By: Lucio S.B. No. 526 A BILL TO BE ENTITLED AN ACT 1-1 relating to certain business practices used in the collection of 1-2 copyright royalties; providing penalties. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. SHORT TITLE. This Act may be cited as the 1-5 Copyright Royalty Collection Practices Act. 1-6 SECTION 2. DEFINITIONS. In this Act: 1-7 (1) "Copyright owner" means the owner of a copyright 1-8 of a nondramatic musical work recognized and enforceable under the 1-9 copyright laws of the United States pursuant to Title 17 of the 1-10 United States Code, Pub. L. 94-554 (17 U.S.C. Section 101 et seq.). 1-11 (2) "Performing rights society" means an association 1-12 or corporation that licenses the public performance of nondramatic 1-13 musical works on behalf of copyright owners, such as the American 1-14 Society of Composers, Authors and Publishers (ASCAP); Broadcast 1-15 Music, Inc. (BMI); and SESAC, Inc. (SESAC). 1-16 (3) "Proprietor" means the owner or operator of a 1-17 retail establishment, restaurant, inn, bar, tavern, or other 1-18 similar place of business located in this state in which the public 1-19 may assemble and in which nondramatic musical works may be 1-20 performed, broadcast, or otherwise transmitted. 1-21 (4) "Royalty" or "royalties" means the fees payable to 1-22 a performing rights society for public performance rights. 1-23 SECTION 3. LICENSING NEGOTIATIONS. No performing rights 2-1 society shall offer to enter into or enter into a contract for the 2-2 payment of royalties by a proprietor unless, at the time of the 2-3 offer, or any time thereafter, but no later than 72 hours prior to 2-4 the execution of that contract, it provides to the proprietor, in 2-5 writing, the following: 2-6 (1) a schedule of the rates and terms of royalties 2-7 under the contract; 2-8 (2) at the request of the proprietor, the opportunity 2-9 to review the most current available list of the members or 2-10 affiliates represented by the society; 2-11 (3) notice that it will make available, on written 2-12 request of any proprietor, at the sole expense of the proprietor, 2-13 the most current available listing of the copyrighted musical works 2-14 in the performing rights society's repertory, provided that the 2-15 notice specifies the means by which such information can be 2-16 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 (1) be in writing; 2-21 (2) be signed by the parties; 2-22 (3) include at least the following information: 2-23 (A) the proprietor's name and business address 2-24 and the name and location of each place of business to which the 2-25 contract applies; 3-1 (B) the name and address of the performing 3-2 rights society; 3-3 (C) the duration of the contract; and 3-4 (D) the schedule of rates and terms of the 3-5 royalties to be collected under the contract, including any sliding 3-6 scale or schedule for any increase or decrease of those rates for 3-7 the duration of that contract. 3-8 SECTION 5. IMPROPER LICENSING PRACTICES. No performing 3-9 rights society, or any agent or employee thereof shall collect or 3-10 attempt to collect from a proprietor licensed by that performing 3-11 rights society a royalty payment except as provided in a contract 3-12 executed pursuant to the provisions of this Act. 3-13 SECTION 6. CIVIL REMEDIES: INJUNCTION. Any person who 3-14 suffers a violation of this Act may bring an action to recover 3-15 actual damages and reasonable attorney's fees and seek an 3-16 injunction or any other remedy available at law or in equity. 3-17 SECTION 7. APPLICATION. This Act shall not apply to 3-18 contracts between performing rights societies and broadcasters 3-19 licensed by the Federal Communications Commission, or to contracts 3-20 with cable operators, programmers, or other transmission services. 3-21 This Act does not apply to any conduct engaged in for the 3-22 enforcement of Section 35.94, Business & Commerce Code, or to the 3-23 copyright owners of motion picture or audiovisual works. 3-24 SECTION 8. SEVERABILITY. If any provision of this Act or 3-25 its application to any person or circumstance is held invalid, the 4-1 invalidity does not affect other provisions or applications of this 4-2 Act that can be given effect without the invalid provision or 4-3 application, and to this end the provisions of this Act are 4-4 declared to be severable. 4-5 SECTION 9. EFFECTIVE DATE. This Act takes effect September 4-6 1, 1995. 4-7 SECTION 10. EMERGENCY. The importance of this legislation 4-8 and the 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.