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Committee Conclusion
After a study of this title, the committee adheres to its former endorsement of design protection legislation and recommends that the title, as amended, be favorably considered. The principal objection made during the hearings of the Subcommittee on Patents, Trademarks, and Copyrights was a concern that retailers would be made liable by the mere sale of an article infringing a patented design. It is the view of the committee that section 208 of the bill adequately protects retailers. Under the provisions of section 208 a retailer who does not himself induce the manufacture or importation of an infringing article need not concern himself with whether or not any given item infringes a protected design. The retailer is under no duty to find out. Even if a retailer has knowledge that an article infringes a design when he buys it, this places no additional burden on him. In any event, a retailer may dispose of all stock on hand or on order at the times he receives notice of the protection of a design. Even after receiving such notice he is completely free to reorder the item as many times as he wishes if he discloses the source of the item. It is only when he refuses to disclose such source that he must refrain from reordering.
Estimated Cost of the Legislation
Title I of this legislation confers a number of new duties upon the Copyright Office of the Library of Congress. The legislation will require an increase in the personnel of the Copyright Office, and a small supporting staff for the Copyright Royalty Tribunal. Title II will require a small increase in the staff of the Patent Office to administer its provisions.
This being a complete revision of title 17, the copyright law of 1909, as amended, in the opinion of the committee it is necessary to dispense with the requirements of subsection (4) of rule XXIX of the Standing Rules of the Senate in order to expedite the business of the Senate.
