Performing Rights Society; Contract for Payment of Royalties; Conditions.

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Sec. 4.

A performing rights society shall not enter into, or offer to enter into, a contract for the payment of royalties by a proprietor unless, at the time of the offer or any time thereafter but at least 72 hours before the execution of the contract, it provides all of the following to the proprietor in writing:

(a) A schedule of the rates and terms of royalties under the contract including, but not limited to, any sliding scale, discounts, or reductions in fees on any basis for which the proprietor may be eligible and any schedule increases or decreases in fees during the term of the contract.

(b) Notice that the performing rights society shall, upon request of a proprietor and before entering into a contract with that proprietor, provide a schedule of the rates and terms of royalties under contracts executed by the performing rights society and proprietors of comparable businesses in the state within the past 12 months.

(c) Notice of the provisions required under section 3 including the electronic address and toll-free telephone number.

(d) Notice of the fact that there are exemptions that may exclude that proprietor from liability under the copyright laws.

(e) Upon request of the proprietor, the opportunity to review in electronic form the most current available list of the members or affiliates represented by the performing rights society.

(f) Notice that the proprietor is entitled to the information required under this act and that failure of the performing rights society to provide that information is a violation of this act.

History: 2000, Act 430, Imd. Eff. Jan. 9, 2001


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