BILL ANALYSIS
SB 830
Page 1
Date of Hearing: June 15, 2010
Counsel: Gabriel Caswell
ASSEMBLY COMMITTEE ON PUBLIC SAFETY
Tom Ammiano, Chair
SB 830 (Wright) - As Amended: March 8, 2010
SUMMARY : Expands the definition of a "recording" for the
purposes of prosecution for failing to disclose the origin of a
recording when utilizing the recording for financial gain, as
specified. Specifies that "recordings" shall include memory
cards, flash drives, hard-drives, or data storage devices.
EXISTING LAW :
1)States that a person is guilty of failure to disclose the
origin of a recording or audiovisual work if, for commercial
advantage or private financial gain, he or she knowingly
advertises or offers for sale or resale, or sells or resells,
or causes the rental, sale or resale, or rents, or
manufactures, or possesses for these purposes, any recording
or audiovisual work, the cover, box, jacket, or label of which
does not clearly and conspicuously disclose the actual true
name and address of the manufacturer thereof and the name of
the actual author, artist, performer, producer, programmer, or
group thereon. This section does not require the original
manufacturer or authorized licensees of software producers to
disclose the contributing authors or programmers. [Penal Code
Section 653w(a).]
2)Defines "recording" as any tangible medium upon which
information or sounds are recorded or otherwise stored,
including any phonograph record, disc, tape, audio cassette,
wire, film, or other medium on which information or sounds are
recorded or otherwise stored, but does not include sounds
accompanying a motion picture or other audiovisual work.
[Penal Code Section 653w(a).]
3)Defines "audiovisual works" as the physical embodiment of
works that consist of related images that are intrinsically
intended to be shown using machines or devices such as
projectors, viewers, or electronic equipment, together with
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accompanying sounds, if any, regardless of the nature of the
material objects such as films or tapes on which the works are
embodied. [Penal Code Section 653w(a).]
4)States that any person who has been convicted piracy as
specified shall be punished as follows:
a) If the offense involves the advertisement, offer for
sale or resale, sale, rental, manufacture, or possession
for these purposes, of at least 100 articles of audio
recordings or 100 articles of audiovisual works, as
specified, the person shall be punished by imprisonment in
a county jail not to exceed one year, or by imprisonment in
the state prison for two, three, or five years, or by a
fine not to exceed $250,000, or by both. [Penal Code
Section 653w(b)(1).]
b) Any other violation not described immediately above,
shall, upon a first offense, be punished by imprisonment in
a county jail not to exceed one year, or by a fine not to
exceed $25,000, or by both. [Penal Code Section
653w(b)(2).] A second or subsequent conviction shall be
punished by imprisonment in a county jail not to exceed one
year or in the state prison, or by a fine not to exceed
$100,000, or by both. [Penal Code Section 653w(b)(3).]
FISCAL EFFECT : Unknown
COMMENTS :
1)Author's Statement : According to the author, "SB 830 will
clarify existing piracy laws by expanding the term 'recording'
to include all newer forms of storage media. California has a
serious problem with intellectual property piracy. Nearly
one-half billion dollars in revenue were lost by the state and
local governments due to counterfeited goods, including music
and movies. The state's existing statute to protect against
music piracy has not kept pace with latest downloading
technologies such as memory cards, flash drives, and data
storage devices. SB 830 is intended to plug this loophole in
the law. SB 830 is supported by the Recording Industry
Association of America. The bill has no opposition."
2)Estimated Economic Losses to the Greater Los Angeles Area :
According to a February 2007 study published by the Los
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Angeles Economic Development Corporation (LAEDC), criminal
piracy costs businesses in California massive economic losses.
The study concluded that global piracy disproportionately
affects Los Angeles due to the number of entertainment firms
located in southern California. LAEDC estimated that
entertainment firms in Los Angeles alone lost an estimated
$5.2 billion dollars in 2005. Those losses were from motion
picture production ($2.7 billion), sound recording ($851
million), trademarked clothing ($617 million), and software
publishing ($355 million). The study can be found at
http://www.laedc.org/reports/consulting/2007_piracy-study.pdf.
The Los Angeles Police Department's (LAPD) anti-piracy unit,
in coordination with the Recording Industry Association of
America (RIAA), is aggressively targeting music piracy. In
one instance, a private residence was searched and LAPD seized
22 CD-R burners; 2 computers; 4 DVD records; 6,812 alleged
counterfeit compact discs; and 349 counterfeit DVDs. A
14-month investigation by the Orange County District Attorney
and the RIAA resulted in a two-year sentence for the
defendant, from whom 8 CD-R burners and 17,982 completed
unauthorized discs were seized. The Los Angeles High Tech
Crimes Task Force raided a CD-pressing facility and seized
17,000 finished discs; 2 sets of molds; and 38 burners. These
examples illustrate the widespread nature of this problem.
According to RIAA, the trade group that represents the United
States recording industry, today's music pirates operate on
the Internet, in illegal CD factories, in distribution
centers, and on the street. "Piracy" generally refers to the
illegal duplication and distribution of sound recordings.
There are four specific categories of music piracy: pirate
recordings, counterfeit recordings, bootleg recordings, and
online piracy. Though it would appear that record companies
and artists are still making money, these impressions are mere
fallacies. Each sale by a pirate represents a lost legitimate
sale. Each year, the industry loses about $4.2 billion to
piracy worldwide.
3)Prior Legislation :
a) AB 64 (Cohn), Statutes of 2006, Chapter 9, made the
possession or sale of at least 100, rather than 1,000,
audio recordings punishable as an alternate
felony/misdemeanor.
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b) AB 6 (Cohn), of the 2003-04 Legislative Session, would
have made the possession or sale of at least 100, rather
than 1,000, audio recordings punishable as an alternative
felony/misdemeanor. AB 6 passed the Public Safety
Committee, but was later amended into an unrelated subject
area.
c) AB 2735 (McCarthy), of the 2003-04 Legislative Session,
would have provided that it is a crime, punishable by a
fine and/or imprisonment, for a person who is not the
copyright owner to knowingly electronically disseminate a
commercial recording or audiovisual work without disclosing
his or her true name and address, and the title of the
recording or audiovisual work. AB 2735 was never heard by
Assembly Committee on Arts, Entertainment, Sports, Tourism,
and Internet Media.
d) SB 1506 (Murray), Chapter 617, Statutes of 2004,
requires that electronic disseminations of specified
recordings and audiovisual works include an e-mail address.
e) AB 1005 (Committee on Arts), of the 2001-02 Legislative
Session, would have lowered the threshold to make the
possession or sale of at least 25, rather than 1,000, audio
recordings punishable as an alternative felony/misdemeanor.
AB 1005 failed passage in the Senate Public Safety
Committee, was granted reconsideration, and was never
reheard.
REGISTERED SUPPORT / OPPOSITION :
Support
Recording Industry Association of America
Opposition
None
Analysis Prepared by : Gabriel Caswell / PUB. S. / (916)
319-3744