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[Senate Report 108-427]
[From the U.S. Government Publishing Office]

108th Congress                                                   Report
                                 SENATE
 2d Session                                                     108-427
_______________________________________________________________________

                                     

                                                       Calendar No. 815

 SATELLITE HOME VIEWER EXTENSION AND RURAL CONSUMER ACCESS TO DIGITAL 
                         TELEVISION ACT OF 2004

                               __________

                              R E P O R T

                                 OF THE

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                   on

                       S. H.R. deg. 2644

DATE deg.December 7, 2004.--Ordered to be printed

       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
                      one hundred eighth congress
                             second session

                     JOHN McCAIN, Arizona, Chairman
TED STEVENS, Alaska                  ERNEST F. HOLLINGS, South Carolina
CONRAD BURNS, Montana                DANIEL K. INOUYE, Hawaii
TRENT LOTT, Mississippi              JOHN D. ROCKEFELLER IV, West 
KAY BAILEY HUTCHISON, Texas              Virginia
OLYMPIA J. SNOWE, Maine              JOHN F. KERRY, Massachusetts
SAM BROWNBACK, Kansas                JOHN B. BREAUX, Louisiana
GORDON SMITH, Oregon                 BYRON L. DORGAN, North Dakota
PETER G. FITZGERALD, Illinois        RON WYDEN, Oregon
JOHN ENSIGN, Nevada                  BARBARA BOXER, California
GEORGE ALLEN, Virginia               BILL NELSON, Florida
JOHN E. SUNUNU, New Hampshire        MARIA CANTWELL, Washington
                                     FRANK LAUTENBERG, New Jersey
           Jeanne Bumpus, Staff Director and General Counsel
                   Rob Freeman, Deputy Staff Director
     Samuel Whitehorn, Democratic Staff Director and Chief Counsel
               Margaret Spring, Democratic Senior Counsel

                                                       Calendar No. 815
108th Congress                                                   Report
                                 SENATE
 2d Session                                                     108-427

======================================================================

 
 SATELLITE HOME VIEWER EXTENSION AND RURAL CONSUMER ACCESS TO DIGITAL 
                         TELEVISION ACT OF 2004

                                _______
                                

                December 7, 2004.--Ordered to be printed

                                _______
                                

       Mr. McCain, from the Committee on Commerce, Science, and 
                Transportation, submitted the following

                              R E P O R T

                         [To accompany S. 2644]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill joint resolution deg. (S. 
H.R. deg. 2644) TITLE deg. to amend the 
Communications Act of 1934 with respect to the carriage of 
direct broadcast satellite television signals by satellite 
carriers to consumers in rural areas, and for other purposes, 
having considered the same, reports favorably thereon 
without amendment deg. with amendments deg. 
with an amendment (in the nature of a substitute) and 
recommends that the bill joint resolution deg. (as 
amended) do pass.

                          Purpose of the Bill

  The purpose of S. 2644 the ``Satellite Home Viewer Extension 
and Rural Consumer Access to Digital Television Act of 2004'' 
is to ensure that rural consumers continue to have access to 
the same quality of broadcast television signals, including 
access to high definition, digital signals, as those enjoyed by 
urban consumers.

                          Background and Need

  Direct Broadcast Satellite (DBS), which first became 
commercially available in the early 1990s, has become the most 
significant national competitor to cable with almost 22 percent 
of the multi- channel video program distribution (MVPD) market. 
In 1988, Congress enacted the Satellite Home Viewer Act (SHVA), 
which first allowed home viewers to receive broadcast 
television through the use of satellite dishes. In 1999, 
Congress expanded and extended SHVA by enacting the Satellite 
Home Viewer Improvement Act (SHVIA). The goal of SHVIA was to 
place satellite carriers on an equal footing with cable 
operators to provide local broadcast programming to consumers, 
and thus give consumers more choices in selecting a MVPD. SHVIA 
offers consumers greater access to both local and distant 
broadcast signals, by allowing DBS companies to retransmit 
local broadcast signals into the same local market and to 
import distant broadcast signals for subscribers unable to 
receive a local broadcast signal. The principal provisions of 
SHVIA that allow the lawful importation of distant network 
signals are set to expire at the end of 2004. This bill is 
necessary to maintain these provisions, including the continued 
availability of distant broadcast signals to rural consumers.

                          Legislative History

  On May 4, 2004, the Senate Commerce, Science, and 
Transportation Committee held a hearing on the reauthorization 
of the Satellite Home Viewers Improvement Act of 1999. Senators 
Ensign and McCain introduced S. 2644 on July 13, 2004. The 
Senate Commerce, Science, and Transportation Committee held an 
executive session on July 22, 2004 at which S. 2644 was 
considered. The bill was approved by voice vote and was ordered 
reported with amendments. The only amendment was an amendment 
in the nature of a substitute offered by Senators Ensign and 
McCain.

                            Estimated Costs

  In accordance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate and section 403 of the 
Congressional Budget Act of 1974, the Committee provides the 
following cost estimate, prepared by the Congressional Budget 
Office:

S. 2644--Satellite Home Viewer Extension and Rural Consumer Access to 
        Digital Television Act of 2004

    Summary: S. 2644 would amend current law relating to 
satellite retransmission of television broadcasting. CBO 
estimates that enacting only the provisions of S. 2644 would 
not affect direct spending or revenues. If the authority to 
collect and distribute copyright royalties for satellite 
retransmission were extended by subsequent legislation, CBO 
estimates that enacting the bill (together with that extension) 
would affect direct spending and revenues, but by an 
insignificant amount. Implementing the bill would not have a 
significant effect on spending subject to appropriation.
    S. 2644 contains no intergovernmental mandates as defined 
in the Unfunded Mandates Reform Act (UMRA) and would not affect 
the budgets of state, local, or tribal governments.
    S. 2644 would impose private-sector mandates as defined in 
UMRA on satellite companies and television network stations. 
CBO estimates that the aggregate cost of those mandates would 
not exceed the annual threshold for private-sector mandates 
established by UMRA ($120 million in 2004, adjusted annually 
for inflation).
    Estimated cost to the Federal Government: Under current 
law, the use of certain copyrighted material by the public is 
governed by the terms of a compulsory license. Users of 
copyrighted material do not need specific permission from 
owners to use material with a compulsory license but must pay 
royalties and abide by certain conditions when using the 
material. The federal Copyright Office collects royalties from 
users of material subject to compulsory licenses and then later 
distributes the royalties to owners of copyrighted works using 
guidelines agreed upon in private negotiations between users 
and owners of copyrighted work. Receipts of royalties from 
users of copyrighted material are recorded in the budget as 
federal revenues, and the distributions to copyright owners are 
recorded as federal spending.
    S. 2644 would extend current law to allow satellite 
companies to use copyrighted material without specific 
permission from copyright owners but would not extend the 
requirement for satellite companies to pay royalties in 
exchange for the use of such material. Under current law, the 
requirement to pay royalties will expire on December 31, 2004. 
Several provisions in S. 2644 would make changes affecting 
royalties collected and distributed for satellite 
transmissions; however, without extending the requirement for 
satellite companies to pay royalties for use of copyrighted 
material, those changes would have no effect on the budget 
after December 31, 2004.
    As a result, CBO estimates that enacting S. 2644 by itself 
would have no effect on revenues or direct spending from 
enactment through 2014. If the Congress extends royalty 
requirements for satellite retransmission of broadcast signals 
at the rate effective under current law, CBO estimates that 
enacting the bill (together with that extension) would have an 
insignificant effect on direct spending and revenues.
    Basis of estimate: Under section 4, satellite subscribers 
who live in a ``digital white area'' (i.e., persons who cannot 
receive a local digital signal from broadcasters) could choose 
to receive digital signals for digital programming. As a 
result, some subscribers who do not receive a distant signal 
under current law would receive the signal under section 4 of 
the bill. Because satellite companies currently pay royalties 
for retransmitting distant signals, enacting section 4 would 
increase both revenues from royalty collections and payments to 
copyright owners.
    Neither the satellite industry nor the Federal 
Communications Commission has information regarding the number 
of satellite subscribers who are located in digital white areas 
as defined under section 4. For this estimate, CBO assumes that 
satellite subscribers in digital white areas would generally 
overlap with satellite subscribers in analog white areas. Under 
that assumption, any increase in copyright royalties from new 
digital transmissions would be offset by a decrease in 
copyright royalties from analog transmissions as satellite 
subscribers switch from analog to digital. Thus, CBO estimates 
that enacting section 4 would not have a significant effect on 
revenues or direct spending, even if the requirement to pay 
royalties were extended.
    S. 2644 would not make a number of other changes to current 
law regarding satellite subscribers' eligibility to receive 
distant signals. CBO estimates that enacting those provisions 
would not have a significant effect on revenues or direct 
spending if the requirement to pay royalties were extended.
    Estimated impact on state, local, and tribal governments: 
S. 2644 contains no intergovernmental mandates as defined in 
UMRA and would not affect the budgets of state, local, or 
tribal governments.
    Estimated impact on the private sector: S. 2644 would 
impose private-sector mandates as defined in UMRA on satellite 
companies and television network stations. Specifically, the 
bill would impose mandates on satellite companies by requiring 
them to:
           Reallocate their retransmission of local 
        television channels to a single dish,
           Retransmit a distant digital signal only if 
        they retransmit a local analog signal in that same 
        market and notify those customers that are receiving a 
        distant digital signal when they are no longer eligible 
        to receive those distant signals,
           Notify subscribers of their privacy rights,
           Provide the television network stations with 
        a list of subscribers when those subscribers would no 
        longer be eligible to receive a distant digital signal, 
        and
           Announce the sponsor of commercial or 
        political advertising that originates with the 
        satellite company.
    The bill also would require that the television network 
stations notify a satellite company when a household would no 
longer be eligible to receive a distant digital signal.
    CBO estimates that the aggregate cost of those mandates 
would not exceed the annual threshold for private-sector 
mandates established by UMRA ($120 million in 2004, adjusted 
annually for inflation).

Carriage of local stations on a single dish

    Section 3 would require satellite companies to reallocate 
their retransmission of local television channels so that 
satellite subscribers could receive all of the local channels 
with only one satellite antenna (or satellite dish) and 
associated equipment. Local channels are those channels that 
can be received over the air with a conventional antenna and 
television set. The bill would provide an exception to this 
requirement in the case of local digital channels. It would 
allow satellite carriers to retransmit local digital channels 
to subscribers by means of a separate dish, if they transmit 
all local digital channels to the same dish.
    In many television markets, some subscribers to satellite 
service require two dishes to receive all the local channels. 
Many subscribers in those markets do not have a second dish and 
so do not receive some local channels. Satellite companies 
estimate that currently only 15 percent to 20 percent of 
subscribers nationally have two dishes, but that proportion of 
subscribers varies by market.
    The bill would require carriers to meet the retransmission 
requirements of section 3 within 18 months of enactment. Given 
that time frame, affected companies could comply with the 
mandate in one of two ways. First, satellite carriers could 
exit the market for retransmission of local channels. CBO 
expects that satellite companies would not abandon local 
service entirely because the affected companies would risk 
losing valuable customers to rival satellite companies and 
cable providers. Second, carriers could reallocate their 
satellite transmissions so that, in each market, subscribers 
received all their local channels from a single satellite. In 
some markets, receiving those local channels would require that 
the companies provide a second dish to subscribers. The largest 
cost facing affected companies would be the cost of installing 
those additional dishes. CBO estimates that providing 
additional dishes could cost the companies about $150 per 
customer, including equipment, installation, and notification 
of customers.
    Service to as many as two million subscribers could be 
subject to the reallocation requirements under the current 
configuration of local television channels on the satellites. 
Thus, under the current configuration of channels on the 
satellites, as many as two million additional dishes would have 
to be installed. Engineering studies, however, suggest that 
reallocation of local channels on the satellites could reduce 
the number of subscribers needing the second dish to 350,000 to 
400,000. Such reallocation of local channels would most likely 
occur in the smaller markets served by the carriers.
    Based on those figures, CBO estimates that satellite 
companies could spend $50 million to $60 million to comply with 
that mandate. The number of subscribers affected might be 
reduced further by technical changes available to satellite 
companies. CBO has not accounted for such technical changes in 
its estimate.

