PART 390—AMOUNTS OF AND TERMS FOR ADMINISTRATIVE ASSESSMENTS TO FUND MECHANICAL LICENSING COLLECTIVE Authority: 17 U.S.C. 115, 801(b). Source: 85 FR 832, Jan. 8, 2020, unless otherwise noted. § 390.1 Definitions. Administrative assessment Aggregate Sound Recordings Count Allocated Licensees Allocated Licensee Assessment Pool Annual Assessment Annual Calculation Period Annual minimum fee Blanket Licensee Covered activity Digital licensee coordinator DLC ECI Flat Fee Licensees License availability date Licensee Mechanical licensing collective MLC New Licensee Notice of license Notice of nonblanket activity Quarterly Allocation Significant Nonblanket Licensee Startup Assessment Threshold Licensee Threshold Licensee Assessment Pool Unique Sound Recordings Count [86 FR 6568, Jan. 22, 2021, as amended at 88 FR 69039, Oct. 5, 2023] § 390.2 Amount of assessments. (a) 2023 Annual Assessment. (b) 2024 Annual Assessment. (c) Other Annual Assessments. (i) 3 percent; and (ii) The percentage change in the ECI. (2) The MLC shall publish notice on its website of each year's automatic adjustment to the Annual Assessment. The Annual Assessment shall continue from year to year unless and until the Copyright Royalty Judges cause to be published an adjusted administrative assessment pursuant to 17 U.S.C. 115(d)(7)(D)(iv) or (v). [85 FR 832, Jan. 8, 2020, as amended at 88 FR 69039, Oct. 5, 2023] § 390.3 Annual minimum fees. (a) Amounts. (1) In general. (i) Licensees that have a Unique Sound Recordings Count of 10,000 or less during the relevant Annual Calculation Period shall pay $2,500 and shall be Flat Fee Licensees for the respective Annual Assessment; (ii) Licensees that have a Unique Sound Recordings Count of between 10,001 and 25,000 during the relevant Annual Calculation Period shall pay $5,000 and shall be Flat Fee Licensees for the respective Annual Assessment; (iii) Licensees that have a Unique Sound Recordings Count of between 25,001 and 50,000 during the relevant Annual Calculation Period shall pay $10,000 and shall be Flat Fee Licensees for the respective Annual Assessment, where such Annual Calculation Period is for the Annual Assessment for the calendar year 2024 or earlier; otherwise such Licensees shall pay $60,000 and shall be Allocated Licensees for the respective Annual Assessment; (iv) Licensees that have a Unique Sound Recordings Count of between 50,001 and 100,000 during the relevant Annual Calculation Period shall pay $20,000 and shall be Flat Fee Licensees for the respective Annual Assessment, where such Annual Calculation Period is for the Annual Assessment for the calendar year 2024 or earlier; otherwise such Licensees shall pay $60,000 and shall be Allocated Licensees; and (v) Licensees that have a Unique Sound Recordings Count greater than 100,000 during the relevant Annual Calculation Period shall pay an annual minimum fee of $60,000 and shall be Allocated Licensees for the respective Annual Assessment. (2) Download store annual fee. (i) $2,500 if the Licensee has a Unique Sound Recordings Count of 50,000 or less during the relevant Annual Calculation Period. (ii) $5,000 if the Licensee has a Unique Sound Recordings Count of between 50,001 to 100,000 during the prior Annual Calculation Period. (iii) $10,000 if the Licensee has a Unique Sound Recordings Count of between 100,001 to 250,000 during the prior Annual Calculation Period. (iv) $20,000 if the Licensee has a Unique Sound Recordings Count of between 250,001 to 500,000 during the prior Annual Calculation Period. (v) $60,000 if the Licensee has a Unique Sound Recordings Count of greater than 500,000 during the prior Annual Calculation Period. (b) Annual Calculation Period. e.g., (c) Calculation by the MLC. (1) 30 days from receipt of the invoice from the MLC; or (2) January 15th of the respective Annual Assessment year. (d) New licensees. (2) A New Licensee shall initially be deemed a Flat Fee Licensee. When the MLC calculates the Quarterly Allocation with the first calculation period pursuant to § 390.4(b) during which the New Licensee was engaged in covered activities, whether such activities were for all or part of the calculation period, the MLC shall calculate the New Licensee's Unique Sound Recording Count for that calculation period. In the event that such New Licensee has not provided timely reporting, the MLC may instead, in its discretion, use the most recent reporting from that New Licensee for such calculation. If such New Licensee is calculated to have a Unique Sound Recordings Count that exceeds the amount that would qualify it to be a Flat Fee Licensee under paragraph (a)(1) of this section, it shall be deemed an Allocated Licensee for that Quarterly Allocation and the remainder of the calendar year and shall be invoiced and pay the assessment as calculated in § 390.4 for the respective quarters, with such New Licensee's Unique Sound Recordings Count to be included in the Aggregate Sound Recording Count for such quarters. (3) A New Licensee shall be subject to the provisions of paragraphs (a) through (d) of this section, as applicable, to determine the amount and timing of the annual minimum fees owed for the calendar year following the year when the Licensee begins engaging in covered activities, and for such purposes a New Licensee shall be treated as having a Unique Sound Recordings Count of zero for the Annual Calculation Period if it began engaging in covered activities after the end of the Annual Calculation Period. A New Licensee that has been deemed an Allocated Licensee pursuant to paragraph (e)(2) of this section shall be subject to the provisions of paragraphs (a) through (d) of this section, as applicable, to determine its status as a Flat Fee Licensee or Allocated Licensee, for calendar years following the calendar year in which it is first deemed an Allocated Licensee. [86 FR 6569, Jan. 22, 2021, as amended at 88 FR 69039, Oct. 5, 2023] § 390.4 Annual Assessment allocation and payment. (a) Allocation formula. (1) Allocated Licensee Assessment Pool. (2) Threshold Licensee Assessment Pool. (b) Calculation periods and timing. (c) Invoicing and payment of allocation Deadline for payment. (ii) Invoices from the MLC to Licensees shall be deemed received on the business day after electronic transmission. (2) Format of invoices. (A) Invoice issuance date; (B) Invoice payment due date; (C) Amount owed, by share of Allocated Licensee Assessment Pool and Threshold Licensee Assessment Pool; (D) Offset of minimum fee payment against quarterly assessment; and (E) Amount of credit for un-recouped minimum fee. (ii) Invoices issued as a result of an allocation adjustment shall include all of the information set forth in paragraphs (c)(2)(i)(A) through (F) of this section that may be relevant, as well as an explanation of the change from the prior invoices that are affected, and the reason(s) for the adjustment. (d) Late reporting. (e) Recalculation of Allocated Assessment invoices. (f) Recoupment of minimum- fee. (g) Reports to DLC. (h) 2023 Annual Assessment allocation and payment. (1) The MLC will collect from Licensees the amount of $30,235,650 pursuant to the standard procedures outlined in the other provisions of this part for collection of the 2023 Annual Assessment, including the collection of Annual Minimum Fees and Quarterly Allocations. (2) The MLC will collect from Allocated Licensees the amount of $2,664,350 through a separately invoiced, one-time collection, with no minimum fees applied. The amount shall be divided into two equal parts and allocated among Licensees using the formulas set forth in paragraphs (a)(1) and (a)(2) of this section. The calculation period shall be the first three months of 2023. The MLC may invoice for this collection at any time, with payment to be due no later than 45 days after receipt of the invoice from the MLC. [86 FR 6570, Jan. 22, 2021, as amended at 88 FR 69039, Oct. 5, 2023]