SA1-2 Short Form

a t t e n t i o n

Mandatory Regulation for

Making Statutory License Royalty Fee Payments

via Electronic Funds Transfer

e f f e c t i v e o c t o b e r 1 , 2 0 0 6

The Copyright Ofﬁce amended Sections 201.11 (satellite

carrier statements of account covering statutory licenses

for secondary transmissions), 201.17 (statements of account

covering statutory licenses for secondary transmissions by

cable systems) and 201.28 (statements of account for digital

audio recording devices or media) of Title 37 of the

Code

of Federal Regulations

to require that all statutory license

royalty fee payments be made via electronic funds transfer.

The regulation is effective beginning October 1, 2006, and

applicable to all royalty payments received on or after October

1, 2006, for past and subsequent accounting periods. For

details see the

Federal Register

, August 10, 2006 (71 fr 45739)

available at

www.copyright.gov⁄fedreg⁄2006⁄71fr45739.html

For detailed instructions concerning electronic payments,

contact the Licensing Division between 8:30 am and 5:00 pm

eastern time by calling (202) 707-8150, faxing (202) 707-0905,

or emailing licensing

loc.gov for circulars 74

a (on payments

via wire), 74

b, (on payments via ACH credit), and 74c

(on payments using

pay.gov

), which are also available at

www.copyright.gov⁄circs⁄circ74

m-258a rev: 08

⁄

2006 print:

⁄

2006 — 3,000 Printed on recycled paper

SPECIAL NOTICE ABOUT THIS STATEMENT OF ACCOUNT

IMPORTANT

New Regulation Requiring Statutory License Royalty Fee Payments via Electronic Funds Transfer

The Copyright Ofﬁce amended section 201.17 of Title 37 of the Code of Federal Regulations to require that all

statutory license royalty fee payments be made via electronic funds transfer, effective beginning October 1, 2006. See

the Federal Register, August 10, 2006 (71 FR 45739) available at www.copyright.gov/fedreg/2006/71fr45739.html .

For detailed instructions for making royalty payments via electronic funds transfer, contact the Licensing Division of

the Copyright Ofﬁce for circulars 74a, 74b, and 74c, which are also available at www.copyright.gov

⁄

circs .

Adjusted Cable Royalty Fee Rates

The royalty fee rates and gross receipts limitation threshold amounts under the cable statutory license were adjusted

pursuant to 17 USC 801(b)(2)(A)&(D). The new rates are effective July 1, 2005. See page 6 of this form and page (vi)

of the general instructions. (See Federal Register, October 6, 2005, 70 FR 58310.)

Photocopy Required

The Copyright Ofﬁce amended Section 201.17 of Title 37 of the Code of Federal Regulations to require that a legible

copy of the semi-annual statement of account be submitted together with the original statement of account to the

Library of Congress

Licensing Division

101 Independence Avenue SE

Washington, DC 20557-6400

Tel: (202) 707-8150 (8:30 a.m–5:00 p.m., eastern time)

Fax: (202) 707-0905

Email: [email protected]

Web: www.copyright.gov

SA1-2

Short Form

Return to:

Library of Congress

Licensing Division

101 Independence Ave. SE

Washington, DC 20557-6400

(202) 707-8150

[For courier deliveries,

see page i of the general

instructions]

STATEMENT OF ACCOUNT

for Secondary Transmissions

by Cable Systems

(

Short Form

)

General instructions are at the

end of this form [pages (i) –(vi)].

FOR COPYRIGHT OFFICE USE ONLY

DATE RECEIVED

Accounting

Period

INSTRUCTIONS: In line 1, give any business or trade names used to identify the business and operation of the system unless these

names already appear in space B. In line 2, give the mailing address of the system, if different from the address given in space B.

Area

Served

IDENTIFICATION OF CABLE SYSTEM:

MAILING ADDRESS OF CABLE SYSTEM:

(Number, street, rural route, apartment or suite number)

(City, town, state, zip)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CITY OR TOWN STATE

INSTRUCTIONS: List each separate community served by the cable system. A “community” is the same as a “community unit” as defined

in FCC rules: “…a separate and distinct community or municipal entity (including unincorporated communities within unincorporated

areas and including single, discrete unincorporated areas.”) 47 CFR §76.5(dd). The first community that you list will serve as a form

of system identification hereafter known as the “First Community.” Please use it as the First Community on all future filings.

Note: Entities and properties such as hotels, apartments, condominiums or mobile home parks should be reported in parentheses below the identified city.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

STATECITY OR TOWN

First

Community

▼

System

Owner

AMOUNT

ALLOCATION NUMBER

INSTRUCTIONS:

Give the full legal name of the owner of the cable system in line 1. If the owner is a subsidiary of another corporation, give the full

corporate title of the subsidiary, not that of the parent corporation.

In line 2, list any other names under which the owner conducts the business of the cable system.

 Check here if this is the system’s first filing. If not, enter the system’s ID number assigned by the Licensing Division. __________

Form SA1-2 Rev: 09/2006 Print: 09/2006— 1,000 Printed on recycled paper U.S. Government Printing Office: 2005-314-xxx

THIS FORM IS EFFECTIVE FOR ACCOUNTING PERIODS BEGINNING JULY 1, 2005

If you are filing for a prior accounting period, contact the Licensing Division for the correct form.

ACCOUNTING PERIOD COVERED BY THIS STATEMENT: (Check one of the boxes and fill in the year date.)

 January 1– June 30 . . . . . . . . . .  July 1– December 31 . . . . . . . . .

(Year) (Year)

LEGAL NAME OF OWNER/MAILING ADDRESS OF CABLE SYSTEM

BUSINESS NAME(S) OF OWNER OF CABLE SYSTEM (IF DIFFERENT):

MAILING ADDRESS OF OWNER OF CABLE SYSTEM:

(Number, street, rural route, apartment or suite number)

(City, town, state, zip)

LEGAL NAME OF OWNER OF CABLE SYSTEM:

Name

SERVICES OTHER THAN SECONDARY TRANSMISSIONS: RATES

In General: Space F calls for rate (not subscriber) information with respect to all your cable system’s services that were

not covered in space E. That is, those services that are not offered in combination with any secondary transmission service

for a single fee. There are two exceptions: you do not need to give rate information concerning: (1) services furnished at

cost; and (2) 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.

