Bill Text: NY S07910 | 2017-2018 | General Assembly | Introduced

New York Senate Bill 7910 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Relates to music licensing agreements; provides requirements regarding conduct and contracts related to music licensing agreements; requires music licensing rights to be listed electronically and filed with the department of state.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2018-06-20 - COMMITTED TO RULES [S07910 Detail]

Download: New_York-2017-S07910-Introduced.html

                STATE OF NEW YORK
        ________________________________________________________________________
                                          7910
                    IN SENATE
                                      March 9, 2018
                                       ___________
        Introduced  by  Sen.  FUNKE  -- read twice and ordered printed, and when
          printed to be committed to the Committee on Cultural Affairs, Tourism,
          Parks and Recreation
        AN ACT to amend the arts and cultural affairs law, in relation to  music
          licensing agreements
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. The arts and cultural affairs law is amended  by  adding  a
     2  new title H to read as follows:
     3                                   TITLE H
     4                               MUSIC LICENSING
     5                                 ARTICLE 26
     6                         MUSIC LICENSING AGREEMENTS
     7  Section 26.01. Definitions.
     8          26.02. Registration of agreements and members.
     9          26.03. Representative conduct.
    10          26.04. Information.
    11          26.05. Contracts.
    12          26.06. Enforcement.
    13          26.07. Statutory construction.
    14    § 26.01. Definitions. 1. As used in this section:
    15    (a)  "Copyright owner" means the owner of a copyright of a nondramatic
    16  musical work recognized and enforceable under the copyright laws of  the
    17  United  States  pursuant  to  Title 17 of the United States Code (17 USC
    18  Sec. 101 et seq.). Copyright owner does not include the owner of a copy-
    19  right in a motion picture or audiovisual work, or in part  of  a  motion
    20  picture or audiovisual work.
    21    (b)  "Performing  rights  society" means an association or corporation
    22  that licenses the public performance of  nondramatic  musical  works  on
    23  behalf  of  copyright owners, such as the American Society of Composers,
    24  Authors and Publishers (ASCAP), Broadcast Music, Inc. (BMI), and  SESAC,
    25  Inc.
    26    (c)  "Proprietor"  means  the owner of a retail establishment, restau-
    27  rant, inn, bar, tavern, sports or entertainment facility, or  any  other
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14545-03-8

