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the l'nited States, prior to, in the case of an invention, July 1, 1918, and in the case of a registered design, July 1, 1978.

“A Government employee shall have the right to bring suit against the Government under this section except where he was in a position to order, influence, or induce use of the registered design or invention by the Government. This section shall not confer a right of action on any registrant or patentee or any assignee of such registrant or patentee with respect to any design created by or invention discovered or invented by a person while in the employment or service of the United States, where the design or invention was related to the official functions of the employee, in cases in which such functions included research and development, or in the making of which Government time, materials, or facilities were used."

TIME OF TAKING EFFECT
SEC. 233. This title shall take effect one year after enactment of this
Art.

NO RETROACTIVE EFFECT
Sec. 234. Protection under this title shall not be available for any
design that has been inade public as provided in section 204(b) prior
to the effective date of this title.

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SHORT TITLE

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SEC. 235. This title may be cited as “The Design Protection Act of 1975".

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94111 CONGRESS

1st SESSION

H. R. 5345

IN THE JIOUSE OF REPRESENTATIVES

MARCII 21, 1975 Mr. DANIELSON introduced the following bill; which was referred to the Com

mittee on the Judiciary

A BILL

To amend the Copyright Act of 1909, and for other purposes.

Be it enacted by the Senate and Ilouse of Representa2 tires of the United States of America in Congress assembled,

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3 That this Act may be cited as the “Performance Rights

Amendment of 1975".

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SEC. 2. The first section of title 17, L'nited States Code,

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(1) by striking out “and” where it appears at the end of subsections (c) and (d);

(2) by striking out the period at the end of sub

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section (c) and inserting in lieu thereof a semicolon and

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(3) by striking out subsection (f) and inserting in

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3 “(f) (1) To perform publicly for profit and to reproduce 4 and distribute to the public by sale or other transfer of owner5 ship, or by rental, lease, or lending, any reproduction of a 6 copyrighted work which is a sound recording: Provided, 7 That the exclusive rights of the owner of a copyright in a 8 sound recording to reproduce and perform it are limited to 9 the rights to duplicate the sound recording in a tangible 10 form that directly or indirectly recaptures the actual sounds 11 fixed in the recording, and to perform those actual sounds: 12 Provided further, That these rights do not extend to the 13 making or duplication of another sound recording that is an 14 independent fixation of other sounds, or to the performance

15 of other sounds, even though such sounds imitate or simulate

16 those in the copyrighted sound recording; or to reproduc17 tions made by broadcasting organizations exclusively for

18 their own use.

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“ (2) Where the copyrighted sound recording has been

20 distributed to the public under the authority of the copyright

21 owner, the public performance of the sound recording shall

22 be subject to compulsory licensing in accordance with the

23 provisions of section 33 of this title.”; and

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(4) by inserting immediately before the period at

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the end of the last sentence of such section (relating to

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coin-operated machines) a comma and the following: “except that the provisions of this sentence shall not apply to the public performance of a sound recording

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under subsection (1) of this section".

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Sec. 3. (a) Chapter 1 of title 17, United States Code,

6 is amended by adding at the end thereof the following new

7 section:

8 “g33. Compulsory licensing; royalties

9 “(a) The annual royalty fees for the coinpulsory li10 cense provided for in section 1 (1) (2) of this title may, 11 at the user's option, be computed on either a blanket or a 12 prorated basis. Although a negotiated license may be substi13 tuted for the compulsory license prescribed by this subsec

14 tion, in no case shall the negotiated rate amount to less than

15 the following applicable rate or payment:

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“(1) For a radio broadcast station licensed by the

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Federal Communications Commission, the royalty rate

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or payment shall be as follows:

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“ (A) in the case of a broadcast station with

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gross receipts from its advertising sponsors of more

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than $25,000 but less than $100,000 a year, the

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yearly performance royalty payment shall be $250;

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or

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(B) in the case of a broadcast station with

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gross receipts from its advertising sponsors of more

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than $100.000 but less than $200,000 a year, the

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yearly performance royalty payment shall be $750;

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or

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“(C) in the case of a broadcast station with

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than $200,000 a year, the yearly blanket rate Hall be 1 per centum of the net receipts from the advertising sponsors during the applicable period, and the

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alternative prorated rate is a fraction of 1 per centum of such net receipts, taking into account the amount of the station's commercial time devoted to playing copyrighted sound recordings.

“(2) For a television broadcast station licensed by the Federal Communications ('ommission, the royalty

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rate or payment shall be as follows:

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“(A) in the case of a broadcast station with

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gross receipts from its advertising sponsors of more

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than $1,000,000 but less than $4,000,000 a year,

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the yearly performance royalty payment shall be

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$750; or

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“(B) in the case of a broadcast station with

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gross receipts from its advertising Sponsors of more than $1,000,000 a year, the yearly performance

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“ (3) For background music services and other

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