Block 1: Give the standard rate charged by the cable system for each of the applicable services listed.

Block 2: List any services that your cable system furnished or offered during the accounting period that were not listed

in block 1 and for which a separate charge was made or established. List these other services in the form of a brief (two

or three word) description, and include the rate for each.

Residential:

• Service to first set

• Service to additional set(s)

• FM radio (if separate rate)

Motel, Hotel

Commercial

Converter

• Residential

• Non-residential

BLOCK 2

CATEGORY OF SERVICE

NO. OF

SUBSCRIBERS

BLOCK 1

BLOCK 2

CATEGORY OF SERVICE

Continuing Services:

• Pay cable

• Pay cable–add’l channel

• Fire protection

• Burglar protection

Installation: Residential

• First set

• Additional set(s)

• FM radio (if separate rate)

• Converter

RATE

BLOCK 1

Installation: Non-residential

• Motel, hotel

• Commercial

• Pay cable

• Pay cable– Add’l channel

• Fire protection

• Burglar protection

Other Services:

• Reconnect

• Disconnect

• Outlet relocation

• Move to new address

RATECATEGORY OF SERVICERATE

RATE RATECATEGORY OF SERVICE

NO. OF

SUBSCRIBERS

Secondary

transmission

Service:

Subscribers

and Rates

Services

Other Than

Secondary

Transmissions:

Rates

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . .

. . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

FORM SA1-2. PAGE 2.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SECONDARY TRANSMISSION SERVICE: SUBSCRIBERS AND RATES

In General: The information in space E should cover all categories of “secondary transmission service” of the cable system:

that is, the retransmission of television and radio broadcasts by your system to subscribers. Give information about other

services (including pay cable) in space F, not here. All the facts you state must be those existing on the last day of the

accounting period (June 30 or December 31, as the case may be).

Number of Subscribers: Both blocks in space E call for the number of subscribers to the cable system, broken down

by categories of secondary transmission service. In general, you can compute the number of subscribers in each cat-

egory by counting the number of billings in that category (the number of persons or organizations charged separately for

the particular service at the rate indicated—not the number of sets receiving service).

Rate: Give the standard rate charged for each category of service. Include both the amount of the charge and the unit

in which it is generally billed. (Example: $8/mth). Summarize any standard rate variations within a particular rate cat-

egory, but do not include discounts allowed for advance payment.

Block 1: In the left-hand block in space E, the form lists the categories of secondary transmission service that cable

systems most commonly provide to their subscribers. Give the number of subscribers and rate for each listed category

that applies to your system. Note: Where an individual or organization is receiving service that falls under different cat-

egories, that person or entity should be counted as a “subscriber” in each applicable category. Example: a residential

subscriber who pays extra for cable service to additional sets would be included in the count under “Service to the first

set,” and would be counted once again under “Service to additional set(s).”

Block 2: If your cable system has rate categories for secondary transmission service that are different from those printed

in block 1, (for example, tiers of services which include one or more secondary transmissions), list them, together with

the number of subscribers and rates, in the right-hand block. A two or three word description of the service is sufficient.

. . . . . . . . . . . . . . . . . . . .

Name

LEGAL NAME OF OWNER OF CABLE SYSTEM:

Primary

Transmitters:

Television

INSTRUCTIONS

General: In space G, identify every television station (including translator stations and low power television stations) carried

by your cable system during the accounting period, except: (1) stations carried only on a part-time basis under FCC rules

and regulations in effect on June 24, 1981 permitting the carriage of certain network programs [sections 76.59(d)(2) and

(4), 76.61(e)(2) and (4) or 76.63 (referring to 76.61(e)(2) and (4))]; and (2) certain stations carried on a substitute pro-

gram basis, as explained in the next paragraph.

Substitute Basis Stations: With respect to any distant stations carried by your cable system on a substitute program

basis under specific FCC rules, regulations, or authorizations:

• Do not list the station here in space G—but do list it in space I (the Special Statement Program Log)—if the station

was carried only on a substitute basis.

• List the station here, and also in space I, if the station was carried both on a substitute basis and also on some other

basis. For futher information concerning substitute basis stations, see page (v) of the general instructions.

Column 1: List each station’s call sign. Do not report origination program services such as HBO, ESPN, etc.

Column 2: Give the number of the channel on which the station’s broadcasts are carried in its own community. This

may be different from the channel on which your cable system carried the station.

Column 3: Indicate in each case whether the station is a network station, an independent station, or a noncommer-

cial educational station, by entering the letter “N” (for network), “I” (for independent) or “E” (for noncommercial educa-

tional). For the meaning of these terms, see page (iv) of the general instructions.

Column 4: Give the location of each station. For U.S. stations, list the community to which the station is licensed by

the FCC. For Mexican or Canadian stations, if any, give the name of the community with which the station is identified.

1. CALL

SIGN

2. B’CAST

CHANNEL

NUMBER

3. TYPE

STATION

4. LOCATION OF STATION

FORM SA1-2. PAGE 3.

LEGAL NAME OF OWNER OF CABLE SYSTEM:

Name

Primary

Transmitters:

Radio

PRIMARY TRANSMITTERS: RADIO

In General: List every radio station carried on a separate and discrete basis and list those FM stations carried on an all-

band basis whose signals were “generally receivable” by your cable system during the accounting period.

Special Instructions Concerning All-Band FM Carriage: Under Copyright Office regulations, an FM signal is “gener-

ally receivable” if: (1) “it is carried by the system whenever it is received at the system’s headend"; and (2) it can be ex-

pected, on the basis of monitoring, to be received at the headend, with the system’s FM antenna, during certain stated

intervals. For detailed information about the the Copyright Office regulations on this point, see page (iv) of the general

instructions.

Column 1: Identify the call sign of each station carried.

Column 2: State whether the station is AM or FM.

