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.