105TH CONGRESS
2D SESSION
H. R. 2589
AN ACT
To amend the provisions of title 17, United States
Code, with respect to the duration of copyright,
and for other purposes.
105TH CONGRESS
2D SESSION
H. R. 2589
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 Representa-
tives 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 in-
serting ‘‘70’’;
(2) in subsection (b) by striking ‘‘fifty’’ and in-
serting ‘‘70’’;
(3) in subsection (c) in the first sentence—
(A) by striking ‘‘seventy-five’’ and insert-
ing ‘‘95’’; and
(B) by striking ‘‘one hundred’’ and insert-
ing ‘‘120’’; and
(4) in subsection (e) in the first sentence—
(A) by striking ‘‘seventy-five’’ and insert-
ing ‘‘95’’;
(B) by striking ‘‘one hundred’’ and insert-
ing ‘‘120’’; and
(C) by striking ‘‘fifty’’ each place it ap-
pears and inserting ‘‘70’’.
(c) DURATION
OF COPYRIGHT: WORKS CREATED
BUT NOT PUBLISHED OR COPYRIGHTED BEFORE JANU-
ARY 1, 1978.—Section 303 of title 17, United States
Code, is amended in the second sentence by striking ‘‘De-
cember 31, 2027’’ and inserting ‘‘December 31, 2047’’.
(d) DURATION OF COPYRIGHT: SUBSISTING COPY-
RIGHTS.—
(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 strik-
ing ‘‘47’’ and inserting ‘‘67’’; and
(II) in subparagraph (C) by
striking ‘‘47’’ and inserting ‘‘67’’;
(ii) in paragraph (2)—
(I) in subparagraph (A) by strik-
ing ‘‘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 Copy-
right 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 sen-
tence by inserting ‘‘or, in the case of a termi-
nation 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 SUB-
SECTION (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 pro-
vided in subsection (c) has expired by such date, where
the author or owner of the termination right has not pre-
viously 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.—Sec-
tion 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 sub-
section (a) of this section)’’; and
(iii) by striking ‘‘effective date of this
section’’ each place it appears and insert-
ing ‘‘effective date of the Sonny Bono
Copyright Term Extension Act’’; and
(B) in subsection (g)(2) in the second sen-
tence by inserting before the period the follow-
ing: ‘‘, 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 fol-
lowing:
‘‘(D) In the event that the author’s widow
or widower, children, and grandchildren are not
living, the author’s executor, administrator, per-
sonal 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 sub-
section (i); and
(2) by inserting after subsection (g) the follow-
ing:
‘‘(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 in-
stitution that functions as such, may reproduce, distrib-
ute, display, or perform in facsimile or digital form a copy
or phonorecord of such work, or portions thereof, for pur-
poses of preservation, scholarship, or research, if such li-
brary 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 per-
formance 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 pro-
tection 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 ef-
fort to reach a voluntary agreement or voluntary agree-
ments 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 MO-
TION 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.
‘‘§ 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 incor-
porate the assumption agreements applicable to the copy-
right ownership being transferred that are required by the
applicable collective bargaining agreement, and the trans-
feree shall be subject to the obligations under each such
assumption agreement to make residual payments and
and any claim made under subsection (b) shall be deter-
mined 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 rea-
sonable attorney’s fee to the prevailing party as part of
the costs.’’.
(b) CONFORMING AMENDMENT.—The table of chap-
ters for part VI of title 28, United States Code, is amend-
ed by adding at the end the following:
‘‘180. Assumption of Certain Contractual Obligations ........ 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.
TITLE II—MUSIC LICENSING
SEC. 201. SHORT TITLE.
This title may be cited as the ‘‘Fairness in Musical
Licensing Act of 1998’’.
SEC. 202. EXEMPTION OF CERTAIN MUSIC USES FROM
COPYRIGHT PROTECTION.
