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without altering or adding to the content of the original transmission, without any purpose of direct or indirect commercial advantage, and without charge to the recipients of the further transmission;

(6) the further transmitting of a transmission embodying a performance or exhibition of a work by relaying it to the private rooms of a hotel or other public establishment through a system of loudspeakers or other devices in such rooms, unless the person responsible for relaying the transmission or the operator of the establishment:

(A) alters or adds to the content of the transmission; or

(B) makes a separate charge to the occupants of the private rooms directly to see or hear the transmission; (7) communication of a transmission embodying a performance or exhibition of a work by the public reception of the transmission on a single receiving apparatus of a kind commonly used in private homes, unless :

(A) a direct charge is made to see or hear the transmissions; or

(B) the transmission thus received is further transmitted to the

public. $110. Limitations on exclusive rights: Ephemeral recordings

Notwithstanding the provisions of section 106, it is not an infringement of copyright for an organization lawfully entitled to transmit a performance or exhibition of a copyrighted work to the public to make no more than one copy or phonorecord of the work solely for purposes of the organization's own lawful transmissions or for archival preservation, if the copy or phonorecord is not used for transmission after six months from the date it was first made, and is thereafter destroyed or preserved for archival purposes only. 8 111. Scope of exclusive rights in pictorial, graphic, and sculptural works

(a) Subject to the provisions of clauses (1) and (2) of this subsection, the exclusive right to reproduce a copyrighted pictorial, graphic, or sculptural work in copies under section 106 includes the right to reproduce the work in or on any kind of article, whether useful or otherwise.

(1) This title does not afford, to the owner of copyright in a work that portrays a useful article as such, any greater rights with respect to the making, distribution, or exhibition of the useful article so portrayed than those afforded to such copyrighted works under the law in effect on December 31, 1966.

(2) In the case of a work lawfully reproduced in useful articles that have been offered for sale or other distribution to the public, copyright does not include any right to prevent the making, distribution, or exhibition of pictures or photographs of such articles in connection with advertisements or commentaries relating to the distribution or exhibition of such articles, or in

connection with news reports. (b) A "useful article" is an article having an intrinsic utilitarian function that is not merely to portray the appearance of the article or to convey information. An article that is normally a part of a useful article is considered a "useful article." $ 112. Scope of the exclusive rights in sound recordings

(a) The exclusive rights of the owner of copyright in a sound recording are limited to the rights specified by clauses (1) and (3) of section 106(a), and do not include any right of performance under section 106(a)(4).

(b) The exclusive right of the owner of copyright in a sound recording to reproduce it under section 106(a)(1) is limited to the right to duplicate the sound recording in the form of phonorecords that directly or indirectly recapture the actual sounds fixed in the recording. This right does not extend to the making or duplication of another sound recording that is an independent fixation of other sounds, even though such sounds imitate or simulate those in the copyrighted sound recording.

(c) This section does not limit or impair the exclusive right to perform publicly, by means of a phonorecord, any of the works specified by section 106(a)(4). $ 113. Scope of exclusive rights in nondramatic musical works: Compulsory

license for making and distributing phonorecords In the case of nondramatic musical works, the exclusive rights provided by clauses (1) and (3) of section 106(a), to make and to distribute phonorecords of

such works, are subject to compulsory licensing under the conditions specified by this section. (a) AVAILABILITY AND SCOPE OF COMPULSORY LICENSE.

(1) When phonorecords of a nondramatic musical work have been distributed to the public under the authority of the copyright owner, any other person may, by complying with the provisions of this section, obtain a complusory license to make and distribute phonorecords of the work. A person may obtain a compulsory license only if his primary purpose in making phonorecords is to distribute them to the public for private use.

