FR 2021-03533

The recent final rule introduced by the U.S. Copyright Office allows for the group registration of musical works and sound recordings, among other related works, when they are distributed together on an album. This new registration option, known as "Group Registration of Works on an Album of Music" (GRAM), is intended to make the registration process more efficient and is set to become effective on March 26, 2021.

General Summary

The GRAM rule provides a process where applicants can register up to twenty musical works and sound recordings from the same album. This rule integrates new online applications designed to streamline the registration process and establish a filing fee of $65. The provision builds on prior proposals and has been adjusted based on feedback from stakeholders.

Significant Issues and Concerns

One notable issue arises from the rule's terms "album" and "release," which could create confusion given the evolving dynamics of music distribution, particularly with streaming services. Traditional definitions of "album" might not fully encompass modern distribution practices like playlists or digital release strategies.

Moreover, the requirement for separate applications for musical works and sound recordings could introduce complexity, potentially deterring individuals or smaller organizations not accustomed to such processes. This could limit access for less experienced users interested in the registration process.

Additionally, the rule addresses deposit requirements by referencing the "best edition," a term that may baffle users who lack familiarity with legal or copyright-specific language. This could unintentionally lead to noncompliance or errors in submissions.

Impact on the Public

For the general public, this rule translates to a potentially smoother copyright registration process for content creators. Independent musicians, particularly those distributing their work digitally, might find the GRAM option a practical method of protecting their creative content in a consolidated manner.

However, there are concerns that the associated fee structure lacks clarity for future reviews, which might affect fairness over time as market dynamics evolve.

Impact on Specific Stakeholders

For stakeholders like independent artists, record labels, and even major music publishers, GRAM could offer significant benefits by cutting down on administrative burdens and simplifying the registration of multiple works in a cohesive package. Yet, the lack of an option for registering both musical works and sound recordings in the same application could be a drawback, especially for those preferring a more streamlined process where all related works are submitted together.

There is also a potential impact on less savvy applicants who might require additional guidance to navigate separate applications and specific requirements, such as deposit submissions and understanding joint authorship complexities.

Conclusion

Overall, while the new GRAM rule by the U.S. Copyright Office aims to simplify and update the registration process for musical works on albums, it also introduces new challenges and complexities. The rule's ability to accommodate modern music distribution and its implications for diverse stakeholders will likely depend on future clarifications and adjustments based on real-world use and feedback from the creative community.

The document discusses a new group registration option created by the U.S. Copyright Office, known as the GRAM option, which allows for the registration of musical works and sound recordings contained on an album. As part of this new registration option, several financial aspects are highlighted and explored.

Filing Fee Structure

Initially, the Notice of Proposed Rulemaking (NPRM) suggested a filing fee of $55 for GRAM registrations, aligning it with the Standard Application fee at the time. However, there was a proposal to increase the Standard Application fee to $75, which if adopted, would also apply to GRAM claims. Ultimately, the final proposed fee schedule submitted to Congress recommended reducing the proposed increase to $65. This decision emphasized the importance of maintaining consistency with the Standard Application fee due to the limitations in the registration system, which does not support varied pricing.

This fee structure directly addresses concerns related to administrative efficiency and the need for simplicity in application processes. However, the document notes that this might not accommodate the varying complexities of different registration applications, which could deter less experienced users from utilizing such services.

Potential for Additional Fees

There is an acknowledgment from comments received that there might be room for more nuanced pricing. For instance, stakeholders like A2IM and RIAA proposed a tiered fee structure, where a base number of tracks could be included in the base registration fee, and additional tracks could incur a surcharge of $1 to $2 per track. This flexible approach could provide fairness and accessibility to creators with larger albums.

Fee Evaluation and Revisions

The document lacks specifics on how frequently the fees will be reviewed or adjusted, despite suggesting that the initial fee will be observed and potentially revisited. This absence of a clear review mechanism could impact user perception of fairness over time, especially if administrative processes change or new concerns arise about the adequacy of fee levels.

In summary, the financial considerations within the GRAM option's implementation address both the need for a standardized fee and the flexibility to potentially accommodate a range of album sizes and compositions. However, the financial strategy would benefit from clearly defined procedures for ongoing evaluation and potential fee adjustments to ensure it remains equitable and applicable to a diverse range of users.