getting started > account info > revenues > fees > certification > interest >...

Getting Started > Account Info > Revenues > Fees > Certification > Interest > Contact

A Complete Guide toCable Statements of Account

A Tutorial for Form SA 1-2

WELCOME


What is the statutory licensefor cable systems?

• The Section 111 license permits a cable operator to retransmit both local and distant

radio and television signals to its subscribers who pay a fee for such service.

• The purpose of Section 111 is to permit cable systems to carry distant broadcast

signals while compensating copyright owners for the public performance of their works,

without the transaction costs associated with marketplace negotiations for the carriage

of copyrighted programs.

• Section 111 allows cable operators to complement the carriage of local broadcast

signals with distant signal programming that is generally unavailable in local markets.


What are the conditions for using the statutory license?

To be eligible to use the section 111 license, cable systems must

– file statement of account (SOA) forms with the Copyright Office and pay

royalty and filing fees every six months

– not add or delete any content carried on distant broadcast signals

– carry signals in compliance with the rules and regulations of the Federal

Communications Commission (FCC)

– retransmit content simultaneously with actual broadcasts

What is a cable system?

The Copyright Office defines an individual cable system as a cable system recognized

as a distinct entity under the rules, regulations, and practices of the FCC. In addition,

two or more cable facilities are considered as one individual cable system if

– the facilities are in contiguous communities and are under common

ownership or control; or

– the facilities operate from one headend. Thus, even if two cable facilities

are owned by different entities, they will be considered as one individual

cable system if they share a common headend.



Why file an SOA?

• Copyright law requires a cable system to file SOAs

– to show the criteria for the semiannual royalty and filing fees the cable

system owes under its statutory license; and

– to report the information needed to allocate royalty fees among copyright

owners.

• SOAs are official documents. Cable systems must certify that the information they

contain is true and accurate. Copyright licensing examiners cannot change or modify

an original SOA.

• All information in an SOA must accurately represent the facts as they existed during

the accounting period covered by the statement (or, in certain cases, on the last day

of that period).

Can SOAs be amended?

Subject to procedures and time limits set forth in the Code of Federal Regulations,

cable operators can file amendments to SOAs if

– any of the information given in an SOA was incorrect or incomplete; or

– the calculation of the royalty or filing fees payable for a particular accounting

period was incorrect, and the amount deposited with the Copyright Office for

that period was either too high or too low.

In such instances, corrections to SOAs will be placed on record, and supplemental

royalty fee payments will be received for deposit or refunds will be issued according to

Copyright Office regulations.

What does the licensing examiner do?

• The licensing examiner analyzes the SOA form to determine whether

– the SOA was prepared according to the rules and regulations of the

Copyright Office;

– the correct royalty and filing fees have been paid; and

– the statutory time limits for filing have been met.

• If an examiner discovers missing, unverifiable, or questionable information, or an

incorrectly calculated royalty, the examiner will call or write the cable system.


Carefully review and verify information before submitting the SOA form. Interest accrues on underpayments and late payments.


If August 29 or March 1 falls on a weekend or a federal holiday, SOAs and royalty fees can be filed on the following business day.

When to file?

• Cable systems have 60 days after the close of each accounting period in which

to file SOAs and pay filing and royalty fees. Here are the two filing dates:

– For the January–June accounting period: File between July 1

and August 29, inclusive;

– For the July–December accounting period: File between January 1

and March 1, inclusive.

• If you are filing for past accounting periods, please contact the

Licensing Division at (202) 707-8150 or [email protected]

Where to file?

You can mail or hand-carry your submission to room LM-401 at this address:

Library of Congress

James Madison Memorial Building

Copyright Office - LD

101 Independence Avenue SE

Washington, DC 20557-6400


For further information, call (202) 707-8150 or visit www.copyright.gov/mail.html.

How to complete the SA 1-2 form

• Use the SA 1-2 form when the cable television system’s semiannual gross receipts

are less than $527,600.

• A licensing examiner will verify all information.


