negotiate with it?

Mr Chairman, the nursing homes were rather

forcefully "educated" in copyright law by a marketing agent dealing for six studios. Legislation was introduced to remedy the problem. The industry asked time to produce a non-legislative solution. It has demonstrated its incapacity to do so. It is time to move the legislation.

In closing, remember Frances Riley's question: why is a nursing home not a "home" under the copyright law? There is no sound answer to that question. That is why I am here.

The Copyright Law

By law, as well as by intent, the pre-recorded videocassettes (and videodiscs) which are
available in stores throughout the United States are for home use only
license to show them elsewhere.

unless you have a

Rentals or purchases of home video cassettes do not carry with them licenses for non-home showings. Before you can legally engage in non-home showings, you must have a separate license which specifically authorizes them.

These simple, straightforward rules are embodied in the Federal Copyright Act, Public Law 94-553, Title 17 of the United States Code. Any institution, organization, company or individual wishing to engage in non-home showings of home videocassettes should be aware of the Copyright Act's provisions governing showings of video materials, which are highlighted below.

• The Copyright Act grants to the copyright owner the exclusive right, among others, "to perform the copyrighted work publicly" (Section 106).

• The rental or purchase of a home videocassette does not carry with it the right "to perform the copyrighted work publicly" (Section 202).

• Home videocassettes may be shown, without a license, in the home to "a normal circle of family and its social acquaintances" (Section 101) because such showings are not "public."

• Home videocassettes may also be shown, without a license, in certain narrowly defined "face-to-face teaching activities" (Section 110.1) because the law makes a specific, limited exception for such showings. There are no other exceptions.

• All other showings of home videocassettes are illegal unless they have been authorized by license. Even "performances in 'semipublic' places such as clubs, lodges, factories, summer camps and schools are 'public performances' subject to copyright control" (Senate Report No. 94-473, page 60; House Report No. 94-1476, page 64).

• Institutions, organizations, companies or individuals wishing to engage in non-home showings of home video cassettes must secure licenses to do so regardless of whether an admission or other fee is charged (Section 501). This legal requirement applies equally to profit-making organizations and nonprofit institutions (Senate Report No. 94-473, page 59; House Report No. 94-1476, page 62).

Showings of home videocassettes without a license, when one is required, are an infringement of copyright. If done "willfully and for purposes of commercial advantage or private financial gain," they are a Federal crime (Section 506). In addition, even innocent or inadvertent infringers are subject to substantial civil damages (at least $250 for each illegal showing) and other penalties (Sections 501-505).

Copyright ©1987 Motion Picture Licensing Corporation. All Rights Reserved.

A

The Exhibition - Questions and Answers

All types of organizations and institutions require-licensing to exhibit home videocassettes and videodiscs within their facilities including, but not limited to, libraries, health care facilities, colleges and universities, correctional institutions, lodging establishments, religious institutions, oil rigs and other remote living accommodations, private membership clubs, buses and limousines, trains, corporate locations and government agencies.

While each of these organizations are unique in their respective ways, they share common issues related to exhibiting pre-recorded home videocassettes or videodiscs. Below are some frequently asked questions about public exhibitions.

Q. We are a nonprofit organization. Do we need to be licensed to show pre-recorded

videocassettes?

A. Yes. Under the law, it does not matter if you are a profit-making or nonprofit organization. You are required to have a public performance license to show home videocassettes or videodiscs.

Q. We own the pre-recorded home videocassettes we would like to exhibit. Are we required

to have a public performance license to show them?

A. Yes. The mere purchase or rental of a pre-recorded home videocassette does not carry with it the right to exhibit. You are required to have a public performance license.

Q. We would like to show videos to our patients and their invited guests in the nursing

home. Do we need a public performance license?

A. Yes. You are required to have a public performance license to exhibit to patients as well as

their guests.

Q. We will not be charging admission when we exhibit a video. Do we need a license?
A. Yes. It makes no difference under the law whether or not you charge admission, you still
need a public performance license to exhibit the video. However, the MPLC Umbrella
License covers only those situations where admission is not charged.

Q. Our company would like to exhibit videos for our employees to watch during their lunch

hours. Do we need a license?

A. Yes. Any exhibition of a home videocassette outside the home with family and friends requires a public performance license.

Q. We would like to publicize that we will be showing a video. What methods may we use

to do so?

A. You may announce your video showings in your organization's newsletters, bulletin boards and the like, where the recipients would be members, patients, and staff of your organization or institution. Use of public media (for example, TV, radio or newspapers) to advertise specific titles is prohibited.

Q. How much does an Umbrella LicenseTM cost?

A. MPLC will negotiate with you a reasonably priced license fee well within your

organization's means based on the nature and size of the audience and the anticipated
frequency of exhibitions.

B

AGREEMENT

1. The party of the first part is the legal entity that controls the performance rights with respect to the licenses granted herein for (insert name of copyright owner/authorized distributor).

2.

The party of the second part includes the American Health Care Association, the American Association of Homes for the Aged, and the National Association of Activity Professionals.

3.

In consideration of licenses granted under the fourth paragraph, the party of the second part agrees (A) that it will not urge Congress to act upon S.1557 or H.R. 3158 of the 101st Congress, or in any future Congress upon legislation drawn to the same effect and (B) that it will pay the party of the first part the sum of one dollar (alternative for (B): that it will make a contribution of ten dollars to United Way in the name of the party of the first part.)

4. In consideration of the promises made in the third paragraph, the
party of the first part hereby grants a license, to the extent that such
license is required by law, with respect to past, present, and future
performance rights, to each hospital, hospice, nursing home, retirement
home, or other group home dedicated to housing the elderly, for the
purpose of performing or displaying a work by means of a video
cassette recorder and a television set of a kind commonly used in a
private home, if the following conditions are met:

A.) The institution serves as the home for its residents.

B.) The institution affords private quarters to each
resident or nucleus of residents consisting of no
more than a bedroom, bath, kitchen, and a small
sitting area insufficient in size to accommodate
a group of the occupant's social acquaintances or
family.

C.) No direct charge is made to see or hear such
performance or display.

D.) The performance or display is not further
transmitted by closed-circuit television or
by any other means.

If an institution provides living quarters some of which meet the requirement of condition B and some of which do not, those quarters which do not shall not be licensed under this agreement.

5. This agreement shall remain in effect for the duration of the copyright laws or until such time as Congress, by law, either enlarges, diminishes, or abrogates the licenses granted by this agreement.