(2) A compulsory license includes the privilege of making a musical arrangement of the work to the extent necessary to conform it to the style or manner of interpretation of the performance involved, but the arrangement shall not change the basic melody or fundamental character of the work, and shall not be subject to protection as a derivative work under this

title, except with the express consent of the copyright owner. (b) NOTICE OF INTENTION TO OBTAIN COMPULSORY LICENSE.-

(1) Any person who wishes to obtain a compulsory license under this section shall, before or within thirty days after making, and before distributing any phonorecords of the work, serve notice of his intention to do so on the copyright owner. If the registration or other public records of the Copyright Office do not identify the copyright owner and include an address at which notice can be served on him, it shall be sufficient to file the notice of intention in the Copyright Office. The notice shall comply, in form, content, and manner of service, with requirements that the Register of Copyrights shall prescribe by regulation.

(2) Failure to serve or file the notice as required in clause (1) forecloses the possibility of a compulsory license and, in the absence of a negotiated license, renders the making and distribution of phonorecords fully actionable

as acts of infringement under section 501. (c) ROYALTY PAYABLE UNDER COMPULSORY LICENSE.—

(1) To be entitled to receive royalties under a compulsory license, the copyright owner must be identified in the registration or other public records of the Copyright Office. The owner is entitled to royalties for phonorecords made after he is so identified but he is not entitled to recover for any phonorecords previously made.

(2) Except as provided by clause (1), the royalty under a compulsory license shall be payable for every phonorecord made in accordance with the license. With respect to each work embodied in the phonorecord, the royalty shall be either three cents, or one cent per minute of playing time or fraction thereof, whichever amount is larger.

(3) Royalty payments shall be made quarterly, in January, April, July, and October, and shall include all royalties for the three months next preceding. Each quarterly payment shall be accompanied by a detailed statement of account which, upon written demand by the copyright owner, shall be certified as correct by a certified public accountant licensed to practice in the United States.

(4) If the copyright owner does not receive the quarterly payment and statement of account when due, he may give written notice to the licensee that, unless the default is remedied within thirty days from the date of the notice, the compulsory license will be automatically terminated. Such termination renders the making and distribution of all phonorecords, for which the royalty had not been paid, fully actionable as acts of infringement under

section 501. $114. Scope of exclusive rights in nondramatic musical works: Performance by

means of coin-operated machine The proprietor of an establishment in which a copyrighted nondramatic musical work is performed publicly by means of a coin-operated machine is not an infringer unless :

(1) alone or jointly with others he owns the machine or has power to exercise primary control over it; or

(2) he refuses or fails, promptly after receipt by registered or certified mail of a request by the copyright owner, to make full disclosure of the identity of the person who owns the machine or has power to exercise primary control over it.

CHAPTER 2-COPYRIGHT OWNERSHIP AND TRANSFER Sec. 201. Ownership of copyright. 202. Ownership of copyright as distinct from ownership of material object. 203. Termination of transfers and licenses granted by the author. 204. Execution of transfers of copyright ownership. 205. Recordation of transfers and other documents. 8 201. Ownership of copyright

(a) INITIAL OWNERSHIP.-Copyright in a work protected under this title vests initially in the author or authors of the work. The authors of a joint work are Co-owners of copyright in the work.

(b) WORKS MADE FOR HIRE.-In the case of a work made for hire, the employer or other person for whom the work was prepared is considered the author for purposes of this title, and, unless the parties have expressly agreed other. wise, owns all of the rights comprised in the copyright.

(c) CONTRIBUTIONS TO COLLECTIVE WORKS.-Copyright in each separate contribution to a collective work is distinct from copyright in the collective work as a whole, and vests initially in the author of the contribution. In the absence of an express transfer of the copyright or of any rights under it, the owner of copyright in the collective work is presumed to have acquired only the privilege of reproducing and distributing the contribution as part of that particular col. lective work, any revision of that collective work, and any later collective work in the same series. (d) TRANSFER OF OWNERSHIP.

(1) The ownership of a copyright may be transferred in whole or in part by any means of conveyance or by operation of law, and may be bequeathed by will or pass as personal property by the applicable laws of intestate succession.

