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Trade Practices / Music Royalties Collection
Music royalties collections are governed by Wis. Stat. § 100.206, which regulates the business practices of performing rights societies. Performing rights societies are associations or corporations that license the public performance of musical works on behalf of one or more copyright owners.
Required and Prohibited Practices
Duties and requirements of performing rights societies include:
Annually file with the Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) a list of contract documents, a current list of copyright owners represented, and a list of licensed musical works.
Make available upon the request of a proprietor (i.e. retail establishments or restaurants including inns, bars, taverns, or sports/entertainment facilities) information about whether a specific musical work is licensed by the performing rights society, or, at the proprietor’s expense, any information required to be filed with DATCP.
Before entering into contracts, performing rights societies must provide a written notice to the proprietor.
All contracts between performing rights societies and proprietors must be in writing and specify each party to the contract, the contract length, and a schedule of the rates and terms of royalties to be collected.
Prohibited practices by performing rights societies include:
Entering a business to discuss a contract without proper identification.
Coercive conduct that disrupts the business premises.
Deceptive acts in negotiating a contract or in collecting royalties.
Failure to comply with the contract requirements.
Penalties
Penalties include civil remedy to recover damages, court costs, and reasonable attorney fees.