i. Recommendations (1) The compulsory license provisions in sections 1(e) and 101 (e) of the present statute should be eliminated. (2) Since elimination of the compulsory license would require negotiations between music publishers and record companies to make new contractual arrangements as to royalty rates, etc., we propose that the present compulsory license provisions be left in effect for one year after the enactment of the new law. APPENDIX C The Compulsory License Provisions of the Copyright Act of 1909 (Title 17, United States Code) §1. EXCLUSIVE RIGHTS AS TO COPYRIGHTED WORKS.-Any person entitled thereto, upon complying with the provisions of this title, shall have the exclusive right: (e) To perform the copyrighted work publicly for profit if it be a musical. composition; and for the purpose of public performance for profit, and for the purposes set forth in subsection (a) hereof, to make any arrangement or 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 title, so 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 composer is a citizen or subject grants, either by treaty, convention, agreement, or law, to citizens of the United States similar rights. And as a condition of extending the copyright control to such mechanical reproductions, that whenever the owner of a musical copyright has used or permitted or knowingly acquiesced in the use of the copyrighted work upon the parts of instruments serving to reproduce mechanically the musical work, any other person may make similar use of the copyrighted work upon the payment to the copyright proprietor of a royalty of 2 cents on each such part manufactured, to be paid by the manufacturer thereof; and the copyright proprietor may require, and if so the manufacturer shall furnish, a report under oath on the 20th day of each month on the number of parts of instruments manufactured during the previous month serving to reproduce mechanically said musical work, and royalties shall be due on the parts manufactured during any month upon the 20th of the next succeeding month. The payment of the royalty provided for by this section shall free the articles or devices for which such royalty has been paid from further contribution to the copyright except in case of public performance for profit. It shall be the duty of the copyright owner, if he uses the musical composition himself for the manufacture of parts of instruments serving to reproduce mechanically the musical work, or licenses others to do so, to file notice thereof, accompanied by a recording fee, in the copyright office, and any failure to file such notice shall be a complete defense to any suit, action, or proceeding for any infringement of such copyright. In case of failure of such manufacturer to pay to the copyright proprietor within thirty days after demand in writing the full sum of royalties due at said rate at the date of such demand, the court may award taxable costs to the plaintiff and a reasonable counsel fee, and the court may, in its discretion, enter judgment therein for any sum in addition over the amount found to be due as royalty in accordance with the terms of this title, not exceeding three times such amount. §101. INFRINGEMENT. (e) ROYALTIES FOR USE OF MECHANICAL REPRODUCTION OF MUSICAL WORKS.— Whenever the owner of a musical copyright has used or permitted the use of the copyrighted work upon the parts of musical instruments serving to reproduce mechanically the musical work, then in case of infringement of such copyright by the unauthorized manufacture, use, or sale of interchangeable parts, such as disks, rolls, bands, or cylinders for use in mechanical music-producing machines adapted to reproduce the copyrighted music, no criminal action shall be brought, but in a civil action an injunction may be granted upon such terms as the court may impose, and the plaintiff shall be entitled to recover in lieu of profits and damages a royalty as provided in section 1, subsection (e), of this title: Provided also, That whenever any person, in the absence of a license agreement, intends to use a copyrighted musical composition upon the parts of instruments serving to reproduce mechanically the musical work, relying upon the compulsory license provision of this title, he shall serve notice of such intention, by registered mail, upon the copyright proprietor at his last address disclosed by the records of the copyright office, sending to the copyright office a duplicate of such notice; and in case of his failure so to do the court may, in its discretion, in addition to sums hereinabove mentioned, award the complainant a further sum, not to exceed three times the amount provided by section 1, subsection (e), of this title, by way of damages, and not as a penalty, and also a temporary injunction until the full award is paid. APPENDIX D Record Industry Association of America, Inc. PURPOSES [from the Certificate of Incorporation] (a) to promote the best interests of the phonograph record industry; and to foster, in lawful and appropriate ways, good relations between the phonograph record industry of this country and governmental authority, the public, artists, dealers, distributors, publishers, operators, and all other persons concerned with the music business; BY-LAWS ARTICLE I MEMBERSHIP SECTION 1. Qualifications. Any person, firm or corporation which has its main office in the United States and is engaged in the production and sale, under its own brand label, of recordings of performances for home phonograph use, may become a member of this Association by making written application, which shall include a statement of its appropriate classification as a member under Article II, Section 2 of these By-Laws, and by tendering payment of dues, as indicated by that provision, for the current calendar year. |