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legislation. Failure to secure these provisions, ironically, will undoubtedly make many of our trading partners extremely happy since it will amount to a license to continue pirating our works.

Mr. HUGHES. Mr. Urbanski, welcome.

STATEMENT OF LARRY URBANSKI, CHAIRMAN OF THE FAIRNESS IN COPYRIGHT COALITION, AND PRESIDENT, MOVIECRAFT, INC.

Mr. URBANSKI. I would like to thank the chairman, Mr. Hughes, for the opportunity to discuss the Berne and GATT Retroactivity Act of 1994.

My name is Larry Urbanski, chairman of the Fairness in Copyright Coalition and president of Moviecraft, Inc., a small growing company, family-owned. We have an archive with approximately 10 million feet of catalogued motion picture film. We specialize in industrial, educational, travel, and television shows. The collection covers 1909 to 1964. Our entire collection has been researched and found to be in the public domain.

We offer stock footage for commercial, industrial corporate films, documentaries and any use imaginable for archival images. We are very much a part of the information highway.

We also have a home video line, with approximately 180 titles at present. We have supplied tapes to students doing research, museums, universities and we helped the U.S. Navy acquire copies of films they previously discarded. Our clients are from the smallest user to major motion picture companies.

We have produced two series for television syndication from public domain footage: "The Wartime Years" and "Hollywood Dreams." Due to concern over copyright changes occurring in Washington, I became chairman of the Fairness in Copyright Coalition, a group representing video distributors, stock houses, historians, authors, and archives. Many of our members participated in the Film Preservation Study of 1993, a part of the 1992 copyright legislation.

It is interesting to note the recommendations of the Librarian of Congress, James H. Billington, in "Redefining Film Preservation, a National Plan." He addresses the issue of orphan films, which are the films our industry utilizes. Most think of film preservation and Hollywood films. Public domain orphan films are the largest segment of film, comprising approximately 75 percent of the films made. Orphan films include: public domain films, industrial, educational, actuality footage, advertising, religious, business, documentaries, animation, and commercials. They are titles like, "Dating Do's and Don't's," "The Magic Key," which is the story of advertising in 1940, or "France by Motor Car in 1925."

The recommendations of Mr. Billington state, "The larger and more difficult concern is orphan films, works without clearly defined owners or belonging to commercial interests unable or unwilling to take responsibility for long-term care." It is proposed to "use Federal preservation copying dollars to preserve these films."

Our industry has been preserving these films at no cost to the taxpayers, however, these are the films the legislation affects. As private archives, we preserve these works as do my colleagues, free of charge to the public in exchange for their usage through public domain.

Orphan films are important records of our civilization. Federal preservation copying dollars can be used for other film projects if the new legislation accommodates our concerns.

Moviecraft was incorporated in 1985. We were made aware of the 1992 Copyright Reform Act which automatically renewed works after 1964. With the help of authors, producers, stock houses, archives, colleges and historical societies, I chaired a group called the Film and Image Preservationists Against Automatic Copyright Renewal. We brought our concerns to the legislators, but the 1992 legislation was still implemented.

The 1992 legislation was devastating for archives and distributors. The automatic renewal copyrighted everything for a second term after 1964. Orphan films after 1964 were reluctantly removed from our collections. Since they were abandoned, clearances were impossible. We couldn't find the owners.

Some companies, because they were bought out by other corporations, would not release or license any rights on films even though they held copyright. They simply didn't want anything to do with these early works. The copyrights were resurrected from the dead, and the owners didn't care.

This is my first experience with automatic or blanket renewal. These works should have been allowed to lapse into the public domain for freedom of use. The creative community would be benefiting from these works, which is the reason for public domain. Their usage would enrich our historical culture.

The Berne and GATT Retroactivity Act of 1994 initially works counterproductive to my industry, as the 1992 legislation did.

Our stock footage division, as well as the 1,500 other stock houses across the United States, must supply in writing proof the material offered is in the public domain or we must indemnify.

The NAFTA provision on copyright was workable for us. Although we oppose restoration on constitutional grounds, NAFTA allowed claiming of foreign post-1978 works only and allowed a window of 1 year. The key here is once this period is over, those works not claimed remained in the public domain.

