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Register of Copyrights Statement on FY 2013 Budget Request

Register of Copyrights Statement on FY 2013 Budget Request

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Published by: Sunlight Foundation on Feb 07, 2012
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01/09/2014

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StatementofMariaA.PallanteRegisterofCopyrightsandDirectorUnitedStatesCopyrightOfficeSubcommitteeonLegislativeBranchCommitteeonAppropriationsUnitedStatesHouseofRepresentatives112thCongress,2
nd
SessionFebruary7,2012Fiscal2013BudgetRequestMr.Chairman,Mr.Honda,andMembersoftheSubcommittee:Thankyoufortheopportunitytopresentthefiscal2013budgetrequestoftheUnitedStatesCopyrightOffice.Wedeeplyrespecttheneedtoengageinresponsiblefiscalmanagementintheseausteretimes.TheCopyrightOffice,alreadyaleanoperation,doesnotseekadditionalFTEsorfundingfornewprojects,butwedohopetoensurethatourexistingstaffiscompensatedcompetitivelysoastomaintainastrong,talentedworkforcethatwillsustaintheCopyrightOfficeinthe21
st
century.Ascopyrightissuesbecomemoreubiquitous,andastheOfficechartsacourseforthefuture,itwillneedtopursueintelligentgrowthtoensurethatitcanmeettheneedsofthenationalcopyrightsystemwellintothefuture.Forfiscal2013,ourrequestsareasfollows:1)A2.2%increase($0.999million)overFY12tosupportmandatorypay-relatedandpricelevelincreasesaffectingadministrationoftheOffice'scorebusinesssystemsandpublicservices;2)AI.S%increase($0.093million)overFY12inoffsettingcollectionauthorityfortheCopyrightLicensingDivisiontosupportmandatorypay-relatedandpricelevelincreasesaffectingtheadministrationoftheOffice'slicensingfunctions;and3)$2milliontorestoretheCopyrightOffice'sbasefunding.'
ProgramOverview
TheU.S.CopyrightOfficeplaysacriticalroleinpromotinganddisseminatingAmericanworksofauthorshipandinsustaininglargeandsmallbusinessesintheinformation,entertainment,andtechnologysectors.Itadministersthenationalcopyrightregistrationandrecordationsystems(andexercisesassociatedregulatoryauthority)inaccordancewithTitle17
,Theenactedbudgetforfiscal2012directedtheCopyrightOfficetoutilizeno-yearfunding(collectedfromfeesforservices)tooffsetexpenses,effectivelyreducingourspendingratioofappropriateddollarstofeesatthesametimethatfeesandreceiptswerelowerthananticipated.Toensuresufficientfundingforoperationsinfiscal2013,includingtheabilitytocovernecessarystaffingandcriticaltechnologyupgradeswhenfeesfluctuate,theOfficerequestsrestorationofitsbaseappropriations.Asoutlinedin
PrioritiesandSpecialProjectsoftheUnitedStatesCopyrightOfJlce:2011-2013
(www.copyrightgov/docs/priorities.pdO,theOfficeisinthemidstofamulti-yearevaluationoffees,services,technologyandotherissuesthatwillinformitsfuturestrategiesforintelligentgrowth.
 
U.S.CopyrightOfficeBudgetRequest-Fiscal2013Page2of6oftheU.S.Code.TheOffice'sregistrationsystemandthecompanionrecordationsystemconstitutetheworld'slargestdatabaseofcopyrightedworksandcopyrightownershipinformation.IntermsofthelargerU.S.economy,manyauthors,composers,bookandsoftwarepublishers,filmandtelevisionproducers,andcreatorsofmusicalworksdependontheregistrationsystemtoprotecttheircreativeworksandbusinessinterests.Basedonastudyreleasedin20IIusingdatafrom20I0,
2
thesecoresectors-whoseprimarypurposeistoproduceanddistributecreativeworks-accountformorethan6.36%oftheU.S.domesticgrossproduct,ornearly$932billion.Thecorecopyrightindustriesalsoemployed5.1millionworkers(3.93%ofU.S.workers),andthatnumberdoublestoover10.6millionpeople(8.19%oftheU.S.workforce)whentheworkersthathelpandsupportthedistributionoftheseworksareaddedintotheequation.
Law&
PolicyTheRegisterofCopyrightsistheprincipaladvisortoCongressonissuesofdomesticandinternationalcopyrightpolicy.Sheworkscloselywithbothcopyrightownersandusersofcopyrightedmaterialstosustainaneffectivecopyrightlaw-onissuesrangingfromenforcementtofairuse.Throughitspolicywork,theCopyrightOfficeprovidesleadershipandtechnicalexpertisetoensurethatthecopyrightlawstaysrelevantandupdated,notonlytoprotectauthorsinthe21
st
century,butalsotoensureupdatesforusersofcopyrightedworks.Theseincludeappropriateexceptionsforlibraries,personswhoareblind,andcertainnoncommercialeducationalactivities.TheCopyrightOfficeparticipatesinimportantU.S.tradenegotiationsrelatingtointellectualproperty(e.g.,treatiesandfreetradeagreements)atboththebilateralandmultilaterallevels.ItalsoworkswiththeDepartmentofJusticeoncriticalcopyrightcases.
Fisca/20ll
Infiscal2011,theOfficeprovidedongoingassistancetoCongressonanumberofcomplexissuesanddeliveredamajorstudyonmarket-basedalternativestostatutoryliceasesforcableandsatelliteretransmission.TheRegistertestifiedtwiceonmajorcopyrightlegislation,on(1)enforcementmeasurestocombattheoperatorsofillegal,infringingwebsitestraffickingininfringingcopyrightedworks,suchasmovies,music,books,andsoftware;and(2)newprovisionsthatwouldupdatethecriminalpenaltiesforinfringementoftheexclusiverightofpublicperformancethatoccursthroughthestreamingofthework(e.g.,atelevisionprogramorlivesportingevent)tomakethepenaltiessimilartothoseforinfringementbasedonthedistributionright.TheOfficeparticipatedinmajornegotiationsattheWorldIntellectualPropertyOrganizationandwithmajortradingpartners.Onthelitigationfront,theDepartmentofJusticecalledupontheOfficeonseveralimportantissues,includingchallengestotheconstitutionalityofcopyrightlawamendments,interpretationofthefirstsatedoctrine,andissuesrelatedtotheimportationofcopyrightedworks.
2
StephenE.Siwek,
CopyrightIndustriesinthe
u.s.
Economy:The2011Report,
prepared
by
Economists,Inc.fortheInternationalIntellectualPropertyAlliance(201
1).
 
