74R10074 T
By Eiland H.B. No. 1530
Substitute the following for H.B. No. 1530:
By Corte C.S.H.B. No. 1530
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to certain business practices used in the collection of
1-3 copyright royalties, providing penalties.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. SHORT TITLE. This Act may be cited as the
1-6 Copyright Royalty Collection Practices Act.
1-7 SECTION 2. DEFINITIONS. As used in this act:
1-8 (a) "Copyright owner" means the owner of a copyright of a
1-9 nondramatic musical work recognized and enforceable under the
1-10 copyright laws of the United States pursuant to Title 17 of the
1-11 United States Code, Pub. L. 94-554 (17 U.S.C. 101 et seq.).
1-12 (b) "Performing rights society" means an association or
1-13 corporation that licenses the public performance of nondramatic
1-14 musical works on behalf of copyright owners, such as the American
1-15 Society of Composers, Authors and Publishers (ASCAP), Broadcast
1-16 Music, Inc. (BMI), and SESAC, Inc. (SESAC).
1-17 (c) "Proprietor" means the owner or operator of a retail
1-18 establishment, restaurant, inn, bar, tavern or other similar place
1-19 of business located in this State in which the public may assemble
1-20 and in which nondramatic musical works may be performed, broadcast,
1-21 or otherwise transmitted.
1-22 (d) "Royalty" or "royalties" means the fees payable to a
1-23 performing rights society for public performance rights.
2-1 SECTION 3. LICENSING NEGOTIATIONS. No performing rights
2-2 society shall offer to enter into, or enter into, a contract for
2-3 the payment of royalties by a proprietor unless, at the time of the
2-4 offer, or any time thereafter, but no later than seventy-two hours
2-5 prior to the execution of that contract, it provides to the
2-6 proprietor, in writing, the following:
2-7 (a) a schedule of the rates and terms of royalties under the
2-8 contract;
2-9 (b) upon the request of the proprietor, the opportunity to
2-10 review the most current available list of the members or affiliates
2-11 represented by the society;
2-12 (c) notice that it will make available, upon written request
2-13 of any proprietor, at the sole expense of the proprietor, the most
2-14 current available listing of the copyrighted musical works in such
2-15 performing rights society's repertory, provided that such notice
2-16 shall specify the means by which such information can be secured.
2-17 SECTION 4. FORM OF CONTRACT. Every contract between a
2-18 performing rights society and proprietor for the payment of
2-19 royalties executed in this State shall:
2-20 (a) be in writing;
2-21 (b) be signed by the parties;
2-22 (c) include at least the following information:
2-23 (1) the proprietor's name and business address and the
2-24 name and location of each place of business to which the contract
2-25 applies;
3-1 (2) the name and address of the performing rights
3-2 society;
3-3 (3) the duration of the contract; and
3-4 (4) the schedule of rates and terms of the royalties
3-5 to be collected under the contract, including any sliding scale or
3-6 schedule for any increase or decrease of those rates for the
3-7 duration of that contract.
3-8 SECTION 5. IMPROPER LICENSING PRACTICES. No performing
3-9 rights society, or any agent or employee thereof shall:
3-10 (a) collect, or attempt to collect, from a proprietor
3-11 licensed by that performing rights society a royalty payment except
3-12 as provided in a contract executed pursuant to the provisions of
3-13 this act.
3-14 SECTION 6. CIVIL REMEDIES: INJUNCTION. Any person who
3-15 suffers a violation of this chapter may bring an action to recover
3-16 actual damages and reasonable attorney's fees and seek an
3-17 injunction or any other remedy available at law or in equity.
3-18 SECTION 7. APPLICATION. This act shall not apply to
3-19 contracts between performing rights societies and broadcasters
3-20 licensed by the Federal Communications Commission, or to contracts
3-21 with cable operators, programmers or other transmission services.
3-22 This act does not apply to any conduct engaged in for the
3-23 enforcement of Texas Business and Commerce Code Sec. 35.94 or to
3-24 the copyright owners of motion picture or audiovisual works.
3-25 SECTION 8. SEVERABILITY. If any provision of this Act or
4-1 its application to any person or circumstance is held invalid, the
4-2 invalidity does not affect other provisions or applications of this
4-3 Act that can be given effect without the invalid provision or
4-4 application, and to this end the provisions of this act are
4-5 declared to be severable.
4-6 SECTION 9. This Act takes effect September 1, 1995.
4-7 SECTION 10. The importance of this legislation and the
4-8 crowded condition of the calendars in both houses create an
4-9 emergency and an imperative public necessity that the
4-10 constitutional rule requiring bills to be read on three several
4-11 days in each house be suspended, and this rule is hereby suspended.