In May 2010, Congress passed the Satellite Television Extension and Localism Act of 2010 (‘‘STELA’’), Public Law 111–175, 124 Stat. 1218, which reauthorized the Section 119 statutory license that allows satellite carriers to retransmit television programs that are embodied in distant broadcast transmissions.  In addition, STELA made certain amendments to the Section 119 license and a second statutory license, set forth in Section 111 of title 17 of the United States Code, that allows cable systems to retransmit television and radio programs that are embodied in local and distant broadcast transmissions.

A significant change to the law is the addition of new provisions directing the Register of Copyrights to develop procedures for the verification of the Statements of Account and royalty fees that cable operators and satellite carriers deposit with the Copyright Office under Sections 111 and 119.  Specifically, Section 119(b)(2) directs the Register to ‘‘issue regulations to permit interested parties to verify and audit the statements of account and royalty fees submitted by satellite carriers under [that] subsection.’’  Similarly, Section 111(d)(6) directs the Register to ‘‘issue regulations to provide for the confidential verification by copyright owners whose works were embodied in the secondary transmissions of primary transmissions pursuant to [section 111] of the information reported on the semiannual statements of account filed under this subsection for accounting periods beginning on or after January 1, 2010, in order that the auditor designated under subparagraph [111(d)(6)(A)] is able to confirm the correctness of the calculations and royalty payments reported therein.’’

On June 14, 2012, the Office initiated a rulemaking proceeding to adopt new regulations for this purpose.