U.S.CopyrightOfficeBudgetRequest-Fiscal2013Page3of6
Registration&Recordation
Thecopyrightregistrationandrecordationsystemsprotect,anddocumentforthepublic,adiversearrayofAmericanauthorship,includingmotionpictures,software,books,musicalcompositions,soundrecordings,photography,andfineart,aswellasdatabases,websites,andotheronlineworks.TheOfficereachedasignificantmilestoneinfiscal20IIbyreturningtonormallevelsofprocessingandclaimcompletionandeliminatingthebacklog.Atthestartoffiscal2011,ithadapproximately380,000claimsawaitingprocessing,andreceivedanadditional539,332claims.TheOfficeclosed734,256claimsduringtheyear-nearly195,000morethanitreceived.Itendedtheyearwithitsstandardworkloadofapproximately185,000claimsonhand,ofwhichapproximatelyhalfareawaitingfurtheractionfromtheclaimantsandhalfareawaitingOfficeaction.ThoseintheOffice'sworkingqueuewill,onaverage,beprocessedwithintwotofourmonths,dependingonthecomplexityoftheclaim.
Licensing
TheCopyrightOfficehelpsadministercertaincompulsoryandstatutorylicenseprovisionsoftheU.S.CopyrightAct,whichpertaintosettingroyaltyratesandtermsanddeterminingthedistributionofroyaltiesforcertaincopyrightstatutorylicenses.Theselicensescoveractivitiesincludingsecondarytransmissionsofradioandtelevisionprogramsbycabletelevisionsystemsandsecondarytransmissionsofnetworkandnon-networkstationsbysatellitecarriers.TheOffice'sprimaryclientswithrespecttothestatutorylicensesarecopyrightownersandusersofcopyrightedworksthataresubjecttostatutorycopyrightlicenses.TheOfficeisresponsibleforcollectingandinvestingroyaltyfeesforlaterdistributiontocopyrightowners,examiningrelateddocuments,providinginformationtovariousconstituenciesaspartofitspublicaffairsprogram,andrecordingdocumentsforseverallicensesforwhichroyaltiesarehandledbyoutsideparties.
In
fiscal2011,theOffice'sLicensingDivisionbeganamultiyearbusinessprocessreengineeringprogramdesignedtodecreaseprocessingtimesforstatementsofaccount,implementon-linefilingprocesses,andimprovepublicaccesstoOfficerecords.Thenewprocesseswillbeimplementedandrefinedthroughoutfiscal2012and2013.
Acquisitions
TheCopyrightOfficealsoadministersthemandatorylegaldepositofworkspublishedintheUnitedStates.
In
fiscal2011,theOfficemanagedthedepositofmorethan700,000copiesofcreativeworksfortheLibrary'scollection,whichtheLibrarywouldotherwisehavehadtopurchase,valuedatapproximately$31million.Becausemoreandmorejournals,magazines,andnewspapersare"borndigital,"theCopyrightOfficehasledaLibrary-wideefforttoobtainandmanageserialsthatpublisherssupplyonlyinelectronicformats.AlthoughtheprojectcurrentlyfocusesonmandatorydepositprovisionsunderTitle17-provisionsthatrequirepublisherstodepositcopiesofcertainworkswiththeLibraryofCongresswithinthreemonthsofpublication-itservesasatestbedfortheintakeofworksbytheLibrarythroughothermechanisms,includingtheregistrationsystem.TheOffice'scurrentworksetsthestagefortheLibrary'selectronicacquisitionstrategy,whichwillultimatelyenhanceanddiversifytheLibrary'scollectionstocaptureandreflectAmericanInternetculture.

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