Column 3: If the radio station’s signal was electronically processed by the cable system as a separate and discrete

signal, indicate this by placing a check mark in the “S/D” column.

Column 4: Give the station’s location (the community to which the station is licensed by the FCC or, in the case of

Mexican or Canadian stations, if any, the community with which the station is identified).

CALL SIGN AM or FM S/D LOCATION OF STATION CALL SIGN AM or FM S/D LOCATION OF STATION

FORM SA1-2. PAGE 4.

Name

LEGAL NAME OF OWNER OF CABLE SYSTEM:

Substitute

Carriage:

Special

Statement and

Program Log

WHEN SUBSTITUTE

CARRIAGE OCCURRED

7. REASON

FOR

DELETION

1. TITLE OF PROGRAM

2. LIVE?

Yes or No

3. STATION’S

CALL SIGN 4. STATION’S LOCATION

5. MONTH

AND DAY

6. TIMES

FROM — TO

SUBSTITUTE PROGRAM

—

GENERAL

In space I, identify every nonnetwork television program, broadcast by a distant station, that your cable system carried

on a substitute basis during the accounting period, under specific present and former FCC rules, regulations, or autho-

rizations. For a further explanation of the programming that must be included in this log, see page (v) of the general in-

structions.

1. SPECIAL STATEMENT CONCERNING SUBSTITUTE CARRIAGE:

• During the accounting period, did your cable system carry, on a substitute basis, any nonnetwork television program

broadcast by a distant station?

■■ Yes ■■ No

Note: If your answer is “No,” leave the rest of this page blank. If your answer is “Yes,” you must complete the program log

in block 2.

2. LOG OF SUBSTITUTE PROGRAMS:

In General: List each substitute program on a separate line. Use abbreviations wherever possible, if their meaning is

clear. If you need more space, please attach additional pages.

Column 1: Give the title of every nonnetwork television program (“substitute program”) that, during the accounting

period, was broadcast by a distant station and that your cable system substituted for the programming of another station

under certain FCC rules, regulations, or authorizations. See page (v) of the general instructions for further information.

Do not use general categories like “movies” or “basketball.” List specific program titles, for example, “I Love Lucy” or “NBA

Basketball: 76ers vs. Bulls.”

Column 2: If the program was broadcast live, enter “Yes". Otherwise enter “No.”

Column 3: Give the call sign of the station broadcasting the substitute program.

Column 4: Give the broadcast station’s location (the community to which the station is licensed by the FCC or, in the

case of Mexican or Canadian stations, if any, the community with which the station is identified).

Column 5: Give the month and day when your system carried the substitute program. Use numerals, with the month

first. Example: for May 7 give “5/7.”

Column 6: State the times when the substitute program was carried by your cable system. List the times accurately

to the nearest five minutes. Example: a program carried by a system from 6:01:15 p.m. to 6:28:30 p.m. should be stated

as “6:00–6:30 p.m.”

Column 7: Enter the letter “R” if the listed program was substituted for programming that your system was required to

delete under FCC rules and regulations in effect during the accounting period; or enter the letter “P” if the listed program

was substituted for programming that your system was permitted to delete under FCC rules and regulations in effect on

October 19, 1976.

—

FORM SA1-2. PAGE 5.

LEGAL NAME OF OWNER OF CABLE SYSTEM:

Name

1. Base amount under statutory formula

2. Enter amount of gross receipts from space K

3. Subtract line 2 from line 1

4. Enter the amount of gross receipts from space K

5. Enter the amount from line 3

6. Subtract line 5 from line 4

7. Multiply line 6 by .005 (enter figure here)

8. Interest charge. Enter the amount from line 4, space Q, page 8

INSTRUCTIONS: As a cable system with gross receipts of $137,100 or less, the royalty fee that you must pay for this six-month

accounting period is $52.00

Line 1. Royalty Fee for Accounting Period

Line 2. Interest Charge. Enter the amount from line 4, space Q, page 8

INSTRUCTIONS FOR COMPUTING THE COPYRIGHT ROYALTY FEE

To compute the royalty fee you owe:

• Complete either block 1, block 2 or block 3

• Use block 1 if the amount of gross receipts in space K is $137,100 or less

• Use block 2 if the amount of gross receipts in space K is more than $137,100 but less than or equal to $263,800

• Use block 3 if the amount of gross receipts in space K is more than $263,800 but less than $527,600

See page (vi) of the general instructions for more information.

GROSS RECEIPTS

Instructions: The figure you give in this space determines the form you file and the amount you pay. Enter the total of

all amounts (gross receipts) paid to your cable system by subscribers for the system’s secondary transmission service

(as identified in space E) during the accounting period. For a further explanation of how to compute this amount, see page

(v) of the general instructions.

• Gross receipts from subscribers for secondary transmission service(s)

during the accounting period.

IMPORTANT: You must complete a statement in space P concerning gross receipts.

(Amount of gross receipts)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Gross Receipts

Royalty Fee

FORM SA1-2. PAGE 6.

IMPORTANT: When you file your statement of account on this form, SA1-2, you must also submit the royalty fee you have computed

in block 1, block 2, or block 3 above. Your remittance must be in the form of an electronic payment payable to Register of Copyrights.

See page i of the general instructions for more information.

BLOCK 1: GROSS RECEIPTS OF $137,100 OR LESS

Line 3. TOTAL ROYALTY FEE PAYABLE FOR ACCOUNTING PERIOD. Add lines 1 and 2

BLOCK 2: GROSS RECEIPTS OF $263,800 OR LESS (but more than $137,100)

BLOCK 3: GROSS RECEIPTS OF MORE THAN $263,800 (but less than $527,600)

1. Enter the amount of gross receipts from space K

2. Base amount under statutory formula

3. Subtract line 2 from line 1

4. Multiply line 3 by .01

5. Royalty due on the first $263,800 of gross receipts (under statutory formula)

6. Interest charge. Enter the amount from line 4, space Q, page 8

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . .

. . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$263,800

$ 52.00

$263,800

$1,319

7. TOTAL ROYALTY FEE PAYABLE FOR ACCOUNTING PERIOD. Add lines 4, 5, and 6

▼▼▼

▼▼

▼

9. TOTAL ROYALTY FEE PAYABLE FOR ACCOUNTING PERIOD. Add lines 7 and 8

▼▼▼

▼

Name

LEGAL NAME OF OWNER OF CABLE SYSTEM:

CHANNELS

INSTRUCTIONS: You must give: (1) the number of channels on which the cable system carried television broadcast

stations to its subscribers; and, (2) the cable system’s total number of activated channels, during the accounting period.

1. Enter the total number of channels on which the cable

system carried television broadcast stations.

2. Enter the total number of activated

channels on which the cable system carried television broadcast stations

and nonbroadcast services.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Contact

Channels

FORM SA1-2. PAGE 7.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

INDIVIDUAL TO BE CONTACTED IF FURTHER INFORMATION IS NEEDED: (Identify an individual to whom

we can write or call about this statement of account.)

Telephone

Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(Area code)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Address

(Number, street, rural route, apartment or suite number)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(City, town, state, zip)

• I have examined the statement of account and hereby declare under penalty of law that all statements of fact contained

herein are true, complete, and correct to the best of my knowledge, information, and belief, and are made in good faith.

[18 USC, Section 1001(1986)]

☛

CERTIFICATION: (This statement of account must be certified and signed in accordance with Copyright Office regu-

lations, as explained in the general instructions.)

• I, the undersigned, hereby certify that: (Check one, but only one, of the boxes.)

■■ (Owner other than corporation or partnership) I am the owner of the cable system as identified in line 1 of

space B; or

■■ (Agent of owner other than corporation or partnership) I am the duly authorized agent of the owner of the

cable system as identified in line 1 of space B, and that the owner is not a corporation or partnership; or

■■ (Officer or partner) I am an officer (if a corporation) or a partner (if a partnership) of the legal entity identified as

owner of the cable system in line 1 of space B.

Certification

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Handwritten signature:

Typed or printed name:

Title:

Date:

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Email (optional) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Fax (optional). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PRIVACY ACT ADVISORY STATEMENT—Required by Privacy Act of 1974 (Public Law 93-579)

• You may be liable for civil or criminal

penalties for copyright infringement with

respect to retransmission of television

and radio stations (17 USC §§502–506,

509–510)

Principal Uses of Requested Information:

• Establishment and maintenance of a

public record.

• Examination of the statement of account

for compliance with legal requirement

Other Routine Uses:

• Public inspection and copying

• Preparation of public indexes

• Preparation of search reports upon

request

Note:

• No other advisory statement will be given

you in connection with this statement of

account

• Please retain a copy of this statement and

refer to it if we communicate with you

regarding this statement of account

Authority for Requesting This

Information:

• Title 17, USC § 111

Furnishing This Information is:

• Voluntary

But If the Information is Not Furnished:

• It may be necessary to delay placement

of this statement of account in the

completed record of statements of

account.

(Title of official position held in corporation or partnership)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

LEGAL NAME OF OWNER OF CABLE SYSTEM:

Name

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Line 1. Enter the amount of late payment or underpayment

Line 2. Multiply line 1 by the interest rate* and enter the sum here

SPECIAL STATEMENT CONCERNING GROSS RECEIPTS EXCLUSION

The Satellite Home Viewer Act of 1988 amended Title 17, section 111(d)(1)(A), of the Copyright Act by adding the following

sentence:

“In determining the total number of subscribers and the gross amounts paid to the cable system for the basic service

of providing secondary transmissions of primary broadcast transmitters, the system shall not include subscribers

and amounts collected from subscribers receiving secondary transmissions pursuant to section 119.”

For more information on when to exclude these amounts, see the note on page (v) of the general instructions.

During the accounting period did the cable system exclude any amounts of gross receipts for secondary transmissions

made by satellite carriers to satellite dish owners?

■■ NO

■■ YES. Enter the total here and list the satellite carrier(s) below. ................................... $

WORKSHEET FOR COMPUTING INTEREST

You must complete this worksheet for those royalty payments submitted as a result of a late payment or underpayment.

For an explanation of interest assessment, see page (vi) general instructions.

Line 3. Multiply line 2 by the number of days late and enter the sum here

Line 4, Multiply line 3 by .00274** and enter here and in space L (page 6) Block 1,

line 2, or Block 2, line 8, or Block 3, line 6

x .00274

(interest charge)

Name

Mailing address

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Name

Mailing address

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Name

Mailing address

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Name

Mailing address . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . .

days

Statement of

Gross Receipts

Interest

Assessment

FORM SA1-2. PAGE 8.

* Contact the Licensing Division at (202) 707-8150 (8:30 a.m–5:00 p.m., eastern time) for the interest rate for the

accounting period in which the late payment or underpayment occurred.

**This is the decimal equivalent of 1/365, which is the interest assessment for one day late.

NOTE: If you are filing this worksheet covering a statement of account already submitted to the Copyright Office, please

list below the owner, address, first community served, ID number, and accounting period as given in the original filing.

Owner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Address . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

First Community Served . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

ID Number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Accounting Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

HOW TO FILE THE STATEMENT OF ACCOUNT

AND ROYALTY FEE

1 Study the general information on these pages and read

through the detailed instructions in the statement of

account form itself. Before you start completing the

form, make sure that you have collected all of the nec-

essary information and that you are using the right

form.

2 Fill out the statement of account form, giving all of the

required information about your cable system and about

the television and radio stations carried by it. Use a type-

writer, or print the information in black ink.

3 Certify the statement of account by signing at space O.

The statement of account is not acceptable unless it

bears the original handwritten signature of one of the

persons indicated in space O as authorized to certify it

under Copyright Office regulations.

4 Make an electronic payment (see note below) in the amount

you have calculated in space L, to cover the copyright roy-

alty fee.

See the Federal Register, August 10, 2006

(71FR45739) available at www.copyright.gov/fedreg/

2006/71fr45739.html

. The remittance should be payable

to Register of Copyrights.