Transmission of a distant digital signal in a local market

    Section 4 would require that a satellite company retransmit 
a distant digital signal only if that company is also 
transmitting a local analog signal and not a local digital 
signal in that same market. The satellite company also would be 
required to notify those customers that are receiving a distant 
digital signal when they are no longer eligible to receive 
those distant signals. According to information from industry 
representatives, satellite companies currently retransmit a 
distant digital signal only in markets where they also 
retransmit a local analog signal. The number of those 
households that receive those signals is very small. Therefore, 
CBO estimates that the satellite companies would incur minimal 
cost to comply with those requirements.

Privacy rights of satellite subscribers

    Section 7 would extend the current privacy rights of cable 
subscribers to satellite subscribers. That section would 
require satellite companies to provide a separate, written 
notice that would inform the subscriber of the personally 
identifiable information that the satellite company collects 
and how it is to be used; the nature, frequency, and purpose of 
any disclosures; the time and place at which the subscriber may 
access the information; and the time frame during which the 
company would maintain that information. That section also 
would prohibit satellite companies from collecting and 
disclosing program selection or personally identifiable 
information on any subscriber without prior consent from the 
subscriber. In addition, satellite companies would be required 
to provide a subscriber access to all personally identifiable 
information that it collected. When that information is no 
longer necessary and a request for access is not pending, the 
company would have to destroy such information. Information 
from representatives of the satellite companies indicates that 
they currently comply with many of those requirements. CBO 
estimates that the incremental cost to provide a written notice 
of the subscribers' privacy rights could be about $20 million.

Notices to satellite companies and television network stations 
        regarding a digital signal

    Within two years after the enactment of S. 2644, the bill 
would require that the FCC determine what households would be 
considered ``unserved households'' for a distant digital 
signal. A television network station would be required to 
notify the satellite company when it files a license 
application with the FCC that would result in any household 
ceasing to be an unserved digital household. When the satellite 
company receives that notification, it would have to send a 
list identifying each subscriber that would no longer be an 
unserved digital household and, therefore, would no longer be 
allowed to receive a distant digital signal. The satellite 
company also would be required to send a comprehensive list to 
television network stations that provide a digital signal to 
the satellite company's subscribers. Based on information from 
the representatives of the satellite companies, CBO estimates 
that the cost to comply with those notification requirements 
would be minimal.

Sponsorship identification requirement

    Section 8 would extend the sponsorship identification rules 
that currently apply to cable operators of satellite companies. 
As a result, a satellite company would be required to announce 
a sponsor of any commercial or political advertising that 
originates with a satellite company. According to 
representatives of the satellite companies, they only 
retransmit programming and do not add any advertising to those 
programs. Therefore, CBO estimates that the satellite companies 
would incur no costs to comply with this requirement.
    Previous CBO estimates: On July 8, 2004, CBO transmitted a 
cost estimate for H.R. 4501, the Satellite Home Viewer 
Extension and Reauthorization Act of 2004, as ordered reported 
by the House Committee on Energy and Commerce on June 3, 2004. 
Both bills contain provisions that would make changes to 
satellite retransmission of distant and local signals, but S. 
2644 would affect a smaller number of subscribers. The cost 
estimates for the bills reflect this difference.
    On July 22, 2004, CBO transmitted a cost estimate for H.R. 
4518, the Satellite Home Viewer Extension Act of 2004, as 
ordered reported by the House Committee on the Judiciary on 
July 7, 2004. While H.R. 4518 would extend copyright royalty 
fees, S. 2644 would not. Both bills contain provisions that 
would make changes to satellite retransmission of distant and 
local signals, but S. 2644 would affect a smaller number of 
subscribers. The cost estimates for the bills reflect those 
differences.
    On July 22, 2004, CBO transmitted a cost estimate for S. 
2013, the Satellite Home Viewer Extension Act of 2004, as 
ordered reported by the Senate Committee on the Judiciary on 
June 17, 2004. While S. 2013 would extend copyright royalty 
fees, S. 2644 would not. The cost estimates for the bills 
reflect this difference.
    Both S. 2644 and H.R. 4501 would require that satellite 
companies retransmit local television channels to a single dish 
and to notify customers of their privacy rights. H.R. 4518 and 
S. 2013 would require a satellite company to submit a list to 
television network stations of their subscribers that are 
receiving signals of ``significantly viewed'' stations. The 
total direct costs of mandates contained in each of the bills 
would fall below the annual threshold for private-sector 
mandates established in UMRA.
    Estimate prepared by: Federal Costs: Melissa E. Zimmerman. 
Impact on State, Local, and Tribal Governments: Sarah Puro. 
Impact on the Private Sector: Jean Talarico.
    Estimate approved by: Robert A. Sunshine, Assistant 
Director for Budget Analysis.

                      Regulatory Impact Statement

  In accordance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following evaluation of the regulatory impact of the 
legislation, as reported:

                       NUMBER OF PERSONS COVERED

  S. 2644 would reauthorize particular elements of the 
Satellite Home Viewer Improvement Act of 1999. The number of 
persons covered by this legislation should be consistent with 
current levels of individuals affected. The legislation would 
impose new regulatory obligations on DBS carriers including a 
new prohibition on the use of two satellite dishes to 
retransmit the signals of local broadcasters into local 
markets, new restrictions on the use of subscribers' account 
information, and new obligations with respect to the 
identification of sponsors of certain advertising. The bill 
would also impose new good-faith bargaining obligations on both 
direct broadcast satellite carriers and cable operators vis-a-
vis local broadcasters.

                            ECONOMIC IMPACT

  The legislation would impose new limitations on the ability 
of DBS carriers to retransmit the signals of local broadcasters 
into a local market over more than one receiving antenna. The 
section would permit EchoStar, the only satellite provider 
currently using more than one antenna to receive all of the 
broadcast stations in particular local markets, to continue 
this practice for 18 months. At the end of this transition 
period, the new limitation may have an adverse effect on 
EchoStar and consumers may then be required to purchase a 
second satellite dish to receive local broadcast television 
retransmissions.

                                PRIVACY

  S. 2644 is not expected to have an adverse effect on the 
personal privacy of any individuals that will be impacted by 
this legislation. Section 7 of the bill would enhance personal 
privacy by setting forth requirements for the protection of 
subscribers' account information.

                               PAPERWORK

  The legislation should have minimal impact on current 
paperwork levels.

                      Section-by-Section Analysis

Section 1. Short title; table of contents

  This section provides that the act may be cited as ``The 
Satellite Home Viewer Extension and Rural Consumer Access to 
Digital Television Act of 2004,'' and sets forth the table of 
contents of the bill.

Section 2. Extension of retransmission consent exception

  This section would extend until December 31, 2009, the 
retransmission consent exception provided in section 325 of the 
Communications Act of 1934. This section allows DBS companies 
to retransmit the signals of network stations directly to 
certain subscribers without requiring the satellite carrier to 
obtain the consent of the network station. This provision is 
set to expire December 31, 2004.

Section 3. Carriage of local stations on a single dish

  This section amends section 338 of the Communications Act by 
mandating that a satellite carrier choosing to offer the local 
stations of a particular market provide such stations to 
subscribers through the use of a single reception antenna and 
associated equipment (i.e., a single satellite dish). The DBS 
carrier may carry local stations on a separate dish from the 
rest of its programming channels (CNN, ESPN, etc.), and may 
also elect to carry analog signals of the local broadcasters on 
a separate dish from digital signals of the local broadcasters. 
Satellite carriers would have 18 months from enactment to 
comply with the new requirement. This section responds to the 
concerns about discriminatory treatment made by local 
broadcasters, particularly religious and foreign-language 
broadcasters, by banning the division of local broadcast 
stations between two satellite dishes.
  A significant beneficiary of DBS providers' use of two-dishes 
has been consumers in medium- sized markets who have been able 
to receive their local stations via satellite earlier than 
would have been possible if carriage on one-dish was mandated. 
While ultimately sympathizing with those broadcasters who have 
been placed on a separate satellite dish, this bill would 
attempt to minimize the disruption to consumers in the medium-
sized markets by providing an 18 month transition period for a 
satellite carrier to deliver all broadcasters to one-dish.

Section 4. Carriage of distant digital signals; unserved digital 
        customers

  This section would ensure that consumers in rural and other 
areas who are unable to receive a local broadcaster's digital 
signal could enjoy high definition (HD) digital content carried 
by the broadcast networks. Consumers could be confident that if 
they purchased expensive high definition television sets, they 
could enjoy high profile HD events available on broadcast 
channels, such as the Super Bowl, the World Series, the Oscars, 
and other programming.
  This section would direct the FCC to develop a method for 
identifying unserved digital households within two years. The 
FCC would establish a process similar to the predictive model 
used today to determine when a household is ``unserved'' with 
respect to analog signal reception. Thus, the Commission would 
(1) determine the appropriate signal standard for determining 
eligibility for distant digital signals; (2) develop a 
predictive model for presumptively determining the ability of 
individual locations to receive digital signals in accordance 
with the signal standard; and (3) establish waiver and 
objective verification standards. The bill would also preserve 
the existing eligibility of certain households who are unable 
to receive an analog signal to receive distant digital signals 
until the FCC completes this process. However, satellite 
carriers could only import distant digital signals into markets 
where they were already offering the local analog signals.
  The bill is not intended to be punitive toward any 
broadcaster. It is primarily focused on ensuring consumers have 
access to digital HD broadcast programming. As a concession to 
broadcasters, therefore, the bill would make clear that, even 
after the Commission establishes a permanent predictive model, 
if a broadcaster demonstrates that its signal would reach a 
particular household but for circumstances that lie beyond its 
control, that household would not be eligible to receive a 
distant digital signal.
  Broadcasters have expressed significant concern that a 
satellite carrier that is permitted to provide a distant 
digital signal will never terminate that signal even after the 
broadcaster is able to reach the household. In response to this 
concern, this section would require that satellite companies 
terminate distant digital signals whenever a change in 
circumstances occurs that would result in an ``unserved 
household'' becoming a ``served household'' for that network 
affiliate. Moreover, satellite carriers would be required to 
give any potential subscribers clear, conspicuous, and prior 
notice that the distant digital service will be terminated 
within 120 days after the date the subscriber becomes 
ineligible for the service (because the household is now able 
to receive the broadcaster's over-the-air digital signal). 
Satellite carriers would also be required to provide 
broadcasters with a list of subscribers receiving distant 
digital signals whose service would be terminated as a result 
of such a change.
  Failure to provide networks with a ``complete'' list of 
subscribers receiving service under the rule provided in this 
section, and failure to cease distant digital transmissions 
within 120 days of the date when a subscriber becomes 
ineligible, would subject satellite carriers to extremely 
severe enforcement penalties for each household out of 
compliance. Each household at issue would be considered a 
separate violation, and each day would be a separate violation. 
For example, if a satellite carrier illegally provided a 
distant digital signal to fifty households in a local market, 
the company would be eligible for a fine of $550,000 dollars a 
day ($11,000  50 households).

Section 5. Bargaining obligations

  This section would extend and expand the good faith 
bargaining obligation from the current January 1, 2006 sunset 
to January 1, 2010. Currently, the good faith obligation is 
only imposed on broadcasters. This bill will impose the 
obligation on not only broadcasters, but also DBS providers and 
cable companies.

