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on Picture Licensing Corporation

August 15, 1988

Ms. Sylvia Cohen
Director. Quality Life
Meridian Health Care
21 West Road
Baltimore, MD 21204

Dear Ms. Cohen:

it has becoce apparent that shorings of home decoussettes are the most popula: iora of entertaincent in all kinds of facilities, including long-tera care Sacilities. Some of the finest home video programming is available such as "Singin' in the Rain, "Mr. Roberts," "Play Bridge With Omar Sharif," "Born Free," "The Philadelphia siory," and "Tough Guys" but, as we discussed, in order to legal?? show these and hundreds of other ticles :le::dian Health Care must be 1:censed.

The Federal Copyright Act has clearly defined public performances of hone videocassettes as illegal unless properly licensed. Hotion Picture Licensing Corporation (!!PLC) has created the Umbrella Licensas for facilities such as yours which require immediate licensing to avoid the liability of penalties and fines of $250 to $5,000 for each unlicensed showing.

NPLC's Umbrella License covers you for unlimited legal showings for one year. You are able to continue to acquire your tapes from your favorite local sources including the public library and video store. The Umbrella License is the only license providing your facility with protection from copyright infringement liability and complete programming flexibility!

I have enclosed additional information about MPLC and two signed copies of the
Umbrella License agreement, with a start date of August 1, 1983.

Should you require an invoice, please call us. If you have any questions regarding the agreement, contact Janes Bouras of our office at (300) 333-3870.

Please sign as indicated and return one fully executed copy to us with paynent. We will then send you the Certificate of License confiraing your status as an Umbrella Licensee.

Should you require additional assistance, please call me at your earliest convenience.

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The Motion Picture Licensing Corporation

The Motion Picture Licensing Corporation (MPLO) is an independent copyright licensing service authorized by major Hollywood motion picture studios to grant Umbrella Licenses to organizations and institutions for certain public performances of home videocassettes and videodiscs.

The MPLC was incorporated to address the obvious need to license pre-recorded home
videocassettes for public performances, recognizing the use of VCRs and videocassettes had
expanded far beyond their original purpose of home use only. Organizations and institutions have
adapted the use of pre-recorded home videocassettes to their programming needs because the
cassettes are easily accessible and provide substantial entertainment value. However, use of pre
recorded home videocassettes outside the home is defined as a public performance and, without
proper licensing constitutes copyright infringement ?
Prior to MPLC's inception, public performance licenses for home videocassettes were available
only on a title-by-title, limited license basis, which was a time-consuming and expensive licensing
process for the exhibitor. In December 1986, MPLC received clearance from the U.S. Department
of Justice to grant public performance licenses for pre recorded home videocassettes, known
through MPLC as Umbrella Licenses . In fact, the Justice Department issued a statement that
MPLC's method of licensing could "offer substantial benefits and efficiencies in the distribution of

Immediately following the U.S. Department of Justice's statement of approval, major Hollywood
motion picture studios authorized MPLC to grant Umbrella Licenses for their titles available on
home videocassettes and videodiscs. The MPLC Umbrella License grants the exhibitor unlimited
use of titles from the libraries of Hollywood studios for a license period of one year.
The MPLC Umbrella License provides an organization or institution with copyright infringement
liability protection and assures the copyright holder its rights are honored. As a result, an
organization has programming flexibility and the convenience of renting or purchasing the
desired pre-recorded home video cassettes from a local video retailer, as well as the confidence
that it is in compliance with Federal copyright law.
With the establishment of the Motion Picture Licensing Corporation, organizations and studios
alike have found convenient, affordable and comprehen copyright lice ng from the creator
of Umbrella Licensing": MPLC.

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

The MPLC Umbrella License

The MPLC Umbrella License allows an organization unlimited exhibitions in each of its facilities of all authorized pre-recorded videocassette titles released by MPLC-represented studios for a license period of one year upon the payment of a single annual fee. Previously, if an institution were to legally show videocassettes or videodiscs, public performance licenses were obtained from the copyright holder or distributor on a title-by-title, limited license basis. Now, an institution is no longer required to endure that expensive and time-consuming process. As the representative of major Hollywood motion picture studios, MPLC is authorized to license every one of their home video titles for which they have the performance rights, ranging from time honored classics to the most recent box office sensations, including new titles as they are released. These titles are available to an organization or institution from any legitimate source, including MPLC in certain limited circumstances, making the Umbrella License a convenient, worry-free approach to public video programming Our licensing procedure is simple. The organization and MPLC will simply negotiate an annual license fee, specifically tailored to reflect the unique characteristics of the institution and the specific studios and titles available to each organization. Once a license agreement is signed and payment made, an organization immediately becomes an MPLC Licensee - authorized to publicly exhibit home videocassettes! The smallest library to the largest multi-national corporation is covered with the Umbrella License. As the most cost-efficient exhibition license available in the United States, the Umbrella License provides an organization or institution with unlimited public performances for virtually all its video programming needs at a reasonable price. It's that simple!

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

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 – unless you have a license to show them elsewhere.

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. Evean "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.

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.

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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

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

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 change 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 sol
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 License 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

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

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