Full Text of SB3591 103rd General Assembly
SB3591sam001 103RD GENERAL ASSEMBLY | Sen. Steve Stadelman Filed: 5/21/2024 | | 10300SB3591sam001 | | LRB103 38953 SPS 73893 a |
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| 1 | | AMENDMENT TO SENATE BILL 3591
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 3591 by replacing | 3 | | everything after the enacting clause with the following: | 4 | | "Section 1. Short title. This Act may be cited as the | 5 | | Journalism Preservation Act. | 6 | | Section 5. Findings. | 7 | | (a) A free and diverse fourth estate was critical in the | 8 | | founding of our democracy and continues to be the lifeblood | 9 | | for a functioning democracy. | 10 | | (b) Every day, journalism plays an essential role in | 11 | | Illinois and in local communities, and the ability of local | 12 | | news organizations to continue to provide the public with | 13 | | critical information about their communities and enabling | 14 | | publishers to receive fair market value for their content that | 15 | | is used by others will preserve and ensure the sustainability | 16 | | of local and diverse news outlets. |
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| 1 | | (c) Communities without newspapers lose touch with | 2 | | government, business, education, and neighbors. They operate | 3 | | without journalists working to keep them informed, uncover | 4 | | truth, expose corruption, and share common goals and | 5 | | experiences. | 6 | | (d) Over the past 10 years, newspaper advertising has | 7 | | decreased 66%, and newsroom staff has declined 44%. | 8 | | (e) Ethnic media has long been a distinctive genre of | 9 | | journalism and communications, informing, engaging, and | 10 | | advocating on behalf of communities underserved by both the | 11 | | for-profit and not-for-profit general media market. It plays a | 12 | | unique role in upholding the fourth estate in our democracy by | 13 | | facilitating cross-racial and cross-ethnic communications to | 14 | | facilitate social integration, promote civic engagement, and | 15 | | address inequalities among all of the underserved communities. | 16 | | (f) Given the important role of ethnic media, it is | 17 | | critical to advance State policy that ensures their publishers | 18 | | are justly compensated for the content they create and | 19 | | distribute. An example is the historic preamble, "We Wish to | 20 | | Plead Our Own Cause," a document penned by the | 21 | | African-American journalist and abolitionist Samuel Cornish in | 22 | | 1827. It marked a significant milestone in the history of the | 23 | | Black press as it highlighted the urgent need for African | 24 | | Americans to have their own platform to voice their | 25 | | grievances, advocate for their rights, and challenge racial | 26 | | inequality. This call to action spurred the establishment of |
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| 1 | | numerous Black-owned newspapers and publications, solidifying | 2 | | the role of the Black press as a powerful tool for empowerment | 3 | | and social change, and laid the groundwork in our country for | 4 | | other ethnic media to plead their own cause. | 5 | | (g) Quality local journalism is key to sustaining civic | 6 | | society, strengthening communal ties, and providing | 7 | | information at a deeper level that national outlets cannot | 8 | | match. | 9 | | (h) When surveyed, 73% of adults in the United States say | 10 | | they have confidence in their local newspaper. | 11 | | Section 10. Definitions. As used in this Act: | 12 | | "Access" means to acquire, to crawl, or to index content. | 13 | | "Advertising revenue" means revenue generated through the | 14 | | sale of digital advertising impressions that are served to | 15 | | customers in this State through an online platform, regardless | 16 | | of whether those impressions are served on websites or | 17 | | accessed through online or mobile applications. | 18 | | "Covered platform" means an online platform that, at any | 19 | | point during a 12-month period, either: | 20 | | (1) has at least 50,000,000 United States-based | 21 | | monthly active users or subscribers on the online | 22 | | platform; or | 23 | | (2) is owned or controlled by a person that either | 24 | | has: | 25 | | (A) net annual sales in the United States or a |
