[DOCID: f:h2589eh.txt]
105th CONGRESS

  2d Session

                               H. R. 2589

_______________________________________________________________________

                                 AN ACT

 To amend the provisions of title 17, United States Code, with respect
         to the duration of copyright, and for other purposes.




























105th CONGRESS
  2d Session
                                H. R. 2589

_______________________________________________________________________

                                 AN ACT


 To amend the provisions of title 17, United States Code, with respect
         to the duration of copyright, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

                   TITLE I--COPYRIGHT TERM EXTENSION

SEC. 101. SHORT TITLE.

    This title may be referred to as the ``Sonny Bono Copyright Term
Extension Act''.

SEC. 102. DURATION OF COPYRIGHT PROVISIONS.

    (a) Preemption With Respect to Other Laws.--Section 301(c) of title
17, United States Code, is amended by striking ``February 15, 2047''
each place it appears and inserting ``February 15, 2067''.
    (b) Duration of Copyright: Works Created on or After January 1,
1978.--Section 302 of title 17, United States Code, is amended--
            (1) in subsection (a) by striking ``fifty'' and inserting
        ``70'';
            (2) in subsection (b) by striking ``fifty'' and inserting
        ``70'';
            (3) in subsection (c) in the first sentence--
                    (A) by striking ``seventy-five'' and inserting
                ``95''; and
                    (B) by striking ``one hundred'' and inserting
                ``120''; and
            (4) in subsection (e) in the first sentence--
                    (A) by striking ``seventy-five'' and inserting
                ``95'';
                    (B) by striking ``one hundred'' and inserting
                ``120''; and
                    (C) by striking ``fifty'' each place it appears and
                inserting ``70''.
    (c) Duration of Copyright: Works Created but Not Published or
Copyrighted Before January 1, 1978.--Section 303 of title 17, United
States Code, is amended in the second sentence by striking ``December
31, 2027'' and inserting ``December 31, 2047''.
    (d) Duration of Copyright: Subsisting Copyrights.--
            (1) In general.--Section 304 of title 17, United States
        Code, is amended--
                    (A) in subsection (a)--
                            (i) in paragraph (1)--
                                    (I) in subparagraph (B) by striking
                                ``47'' and inserting ``67''; and
                                    (II) in subparagraph (C) by
                                striking ``47'' and inserting ``67'';
                            (ii) in paragraph (2)--
                                    (I) in subparagraph (A) by striking
                                ``47'' and inserting ``67''; and
                                    (II) in subparagraph (B) by
                                striking ``47'' and inserting ``67'';
                                and
                            (iii) in paragraph (3)--
                                    (I) in subparagraph (A)(i) by
                                striking ``47'' and inserting ``67'';
                                and
                                    (II) in subparagraph (B) by
                                striking ``47'' and inserting ``67'';
                    (B) by amending subsection (b) to read as follows:
    ``(b) Copyrights in Their Renewal Term at the Time of the Effective
Date of the Sonny Bono Copyright Term Extension Act.--Any copyright
still in its renewal term at the time that the Sonny Bono Copyright
Term Extension Act becomes effective shall have a copyright term of 95
years from the date copyright was originally secured.'';
                    (C) in subsection (c)(4)(A) in the first sentence
                by inserting ``or, in the case of a termination under
                subsection (d), within the five-year period specified
                by subsection (d)(2),'' after ``specified by clause (3)
                of this subsection,''; and
                    (D) by adding at the end the following new
                subsection:
    ``(d) Termination Rights Provided in Subsection (c) Which Have
Expired on or Before the Effective Date of the Sonny Bono Copyright
Term Extension Act.--In the case of any copyright other than a work
made for hire, subsisting in its renewal term on the effective date of
the Sonny Bono Copyright Term Extension Act for which the termination
right provided in subsection (c) has expired by such date, where the
author or owner of the termination right has not previously exercised
such termination right, the exclusive or nonexclusive grant of a
transfer or license of the renewal copyright or any right under it,
executed before January 1, 1978, by any of the persons designated in
subsection (a)(1)(C) of this section, other than by will, is subject to
termination under the following conditions:
            ``(1) The conditions specified in subsection (c)(1), (2),
        (4), (5), and (6) of this section apply to terminations of the
        last 20 years of copyright term as provided by the amendments
        made by the Sonny Bono Copyright Term Extension Act.
            ``(2) Termination of the grant may be effected at any time
        during a period of 5 years beginning at the end of 75 years
        from the date copyright was originally secured.''.
            (2) Copyright renewal act of 1992.--Section 102 of the
        Copyright Renewal Act of 1992 (Public Law 102-307; 106 Stat.
        266; 17 U.S.C. 304 note) is amended--
                    (A) in subsection (c)--
                            (i) by striking ``47'' and inserting
                        ``67'';
                            (ii) by striking ``(as amended by
                        subsection (a) of this section)''; and
                            (iii) by striking ``effective date of this
                        section'' each place it appears and inserting
                        ``effective date of the Sonny Bono Copyright
                        Term Extension Act''; and
                    (B) in subsection (g)(2) in the second sentence by
                inserting before the period the following: ``, except
                each reference to forty-seven years in such provisions
                shall be deemed to be 67 years''.

