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"secondary contributions" added by the reliance party (e.g. subtitles, dubbed dialogue, non-transformative musical arrangements, digests and condensed versions).

(b) Grandfather Period

A reliance party could

continue to make eligible duplicative uses for a period of 3 years commencing with the effective date of the TRIPS Act

(c) Extension of Period

The reliance party may commence an arbitration proceeding, within x to y months before expiration of the Grandfather Period, to seek its extension. Upon clear and convincing proof by the reliance party that termination of the period would cause it substantial economic hardship, the Arbitrator shall have the authority

...

to extend the Grandfather Period for up to an additional 3 years, on condition that the reliance party pay a royalty, fixed by the Arbitrator, to the copyright owner during the extended period.

...

to award attorneys fee's and costs to the retroactive copyright owner, regardless of which party prevailed, unless the copyright owner clearly acted unreasonably and in bad faith in rejecting the reliance party's request for the period and royalty offered by the reliance party.

IV.

(a)

Translation Uses by Reliance Parties

"Translation Uses" by reliance parties include the preparation of a translation of a literary or dramatic work, and the reproduction and distribution of copies of the translation.

(b) Grandfather Period A reliance party could continue to make eligible translation uses for a period of 5 years commencing with the effective date of the TRIPS Act.

(c) Extension of the Grandfather Period A reliance party could seek an extension of up to 5 years, in an arbitration proceeding. No proof of substantial economic hardship would be required. If the arbitrator granted the extension, he/she would fix a royalty rate. Same provision concerning attorney's fees, as in III. (c).

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(a) Substantial Transformative Uses are the preparation and exploitation of those derivative works [defined in $101] that integrate material from the re-copyrighted public domain foreign work and substantial copyrightable material the reliance party has created (or made substantial commitments to create). The typical transformative work would be a motion picture based on a play, novel, or story; a musical comedy based on such works; a literary work that incorporated substantial material (exceeding limits of fair use) from a prior public domain work; etc.

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(c) Royalty. Copyright owner could request a royalty after 3 years. If the parties cannot agree within six months of request, the issue would be submitted to arbitration, and the arbitrator would fix a royalty payable commencing with end of 4th year. No attorneys fees or costs would be awarded. [costs of arbitration to be borne by reliance party.]

VIII. Educational and Library Uses:

(a) Any prior uses for non-profit educational and library purposes by individuals and organizations entitled to exemptions and limitations under $3 108, 110, and 118 of Title 17.

(b) Restored copyrights are subject to all exemptions

and limitations of those sections.

(c) In determining whether non-eligible uses by those individuals and organizations of recopyrighted works are fair uses, the fact that such works had been available in the public domain for educational and library uses shall be deemed a significant factor.

(d) Grandfather Period: 10 years.

*

cc:

Senators DeConcini and Hatch; Representatives Hughes and Moorhead;
Karen Robb, Darryl Panethiere, Haydon Gregory, Bill Patry, Tom Mooney
Register of Copyrights and Librarian of Congress

Eric Smith, Fritz Attaway and Jon Baurgarten

August Steinhilber, Carol Henderson, Sheldon Steinabch

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F.D.A. Throws
Its Best Pitches

For Food Label

51.

By MARIAN BURROS Curious George, the Goodyear blimp and Roger Clemens are going to work for the Clinton Administra tion. No charge, of course.

In a media blitz worthy of Madison Avenue, the Federal Government has enlisted their help in making the pub lic aware of the new nutrition labels that food makers must use starting on May 8. The Government has never gone to such lengths to promote new food regulations.

absolute terms, stated in grams or, for the campaign over a three-year
period is about $1.5 million.

ligrams, but also the percentages daily value" - a recommended aily consumption for fat, saturated at, cholesterol, sodium, carbohy. rate and fiber. The percentages are ased on a 2,000-calorie diet. The la el also features larger type and highlights the most important infornation in boldface.