5 Send the completed statement of account with one leg-

ible copy of the statement of account to

Library of Congress

Licensing Division

101 Independence Avenue SE

Washington, DC 20557-6400

For courier deliveries, see www.copyright.gov

mail.html

for updated information.

6 The Copyright Office will retain your statement of ac-

count and make it a part of our public records. You

should, therefore, keep a copy of the entire statement,

as filed, in case you need it for future reference.

IF YOU ARE FILING FOR A PRIOR ACCOUNTING PERIOD,

CONTACT THE LICENSING DIVISION FOR THE CORRECT FORM.

USE THIS FORM WHEN:

• You are the owner (or represent the owner) of a cable system; and

• You are filing the semiannual statement of account required by the copyright law; and

• Your system’s semiannual gross receipts for secondary transmissions (the figure you give in space K of the form) is

less than $527,600; and

• You are also depositing the required semiannual royalty fee with the Licensing Division of the Copyright Office.

IF YOUR FIGURE FOR SEMIANNUAL GROSS RECEIPTS IN SPACE K IS $527,600 OR MORE, USE SA3 (LONG FORM)

GENERAL INSTRUCTIONS FOR SA1-2 (SHORT FORM)

CABLE SYSTEMS

AND THE COPYRIGHT LAW (P.L. 94-553)

Cable systems are subject to copyright liability for their use

of copyrighted material in “secondary transmissions” (the

retransmission of television and radio broadcasts to sub-

scribers). Cable retransmissions of copyrighted program-

ming are subject to a system of “statutory licensing.” Among

other things this means that twice a year the owner of a

cable system must send a statement of account, together

with a royalty fee, to the Licensing Division of the Copyright

Office.

Primary Transmissions

and Secondary Transmissions

In providing copyright liability for cable systems, the law

draws a distinction between “primary transmissions” and

“secondary transmissions”:

• Primary Transmissions: These include broadcasts by

radio and television stations to the public that are retrans-

mitted by cable systems to their subscribers.

• Secondary Transmissions: This is the basic service of

retransmitting television and radio broadcasts to subscrib-

ers. The statute requires all U.S. cable systems, regard-

less of how many subscribers they have or whether they

are carrying any distant signals, to pay some copyright

royalties. However, instead of obliging cable systems to

bargain individually for each copyrighted program they

retransmit, the law offers them the opportunity of obtain-

ing a statutory license for secondary transmissions.

Note: Secondary transmissions do not include trans-

missions originated by a cable system (including local

origination cablecasting, pay cable, program services,

background music services, and originations on leased

or access channels). Cable systems must negotiate

for the use of any copyrighted material in the program-

ming they originate, and their originations are not sub-

ject to statutory licensing.

Individual cable system: An individual cable system

is defined generally as “each cable system recognized as

a distinct entity under the rules, regulations, and practices

of the Federal Communications Commission.…” In addition,

two or more cable facilities are considered as one “individ-

ual” cable system if either: (A) the facilities are in contiguous

communities and are under common ownership or control;

or (B) the facilities operate from one headend. Thus, even if

they are owned by different entities, two cable facilities will

be considered as one individual cable system if they share

a common headend.

WHAT A STATUTORY LICENSE

DOES NOT PERMIT YOU TO DO

The statutory authority given to cable systems to retransmit

television and radio broadcasts under a statutory license is

limited in several ways:

• Originations. To repeat: a cable system’s statutory li-

cense extends only to secondary transmissions (retrans-

missions). It does not permit the system to make any

originations of copyrighted material without a negotiated

license covering that material.

• Nonsimultaneous Retransmissions. In general, to be

subject to statutory licensing under the copyright law, a

cable retransmission must be simultaneous with the

broadcast being carried. As a rule, taping or other record-

ing of the program is not permitted. Taping for delayed

transmission is permissible only for some (not all) cable

systems located outside the 48 contiguous states; and,

even in these exceptional cases, there are further limita-

tions and conditions that the cable system must meet.

• FCC Violations. The broadcast signals that a cable sys-

tem can carry under a statutory license are limited to those

that it is permitted to carry under FCC rules, regulations,

and authorizations. If signal carriage is in violation of FCC

requirements, the cable system may be subject under the

ment for each unauthorized retransmission.

• Foreign Signals. In general, the copyright law does not

permit a cable system to retransmit signals of foreign

television and radio stations under a statutory license.

The only exceptions have to do with the signals of certain

Mexican and Canadian stations. Unless foreign signals

fall within these exceptions, their carriage would not be

authorized under a statutory license, even if permissible

under FCC rules.

• Program Alteration or Commercial Substitution.

Cable systems are not permitted to alter the content of

retransmitted programs, or to change, delete, or substi-

tute commercials or station announcements in or adja-

cent to programs being carried. There is only one excep-

tion: under certain circumstances, substitutions involving

“commercial advertising market research” may be per-

mitted.

Note: For detailed instructions concerning electronic pay-

ments, contact the Licensing Division for Circular 74, which

is also available at www.copyright.gov

⁄

circs

⁄

circ74.pdf

HOW THE STATUTORY LICENSE WORKS

In general, having a statutory license means that a cable

system can retransmit broadcast programming without

violating the copyright law, as long as it complies with cer-

tain paperwork requirements and, twice a year, deposits a

royalty fee with the Copyright Office.

• The cable system can, without negotiated licenses or

advance permission from copyright owners, retransmit

signals of any U.S. television or radio stations that it is

authorized to carry under FCC rules, regulations, or

authorizations (plus Mexican or Canadian stations in

certain cases); and

• The cable system must file statements of account with the

alty. The amount of the royalty, which is established under

a statutory formula, depends on the total of the system’s

gross receipts for secondary transmission service.

• Every 6 months the cable system must send the Copy-

right Office a statement of account on this form, SA1-2

(Short Form), or on SA3 (Long Form) (if the gross receipts

are $527,600 or more).

• Each semiannual statement of account must be accom-

panied by the deposit of a royalty fee covering retrans-

missions during the preceding 6 months in the form of an

electronic payment payable to Register of Copyrights.