(2) Any of the exclusive rights comprised in a copyright, including any subdivision of any of the rights specified by section 106, may be transferred as provided by clause (1) and owned separately. The owner of any particular exclusive right is entitled, to the extent of that right, to all of the

protection and remedies accorded to the copyright owner by this title. $ 202. Ownership of copyright as distinct from ownership of material object

Ownership of a copyright, or of any of the exclusive rights under a copyright, is distinct from ownership of any material object in which the work is embodied. Transfer of ownership of any material object, including the copy or phonorecord in which the work is first fixed, does not of itself convey any exclusive rights in the copyrighted work embodied in the object; nor, in the absence of an agreement, does transfer of ownership of a copyright or of any exclusive rights under a copyright convey property rights in any material object. 8 203. Termination of transfers and licenses granted by the author

(a) CONDITIONS FOR TERMINATION.-In the case of any work other than a work made for hire, the exclusive or nonexclusive grant of a transfer or license of copyright or of any right under a copyright, executed by the author on or after January 1, 1967, otherwise than by will, is subject to termination under the following conditions:

(1) Termination of the grant may be effected by the author who executed it. If the author is dead, termination may be effected by his widow (or her widower) and children; the children of any dead child of the author succeed to the right of their parent for this purpose.

(2) Termination of the grant may be effected at any time during a period of five years beginning at the end of 35 years from the date of execution of the grant; or, if the grant covers the right of first publication of the work, the period begins at the end of 35 years from the date of first publication of the work or at the end of 40 years from the date of execution of the grant, whichever term ends earlier.

(3) The termination shall be effected by serving an advance notice in writing, signed by the author or, if he is dead, by all of those entitled to terminate his grant under clause (1) of this subsection, or by their duly authorized agents, upon the grantee or his successor in title.

(A) The notice shall state the effective date of the termination, which shall fall within the five-year period specified by clause (2) of this sub

section, and the notice shall be served not less than two or more than ten years before that date. A copy of the notice shall be recorded in the Copyright Office before the effective date of termination, as a condition to its taking effect.

(B) The notice shall comply, in form, content, and manner of service, with requirements that the Register of Copyrights shall prescribe by

regulation. (4) Termination of the grant may be effected notwithstanding any agreement to the contrary, including an agreement to make a will or to make any future grant. (b) EFFECT OF TERMINATION.–Upon the effective date of termination, all rights under this title that were covered by the terminated grant revert to the author or, if he is dead, to all of those entitled to terminate his grant under clause (1) of subsection (a), but with the following limitations :

(1) A derivative work prepared under authority of the grant before its termination may continue to be utilized under the terms of the grant after its termination, but this privilege does not extend to the preparation after the termination of other derivative works based upon the copyrighted work covered by the terminated grant.

(2) A further grant, or agreement to make a further grant, of any right covered by a terminated grant is valid only if it is made after the effective date of the termination. As an exception, however, an agreement for such a further grant may be made between the persons effecting the termination and the original grantee or his successor in title, after the notice of termination has been served as provided by clause (3) of subsection (a).

(3) The future rights that will revert upon termination of the grant become vested on the date of the notice of termination has been served as provided by clause (3) of subsection (a). Where the rights revert to the author's widow and one or more of his children or grandchildren, the widow is entitled to a one-half interest in the reverted rights. The interests of the author's children and grandchildren shall in all cases be divided among them on a per stirpes basis according to the number of his children represented.

(4) Termination of a grant under this section shall affect only those rights covered by the grant that arise under this title, and shall in no way affect rights arising under any other Federal, State, or foreign laws,

(5) Unless and until termination is effected under this section, the grant, if it does not provide otherwise, continues in effect for the term of copy

right provided in this title, $ 204. Execution of transfers of copyright ownership

(a) A transfer of copyright ownership, other than by operation of law, is not valid unless an instrument of conveyance, or a note or memorandum of the transfer, is in writing and signed by the owner of the rights coveyed or his duly authorized agent.

(b) A certificate of acknowledgment is not required for the validity of a transfer, but is prima facie evidence of the execution of the transfer if:

(1) in the case of a transfer executed in the United States, the certificate is issued by a person authorized to administer oaths within the United States; or

(2) in the case of a transfer executed in a foreign country, the certificate is issued by a diplomatic or consular officer of the United States, or by a person authorized to administer oaths, whose authority is proved by a

certificate of such an officer. 8205. Recordation of transfers and other documents

(a) CONDITIONS FOR RECORDATION.-Any transfer of copyright ownership or other document pertaining to a copyright may be recorded in the Copyright Office if the document filed for recordation bears the actual signature of the person who executed it, or if it is accompanied by a sworn or official certification that it is a true copy of the original, signed statement.