Section 6. Reduction of required tests

  This section would modify section 339 of the Communications 
Act, which designates whether broadcasters or satellite 
companies must pay for a signal strength test requested by a 
consumer in a household that disagrees with a determination by 
the Commission's predictive model that it should be able to 
receive an over-the-air analog signal. The section would 
preclude subscribers who are capable of receiving local signals 
via satellite, as well as subscribers who are predicted to 
receive a signal of an intensity better than whatever standard 
is in effect (currently Grade B intensity) from the network at 
issue, from demanding a signal strength test under section 
339(c)(4) of that Act. Such subscribers may, however, request a 
test at their own expense.

Section 7. Privacy rights of satellite subscribers

  This section would modify section 631 of the Communications 
Act, which sets forth requirements for protection of cable 
subscriber account information, by making it applicable to 
satellite operators.

Section 8. Sponsorship identification rules for DBS

  This section would direct the FCC to apply section 317 of the 
Communications Act to DBS providers. This provision of the Act 
deals with sponsorship identification, and provides that any 
matter broadcast in exchange for payment must be accompanied by 
an announcement that the matter was paid for or sponsored by 
the paying entity. Section 317 currently applies to cable 
operators and broadcasters.

Section 9. Certain vessels and aircraft

  This section would include aircraft and ``recreational 
vessels'' (i.e., certain types of boats) within the definition 
of unserved households, thereby making such entities eligible 
for distant signals.

Section 10. Carriage of local television signals by certain satellite 
        carriers

  This section would allow a satellite carrier to offer a 
broadcaster's signal, if the broadcaster was the only network 
signal in that State prior to January 1, 1995, to other viewers 
in that State as long as the community is not contained in the 
top 50 broadcast television markets. Additionally, a DBS 
provider would be able to provide to viewers in a State that 
contains a top 50 market any network and superstation signals 
that were licensed as of January 1, 1995 in the same market, if 
the market does not encompass all the counties in a State and 
if the market is not a top 50 market.

Section 11. Carriage of television stations to certain subscribers

  This section would allow a DBS carrier to retransmit any 
stations that are located in an eligible county within a State 
where a MVPD was transmitting the same stations to subscribers 
in the county on January 1, 2004. These stations would be 
considered ``significantly viewed.'' Additionally, this section 
would allow a DBS carrier to retransmit up to two stations 
located in the State in which the county is located if the MVPD 
is authorized to carry less than three. The section also 
defines which counties are eligible for these stations.

Section 12. Retransmission of signals into adjacent local market in 
        certain markets

  This section would prevent a satellite carrier from carrying 
the signal of a television station into an adjacent local 
market where such market is comprised of only a portion of a 
county, other than to unserved households in such county.

Section 13. Satellite carriage of Alaska television stations in areas 
        of Alaska outside any DMA

  This section would require all satellite carriers offering 
MVPD service in the United States to over 5 million subscribers 
to retransmit the analog and digital signals of each local 
Alaska broadcast station within 2 years and to retransmit 
stations in at least one Alaska market to other areas of the 
State that are not within a Designated Market Area (DMA). This 
section would also prohibit the importation of distant digital 
signals into Alaska pursuant to the distant signal copyright 
license once local Alaska stations are made available by the 
satellite operator to Alaska subscribers pursuant to the local-
into-local copyright license.

                        Changes in Existing Law

  In compliance with paragraph 12 of rule XXVI of the Standing 
Rules of the Senate, changes in existing law made by the bill, 
as reported, are shown as follows (existing law proposed to be 
omitted is enclosed in black brackets, new material is printed 
in italic, existing law in which no change is proposed is shown 
in roman):

                          TITLE 17. COPYRIGHTS

            CHAPTER 1. SUBJECT MATTER AND SCOPE OF COPYRIGHT

Sec. 119. Limitations on exclusive rights: Secondary transmissions of 
                    superstations and network stations for private home 
                    viewing