SEC. 103. TERMINATION OF TRANSFERS AND LICENSES COVERING EXTENDED
              RENEWAL TERM.

    Sections 203(a)(2) and 304(c)(2) of title 17, United States Code,
are each amended--
            (1) by striking ``by his widow or her widower and his or
        her children or grandchildren''; and
            (2) by inserting after subparagraph (C) the following:
                    ``(D) In the event that the author's widow or
                widower, children, and grandchildren are not living,
                the author's executor, administrator, personal
                representative, or trustee shall own the author's
                entire termination interest.''.

SEC. 104. REPRODUCTION BY LIBRARIES AND ARCHIVES.

    Section 108 of title 17, United States Code, is amended--
            (1) by redesignating subsection (h) as subsection (i); and
            (2) by inserting after subsection (g) the following:
    ``(h)(1) For purposes of this section, during the last 20 years of
any term of copyright of a published work, a library or archives,
including a nonprofit educational institution that functions as such,
may reproduce, distribute, display, or perform in facsimile or digital
form a copy or phonorecord of such work, or portions thereof, for
purposes of preservation, scholarship, or research, if such library or
archives has first determined, on the basis of a reasonable
investigation, that none of the conditions set forth in subparagraphs
(A), (B), and (C) of paragraph (2) apply.
    ``(2) No reproduction, distribution, display, or performance is
authorized under this subsection if--
            ``(A) the work is subject to normal commercial
        exploitation;
            ``(B) a copy or phonorecord of the work can be obtained at
        a reasonable price; or
            ``(C) the copyright owner or its agent provides notice
        pursuant to regulations promulgated by the Register of
        Copyrights that either of the conditions set forth in
        subparagraphs (A) and (B) applies.
    ``(3) The exemption provided in this subsection does not apply to
any subsequent uses by users other than such library or archives.''.

SEC. 105. VOLUNTARY NEGOTIATION REGARDING DIVISION OF ROYALTIES.

    It is the sense of the Congress that copyright owners of
audiovisual works for which the term of copyright protection is
extended by the amendments made by this title, and the screenwriters,
directors, and performers of those audiovisual works, should negotiate
in good faith in an effort to reach a voluntary agreement or voluntary
agreements with respect to the establishment of a fund or other
mechanism for the amount of remuneration to be divided among the
parties for the exploitation of those audiovisual works.

SEC. 106. ASSUMPTION OF CONTRACTUAL OBLIGATIONS RELATED TO TRANSFERS OF
              RIGHTS IN MOTION PICTURES.

