1-1 By: Lucio S.B. No. 526 1-2 (In the Senate - Filed February 10, 1995; February 14, 1995, 1-3 read first time and referred to Committee on Economic Development; 1-4 April 12, 1995, reported adversely, with favorable Committee 1-5 Substitute by the following vote: Yeas 10, Nays 0; April 12, 1995, 1-6 sent to printer.) 1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 526 By: Lucio 1-8 A BILL TO BE ENTITLED 1-9 AN ACT 1-10 relating to certain business practices used in the collection of 1-11 copyright royalties; providing penalties. 1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-13 SECTION 1. SHORT TITLE. This Act may be cited as the 1-14 Copyright Royalty Collection Practices Act. 1-15 SECTION 2. DEFINITIONS. In this Act: 1-16 (1) "Copyright owner" means the owner of a copyright 1-17 of a nondramatic musical work recognized and enforceable under the 1-18 copyright laws of the United States pursuant to Title 17 of the 1-19 United States Code, Pub. L. 94-554 (17 U.S.C. Section 101 et seq.). 1-20 (2) "Performing rights society" means an association 1-21 or corporation that licenses the public performance of nondramatic 1-22 musical works on behalf of copyright owners, such as the American 1-23 Society of Composers, Authors and Publishers (ASCAP); Broadcast 1-24 Music, Inc. (BMI); and SESAC, Inc. (SESAC). 1-25 (3) "Proprietor" means the owner or operator of a 1-26 retail establishment, restaurant, inn, bar, tavern, or other 1-27 similar place of business located in this state in which the public 1-28 may assemble and in which nondramatic musical works may be 1-29 performed, broadcast, or otherwise transmitted. 1-30 (4) "Royalty" or "royalties" means the fees payable to 1-31 a performing rights society for public performance rights. 1-32 SECTION 3. LICENSING NEGOTIATIONS. No performing rights 1-33 society shall offer to enter into or enter into a contract for the 1-34 payment of royalties by a proprietor unless, at the time of the 1-35 offer, or any time thereafter, but no later than 72 hours prior to 1-36 the execution of that contract, it provides to the proprietor, in 1-37 writing, the following: 1-38 (1) a schedule of the rates and terms of royalties 1-39 under the contract; 1-40 (2) at the request of the proprietor, the opportunity 1-41 to review the most current available list of the members or 1-42 affiliates represented by the society; 1-43 (3) notice that it will make available, on written 1-44 request of any proprietor, at the sole expense of the proprietor, 1-45 the most current available listing of the copyrighted musical works 1-46 in the performing rights society's repertory, provided that the 1-47 notice specifies the means by which such information can be 1-48 secured. 1-49 SECTION 4. FORM OF CONTRACT. Every contract between a 1-50 performing rights society and proprietor for the payment of 1-51 royalties executed in this state shall: 1-52 (1) be in writing; 1-53 (2) be signed by the parties; 1-54 (3) include at least the following information: 1-55 (A) the proprietor's name and business address 1-56 and the name and location of each place of business to which the 1-57 contract applies; 1-58 (B) the name and address of the performing 1-59 rights society; 1-60 (C) the duration of the contract; and 1-61 (D) the schedule of rates and terms of the 1-62 royalties to be collected under the contract, including any sliding 1-63 scale or schedule for any increase or decrease of those rates for 1-64 the duration of that contract. 1-65 SECTION 5. IMPROPER LICENSING PRACTICES. No performing 1-66 rights society, or any agent or employee thereof shall collect or 1-67 attempt to collect from a proprietor licensed by that performing 1-68 rights society a royalty payment except as provided in a contract 2-1 executed pursuant to the provisions of this Act. 2-2 SECTION 6. CIVIL REMEDIES: INJUNCTION. Any person who 2-3 suffers a violation of this Act may bring an action to recover 2-4 actual damages and reasonable attorney's fees and seek an 2-5 injunction or any other remedy available at law or in equity. 2-6 SECTION 7. APPLICATION. This Act shall not apply to 2-7 contracts between performing rights societies and broadcasters 2-8 licensed by the Federal Communications Commission, or to contracts 2-9 with cable operators, programmers, or other transmission services. 2-10 This Act does not apply to any conduct engaged in for the 2-11 enforcement of Section 35.94, Business & Commerce Code, or to the 2-12 copyright owners of motion picture or audiovisual works. 2-13 SECTION 8. SEVERABILITY. If any provision of this Act or 2-14 its application to any person or circumstance is held invalid, the 2-15 invalidity does not affect other provisions or applications of this 2-16 Act that can be given effect without the invalid provision or 2-17 application, and to this end the provisions of this Act are 2-18 declared to be severable. 2-19 SECTION 9. EFFECTIVE DATE. This Act takes effect September 2-20 1, 1995. 2-21 SECTION 10. EMERGENCY. The importance of this legislation 2-22 and the crowded condition of the calendars in both houses create an 2-23 emergency and an imperative public necessity that the 2-24 constitutional rule requiring bills to be read on three several 2-25 days in each house be suspended, and this rule is hereby suspended. 2-26 * * * * *