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28 USC CHAPTER 180 - ASSUMPTION OF CERTAIN CONTRACTUAL

OBLIGATIONS 01/06/03

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TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART VI - PARTICULAR PROCEEDINGS

CHAPTER 180 - ASSUMPTION OF CERTAIN CONTRACTUAL OBLIGATIONS

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CHAPTER 180 - ASSUMPTION OF CERTAIN CONTRACTUAL OBLIGATIONS

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Sec.

4001. Assumption of contractual obligations related to

transfers of rights in motion pictures.

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28 USC Sec. 4001 01/06/03

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TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART VI - PARTICULAR PROCEEDINGS

CHAPTER 180 - ASSUMPTION OF CERTAIN CONTRACTUAL OBLIGATIONS

-HEAD-

Sec. 4001. Assumption of contractual obligations related to

transfers of rights in motion pictures

-STATUTE-

(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.

-SOURCE-

(Added Pub. L. 105-304, title IV, Sec. 406(a), Oct. 28, 1998, 112

Stat. 2903.)

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REFERENCES IN TEXT

The effective date of this chapter, referred to in subsecs. (a)

and (h), is Oct. 28, 1998. See Effective Date of 1998 Amendment

note set out under section 108 of Title 17, Copyrights.

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