N.J. Stat. tit. 56, ch. 3A

in effect

N.J. Stat. § 56:3A-1 Short title

1. This act shall be known and may be cited as the "Music Licensing Practices Act." L.1996,c.122,s.1.

N.J. Stat. § 56:3A-2 Definitions relative to music licensing practices

2. As used in this act: "Copyright owner" means the owner of a copyright of a musical work, other than a motion picture or audiovisual work; "Performing rights society" means an association or corporation that licenses the nondramatic public performance of musical works on behalf of copyright owners, such as the American Society of Composers, Authors and Publishers (ASCAP), Broadcast Music, Inc. (BMI) and SESAC, Inc.; "Proprietor" means the owner of a retail establishment, restaurant, inn, bar, tavern or any other similar place of business or professional office located in this State in which the public may assemble and in which musical works may be performed, broadcast, or otherwise transmitted for the enjoyment of the members of the public there assembled; "Royalty" or "royalties" means the fees payable to a copyright owner or performing rights society for the nondramatic public performance of a musical work. L.1996,c.122,s.2.

N.J. Stat. § 56:3A-3 Availability of list of performed copyrighted musical works

3. a. Every performing rights society licensing music in this State shall make available in electronic form on the largest nonproprietary cooperative public computer network a current list of not less than the titles of the performed copyrighted musical works for which the performing rights society collects royalties on behalf of copyright owners and shall update the list at least weekly and shall provide the electronic address to the Secretary of State. b. Upon request, any person may view the list in electronic form through the Office of the Secretary of State. c. The list in electronic form at the time that a proprietor enters into a contract with a performing rights society, as supplemented by subsequent additions to the list, shall be binding between the parties for the period of the contract. d. Every performing rights society shall provide a copy of its current list at a reasonable cost to any person upon request. e. Every performing rights society licensing music in this State shall establish a toll free telephone number which can be used to answer inquiries regarding specific musical works licensed by that performing rights society. L.1996,c.122,s.3.

N.J. Stat. § 56:3A-4 Information required to be provided to proprietors

4. A performing rights society shall not enter into or execute a contract for the payment of royalties by a proprietor unless, no later than 72 hours prior to the execution of the contract, the performing rights society provides to the proprietor, in writing, the following: a. a schedule of the rates and terms of royalties under the contract; b. notice that the performing rights society shall, upon request by a proprietor, provide, before entering into a contract with that proprietor, a schedule of the rates and terms of royalties under agreements executed by the performing rights society and proprietors of comparable businesses in the same county; c. in the case of a performing rights society which offers discounts to proprietors in the same county on any basis, the amounts and terms of those discounts; d. notice of the provisions of section 3 of this act including the electronic address and the toll free telephone number; and e. notice that the proprietor is entitled to the information required under this act and that the failure of the performing rights society to provide that information is a violation of this act. L.1996,c.122,s.4.

N.J. Stat. § 56:3A-5 Contract between performing rights society and proprietor

5. A contract between a performing rights society and a proprietor for the payment of royalties shall be offered for a term of one year, but the parties may agree to contract for a term other than one year. The provisions of this section shall not apply to a contract for a term negotiated between a performing rights society and a bona fide national trade association representing a substantial percentage of proprietors of the same type. L.1996,c.122,s.5.

N.J. Stat. § 56:3A-6 Requirements for contracts

6. Every contract between a performing rights society and a proprietor for the payment of royalties executed or renewed in this State shall: a. be in writing; b. be signed by the parties to the contract; and c. include at least the following information: (1) the proprietor's name and business address and the name and location of each place of business to which the contract applies; (2) the name and business address of the performing rights society; (3) the duration of the contract; and (4) the schedule of rates and terms of royalties to be collected under the contract, including any sliding scale, discount or schedule for any increase or decrease of those rates for the duration of the contract. L.1996,c.122,s.6.

N.J. Stat. § 56:3A-7 Performing rights society, prohibited practices

7. No performing rights society, or any agent or employee thereof shall: a. enter onto the premises of a proprietor's business for the purpose of discussing a contract for the payment of royalties by that proprietor without first identifying himself to the proprietor or his employees and disclosing that he is acting on behalf of the performing rights society and disclosing the purpose of the discussion; b. collect or attempt to collect a royalty payment or any other fee except as provided in a contract executed pursuant to the provisions of this act on or after the effective date of this act; c. use or attempt to use any unfair or deceptive act or practice in dealing with a proprietor; d. use or attempt to use any act or practice that is substantially disruptive to a proprietor's business; or e. commence or threaten to commence legal proceedings in connection with an alleged copyright violation unless that performing rights society shall have advised the proprietor that the proprietor may comply with the federal copyright law pursuant to Title 17 of the United States Code with respect to copyrighted musical works in that performing rights society's repertory by: (1) obtaining a license from that performing rights society; or (2) discontinuing all nondramatic public performances of music in that performing rights society's repertory; or (3) obtaining authorization for nondramatic public performances directly from the copyright owners who are members of that performing rights society. L.1996,c.122,s.7.

N.J. Stat. § 56:3A-8 Obligations under federal copyright law

8. Nothing in this act shall be construed to prevent a performing rights society from informing a proprietor of the proprietor's obligations under the federal copyright law pursuant to Title 17 of the United States Code. L.1996,c.122,s.8.

N.J. Stat. § 56:3A-9 Court action by proprietor

9. a. A proprietor may bring an action in a court of competent jurisdiction or assert a counterclaim against a performing rights society to enjoin a violation of this act and to recover actual damages sustained as a result of that violation. b. The prevailing party in an action brought under this act shall be awarded reasonable attorney's fees and costs of suit. L.1996,c.122,s.9.

N.J. Stat. § 56:3A-10 Application of act

10. a. This act shall not apply to contracts between performing rights societies and broadcasters licensed by the Federal Communications Commission, except that if a performing rights society is licensed by the Federal Communications Commission, this act shall apply to contracts between that performing rights society and a proprietor as otherwise provided herein. b. This act shall not apply to any conduct by law enforcement officers or other persons engaged in the enforcement of section 1 of P.L.1991, c.125 (C.2C:21-21). L.1996,c.122,s.10.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://www.njleg.state.nj.us/legislative-activity/statutesFetched: 10/17/2026