<?xml version='1.0' encoding='utf-8'?>
<subtitle article="gcl" title_number="11" subtitle_number="14" title_name="Trade Regulation" subtitle_name="Copyright Royalties">
  <section article="gcl" article_name="Commercial Law" number="11-1401" title_number="11" title_name="Trade Regulation" subtitle_number="14" subtitle_name="Copyright Royalties">
    <level label="a">
      <text>In this subtitle the following words have the meanings indicated.</text>
    </level>
    <level label="b">
      <text>“Area” means a circular geographic region having a 25-mile radius surrounding each business location of a proprietor.</text>
    </level>
    <level label="c">
      <text>“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.</text>
    </level>
    <level label="d">
      <text>“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.</text>
    </level>
    <level label="e">
      <text>“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.</text>
    </level>
    <level label="f">
      <text>“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.</text>
    </level>
  </section>
  <section article="gcl" article_name="Commercial Law" number="11-1402" title_number="11" title_name="Trade Regulation" subtitle_number="14" subtitle_name="Copyright Royalties">
    <level label="a">
      <level label="1">
        <text>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:</text>
        <level label="i">
          <text>A schedule of the rates and terms of royalties under the contract;</text>
        </level>
        <level label="ii">
          <text>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;</text>
        </level>
        <level label="iii">
          <text>The toll free telephone number required under paragraph (2) of this subsection;</text>
        </level>
        <level label="iv">
          <text>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</text>
        </level>
        <level label="v">
          <text>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.</text>
        </level>
      </level>
      <level label="2">
        <text>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.</text>
      </level>
    </level>
    <level label="b">
      <text>Every contract between a performing rights society and a proprietor for the payment of royalties executed or renewed in this State shall:</text>
      <level label="1">
        <text>Be in writing;</text>
      </level>
      <level label="2">
        <text>Be signed by the parties to the contract; and</text>
      </level>
      <level label="3">
        <text>Include at least the following information:</text>
        <level label="i">
          <text>The proprietor’s name and business address and the name and location of each place of business to which the contract applies;</text>
        </level>
        <level label="ii">
          <text>The name and business address of the performing rights society;</text>
        </level>
        <level label="iii">
          <text>The duration of the contract; and</text>
        </level>
        <level label="iv">
          <text>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.</text>
        </level>
      </level>
    </level>
    <level label="c">
      <level label="1">
        <text>Subject to paragraph (2) of this subsection, the performing rights society shall offer to the proprietor a 1-year contract.</text>
      </level>
      <level label="2">
        <text>The performing rights society and the proprietor may agree to a contract for other than 1 year.</text>
      </level>
    </level>
  </section>
  <section article="gcl" article_name="Commercial Law" number="11-1403" title_number="11" title_name="Trade Regulation" subtitle_number="14" subtitle_name="Copyright Royalties">
    <level label="a">
      <text>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:</text>
      <level label="1">
        <text>Disclose that the agent or employee is acting on behalf of a performing rights society;</text>
      </level>
      <level label="2">
        <text>Identify the performing rights society for which the agent or the employee acts; and</text>
      </level>
      <level label="3">
        <text>Disclose the purpose of the discussion.</text>
      </level>
    </level>
    <level label="b">
      <text>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.</text>
    </level>
    <level label="c">
      <text>A performing rights society or the agent or employee of a performing rights society may not:</text>
      <level label="1">
        <text>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</text>
      </level>
      <level label="2">
        <text>Charge or collect a royalty which is unreasonable in comparison to the royalties for similar licenses in the same area.</text>
      </level>
    </level>
  </section>
  <section article="gcl" article_name="Commercial Law" number="11-1404" title_number="11" title_name="Trade Regulation" subtitle_number="14" subtitle_name="Copyright Royalties">
    <level label="a">
      <text>This subtitle applies only to performing rights societies.</text>
    </level>
    <level label="b">
      <text>This subtitle does not apply to:</text>
      <level label="1">
        <text>Copyright owners of motion pictures or other audiovisual works distributed on any medium;</text>
      </level>
      <level label="2">
        <text>A contract between a performing rights society and a broadcaster licensed by the Federal Communications Commission;</text>
      </level>
      <level label="3">
        <text>A contract between a performing rights society and a cable operator or programmer; or</text>
      </level>
      <level label="4">
        <text>Any conduct undertaken for the purpose of enforcing § 7-308 of the Criminal Law Article.</text>
      </level>
    </level>
  </section>
  <section article="gcl" article_name="Commercial Law" number="11-1405" title_number="11" title_name="Trade Regulation" subtitle_number="14" subtitle_name="Copyright Royalties">
    <level label="a">
      <text>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.</text>
    </level>
    <level label="b">
      <text>In addition to the remedies provided under subsection (a) of this section, a person affected by a violation of this subtitle may:</text>
      <level label="1">
        <text>Bring an action for an injunction against any person who violates any provision of this subtitle; and</text>
      </level>
      <level label="2">
        <text>Seek any other remedy available at law.</text>
      </level>
    </level>
    <level label="c">
      <text>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.</text>
    </level>
  </section>
</subtitle>