        S. 7910                             2
     1  similar  place  of business or professional office located in this state
     2  in which the public may assemble and in which nondramatic musical  works
     3  or  similar  copyrighted works may be performed, broadcast, or otherwise
     4  transmitted for the enjoyment of members of the public there assembled.
     5    (d)  "Royalty"  or  "royalties"  means the fees payable to a copyright
     6  owner or performing rights society for the public performance of nondra-
     7  matic musical works or other similar works.
     8    § 26.02. Registration of agreements and members.  1.  Each  performing
     9  rights  society  shall register and file annually with the department of
    10  state a copy of each agreement made for the payment of royalties for the
    11  licensing of a nondramatic musical work.
    12    2. Each performing rights society shall  register  and  file  annually
    13  with the department of state, and make available electronically to busi-
    14  ness  proprietors, the most current available list of members and affil-
    15  iates represented by the performing rights society and the most  current
    16  available list of the performed works that the performing rights society
    17  licenses.
    18    §  26.03.  Representative  conduct.  1.  Before  seeking  payment or a
    19  contract for payment of royalties for the use of  copyrighted  works  by
    20  that proprietor, a representative or agent for a performing rights soci-
    21  ety shall:
    22    (a)  identify himself or herself to the proprietor or the proprietor's
    23  employees; and
    24    (b) disclose that he or she is acting on behalf of a performing rights
    25  society, and disclose the purpose for being on the premises.
    26    2. A representative or agent of a performing rights society shall not:
    27    (a) use obscene, abusive or profane language when  communicating  with
    28  the proprietor or his or her employees;
    29    (b) communicate by telephone or in-person with a proprietor other than
    30  at the proprietor's place of business during the hours when the proprie-
    31  tor's  business  is open to the public. However, such communications may
    32  occur at a location other than the proprietor's  place  of  business  or
    33  during hours when the proprietor's business is not open to the public if
    34  the proprietor or the proprietor's agents, employees, or representatives
    35  so authorizes;
    36    (c)  engage in any coercive conduct, act, or practice that is substan-
    37  tially disruptive to a proprietor's business;
    38    (d) use or attempt to use any unfair or deceptive act or  practice  in
    39  negotiating with a proprietor; or
    40    (e) communicate with an unlicensed proprietor about licensing perform-
    41  ances of musical works at the proprietor's establishment after receiving
    42  notification  in  writing  from  an attorney representing the proprietor
    43  that all further communications related to the licensing of the proprie-
    44  tor's establishment by the performing rights society should be addressed
    45  to the attorney. However,  the  performing  rights  society  may  resume
    46  communicating  directly  with  the  proprietor  if the attorney fails to
    47  respond to communications from  the  performing  rights  society  within
    48  sixty  days,  or  the  attorney becomes nonresponsive for a period of at
    49  least sixty days.
    50    3. A representative or agent of  a  performing  rights  society  shall
    51  provide  at  least  forty-eight  hours notice before entering a place of
    52  business for investigative or educational purposes.
    53    § 26.04. Information. 1. The department of state shall inform proprie-
    54  tors of their rights and responsibilities regarding the public  perform-
    55  ance of copyrighted music as part of the business of licensing service.

        S. 7910                             3
     1    2. The department of state shall encourage performing rights societies
     2  to  conduct  outreach campaigns to educate existing proprietors on their
     3  rights and responsibilities regarding the public  performance  of  copy-
     4  righted music.
     5    § 26.05. Contracts. 1. No performing rights society may enter into, or
     6  offer  to  enter  into,  a  contract  for  the payment of royalties by a
     7  proprietor unless at least seventy-two hours prior to the  execution  of
     8  that  contract it provides to the proprietor or the proprietor's employ-
     9  ees, in writing:
    10    (a) a schedule of the rates and terms of royalties under the contract;
    11  and
    12    (b) notice that the proprietor has electronic  access  to  information
    13  pursuant  to  subdivision  two  of  section  26.02 of this article; such
    14  notice shall include how to access such information electronically.
    15    2. A contract for the payment of  royalties  executed  in  this  state
    16  must:
    17    (a) be in writing;
    18    (b) be signed by the parties; and
    19    (c) include the:
    20    (i) proprietor's name and business address;
    21    (ii) name and location of each place of business to which the contract
    22  applies;
    23    (iii) duration of the contract; and
    24    (iv)  schedule  of  rates  and  terms of the royalties to be collected
    25  under the contract, including any sliding  scale  or  schedule  for  any
    26  increase or decrease of those rates for the duration of the contract.
    27    §  26.06.  Enforcement.  Anyone  who  willfully  violates  any  of the
    28  provisions may be liable for a civil penalty of not more than one  thou-
    29  sand  dollars  per violation. Multiple violations on a single day may be
    30  considered separate violations. The attorney general may  seek  recovery
    31  of  all such penalties in a civil action. The attorney general may issue
    32  civil investigative demands for the inspection of documents,  interroga-
    33  tory responses, and oral testimony in the enforcement of this article.
    34    §  26.07.  Statutory  construction.  Nothing  in  this  article may be
    35  construed to prohibit performing rights societies from conducting inves-
    36  tigations to determine the existence of  music  use  by  a  proprietor's
    37  business or informing a proprietor of the proprietor's obligations under
    38  the  copyright  laws  of  the  United States pursuant to Title 17 of the
    39  United States Code (17 USC Sec. 101 et seq.).
    40    § 2. This act shall take effect January 1, 2019.