Bill Text: CA SB650 | 2013-2014 | Regular Session | Chaptered

California Senate Bill 650 (Prior Session Legislation)

Bill Title: Motion pictures.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2014-07-10 - Chaptered by Secretary of State. Chapter 118, Statutes of 2014. [SB650 Detail]

Download: California-2013-SB650-Chaptered.html

BILL NUMBER: SB 650	CHAPTERED
	BILL TEXT

	CHAPTER  118
	FILED WITH SECRETARY OF STATE  JULY 10, 2014
	APPROVED BY GOVERNOR  JULY 10, 2014
	PASSED THE SENATE  JANUARY 23, 2014
	PASSED THE ASSEMBLY  JUNE 30, 2014
	AMENDED IN SENATE  JANUARY 21, 2014
	AMENDED IN SENATE  JANUARY 6, 2014
	AMENDED IN SENATE  APRIL 15, 2013

INTRODUCED BY   Senator Lieu

                        FEBRUARY 22, 2013

   An act to add Section 9321.1 to, and to repeal and amend Section
9321 of, the Commercial Code, relating to business.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 650, Lieu. Motion pictures.
   Existing law provides, until January 1, 2015, that a licensee in
ordinary course of business takes its rights under a nonexclusive
license free of a security interest in the general intangible created
by the licensor, even if the security interest is perfected and the
licensee knows of its existence.
   This bill would remove the repeal of this provision on January 1,
2015, thus making this provision in effect indefinitely.
   This bill would also provide that a licensee of nonexclusive
rights in a motion picture that is produced pursuant to one or more
collective bargaining agreements, as specified, takes its
nonexclusive license in the motion picture subject to any perfected
security interest securing the obligation to pay residuals as set
forth in the applicable collective bargaining agreement and arising
from exploitation under the license.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 9321 of the Commercial Code, as amended by
Section 2 of Chapter 54 of the Statutes of 2013, is repealed.
  SEC. 2.  Section 9321 of the Commercial Code, as added by Section 3
of Chapter 54 of the Statutes of 2013, is amended to read:
   9321.  (a) In this section, "licensee in ordinary course of
business" means a person that becomes a licensee of a general
intangible in good faith, without knowledge that the license violates
the rights of another person in the general intangible, and in the
ordinary course from a person in the business of licensing general
intangibles of that kind. A person becomes a licensee in the ordinary
course if the license to the person comports with the usual or
customary practices in the kind of business in which the licensor is
engaged or with the licensor's own usual or customary practices.
   (b) Except as otherwise provided in Section 9321.1, a licensee in
ordinary course of business takes its rights under a nonexclusive
license free of a security interest in the general intangible created
by the licensor, even if the security interest is perfected and the
licensee knows of its existence.
   (c) A lessee in ordinary course of business takes its leasehold
interest free of a security interest in the goods created by the
lessor, even if the security interest is perfected and the lessee
knows of its existence.
  SEC. 3.  Section 9321.1 is added to the Commercial Code, to read:
   9321.1.  A licensee of nonexclusive rights in a motion picture
that is produced pursuant to one or more collective bargaining
agreements governed by the laws of the United States takes its
nonexclusive license in such motion picture subject to any perfected
security interest securing the obligation to pay residuals as set
forth in the applicable collective bargaining agreement and arising
from exploitation under such license. The terms "motion picture" and
"residuals" have the meaning ascribed to such terms under the
applicable collective bargaining agreements.