Page:Copyright Law Revision (Senate Report No. 94-473).djvu/161

 involved is covered by a subsisting copyright when the new law becomes effective, it is intended that any registration or recordation made under the present law would satisfy these provisions.

Phonograph Records bearing counterfeit labels

Section 111 amends Section 2318 of title 18 of the United States Code, the record label counterfeit statute, to increase the criminal penalty from the current misdemeanor status. A person shall be lined not more than $25,000 or imprisoned not more than 3 years, or both,for the first offense of knowingly and with fraudulent intent causing the transportation of phonorecords bearing forged or counterfeit labels. For any subsequent offense a person shall be fined not more than $50,000 or imprisoned not more than 7 years or both. The section further amends Section 2318 to provide for the forfeiture and destruction of counterfeit labels.

Other transitional and supplementary provisions

Section 112 makes clear that a cause of action existing on January 1, 1977, is to be governed by the law under which it arose, and section 113 is the familiar clause preserving the constitutionality of the remainder of the statute if any part of it is held unconstitutional.

The purpose of the proposed legislation, as amended, is to encourage the creation of original ornamental designs of useful articles by protecting the authors of such designs for a limited time against unauthorized copying. The title is intended to offer the creator of ornamental designs of useful articles a new form of protection directed toward the special problems arising in the design field, and is intended to avoid the defects of the existing copyright and design patent statutes by providing simple, easily secured, and effective design protection for the period of 5 years, or, if renewed, a period of 10 years, under appropriate safeguards and conditions.

Such designs are presently protected by design patents issued under title 35, United States Code, if they meet the requirements of title 35. A design patent may not be issued until a search has been made to determine that such design possesses novelty. The design patent law, while affording protection to some designs, has proved adequate to protect those whose designs have only a short life expectancy.

The present copyright statute is equally inappropriate for the protection of such designs. The term of copyright protection is too long for the majority of designs. The scope of copyright protection is too broad, while the notice and registration requirements do not fit the needs of design protection. Also, the copyright law protects only those designs which can be separately identified as “works of art.”

Because of the limitations of both the design patent and copyright laws, this legislation proposes to establish a new form of protection for “original ornamental designs of useful articles.” The subject matter of the bill is limited to designs of useful articles, the term