(b) CERTIFICATE OF RECORDATION.--The Register of Copyrights shall, upon receipt of a document as provided by subsection (a) and of the fee provided by section 708, record the document and return it with a certificate of recordation.

52-380-66—pt. 1-2

Sec.

(c) RECORDATION AS CONSTRUCTIVE NOTICE.--Recordation of a document in the Copyright Office gives all persons constructive notice of the facts stated in the recorded document, but only if :

(1) the document, or material attached to it, specifically identifies the work to which it pertains so that, after the document is indexed by the Register of Copyrights, it would be revealed by a reasonable search under the title or registration number of the work; and

(2) registration, as provided by section 407, has been made for the work. (d) RECORDATION AS PREREQUISITE TO INFRINGEMENT SUIT.--No person claiming by virtue of a transfer to be the owner of copyright or of any exclusive right under a copyright is entitled to institute an infringement action under this title until the instrument of transfer under which he claims has been recorded in the Copyright Office, but suit may be instituted after such recordation on a cause of action that arose before recordation.

(e) PRIORITY BETWEEN CONFLICTING TRANSFERS.-As between two conflicting transfers, the one executed first prevails if it is recorded within two months after its execution in the United States or within four months after its execution abroad, or at any time before recordation of the later transfer. Otherwise the later transfer prevails if recorded first, and if taken in good faith, for valuable consideration or on the basis of a binding promise to pay royalties, and without notice of the earlier transfer.

(f) PRIORITY BETWEEN CONFLICTING TRANSFER OF OWNERSHIP AND NON-ExCLUSIVE LICENSE.-A non-exclusive license, whether recorded or not, prevails over a conflicting transfer of copyright ownership if:

(1) the license was taken before execution of the transfer; or

(2) the license was taken in good faith before recordation of the transfer and without notice of it.

CHAPTER 3-DURATION OF COPYRIGHT 301. Pre-emption with respect to other laws. 302. Duration of copyright: works created on or after January 1, 1967. 303. Duration of copyright: works created but not published or copyrighted before

January 1, 1967. 304. Duration of copyright: subsisting copyrights. 305. Duration of copyright : terminal date. 8 301. Pre-emption with respect to other laws

(a) On and after January 1, 1967, all rights in the nature of copyright in works that come within the subject matter of copyright as specified by sections 102 and 103, whether created before or after that date and whether published or unpublished, are governed exclusively by this title. Thereafter, no person is entitled to copyright, literary property rights, or any equivalent legal or equitable right in any such work under the common law or statutes of any State.

(b) Nothing in this title annuls or limits any rights or remedies under the law of any State with respect to:

(1) unpublished material that does not come within the subject matter of copyright as specified by sections 102 and 103;

(2) any cause of action arising from undertakings commenced before January 1, 1967;

(3) activities violating rights that are not equivalent to any of the exclusive rights within the general scope of copyright as specified by section 106, including breaches of contract, breaches of trust, invasion of privacy, defamation, and deceptive trade practices such as passing off and false

representation. $ 302. Duration of copyright: Works created on or after January 1, 1967

(a) IN GENERAL.--Copyright in a work created on or after January 1, 1967, subsists from its creation and, except as provided by the following subsections, endures for a term consisting of the life of the author and 50 years after his death.

(b) Joint WORKS.-In the case of a joint work prepared by two or more authors who did not work for hire, the copyright endures for a term consisting of the life of the second of the authors to die and 50 years after his death,

(c) ANONYMOUS WORKS, PSEUDONYMOUS WORKS, AND WORKS MADE FOR HIRE.-In the case of an anonymous work, a pseudonymous work, or a work made for hire, the copyright endures for a term of 75 years from the year of its first publication, or a term of 100 years from the year of its creation, whichever

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