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| 1 | | market capitalization greater than $550,000,000,000, | 2 | | adjusted annually for inflation on the basis of the | 3 | | Consumer Price Index published by the United States | 4 | | Bureau of Labor Statistics; or | 5 | | (B) at least 1,000,000,000 worldwide monthly | 6 | | active users on the online platform. | 7 | | "Covered platform" does not mean an organization exempt | 8 | | from federal income taxation under Section 501(c)(3) of the | 9 | | Internal Revenue Code of 1986. | 10 | | "Eligible broadcaster" means a person that: | 11 | | (1) holds or operates under a license issued by the | 12 | | Federal Communications Commission under 47 U.S.C. 301 et | 13 | | seq.; | 14 | | (2) engages professionals to create, edit, produce, | 15 | | and distribute original content concerning local, | 16 | | regional, national, or international matters of public | 17 | | interest through activities, including conducting | 18 | | interviews, observing current events, analyzing documents | 19 | | and other information, or fact checking through multiple | 20 | | firsthand or secondhand news sources; | 21 | | (3) updates its content on at least a weekly basis; | 22 | | and | 23 | | (4) uses an editorial process for error correction and | 24 | | clarification, including a transparent process for | 25 | | reporting errors or complaints to the station. | 26 | | "Eligible digital journalism provider" means an eligible |
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| 1 | | publisher or eligible broadcaster that discloses its ownership | 2 | | to the public. | 3 | | "Eligible publisher" means a person that publishes a | 4 | | qualifying publication. | 5 | | "News journalist" means a natural person who: | 6 | | (1) is employed for an average of at least 30 hours per | 7 | | week during a calendar year by an eligible digital | 8 | | journalism provider; and | 9 | | (2) is responsible for gathering, developing, | 10 | | preparing, directing the recording of, producing, | 11 | | collecting, photographing, recording, writing, editing, | 12 | | reporting, designing, presenting, distributing, or | 13 | | publishing original news or information that concerns | 14 | | local, regional, national, or international matters of | 15 | | public interest. | 16 | | "Notifying eligible digital journalism provider" means an | 17 | | entity that has provided notice to a covered platform as | 18 | | described in Section 15 that the entity is an eligible digital | 19 | | journalism provider. | 20 | | "Online platform" means a website, online or mobile | 21 | | application, digital assistant, or online service that: | 22 | | (1) accesses news articles, works of journalism, or | 23 | | other content, or portions thereof, generated, created, | 24 | | produced, or owned by an eligible digital journalism | 25 | | provider; and | 26 | | (2) aggregates, displays, provides, distributes, or |
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| 1 | | directs users to content described in paragraph (1) of | 2 | | this definition. | 3 | | "Qualifying publication" means a website, online or mobile | 4 | | application, or other digital service that: | 5 | | (1) does not primarily display, provide, distribute, | 6 | | or offer content generated, created, produced, or owned by | 7 | | an eligible broadcaster; | 8 | | (2) provides information to an audience in this State; | 9 | | (3) performs a public information function comparable | 10 | | to that traditionally served by newspapers and other | 11 | | periodical news publications; | 12 | | (4) engages professionals to create, edit, produce, | 13 | | and distribute original content concerning local, | 14 | | regional, national, or international matters of public | 15 | | interest through activities, including conducting | 16 | | interviews, observing current events, analyzing documents | 17 | | and other information, or fact checking through multiple | 18 | | firsthand or secondhand news sources; | 19 | | (5) updates its content at least 52 weeks in a | 20 | | calendar year; | 21 | | (6) has an editorial process for error correction and | 22 | | clarification, including a transparent process for | 23 | | reporting errors or complaints to the publication; and | 24 | | (7) meets any of the following criteria: | 25 | | (A) generated at least $100,000 in annual revenue | 26 | | from its editorial content in the previous calendar |
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| 1 | | year; | 2 | | (B) had an International Standard Serial Number | 3 | | assigned to an affiliated periodical before submitting | 4 | | notice to a covered platform under Section 15; or | 5 | | (B) is owned or controlled by an organization | 6 | | exempt from federal income taxation under Section | 7 | | 501(c)(3) of the Internal Revenue Code of 1986; | 8 | | (8) has at least 25% of its editorial content | 9 | | consisting of information about topics of current local, | 10 | | regional, national, or international public interest; or | 11 | | (9) is not controlled, or wholly or partially owned | 12 | | by, an entity that: | 13 | | (A) is a foreign power or an agent of a foreign | 14 | | power, as those terms are defined in 50 U.S.C. 1801; | 15 | | (2) is designated as a foreign terrorist | 16 | | organization under 8 U.S.C. 1189; | 17 | | (3) is a terrorist organization, as defined in 8 | 18 | | U.S.C. 1182; | 19 | | (4) is designated as a specially designated global | 20 | | terrorist organization under federal Executive Order | 21 | | 13224; | 22 | | (5) is an affiliate of an entity described in | 23 | | subparagraph (1), (2), (3), or (4); and | 24 | | (6) has been convicted of violating, or attempting | 25 | | to violate 18 U.S.C. 2331, 2332b, or 2339A. | 26 | | "Representative" means a labor organization designated as |
