HSB 515 (LSB 5365YC (4) 90)

HOUSE FILE _____ 

BY  (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON LUNDGREN)

A BILL FOR

An Act relating to the practices of performing rights societies.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 549.3, subsection 1, Code 2024, is amended to read as follows:
   1.  A performing rights society shall not enter onto the business premises of a proprietor for the purpose of discussing a contract for the payment of royalties for the public performance of copyrighted musical works by the proprietor, unless the performing rights society identifies itself to the proprietor and describes to the proprietor the purpose for entering onto the proprietor’s business premises the performing rights society first uses its best efforts to make an appointment to meet with the proprietor at the business premises during normal business hours, or if the proprietor or the proprietor’s agent agree, at a location other than the business premises or at the business premises when the business premises are not open to the public.  Upon entering onto the business premises for the purpose of discussing a contract for the payment of royalties for the public performance of copyrighted musical works by the proprietor, the performing rights society shall clearly identify itself to the proprietor and describe to the proprietor the purpose for entering onto the business premises.
    Sec. 2.  Section 549.5, Code 2024, is amended to read as follows:
   549.5  Improper licensing practices. 
   A performing rights society shall not do any of the following:

   1.  A performing rights society shall not collect, 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 the provisions of this chapter.
   2.  Make a misleading or threatening verbal or written communication to a proprietor in connection with a contract for the payment of royalties or an attempt to collect royalties.
   3.  State or imply in a verbal or written communication with a proprietor that the performing rights society is an agent or representative of a public body, regulatory agency, or law enforcement agency.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to the practices of performing rights societies. 
   Current law prohibits a performing rights society from entering onto the business premises of a proprietor for the purpose of discussing a contract for the payment of royalties unless the performing rights society identifies itself to the proprietor and describes to the proprietor the purpose for entering onto the business premises. The bill modifies this prohibition by requiring that the performing rights society use its best efforts to make an appointment to meet with the proprietor at the business premises during normal business hours, or at another location described in the bill, before the performing rights society may enter onto the business premises for the purpose of discussing a contract for the payment of royalties for the public performance of copyrighted musical works. The bill also requires the performing rights society, upon entering the business premises, to clearly identify itself to the proprietor and describe to the proprietor the purpose for entering onto the premises.
   The bill prohibits a performing rights society from making a misleading or threatening verbal or written communication to a proprietor in connection with a contract for the payment of royalties or an attempt to collect royalties. The bill also prohibits a performing rights society from stating or implying in a communication with a proprietor that the performing rights society is an agent or representative of a public body, regulatory agency, or law enforcement agency.
   Current law provides that a person who suffers a violation of Code chapter 549 may bring an action to recover actual damages and reasonable attorney fees. Current law also allows a person to seek injunctive relief for a violation of Code chapter 549. The remedies provided in Code chapter 549 are cumulative of any other remedy afforded by common law, state law, or federal law.