CA SB650

Removes the January 1, 2015 expiration date on existing law allowing licensees in ordinary course of business to take nonexclusive license rights free of perfected security interests, making this provision permanent.

Creates an exception for motion pictures produced under collective bargaining agreements: licensees of nonexclusive rights must take their licenses subject to perfected security interests that secure residual payment obligations under the applicable collective bargaining agreement.

Defines "licensee in ordinary course of business" as a person obtaining a nonexclusive license in good faith, without knowledge of rights violations, in ordinary business practices.

Applies the residuals security interest exception only to motion pictures produced pursuant to collective bargaining agreements governed by U.S. law, with terms defined according to those agreements.