FR 64623, Oct. 30, 2000]