Why Having a Statutory License Is Important

Most television and radio broadcasts contain copyrighted

material. Without a statutory license, a cable system

would either have to negotiate licenses for all copyrighted

programming it transmits or run the risk of substantial

civil (or, in some cases, criminal) liability for multiple acts

of copyright infringement.

Who Can Utilize the Statutory License

Under the statute and Copyright Office regulations, re-

transmissions are subject to statutory licensing only if

they are made by cable systems.

Cable system: A “cable system” is defined as “a facility,

located in any State, Territory, Trust Territory, or Possession,

that in whole or in part receives signals transmitted or pro-

grams broadcast by one or more television broadcast sta-

tions licensed by the Federal Communications Commission,

and makes secondary transmissions of such signals or pro-

grams by wires, cables, microwave, or other communica-

tions channels to subscribing members of the public who

pay for such service.” A system that meets this definition is

considered a “cable system” for copyright purposes, even if

the FCC excludes it from being considered a “cable system”

because of the number or nature of its subscribers or the

nature of its secondary transmissions.

GENERAL INSTRUCTIONS, FORM SA1-2, PAGE (ii).

SOME POINTS TO REMEMBER

ABOUT STATUTORY LICENSES:

• As long as a cable system keeps its statutory li-

cense in force by complying with the requirements

of the new copyright law, it is not obliged to negoti-

ate individual copyright licenses for retransmission

of television and radio broadcasts.

• The following are among the various ways a cable

system can lose its statutory license: by failing to

file the statements of account or royalty fees; by

taping for delayed retransmission; by carrying sig-

nals in violation of FCC requirements; by carriage

of certain foreign stations; and by altering programs

or substituting commercials.

• Without a statutory license, a cable system can be

sued by a copyright owner for the full range of civil

remedies for copyright infringement, including in-

junctions, actual damages and profits, or statutory

damages (of up to $150,000 in cases of willful in-

fringement). The statute also provides for criminal

penalties in cases of willful infringements for com-

mercial purposes.

Accounting Periods

The statute establishes two 6-month accounting periods for

purposes of computing the royalty fee and reporting the in-

formation called for in the statement of account. The first

semiannual period runs from January through June, and

the second from July through December, of each calendar

year. You must use these accounting periods whether or not

they coincide with the beginning or ending of your cable

system’s fiscal year.

Filing Dates

Cable systems are given 60 days after the close of each

accounting period in which to file their statements of ac-

count and royalty fees. The following are the two filing dates

you must observe each year:

• 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.

Note: If August 29 or March 1 falls on a weekend or federal

holiday, statements of account and royalty fees may be

made on the next succeeding business day.

Statements of account and royalty fees received before

the end of the accounting period will not be accepted.

Statements and fees received after the August 29 or March

1 deadlines will be accepted for whatever legal effect they

may have, if any. The Copyright Office takes no position as

to what this effect will be, and a cable system that files late

runs a substantial risk.

Refunds

Refund requests must be received within 60 days after the

close of the filing period (by April 30 or October 28). Also,

refund requests for late and amended payments must be

received before the expiration of 60 days from the date of

receipt at the Copyright Office of the royalty payment that

is the subject of the request. The Debt Collection Improve-

ment Act of 1996 requires that refunds be made through

electronic funds transfer (EFT). Note: Late payments are

subject to interest assessment. See page (vi) of the general

instructions. Contact the Licensing Division for additional

information.

How Royalty Fees Are Handled

For purposes of computing the semiannual royalty fee a cable

system must pay, the statute creates three brackets, depend-

ing upon the system’s gross receipts from subscribers for sec-

ondary transmissions during the accounting period:

1 Gross receipts of $137,100 or less: royalty fee of $52;

2 Gross receipts of more than $137,100 and less than

$527,600: royalty fee determined by a formula based on

percentage of gross receipts;

3 Gross receipts of $527,600 or more: royalty fee de-

termined by a formula based on percentage of gross re-

ceipts and on the number of distant stations carried by

the system.

A cable system is required to deposit its semiannual roy-

alty fee with the Copyright Office at the time it files each

statement of account. The royalty must be made by elec-

tronic payment, and the related statement of account must

be filed by the appropriate deadline accompanied with a

cover letter (see circulars 74a, 74b, and 74c).The Copyright

Office transfers these fees into a special fund, which is later

distributed to copyright owners as payment for the use of

their works by cable systems.

PURPOSES OF THE STATEMENT OF ACCOUNT

The law requires a cable system to file statements of ac-

count for two purposes:

• To show the basis for the semiannual royalty fee the

cable system owes under its statutory license; and

• To give the information needed to allocate royalty fees

among copyright owners.

Thus, some of the information you give on your statement

of account has nothing to do with computing your gross re-

ceipts or deciding the amount of your royalty fee. Neverthe-

less, you are required to give the additional information in

order to provide the basis for the second phase of the statu-

tory license: the distribution of fees to copyright owners.

GENERAL INSTRUCTIONS, FORM SA1-2, PAGE (iii).

WHAT FACTS THE STATEMENT OF ACCOUNT

SHOULD COVER

All of the information you give in a statement of account

must be an accurate presentation of the facts existing dur-

ing the accounting period covered by that statement (or, in

certain cases, on the last day of that period).

• Spaces D, G, H, and I: List all areas served, stations

carried, and certain substitute programs carried at any

time during the accounting period.

• Spaces K and M: You should report the total of “gross

receipts” attributable to the particular accounting period

in space K. The figures requested in space M should be

the appropriate totals of channels for the entire period.

• Space J: This space (part-time carriage log) has been

deleted.

•

Spaces B, C, E, and F: Even if items of information con-

cerning the owner, system, subscribers, or rates have

changed during the accounting period, your statement of

account does not need to reflect the change. Give only

the facts existing on the last day of the accounting period.

If there were different owners during the accounting pe-

riod, only the owner on the last day of the accounting pe-

riod should submit a single statement of account and roy-

alty fee payment covering the entire accounting period.

SPACE G (Primary Transmitters: Television)

Stations Actually Carried. Make sure that space G lists all

the television stations your system actually carried at any

time during the accounting period (except as explained in

space G of the Form). Do not list stations that were not in

fact carried during that period, even if the FCC has autho-

rized their carriage, and even if they were carried during

earlier accounting periods.

