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Copyright Law Summary

Performance Rights Act

S.2500, H.R.4789, 12/18/2007

Basic Information

Sen. Patrick J. Leahy (VT) and Rep. Howard L. Berman (CA) introduced this bill in chambers on December 18, 2007.  The bill is described, “A bill to provide fair compensation to artists for use of their sound recordings,” and shall be also known as the “Performance Rights Act.”

This bill revises federal copyright law to provide performers of sound recordings rights to compensation from terrestrial broadcasters.  It sets a flat annual fee in lieu of payment of royalties for individual terrestrial broadcast stations with gross revenues of less than $1.25 million and for non-commercial, public broadcast stations.  Alternatively, it grants terrestrial broadcast stations engaged in the production of limited feature uses of sound recordings a “per program license option.”

The proposed legislation provides an exemption from royalty payments for broadcasts of religious services and for incidental uses of musical sound recordings.

In addition, the proposed legislation makes clear that nothing in the Performance Rights Act will adversely affect the public performance rights or royalties payable to songwriters or copyright owners of musical works.

In the Senate, the bill went through two readings, and was referred to the Committee of the Judiciary on December 18, 2007.  In the Lower House, the last major action was a referral of the bill to the House Subcommittee on Courts, the Internet, and Intellectual Property on January 14, 2008.

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Companies Mentioned

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The following companies are mentioned in Law Updates:

Stryker Corp.

Mars, Inc.

Harris Associates, L.P.

American Society of Composers, Authors, and Publishers

Boston Scientific Corp.

Bad Boy Records LLC

Harringbone Creative Services, Inc.

UMG Recordings, Inc.

Westbound Records, Inc.

United States Patent and Trademark Office

Louis Vuitton Malletier S.A.

Consolidated Management Group, LLC

Haute Diggity Dog, LLC

California Department of Corporations

Woofies, LLC d.b.a. Woofie’s Pet Boutique

Consolidated Leasing Hugoton Joint Venture #2

International Trademark Association

Metal Management, Inc.

Consolidated Leasing Anadarko Joint Venture

Acumed, LLC

European Metal Recycling, Ltd.

Guardian Capital Management

Vesta Insurance Group, Inc.

Stryker Sales Corp.

Torchmark Corp.

Stryker Orthopaedics

KPMG Peat Marwick, LLP

Howmedica Osteonics Corp.

Florida State Board of Administration

The Cleaners & Caulkers Local 1 Pension Fund

Litecubes, LLC

Smithkline Beecham Corp. (d.b.a. GlaxoSmithKline, plc.)

Tribune Company

Northern Lights Products, Inc. d.b.a. GlowProducts.com

City of Philadelphia Board of Pensions and Retirement

Chute Gerdeman, Inc.

Tellabs, Inc.

McKesson Information Solutions, Inc.

Makor Issues & Rights, Ltd.

Derek Andrew, Inc.

Bridge Medical, Inc.

HT Window Fashion Corp.

Poof Apparel Corp.

Television Music License Committee

Custom Manufacturing and Engineering, Inc.

SESAC, Inc.

Midway Services, Inc.

AOL LLC f.k.a. America Online, Inc.

LG Electronics, Inc.

Automated Engineering Corp.

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