This is the first significant change
on food labels in 20 years, since volun-
ary nutrition labeling was intro-
duced in the mid-1970's. The food in-
dustry strenuously opposed the origi
hal nutrition label but, after living
with it and learning that it had no
ppreciable impact on sales, accept
ed it and was not eager to change.
The hew rules also make it much
Dr. Kessler, the most vigorous pro-
more difficult to inflate nutritional
ponent of the new labels, seems will.
laims, Foods will have to meet speng to do almost anything to prove
:ific criteria before they can be de-
scribed in terms like "low fat" or contended that he could teach anyone
how easy they are to understand. He
high fiber."
to understand the new label in 60
The Government will try to reach seconds, and to prove it he agreed to
early everyone, wherever they mayo shopping with a reporter in a
be, with the message that the label Maryland supermarket, which, like
as changed. Baseball fans in at least many, already had some products
10 ball parks across the country, in-with the new labels.
o watch television to get the mes.
Huding Yankee Stadium, won't have
age. During May, just as some of
hose in attendance take the first bite
of their hot dogs, the electronic score-
joards will either show one of the
public service announcements or
lash the message "A new food label:
check it out."

At a news conference tomorrow,. Dr. David A. Kessler, Commissioner' of Food and Drugs, is to announce the public service campaign that will take George, the monkey made fa In New York this month, the count. mous in a series of children's books, ess people who pass through the the blimp and Mr. Clemens, the Bos Great White Way will see the camton Red Sox pitcher, to places they wraps around the building in the midbaign's slogan on the news zipper that have never been before. le of Times Square. And across the Mr. Clemens will appear in a tele-ountry, the three Goodyear blimps vised public service announcement, pitching a "high fast one" to Donna E. Shalala, the Secretary of Health and Human Services. After she catches the ball, Dr. Shalala says,

"For a healthier diet, use the new food label."

In another spot, Kirby Puckett, an outfielder for the Minnesota Twins, its a single and makes a pitch for the new label.

The new law, the Nutrition Labeling and Education Act, has been 10 years in the making. The most significant difference between the old food labels and the new ones is the nutri. tion information panel designed to show shoppers how one food fits into an overall daily diet.

The new panel now includes not only the amount of certain nutrients

Continued on Page 30, Column 1

will carry the message as they 'fly from one job to another at night.

Curious George will be the mascot for the public service announcements and in other educational material to

ttract the under-8 crowd. There will lso be a booklet for parents and eachers to reinforce George's messages.

Millions of Brochures

Television stations nationwide pave agreed to run the public service Announcements. WCBS in New York, for example, said it would use the Spots three times a week for three months. The label graphic is being ent to newspapers and magazines with the hope that it will be used in public service advertisements.

In conjunction with the awareness fampaign, the Food and Drug Adminstration is making millions of educaonal brochures available to schools Ind supermarkets. All of the air time nd the use of the electronic signs has een donated. The Government's cost

Dr. Kessler was willing to teach anyone, but the store appeared to be filled with people who did not need any lessons. Most shoppers who were Approached already understood the new label and were generally complimentary about its larger type and ase of use.

"The way to red the food label is o read the percentage of daily val

ue," Dr. Kessler said. "There is one
simple rule. If the daily value is less
than 5 percent, it's low. If the daily
value of fat is 50 percent, then it's
one-half of your daily value."

For those who seemed to be espe
clally interested, Dr. Kessler dis-
cussed the use of claims like "light,"
"less" and "free." For example, to be
described as containing "less fat," a
food must contain 25 percent less fat
than the product to which it is being
compared. A food called "low calo
rle" can contain no more than 40
calories per serving, and serving
sizes are now uniform within each
category of food.

Dr. Kessler said he considered the new food label "one of the most important public health tools we have" right up there with exercise and cessation of smoking. "What is remark. able about the new food label," he added, "is that it takes all the dieti tian's guidance and reduces it to something people can use."

After May 8, companies must put the new labels on whatever comes off their production lines, That includes about 90 percent of processed pack. aged foods. Starting on July 8, similar labeling will be required on meat and

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Serving sizes have been made r pnly uniform but also more realisti Dr. Kessler said, though some mig! disagree. A serving of Hershey Kisses is 8 pieces; of potato chips.. pieces.

Allowable Health Claims

permitted: those regarding the link Only seven health claims will t between calcium and osteoporosis fat and cancer; saturated fat an cholesterol and heart disease; fibe and cancer; fruits, vegetables ar. grains with fiber and heart disease sodium and hypertension, and fruits vegetables and cancer.