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| 1 | | the exclusive bargaining representative of news journalists or | 2 | | support staff for the purposes of collective bargaining in | 3 | | accordance with State or federal law. | 4 | | "Support staff" means a natural person who performs | 5 | | nonexecutive functions, including payroll, human resources, | 6 | | fundraising and grant support, advertising and sales, | 7 | | community events and partnerships, technical support, | 8 | | sanitation, and security. | 9 | | Section 15. Notice requirements for journalism usage fee | 10 | | payments. | 11 | | (a) On or before January 1, 2025, all eligible digital | 12 | | journalism providers that want to receive journalism usage fee | 13 | | payments under this Act shall submit notice to a covered | 14 | | platform as described in subsection (b). All eligible digital | 15 | | journalism providers that submit the notice shall receive | 16 | | journalism usage fee payments from covered platforms as | 17 | | described in Section 20 beginning no later than 30 days after | 18 | | the end of the arbitration process described in Section 25. | 19 | | Digital journalism providers may provide notice to a covered | 20 | | platform as described in subsection (b) after the initial | 21 | | arbitration has concluded; however, notice received from an | 22 | | eligible digital journalism provider after January 1, 2025, | 23 | | shall not prompt any adjustment to the percentage of | 24 | | advertising revenue that has previously been determined under | 25 | | the most recent arbitration proceeding conducted as described |
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| 1 | | in Section 25. | 2 | | (b) The notice described in subsection (a) shall: | 3 | | (1) identifies the eligible digital journalism | 4 | | provider and the authorized representative of the eligible | 5 | | digital journalism provider; | 6 | | (2) certifies, not under penalty of perjury, that the | 7 | | eligible digital journalism provider reasonably believes | 8 | | that it is either an eligible broadcaster or an eligible | 9 | | publisher; and | 10 | | (3) identifies the root uniform resource locators for | 11 | | the websites associated with the eligible digital | 12 | | journalism provider's digital content. | 13 | | (c) No later than 30 days after submitting a notice | 14 | | described in subsection (b), the eligible digital journalism | 15 | | provider shall distribute a copy of the notice to the news | 16 | | journalists and support staff that it employs and their | 17 | | representatives, if any, and publish a copy of the notice | 18 | | online in a text-searchable format. | 19 | | (d) No later than 30 days after the deadline described in | 20 | | subsection (a), or after receiving a notice as described in | 21 | | subsection (a), the covered platform shall send a reply notice | 22 | | to the authorized representative identified in subsection (b) | 23 | | to acknowledge the receipt of the notice. | 24 | | (e) A covered platform that receives as described in | 25 | | paragraph (b) may, within 30 days after receiving the notice, | 26 | | challenge: |
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| 1 | | (1) the sufficiency of the notice; and | 2 | | (2) the noticing party's qualification as an eligible | 3 | | digital journalism provider. | 4 | | Section 20. Compensation methods. A covered platform | 5 | | shall: | 6 | | (1) annually compensate digital journalism providers | 7 | | for accessing the websites of the digital journalism | 8 | | providers, with the compensation annually adjusted for | 9 | | increases in the Consumer Price Index for All Urban | 10 | | Consumers for all items published by the United States | 11 | | Department of Labor and annually distributed to the | 12 | | digital journalism providers as follows: | 13 | | (A) no less than 1% of this amount shall be paid to | 14 | | digital journalism providers that would receive less | 15 | | than $25,000 under paragraph (B), to be distributed | 16 | | annually on a pro rate basis among those digital | 17 | | journalism providers, in addition to the amount those | 18 | | digital journalism providers would receive under to | 19 | | paragraph (B); and | 20 | | (B) proportionally by the number of news | 21 | | journalists and, subject to Section 35, freelancers, | 22 | | who, in the previous calendar year, were employed by | 23 | | each qualifying publication for the purpose of | 24 | | producing content in Illinois that was accessed by a | 25 | | platform; or |
