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Mr. KASTENMEIER. Borrowing what the first witness suggested, sometimes we can look for analogues elsewhere as to how things work with other countries.

Could you clarify the position of your organization on architectural works? You have heard this preceding discussion of it. Do you feel your organization may be directly affected-there may be some principles there that the IIA might have an interest in?

Mr. GOLDBERG. IIA was requested, as I indicated in my opening statement, Mr. Chairman, to focus on formalities, and therefore, while we have looked at the provisions concerning architectural works, we have not looked at them in sufficient detail to be responsive to the question. I will say that, as a general matter, we do believe that it is necessary to have provisions for architectural works and that our present law is not compatible in that respect. We do concur with the report of the Ad Hoc Working Group on this point. Mr. KASTENMEIER. Toward the conclusion of your presentation-I am not certain that I recall it—you did express concern in the bill about one area. I wonder if you would mind going over that again just to make sure that I understand the points that you were making.

Mr. GOLDBERG. Which area, Mr. Chairman?

Mr. KASTENMEIER. I think it was five. It was on recordation, I believe.

Mr. GOLDBERG. Section 205(d) is a problem because it requires one who has ownership by way of a transfer to record that transfer before instituting suit. It is pretty much analogous, in its noncompability, to section 411(a). It is a condition. It is a "formality." One is deprived of the exercise and the enjoyment of the right by reason of that. That is the essence of it.

Although neither H.R. 1623 nor H.R. 2962 addresses it, we do believe that it should be addressed; and we would support the provision that I believe is in S. 1301, which would repeal section 205(d).

I should point out, in connection with the recordation provision, Mr. Chairman, there are other provisiojs in section 205-205(c) and 205(e)—which provide additional incentives to register, and we support their retention. The benefits of each are conditioned upon registration. 205(c) provides that constructive notice will be afforded only if the document recorded pertains to a work that has been registered.

Likewise, under 205(e), it is possible for a transferee, under a recorded document, to get the benefit of the provisions of 205(e) only if the document relates to a registered work.

Mr. KASTENMEIER. Is there any other provision or lack of provision in either of these bills that you object to or would recommend? Mr. GOLDBERG. Do you embrace the moral rights provisions in your question?

Mr. KASTENMEIER. I think we have covered that. I think I know what your position is on that.

Mr. GOLDBERG. Yes, sir.

Mr. KASTENMEIER. Besides moral rights, are there any other reservations you have about the bills before us?

Mr. GOLDBERG. I have indicated that we have not reviewed architectural works in sufficient detail to give you a truly informed view

on that. The remaining provisions, we believe, are generally acceptable and are part of a truly outstanding effort.

Mr. KASTENMEIER. In any event, it would be fair to say that your association is strongly for statutory adherence to the Berne Convention?

Mr. GOLDBERG. Yes, sir.

Mr. KASTENMEIER. Thank you. I thank you both for your contributions. You are our final witnesses, and I appreciate not only your appearance, but of that of all the preceding witnesses during these many days of hearings. I trust we now have accumulated now enough advice and information with which to move forward.

I am told that representatives of the countries of Canada and the People's Republic of China, who are or have been in the audience today. This attendance might suggest our continued comparative study of communications between these various countries is in our interest and goes on and that we are dealing in an international community with respect to the aim of enabling us to adhere to this longstanding, nearly 100 years, convention known as the Berne Convention.

I would also say that, in conclusion, that this might be the last hearing clerked by Ms. Audrey Marcus, who has been a permanent and important part of this subcommittee for well over a decade. She has attended to these hearings and I would like to recognize her contribution, not only in terms of the hearings on Berne, but to all of our hearings.

This, then, concludes the hearings by this subcommittee on adherence to the Berne Convention. It is my expectation that in the near future the committee can meet in executive session and markup one of the bills devoted to the subject. It is not clear that we will have unanimity, but I think whatever we produce will surely enjoy a broad consensus and that, obviously, this legislative year, the second session of the 100th Congress, needs to be the time in which we accomplish this.

So having said that, I thank all who have participated and my colleagues and staff, witnesses and the many others who are not witnesses, but who have followed the proceedings almost religiously for many, many months.

The committee stands adjourned.

[Whereupon, at 11:55 a.m., the subcommittee was adjourned, to reconvene subject to the call of the Chair.]

ADDITIONAL STATEMENTS
AND CORRESPONDENCE

STATEMENT
of the

UNITED STATES COUNCIL

FOR INTERNATIONAL BUSINESS

before the

Subcommittee on Patents, Copyrights, and Trademarks

of the

Committee on the Judiciary

United States Senate

on the

Proposed Adherence of the United States

to the

Berne Convention

April 15, 1986

UNITED STATES COUNCIL FOR INTERNATIONAL BUSINESS
1212 Avenue of the Americas, New York, New York 10036 (212) 354-4480

Summary

The United States Council for International Business (USCIB) strongly supports United States adherence to the Berne Convention. The USCIB believes that such adherence is a necessary first step to securing adequate and effective international copyright protection for copyrighted works.

The economic role of the copyright industries has increased dramatically in recent years. Copyright also is constantly expanding in scope because of its application to new technologies and geographically because of the increasing importance of the copyright industries in world trade.

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It is, therefore, critical that effective and enforceable standards of protection be afforded to copyrighted works. This issue is now of considerable urgency, because of the burgeoning business of international copyright piracy.

United States adherence to Berne will provide significant advantages to individual U.S. copyright proprietors, to U.S. copyright industries as a whole, and to the international copyright community.

Adherence to Berne will:

1) give the United States copyright relations with numerous countries with which we currently have none;

2) make it unnecessary for copyright proprietors to make use of the cumbersome and uncertain "back door" to Berne in order to secure Berne protection;

3) give the United States greater credibility in international copyright negotiations;

4) allow the United States to have a full voice in the discussions and deliberations of the Berne Convention, as that Convention continues to address issues such as protection for new technologies and the enhancement and modernization of international copyright.

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Finally, adherence to Berne will facilitate United States efforts to link protection of international property to matters of international trade, particularly through the General Agreement on Tariffs and Trade ("the GATT"). The Berne minima could be adopted as an intellectual property code enforceable through the GATT, which - contrary to the international copyright treaties and agreements contains a binding dispute-settlement mechanism. Only as a member of Berne, however, can the United States effectively argue for and help develop this important linkage between intellectual property and trade.

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I. Introduction

The United States Council for International Business (USCIB) is a membership organization representing American business interests on international economic policy issues. Its primary objective is to promote an open system of world trade, finance and investment.

The USCIB represents United States business to the major international economic institutions and, on international economic matters, to the executive and legislative branches of the United States Government. In performing this function, it represents business views at the Organization for Economic Cooperation and Development (OECD) as the United States Member of the Business and Industry Advisory Committee (BIAC) to that organization. As the United States Member of the International Chamber of Commerce (ICC), it consults with the World Intellectual Property Organization (WIPO), which serves as the Secretariat of the Berne Convention, and with various other United Nations

The Berne Convention for the Protection of Literary and Artistic Works (Paris Act 1971), Article 24 (1)(b). References in this statement to provisions of Berne are to the 1971 Paris Act of that Convention unless otherwise indicated.

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