House Study Bill 515 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON LUNDGREN) A BILL FOR An Act relating to the practices of performing rights 1 societies. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5365YC (4) 90 nls/ko

H.F. _____ Section 1. Section 549.3, subsection 1, Code 2024, is 1 amended to read as follows: 2 1. A performing rights society shall not enter onto the 3 business premises of a proprietor for the purpose of discussing 4 a contract for the payment of royalties for the public 5 performance of copyrighted musical works by the proprietor , 6 unless the performing rights society identifies itself to 7 the proprietor and describes to the proprietor the purpose 8 for entering onto the proprietor’s business premises the 9 performing rights society first uses its best efforts to make 10 an appointment to meet with the proprietor at the business 11 premises during normal business hours, or if the proprietor 12 or the proprietor’s agent agree, at a location other than the 13 business premises or at the business premises when the business 14 premises are not open to the public . Upon entering onto the 15 business premises for the purpose of discussing a contract 16 for the payment of royalties for the public performance of 17 copyrighted musical works by the proprietor, the performing 18 rights society shall clearly identify itself to the proprietor 19 and describe to the proprietor the purpose for entering onto 20 the business premises. 21 Sec. 2. Section 549.5, Code 2024, is amended to read as 22 follows: 23 549.5 Improper licensing practices. 24 A performing rights society shall not do any of the 25 following: 26 1. A performing rights society shall not collect, Collect 27 or attempt to collect , from a proprietor licensed by that 28 performing rights society, a royalty payment except as provided 29 in a contract executed pursuant to the provisions of this 30 chapter . 31 2. Make a misleading or threatening verbal or written 32 communication to a proprietor in connection with a contract for 33 the payment of royalties or an attempt to collect royalties. 34 3. State or imply in a verbal or written communication with 35 -1- LSB 5365YC (4) 90 nls/ko 1/ 3

H.F. _____ a proprietor that the performing rights society is an agent 1 or representative of a public body, regulatory agency, or law 2 enforcement agency. 3 EXPLANATION 4 The inclusion of this explanation does not constitute agreement with 5 the explanation’s substance by the members of the general assembly. 6 This bill relates to the practices of performing rights 7 societies. 8 Current law prohibits a performing rights society from 9 entering onto the business premises of a proprietor for the 10 purpose of discussing a contract for the payment of royalties 11 unless the performing rights society identifies itself to the 12 proprietor and describes to the proprietor the purpose for 13 entering onto the business premises. The bill modifies this 14 prohibition by requiring that the performing rights society 15 use its best efforts to make an appointment to meet with the 16 proprietor at the business premises during normal business 17 hours, or at another location described in the bill, before the 18 performing rights society may enter onto the business premises 19 for the purpose of discussing a contract for the payment of 20 royalties for the public performance of copyrighted musical 21 works. The bill also requires the performing rights society, 22 upon entering the business premises, to clearly identify itself 23 to the proprietor and describe to the proprietor the purpose 24 for entering onto the premises. 25 The bill prohibits a performing rights society from making a 26 misleading or threatening verbal or written communication to 27 a proprietor in connection with a contract for the payment of 28 royalties or an attempt to collect royalties. The bill also 29 prohibits a performing rights society from stating or implying 30 in a communication with a proprietor that the performing 31 rights society is an agent or representative of a public body, 32 regulatory agency, or law enforcement agency. 33 Current law provides that a person who suffers a violation of 34 Code chapter 549 may bring an action to recover actual damages 35 -2- LSB 5365YC (4) 90 nls/ko 2/ 3

H.F. _____ and reasonable attorney fees. Current law also allows a person 1 to seek injunctive relief for a violation of Code chapter 549. 2 The remedies provided in Code chapter 549 are cumulative of any 3 other remedy afforded by common law, state law, or federal law. 4 -3- LSB 5365YC (4) 90 nls/ko 3/ 3