COPYRIGHT BILL HOUSE OF REPRESENTATIVES, COMMITTEE ON RULES, Wednesday, February 13, 1929. The committee met at 10.30 o'clock a. m., Hon. Bertrand H. Snell (chairman) presiding. The CHAIRMAN. The committee will come to order. There are several members here who desire to be heard this morning in opposition to H. R. 13452. [H. R. 13452, Seventieth Congress, first session] A BILL To amend the act entitled "An act to amend and consolidate the acts respecting copyright," approved March 4, 1909, as amended, in respect of mechanical reproduction of musical compositions, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That subsection (e) of section 1 of the act entitled "An act to amend and consolidate the acts respecting copyright," approved March 4, 1909, as amended (United States Code, title 17, section 1 (e)), is amended to read as follows: "(e) (1) to perform the copyrighted work publicly for profit if it be a musical composition, and to make any arrangement of setting of it or of the melody of it in any system of notation or any form of record in which the thought of an author may be recorded and from which it may be read or reproduced: Provided, That the provisions of this act, as far as they secure copyright controlling the parts of instruments serving to reproduce mechanically the musical work, shall include only compositions published and copyrighted after July 1, 1909, and shall not include the works of a foreign author or composer unless the foreign state or nation of which such author or composed is a citizen or subject grants, either by treaty, convention, agreement, or law, to citizens of the United States similar rights. "(2) If the proprietor of the copyright of a musical composition grants to any person, for the manufacture and sale of ordinary commercial phonograph records or perforated music rolls, the right to use the whole or any part of such copyrighted musical composition upon the parts of instruments serving to reproduce mechanically the musical work, such grant shall be in writing and shall not be effective unless and until promptly recorded in the Copyright Office by the copyright proprietor. Royalties under any such grant, or under any subsequent agreement made under paragraph (3), shall be payable at a specified rate per ordinary commercial phonograph record or perforated music roll. The failure of the copyright proprietor to record pomptly such grant shall be a complete defense to any suit, action, or proceeding for any infringement of such copyright by means of like parts of instruments serving to reproduce mechanically the musical work in a similar manner. "(3) Any such grant may be altered, modified, extended, or canceled by subsequent agreement between the copyright proprietor and the grantee, but no such subsequent agreement shall be effective until ninety days after being recorded in the Copyright Office by the copyright proprietor. "(4) After any such grant or subsequent agreement has become effective, any other person may make like use of such copyrighted musical composition upon the same terms and conditions in respect of the royalty payable, the time, mode, and manner of such payment, and the security for the payment thereof, as are prescribed in such grant or subsequent agreement in effect 1 at the time he makes such use of such copyrighted musical composition, if he first serves notice upon the copyright proprietor at his last address, as disclosed by the records of the Copyright Office, of his intention to make such like use of such copyrighted musical composition. Such notice of intention shall be subscribed by the intending user under his hand and seal, and duly acknowledged, agreeing that his use of such copyrighted musical composition shall be upon the same terms and conditions in respect of the royalty payable, the time, mode, and manner of such payment, and the security for the payment thereof, as are prescribed by such grant or subsequent agreement in effect at the time of his use of the copyrighted musical composition. "(5) The payment of royalty by any grantee, or any person making like use of the copyrighted musical composition under the provisions of paragraph (4), shall free the articles or devices for which such royalty has been paid from further contribution to the copyright except in the case of public performance for profit. "(6) Any manufacture and sale of such parts of instruments serving to reproduce mechanically such copyrighted musical work, in violation of the provisions of this Act, as amended, shall be deemed to be an infringement of the copyright of such musical work. "(7) It shall be unlawful for any person (A) to change, alter, or deviate from the terms of a grant or subsequent agreement made under this subsection, with respect to the royalty payable for such use of the copyrighted musical composition, or with respect to the time, mode, and manner of payment and security for the payment thereof, except in the manner provided in paragraph (3); (B) to give, grant, or concede to any person any refund, rebate, discount, preference, benefit, or advantage whatever from the royalty fixed in such grant or subsequent agreement; or (C) to accept or receive any such refund, rebate, discount, preference, benefit, or advantage. Any person violating any provision of this paragraph shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punished by a fine of not less than $500 nor more than $5,000." SEC. 2. The first paragraph of subsection (e) of section 25 of such act of March 4, 1909, as amended (United States Code, title 17, section 25 (e)), and any other provision of such act of March 4, 1909, as amended, in