    (a) In General.--Part VI of title 28, United States Code, is
amended by adding at the end the following new chapter:

      ``CHAPTER 180--ASSUMPTION OF CERTAIN CONTRACTUAL OBLIGATIONS

``Sec.
``4001. Assumption of contractual obligations related to transfers of
                            rights in motion pictures.
``Sec. 4001. Assumption of contractual obligations related to transfers
              of rights in motion pictures
    ``(a) Assumption of Obligations.--In the case of a transfer of
copyright ownership in a motion picture (as defined in section 101 of
title 17, United States Code) that is produced subject to 1 or more
collective bargaining agreements negotiated under the laws of the
United States, if the transfer is executed on or after the effective
date of this Act and is not limited to public performance rights, the
transfer instrument shall be deemed to incorporate the assumption
agreements applicable to the copyright ownership being transferred that
are required by the applicable collective bargaining agreement, and the
transferee shall be subject to the obligations under each such
assumption agreement to make residual payments and provide related
notices, accruing after the effective date of the transfer and
applicable to the exploitation of the rights transferred, and any
remedies under each such assumption agreement for breach of those
obligations, as those obligations and remedies are set forth in the
applicable collective bargaining agreement, if--
            ``(1) the transferee knows or has reason to know at the
        time of the transfer that such collective bargaining agreement
        was or will be applicable to the motion picture; or
            ``(2) in the event of a court order confirming an
        arbitration award against the transferor under the collective
        bargaining agreement, the transferor does not have the
        financial ability to satisfy the award within 90 days after the
        order is issued.
    ``(b) Failure To Notify.--If the transferor under subsection (a)
fails to notify the transferee under subsection (a) of applicable
collective bargaining obligations before the execution of the transfer
instrument, and subsection (a) is made applicable to the transferee
solely by virtue of subsection (a)(2), the transferor shall be liable
to the transferee for any damages suffered by the transferee as a
result of the failure to notify.
    ``(c) Determination of Disputes and Claims.--Any dispute concerning
the application of subsection (a) and any claim made under subsection
(b) shall be determined by an action in United States district court,
and the court in its discretion may allow the recovery of full costs by
or against any party and may also award a reasonable attorney's fee to
the prevailing party as part of the costs.''.
    (b) Conforming Amendment.--The table of chapters for part VI of
title 28, United States Code, is amended by adding at the end the
following:

``180. Assumption of Certain Contractual Obligations........    4001''.

SEC. 107. EFFECTIVE DATE.

    This title and the amendments made by this title shall take effect
on the date of the enactment of this Act.

                       TITLE II--MUSIC LICENSING

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Fairness in Musical Licensing Act
of 1998''.

SEC. 202. EXEMPTION OF CERTAIN MUSIC USES FROM COPYRIGHT PROTECTION.

    (a) Business Exemption.--Section 110(5) of title 17, United States
Code, is amended to read as follows:
            ``(5) communication by electronic device of a transmission
        embodying a performance or display of a nondramatic musical
        work by the public reception of a broadcast, cable, satellite,
        or other transmission, if--
                    ``(A)(i) the rooms or areas within the
                establishment where the transmission is intended to be
                received by the general public contains less than 3,500
                square feet, excluding any space used for customer
                parking; or
                    ``(ii) the rooms or areas within the establishment
                where the transmission is intended to be received by
                the general public contains 3,500 square feet or more,
                excluding any space used for customer parking, if--
                            ``(I) in the case of performance by audio
                        means only, the performance is transmitted by
                        means of a total of not more than 6 speakers
                        (excluding any speakers in the device receiving
                        the communication), of which not more than 4
                        speakers are located in any 1 room or area; or
                            ``(II) in the case of a performance or
                        display by visual or audiovisual means, any
                        visual portion of the performance or display is
                        communicated by means of not more than 2 audio
                        visual devices, if no such audio visual device
                        has a diagonal screen size greater than 55
                        inches, and any audio portion of the
                        performance or display is transmitted by means
                        of a total of not more than 6 speakers
                        (excluding any speakers in the device receiving
                        the communication), of which not more than 4
                        speakers are located in any 1 room or area;
                    ``(B) no direct charge is made to see or hear the
                transmission;
                    ``(C) the transmission is not further transmitted
                to the public beyond the establishment where it is
                received; and
                    ``(D) the transmission is licensed.''.
    (b) Exemption Relating to Promotion.--Section 110(7) of title 17,
United States Code, is amended--
            (1) by striking ``a vending'' and inserting ``an'';
            (2) by striking ``sole'';
            (3) by inserting ``or of the audio, video, or other devices
        utilized in the performance,'' after ``phonorecords of the
        work,''; and
            (4) by striking ``and is within the immediate area where
        the sale is occurring''.

