S.B. 55

1

MUSIC LICENSING PRACTICES ACT
2 1998 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Scott N. Howell
5 AN ACT RELATING TO COMMERCE AND TRADE; ESTABLISHING MUSIC LICENSING
6 PRACTICES TO INCLUDE ACCESS TO REPERTOIRE; NOTIFICATION OF RIGHTS;
7 CONTRACT REQUIREMENTS; SPECIFYING JURISDICTION OF ACTIONS AND
8 COUNTER CLAIMS; PRESCRIBING EXEMPTIONS; AND PROVIDING AN EFFECTIVE
9 DATE.
10 This act affects sections of Utah Code Annotated 1953 as follows:
11 AMENDS:
12 13-2-1, as last amended by Chapters 26 and 79, Laws of Utah 1996
13 ENACTS:
14 13-10a-1, Utah Code Annotated 1953
15 13-10a-2, Utah Code Annotated 1953
16 13-10a-3, Utah Code Annotated 1953
17 13-10a-4, Utah Code Annotated 1953
18 13-10a-5, Utah Code Annotated 1953
19 13-10a-6, Utah Code Annotated 1953
20 13-10a-7, Utah Code Annotated 1953
21 13-10a-8, Utah Code Annotated 1953
22 Be it enacted by the Legislature of the state of Utah:
23 Section 1. Section 13-2-1 is amended to read:
24 13-2-1. Consumer protection division established -- Functions.
25 There is established within the Department of Commerce the Division of Consumer
26 Protection. The division shall administer and enforce the following:
27 (1) Chapter 5, Unfair Practices Act;

1 (2) Chapter 11, Consumer Sales Practices Act;
2 (3) Chapter 10a, Music Licensing Practices Act;
3 [(3)] (4) Chapter 15, Business Opportunity Disclosure Act;
4 [(4)] (5) Chapter 16, Motor Fuel Marketing Act;
5 [(5)] (6) Chapter 20, New Motor Vehicle Warranties Act;
6 [(6)] (7) Chapter 21, Credit Services Organizations Act;
7 [(7)] (8) Chapter 22, Charitable Solicitations Act;
8 [(8)] (9) Chapter 23, Health Spa Services Protection Act;
9 [(9)] (10) Chapter 25a, Telephone and Facsimile Solicitation Act;
10 [(10)] (11) Chapter 26, Telephone Fraud Prevention Act; and
11 [(11)] (12) Chapter 28, Prize Notices Regulation Act.
12 Section 2. Section 13-10a-1 is enacted to read:
13 CHAPTER 10a. MUSIC LICENSING PRACTICES
14 13-10a-1. Title.
15 This act is known as the "Music Licensing Practices Act."
16 Section 3. Section 13-10a-2 is enacted to read:
17 13-10a-2. Definitions.
18 As used in this chapter:
19 (1) "Copyright laws of the United States" means those laws specified pursuant to Title 17,
20 United States Code.
21 (2) "Division" means the Division of Consumer Protection.
22 (3) "Performing rights society or organization" means an association, corporation, or other
23 entity that licenses S NONDRAMATIC s the public performance of S [ nondramatic ] s musical works
23a on behalf of copyright
24 owners, such as the American Society of Composers, Authors, and Publishers (ASCAP),
25 Broadcast Music, Inc. (BMI), and SESAC, Inc.
25a S (4) "COPYRIGHT OWNER" DOES NOT INCLUDE THE OWNER OF A COPYRIGHT IN A MOTION
25b PICTURE OR AUDIO-VISUAL WORK OR A PART OF A MOTION PICTURE OR AUDIO-VISUAL WORK. s
26 S [(4)] (5) s "Proprietor" means the owner of a retail establishment, restaurant, inn, bar, tavern,
27 sports or entertainment facility, not for profit organization, or any other place of business or
28 professional office located in this state in which:
29 (a) the public may assemble; and
30 (b) S [ nondramatic ] s musical works may be performed, broadcast, or otherwise transmitted
30a for
31 the enjoyment of the members of the public there assembled.

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Amended on 3_February 27, 1998

