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HR 2589

American Bar Association
Section of Intellectual Property


HR 2589
105th CONGRESS
2d Session

H. R. 2589
IN THE SENATE OF THE UNITED STATES

March 26, 1998 Received; read twice and referred to the Committee on the Judiciary

AN ACT
To amend the provisions of title 17, United States Code, with respect to the duration of copyright, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

TITLE I--COPYRIGHT TERM EXTENSION

SEC. 101. SHORT TITLE.
This title may be referred to as the `Sonny Bono Copyright Term Extension Act'.

SEC. 102. DURATION OF COPYRIGHT PROVISIONS.
(a) PREEMPTION WITH RESPECT TO OTHER LAWS- Section 301(c) of title 17, United States Code, is amended by striking `February 15, 2047' each place it appears and inserting `February 15, 2067'.
(b) DURATION OF COPYRIGHT: WORKS CREATED ON OR AFTER JANUARY 1, 1978-
Section 302 of title 17, United States Code, is amended--
(1) in subsection (a) by striking `fifty' and inserting `70';
(2) in subsection (b) by striking `fifty' and inserting `70';
(3) in subsection (c) in the first sentence--
(A) by striking `seventy-five' and inserting `95'; and
(B) by striking `one hundred' and inserting `120'; and
(4) in subsection (e) in the first sentence--
(A) by striking `seventy-five' and inserting `95';
(B) by striking `one hundred' and inserting `120'; and
(C) by striking `fifty' each place it appears and inserting `70'.
(c) DURATION OF COPYRIGHT: WORKS CREATED BUT NOT PUBLISHED OR COPYRIGHTED

BEFORE JANUARY 1, 1978- Section 303 of title 17, United States Code, is amended in the second sentence by striking `December 31, 2027' and inserting `December 31, 2047'.
(d) DURATION OF COPYRIGHT: SUBSISTING COPYRIGHTS-
(1) IN GENERAL- Section 304 of title 17, United States Code, is amended--

(A) in subsection (a)--
(i) in paragraph (1)--
(I) in subparagraph (B) by striking `47' and inserting `67'; and
(II) in subparagraph (C) by striking `47' and inserting `67';
(ii) in paragraph (2)--
(I) in subparagraph (A) by striking `47' and inserting `67'; and
(II) in subparagraph (B) by striking `47' and inserting `67'; and
(iii) in paragraph (3)--
(I) in subparagraph (A)(i) by striking `47' and inserting `67'; and
(II) in subparagraph (B) by striking `47' and inserting `67';
(B) by amending subsection (b) to read as follows:

`(b) COPYRIGHTS IN THEIR RENEWAL TERM AT THE TIME OF THE EFFECTIVE DATE OF THE SONNY BONO COPYRIGHT TERM EXTENSION ACT- Any copyright still in its renewal term at the time that the Sonny Bono Copyright Term Extension Act becomes effective shall have a copyright term of 95 years from the date copyright was originally secured.';

(C) in subsection (c)(4)(A) in the first sentence by inserting `or, in the case of a termination under subsection (d), within the five-year period specified by subsection (d)(2),' after `specified by clause (3) of this subsection,'; and (D) by adding at the end the following new subsection:

`(d) TERMINATION RIGHTS PROVIDED IN SUBSECTION (c) WHICH HAVE EXPIRED ON OR BEFORE THE EFFECTIVE DATE OF THE SONNY BONO COPYRIGHT TERM EXTENSION ACT- In
the case of any copyright other than a work made for hire, subsisting in its renewal term on the effective date of the Sonny Bono Copyright Term Extension Act for which the termination right provided in subsection (c) has expired by such date, where the author or owner of the termination right has not previously exercised such termination right, the exclusive or nonexclusive grant of a transfer or license of the renewal copyright or any right under it, executed before January 1, 1978, by any of the persons designated in subsection (a)(1)(C) of this section, other than by will, is subject to termination under the following conditions:

`(1) The conditions specified in subsection (c)(1), (2), (4), (5), and (6) of this section apply to terminations of the last 20 years of copyright term as provided by the amendments made by the Sonny Bono Copyright Term Extension Act.

`(2) Termination of the grant may be effected at any time during a period of 5 years beginning at the end of 75 years from the date copyright was originally secured.'.

(2) COPYRIGHT RENEWAL ACT OF 1992- Section 102 of the Copyright Renewal Act of 1992 (Public Law 102-307; 106 Stat. 266; 17 U.S.C. 304 note) is amended--

(A) in subsection (c)--
(i) by striking `47' and inserting `67';
(ii) by striking `(as amended by subsection (a) of this section)'; and
(iii) by striking `effective date of this section' each place it appears and inserting `effective date of the Sonny Bono Copyright Term Extension Act'; and
(B) in subsection (g)(2) in the second sentence by inserting before the period the following: `, except each reference to forty-seven years in such provisions shall be deemed to be 67 years'.