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| 1 | | (2) participate in a final arbitration process as | 2 | | described in Section 25 and fully pay the arbitration | 3 | | award, if any, within 30 days after the award. | 4 | | Section 23. Distributions. | 5 | | (a) A covered platform shall make distributions as | 6 | | described in Section 20 either by: | 7 | | (1) selecting an approved claims administrator. In | 8 | | selecting an approved claims administrator the covered | 9 | | platform shall ensure that the approved claims | 10 | | administrator is well-qualified to perform the | 11 | | distribution and has administered multiple settlements in | 12 | | the State of Illinois that comply with complex civil | 13 | | litigation class action settlement guidelines in at least | 14 | | 2 State or federal courts in Illinois. The costs of | 15 | | selecting an approved claims administrator to administer | 16 | | the distributions shall be in addition to the amount | 17 | | established in Section 20. | 18 | | (2) distributing payments to digital journalism | 19 | | providers itself, the costs of which shall be in addition | 20 | | to the amount specified in Section 20. | 21 | | (b) A final arbitration award under Section 25 to a | 22 | | jointly participating group of digital journalism providers | 23 | | shall be distributed proportionally by the number of news | 24 | | journalists and, subject to Section 35, freelancers, who, in | 25 | | the previous calendar year, were employed by each qualifying |
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| 1 | | publication for the purpose of producing content in Illinois | 2 | | that was accessed by a covered platform. | 3 | | Section 25. Arbitration. | 4 | | (a) The percentage of the covered platform's advertising | 5 | | revenue remitted to notifying eligible digital journalism | 6 | | providers shall be determined as described in this Section. | 7 | | Eligible digital journalism providers shall jointly | 8 | | participate in the final offer arbitration process described | 9 | | in this Section with each covered platform to determine a | 10 | | single percentage of advertising revenue from which the | 11 | | distributions described in Section 23 will be allotted. | 12 | | (b) Within 10 days after the receipt of the reply notice | 13 | | required by subsection (d) of Section 15, an eligible digital | 14 | | journalism provider may initiate, under Rule R-4 of the | 15 | | American Arbitration Association's Commercial Arbitration | 16 | | Rules and Mediation Procedures, a final offer arbitration | 17 | | against the covered platform for an arbitration panel to | 18 | | determine the percentage of the covered platform's advertising | 19 | | revenue remitted to the notifying eligible digital journalism | 20 | | providers. | 21 | | (c) The arbitration procedure authorized by this | 22 | | subsection shall commence 10 days after the receipt of the | 23 | | reply notice described in subsection (d) of Section 15. | 24 | | (d) The arbitration procedure authorized by this | 25 | | subsection shall be decided by a panel of 3 arbitrators under |
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| 1 | | the American Arbitration Association's Commercial Arbitration | 2 | | Rules and Mediation Procedures and the American Arbitration | 3 | | Association-International Centre for Dispute Resolution Final | 4 | | Offer Arbitration Supplementary Rules, except to the extent | 5 | | they conflict with this Section. | 6 | | (e) The covered platform and the eligible digital | 7 | | journalism providers shall each pay one-half of the cost of | 8 | | administering the arbitration proceeding, including arbitrator | 9 | | compensation, expenses, and administrative fees. | 10 | | (f) The arbitrators shall be appointed in accordance with | 11 | | the American Arbitration Association's Commercial Arbitration | 12 | | Rules and Mediation Procedures. | 13 | | (g) During a final offer arbitration proceeding under this | 14 | | Section, all of the following shall apply: | 15 | | (1) Eligible digital journalism providers and the | 16 | | covered platform may demand the production of documents | 17 | | and information that are non-privileged, reasonably | 18 | | necessary, and reasonably accessible without undue | 19 | | expense. Documents and information shall be exchanged no | 20 | | later than 30 days after the date the demand is filed. | 21 | | (2) Rules regarding the admissibility of evidence | 22 | | under the American Arbitration Association's Commercial | 23 | | Arbitration Rules and Mediation Procedures shall apply. | 24 | | (3) Eligible digital journalism providers and the | 25 | | covered platform shall each submit a final offer proposal | 26 | | for the remuneration that the eligible digital journalism |
