to the calendar or fiscal year selected. Enter the calendar- or fiscal-year
designation, including the beginning and ending month, day, and year(s)
of the fourth quarter.
Space B · Name, Address, and Filing Status
The full legal name of the manufacturing or importing party will be included,
together with the fictitious or assumed name, if any, used by the person or
entity for the purpose of conducting the business of manufacturing and
distributing or importing and distributing digital audio recording products.
In addition, space B requires the full mailing address of the manufactur-
ing or importing party, including a specific number and street name or rural
route of the place of business of this person or entity. A post office box or
similar designation will not be sufficient for this purpose except where it is
the only address that can be used in that geographic location. Space B also
requires a designation of the manufacturing or importing party’s status,
such as manufacturer, importer, or manufacturer and importer.
Space C · Computation of Royalty Fee
:
In space C, the total number of units distributed should be
aggregated for the entire year for each transfer price, source code, fee code,
series or model number, technology, and product category that is different.
Example
:
In the quarterly statement of account for the first quarter, you
reported in space C, 25,000 units distributed (column 7) at the transfer price
of $275 (column 6); the product categories (column 1) was Portable Personal
Recorders, technologies (column 2) DCC, series or model number (column
3) 001, fee code (column 4) B, source code (column 5) M. In the second,
third, and fourth quarters everything was the same, except the transfer price
changed to $250. For the annual statement of account in space C, column 6,
you would enter “$275”; in column 7 you would enter “25,000”; on the next
line in column 6, you would enter “$250”; and in column 7, you would enter
“75,000.” The information in columns 1–5 would be the same for both lines.
Column 1: Product Categories ·
Enter the product category of the digital
audio recording products manufactured and distributed or imported and
distributed by the manufacturing or importing party during the account-
ing year covered by the statement. Product categories include hand-held
portable integrated combination units (“boomboxes”), portable personal
recorders, stand-alone home recorders (“tape decks”), home combination
systems (“rack systems”), automobile recorders, configurations of tape me-
dia (standard cassettes or microcassettes), and configurations of disc media,
such as 2½", 3", and 5" discs.
Column 2
:
Technologies ·
Enter the technology of the digital audio record-
ing products manufactured and distributed or imported and distributed by
the manufacturing or importing party during the accounting year covered
by the statement. The technology of a device or medium is a product type
distinguished by different technical processes for digitally recording musi-
cal sounds, such as digital audio recorders (DAT), digital compact cassettes
(DCC), or different disc-based technologies such as minidisc (MD).
Column 3
:
Series or Model Number ·
Enter the model (or, in the case of
media, series) numbers assigned by the manufacturer to the digital audio
recording products manufactured and distributed or imported and distrib-
uted by the manufacturing or importing party during the accounting year
covered by the statement.
Column 4
:
Fee Code
· Enter the fee code that is associated with the product.
Fee Code A applies to a digital audio recording device distributed as a
physically integrated unit.
Fee Code B applies to a device that is not a physically integrated unit where
substantially similar separate components have been distributed separately at
any time during the previous four quarters using the average transfer price.
Fee Code C applies to a device that is not a physically integrated unit
where such separate components have not been distributed separately at
any time during the preceding four quarters using the proportional value
of such devices to the combination as a whole.
Fee Code D applies to a stand-alone digital audio recording device.
Fee Code E applies to a digital audio recording medium.
:
When computing the royalty fee for the recording medium, do
not complete columns 8, 9, 12, or 13.
Column 5
:
Source Code ·
Enter the source code for the product category.
Enter an M if the product was manufactured in the United States. Enter an
I if the product was imported into the United States.
Column 6
:
Transfer Price ·
Enter the transfer price of the product. The
transfer price for imported products is the actual entered value at United
States Customs (exclusive of any freight, insurance, and applicable duty).
For domestic products, the transfer price of a product is the manufacturer’s
transfer price (FOB the manufacturer, and exclusive of any direct sales taxes
or excise taxes incurred in connection with the sale). If the transferor and
transferee are related entities or within a single entity, the transfer price
shall not be less than a reasonable arms-length price under the principles
of the regulations adopted pursuant to section 482 of the Internal Revenue
Code of 1986.
Column 7
:
Number of Units Distributed ·
Enter the number of units dis-
tributed. “Distribute” means to sell, lease, or assign a product to consumers
in the United States, or to sell, lease, or assign a product in the United States
for ultimate transfer to consumers in the United States.
Column 8
:
Minimum Fee Per Unit ·
Enter the statutory minimum fee of
$1.00 for all digital recording devices.
Column 9
:
Minimum Fee ·
Multiply the number of units distributed (col-
umn 7) by the minimum fee per unit (column 8) and enter the result in
column 9 for the minimum fee.
Column 10
:
Rate ·
Enter the statutory royalty rate of 2 percent for digital
audio recording devices or 3 percent for digital audio recording media.
Column 11
:
Rate Fee ·
Multiply the transfer price (column 6) by the num-
ber of units distributed (column 7) and then multiply the result by the rate
(column 10) and enter that figure in column 11 for the rate fee.
Column 12
:
Maximum Fee Per Unit ·
Enter the statutory maximum fee
per unit of $8.00 for non-physically integrated units and $12.00 for physi-
cally integrated units.
Column 13
:
Maximum Fee ·
Multiply the number of units distributed
(column 7) by the maximum fee per unit (column 12) and enter the result
in column 13 for the maximum fee.
Column 14
:
Royalty Fee ·
The manufacturing or importing party must pay
either the rate fee, the minimum fee, or the maximum fee. To determine the
appropriate royalty fee for digital audio recording devices:
• Enter the rate fee (column 11) if it is greater than the minimum fee
(column 9) and less than the maximum fee (column 13). —or—
• Enter the minimum fee (column 9) if the rate fee (column 11) is less than
or equal to the minimum fee (column 9). —or—
• Enter the maximum fee (column 13) if the rate fee (column 11) is greater
than or equal to the maximum fee (column 13).
Line 1 · Total column 14 and enter the amount in line 1. This figure is
the computation of the year’s total royalty fee for devices and media. It
will be adjusted.
Line 2 · Provides for a “reduction” adjustment of your year’s royalty fee
as calculated in space D.
Line 3 · Provides for a “credit” adjustment in space E to your year’s roy-
alty fee.
Line 4 · You may subtract the royalty fee that you paid to the Copyright
Office for quarters 1, 2, and 3.
:
This gure does not include refunds
received or interest charges paid during these quarters. You must subtract the
total amount of any refunds you received from the Copyright Oce for quarters
1 through 3. Also, you cannot include any interest charges paid to the Copyright
Oce for quarters 1 through 3.
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