Low Power Television Stations

• The Copyright Act in section 111(f) delineates the local

status of a low power television station as follows: “In the

case of a low power television station, as defined by the

rules and regulations of the Federal Communications

Commission, the ‘local service area of a primary trans-

mitter’ comprises the area within 35 miles of the transmit-

ter site, except that in the case of such a station located

in a standard metropolitan statistical area which has one

of the 50 largest populations of all standard metropolitan

statistical areas (based on the 1980 decennial census of

population taken by the Secretary of Commerce), the

number of miles shall be 20 miles.” This means that a low

power television station carried by a cable system within

an area as defined above will be considered “local”.

Translator Stations

• Translator Stations Must Be Listed. For Copyright pur-

poses, a translator station is a primary transmitter not

GENERAL INSTRUCTIONS, FORM SA1-2, PAGE (iv).

only of any programs it originally transmits but also of all

the programming it receives from its parent station and

retransmits. Thus, if your cable system carried signals

emanating from a translator station, you must list the

translator station in space G. And, if your system sepa-

rately carried signals from both a translator station and its

parent station, both the translator and the parent station

should be identified.

• Type of Translator Station. For any translator station

listed in space G, the type of station indicated in column

3 should be that of the parent station.

Definitions of Types of Stations: Under the Copyright Act,

the terms used in connection with column 3 of space G

mean the following:

• Network station: a television broadcast station that is

owned or operated by, or affiliated with, one or more of

the television networks in the United States providing na-

tionwide transmissions, and that transmits a substantial

part of the programming supplied by such networks for a

substantial part of the station’s typical broadcast day.

• Independent station: a commercial television broadcast

station other than a network station. For purposes of de-

termining a station’s type value this category includes all

specialty, Canadian and Mexican stations.

• Noncommercial educational station: a television sta-

tion that either: (1) is licensed by the FCC as a noncom-

mercial educational broadcast station and is owned and

operated by a public agency or nonprofit private founda-

tion, corporation, or association; or (2) is owned and op-

erated by a municipality and transmits only noncommer-

cial programs for educational purposes.

SPACE H (Primary Transmitters: Radio)

All-Band Carriage. If your system carried FM radio stations

on an all-band basis, you are not required to list every sta-

tion that subscribers might possibly have received during

the accounting period. Instead, Copyright Office regulations

require you to monitor your FM transmission service at your

system’s headend from time to time during the accounting

period and to report the generally receivable FM stations

identified as a result of your monitoring.

Stations “Generally Receivable.” There are two standards

for determining whether an FM station is “generally receiv-

able”:

1 Is the station usually carried whenever it is received at

your system’s headend; and

2 Can the station be expected to be received at the head-

end, with your system’s FM antenna, at least 3 consecu-

tive hours each day at the same time each day, 5 or more

days a week, for four or more weeks during any calendar

• Where FCC rules and regulations in effect on the date of

carriage require the deletion of certain programming of

one station and permit substitution of programming from

another distant station. That is, if a cable system is re-

quired to delete a station because of the FCC sports ex-

clusivity rules.

• Where the FCC rules, regulations and authorizations in

effect on October 19, 1976, permit a cable system at its

option, to delete programming, and authorize the system

to substitute programming from another distant station.

That is, if the cable system elects to delete a distant sta-

tion while that station is broadcasting a program prima-

rily of local interest to the distant community, for copyright

purposes former FCC rules sections 76.61(b) (2) and

76.63 (incorporating 76.61(b) (2)) continue to authorize

the station to substitute the programming of any other

distant station.

NOTES:

1) The provisions of the Copyright Act dealing with volun-

tary deletion and substitution of programs are limited to

programs substituted under FCC rules, regulations, and

authorizations in effect on October 19, 1976.

2) Effective January 1, 1990, the FCC amended Parts 73

and 76 of its rules relating to program exclusivity in the

cable and broadcast industries.

SPACE K (Gross Receipts)

What Are Gross Receipts? The gross receipts you enter in

space K are the receipts for the basic service of providing

secondary transmissions of primary broadcast transmitters.

They include the full amount of monthly (or other periodic)

service fees for any and all services or tiers of services which

include one or more secondary transmissions of television or

radio broadcast signals, for additional set fees, and for con-

verter fees. All such gross receipts shall be aggregated and

the royalty fee calculations shall be made against the aggre-

gated amount. Gross receipts for secondary transmission

services do not include installation (including connection, re-

location, disconnection or reconnection) fees, separate

charges for security, alarm or facsimile services, charges for

late payments, or charges for pay cable or other program

origination services: Provided that, the origination services

are not offered in combination with secondary transmission

service for a single fee.

SATELLITE CARRIER

GROSS RECEIPTS EXCLUSION

• The Satellite Home Viewer Act of 1988, Public Law

100-667, as amended by Public Law 103-369, Public

Law 106-113, and Public Law 108-447 establishes a

statutory license for certain secondary transmissions

made by satellite carriers to satellite dish owners. Satel-

lite carriers are subject to copyright liability for their use

of copyrighted material when they make secondary

quarter, with a strength of not less than fifty microvolts

per meter measured at the foot of the tower or pole to

which the antenna is attached?

The monitoring arrangements you set up should be

aimed at determining what stations can reasonably be ex-

pected to meet these standards.

Monitoring Activities. It is not necessary to monitor con-

tinuously throughout the accounting period, and you are not

required to make precise measurements to determine

which stations in fact meet the technical standards and

which do not. Your monitoring activities should take place

periodically at your headend during the accounting period

and you should use a good FM receiver.

SPACE I (Substitute Carriage: Special Statement

and Program Log)

Substitute Programs Must Be Logged and Reported.

The Copyright Act requires all cable systems to submit, with

their statement of account, “logs showing the times, dates,

stations, and programs” involved in “any nonnetwork televi-

sion programming that was carried in whole or in part be-

yond the local service area of the primary transmitter, under

rules, regulations, or authorizations of the Federal Commu-

nications Commission permitting the substitution or addition

of signals under certain circumstances.” The applicable

present and former rules and regulations are identified in

item 3 which follows.

