Rule Clarifies Interest Payments for Late, Underpaid Royalty Payments

by Janette Spencer-Davis, Legal Editor, CCH Copyright Law Reports   

 The Copyright Office has published a final rule amending its rules governing the payment of interest on late or underpaid royalty fees under the Copyright Act. The purpose of the amendment is to clarify when interest for late payments and underpayments is due in light of the Copyright Office's electronic funds transfer requirement. A final rule requiring that submission of royalty fees be made by electronic transfer (EFT) was published on August 10, 2008. The new EFT regulations eliminated the options of paying copyright royalties by certified or cashier's check. According to the new amendment, all royalty payments made by EFT must be made the day they are due, and interest will begin to accrue the next day for all late-filed submissions and on royalties that are underpaid. The rule became effective on May 20, 2008 (73 Federal Register 29071, May 20, 2008).

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