  (a) Secondary Transmissions by Satellite Carriers.--
          (1) Superstations and pbs satellite feed.--Subject to 
        the provisions of paragraphs (3), (4), and (6) of this 
        subsection and section 114(d), secondary transmissions 
        of a performance or display of a work embodied in a 
        primary transmission made by a superstation or by the 
        Public Broadcasting Service satellite feed shall be 
        subject to statutory licensing under this section if 
        the secondary transmission is made by a satellite 
        carrier to the public for private home viewing, with 
        regard to secondary transmissions the satellite carrier 
        is in compliance with the rules, regulations, or 
        authorizations of the Federal Communications Commission 
        governing the carriage of television broadcast station 
        signals, and the carrier makes a direct or indirect 
        charge for each retransmission service to each 
        household receiving the secondary transmission or to a 
        distributor that has contracted with the carrier for 
        direct or indirect delivery of the secondary 
        transmission to the public for private home viewing. In 
        the case of the Public Broadcasting Service satellite 
        feed, the statutory license shall be effective until 
        January 1, 2002.
          (2) Network stations.--
                  (A) In general.--Subject to the provisions of 
                subparagraphs (B) and (C) of this paragraph and 
                paragraphs (3), (4), (5), and (6) of this 
                subsection and section 114(d), secondary 
                transmissions of a performance or display of a 
                work embodied in a primary transmission made by 
                a network station shall be subject to statutory 
                licensing under this section if the secondary 
                transmission is made by a satellite carrier to 
                the public for private home viewing, with 
                regard to secondary transmissions the satellite 
                carrier is in compliance with the rules, 
                regulations, or authorizations of the Federal 
                Communications Commission governing the 
                carriage of television broadcast station 
                signals, and the carrier makes a direct or 
                indirect charge for such retransmission service 
                to each subscriber receiving the secondary 
                transmission.
                  (B) Secondary transmissions to unserved 
                households.--
                          (i) In general.--The statutory 
                        license provided for in subparagraph 
                        (A) shall be limited to secondary 
                        transmissions of the signals of no more 
                        than two network stations in a single 
                        day for each television network to 
                        persons who reside in unserved 
                        households.
                          (ii) Accurate determinations of 
                        eligibility.--
                                  (I) Accurate predictive 
                                model.--In determining 
                                presumptively whether a person 
                                resides in an unserved 
                                household under subsection 
                                [(d)(10)(A),] (d)(10), a court 
                                shall rely on the Individual 
                                Location Longley-Rice model set 
                                forth by the Federal 
                                Communications Commission in 
                                Docket No. 98-201, as that 
                                model may be amended by the 
                                Commission over time under 
                                section [339(c)(3)] 339 of the 
                                Communications Act of 1934 to 
                                increase the accuracy of that 
                                model.
                                  (II) Accurate measurements.--
                                For purposes of site 
                                measurements to determine 
                                whether a person resides in an 
                                unserved household under 
                                subsection [(d)(10)(A),] 
                                (d)(10), a court shall rely on 
                                section [339(c)(4)] 339 of the 
                                Communications Act of 1934.
                          (iii) C-band exemption to unserved 
                        households.--
                                  (I) In general.--The 
                                limitations of clause (i) shall 
                                not apply to any secondary 
                                transmissions by C-band 
                                services of network stations 
                                that a subscriber to C-band 
                                service received before any 
                                termination of such secondary 
                                transmissions before October 
                                31, 1999.
                                  (II) Definition.--In this 
                                clause the term ``C-band 
                                service'' means a service that 
                                is licensed by the Federal 
                                Communications Commission and 
                                operates in the Fixed Satellite 
                                Service under part 25 of title 
                                47 of the Code of Federal 
                                Regulations.
                  (C) Submission of subscriber lists to 
                networks.--A satellite carrier that makes 
                secondary transmissions of a primary 
                transmission made by a network station pursuant 
                to subparagraph (A) shall, 90 days after 
                commencing such secondary transmissions, submit 
                to the network that owns or is affiliated with 
                the network station a list identifying (by name 
                and street address, including county and zip 
                code) all subscribers to which the satellite 
                carrier makes secondary transmissions of that 
                primary transmission. Thereafter, on the 15th 
                of each month, the satellite carrier shall 
                submit to the network a list identifying (by 
                name and street address, including county and 
                zip code) any persons who have been added or 
                dropped as such subscribers since the last 
                submission under this subparagraph. Such 
                subscriber information submitted by a satellite 
                carrier may be used only for purposes of 
                monitoring compliance by the satellite carrier 
                with this subsection. The submission 
                requirements of this subparagraph shall apply 
                to a satellite carrier only if the network to 
                whom the submissions are to be made places on 
                file with the Register of Copyrights a document 
                identifying the name and address of the person 
                to whom such submissions are to be made. The 
                Register shall maintain for public inspection a 
                file of all such documents.
          (3) Noncompliance with reporting and payment 
        requirements.--Notwithstanding the provisions of 
        paragraphs (1) and (2), the willful or repeated 
        secondary transmission to the public by a satellite 
        carrier of a primary transmission made by a 
        superstation or a network station and embodying a 
        performance or display of a work is actionable as an 
        act of infringement under section 501, and is fully 
        subject to the remedies provided by sections 502 
        through 506 and 509, where the satellite carrier has 
        not deposited the statement of account and royalty fee 
        required by subsection (b), or has failed to make the 
        submissions to networks required by paragraph (2)(C).
          (4) Willful alterations.--Notwithstanding the 
        provisions of paragraphs (1) and (2), the secondary 
        transmission to the public by a satellite carrier of a 
        performance or display of a work embodied in a primary 
        transmission made by a superstation or a network 
        station is actionable as an act of infringement under 
        section 501, and is fully subject to the remedies 
        provided by sections 502 through 506 and sections 509 
        and 510, if the content of the particular program in 
        which the performance or display is embodied, or any 
        commercial advertising or station announcement 
        transmitted by the primary transmitter during, or 
        immediately before or after, the transmission of such 
        program, is in any way willfully altered by the 
        satellite carrier through changes, deletions, or 
        additions, or is combined with programming from any 
        other broadcast signal.
          (5) Violation of territorial restrictions on 
        statutory license for network stations.--
                  (A) Individual violations.--The willful or 
                repeated secondary transmission by a satellite 
                carrier of a primary transmission made by a 
                network station and embodying a performance or 
                display of a work to a subscriber who does not 
                reside in an unserved household is actionable 
                as an act of infringement under section 501 and 
                is fully subject to the remedies provided by 
                sections 502 through 506 and 509, except that--
                          (i) no damages shall be awarded for 
                        such act of infringement if the 
                        satellite carrier took corrective 
                        action by promptly withdrawing service 
                        from the ineligible subscriber, and
                          (ii) any statutory damages shall not 
                        exceed $5 for such subscriber for each 
                        month during which the violation 
                        occurred.
                  (B) Pattern of violations.--If a satellite 
                carrier engages in a willful or repeated 
                pattern or practice of delivering a primary 
                transmission made by a network station and 
                embodying a performance or display of a work to 
                subscribers who do not reside in unserved 
                households, then in addition to the remedies 
                set forth in subparagraph (A)--
                          (i) if the pattern or practice has 
                        been carried out on a substantially 
                        nationwide basis, the court shall order 
                        a permanent injunction barring the 
                        secondary transmission by the satellite 
                        carrier, for private home viewing, of 
                        the primary transmissions of any 
                        primary network station affiliated with 
                        the same network, and the court may 
                        order statutory damages of not to 
                        exceed $250,000 for each 6-month period 
                        during which the pattern or practice 
                        was carried out; and
                          (ii) if the pattern or practice has 
                        been carried out on a local or regional 
                        basis, the court shall order a 
                        permanent injunction barring the 
                        secondary transmission, for private 
                        home viewing in that locality or 
                        region, by the satellite carrier of the 
                        primary transmissions of any primary 
                        network station affiliated with the 
                        same network, and the court may order 
                        statutory damages of not to exceed 
                        $250,000 for each 6-month period during 
                        which the pattern or practice was 
                        carried out.
                  (C) Previous subscribers excluded.--
                Subparagraphs (A) and (B) do not apply to 
                secondary transmissions by a satellite carrier 
                to persons who subscribed to receive such 
                secondary transmissions from the satellite 
                carrier or a distributor before November 16, 
                1988.
                  (D) Burden of proof.--In any action brought 
                under this paragraph, the satellite carrier 
                shall have the burden of proving that its 
                secondary transmission of a primary 
                transmission by a network station is for 
                private home viewing to an unserved household.
                  (E) Exception.--The secondary transmission by 
                a satellite carrier of a performance or display 
                of a work embodied in a primary transmission 
                made by a network station to subscribers who do 
                not reside in unserved households shall not be 
                an act of infringement if--
                          (i) the station on May 1, 1991, was 
                        retransmitted by a satellite carrier 
                        and was not on that date owned or 
                        operated by or affiliated with a 
                        television network that offered 
                        interconnected program service on a 
                        regular basis for 15 or more hours per 
                        week to at least 25 affiliated 
                        television licensees in 10 or more 
                        States;
                          (ii) as of July 1, 1998, such station 
                        was retransmitted by a satellite 
                        carrier under the statutory license of 
                        this section; and
                          (iii) the station is not owned or 
                        operated by or affiliated with a 
                        television network that, as of January 
                        1, 1995, offered interconnected program 
                        service on a regular basis for 15 or 
                        more hours per week to at least 25 
                        affiliated television licensees in 10 
                        or more States.
          (6) Discrimination by a satellite carrier.--
        Notwithstanding the provisions of paragraph (1), the 
        willful or repeated secondary transmission to the 
        public by a satellite carrier of a performance or 
        display of a work embodied in a primary transmission 
        made by a superstation or a network station is 
        actionable as an act of infringement under section 501, 
        and is fully subject to the remedies provided by 
        sections 502 through 506 and 509, if the satellite 
        carrier unlawfully discriminates against a distributor.
          (7) Geographic limitation on secondary 
        transmissions.--The statutory license created by this 
        section shall apply only to secondary transmissions to 
        households located in the United States.
          (8) Transitional signal intensity measurement 
        procedures.--
                  (A) In general.--Subject to subparagraph (C), 
                upon a challenge by a network station regarding 
                whether a subscriber is an unserved household 
                within the predicted Grade B Contour of the 
                station, the satellite carrier shall, within 60 
                days after the receipt of the challenge--
                          (i) terminate service to that 
                        household of the signal that is the 
                        subject of the challenge, and within 30 
                        days thereafter notify the network 
                        station that made the challenge that 
                        service to that household has been 
                        terminated; or
                          (ii) conduct a measurement of the 
                        signal intensity of the subscriber's 
                        household to determine whether the 
                        household is an unserved household 
                        after giving reasonable notice to the 
                        network station of the satellite 
                        carrier's intent to conduct the 
                        measurement.
                  (B) Effect of measurement.--If the satellite 
                carrier conducts a signal intensity measurement 
                under subparagraph (A) and the measurement 
                indicates that--
                          (i) the household is not an unserved 
                        household, the satellite carrier shall, 
                        within 60 days after the measurement is 
                        conducted, terminate the service to 
                        that household of the signal that is 
                        the subject of the challenge, and 
                        within 30 days thereafter notify the 
                        network station that made the challenge 
                        that service to that household has been 
                        terminated; or
                          (ii) the household is an unserved 
                        household, the station challenging the 
                        service shall reimburse the satellite 
                        carrier for the costs of the signal 
                        measurement within 60 days after 
                        receipt of the measurement results and 
                        a statement of the costs of the 
                        measurement.
                  (C) Limitation on measurements.--
                          (i) Notwithstanding subparagraph (A), 
                        a satellite carrier may not be required 
                        to conduct signal intensity 
                        measurements during any calendar year 
                        in excess of 5 percent of the number of 
                        subscribers within the network 
                        station's local market that have 
                        subscribed to the service as of the 
                        effective date of the Satellite Home 
                        Viewer Act of 1994.
                          (ii) If a network station challenges 
                        whether a subscriber is an unserved 
                        household in excess of 5 percent of the 
                        subscribers within the network 
                        station's local market within a 
                        calendar year, subparagraph (A) shall 
                        not apply to challenges in excess of 
                        such 5 percent, but the station may 
                        conduct its own signal intensity 
                        measurement of the subscriber's 
                        household after giving reasonable 
                        notice to the satellite carrier of the 
                        network station's intent to conduct the 
                        measurement. If such measurement 
                        indicates that the household is not an 
                        unserved household, the carrier shall, 
                        within 60 days after receipt of the 
                        measurement, terminate service to the 
                        household of the signal that is the 
                        subject of the challenge and within 30 
                        days thereafter notify the network 
                        station that made the challenge that 
                        service has been terminated. The 
                        carrier shall also, within 60 days 
                        after receipt of the measurement and a 
                        statement of the costs of the 
                        measurement, reimburse the network 
                        station for the cost it incurred in 
                        conducting the measurement.
                  (D) Outside the predicted grade b contour.--
                          (i) If a network station challenges 
                        whether a subscriber is an unserved 
                        household outside the predicted Grade B 
                        Contour of the station, the station may 
                        conduct a measurement of the signal 
                        intensity of the subscriber's household 
                        to determine whether the household is 
                        an unserved household after giving 
                        reasonable notice to the satellite 
                        carrier of the network station's intent 
                        to conduct the measurement.
                          (ii) If the network station conducts 
                        a signal intensity measurement under 
                        clause (i) and the measurement 
                        indicates that--
                                  (I) the household is not an 
                                unserved household, the station 
                                shall forward the results to 
                                the satellite carrier who 
                                shall, within 60 days after 
                                receipt of the measurement, 
                                terminate the service to the 
                                household of the signal that is 
                                the subject of the challenge, 
                                and shall reimburse the station 
                                for the costs of the 
                                measurement within 60 days 
                                after receipt of the 
                                measurement results and a 
                                statement of such costs; or
                                  (II) the household is an 
                                unserved household, the station 
                                shall pay the costs of the 
                                measurement.
          (9) Loser pays for signal intensity measurement; 
        recovery of measurement costs in a civil action.--In 
        any civil action filed relating to the eligibility of 
        subscribing households as unserved households--
                  (A) a network station challenging such 
                eligibility shall, within 60 days after receipt 
                of the measurement results and a statement of 
                such costs, reimburse the satellite carrier for 
                any signal intensity measurement that is 
                conducted by that carrier in response to a 
                challenge by the network station and that 
                establishes the household is an unserved 
                household; and
                  (B) a satellite carrier shall, within 60 days 
                after receipt of the measurement results and a 
                statement of such costs, reimburse the network 
                station challenging such eligibility for any 
                signal intensity measurement that is conducted 
                by that station and that establishes the 
                household is not an unserved household.
          (10) Inability to conduct measurement.--If a network 
        station makes a reasonable attempt to conduct a site 
        measurement of its signal at a subscriber's household 
        and is denied access for the purpose of conducting the 
        measurement, and is otherwise unable to conduct a 
        measurement, the satellite carrier shall within 60 days 
        notice thereof, terminate service of the station's 
        network to that household.
          (11) Service to [recreational vehicles and commercial 
        trucks.--] recreational vehicles, vessels, aircraft, 
        and commercial trucks._
                  (A) Exemption.--
                          (i) In general.--For purposes of this 
                        subsection, and subject to clauses (ii) 
                        and (iii), the term ``unserved 
                        household'' shall include--
                                  (I) recreational vehicles as 
                                defined in regulations of the 
                                Secretary of Housing and Urban 
                                Development under section 
                                3282.8 of title 24 of the Code 
                                of Federal Regulations; [and]
                                  (II) commercial trucks that 
                                qualify as commercial motor 
                                vehicles under regulations of 
                                the Secretary of Transportation 
                                under section 383.5 of title 49 
                                of the Code of Federal 
                                [Regulations.] Regulations;
                                  (III) recreational vessels as 
                                defined in section 2101(25) of 
                                title 46, United States Code, 
                                documented in accordance with 
                                section 12101 of title 46 or 
                                State law; and
                                  (IV) aircraft registered 
                                under section 44103 of title 
                                49.
                          (ii) Limitation.--Clause (i) shall 
                        apply only to a recreational [vehicle 
                        or] vehicle, vessel, aircraft, or 
                        commercial truck if any satellite 
                        carrier that proposes to make a 
                        secondary transmission of a network 
                        station to the operator of such a 
                        recreational [vehicle or] vehicle, 
                        vessel, aircraft, or  commercial truck 
                        complies with the documentation 
                        requirements under subparagraphs (B) 