SEC. 203. BINDING ARBITRATION OF RATE DISPUTES INVOLVING PERFORMING
              RIGHTS SOCIETIES.

    (a) In General.--Section 504 of title 17, United States Code, is
amended by adding at the end the following new subsection:
    ``(d) Performing Rights Societies; Binding Arbitration.--
            ``(1) Arbitration of disputes prior to court action.--
                    ``(A) Arbitration.--(i) If a general music user and
                a performing rights society are unable to agree on the
                appropriate rate or fee to be paid for the user's past
                or future performance of musical works in the
                repertoire of the performing rights society, the
                general music user shall, in lieu of any other dispute-
                resolution mechanism established by any judgment or
                decree governing the operation of the performing rights
                society, be entitled to binding arbitration of such
                disagreement pursuant to the rules of the American
                Arbitration Association. The music user may initiate
                such arbitration.
                    ``(ii) The arbitrator in such binding arbitration
                shall determine a fair and reasonable rate or fee for
                the general music user's past and future performance of
                musical works in such society's repertoire and shall
                determine whether the user's past performances of such
                musical works, if any, infringed the copyrights of
                works in the society's repertoire. If the arbitrator
                determines that the general music user's past
                performances of such musical works infringed the
                copyrights of works in the society's repertoire, the
                arbitrator shall impose a penalty for such
                infringement. Such penalty shall not exceed the
                arbitrator's determination of the fair and reasonable
                license fee for the performances at issue.
                    ``(B) Definitions.--(i) For purposes of this
                paragraph, a `general music user' is any person who
                performs musical works publicly but is not engaged in
                the transmission of musical works to the general public
                or to subscribers through broadcast, cable, satellite,
                or other transmission.
                    ``(ii) For purposes of this paragraph,
                transmissions within a single commercial establishment
                or within establishments under common ownership or
                control are not transmissions to the general public.
                    ``(iii) For purposes of clause (ii), an
                `establishment' is a retail business, restaurant, bar,
                inn, tavern, or any other place of business in which
                the public may assemble.
                    ``(C) Enforcement of arbitrator's determinations.--
                An arbitrator's determination under this paragraph is
                binding on the parties and may be enforced pursuant to
                sections 9 through 13 of title 9, United States Code.
            ``(2) Court-annexed arbitration.--(A) In any civil action
        brought against a general music user, as defined in paragraph
        (1) for infringement of the right granted in section 106(4)
        involving a musical work that is in the repertoire of a
        performing rights society, if the general music user admits the
        prior public performance of one or more works in the repertoire
        of the performing rights society but contests the rate or the
        amount of the license fee demanded by such society for such
        performance, the dispute shall, if requested by the general
        music user, be submitted to arbitration under section 652(e) of
        title 28. In such arbitration proceeding, the arbitrator shall
        determine the appropriate rate and amount owed by the music
        user to the performing rights society for all past public
        performances of musical works in the society's repertoire. The
        amount of the license fee shall not exceed two times the amount
        of the blanket license fee that would be applied by the society
        to the music user for the year or years in which the
        performances occurred. In addition, the arbitrator shall, if
        requested by the music user, determine a fair and reasonable
        rate or license fee for the music user's future public
        performances of the musical works in such society's repertoire.
            ``(B) As used in this paragraph, the term `blanket license'
        means a license provided by a performing rights society that
        authorizes the unlimited performance of musical works in the
        society's repertoire, for a fee that does not vary with the
        quantity or type of performances of musical works in the
        society's repertoire.
            ``(3) Term of license fee determination.--In any
        arbitration proceeding initiated under this subsection, the
        arbitrator's determination of a fair and reasonable rate or
        license fee for the performance of the music in the repertoire
        of the performing rights society concerned shall apply for a
        period of not less than 3 years nor more than 5 years after the
        date of the arbitrator's determination.''.
    (b) Actions That Shall Be Referred to Arbitration.--Section 652 of
title 28, United States Code, is amended by adding at the end the
following:
    ``(e) Actions That Shall Be Referred to Arbitration.--In any civil
action against a general music user for infringement of the right
granted in section 106(4) of title 17 involving a musical work that is
in the repertoire of a performing rights society, if the general music
user admits the public performance of any musical work in the
repertoire of the performing rights society but contests the rate or
the amount of the license fee demanded by the society for such
performance, the district court shall, if requested by the general
music user, refer the dispute to arbitration, which shall be conducted
in accordance with section 504(d)(2) of title 17. Each district court
shall establish procedures by local rule authorizing the use of
arbitration under this subsection. The definitions set forth in title
17 apply to the terms used in this subsection.''.

