I am writing on behalf of Warner Bros. Inc., a subsidiary of Time Warner Inc. and a producer and, through subsidiary companies, a distributor of motion pictures.

The business of Warner Bros. Inc., as well as the
businesses and livelihoods of many companies and
individuals involved in the production and distribution of
motion pictures rests on the protections provided by our
Copyright Law. The crucial importance of copyright
protection is what leads to Warner Bros.' concerns about
S.1557 and H.R. 3158 dealing with the showing of motion
pictures via video cassettes in nursing homes. Our current
Copyright Law is the result of many years of effort by the
Congress and the private sector and stands today as a
carefully crafted law reflecting the needs of many and
diverse interests. While we do not believe it is wise or
necessary to amend the Copyright Law as provided in S.1557
or H.R.3158, we are prepared to join you in attempting to
meet the goal to which the legislative proposals are
directed.

We are prepared to join you in attempting to genuinely satisfy this goal without injuring the integrity of our copyrights or setting a precedent that could have serious adverse consequences for copyright law around the world. Warner Bros. hereby advises that for a period of 25 years it will not, as to any nursing home which provides long term or permanent residence, assert that the exhibition therein of motion pictures on video cassettes requires a license from Warner Bros. Inc. provided that the nursing home does not levy a direct charge for viewing the video and does not "further transmit" the performance to the

Warner Bros. Inc. is prepared to confirm this policy to any individual nursing home, or representative thereof, should it desire such confirmation. If any nursing home or representative thereof is not satisfied with this statement of position and would prefer that a license for such performances be issued by Warner Bros. Inc., Warner Bros. Inc. will do so on a royalty-free basis for a 25-year period.

We look forward to working with you to meet our common goals of serving those in nursing homes and maintaining a vigorous Copyright Law.

Sincerely,

Jim Boggs

Timothy A. Boggs
Vice President

The purpose of this letter is to comment upon S.1557 and H.R.3158, which address the viewing of videocassettes in nursing homes and other similar institutions.

First, let me emphasize that Buena Vista Pictures Distribution, Inc., as the distributor of Disney, Touchstone, and Hollywood Pictures motion pictures for The Walt Disney Company, is very sympathetic to the objectives of the bills. Nevertheless, as will be discussed below, we question whether the legislation is desirable in light of the overall structure of the Copyright Act. We believe that the "public performance" right, as granted in the Copyright Act of 1976 and in prior copyright laws, is an essential element in a structure that has been painstakingly crafted to encourage creative endeavors, while at the same time providing the public with the benefits of such endeavors. Our concern with the proposed legislation is that it may lead to a dangerous erosion of the public performance right. We are particularly fearful that nations less sensitive to the rights of creators will use the legislation as a wedge to undermine the public performance right.

Disney does not intend to seek licenses from nursing homes for the public performances of its videocassettes in common areas of permanent residential institutions which otherwise meet the "two-prong test" enunciated in your August 4, 1989` floor statement, and we are willing to memorialize a policy to this effect. Further, if any such facility would prefer a formal license agreement, Disney will enter into a twenty year royalty-free license agreement with that facility in exchange for a promise by the facility to contribute at least ten dollars to the United Way in Disney's name.

We believe that this solution will work well for the nursing homes, because it is both self-executing and selfenforcing. Moreover, such a solution will preserve the integrity of the public performance right.

3900 West Alameda Avenue / Suite 2400 Burbank, California 91521-0021 / 818-567-5050

We are prepared to have further discussions with your office and with the various nursing home organizations to accomplish the goals of the proposed legislation. Please do not hesitate to contact me if you would like further clarification regarding any of the matters discussed above.

Very truly yours,

Richard W Cock

Richard W. Cook
President

RWC/CR/kam

ONE CNN CENTER, Box 105366. Atlanta, Georgia 30348-5366 (404) 827-1013

March 27, 1990

TURNER HOME ENTERTAINMENT

The Honorable William V. Roth, Jr. 104 Hart Senate Office Building Washington, D.C. 20510

Dear Senator Roth:

We are writing with respect to proposed legislation (S. 1557) concerning the use of home videocassettes in nursing homes and related health care settings.

Turner Home Entertainment will not ask for any special payment when our videocassettes are used in the common rooms of nursing homes and related facilities such as hospices and geriatric care hospitals, so long as the facility does not make any direct charge to residents for viewing.

We are hopeful that clear statements of policy by ourselves and others can persuade Congress that legislation in this area is not necessary. Please let us know is we can be helpful in any way.

Very truly yours,

Jack Petrid

Jack Petrik
President