This hearing addressed Senate Bill 1384, which deals with the copyright issue and seeks to alter the 5-to-4 decision of the Supreme Court of the United States in the Mills Music case. The question under consideration is whether the law should be made explicit to the effect that the class of intended beneficiaries of all royalties under the termination rights provisions consists exclusively of authors and their heirs (and the other statutory renewal claimants), and that the class of intended beneficiaries of the derivative works exceptions consists exclusively of those who create derivative works, or whether the status quo should be allowed to remain so that a substantial shield against termination is granted to those primary publishers who, under assignments from the author, themselves authorize the preparation of derivative works. Statements and testimony from the following individuals are presented: (1) Howard L. Berman, U.S. Representative, California; (2) Barbara Ringer, former Register of Copyrights; (3) Dean Kay, executive vice president and general manager, Welk Music Group; (4) Michael S. Oberman, counsel, of Kramer, Levin, Nessen, Kamin & Frankel; (5) Irwin Karp, counsel, the Authors League of America, Inc.; and (6) George David Weiss, president, Songwriters Guild of America. Two appendices contain a letter to Senator Charles McC. Mathias, Jr., from Richard Colby, attorney, November 20, 1985, and a letter to Senator Arlen Specter, from Burton L. Litwin, vice president, Belwin Mills Publishing Corp., December 10, 1985. (KM)