§ 4001. — Assumption of contractual obligations related to transfers of rights in motion pictures.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 28USC4001]
TITLE 28--JUDICIARY AND JUDICIAL PROCEDURE
PART VI--PARTICULAR PROCEEDINGS
CHAPTER 180--ASSUMPTION OF CERTAIN CONTRACTUAL OBLIGATIONS
Sec. 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.
(Added Pub. L. 105-304, title IV, Sec. 406(a), Oct. 28, 1998, 112 Stat.
2903.)
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.
