CSSB 263(JUD): "An Act relating to copyright licensing and royalties; and providing for an effective date."

00CS FOR SENATE BILL NO. 263(JUD) 01 "An Act relating to copyright licensing and royalties; and providing for an 02 effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 45.45 is amended by adding new sections to read: 05 ARTICLE 7A. COPYRIGHT ROYALTIES AND LICENSING. 06  Sec. 45.45.500. NOTICE REQUIRED BEFORE CONTRACT. A copyright 07 owner or a performing rights society may not enter into, or offer to enter into, a 08 contract for the payment of royalties by a business proprietor unless at the time of the 09 offer, or within 72 hours before entering into the contract, the copyright owner or 10 performing rights society provides to the business proprietor a notice containing 11  (1) the rates and terms of the royalties under the contract, including any 12 sliding scale, discounts, or reductions in rates on any basis, for which the business 13 proprietor may be eligible, and any scheduled increases or decreases in rates during 14 the term of the contract;

01  (2) in the case of a performing rights society, a toll free number from 02 which the business proprietor may obtain answers to inquiries concerning musical 03 works and copyright owners represented by the performing rights society; and 04  (3) in the case of a performing rights society, notice that the most 05 recent available list of the members or affiliates represented by the performing rights 06 society and the most recent available list of the copyrighted musical works in the 07 performing rights society's repertoire will be available on electronic media through the 08 Cabaret Hotel and Restaurant Retail Association at the expense of the performing 09 rights society. 10  Sec. 45.45.510. MINIMUM CONTENTS OF ROYALTIES CONTRACTS. 11 (a) A royalties contract entered into, issued, or renewed in this state must be in 12 writing and signed by the parties. The contract must include at least the 13  (1) business proprietor's name and business address, and the name and 14 location of each place of business of the business proprietor to which the contract 15 applies; 16  (2) duration of the contract; and 17  (3) terms for the collection of the royalties and a rate schedule for the 18 royalties, including any sliding scale, discount, or schedule for an increase or decrease 19 of the rates during the term of the contract. 20  (b) A contract for the payment of royalties entered into, issued, or renewed in 21 this state may not exceed one year at a time, unless the contract is under the terms of 22 a national agreement. When each year of the contract ends, the contract is 23 automatically renewed on the same terms and conditions unless either party to the 24 contract provides the other party with written notice of the party's desire to terminate 25 the contract or to change the terms and conditions. The notice must be given at least 26 30 days before the termination of the current term. 27  Sec. 45.45.520. COLLECTION OF ROYALTIES. A copyright owner, a 28 performing rights society, or an agent or employee of a copyright owner or performing 29 rights society may not collect or attempt to collect a payment or another fee under a 30 royalties contract between the copyright owner or performing rights society and a 31 business proprietor unless the contract complies with AS 45.45.500 - 45.45.590.

01  Sec. 45.45.530. PROHIBITED PRACTICES. (a) A performing rights society, 02 or an agent or employee of a performing rights society, may not collect or attempt to 03 collect a royalty payment or another fee from a business proprietor licensed by the 04 performing rights society, unless the collection or collection attempt is made under a 05 contract entered into in accordance with AS 45.45.500 - 45.45.590. 06  (b) An agent or employee of a performing rights society may not enter a 07 business proprietor's premises to discuss a contract for the performance of copyrighted 08 works or payment of royalties unless the agent or employee immediately discloses the 09 purpose of the discussion and that the agent or employee is an agent or employee of 10 a performing rights society. 11  Sec. 45.45.550. PRIVATE ACTION. A person who suffers a loss as a result 12 of another person knowingly engaging in conduct that violates AS 45.45.500 - 13 45.45.590 may bring a civil action to recover actual damages and reasonable attorney 14 fees, to enjoin the violation, and to seek any other remedy available at law or equity 15 for the violation. In this section, "knowingly" has the meaning given in AS 11.81.900. 16  Sec. 45.45.560. EXEMPTIONS. The provisions of AS 45.45.500 - 45.45.590 17 do not apply to 18  (1) a royalties contract between copyright owners, or performing rights 19 societies, and 20  (A) broadcasters licensed by the Federal Communications 21 Commission; or 22  (B) a cable television operator, a cable television programmer, 23 or another transmission service; 24  (2) an investigation by a law enforcement agency or other persons 25 concerning a suspected violation of AS 45.50.900(a)(2). 26  Sec. 45.45.570. CONSTRUCTION. AS 45.45.500 - 45.45.590 may not be 27 construed to prevent a performing rights society from informing a business proprietor 28 of the business proprietor's obligations under 17 U.S.C. (federal copyright law) or 29 from exercising any exclusive rights preempted under 17 U.S.C. 301(a). 30  Sec. 45.45.590. DEFINITIONS. In AS 45.45.500 - 45.45.590, 31  (1) "business proprietor" means a person who owns a place of business

01 in which the public may assemble and in which copyrighted musical works may be 02 performed, broadcasted, or otherwise transmitted; in this paragraph, "place of business" 03 includes a store, professional office, sports facility, entertainment facility, restaurant, 04 hotel, or an alcoholic beverage establishment licensed under AS 04.11; 05  (2) "copyright owner" means the owner of a copyright of a musical 06 work if the copyright is recognized and enforceable under 17 U.S.C.; "copyright 07 owner" does not include the owner of a copyright in all or part of a motion picture or 08 an audiovisual work; 09  (3) "musical work" means a nondramatic musical or similar work; 10  (4) "performing rights society" means an association or corporation that 11 licenses the public performance of musical works on behalf of copyright owners, and 12 includes Broadcast Music, Inc., SESAC, Inc., and The American Society of 13 Composers, Authors, and Publishers; 14  (5) "royalties" means the fees payable to a copyright owner or a 15 performing rights society for the public performance of a musical work; 16  (6) "royalties contract" means a contract for the payment of royalties. 17 * Sec. 2. AS 45.45.500 - 45.45.530, enacted by sec. 1 of this Act, do not apply to a 18 contract entered into, issued, or renewed before the effective date of this Act. 19 * Sec. 3. SEVERABILITY. If a provision of AS 45.45.500 - 45.45.590 or its application 20 to a person or circumstance is held invalid, the invalidity does not affect other provisions or 21 applications of this Act that can be given effect without the invalid provision or application 22 and, to this end, the provisions of this Act are declared to be severable. 23 * Sec. 4. This Act takes effect July 1, 1996.