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| 1 | | providers should receive from the covered platform for | 2 | | access to the content of the eligible digital journalism | 3 | | providers during the period under arbitration based on the | 4 | | value that access provides to the platform. The final | 5 | | offer proposals shall include backup materials sufficient | 6 | | to permit the other party to replicate the proffered | 7 | | valuation. | 8 | | (4) A final offer proposal under this Section shall | 9 | | not address whether or how the covered platform or any | 10 | | eligible digital journalism provider displays, ranks, | 11 | | distributes, suppresses, promotes, throttles, labels, | 12 | | filters, or curates the content of the eligible digital | 13 | | journalism providers or any other person. | 14 | | (h) No later than 60 days after the date proceedings begin | 15 | | as described in subsection (c), the arbitration panel shall | 16 | | determine the percentage of the covered platform's advertising | 17 | | revenue remitted to notifying eligible digital journalism | 18 | | providers from a final offer from one of the parties without | 19 | | modification. | 20 | | (1) In making a determination, the arbitration panel | 21 | | shall: | 22 | | (A) refrain from considering any value conferred | 23 | | upon any eligible digital journalism provider by the | 24 | | covered platform for distributing or aggregating its | 25 | | content as an offset to the value created by that | 26 | | eligible digital journalism provider, unless the |
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| 1 | | covered platform does not automatically access and | 2 | | extract information from an eligible digital | 3 | | journalism provider's website; | 4 | | (B) consider past incremental revenue | 5 | | contributions as a guide to the future incremental | 6 | | revenue contribution by any eligible digital | 7 | | journalism provider; | 8 | | (C) consider the pricing, terms, and conditions of | 9 | | any available, comparable commercial agreements | 10 | | between parties granting access to digital content, | 11 | | including pricing, terms, and conditions relating to | 12 | | price, duration, territory, and the value of data | 13 | | generated directly or indirectly by the content | 14 | | accounting for any material disparities in negotiating | 15 | | power between the parties to those commercial | 16 | | agreements; | 17 | | (D) if submitted with a final offer proposal, | 18 | | consider the eligible digital journalism provider's | 19 | | previous compliance with Section 40, if applicable; | 20 | | and | 21 | | (E) issue a standard binding arbitration award of | 22 | | the percentage of the covered platform's advertising | 23 | | revenue remitted to notifying eligible digital | 24 | | journalism providers. | 25 | | (2) Any party to the arbitration proceeding may elect | 26 | | to appeal the decision of the arbitration panel as |
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| 1 | | described in subsection (j) on the grounds of a procedural | 2 | | irregularity. | 3 | | (i) If the covered platform and any eligible digital | 4 | | journalism providers have given notice under Section 15 reach | 5 | | a settlement in lieu of arbitration, the settlement shall not | 6 | | waive the eligible digital journalism provider's obligations | 7 | | as described in Section 40 and shall not settle for an amount | 8 | | other than the final offer proposals submitted by the parties | 9 | | as described in paragraph (3) of subsection (g). | 10 | | (j) No fewer than 24 months after the end of an arbitration | 11 | | proceeding, any party to the proceeding may elect to restart | 12 | | the arbitration process. | 13 | | Section 30. Non-retaliation. | 14 | | (a) A covered platform shall not retaliate against an | 15 | | eligible digital journalism provider for asserting its rights | 16 | | under this Act by refusing to index content or changing the | 17 | | ranking, identification, modification, branding, or placement | 18 | | of the content of the eligible digital journalism provider on | 19 | | the covered platform. | 20 | | (b) An eligible digital journalism provider that is | 21 | | retaliated against may bring a civil action against the | 22 | | covered platform. | 23 | | (c) This Section does not prohibit a covered platform | 24 | | from, and does not impose liability on a covered platform for, | 25 | | enforcing its terms of service against an eligible journalism |