SEC. 103. TERMINATION OF TRANSFERS AND LICENSES COVERING EXTENDED RENEWAL TERM.
Sections 203(a)(2) and 304(c)(2) of title 17, United States Code, are each amended--
(1) by striking `by his widow or her widower and his or her children or grandchildren'; and
(2) by inserting after subparagraph (C) the following: `(D) In the event that the author's widow or widower, children, and grandchildren are not living, the author's executor, administrator, personal representative, or trustee shall own the author's entire termination interest.'.

SEC. 104. REPRODUCTION BY LIBRARIES AND ARCHIVES.
Section 108 of title 17, United States Code, is amended--
(1) by redesignating subsection (h) as subsection (i); and (2) by inserting after subsection (g) the following: `(h)(1) For purposes of this section, during the last 20 years of any term of copyright of a published work, a library or archives, including a nonprofit educational institution that functions as such, may reproduce, distribute, display, or perform in facsimile or digital form a copy or phonorecord of such work, or portions thereof, for purposes of preservation, scholarship, or research, if such library or archives has first determined, on the basis of a reasonable investigation, that none of the conditions set forth in subparagraphs (A), (B), and (C) of paragraph (2) apply.

`(2) No reproduction, distribution, display, or performance is authorized under this subsection if--

`(A) the work is subject to normal commercial exploitation;
`(B) a copy or phonorecord of the work can be obtained at a reasonable price; or
`(C) the copyright owner or its agent provides notice pursuant to regulations promulgated by the Register of Copyrights that either of the conditions set forth in subparagraphs (A) and (B) applies.
`(3) The exemption provided in this subsection does not apply to any subsequent uses by users other than such library or archives.'.

SEC. 105. VOLUNTARY NEGOTIATION REGARDING DIVISION OF ROYALTIES.
It is the sense of the Congress that copyright owners of audiovisual works for which the term of copyright protection is extended by the amendments made by this title, and the screenwriters, directors, and performers of those audiovisual works, should negotiate in good faith in an effort to reach a voluntary agreement or voluntary agreements with respect to the establishment of a fund or other mechanism for the amount of remuneration to be divided among the parties for the exploitation of those audiovisual works.

SEC. 106. ASSUMPTION OF CONTRACTUAL OBLIGATIONS RELATED TO TRANSFERS OF RIGHTS IN MOTION PICTURES.

(a) IN GENERAL- Part VI of title 28, United States Code, is amended by adding at the end the following new chapter:

`CHAPTER 180--ASSUMPTION OF CERTAIN CONTRACTUAL OBLIGATIONS
`Sec. `4001. Assumption of contractual obligations related to transfers of rights in motion pictures.

`Sec. 4001. Assumption of contractual obligations related to transfers of rights in motion pictures

`(a) ASSUMPTION OF OBLIGATIONS- In the case of a transfer of copyright ownership in a motion picture (as defined in section 101 of title 17, United States Code) that is produced subject to 1 or more collective bargaining agreements negotiated under the laws of the United States, if the transfer is executed on or after the effective date of this Act and is not limited to public performance rights, the transfer instrument shall be deemed to incorporate the assumption agreements applicable to the copyright ownership being transferred that are required by the applicable collective bargaining agreement, and the transferee shall be subject to the obligations under each such assumption agreement to make residual payments and provide related notices, accruing after the effective date of the transfer and applicable to the exploitation of the rights transferred, and any remedies under each such assumption agreement for breach of those obligations, as those obligations and remedies are set forth in the applicable collective bargaining agreement, if--

`(1) the transferee knows or has reason to know at the time of the transfer that such collective bargaining agreement was or will be applicable to the motion picture; or

`(2) in the event of a court order confirming an arbitration award against the transferor under the collective bargaining agreement, the transferor does not have the financial ability to satisfy the award within 90 days after the order is issued.

`(b) FAILURE TO NOTIFY- If the transferor under subsection (a) fails to notify the transferee under subsection (a) of applicable collective bargaining obligations before the execution of the transfer instrument, and subsection (a) is made applicable to the transferee solely by virtue of subsection (a)(2), the transferor shall be liable to the transferee for any damages suffered by the transferee as a result of the failure to notify.

`(c) DETERMINATION OF DISPUTES AND CLAIMS- Any dispute concerning the application of subsection (a) and any claim made under subsection (b) shall be determined by an action in United States district court, and the court in its discretion may allow the recovery of full costs by or against any party and may also award a reasonable attorney's fee to the prevailing party as part of the costs.'.

(b) CONFORMING AMENDMENT- The table of chapters for part VI of title 28, United States Code, is amended by adding at the end the following: 4001'.

SEC. 107. EFFECTIVE DATE.
This title and the amendments made by this title shall take effect on the date of the enactment of this Act.