                        and (C).
                          (iii) Exclusion.--For purposes of 
                        this subparagraph, the terms 
                        ``recreational [vehicle''] vehicle, 
                        recreational vessel, aircraft'' and 
                        ``commercial truck'' shall not include 
                        any fixed dwelling, whether a mobile 
                        home or otherwise.
                  (B) Documentation requirements.--A 
                recreational [vehicle] vehicle, recreational 
                vessel, aircraft, or commercial truck shall be 
                deemed to be an unserved household beginning 10 
                days after the relevant satellite carrier 
                provides to the network that owns or is 
                affiliated with the network station that will 
                be secondarily transmitted to the recreational 
                [vehicle] vehicle, recreational vessel, 
                aircraft, or commercial truck the following 
                documents:
                          (i) Declaration.--A signed 
                        declaration by the operator of the 
                        recreational [vehicle] vehicle, 
                        recreational vessel, aircraft, or 
                        commercial truck that the satellite 
                        dish is permanently attached to the 
                        recreational [vehicle] vehicle, 
                        recreational vessel, aircraft, or 
                        commercial truck, and will not be used 
                        to receive satellite programming at any 
                        fixed dwelling.
                          (ii) Registration.--In the case of a 
                        recreational vehicle, a copy of the 
                        current State vehicle registration for 
                        the recreational vehicle.
                          (iii) Registration and license.--In 
                        the case of a commercial truck, a copy 
                        of--
                                  (I) the current State vehicle 
                                registration for the truck; and
                                  (II) a copy of a valid, 
                                current commercial driver's 
                                license, as defined in 
                                regulations of the Secretary of 
                                Transportation under section 
                                383 of title 49 of the Code of 
                                Federal Regulations, issued to 
                                the operator.
                  (C) Updated documentation requirements.--If a 
                satellite carrier wishes to continue to make 
                secondary transmissions to a recreational 
                [vehicle or] vehicle, recreational vessel, 
                aircraft, or commercial truck for more than a 
                2-year period, that carrier shall provide each 
                network, upon request, with updated 
                documentation in the form described under 
                subparagraph (B) during the 90 days before 
                expiration of that 2-year period.
          (12) Statutory license contingent on compliance with 
        FCC rules and remedial steps.--Notwithstanding any 
        other provision of this section, the willful or 
        repeated secondary transmission to the public by a 
        satellite carrier of a primary transmission embodying a 
        performance or display of a work made by a broadcast 
        station licensed by the Federal Communications 
        Commission is actionable as an act of infringement 
        under section 501, and is fully subject to the remedies 
        provided by sections 502 through 506 and 509, if, at 
        the time of such transmission, the satellite carrier is 
        not in compliance with the rules, regulations, and 
        authorizations of the Federal Communications Commission 
        concerning the carriage of television broadcast station 
        signals.
          (13) No importation of distant signals into certain 
        markets.--Notwithstanding any other provision of this 
        title, the statutory license in this subsection and 
        subsection (b) shall not apply to any secondary 
        transmission of a television station located outside of 
        the State of Alaska to any subscriber in that State to 
        whom secondary transmissions of television stations 
        located in that State are made available by the 
        satellite carrier pursuant to section 122.
  (b) Statutory License for Secondary Transmissions for Private 
Home Viewing.--
          (1) Deposits with the register of copyrights.--A 
        satellite carrier whose secondary transmissions are 
        subject to statutory licensing under subsection (a) 
        shall, on a semiannual basis, deposit with the Register 
        of Copyrights, in accordance with requirements that the 
        Register shall prescribe by regulation--
                  (A) a statement of account, covering the 
                preceding 6-month period, specifying the names 
                and locations of all superstations and network 
                stations whose signals were retransmitted, at 
                any time during that period, to subscribers for 
                private home viewing as described in 
                subsections (a)(1) and (a)(2), the total number 
                of subscribers that received such 
                retransmissions, and such other data as the 
                Register of Copyrights may from time to time 
                prescribe by regulation; and
                  (B) a royalty fee for that 6-month period, 
                computed by--
                          (i) multiplying the total number of 
                        subscribers receiving each secondary 
                        transmission of a superstation during 
                        each calendar month by 17.5 cents per 
                        subscriber in the case of superstations 
                        that as retransmitted by the satellite 
                        carrier include any program which, if 
                        delivered by any cable system in the 
                        United States, would be subject to the 
                        syndicated exclusivity rules of the 
                        Federal Communications Commission, and 
                        14 cents per subscriber in the case of 
                        superstations that are syndex-proof as 
                        defined in section 258.2 of title 37, 
                        Code of Federal Regulations;
                          (ii) multiplying the number of 
                        subscribers receiving each secondary 
                        transmission of a network station or 
                        the Public Broadcasting Service 
                        satellite feed during each calendar 
                        month by 6 cents; and
                          (iii) adding together the totals 
                        computed under clauses (i) and (ii).
          (2) Investment of fees.--The Register of Copyrights 
        shall receive all fees deposited under this section 
        and, after deducting the reasonable costs incurred by 
        the Copyright Office under this section (other than the 
        costs deducted under paragraph (4)), shall deposit the 
        balance in the Treasury of the United States, in such 
        manner as the Secretary of the Treasury directs. All 
        funds held by the Secretary of the Treasury shall be 
        invested in interest-bearing securities of the United 
        States for later distribution with interest by the 
        Librarian of Congress as provided by this title.
          (3) Persons to whom fees are distributed.--The 
        royalty fees deposited under paragraph (2) shall, in 
        accordance with the procedures provided by paragraph 
        (4), be distributed to those copyright owners whose 
        works were included in a secondary transmission for 
        private home viewing made by a satellite carrier during 
        the applicable 6-month accounting period and who file a 
        claim with the Librarian of Congress under paragraph 
        (4).
          (4) Procedures for distribution.--The royalty fees 
        deposited under paragraph (2) shall be distributed in 
        accordance with the following procedures:
                  (A) Filing of claims for fees.--During the 
                month of July in each year, each person 
                claiming to be entitled to statutory license 
                fees for secondary transmissions for private 
                home viewing shall file a claim with the 
                Librarian of Congress, in accordance with 
                requirements that the Librarian of Congress 
                shall prescribe by regulation. For purposes of 
                this paragraph, any claimants may agree among 
                themselves as to the proportionate division of 
                statutory license fees among them, may lump 
                their claims together and file them jointly or 
                as a single claim, or may designate a common 
                agent to receive payment on their behalf.
                  (B) Determination of controversy; 
                distributions.--After the first day of August 
                of each year, the Librarian of Congress shall 
                determine whether there exists a controversy 
                concerning the distribution of royalty fees. If 
                the Librarian of Congress determines that no 
                such controversy exists, the Librarian of 
                Congress shall, after deducting reasonable 
                administrative costs under this paragraph, 
                distribute such fees to the copyright owners 
                entitled to receive them, or to their 
                designated agents. If the Librarian of Congress 
                finds the existence of a controversy, the 
                Librarian of Congress shall, pursuant to 
                chapter 8 of this title, convene a copyright 
                arbitration royalty panel to determine the 
                distribution of royalty fees.
                  (C) Withholding of fees during controversy.--
                During the pendency of any proceeding under 
                this subsection, the Librarian of Congress 
                shall withhold from distribution an amount 
                sufficient to satisfy all claims with respect 
                to which a controversy exists, but shall have 
                discretion to proceed to distribute any amounts 
                that are not in controversy.
  (c) Adjustment of Royalty Fees.--
          (1) Applicability and determination of royalty 
        fees.--The rate of the royalty fee payable under 
        subsection (b)(1)(B) shall be effective unless a 
        royalty fee is established under paragraph (2) or (3) 
        of this subsection.
          (2) Fee set by voluntary negotiation.--
                  (A) Notice of initiation of proceedings.--On 
                or before July 1, 1996, the Librarian of 
                Congress shall cause notice to be published in 
                the Federal Register of the initiation of 
                voluntary negotiation proceedings for the 
                purpose of determining the royalty fee to be 
                paid by satellite carriers under subsection 
                (b)(1)(B).
                  (B) Negotiations.--Satellite carriers, 
                distributors, and copyright owners entitled to 
                royalty fees under this section shall negotiate 
                in good faith in an effort to reach a voluntary 
                agreement or voluntary agreements for the 
                payment of royalty fees. Any such satellite 
                carriers, distributors, and copyright owners 
                may at any time negotiate and agree to the 
                royalty fee, and may designate common agents to 
                negotiate, agree to, or pay such fees. If the 
                parties fail to identify common agents, the 
                Librarian of Congress shall do so, after 
                requesting recommendations from the parties to 
                the negotiation proceeding. The parties to each 
                negotiation proceeding shall bear the entire 
                cost thereof.
                  (C) Agreements binding on parties; filing of 
                agreements.--Voluntary agreements negotiated at 
                any time in accordance with this paragraph 
                shall be binding upon all satellite carriers, 
                distributors, and copyright owners that are 
                parties thereto. Copies of such agreements 
                shall be filed with the Copyright Office within 
                30 days after execution in accordance with 
                regulations that the Register of Copyrights 
                shall prescribe.
                  (D) Period agreement is in effect.--The 
                obligation to pay the royalty fees established 
                under a voluntary agreement which has been 
                filed with the Copyright Office in accordance 
                with this paragraph shall become effective on 
                the date specified in the agreement, and shall 
                remain in effect until December 31, 1999, or in 
                accordance with the terms of the agreement, 
                whichever is later.
          (3) Fee set by compulsory arbitration.--
                  (A) Notice of initiation of proceedings.--On 
                or before January 1, 1997, the Librarian of 
                Congress shall cause notice to be published in 
                the Federal Register of the initiation of 
                arbitration proceedings for the purpose of 
                determining a reasonable royalty fee to be paid 
                under subsection (b)(1)(B) by satellite 
                carriers who are not parties to a voluntary 
                agreement filed with the Copyright Office in 
                accordance with paragraph (2). Such arbitration 
                proceeding shall be conducted under chapter 8.
                  (B) Establishment of royalty fees.--In 
                determining royalty fees under this paragraph, 
                the copyright arbitration royalty panel 
                appointed under chapter 8 shall establish fees 
                for the retransmission of network stations and 
                superstations that most clearly represent the 
                fair market value of secondary transmissions. 
                In determining the fair market value, the panel 
                shall base its decision on economic, 
                competitive, and programming information 
                presented by the parties, including--
                          (i) the competitive environment in 
                        which such programming is distributed, 
                        the cost of similar signals in similar 
                        private and compulsory license 
                        marketplaces, and any special features 
                        and conditions of the retransmission 
                        marketplace;
                          (ii) the economic impact of such fees 
                        on copyright owners and satellite 
                        carriers; and
                          (iii) the impact on the continued 
                        availability of secondary transmissions 
                        to the public.
                  (C) Period during which decision of 
                arbitration panel or order of Librarian 
                effective.--The obligation to pay the royalty 
                fee established under a determination which--
                          (i) is made by a copyright 
                        arbitration royalty panel in an 
                        arbitration proceeding under this 
                        paragraph and is adopted by the 
                        Librarian of Congress under section 
                        802(f), or
                          (ii) is established by the Librarian 
                        of Congress under section 802(f), shall 
                        become effective as provided in section 
                        802(g) or July 1, 1997, whichever is 
                        later.
                  (D) Persons subject to royalty fee.--The 
                royalty fee referred to in subparagraph (C) 
                shall be binding on all satellite carriers, 
                distributors, and copyright owners, who are not 
                party to a voluntary agreement filed with the 
                Copyright Office under paragraph (2).
          (4) Reduction.--
                  (A) Superstation.--The rate of the royalty 
                fee in effect on January 1, 1998, payable in 
                each case under subsection (b)(1)(B)(i) shall 
                be reduced by 30 percent.
                  (B) Network and public broadcasting satellite 
                feed.--The rate of the royalty fee in effect on 
                January 1, 1998, payable under subsection 
                (b)(1)(B)(ii) shall be reduced by 45 percent.
          (5) Public broadcasting service as agent.--For 
        purposes of section 802, with respect to royalty fees 
        paid by satellite carriers for retransmitting the 
        Public Broadcasting Service satellite feed, the Public 
        Broadcasting Service shall be the agent for all public 
        television copyright claimants and all Public 
        Broadcasting Service member stations.
  (d) Definitions.--As used in this section--
          (1) Distributor.--The term ``distributor'' means an 
        entity which contracts to distribute secondary 
        transmissions from a satellite carrier and, either as a 
        single channel or in a package with other programming, 
        provides the secondary transmission either directly to 
        individual subscribers for private home viewing or 
        indirectly through other program distribution entities.
          (2) Network station.--The term ``network station'' 
        means--
                  (A) a television broadcast station, including 
                any translator station or terrestrial satellite 
                station that rebroadcasts all or substantially 
                all of the programming broadcast by a network 
                station, that is owned or operated by, or 
                affiliated with, one or more of the television 
                networks in the United States which offer an 
                interconnected program service on a regular 
                basis for 15 or more hours per week to at least 
                25 of its affiliated television licensees in 10 
                or more States; or
                  (B) a noncommercial educational broadcast 
                station (as defined in section 397 of the 
                Communications Act of 1934); except that the 
                term does not include the signal of the Alaska 
                Rural Communications Service, or any successor 
                entity to that service.
          (3) Primary network station.--The term ``primary 
        network station'' means a network station that 
        broadcasts or rebroadcasts the basic programming 
        service of a particular national network.
          (4) Primary transmission.--The term ``primary 
        transmission'' has the meaning given that term in 
        section 111(f) of this title.
          (5) Private home viewing.--The term ``private home 
        viewing'' means the viewing, for private use in a 
        household by means of satellite reception equipment 
        which is operated by an individual in that household 
        and which serves only such household, of a secondary 
        transmission delivered by a satellite carrier of a 
        primary transmission of a television station licensed 
        by the Federal Communications Commission.
          (6) Satellite carrier.--The term ``satellite 
        carrier'' means an entity that uses the facilities of a 
        satellite or satellite service licensed by the Federal 
        Communications Commission and operates in the Fixed-
        Satellite Service under part 25 of title 47 of the Code 
        of Federal Regulations or the Direct Broadcast 
        Satellite Service under part 100 of title 47 of the 
        Code of Federal Regulations, to establish and operate a 
        channel of communications for point-to-multipoint 
        distribution of television station signals, and that 
        owns or leases a capacity or service on a satellite in 
        order to provide such point-to-multipoint distribution, 
        except to the extent that such entity provides such 
        distribution pursuant to tariff under the 
        Communications Act of 1934, other than for private home 
        viewing.
          (7) Secondary transmission.--The term ``secondary 
        transmission'' has the meaning given that term in 
        section 111(f) of this title.
          (8) Subscriber.--The term ``subscriber'' means an 
        individual who receives a secondary transmission 
        service for private home viewing by means of a 
        secondary transmission from a satellite carrier and 
        pays a fee for the service, directly or indirectly, to 
        the satellite carrier or to a distributor.
          (9) Superstation.--The term ``superstation''--
                  (A) means a television broadcast station, 
                other than a network station, licensed by the 
                Federal Communications Commission that is 
                secondarily transmitted by a satellite carrier; 
                and
                  (B) except for purposes of computing the 
                royalty fee, includes the Public Broadcasting 
                Service satellite feed.
          [(10) Unserved household.--The term ``unserved 
        household'', with respect to a particular television 
        network, means a household that--
                  [(A) cannot receive, through the use of a 
                conventional, stationary, outdoor rooftop 
                receiving antenna, an over-the-air signal of a 
                primary network station affiliated with that 
                network of Grade B intensity as defined by the 
                Federal Communications Commission under section 
                73.683(a) of title 47 of the Code of Federal 
                Regulations, as in effect on January 1, 1999;
                  [(B) is subject to a waiver granted under 
                regulations established under section 339(c)(2) 
                of the Communications Act of 1934;
                  [(C) is a subscriber to whom subsection (e) 
                applies;
                  [(D) is a subscriber to whom subsection 
                (a)(11) applies; or
                  [(E) is a subscriber to whom the exemption 
                under subsection (a)(2)(B)(iii) applies.]
          (10) Unserved household.--
                  (A) In general.--The term ``unserved 
                household'', with respect to a particular 
                television network, means an unserved analog 
                household or an unserved digital household.
                  (B) Unserved analog household.--In this 
                paragraph, the term ``unserved analog 
                household'' means, with respect to an analog 
                signal, a household that--
                          (i) cannot receive, through the use 
                        of a conventional, stationary, outdoor 
                        rooftop receiving antenna, an over-the-
                        air signal of a primary network station 
                        affiliated with that network of Grade B 
                        intensity as defined by the Federal 
                        Communications Commission under section 
                        73.683(a) of title 47 of the Code of 
                        Federal Regulations, as in effect on 
                        January 1, 1999;
                          (ii) is subject to a waiver granted 
                        under regulations established under 
                        section 339(c)(2) of the Communications 
                        Act of 1934;
                          (iii) is a subscriber to whom 
                        subsection (e) applies;
                          (iv) is a subscriber to whom 
                        subsection (a)(11) applies; or
                          (v) is a subscriber to whom the 
                        exemption under subsection 
                        (a)(2)(B)(iii) applies.
                  (C) Unserved digital household.--In this 
                paragraph, the term ``unserved digital 
                household'' means, with respect to a digital 
                signal, a household that is eligible to receive 
                distant digital signals pursuant to section 
                339(d) of the Communications Act of 1934 (47 
                U.S.C. 339(d)).
          (11) Local market.--The term ``local market'' has the 
        meaning given such term under section 122(j).
          (12) Public broadcasting service satellite feed.--The 
        term ``Public Broadcasting Service satellite feed'' 
        means the national satellite feed distributed and 
        designated for purposes of this section by the Public 
        Broadcasting Service consisting of educational and 
        informational programming intended for private home 
        viewing, to which the Public Broadcasting Service holds 
        national terrestrial broadcast rights.
  (e) Moratorium on Copyright Liability.--Until December 31, 
2004, a subscriber who does not receive a signal of Grade A 
intensity (as defined in the regulations of the Federal 
Communications Commission under section 73.683(a) of title 47 
of the Code of Federal Regulations, as in effect on January 1, 
1999, or predicted by the Federal Communications Commission 
using the Individual Location Longley-Rice methodology 
described by the Federal Communications Commission in Docket 
No. 98-201) of a local network television broadcast station 
shall remain eligible to receive signals of network stations 
affiliated with the same network, if that subscriber had 
satellite service of such network signal terminated after July 
11, 1998, and before October 31, 1999, as required by this 
section, or received such service on October 31, 1999.

