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Internet: Bill to Extend Copyright Term and Limit Music Licensing is Signed Into Law

April 1, 1999

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The “Sonny Bono Copyright Term Extension Act” was signed into law October 27, 1998 by President Clinton to increase the term of copyright protection and to create exemptions for music licensing. Significantly, the new legislation adds 20 years to most copyright terms. The impetus for the legislation was a change to copyright law in the European Union, and the concern that U.S. works sold in Europe would not receive the benefit of such a longer term unless the U.S. had a similar term of protection.

The legislation adds an additional 20 years to the maximum term of protection for sound recordings fixed before Feb. 15, 1972. Works created on or after Jan. 1, 1978, which previously enjoyed protection for life of the author plus 50 years, now have a copyright term of the life of the author plus 70 years. The legislation similarly adjusts the terms for anonymous and pseudonymous works, works for hire, and unpublished works, and would add 20 years to renewal terms.

The infringement exemption was amended to provide that libraries and archives, as well as nonprofit educational institutions functioning as such, may “reproduce, distribute, display, or perform in facsimile or digital form” copies of works for purposes of preservation, scholarship or research during the last 20 years of a copyright, if the works are not being commercially exploited and cannot be obtained at a reasonable price.

The legislation also expands the infringement exemption for businesses that transmit background music in their establishments through radios and televisions. The new legislation expands the “single receiving apparatus” exemption to apply to transmission of a “performance or display of a nondramatic musical work” that was “originated by a radio or television broadcast station licensed as such by the Federal Communications Commission,” or by a cable system or satellite carrier.

The new law exempts establishments, other than food service or drinking establishments, that have less than 2,000 square feet. Non-food and drink establishments with more than 2,000 square feet are exempt if they use only six speakers or four televisions with screens smaller than 55 inches. Food service and drinking establishments qualify for an exemption only if they are no larger than 3,750 square feet and use no more than six speakers or four televisions with screens continued on page 2 smaller than 55 inches. No exemption is available if a direct charge is made to see or hear the transmission. The new law also expanded the exemptions regarding public performances to include stores selling televisions or sound recordings.

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