Copyright term, film labeling, and film preservation legislation : hearings before the Subcommittee on Courts and Intellectual Property of the Committee on the Judiciary, House of Representatives, One Hundred Fourth Congress, first session, on H.R. 989, H.R. 1248, and H.R. 1734 ... June 1 and July 13, 1995 (1996)

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124 V. THE MARKETPLACE AND CONTRACTUAL AGREEMENTS PROMOTE OUR THRIVING SYSTEM We believe the success of our copyright system is attributable, in large part, to the fact that our copyright law establishes an economic framework to encourage the creation and dissemination of new works. First, the Act gives creators the financial incentive to devote resources and energy to producing creative works. They know they will have the opportunity to secure financial compensation for the exclusive rights granted them under the Act. Second, the Copyright Act provides the predictability and certainty that business activities will be governed by the objective four comers of business agreements. Finally, the Act allows owners and users the commercial flexibility to devise and implement their own business relationships to make works available to the public. This flexibility has allowed copyrighted works to be made available to the public through a wide range of new media and delivery systems. H.R. 1248, with its burdensome labeling and notification requirements, runs counter to the long-standing practice in the U.S. that business relations should be governed by the marketplace a system under which the copyrighted works industries have thrived. In addition to the voluntary film labels, directors, screenwnters and cinematographers routinely negotiate contractual terms regarding the work to be