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| 1 | | provider. | 2 | | Section 35. Funding for journalists and support staff. | 3 | | (a) An eligible digital journalism provider shall spend at | 4 | | least 70% of funds received under this Act on news journalists | 5 | | and support staff employed by the eligible digital journalism | 6 | | provider, except that an eligible digital journalism provider | 7 | | with 5 or fewer employees shall spend at least 50% of funds | 8 | | received under this Act on news journalists and support staff | 9 | | employed by the eligible digital journalism provider. | 10 | | (b) No later than 30 days after the end of an arbitration | 11 | | proceeding described in Section 25 or upon reaching a | 12 | | settlement in lieu of an arbitration proceeding, the eligible | 13 | | digital journalism provider shall provide notification in | 14 | | writing of its plan to comply with subsection (a) to the news | 15 | | journalists and support staff employed by the eligible digital | 16 | | journalism provider and any representatives of those news | 17 | | journalists or support staff. | 18 | | (c) The eligible digital journalism provider's plan to | 19 | | comply with subsection (a) shall include a good faith estimate | 20 | | of the number of news journalists and support staff, if any, | 21 | | expected to be hired, details regarding proposed compensation | 22 | | adjustments, if any, and a disclosure if either hiring or | 23 | | compensation adjustments are not expected. | 24 | | Section 40. Reporting requirements. |
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| 1 | | (a) No later than one year after the end of an arbitration | 2 | | proceeding described in Section 25 or reaching a settlement in | 3 | | lieu of an arbitration proceeding, and each year thereafter, | 4 | | the eligible digital journalism provider shall compile a | 5 | | report that includes: | 6 | | (1) an attestation as to whether the eligible digital | 7 | | journalism provider has complied with subsection (a) of | 8 | | Section 35; | 9 | | (2) the text of the digital journalism provider's plan | 10 | | to comply with subsection (a) of Section 35; | 11 | | (3) the total number of journalism usage fees received | 12 | | from covered platforms; | 13 | | (4) the name of each covered platform paying the | 14 | | eligible digital journalism provider a journalism usage | 15 | | fee and a description of how the eligible digital | 16 | | journalism provider spent the journalism usage fee | 17 | | payment, including any amount of journalism usage fees | 18 | | remaining unspent; and | 19 | | (5) the total number of news journalists and support | 20 | | staff employed by the eligible digital journalism | 21 | | provider, including the number of news journalists and | 22 | | support staff hired or terminated during the previous | 23 | | year. | 24 | | (b) No later than one year after the end of an arbitration | 25 | | proceeding described in Section 25 or reaching a settlement in | 26 | | lieu of an arbitration proceeding, and each year thereafter, |
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| 1 | | the eligible digital journalism provider shall publish a copy | 2 | | of the report described in subsection (a) online in a | 3 | | text-searchable format and provide a copy to the news | 4 | | journalists and support staff employed by the eligible digital | 5 | | journalism provider, any representatives of those news | 6 | | journalists or support staff, and the covered platforms paying | 7 | | journalism usage fees to the eligible digital journalism | 8 | | provider. | 9 | | Section 45. Preservation of rights. | 10 | | (a) Nothing in this Act shall be construed as amending or | 11 | | repealing the ability of an eligible digital journalism | 12 | | provider or a covered platform to seek a preliminary or | 13 | | permanent injunction or any other existing remedy at law or | 14 | | equity. | 15 | | (b) This Act does not modify, impair, expand, or in any way | 16 | | alter rights pertaining to the federal Lanham Act (15 U.S.C. | 17 | | 1051 et seq). | 18 | | (c) This Act does not abridge or impair rights otherwise | 19 | | reserved by news journalists, support staff, or their | 20 | | representatives according to applicable law or existing | 21 | | collective bargaining agreements. | 22 | | Section 50. Severability. The provisions of this Act are | 23 | | severable. If any provision of this act or its application is | 24 | | held invalid, that invalidity shall not affect other |
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| 1 | | provisions or applications that can be given effect without | 2 | | the invalid provision or application.". |
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