Sec. 122. Limitations on exclusive rights: Secondary transmissions by 
                    satellite carriers within local markets

  (a) Secondary Transmissions of Television Broadcast Stations 
by Satellite Carriers.--A secondary transmission of a 
performance or display of a work embodied in a primary 
transmission of a television broadcast station into the 
station's local market shall be subject to statutory licensing 
under this section if--
          (1) the secondary transmission is made by a satellite 
        carrier to the public;
          (2) with regard to secondary transmissions, the 
        satellite carrier is in compliance with the rules, 
        regulations, or authorizations of the Federal 
        Communications Commission governing the carriage of 
        television broadcast station signals; and
          (3) the satellite carrier makes a direct or indirect 
        charge for the secondary transmission to--
                  (A) each subscriber receiving the secondary 
                transmission; or
                  (B) a distributor that has contracted with 
                the satellite carrier for direct or indirect 
                delivery of the secondary transmission to the 
                public.
  (b) Reporting Requirements.--(1) Initial Lists.--A satellite 
carrier that makes secondary transmissions of a primary 
transmission made by a network station under subsection (a) 
shall, within 90 days after commencing such secondary 
transmissions, submit to the network that owns or is affiliated 
with the network station a list identifying (by name in 
alphabetical order and street address, including county and zip 
code) all subscribers to which the satellite carrier makes 
secondary transmissions of that primary transmission under 
subsection (a).
  (2) Subsequent Lists.--After the list is submitted under 
paragraph (1), the satellite carrier shall, on the 15th of each 
month, submit to the network a list identifying (by name in 
alphabetical order and street address, including county and zip 
code) any subscribers who have been added or dropped as 
subscribers since the last submission under this subsection.
  (3) Use of Subscriber Information.--Subscriber information 
submitted by a satellite carrier under this subsection may be 
used only for the purposes of monitoring compliance by the 
satellite carrier with this section.
  (4) Requirements of Networks.--The submission requirements of 
this subsection shall apply to a satellite carrier only if the 
network to which the submissions are to be made places on file 
with the Register of Copyrights a document identifying the name 
and address of the person to whom such submissions are to be 
made. The Register of Copyrights shall maintain for public 
inspection a file of all such documents.
  (c) No Royalty Fee Required.--A satellite carrier whose 
secondary transmissions are subject to statutory licensing 
under subsection (a) shall have no royalty obligation for such 
secondary transmissions.
  (d) Noncompliance with Reporting and Regulatory 
Requirements.--Notwithstanding subsection (a), the willful or 
repeated secondary transmission to the public by a satellite 
carrier into the local market of a television broadcast station 
of a primary transmission embodying a performance or display of 
a work made by that television broadcast station is actionable 
as an act of infringement under section 501, and is fully 
subject to the remedies provided under sections 502 through 506 
and 509, if the satellite carrier has not complied with the 
reporting requirements of subsection (b) or with the rules, 
regulations, and authorizations of the Federal Communications 
Commission concerning the carriage of television broadcast 
signals.
  (e) Willful Alterations.--Notwithstanding subsection (a), the 
secondary transmission to the public by a satellite carrier 
into the local market of a television broadcast station of a 
performance or display of a work embodied in a primary 
transmission made by that television broadcast station is 
actionable as an act of infringement under section 501, and is 
fully subject to the remedies provided by sections 502 through 
506 and sections 509 and 510, if the content of the particular 
program in which the performance or display is embodied, or any 
commercial advertising or station announcement transmitted by 
the primary transmitter during, or immediately before or after, 
the transmission of such program, is in any way willfully 
altered by the satellite carrier through changes, deletions, or 
additions, or is combined with programming from any other 
broadcast signal.
  (f) Violation of Territorial Restrictions on Statutory 
License for Television Broadcast Stations.--
          (1) Individual violations.--The willful or repeated 
        secondary transmission to the public by a satellite 
        carrier of a primary transmission embodying a 
        performance or display of a work made by a television 
        broadcast station to a subscriber who does not reside 
        in that station's local market, and is not subject to 
        statutory licensing under section 119 or a private 
        licensing agreement, is actionable as an act of 
        infringement under section 501 and is fully subject to 
        the remedies provided by sections 502 through 506 and 
        509, except that--
                  (A) no damages shall be awarded for such act 
                of infringement if the satellite carrier took 
                corrective action by promptly withdrawing 
                service from the ineligible subscriber; and
                  (B) any statutory damages shall not exceed $5 
                for such subscriber for each month during which 
                the violation occurred.
          (2) Pattern of violations.--If a satellite carrier 
        engages in a willful or repeated pattern or practice of 
        secondarily transmitting to the public a primary 
        transmission embodying a performance or display of a 
        work made by a television broadcast station to 
        subscribers who do not reside in that station's local 
        market, and are not subject to statutory licensing 
        under section 119 or a private licensing agreement, 
        then in addition to the remedies under paragraph (1)--
                  (A) if the pattern or practice has been 
                carried out on a substantially nationwide 
                basis, the court--
                          (i) shall order a permanent 
                        injunction barring the secondary 
                        transmission by the satellite carrier 
                        of the primary transmissions of that 
                        television broadcast station (and if 
                        such television broadcast station is a 
                        network station, all other television 
                        broadcast stations affiliated with such 
                        network); and
                          (ii) may order statutory damages not 
                        exceeding $ 250,000 for each 6-month 
                        period during which the pattern or 
                        practice was carried out; and
                  (B) if the pattern or practice has been 
                carried out on a local or regional basis with 
                respect to more than one television broadcast 
                station, the court--
                          (i) shall order a permanent 
                        injunction barring the secondary 
                        transmission in that locality or region 
                        by the satellite carrier of the primary 
                        transmissions of any television 
                        broadcast station; and
                          (ii) may order statutory damages not 
                        exceeding $ 250,000 for each 6-month 
                        period during which the pattern or 
                        practice was carried out.
  (g) Burden of Proof.--In any action brought under subsection 
(f), the satellite carrier shall have the burden of proving 
that its secondary transmission of a primary transmission by a 
television broadcast station is made only to subscribers 
located within that station's local market or subscribers being 
served in compliance with section 119 or a private licensing 
agreement.
  (h) Geographic Limitations on Secondary Transmissions.--The 
statutory license created by this section shall apply to 
secondary transmissions to locations in the United States.
  (i) Exclusivity with Respect to Secondary Transmissions of 
Broadcast Stations by Satellite to Members of the Public.--No 
provision of section 111 or any other law (other than this 
section and section 119) shall be construed to contain any 
authorization, exemption, or license through which secondary 
transmissions by satellite carriers of programming contained in 
a primary transmission made by a television broadcast station 
may be made without obtaining the consent of the copyright 
owner.
  (j) Definitions.--In this section--
          (1) Distributor.--The term ``distributor'' means an 
        entity which contracts to distribute secondary 
        transmissions from a satellite carrier and, either as a 
        single channel or in a package with other programming, 
        provides the secondary transmission either directly to 
        individual subscribers or indirectly through other 
        program distribution entities.
          (2) Local market.--(A) In general.--The term ``local 
        market'', in the case of both commercial and 
        noncommercial television broadcast stations, means the 
        designated market area in which a station is located, 
        and--
                  (i) in the case of a commercial television 
                broadcast station, all commercial television 
                broadcast stations licensed to a community 
                within the same designated market area are 
                within the same local market; and
                  (ii) in the case of a noncommercial 
                educational television broadcast station, the 
                market includes any station that is licensed to 
                a community within the same designated market 
                area as the noncommercial educational 
                television broadcast station.
          (B) County of license.--In addition to the area 
        described in subparagraph (A), a station's local market 
        includes the county in which the station's community of 
        license is located.
          (C) Designated market area.--For purposes of 
        subparagraph (A), the term ``designated market area'' 
        means a designated market area, as determined by 
        Nielsen Media Research and published in the 1999-2000 
        Nielsen Station Index Directory and Nielsen Station 
        Index United States Television Household Estimates or 
        any successor publication.
          (D) Certain states.--If a satellite carrier elects, 
        under section 338(a)(3)(A) or (B) of the Communications 
        Act of 1934 (47 U.S.C. 338(a)(3)(A) or (B)), to carry 
        the signal of a network station or superstation then, 
        in addition to the area described in subparagraph (A) 
        of this paragraph, the local market of that station 
        includes, solely for the purposes of the secondary 
        transmission of that signal by the satellite carrier, 
        all households within the geographic borders of the 
        State in which that station is licensed.
          (E) Certain areas outside of any designated market 
        area.--Any census area, borough, or other area in the 
        State of Alaska that is outside of a designated market 
        area, as determined by Nielsen Media Research, shall be 
        deemed to be part of one of the local markets in the 
        State of Alaska. A satellite carrier may determine 
        which local market in the State of Alaska will be 
        deemed to be the relevant local market in connection 
        with each subscriber in such census area, borough, or 
        other area.
          (3) Network station; satellite carrier; secondary 
        transmission.--The terms ``network station'', 
        ``satellite carrier'', and ``secondary transmission'' 
        have the meanings given such terms under section 
        119(d).
          (4) Subscriber.--The term ``subscriber'' means a 
        person who receives a secondary transmission service 
        from a satellite carrier and pays a fee for the 
        service, directly or indirectly, to the satellite 
        carrier or to a distributor.
          (5) Television broadcast station.--The term 
        ``television broadcast station''--
                  (A) means an over-the-air, commercial or 
                noncommercial television broadcast station 
                licensed by the Federal Communications 
                Commission under subpart E of part 73 of title 
                47, Code of Federal Regulations, except that 
                such term does not include a low-power or 
                translator television station; and
                  (B) includes a television broadcast station 
                licensed by an appropriate governmental 
                authority of Canada or Mexico if the station 
                broadcasts primarily in the English language 
                and is a network station as defined in section 
                119(d)(2)(A).