(a) BUSINESS EXEMPTION.—Section 110(5) of title
17, United States Code, is amended to read as follows:
‘‘(5) communication by electronic device of a
transmission embodying a performance or display of
a nondramatic musical work by the public reception
of a broadcast, cable, satellite, or other transmission,
if—
‘‘(A)(i) the rooms or areas within the es-
tablishment where the transmission is intended
to be received by the general public contains
less than 3,500 square feet, excluding any space
used for customer parking; or
‘‘(ii) the rooms or areas within the estab-
lishment where the transmission is intended to
be received by the general public contains 3,500
square feet or more, excluding any space used
for customer parking, if—
‘‘(I) in the case of performance by
audio means only, the performance is
transmitted by means of a total of not
more than 6 speakers (excluding any
speakers in the device receiving the com-
munication), of which not more than 4
speakers are located in any 1 room or
area; or
‘‘(II) in the case of a performance or
display by visual or audiovisual means, any
visual portion of the performance or dis-
play is communicated by means of not
more than 2 audio visual devices, if no
such audio visual device has a diagonal
screen size greater than 55 inches, and any
audio portion of the performance or dis-
play is transmitted by means of a total of
not more than 6 speakers (excluding any
speakers in the device receiving the com-
munication), of which not more than 4
speakers are located in any 1 room or
area;
‘‘(B) no direct charge is made to see or
hear the transmission;
‘‘(C) the transmission is not further trans-
mitted to the public beyond the establishment
where it is received; and
‘‘(D) the transmission is licensed.’’.
(b) EXEMPTION RELATING TO PROMOTION.—Section
110(7) of title 17, United States Code, is amended—
(1) by striking ‘‘a vending’’ and inserting ‘‘an’’;
(2) by striking ‘‘sole’’;
(3) by inserting ‘‘or of the audio, video, or other
devices 
utilized 
in 
the 
performance,’’ 
after
‘‘phonorecords of the work,’’; and
(4) by striking ‘‘and is within the immediate
area where the sale is occurring’’.
SEC. 203. BINDING ARBITRATION OF RATE DISPUTES IN-
VOLVING PERFORMING RIGHTS SOCIETIES.
(a) IN GENERAL.—Section 504 of title 17, United
States Code, is amended by adding at the end the follow-
ing new subsection:
‘‘(d) PERFORMING RIGHTS SOCIETIES; BINDING AR-
BITRATION.—
‘‘(1) ARBITRATION
OF
DISPUTES
PRIOR
TO
COURT ACTION.—
‘‘(A) ARBITRATION.—(i) If a general music
user and a performing rights society are unable
to agree on the appropriate rate or fee to be
paid for the user’s past or future performance
of musical works in the repertoire of the per-
forming rights society, the general music user
shall, in lieu of any other dispute-resolution
mechanism established by any judgment or de-
cree governing the operation of the performing
rights society, be entitled to binding arbitration
of such disagreement pursuant to the rules of
the American Arbitration Association. The
music user may initiate such arbitration.
‘‘(ii) The arbitrator in such binding arbi-
tration shall determine a fair and reasonable
rate or fee for the general music user’s past
and future performance of musical works in
such society’s repertoire and shall determine
whether the user’s past performances of such
musical works, if any, infringed the copyrights
of works in the society’s repertoire. If the arbi-
trator determines that the general music user’s
past performances of such musical works in-
fringed the copyrights of works in the society’s
repertoire, the arbitrator shall impose a penalty
for such infringement. Such penalty shall not
exceed the arbitrator’s determination of the fair
and reasonable license fee for the performances
at issue.
‘‘(B) DEFINITIONS.—(i) For purposes of
this paragraph, a ‘general music user’ is any
person who performs musical works publicly but
is not engaged in the transmission of musical
works to the general public or to subscribers
through broadcast, cable, satellite, or other
transmission.
‘‘(ii) For purposes of this paragraph,
transmissions within a single commercial estab-
lishment or within establishments under com-
mon ownership or control are not transmissions
to the general public.