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U.S. Code as of:
01/19/04
Section 4001. Assumption of contractual obligations related to transfers of rights in motion pictures
(a) Assumption of Obligations. - (1) In the case of a transfer of
copyright ownership under United States law in a motion picture (as
the terms "transfer of copyright ownership" and "motion picture"
are defined in section 101 of title 17) that is produced subject to
1 or more collective bargaining agreements negotiated under the
laws of the United States, if the transfer is executed on or after
the effective date of this chapter and is not limited to public
performance rights, the transfer instrument shall be deemed to
incorporate the assumption agreements applicable to the copyright
ownership being transferred that are required by the applicable
collective bargaining agreement, and the transferee shall be
subject to the obligations under each such assumption agreement to
make residual payments and provide related notices, accruing after
the effective date of the transfer and applicable to the
exploitation of the rights transferred, and any remedies under each
such assumption agreement for breach of those obligations, as those
obligations and remedies are set forth in the applicable collective
bargaining agreement, if -
(A) the transferee knows or has reason to know at the time of
the transfer that such collective bargaining agreement was or
will be applicable to the motion picture; or
(B) in the event of a court order confirming an arbitration
award against the transferor under the collective bargaining
agreement, the transferor does not have the financial ability to
satisfy the award within 90 days after the order is issued.
(2) For purposes of paragraph (1)(A), "knows or has reason to
know" means any of the following:
(A) Actual knowledge that the collective bargaining agreement
was or will be applicable to the motion picture.
(B)(i) Constructive knowledge that the collective bargaining
agreement was or will be applicable to the motion picture,
arising from recordation of a document pertaining to copyright in
the motion picture under section 205 of title 17 or from
publication, at a site available to the public on-line that is
operated by the relevant union, of information that identifies
the motion picture as subject to a collective bargaining
agreement with that union, if the site permits commercially
reasonable verification of the date on which the information was
available for access.
(ii) Clause (i) applies only if the transfer referred to in
subsection (a)(1) occurs -
(I) after the motion picture is completed, or
(II) before the motion picture is completed and -
(aa) within 18 months before the filing of an application
for copyright registration for the motion picture under
section 408 of title 17, or
(bb) if no such application is filed, within 18 months
before the first publication of the motion picture in the
United States.
(C) Awareness of other facts and circumstances pertaining to a
particular transfer from which it is apparent that the collective
bargaining agreement was or will be applicable to the motion
picture.
(b) Scope of Exclusion of Transfers of Public Performance Rights.
- For purposes of this section, the exclusion under subsection (a)
of transfers of copyright ownership in a motion picture that are
limited to public performance rights includes transfers to a
terrestrial broadcast station, cable system, or programmer to the
extent that the station, system, or programmer is functioning as an
exhibitor of the motion picture, either by exhibiting the motion
picture on its own network, system, service, or station, or by
initiating the transmission of an exhibition that is carried on
another network, system, service, or station. When a terrestrial
broadcast station, cable system, or programmer, or other
transferee, is also functioning otherwise as a distributor or as a
producer of the motion picture, the public performance exclusion
does not affect any obligations imposed on the transferee to the
extent that it is engaging in such functions.
(c) Exclusion for Grants of Security Interests. - Subsection (a)
shall not apply to -
(1) a transfer of copyright ownership consisting solely of a
mortgage, hypothecation, or other security interest; or
(2) a subsequent transfer of the copyright ownership secured by
the security interest described in paragraph (1) by or under the
authority of the secured party, including a transfer through the
exercise of the secured party's rights or remedies as a secured
party, or by a subsequent transferee.
The exclusion under this subsection shall not affect any rights or
remedies under law or contract.
(d) Deferral Pending Resolution of Bona Fide Dispute. - A
transferee on which obligations are imposed under subsection (a) by
virtue of paragraph (1) of that subsection may elect to defer
performance of such obligations that are subject to a bona fide
dispute between a union and a prior transferor until that dispute
is resolved, except that such deferral shall not stay accrual of
any union claims due under an applicable collective bargaining
agreement.
(e) Scope of Obligations Determined by Private Agreement. -
Nothing in this section shall expand or diminish the rights,
obligations, or remedies of any person under the collective
bargaining agreements or assumption agreements referred to in this
section.
(f) Failure To Notify. - If the transferor under subsection (a)
fails to notify the transferee under subsection (a) of applicable
collective bargaining obligations before the execution of the
transfer instrument, and subsection (a) is made applicable to the
transferee solely by virtue of subsection (a)(1)(B), the transferor
shall be liable to the transferee for any damages suffered by the
transferee as a result of the failure to notify.
(g) Determination of Disputes and Claims. - Any dispute
concerning the application of subsections (a) through (f) shall be
determined by an action in United States district court, and the
court in its discretion may allow the recovery of full costs by or
against any party and may also award a reasonable attorney's fee to
the prevailing party as part of the costs.
(h) Study. - The Comptroller General, in consultation with the
Register of Copyrights, shall conduct a study of the conditions in
the motion picture industry that gave rise to this section, and the
impact of this section on the motion picture industry. The
Comptroller General shall report the findings of the study to the
Congress within 2 years after the effective date of this chapter.
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