           *       *       *       *       *       *       *

                       COMMUNICATIONS ACT OF 1934

                TITLE III--PROVISIONS RELATING TO RADIO

                       PART I. GENERAL PROVISIONS

SEC. 325. FALSE DISTRESS SIGNALS; REBROADCASTING; STUDIOS OF FOREIGN 
                    STATIONS.

                            [47 U.S.C. 325]

  (a) No person within the jursidiction of the United States 
shall knowingly utter or transmit, or cause to be uttered or 
transmitted, any false or fraudulent signals of distress, or 
communication relating thereto, nor shall any broadcasting 
station rebroadcast the program or any part thereof of another 
broadcasting station without the express authority of the 
originating station.
  (b)(1) No cable system or other multichannel video 
programming distributor shall retransmit the signal of a 
broadcasting station, or any part thereof, except--
          (A) with the express authority of the originating 
        station;
          (B) under section 614, in the case of a station 
        electing, in accordance with this subsection, to assert 
        the right to carriage under such section; or
          (C) under section 338, in the case of a station 
        electing, in accordance with this subsection, to assert 
        the right to carriage under such section.
  (2) This subsection shall not apply--
          (A) to retransmission of the signal of a 
        noncommercial television broadcast station;
          (B) to retransmission of the signal of a television 
        broadcast station outside the station's local market by 
        a satellite carrier directly to its subscribers, if--
                  (i) such station was a superstation on May 1, 
                1991;
                  (ii) as of July 1, 1998, such station was 
                retransmitted by a satellite carrier under the 
                statutory license of section 119 of title 17, 
                United States Code; and
                  (iii) the satellite carrier complies with any 
                network nonduplication, syndicated exclusivity, 
                and sports blackout rules adopted by the 
                Commission under section 339(b) of this Act;
          (C) until [December 31, 2004,] December 31, 2009, to 
        retransmission of the signals of network stations 
        directly to a home satellite antenna, if the subscriber 
        receiving the signal--
                  (i) is located in an area outside the local 
                market of such stations; and
                  (ii) resides in an unserved household;
          (D) to retransmission by a cable operator or other 
        multichannel video provider, other than a satellite 
        carrier, of the signal of a television broadcast 
        station outside the station's local market if such 
        signal was obtained from a satellite carrier and--
                  (i) the originating station was a 
                superstation on May 1, 1991; and
                  (ii) as of July 1, 1998, such station was 
                retransmitted by a satellite carrier under the 
                statutory license of section 119 of title 17, 
                United States Code; or
          (E) during the 6-month period beginning on the date 
        of the enactment of the Satellite Home Viewer 
        Improvement Act of 1999, to the retransmission of the 
        signal of a television broadcast station within the 
        station's local market by a satellite carrier directly 
        to its subscribers under the statutory license of 
        section 122 of title 17, United States Code.
For purposes of this paragraph, the terms ``satellite carrier'' 
and ``superstation'' have the meanings given those terms, 
respectively, in section 119(d) of title 17, United States 
Code, as in effect on the date of the enactment of the Cable 
Television Consumer Protection and Competition Act of 1992, the 
term ``unserved household'' has the meaning given that term 
under section 119(d) of such title, and the term ``local 
market'' has the meaning given that term in section 122( j) of 
such title.
  (3)(A) Within 45 days after the date of enactment of the 
Cable Television Consumer Protection and Competition Act of 
1992, the Commission shall commence a rulemaking proceeding to 
establish regulations to govern the exercise by television 
broadcast stations of the right to grant retransmission consent 
under this subsection and of the right to signal carriage under 
section 614, and such other regulations as are necessary to 
administer the limitations contained in paragraph (2). The 
Commission shall consider in such proceeding the impact that 
the grant of retransmission consent by television stations may 
have on the rates for the basic service tier and shall ensure 
that the regulations prescribed under this subsection do not 
conflict with the Commission's obligation under section 
623(b)(1) to ensure that the rates for the basic service tier 
are reasonable. Such rulemaking proceeding shall be completed 
within 180 days after the date of enactment of the Cable 
Television Consumer Protection and Competition Act of 1992.
  (B) The regulations required by subparagraph (A) shall 
require that television stations, within one year after the 
date of enactment of the Cable Television Consumer Protection 
and Competition Act of 1992 and every three years thereafter, 
make an election between the right to grant retransmission 
consent under this subsection and the right to signal carriage 
under section 614. If there is more than one cable system which 
services the same geographic area, a station's election shall 
apply to all such cable systems.
  (C) [Within 45 days after the date of the enactment of the 
Satellite Home Viewer Improvement Act of 1999, the] The 
Commission shall commence a rulemaking proceeding to revise the 
regulations governing the exercise by television broadcast 
stations of the right to grant retransmission consent under 
this subsection, and such other regulations as are necessary to 
administer the limitations contained in paragraph (2). [The 
Commission shall complete all actions necessary to prescribe 
such regulations within 1 year after such date of enactment.] 
Such regulations shall--
          (i) establish election time periods that correspond 
        with those regulations adopted under subparagraph (B) 
        of this paragraph; [and]
          (ii) until [January 1, 2006,] January 1, 2010, 
        prohibit a television broadcast station that provides 
        retransmission consent from engaging in exclusive 
        contracts for carriage or failing to negotiate in good 
        faith, and it shall not be a failure to negotiate in 
        good faith if the television broadcast station enters 
        into retransmission consent agreements containing 
        different terms and conditions, including price terms, 
        with different multichannel video programming 
        distributors if such different terms and conditions are 
        based on competitive marketplace [considerations.] 
        considerations; and
          (iii) until January 1, 2010, prohibit a multichannel 
        video programming distributor from failing to negotiate 
        in good faith for retransmission consent under this 
        section, and it shall not be a failure to negotiate in 
        good faith if the distributor enters into 
        retransmission consent agreements containing different 
        terms and conditions, including price terms, with 
        different broadcast stations if such different terms 
        and conditions are based on competitive marketplace 
        considerations.
  (4) If an originating television station elects under 
paragraph (3)(B) to exercise its right to grant retransmission 
consent under this subsection with respect to a cable system, 
the provisions of section 614 shall not apply to the carriage 
of the signal of such station by such cable system. If an 
originating television station elects under paragraph (3)(C) to 
exercise its right to grant retransmission consent under this 
subsection with respect to a satellite carrier, section 338 
shall not apply to the carriage of the signal of such station 
by such satellite carrier.
  (5) The exercise by a television broadcast station of the 
right to grant retransmission consent under this subsection 
shall not interfere with or supersede the rights under section 
338, 614, or 615 of any station electing to assert the right to 
signal carriage under that section.
  (6) Nothing in this section shall be construed as modifying 
the compulsory copyright license established in section 111 of 
title 17, United States Code, or as affecting existing or 
future video programming licensing agreements between 
broadcasting stations and video programmers.
          (7) \1\ For purposes of this subsection, the term--
---------------------------------------------------------------------------
    \1\ Margin so in law.
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                  (A) ``network station'' has the meaning given 
                such term under section 119(d) of title 17, 
                United States Code; and
                  (B) ``television broadcast station'' means an 
                over-the-air commercial or noncommercial 
                television broadcast station licensed by the 
                Commission under subpart E of part 73 of title 
                47, Code of Federal Regulations, except that 
                such term does not include a low-power or 
                translator television station.
  (c) No person shall be permitted to locate, use, or maintain 
a radio broadcast studio or other place or apparatus from which 
or whereby sound waves are converted into electrical energy, or 
mechanical or physical reproduction of sound waves produced, 
and caused to be transmitted or delivered to a radio station in 
a foreign country for the purpose of being broadcast from any 
radio station there having a power output of sufficient 
intensity and/or being so located geographically that its 
emissions may be received consistently in the United States, 
without first obtaining a permit from the Commission upon 
proper application therefor.
  (d) Such application shall contain such information as the 
Commission may by regulation prescribe, and the granting or 
refusal thereof shall be subject to the requirements of section 
309 hereof with respect to applications for station licenses or 
renewal or modification thereof, and the license or permission 
so granted shall be revocable for false statements in the 
application so required or when the Commission, after hearings, 
shall find its continuation no longer in the public interest.
  (e) Enforcement Proceedings Against Satellite Carriers 
Concerning Retransmissions of Television Broadcast Stations in 
the Respective Local Markets of Such Carriers.--
          (1) Complaints by television broadcast stations.--If 
        after the expiration of the 6-month period described 
        under subsection (b)(2)(E) a television broadcast 
        station believes that a satellite carrier has 
        retransmitted its signal to any person in the local 
        market of such station in violation of subsection 
        (b)(1), the station may file with the Commission a 
        complaint providing--
                  (A) the name, address, and call letters of 
                the station;
                  (B) the name and address of the satellite 
                carrier;
                  (C) the dates on which the alleged 
                retransmission occurred;
                  (D) the street address of at least one person 
                in the local market of the station to whom the 
                alleged retransmission was made;
                  (E) a statement that the retransmission was 
                not expressly authorized by the television 
                broadcast station; and
                  (F) the name and address of counsel for the 
                station.
          (2) Service of complaints on satellite carriers.--For 
        purposes of any proceeding under this subsection, any 
        satellite carrier that retransmits the signal of any 
        broadcast station shall be deemed to designate the 
        Secretary of the Commission as its agent for service of 
        process. A television broadcast station may serve a 
        satellite carrier with a complaint concerning an 
        alleged violation of subsection (b)(1) through 
        retransmission of a station within the local market of 
        such station by filing the original and two copies of 
        the complaint with the Secretary of the Commission and 
        serving a copy of the complaint on the satellite 
        carrier by means of two commonly used overnight 
        delivery services, each addressed to the chief 
        executive officer of the satellite carrier at its 
        principal place of business, and each marked ``URGENT 
        LITIGATION MATTER'' on the outer packaging. Service 
        shall be deemed complete one business day after a copy 
        of the complaint is provided to the delivery services 
        for overnight delivery. On receipt of a complaint filed 
        by a television broadcast station under this 
        subsection, the Secretary of the Commission shall send 
        the original complaint by United States mail, postage 
        prepaid, receipt requested, addressed to the chief 
        executive officer of the satellite carrier at its 
        principal place of business.
          (3) Answers by satellite carriers.--Within five 
        business days after the date of service, the satellite 
        carrier shall file an answer with the Commission and 
        shall serve the answer by a commonly used overnight 
        delivery service and by United States mail, on the 
        counsel designated in the complaint at the address 
        listed for such counsel in the complaint.
          (4) Defenses.--
                  (A) Exclusive defenses.--The defenses under 
                this paragraph are the exclusive defenses 
                available to a satellite carrier against which 
                a complaint under this subsection is filed.
                  (B) Defenses.--The defenses referred to under 
                subparagraph (A) are the defenses that--
                          (i) the satellite carrier did not 
                        retransmit the television broadcast 
                        station to any person in the local 
                        market of the station during the time 
                        period specified in the complaint;
                          (ii) the television broadcast station 
                        had, in a writing signed by an officer 
                        of the television broadcast station, 
                        expressly authorized the retransmission 
                        of the station by the satellite carrier 
                        to each person in the local market of 
                        the television broadcast station to 
                        which the satellite carrier made such 
                        retransmissions for the entire time 
                        period during which it is alleged that 
                        a violation of subsection (b)(1) has 
                        occurred;
                          (iii) the retransmission was made 
                        after January 1, 2002, and the 
                        television broadcast station had 
                        elected to assert the right to carriage 
                        under section 338 as against the 
                        satellite carrier for the relevant 
                        period; or
                          (iv) the station being retransmitted 
                        is a noncommercial television broadcast 
                        station.
          (5) Counting of violations.--The retransmission 
        without consent of a particular television broadcast 
        station on a particular day to one or more persons in 
        the local market of the station shall be considered a 
        separate violation of subsection (b)(1).
          (6) Burden of proof.--With respect to each alleged 
        violation, the burden of proof shall be on a television 
        broadcast station to establish that the satellite 
        carrier retransmitted the station to at least one 
        person in the local market of the station on the day in 
        question. The burden of proof shall be on the satellite 
        carrier with respect to all defenses other than the 
        defense under paragraph (4)(B)(i).
          (7) Procedures.--
                  (A) Regulations.--Within 60 days after the 
                date of the enactment of the Satellite Home 
                Viewer Improvement Act of 1999, the Commission 
                shall issue procedural regulations implementing 
                this subsection which shall supersede 
                procedures under section 312.
                  (B) Determinations.--
                          (i) In general.--Within 45 days after 
                        the filing of a complaint, the 
                        Commission shall issue a final 
                        determination in any proceeding brought 
                        under this subsection. The Commission's 
                        final determination shall specify the 
                        number of violations committed by the 
                        satellite carrier. The Commission shall 
                        hear witnesses only if it clearly 
                        appears, based on written filings by 
                        the parties, that there is a genuine 
                        dispute about material facts. Except as 
                        provided in the preceding sentence, the 
                        Commission may issue a final ruling 
                        based on written filings by the 
                        parties.
                          (ii) Discovery.--The Commission may 
                        direct the parties to exchange 
                        pertinent documents, and if necessary 
                        to take prehearing depositions, on such 
                        schedule as the Commission may approve, 
                        but only if the Commission first 
                        determines that such discovery is 
                        necessary to resolve a genuine dispute 
                        about material facts, consistent with 
                        the obligation to make a final 
                        determination within 45 days.
          (8) Relief.--If the Commission determines that a 
        satellite carrier has retransmitted the television 
        broadcast station to at least one person in the local 
        market of such station and has failed to meet its 
        burden of proving one of the defenses under paragraph 
        (4) with respect to such retransmission, the Commission 
        shall be required to--
                  (A) make a finding that the satellite carrier 
                violated subsection (b)(1) with respect to that 
                station; and
                  (B) issue an order, within 45 days after the 
                filing of the complaint, containing--
                          (i) a cease-and-desist order 
                        directing the satellite carrier 
                        immediately to stop making any further 
                        retransmissions of the television 
                        broadcast station to any person within 
                        the local market of such station until 
                        such time as the Commission determines 
                        that the satellite carrier is in 
                        compliance with subsection (b)(1) with 
                        respect to such station;
                          (ii) if the satellite carrier is 
                        found to have violated subsection 
                        (b)(1) with respect to more than two 
                        television broadcast stations, a cease-
                        and-desist order directing the 
                        satellite carrier to stop making any 
                        further retransmission of any 
                        television broadcast station to any 
                        person within the local market of such 
                        station, until such time as the 
                        Commission, after giving notice to the 
                        station, that the satellite carrier is 
                        in compliance with subsection (b)(1) 
                        with respect to such stations; and
                          (iii) an award to the complainant of 
                        that complainant's costs and reasonable 
                        attorney's fees.
          (9) Court proceedings on enforcement of commission 
        order.--
                  (A) In general.--On entry by the Commission 
                of a final order granting relief under this 
                subsection--
                          (i) a television broadcast station 
                        may apply within 30 days after such 
                        entry to the United States District 
                        Court for the Eastern District of 
                        Virginia for a final judgment enforcing 
                        all relief granted by the Commission; 
                        and
                          (ii) the satellite carrier may apply 
                        within 30 days after such entry to the 
                        United States District Court for the 
                        Eastern District of Virginia for a 
                        judgment reversing the Commission's 
                        order.
                  (B) Appeal.--The procedure for an appeal 
                under this paragraph by the satellite carrier 
                shall supersede any other appeal rights under 
                Federal or State law. A United States district 
                court shall be deemed to have personal 
                jurisdiction over the satellite carrier if the 
                carrier, or a company under common control with 
                the satellite carrier, has delivered television 
                programming by satellite to more than 30 
                customers in that district during the preceding 
                4-year period. If the United States District 
                Court for the Eastern District of Virginia does 
                not have personal jurisdiction over the 
                satellite carrier, an enforcement action or 
                appeal shall be brought in the United States 
                District Court for the District of Columbia, 
                which may find personal jurisdiction based on 
                the satellite carrier's ownership of licenses 
                issued by the Commission. An application by a 
                television broadcast station for an order 
                enforcing any cease-and-desist relief granted 
                by the Commission shall be resolved on a highly 
                expedited schedule. No discovery may be 
                conducted by the parties in any such 
                proceeding. The district court shall enforce 
                the Commission order unless the Commission 
                record reflects manifest error and an abuse of 
                discretion by the Commission.
          (10) Civil action for statutory damages.--Within 6 
        months after issuance of an order by the Commission 
        under this subsection, a television broadcast station 
        may file a civil action in any United States district 
        court that has personal jurisdiction over the satellite 
        carrier for an award of statutory damages for any 
        violation that the Commission has determined to have 
        been committed by a satellite carrier under this 
        subsection. Such action shall not be subject to 
        transfer under section 1404(a) of title 28, United 
        States Code. On finding that the satellite carrier has 
        committed one or more violations of subsection (b), the 
        District Court shall be required to award the 
        television broadcast station statutory damages of 
        $25,000 per violation, in accordance with paragraph 
        (5), and the costs and attorney's fees incurred by the 
        station. Such statutory damages shall be awarded only 
        if the television broadcast station has filed a binding 
        stipulation with the court that such station will 
        donate the full amount in excess of $1,000 of any 
        statutory damage award to the United States Treasury 
        for public purposes. Notwithstanding any other 
        provision of law, a station shall incur no tax 
        liability of any kind with respect to any amounts so 
        donated. Discovery may be conducted by the parties in 
        any proceeding under this paragraph only if and to the 
        extent necessary to resolve a genuinely disputed issue 
        of fact concerning one of the defenses under paragraph 
        (4). In any such action, the defenses under paragraph 
        (4) shall be exclusive, and the burden of proof shall 
        be on the satellite carrier with respect to all 
        defenses other than the defense under paragraph 
        (4)(B)(i). A judgment under this paragraph may be 
        enforced in any manner permissible under Federal or 
        State law.
          (11) Appeals.--
                  (A) In general.--The nonprevailing party 
                before a United States district court may 
                appeal a decision under this subsection to the 
                United States Court of Appeals with 
                jurisdiction over that district court. The 
                Court of Appeals shall not issue any stay of 
                the effectiveness of any decision granting 
                relief against a satellite carrier unless the 
                carrier presents clear and convincing evidence 
                that it is highly likely to prevail on appeal 
                and only after posting a bond for the full 
                amount of any monetary award assessed against 
                it and for such further amount as the Court of 
                Appeals may believe appropriate.
                  (B) Appeal.--If the Commission denies relief 
                in response to a complaint filed by a 
                television broadcast station under this 
                subsection, the television broadcast station 
                filing the complaint may file an appeal with 
                the United States Court of Appeals for the 
                District of Columbia Circuit.
          (12) Sunset.--No complaint or civil action may be 
        filed under this subsection after December 31, 2001. 
        This subsection shall continue to apply to any 
        complaint or civil action filed on or before such date.

