Legal Question in Intellectual Property in New Jersey

Law Concerning Movie Royalties

I belong to a senior homeowners community in NJ and we want to show movies in our clubhouse at no charge to the residents. Someone said that we had to pay a royalty fee ''to some movie organization'' if we do this. Does the law require that a royalty be paid? If so, to whom? Is there any case law to cover this situation? Thank you.


Asked on 9/05/07, 10:27 am

2 Answers from Attorneys

Daniel Cevallos Cevallos & Wong, LLP

Re: Law Concerning Movie Royalties

As a former Intellectual Property lawyer, I will tell you that it is highly unlikely that you have anything to worry about. Generally, movie companies and record companies care if you are making a PROFIT on their music. For example, a bar or restaurant that plays music is getting an economic benefit from the music, so it should pay royalties. This sounds like it will be akin to showing a movie in the community center. Practically as well, I find it highly unlikely that a Motion Picture company would spend thousands of dollars in investigation and attorneys fees to take down your weekly movie showing. It's really a question of economics.

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Answered on 9/05/07, 10:30 am
Nancy Delain Delain Law Office, PLLC

Re: Law Concerning Movie Royalties

EXCELLENT question.

As a CURRENT intellectual property attorney, I can tell you that you absolutely need to fly right with this.

Copyright law (Title 17 of the US Code) protects the movies you will show, and yes, the copyright law does require that you have the permission of the copyright holder (or the agent for the copyright holder) to publicly show a movie, even if you show it for no charge. Showing a movie outside of the home (which is the license that most DVDs and VHS tapes provide their purchasers) requires a license for public showing.

Contact the copyright holder of the movie (read the small print at the end of the movie to see who that is) to find out who their licensing agent is, then contact the licensing agent.

Once you explain what you're doing, I doubt the licensing fees will be extravagant, but you DO NEED to license your showing of the movie(s) to avoid a copyright infringement lawsuit that you will lose if you do not license the movie(s) properly, and that can cost you tens or hundreds of thousands of dollars.

The movie and music industries police their copyrights very, very carefully, especially in the wake of the downloading problems they have with the Internet.

If I can help you with this, please contact me.

THE INFORMATION PRESENTED HERE IS GENERAL IN NATURE AND IS NOT INTENDED, NOR SHOULD IT BE CONSTRUED, AS LEGAL ADVICE. THIS POSTING DOES NOT CREATE ANY ATTORNEY-CLIENT RELATIONSHIP BETWEEN US. FOR SPECIFIC ADVICE ABOUT YOUR PARTICULAR SITUATION, CONSULT YOUR ATTORNEY.

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Answered on 9/05/07, 2:12 pm


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