The Copyright Act establishes a process to ensure that TV broadcast stations are properly compensated when a video/cable system retransmits “performances” transmitted by the broadcaster. Under this process, copyright royalty fees are paid by the video/cable system operators to the Library of Congress’ Copyright Office. The Copyright Office then distributes the appropriate payments to the copyright holders.

In order to calculate the amount of the royalty fees that the video/cable system operators must pay, the Act requires video/cable system operators to semi-annually complete and file forms known as “Statements of Account.” These forms determine the amount of royalty fees that the operators owe to the Copyright Office at the time the forms are filed. Filing/payment dates are between January 1 and March 1 (which covers the time from July 1 through December 31) and between July 1 and August 29 (which covers from January 1 through June 30).

If an operator’s semiannual gross receipts for all tiers of service containing broadcast signals are below a certain threshold, the operator must use the Short Form Statement of Account. If the gross receipts are above the threshold, it must use the Long Form. JSI assists clients in preparing whichever form is applicable to their system. Because the calculation for the Long Form is much more complex, JSI has obtained specialized training from the Copyright Office, as well as software recommended by the Copyright Office, to assist clients in determining what the royalty fees would be if company had to complete the Long Form.

Because various factors related to stations carried as “distant signals” on video/cable systems significantly impact the amount of royalty fees owed when completing the Long Form, JSI also can provide clients with an estimated calculation of what the amount of royalty fees would be before they are required to complete the Long Form. By using this service, clients can take a pro-active approach in seeking to reduce the amount of copyright fees they will have to pay once they are required to complete the Long Form.

For more information, contact John Kuykendall (jkuykendall@jsitel.com) or John Becci (jbecci@jsitel.com) in JSI's Maryland office at 301-459-7590.