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                            CHAPTER 336-H.F.No. 732 
                  An act relating to commerce; regulating the 
                  enforcement of copyright licenses on certain 
                  nondramatic musical works and similar works; requiring 
                  certain notices; prohibiting certain practices; 
                  providing remedies; proposing coding for new law in 
                  Minnesota Statutes, chapter 325E. 
           Section 1.  [325E.50] [DEFINITIONS.] 
           Subdivision 1.  [TERMS.] For purposes of sections 325E.50 
        to 325E.57, the terms defined in this section have the meanings 
        given them. 
           Subd. 2.  [COPYRIGHT OWNER.] "Copyright owner" means the 
        owner of a copyright of a nondramatic musical work recognized 
        and enforceable under the copyright laws of the United States 
        under United States Code, title 17, sections 101 to 810. 
           Subd. 3.  [PERFORMING RIGHTS SOCIETY.] "Performing rights 
        society" means an association, corporation, or other entity that 
        licenses the public performance of nondramatic musical works on 
        behalf of copyright owners, such as the American Society of 
        Composers, Authors, and Publishers (ASCAP); Broadcast Music, Inc.
        (BMI); and SESAC, Inc. 
           Subd. 4.  [PROPRIETOR.] "Proprietor" means the owner of a 
        retail establishment, office, restaurant, inn, bar, tavern, or 
        any other similar establishment or place of business located in 
        this state in which the public may assemble and in which 
        nondramatic musical works may be performed, broadcast, or 
        otherwise transmitted. 
           Subd. 5.  [ROYALTY OR ROYALTIES.] "Royalty" or "royalties" 
        means the license fees payable by a proprietor to a performing 
        rights society for the public performance of nondramatic musical 
           Sec. 2.  [325E.51] [LICENSING NEGOTIATIONS.] 
           No performing rights society shall enter into, or offer to 
        enter into, a contract for the payment of royalties by a 
        proprietor unless at the time of the offer, or any time 
        thereafter, but no later than 72 hours prior to the execution of 
        that contract, it provides to the proprietor, in writing, the 
           (1) a schedule of the rates and terms of royalties under 
        the contract; 
           (2) upon the request of the proprietor, the opportunity to 
        review the most current available list of the members or 
        affiliates represented by the society; and 
           (3) notice that it will make available, upon written 
        request of any proprietor, at the sole expense of the 
        proprietor, the most current available listing of the 
        copyrighted musical works in the performing rights society's 
        repertory, provided that the notice shall specify the means by 
        which the information can be secured. 
           Sec. 3.  [325E.52] [ROYALTY CONTRACT REQUIREMENTS.] 
           Every contract for the payment of royalties between a 
        proprietor and a performing rights society executed in this 
        state must be in writing and signed by the parties and must 
        include, at a minimum, the following information: 
           (1) the proprietor's name and business address and the name 
        and location of each place of business to which the contract 
           (2) the name of the performing rights society; 
           (3) the duration of the contract; and 
           (4) the schedule of rates and terms of the royalties to be 
        collected under the contract, including any sliding scale or 
        schedule for any increase or decrease of rates for the duration 
        of the contract. 
           Sec. 4.  [325E.53] [IMPROPER LICENSING PRACTICES.] 
           No performing rights society or any agent or employee of a 
        performing rights society shall:  (1) collect, or attempt to 
        collect, from a proprietor licensed by that performing rights 
        society, a royalty payment except as provided in a contract 
        executed pursuant to this act; or (2) enter into the premises of 
        a proprietor's business for the purpose of discussing a contract 
        for payment of royalties for the use of copyrighted works by 
        that proprietor without first identifying himself or herself to 
        the proprietor or the proprietor's employees and disclosing that 
        the agent is acting on behalf of the performing rights society 
        and disclosing the purpose of this discussion.  
           Sec. 5.  [325E.54] [INVESTIGATION.] 
           Nothing in sections 325E.50 to 325E.57 shall be construed 
        to prohibit a performing rights society from conducting 
        investigations to determine the existence of music use by a 
        proprietor or informing a proprietor of the proprietor's 
        obligation under the federal copyright law, United States Code, 
        title 17. 
           Sec. 6.  [325E.55] [REMEDIES; INJUNCTION.] 
           A person who suffers a violation of sections 325E.50 to 
        325E.57 may bring an action to recover actual damages and 
        reasonable attorney's fees and seek an injunction or any other 
        available remedy. 
           Sec. 7.  [325E.56] [REMEDIES CUMULATIVE.] 
           The rights, remedies, and prohibitions contained in 
        sections 325E.50 to 325E.57 are in addition to and cumulative of 
        any other right, remedy, or prohibition accorded by common law, 
        or state or federal law.  Nothing contained in sections 325E.50 
        to 325E.57 shall be construed to deny, abrogate, or impair any 
        such common law or statutory right, remedy, or prohibition. 
           Sec. 8.  [325E.57] [EXCEPTIONS.] 
           Sections 325E.50 to 325E.57 do not apply to contracts 
        between copyright owners or performing rights societies and 
        broadcasters licensed by the Federal Communications Commission, 
        or to contracts with cable operators, programmers, or other 
        transmission services.  Sections 325E.50 to 325E.57 do not apply 
        to musical works performed in synchronization with an 
        audio/visual film or tape, or to the gathering of information 
        for determination of compliance with or activities related to 
        the enforcement of sections 325E.169 to 325E.201. 
           Presented to the governor March 18, 1996 
           Signed by the governor March 19, 1996, 3:42 p.m.

Official Publication of the State of Minnesota
Revisor of Statutes