Motion Picture Herald (Nov-Dec 1939)

December 30, 19 3 9 MOTION PICTURE HERALD 19 BICYCLING" LEADS FILM COPYRIGHT VIOLATIONS; NEW LAW IS DRAFTED Succeeds "Holdovers" as Most Current Subject of Bureau Investigations; Annual Report Shows Many Complaints Continuing the last two years' reversal of the trend from a previous predominance of the "hold-over" type of violation, the "bicycling" type of the violations of the motion picture copyright laws by exhibitors outnumbered the "hold-over" type almost two to one, according to the annual report of the Copyright Protection Bureau for 1939, as submitted to the industry Tuesday by Jack Levin, who, as director, operates the Bureau with Gabriel Hess, counsel of the Hays organization. The predominance of "bicycling" was a condition which existed prior to 1930. Thereafter from 1930 to 1936-37 the "holdover" type of violation predominated, and now again it is found that the occurrence of "bicycling" comes to the fore. Up 12 Per Cent According to Mr. Levin, director of the Bureau, violations were found in 28.08 per cent of the places investigated during the current year, as compared with 16.75 per cent of the theatres investigated during the previous year. The activities of the Bureau centered in 35 states during this current period. The report said : "This increase in the percentage of theatres investigated in which violations were found is probably attributable to the fact that investigations have been instituted as the result of more credible complaints based upon a closer surveillance of theatre operations and bookings by the distributors' branch representatives, a tightening of the license limitations in the forms of exhibition license contracts used, as well as the very considerable number of new and inexperienced exhibitors who have entered the business during recent years." The report also discusses, in addition to the report of the unauthorized exhibitions, the results of a survey of the 1,505 CCC Camps in the United States, made in 1939. That survey revealed that of the 1,327 CCC Camps on which information was secured, only 171 camps (about 13 per cent) exhibited 35 mm. pictures; 799 (about 60 per cent) exhibited 16 mm. pictures; 357 (about 27 per cent) exhibited no pictures at all. The annual report of the Bureau said that during the current year the Bureau experimentally established and put into operation a new department to handle investigations of duped, bootlegged, lost and stolen prints. This type of activity on the part of the Bureau is described as a departure from its former work which had been primarily confined to problems arising from the unauthorized exhibition of motion pictures lawfully made by and belonging to the distributors, and circulating in the regular channels of distribution pursuant to the customary exhibition contracts. Duped Prints Investigated In connection with this new activity, an investigation of the alleged illicit distribution of prints by individuals or independent companies in various parts of the United States was instituted. This investigation brought some "startling" conditions to light, "startling" in that the extent of this illicit distribution had never before been appreciated, Mr. Levin said. Various ohases of this illegal activity were investigated, CANADIAN COPYRIGHT FEE RISE DEBATED The plea for increased rates, by the Canadian Performing Rights Society, Ltd., of Toronto, before the Copyright Appeal Board of the Canadian Government, recently, has met opposition. Objections to a rise in annual license fees from eight to 14 cents, for each radio receiving set owner, in 1940, were voiced by speakers for the Canadian Broadcasting Corporation and the smaller broadcasting stations. such as laboratories where the duping was done, independent distributors who handle both 16 mm. and 35 mm. prints, leaks in legitimate film laboratories where employees had been able to smuggle out regular prints, as well as many other reputedly peculiar aspects into which the investigation ran. Although these activities of the Bureau were primarily in the nature of an exploration _ to ascertain the means and methods of handling this new type of investigation, "concrete results of a very considerable nature have already been achieved." Not only was the operator of a motion picture laboratory convicted in the Federal Court under the criminal provisions of the U. S. Copyright Law, for illegal duping of prints, upon evidence turned over by the Bureau to the Federal Bureau of Investigation of the United States Department of Justice, but the Federal Bureau was made thoroughly familiar with the nature and effect of these activities and its full cooperation was secured. In addition, certain independent dealers, trafficking for many years in illicit prints, are now out of business, and the Bureau has recovered for the major distributors a considerable number of prints of their pictures illegally in circulation. The Bureau's report cites many instances of illicit trafficking in the pictures belonging to the various distributors. There were instances discovered of duped portions of motion pictures belonging to major distributors being incorporated into independently produced subjects without the knowledge of the distributors. Court Rulings Cited The report of Gabriel Hess, counsel for the distributors in these matters, discusses a number of important decisions handed down by the Federal Courts during the past year. One of these decisions (Vitaphone Corporation v. Hutchinson Amusement Co., 28 F. Supp. 526, 42 U.S.P.Q. 431, by Federal Judge Ford, sitting in the District of Massachusetts dealt with and upheld the legality of the operations of the distributors through the Copyright Protection Bureau). In the course of his opinion concerning the Bureau, District Judge Ford said : "It is perfectly apparent that the Bureau described above was formulated for the purpose of protecting large business enterprises from illegal trespasses which involve the loss of substantial revenue. Certainly, the producers and distributors have a right to protect their property. The evidence plainly shows that the Bureau is supported by the producers for the protection of their dwn business interests and all its expenses paid by them. The producers have a right to maintain their investigating agencies in their own manner and to employ legal help to enforce the legal rights which are theirs. . . ." Changes in Present Copyright Rules Proposed in Draft Prepared by Shotwell Committee After Long Debate New copyright legislation, drafted by the so-called Shotwell Committee, will be submitted to Congress at the next session which opens January 3rd. The proposed bill has been drawn up at the request of Senator Homer Truett Bone, chairman of the Senate Patents committee which will be asked to settle disputed points. The Shotwell committee has been holding meetings for nearly a year. Majority Favor Changes Representatives of the various groups on the Shotwell Committee have agreed on most of the major questions involved. The varied interests of those on the committee made complete agreement on all points impossible. The Shotwell committee (the committee for study of copyright of the national committee of the United States of America on International Intellectual Cooperation) is comprised of representatives of all the groups interested in copyright matters. The committee includes representatives of the Motion Picture Producers and Distributors of America, Independent Exhibitors League, National Association of Broadcasters, Authors League of America, American Society of Composers, Authors and Publishers, Song Writers Protective Association, Music Publishers Protective Association, International Allied Printing Trades Association, Book Publishers Bureau, National Publishers Association, American Library Association, Joint Committee on Materials for Research of the American Council of Learned Societies and the Social Service Research Council. Separate Sales Allowed Provisions in the new copyright legislation include the agreement that separate sales may be made for each of the various commercial uses to which an author's work may be put. In the case of a story, the magazine, book, screen, television and dramatic rights may all be sold separately and actions brought on behalf of any one of the rights without joining possessors of any of the other rights. The provision in the proposed legislation covering copyright on creation recognizes an author's or composer's work as personal property for which copyright protection is automatic. No registration or filing of two copies would be required as is now the case. The new agreement would also extend the life of the copyright from the present 28 year period to a period ending 50 years after the author's death. The Shotwell committee, directed by Dr. Edith Ware, was not able to agree on the proposed revision to the Copyright Act of 1909 in time for action by Congress last Spring. Meetings were held last Spring and were resumed this Fall. Motion picture interests are not entirely satisfied with the proposed changes and feel that they may have to oppose the Shotwell committee's bill. One motion picture representative stated that he felt that the committee had gone "haywire" on some points and that all changes were in favor of the author. The period of the copyright's life is also considered unsatisfactory. It was pointed out that it would be by mere chance if all the groups with divergent interest on the committee could agree 100% on any copyright bill.