BILL ANALYSIS C.S.S.B. 526 By: Lucio Economic Development 04-12-95 Committee Report (Substituted) BACKGROUND Restaurants, retail shops, professional offices, and other places open to the public are required by federal law to pay copyright fees for playing music. Music licensing organizations such as Broadcast Music Inc. and the American Society of Composers, Authors, and Publishers act as intermediaries between the artists and those establishments which broadcast public performances of their members' works. Background music, music used in television broadcasts, karaoke, and music played on the telephone while callers are on hold fall under the application of this federal statute. PURPOSE As proposed, C.S.S.B. 526 regulates royalty contracts between performing rights societies and proprietors. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. SHORT TITLE. Copyright Royalty Collection Practices Act. SECTION 2. DEFINITIONS. Defines "copyright owner," "performing rights society," "proprietor," and "royalty" or "royalties." SECTION 3. LICENSING NEGOTIATIONS. Prohibits a performing rights society (society) from offering to enter into or entering into a contract for royalty payments by a proprietor unless it provides to the proprietor, in writing, between the time of the offer and 72 hours prior to execution of the contract, schedules of royalties; the opportunity to review the most current available list of members or affiliates represented by the society; and notice that it will make available at the written request and expense of the proprietor, the most current available listing of the copyrighted musical works in the society's repertory. Requires the notice to specify the means by which the information can be secured. SECTION 4. FORM OF CONTRACT. Requires every royalties payment contract between a society and a proprietor to be in writing, be signed by the parties, and include certain provisions. SECTION 5. IMPROPER LICENSING PRACTICES. Prohibits a society, agent, or employee thereof from collecting or attempting to collect any royalty payment from a proprietor licensed by that society except as provided in a contract executed pursuant to provisions of this Act. SECTION 6. CIVIL REMEDIES: INJUNCTION. Authorizes any person who suffers a violation of this chapter to bring an action to recover actual damages and attorney's fees and seek an injunction or any other remedy available at law or in equity. SECTION 7. APPLICATION. Prohibits this Act from applying to contracts between societies and broadcasters licensed by the Federal Communications Commission or to contracts with cable operators, programmers, or other transmission services. Provides that this Act does not apply to any conduct engaged in for the enforcement of the Section 35.94, Business and Commerce Code, or to the copyright owners of motion picture or audiovisual works. SECTION 8. Severability clause. SECTION 9. Effective date: September 1, 1995. SECTION 10. Emergency clause.