Mr. HUGHES. Mr. Urbanski, can you summarize for us the balance of your testimony?

Mr. URBANSKI. Summarize, OK.

Twenty percent of our holdings are in foreign works. The 1992 legislation caused us a problem with the automatic renewal. The 1994 legislation again causes us problems with automatic restoration. There has to be basically an end, and I have put together what are some possible compromises, because I understand these other important issues of piracy and so on overseas. I can't question those. Certainly, they are important.

We think that the amount of foreign works claimed may be small. This will leave a large amount of abandoned works which must be allowed to remain in the public domain for the public benefit. And when I am saying small, I am talking about these orphan films, no one is going to bother with them. The automatic restoration will stop the commercial use so there must be a compromise

answer.

What we need is a more NAFTA-type provision. We would like the restoration to start in 1978. I know everyone would like-everyone on this panel would like it to start at 1919. The legislation should allow for an end-this is a key-for example, after the 1

year NAFTA window, the material left over remained in the public domain.

Can we compromise to include a year, for example, 1964? Can we extend the window for claimants to 3 years or 4 years where this legislation, and I am just talking about from what I have heard today, where there can be this reciprocity worked out in this 3- or 4-year period, but at least have there be an end where the material that is left over remains in the public domain for usage from stock houses.

We are not a small industry. Footage 89, which was done 6 years ago, there are 1,500 companies in here and we work with the creative community. We love our work. We feel we are doing important work, and we would just like to continue that.

I think-oh, and I also have three papers that we put together for this hearing and I would just like to offer those for the record, and that was the copyright restoration provision, GATT's agreement, our compliance obligations, paper on reliance parties and our constitutional concerns on restoration.

Mr. HUGHES. Without objection, they will be received for the record.

Thank you.

[The prepared statement of Mr. Urbanski follows:]

TESTIMONY GIVEN ON 8-12-94 TO THE INTELLECTUAL PROPERTY AND JUDICIAL ADMINISTRATION SUBCOMMITTEE BY:

LARRY URBANSKI, President Moviecraft, Inc.

THE FAIRNESS IN COPYRIGHT COALITION, Chairman
P.O. Box 438

Orland Park, IL 60462

I would like to thank the Chairman of the Intellectual Property and Judicial Administration Subcommittee, Mr. Hughes, for the opportunity to discuss the Bern and GATT Retroactivity Act of 1994.

My name is Larry Urbanski, Chairman of the Fairness in Copyright Coalition, and President of Moviecraft, Inc., a growing small company, family owned. We are an archive with approximately 10 million feet of cataloged motion picture film. We specialize in industrial, educational, travel, and television shows. The collection covers 1909 to 1964. Our entire collection has been researched and found to be in the public domain.

We offer stock footage for commercials, industrial corporate films,

documentaries, and any use imaginable for archival images. We are very much a part of the "Information Highway."

We also have a home video line with approximately 180 titles at present. We have supplied tapes to students doing research, museums, Universities, and we helped the United States Navy acquire copies of films they previously discarded. Our clients are from the smallest user, to major motion picture companies.

We have produced two series for television syndication from public domain footage, The War Time Years and Hollywood Dreams.

Due to concern over copyright changes occurring in Washington, I became chairman of the Faimess in Copyright Coalition, a group of representing video distributors, stock houses, historians, authors, and archives.

Many of our members participated in the film preservation study of 1993, a part of the 1992 copyright legislation. It's interesting to note the recommendations of the Librarian of Congress, James H. Billington, in "Redefining Film Preservation, A National Plan. " He addresses the issue of orphan films, which are the films our industry utilizes. Most think of film preservation and Hollywood films. Public domain "orphan films" are the largest segment of films, comprising approximately 75% of films made. Orphan films include public domain films, Industrial, educational, actuality footage, advertising, religious, business, documentaries, animation and commercials. They are titles like "Dating Do's and Dont's", "The Magic Key" (The story of Advertising) 1940, Or "France by Motorcar 1925". The