§ 66-28. Prohibition of rights to further restrict or to collect royalties on commercial use. - North Carolina Statutes

Article5.

Sale of PhonographRecords or Electrical Transcriptions.

§ 66‑28.  Prohibition ofrights to further restrict or to collect royalties on commercial use.

When any phonograph record orelectrical transcription, upon which musical performances are embodied, is soldin commerce for use within this State, all asserted common‑law rights tofurther restrict or to collect royalties on the commercial use made of suchrecorded performances by any person is hereby abrogated and expresslyrepealed.  When such article or chattel has been sold in commerce, any assertedintangible rights shall be deemed to have passed to the purchaser upon thepurchase of the chattel itself, and the right to further restrict the use madeof phonograph records or electrical transcriptions, whose sole value is intheir use, is hereby forbidden and abrogated.

Nothing in this section shallbe deemed to deny the rights granted any person by the United States copyrightlaws.  The sole intendment of this enactment is to abolish any common‑lawrights attaching to phonograph records and electrical transcriptions, whosesole value is in their use, and to forbid further restrictions of thecollection of subsequent fees and royalties on phonograph records andelectrical transcriptions by performers who were paid for the initialperformance at the recording thereof. (1939, c. 113.)