# Commercial Law (GCL)

## Title 11. Trade Regulation

### Subtitle 14. Copyright Royalties

#### Section 11-1401

(a) In this subtitle the following words have the meanings indicated.

(b) "Area" means a circular geographic region having a 25-mile radius surrounding each business location of a proprietor.

(c) "Copyright owner" means the owner of a copyright of a nondramatic musical or similar work recognized and enforceable under the copyright laws of the United States pursuant to Title 17 of the United States Code.

(d) "Performing rights society" means an association or corporation that licenses the public performance of nondramatic musical works on behalf of copyright owners, such as the American Society of Composers, Authors and Publishers (ASCAP), Broadcast Music, Inc. (BMI), and SESAC, Inc.

(e) "Proprietor" means the owner of a retail establishment, restaurant, inn, bar, tavern, sports or entertainment facility, or any other similar place of business or professional office located in this State, in which the public may assemble and in which nondramatic musical works or similar copyrighted works may be performed, broadcast, or otherwise transmitted for the enjoyment of the members of the public there assembled.

(f) "Royalty" or "royalties" means the fees payable by a proprietor to a performing rights society for the public performance of nondramatic musical or other similar works.

#### Section 11-1402

(a)

  (1) A performing rights society may not enter into or execute a contract for the payment of royalties by a proprietor unless, no later than 72 hours prior to the execution of the contract, the performing rights society provides to the proprietor, in writing, the following:

    (i) A schedule of the rates and terms of royalties under the contract;

    (ii) A schedule of the rates and terms of royalties under agreements executed by the performing rights society and proprietors of comparable businesses in the area;

    (iii) The toll free telephone number required under paragraph (2) of this subsection;

    (iv) In the case of a performing rights society which offers discounts to proprietors in the area on any basis, the amounts and terms of those discounts; and

    (v) Notice that the proprietor is entitled to the information required by this section, and that the failure of the performing rights society to provide that information is a violation of this subtitle and may render a contract unenforceable under this subtitle.

  (2) The performing rights society shall establish a toll free telephone number which can be used to answer inquiries of a proprietor regarding specific musical works and the copyright owners represented by that performing rights society.

(b) Every contract between a performing rights society and a proprietor for the payment of royalties executed or renewed in this State shall:

  (1) Be in writing;

  (2) Be signed by the parties to the contract; and

  (3) Include at least the following information:

    (i) The proprietor's name and business address and the name and location of each place of business to which the contract applies;

    (ii) The name and business address of the performing rights society;

    (iii) The duration of the contract; and

    (iv) The schedule of rates and terms of the royalties to be collected under the contract, including any sliding scale, discount, or schedule for any increase or decrease of those rates for the duration of the contract.

(c)

  (1) Subject to paragraph (2) of this subsection, the performing rights society shall offer to the proprietor a 1-year contract.

  (2) The performing rights society and the proprietor may agree to a contract for other than 1 year.

#### Section 11-1403

(a) Before discussing a contract for the payment of royalties or the use of copyrighted works by a proprietor and before collecting or attempting to collect a royalty or fee under the contract, an agent or an employee of a performing rights society shall:

  (1) Disclose that the agent or employee is acting on behalf of a performing rights society;

  (2) Identify the performing rights society for which the agent or the employee acts; and

  (3) Disclose the purpose of the discussion.

(b) A performing rights society or the agent or employee of the performing rights society may collect a royalty or any other fee only as provided in a contract executed in accordance with the provisions of this subtitle.

(c) A performing rights society or the agent or employee of a performing rights society may not:

  (1) Use or attempt to use an unfair or deceptive act or practice in dealing or negotiating with a proprietor or the employee of a proprietor; or

  (2) Charge or collect a royalty which is unreasonable in comparison to the royalties for similar licenses in the same area.

#### Section 11-1404

(a) This subtitle applies only to performing rights societies.

(b) This subtitle does not apply to:

  (1) Copyright owners of motion pictures or other audiovisual works distributed on any medium;

  (2) A contract between a performing rights society and a broadcaster licensed by the Federal Communications Commission;

  (3) A contract between a performing rights society and a cable operator or programmer; or

  (4) Any conduct undertaken for the purpose of enforcing Sec. 7-308 of the Criminal Law Article.

#### Section 11-1405

(a) A person who violates any provision of this subtitle is liable to the person affected by the violation for actual damages caused by the violation and for reasonable attorney's fees.

(b) In addition to the remedies provided under subsection (a) of this section, a person affected by a violation of this subtitle may:

  (1) Bring an action for an injunction against any person who violates any provision of this subtitle; and

  (2) Seek any other remedy available at law.

(c) The rights, remedies, and prohibitions provided under this subtitle shall be in addition to and cumulative of any other right, remedy, or prohibition provided under common law, federal law, or any other laws of this State, and nothing contained in this subtitle may be construed to deny, abrogate, or impair any such federal or State common-law or statutory right, remedy, or prohibition.

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Md. Code Ann., Com. Law (as displayed at mgaleg.maryland.gov, October 16, 2026)