Filing Fee

Effective January 1, 2014, pursuant to the Satellite Television Extension and Localism Act of 2010 (STELA), which granted authority to the Copyright Office to establish fees for the filing of statements of account (SOAs) under the section 111, 119, and 122 statutory licenses, the Office now assesses filing fees for ALL SOAs for current, past and future accounting periods. Licensing Division filing fees:

Cable SA-1: $15

Cable SA-2: $20

For details, see the Federal Register, November 29, 2013 (78 FR 71498). Please be advised that the filing fee is deducted before the royalty payment is credited; thus the omission of the appropriate filing fee will result in an underpayment of royalty fees. Please remit the royalty fee and filing fee in one EFT payment.


Section A: Accounting period

Clearly designate the accounting period.

Make sure to indicate the correct accounting periodin this space.

All addresses must be completed.


Section B: Owner

Give the full name and address of the legal owner.

Important: You must verify the identification of the cable system.


Section C: System

Give any business name used to identify the business or operation of the system.

Important: You must verify the existence of communities and the spelling of community names.


Section D: Area served

List the name of the community or communities served by the system.

Important: The number of subscribers and the rate must be listed in the appropriate columns.

Subscribers and rates

Section E: Secondary transmission service

Give the correct number of subscribers and charges per subscriber.

Add more servicesin block 2.


Rates


Section F: Services other than secondary transmissions

• List rates and describe each package of service that consists solely of services other

than secondary transmissions.

• Give rate (not subscriber) information for all cable system services not covered in

section E.

• Do not give rate information for

– services furnished at cost; or

– services or facilities furnished to nonsubscribers. Rate information should

include both the amount of the charge and the unit in which it is usually

billed. If any rates are charged on a variable per-program basis, enter only

the letters "PP” in the rate column.

Section F: continued

Important: Make sure the number of subscribersand the rate are listed in the appropriate columns.


Television

Section G: Primary transmitters

List all network, independent, and educational stations and multicast streams carried

by the cable system.


Check the call sign, channel number,type, and location of station.

Radio

Section H: Primary transmitters

Identify primary radio transmitters whose signals were carried by the cable system during the period.


Special statement and program log

Section I: Substitute carriage

Give the names and titles of the substitute or part-time carriage programs.


Columns 1–7 must be completed if you check “yes” to indicate thatthe cable system carried on a substitute basis any nonnetworktelevision program by a distant station.

Section K: Gross receipts

Check that the amount of gross receipts entered is less than $527,600.


Section L: Copyright royalty and filing fees

Verify the

– royalty fee;

– filing fee;

– interest (if applicable); and

– total royalty payment.



Section L: Block 1

Complete block 1 if gross receipts are $137,100 or less.


Section L: Block 2

Complete block 2 if gross receipts are $263,800 or less (but more than $137,100).


Section L: Block 3

Complete block 3 if gross receipts are more than $263,800 (but less than $527,600).

Important: When you file your SOAs on form SA 1-2, you must also submit the royalty and required filing fees you have computed in block 1, 2, or 3 above. Your remittance must be in the form of an electronic payment payable to Register of Copyrights.

Section M: Channels

Important: Line 1 must not exceed line 2.


Represents the number of broadcast stations(network, independent, educational, etc.)

Represents total number of channels offered bythe cable system (including HBO, Showtime, etc.)


Section N: Contact

Give the name, address, and telephone number of a contact person.

For more efficient service, also give an email address for the contact person.

Section O: Certification

Provide identification and handwritten signature of the owner or owner’s agent of the

cable system along with the date.


Section O: continued

Don’t forget: • Stamped or photocopied signatures are not acceptable.• Filing fee is required as of January 1, 2014 (see slide 11).


Section P: Statement of gross receipts


Complete only if cable system excluded gross receipts for secondary transmissions made by satellite carriers to satellite dish owners.

Worksheet for computing interest

Section Q: Interest assessment


Important: Identify the statement where interest should be applied.

Section Q: continued


Calculate interest for late payments and underpayments.

You have now completed the online cable SOA tutorial


• You can exit here or proceed to www.copyright.gov/licensing to access the online fill-in version of SOA 1-2.

• Remember to

– read all directions carefully before filling out the form;

– file an original and one copy of the completed SOA form;

– make your royalty and filing fee payments using www.pay.gov or other acceptable options. For details, see Circulars 74a, 74b, and 74c;

– visit http://www.copyright.gov/licensing/eftpayment.swf to take the pay.gov tutorial; and

– file your SOA on time.

• If you still have questions, contact the Licensing Division at [email protected] or (202) 707-8150.

getting started > account info > revenues > fees > certification > interest >...

Documents