What Programs Must Be Listed. You must list a program

in space I if all three of the following conditions apply:

1 The program is a nonnetwork television program. A

“nonnetwork television program” is a program that was

not being broadcast by a station as part of a network tele-

vision broadcast at the time the cable system carried it.

2 The program is picked up from a distant station. A

“distant station” is a television station carried by a cable

system in whole or in part beyond that station’s “local

service area.” A television station’s local service area is

the area within which the station is entitled to insist upon

its signal being retransmitted by a cable system pursuant

to rules, regulations, and authorizations of the Federal

Communications Commission in effect on April 15, 1976.

Effective on July 1, 1994, a station’s local service area

also includes the station’s television market as defined in

section 76.55(e) of title 47, Code of Federal Regulations

(as in effect on September 18, 1993), or any modifica-

tions to such television market made, on or after Septem-

ber 18, 1993, pursuant to section 76.55(e) or 76.59 of

title 47 of the Code of Federal Regulations.

3 The program was carried by the cable system in sub-

stitution for another program under FCC rules, regu-

lations, or authorizations:

GENERAL INSTRUCTIONS, FORM SA1-2, PAGE (v)

transmissions (retransmissions of television broadcasts)

to satellite dish owners and they make a direct or indi-

rect charge for that service. Satellite carrier retransmis-

sions of the copyrighted programming embodied in the

signals of superstations or network stations are eligible

under an operational system of statutory licensing, that

is established in section 119 of the Copyright Act.

•A satellite carrier is defined in the Satellite Home Viewer

Extension and Reauthorization Act of 2004 as “an entity

that uses the facilities of a satellite or satellite service li-

censed by the Federal Communications Commission,

and operates in the Fixed-Satellite Service under part 25

of title 47 of the Code of Federal Regulations or the Di-

rect Broadcast Satellite Service under part 100 of title 47

of the Code of Federal Regulations, to establish and op-

erate a channel of communications for point-to-

multipoint distribution of television station signals, and

that owns or leases a capacity or service on a satellite

in order to provide such point-to-multipoint distribution,

except to the extent that such entity provide such distri-

bution pursuant to tariff under the Communications Act

of 1934, other than for private home viewing pursuant to

Section 119.”

• As provided in the Satellite Home Viewer Act [amend-

ment of section 111(d)(1)(A)], any amounts collected by

a cable system/distributor from subscribers should be

excluded from the cable system’s determination of gross

receipts received for the basic service of providing sec-

ondary transmissions of primary broadcast transmitters

pursuant to the cable statutory license, section 111 (c)

to (f). This provision contemplates the situation where

the same entity may be offering both satellites and cable

distribution of secondary transmissions of primary

broadcast transmitters.

• If a cable system offers both satellite and cable services

to satellite dish owners, then it may exclude those

amounts attributed to the satellite service under section

119 of the Act. Such a system should declare on page

8, the amount of gross receipts that are excluded for this

service, and list the name and address of each satellite

carrier in which the system has contracted as a distribu-

tor or agent to market the carrier’s retransmissions ser-

vice. The system should also maintain separate records

of the subscriber fees received for satellite carrier re-

transmissions.

Accrual Basis: If your revenue accounts are kept on an

accrual basis, the figure you give in space K should be the

total of all gross receipts for secondary transmission ser-

vice accrued for the accounting period. Subtract bad debts

actually written off during the period, and add previously

written-off debts that were actually recovered during the

period. (However, do not make adjustments for bad debts

for secondary transmission service furnished before Janu-

ary 1, 1978.)

Cash Basis: If your revenue accounts are kept on a cash

basis, your gross receipts are all amounts actually received

during the accounting period for secondary transmission

service.

Space L (Copyright Royalty Fee)

Statutory Formulas for Computing the Royalty Fee

For cable systems whose semiannual gross receipts are un-

der $527,600, the method of calculating the royalty fee de-

pends on the amount of gross receipts reported in space K.

Gross receipts of $137,100 or less: If the figure you give

in space K is $137,100 or less, your royalty fee has been

calculated for you in accordance with the formula set out in

section 111(d)(2)(C) of the Copyright Act as adjusted. The

amount is $52. Do not use blocks 2 and 3.

Gross receipts of more than $137,100 but less than or

equal to $263,800: If the figure you give in space K is more

than $137,100 but less than or equal to $263,800, your roy-

alty fee must be calculated in accordance with the formula

set out in section 111(d)(2)(C) of the Copyright Act, as ad-

justed. Follow the step-by-step calculations in block 2 of

space L. Do not use blocks 1 and 3.

Gross receipts of more than $263,800 but less than

$527,600: If your gross receipts figure in space K is more

than $263,800 but less than $527,600, you must use the

formula set out in section 111(d)(2)(D) of the Act, as ad-

justed. Follow the step-by-step calculations in block 3 of

space L. Do not use blocks 1 and 2.

Interest Charges for Underpayments

and Late Payments

Underpayments or late payments received after the filing

deadline shall be subject to an interest assessment. Cable

systems must calculate their own interest charge. (A work-

sheet is provided at space Q, page 8.) The interest rate set

for a specific accounting period is the U.S. Treasury Current

Value of Funds Rate in effect on the first business day after

the close of the filing deadline for that accounting period.

Cable systems may obtain the interest rate for the appli-

cable accounting period(s) by contacting the Licensing Di-

vision at (202) 707-8150.

For underpayments and late payments the interest shall

begin to accrue on the first day after the close of the filing

date for that accounting period. For a late payment the ac-

crual period ends on the date that the statement of account

and proper form of payment are received in the Copyright

Office. For underpayments the accrual period ends on the

date appearing on the electronic payment, provided that

the remittance is received in the Copyright Office within five

business days of that date. Note: The Office shall not re-

quire, nor notify a cable system of, an interest charge of

$5.00 or less.

GENERAL INSTRUCTIONS, FORM SA1-2, PAGE (vi)