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B-225039 1 (1987-07-06)

handle is hein.gao/gaobadmth0001 and id is 1 raw text is: The Comptroller General of the United States Washington, D.C. 20548 Decision Propriety of Continuing Payments under Licensing Matter of: Agreement File: B-225039 Date: July 6, 1987 DIGESTS 1. Twenty-year agreement between the United States Information Agency (USIA) and a West German copyright agency was only valid for the first year of the agreement since USIA had no authority to enter into a multi-year agreement under a 1-year appropriation. The agreement violated the Antideficiency Act, 31 U.S.C. S 1341, since it created obligations in advance of appropriations. 2. Twenty-year agreement between the United States Informa- tion Agency and a West German copyright agency, though binding for only 1 year, was properly carried out for 11 years following the first year since yearly lump-sum appropriations were available for payment and USIA affirma- tively continued the agreement for those years. DECISION The United States Information Agency (USIA) requests our decision on the propriety of continuing payment under a 20-year license agreement between it and the Gesellschaft fur Musikalische Auffuhrungs-Und Mechanische Vervielfaltigungsrechte (GEMA), a German copyright collection agency. USIA also asks whether the agreement is severable if we do find it violative of united States law. For the reasons given below, we find that the agreement was binding only for 1 year. Nevertheless, payments were proper for the next 11 years since USIA gave effect to the agree- ment, and yearly lump-sum appropriations were available for payment. Should USIA choose to discontinue this arrange- ment, we find nothing in United States law that would prevent it from doing so. BACKGROUND The questions raised pertain to a longstanding controversy between USIA and GEMA. In June 1952, the United States and the Federal Republic of Germany (FRG) entered into an 3 0

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