(1) A contract for the payment of royalties between a proprietor and a performing rights society executed, issued, or renewed in this state shall comply with all of the following:
  (a) Be in writing.
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Terms Used In Michigan Laws 445.2105

  • Contract: A legal written agreement that becomes binding when signed.
  • in writing: shall be construed to include printing, engraving, and lithographing; except that if the written signature of a person is required by law, the signature shall be the proper handwriting of the person or, if the person is unable to write, the person's proper mark, which may be, unless otherwise expressly prohibited by law, a clear and classifiable fingerprint of the person made with ink or another substance. See Michigan Laws 8.3q
  • Performing rights society: means an association, corporation, or other entity that licenses the nondramatic public performance, broadcast, or transmittal of musical works on behalf of copyright owners including, but not limited to, the American society of composers, authors, and publishers; broadcast music, inc. See Michigan Laws 445.2102
  • Proprietor: means the owner of a retail establishment, restaurant, inn, bar, tavern, sports or entertainment facility, not-for-profit organization, or any other place of business or professional office located in this state in which the public may assemble and in which musical works are publicly and nondramatically performed, broadcast, or transmitted for the enjoyment of the members of the public assembled in that place. See Michigan Laws 445.2102
  • Royalties: means the fees payable by a proprietor to a performing rights society for the nondramatic public performance, broadcast, or transmittal of musical works. See Michigan Laws 445.2102
  • state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories belonging to the United States; and the words "United States" shall be construed to include the district and territories. See Michigan Laws 8.3o
  (b) Be signed by both parties to the contract.
  (c) Include at least the following information:
  (i) The proprietor’s name and business address and the name and location of each place of business to which the contract applies.
  (ii) The name and business address of the performing rights society.
  (iii) The duration of the contract.
  (iv) The schedule of rates and terms of royalties to be collected under the contract including, but not limited to, any sliding scale, discount, or schedule for any increase or decrease of those rates for the duration of the contract.
  (2) A contract between a performing rights society and a proprietor for the payment of royalties shall be offered for a term of 1 year but the parties may agree to a contract for a term other than 1 year. This section does not apply to a contract for a term negotiated between a performing rights society and a bona fide trade association representing a substantial percentage of proprietors of the same type.