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1 (5) "Royalty" or "royalties" means the fees payable by a proprietor to a performing rights
2 society for the S NONDRAMATIC s public performance S [on nondramatic] OF s musical or other
2a similar works.
3 Section 4. Section 13-10a-3 is enacted to read:
4 13-10a-3. Access to repertoire.
5 (1) Each performing rights society or organization licensing music in the state shall:
6 (a) maintain a current electronic list of S [ its repertoire including ] s the titles and names of
6a the
7 authors and publishers of all S [its] PERFORMED s copyrighted musical works S FOR WHICH THE
7a PERFORMING RIGHTS SOCIETY COLLECTS ROYALTIES ON BEHALF OF COPYRIGHT OWNERS s ;
8 (b) update the list at least quarterly; and
9 (c) S [ electronically ] s provide S [ the list ] s to the division S THE ELECTRONIC ADDRESS
9a AT WHICH THE LIST MAY BE VIEWED s .
10 (2) Upon request, any person may review the list, in electronic form, of copyrighted works
11 through the division.
12 S [ (3) The list in electronic form existing at the time a proprietor enters into a contract with
13 a performing rights society or organization, and modified by subsequent additions or deletions to
14 the list, shall be binding between the parties for the period of the contract. ]
15 [(4)] (3) s Each performing rights society or organization shall provide an electronic S OR
15a PRINTED s copy of its
16 most current lists of copyrighted musical works and members at cost, not including the cost of
17 maintaining the database or any other overhead, to any person upon request.
18 S [(5)] (4) s Each performing rights society or organization licensing music in this state shall
19 establish and maintain a toll free telephone number which can be used to answer inquiries
20 regarding specific musical works licensed by that performing rights society and the copyright
21 owners represented by the performing rights society or organization.
22 Section 5. Section 13-10a-4 is enacted to read:
23 13-10a-4. Notification of rights.
24 No performing rights society or organization may enter into, or offer to enter into, a
25 contract for the payment of royalties by a proprietor unless at the time of the offer, or any time
26 thereafter, but no later than 72 hours prior to the execution of the contract, it provides to the
27 proprietor, in writing, a schedule of the rates and terms of royalties under the contract, including:
28 (1) any sliding scale, discounts, or reductions in fees on any basis for which the proprietor
29 may be eligible; and
30 (2) any scheduled increases or decreases in fees during the term of the contract.
31 Section 6. Section 13-10a-5 is enacted to read:
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Amend on 3_goldenrod February 27, 1998
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1 13-10a-5. Contract requirements.
2 (1) Beginning July 1, 1998, each contract for the payment of royalties between a proprietor
3 and a performing rights society or organization executed, issued, or renewed in the state shall:
4 (a) be in writing;
5 (b) be signed by both parties to the contract; and
6 (c) include at least the following information:
7 (i) the proprietor's name and business address and the name and location of each place of
8 business to which the contract applies;
9 (ii) the name and business address of the performing rights society or organization;
10 (iii) the duration of the contract; and
11 (iv) the schedule of rates and terms of royalties to be collected under the contract,
12 including any sliding scale, discount, or schedule for any increase or decrease of those rates for
13 the duration of the contract.
14 S [ (2) (a) Each contract for the payment of royalties entered into, issued, or renewed in this
15 state may not exceed one year at a time, unless both parties agree otherwise.
16 (b) When each year of a multiyear contract ends, the contract must provide that it is
17 automatically renewed on the same terms and conditions unless either party to the contract
18 provides the other party with written notice of the party's desire to terminate the contract or to
19 change the terms and conditions.
20 (c) The notice required in Subsection (2)(b) must be given at least 30 days before the
21 termination of the current term of the contract.
22 (3) Each contract shall provide that all billings, invoices, or other requests for payment
23 include an itemization showing the charge for each licensed activity and the manner in which it
24 is assessed.
25 (4) An action may be brought as provided in Section 13-10a-7. ] s
26 (5) (a) Nothing in this act shall be construed to affect any contract signed before July 1,
27 1998.
28 (b) All contracts signed before July 1, 1998, that are renewed after that date are subject to
29 the requirements of this act.
30 Section 7. Section 13-10a-6 is enacted to read:
31 13-10a-6. Jurisdiction of court action.

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1 An action may be brought S OR A COUNTERCLAIM MAY BE ASSERTED s in a court of
1a competent jurisdiction S [ to assert a counterclaim ] s
2 against a performing rights society S [or] TO s enjoin a violation of this act and to recover actual
2a damages
3 sustained as a result of that violation.
4 Section 8. Section 13-10a-7 is enacted to read:
5 13-10a-7. Provisions of chapter not exclusive.
6 The remedies, duties, and prohibitions of this chapter are not exclusive and are in addition
7 to all other causes of actions, remedies, and penalties provided by law.
8 Section 9. Section 13-10a-8 is enacted to read:
9 13-10a-8. Exemptions.
10 S (1) s This act does not apply to contracts between performing rights societies or organizations
11 and broadcasters licensed by the Federal Communications Commission, unless any such society
12 is licensed by the Federal Communications Commission.
12a S (2) THIS ACT DOES NOT APPLY TO INVESTIGATIONS BY LAW ENFORCEMENT AGENCIES
12b OR OTHER PERSONS WITH RESPECT TO SUSPECTED VIOLATIONS OF SUBSECTION 13-10-8(2)(b). s
13 Section 10. Effective date.
14 This act takes effect on July 1, 1998.




Legislative Review Note
as of 1-21-98 4:34 PM

A limited legal review of this bill raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel

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Amended on 3_February 27, 1998

Amend on 2_goldenrod February 26, 1998