In 2008 the Copyright Royalty Judges (CRJ) set the royalty rate that satellite radio services must pay to copyright owners for the use of sound recordings during the years 2007-2012. SoundExchange, an organization established to collect and distribute royalties to the copyright owners, appeals the CRJ’s determination, arguing it is arbitrary, capricious, and not supported by substantial evidence. We affirm the CRJ’s determination with respect to the royalty rate for the use of sound recordings but reverse with respect to the CRJ’s failure to set a royalty rate for “ephemeral copies” of sound recordings.