respect of the royalty of 2 cents on each part manufactured of instruments serving to reproduce mechanically a copyrighted musical composition are hereby repealed. SEC. 3. This act shall take effect on July 1, 1928. [House Report No. 1520, Seventieth Congress, first session] The Committee on Patents, to which was referred the bill (H. R. 13452) to amend sections 1 (e) and 25 (e) of the act entitled "An act to amend and consolidate the acts respecting copyright," approved March 4, 1909, in respect of mechanical reproduction of musical compositions, and for other purposes, having had the subject matter of this bill under consideration, reports the same to the House without amendment and with the recommendation that the same do pass. The purpose of this amendment is to modify the so-called compulsory license provisions of the copyright act of 1909 (sec. 1, subsec. (e), and sec. 25, subsec. (e), 35 Stat. L., pt. 1, pp. 1075-1088), by securing to the proprietor of a musical copyright an opportunity of freedom of bargaining with respect to the use of his musical composition on the parts of instruments serving to reproduce it mechanically, such as ordinary commercial phonograph records and preforated paper music rolls; and to extend the remedies of the act for the prevention of and prosecution for infringements to infringements by means of such mechanical devices. The act of 1909 fixed the maximum royalty which might be charged by a copyright owner in respect of such devices at 2 cents per part manufactured, and provided that the copyright owner, if he himself manufactured such devices or permitted or licensed another so to do, then any person might make similar use of the copyrighted work upon notice to the copyright owner of an intention so to do, regardless of the financial responsibility or integrity of such intending user. Under the amendment the copyright owner is permitted to bargain for the rate of royalty to be paid by others in respect of devices serving to mechanically reproduce the work, the time, mode and manner of payment, and security for the payment of such royalties, but is required to promptly file in the office of the Register of Copyrights an original copy of the first license granted by him to another to manufacture such devices. Upon and after such filing, any manufacturer of such devices may, upon notice to the copyright owner, then avail himself of the terms and conditions of the original license as to the rate of royalty to be paid, the time, mode and manner of payment, and security for the payment thereof. Extended hearings were held, and much testimony was taken from representatives of both the copyright owners and manufacturers of devices which serve to mechanically reproduce copyrighted musical works. The matter has been studied for years by the committee, and all interests have generally agreed as to the justice of the principle of free bargaining governing the relationships between the copyright owners and the manufacturers of mechanical devices. It seemed apparent to your committee that obvious injustice was done to the composers and authors of musical works in depriving them of an opportunity to freely bargain in respect of the terms and conditions under which mechanical reproduction of their work could be licensed to others and to subject them to a statutory form of compulsory licensing which afforded no adequate protection against dishonest and delinquent manufacturers. It seemed equally apparent that for the just protection of the manufacturers a musical composition, once released by its copyright owner to any manufacturer for mechanical reproduction, should be available to all manufacturers upon terms equal to those required to be met by the first licensee. This amendment meets these conditions, will eliminate abuses and evils and injustices which have prevailed for 19 years, and is therefore recommended for favorable consideration. I believe Mr. Chindblom is one of the first who desires to be heard. STATEMENT OF HON. CARL R. CHINDBLOM, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF ILLINOIS Mr. CHINDBLOM. Mr. Chairman and gentlemen of the committee, may I inquire whether any rule has been presented and is pending? The CHAIRMAN. There has been no formal rule presented, I believe. Mr. CHINDBLOM. I hope the members of the committee may be able to survive the experience of finding me in opposition to a request before the Rules Committee. I think this is my first appearance in that rôle. The CHAIRMAN. We are complimented. Mr. CHINDBLOM. I will say, Mr. Chairman, I am not here to oppose legislation on the subject matter involved, which is principally the mechanical reproduction of copyrighted compositions. I am, however, opposed to the pending bill, H. R. 13452, in its present form, and I doubt very seriously that during the balance of this session, if the bill were to be brought up on the floor of the House, it could receive that consideration which I think it should have. And I will say frankly that I would be quite disturbed about sending this bill to another body from the House in an incomplete condition, because we know that in the last few hours of a dying session close consideration can not be given in either House to details which require considerable technical and even legal consideration. This bill relates to what are ordinarily known as records, music rolls, and the like, through which music and communications by word of mouth, through mechanical instruments, are reproduced. There are three parties involved in that kind of a process. There is, of course, first the author or composer, who has written the song |