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<br />I <br />I <br />. ! <br />I <br />I <br />, <br />I <br /> <br />. , <br /> <br />3. <br /> <br />. <br /> <br />signals, and 0.237% to 0.415% for each sIgnal thereafter. <br /> <br />However, for signals not elllglble to be carried prior to the Malrlte decision <br /> <br />but now carried, the rates have gone to 3.75% of the gross basic subscriber revenue <br /> <br />for each signal carried. This obviously Is a dramatic rise In the cost of Importing <br /> <br />signals. For Croup W's system In Columbia Heights this means that an Inflation <br /> <br />adjusted rate will be applied to the t~~ Independent signals now Imported. Had <br /> <br />this system been operating prior to Malrlte these two signals would be permitted. <br /> <br />For each signal after these two the CRT Is now requiring payment of 3.75% of gross <br /> <br />basic subscrIber revenue. <br /> <br />It Is apparent that your copyright liability has grown unexpectedly. Prior <br /> <br />to the CRT revisions you would be payIng 1.805% of gross basic subscriber revenue <br /> <br />for copyright for carrying WTBS, WGN and WOR. After the CRT's adjustments for <br /> <br /> <br />i~flatlon and the new distinction between pre-Malrlte and post Malrlte carriage. <br /> <br />your copyright liability will go to 6.028% of your gross basic subscriber revenue. <br />I should point out that the National Cable Television AssociatIon (N.C.T.A.) <br /> <br />has cautIoned all cable systems from seeking loop holes In the CRT regulations. <br /> <br />Any action perceived by the CRT to be taken merely to avoid higher copyright fees <br /> <br />Is liable for stIff fines and penalties. The N.C.T.A. has also advised that each <br /> <br />system consult their own attorney for an exact definition of the ruling as It <br /> <br />applies to that system's unique circumstances. <br /> <br />last weekend the situation became more confusing. Congress adopted an amend- <br /> <br />ment to the continuing-funding resolution which postponed the Imposition of the <br /> <br />higher fees to March IS, 1983. The amendment would appear to give cable systems <br /> <br />an additional 90 days to rearrange distant signal carriage. However, because the <br /> <br />.CRT does not prorate liability, systems may have to pay the hIgher fees If the <br /> <br />signals were carrIed after January I, 1983. The N.C.T.A. Is seeking to have thIs <br /> <br />Issue clarIfied by the staff at the CRT before Janaury 1. I will, of course, let <br />