Even with all the changes, not es beling and Education Act rescind eryone is satisfied. The Nutrition La the requirement that bins containin fresh produce be labeled with the

chemical ingredients in the wax th covers many of the foods.

Only one state, New Hampshi: fulfilled that requirement. The F.D never enforced the rule, saying it w unenforceable. Chemicals used some of the waxes, like orthophen phenol, are known carcinogens.

Under the new regulations the on requirement is a sign in the store th lists the produce items that have bee coated with animal-based wax ar another list of the items that ha been coated with a vegetable ar petroleum wax or a shellac-base one.

Mary Roy, president of Citizen P tition Inc., a consumer group in Ne Hampshire, has lobbied for enforc ment of the old chemical-ingredie: labeling rule since 1987 and now ha petitioned the F.D.A. to reinstate th rule and enforce It.

Dr. F. Edward Scarbrough, dire tor of the Office of Nutrition and Foc Sciences at the F.D.A., said that the agency had not acted on Ms. Roy' petition but that it intended to do so

D.A. Is Throwing Its Best Pitches in Blitz
Ads for the New Federal Food Labels

Continued From Page 1

5/1/94

8.

Mr. BERMAN of California. OK.

Mr. KARP. The sole purpose of the draconian-and they are draconian restrictions on reliance interests is this so-called mirror image theory which has been referred to. There is no doubt that we do well to grant retroactivity so that Thailand and other countries who are not giving us retroactivity will reciprocate, and they probably will.

But, there is absolutely no guarantee that they are stupid enough to adopt the reliance-party provisions you are being asked to adopt. They have industries that are reliance parties who are making a lot of money legitimately using American motion pictures, American recordings, and American software. If the British scheme were adopted in their countries, they would continue to use them. These Governments are as sophisticated in copyright as we are, and unless we engage in trade-tactic arm twisting, there is no way in the world that they would cut their own throats by adopting these provisions.

You are being asked to do much harm to American creators and users of noncopyrighted material on the theory that this will somehow buy similar treatment abroad for Hollywood, for Nashville, and for Silicon Valley, and it is not going to happen. And what we will end up with is laws in these other countries which give their reliance interests much greater protection than we give ours and a law here that is unconstitutional.

Thank you.

[The prepared statement of Mr. Karp follows:]

Subcommittee on Intellectual Property and Judicial Administration
House of Representatives

Subcommittee on Patents, Trademarks and Copyrights
United States Senate

August 12, 1994 Joint Hearing on Bills to
Retroactively Restore U.S. Copyrights in Certain
Works of Foreign Origin Now in the U. S Public Domain
[S.2368; H.R. 4894]

STATEMENT OF IRWIN KARP, of the COLUMBIA LAW SCHOOL
"CLA" STUDY ON U.S. IMPLEMENTATION OF BERNE ARTICLE 18

Introduction

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My name is Irwin Karp. I submit this statement on the House and Senate Bills to retroactively grant copyright to certain foreign literary, musical, artistic and other copyrightable works now in the U.S. public domain that originated in Berne or WTO member countries, and are in copyright there. The Bills do not apply to U.S. works that lost copyright prematurely, or to foreign works that entered the public domain when their U.S. copyrights expired.

[A] Retroactive Protection Should be Granted I urge that Congress grant retroactive copyright protection to those Berne and WTO works, subject to amendments referred to in [B] and [C] below.

(1) The United States became obliged in 1989 to grant this protection under Berne's Article 18, and again this year under the TRIPS/GATT agreement.

(2) U.S. retroactive protection for foreign works in our public domain may induce other countries with whom we recently established copyright relations to grant retroactive protection to contemporary U.S. works that previously fell into their public domains.

(3)

will

Retroactive copyright protection, properly formulated, not violate the First Amendment, Copyright Clause, or the takings clause of the Fifth Amendment.

[B] U.S. Reliance Parties Deserve Better Protection I urge the Bills be amended to provide fair and constitutional protection to U.S. authors, composers, artists, publishers, distributors of records, films and videocassettes, educators, librarians and other "reliance parties" who have made legal and legitimate use of foreign works while they were in our public domain, prior to their retroactive copyrighting by enactment of the pending Bills.

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