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 * * * * *