SEC. 204. VICARIOUS LIABILITY PROHIBITED.

    Section 501 of title 17, United States Code, is amended by adding
at the end the following:
    ``(f) A landlord, an organizer or sponsor of a convention,
exposition, or meeting, a facility owner, or any other person making
space available to another party by contract, shall not be liable under
any theory of vicarious or contributory infringement with respect to an
infringing public performance of a copyrighted work by a tenant,
lessee, subtenant, sublessee, licensee, exhibitor, or other user of
such space on the ground that--
            ``(1) a contract for such space provides the landlord,
        organizer or sponsor, facility owner, or other person a right
        or ability to control such space and compensation for the use
        of such space; or
            ``(2) the landlord, organizer or sponsor, facility owner,
        or other person has or had at the time of the infringing
        performance actual control over some aspects of the use of such
        space,
if the contract for the use of such space prohibits infringing public
performances and the landlord, organizer or sponsor, facility owner, or
other person does not exercise control over the selection of works
performed.''.

SEC. 205. CONFORMING AMENDMENTS.

    Section 101 of title 17, United States Code, is amended by
inserting after the undesignated paragraph relating to the definition
of ``perform'' the following:
            ``A `performing rights society' is an association,
        corporation, or other entity that licenses the public
        performance of nondramatic musical works on behalf of copyright
        owners of such works, such as the American Society of
        Composers, Authors, and Publishers, Broadcast Music, Inc., and
        SESAC, Inc. The `repertoire' of a performing rights society
        consists of those works for which the society provides licenses
        on behalf of the owners of copyright in the works.''.

SEC. 206. CONSTRUCTION OF TITLE.

    Except as provided in section 504(d)(1) of title 17, United States
Code, as added by section 203(a) of this Act, nothing in this title
shall be construed to relieve any performing rights society (as defined
in section 101 of title 17, United States Code) of any obligation under
any consent decree, State statute, or other court order governing its
operation, as such statute, decree, or order is in effect on the date
of the enactment of this Act, as it may be amended after such date, or
as it may be enacted, issued, or agreed to after such date.

SEC. 207. EFFECTIVE DATE.

    This title and the amendments made by this title shall take effect
on the date of the enactment of this Act, and shall apply to actions
filed on or after such date.

            Passed the House of Representatives March 25, 1998.

            Attest:

                                                                 Clerk.