           *       *       *       *       *       *       *

SEC. 338. CARRIAGE OF LOCAL TELEVISION SIGNALS BY SATELLITE CARRIERS.

                            [47 U.S.C. 338]

  (a) Carriage Obligations.--
          (1) In general.--Subject to the limitations of 
        paragraph [(2),] (2) and except as provided by 
        paragraph (3), each satellite carrier providing, under 
        section 122 of title 17, United States Code, secondary 
        transmissions to subscribers located within the local 
        market of a television broadcast station of a primary 
        transmission made by that station shall carry upon 
        request the signals of all television broadcast 
        stations located within that local market, subject to 
        section 325(b).
          (2) Remedies for failure to carry.--The remedies for 
        any failure to meet the obligations [under this 
        subsection] under paragraph (1) shall be available 
        exclusively under section 501(f ) of title 17, United 
        States Code.
          [(3) Effective date.--No satellite carrier shall be 
        required to carry local television broadcast stations 
        under paragraph (1) until January 1, 2002.]
          (3) Certain broadcast areas.--
                  (A) Single network station states.--A 
                satellite carrier may elect to carry also the 
                signal of a commercial television broadcast 
                station that was the only network station (as 
                defined in section 339(d)(3)) in that State as 
                of January 1, 1995, for secondary transmission 
                to subscribers in any community in that State 
                that is not within 1 of the first 50 major 
                television markets listed in section 76.51(a) 
                of the Commission's regulations (47 C.F.R. 
                76.51(a)), as such regulations were in effect 
                on January 1, 1995, if the satellite carrier is 
                retransmitting the signal of the station 
                pursuant to paragraph (1) of this subsection or 
                section 325(b) of this Act.
                  (B) Multiple network station states.--A 
                satellite carrier may elect to carry also the 
                signals of any network station (as defined in 
                section 339(d)(3)) or superstation (as defined 
                in section 325(b)(2)) in a State in which--
                          (i) all network stations and 
                        superstations licensed by the 
                        Commission as of January 1, 1995, were 
                        assigned to the same local market, and
                          (ii) that local market does not 
                        encompass all counties of that State,
                for secondary transmission to subscribers in 
                that State who reside in one of the first 50 
                major television markets listed in section 
                76.51(a) of the Commission's regulations (47 
                C.F.R. 76.51(a)), as such regulations were in 
                effect on January 1, 1995, if the satellite 
                carrier is retransmitting the signals pursuant 
                to paragraph (1) of this subsection or section 
                325(b) of this Act.
          (4) Carriage of signals of local stations in certain 
        markets.--A satellite carrier that offers multichannel 
        video programming distribution service in the United 
        States to more than 5,000,000 subscribers shall, within 
        2 years after the date of enactment of the Satellite 
        Home Viewer Extension and Rural Consumer Access to 
        Digital Television Act of 2004, retransmit the analog 
        and digital signals of each television broadcast 
        station located in any local market within a State that 
        is not part of the contiguous United States and that 
        contains more than one television market. The 
        retransmissions of such stations shall be made 
        available to substantially all of the satellite 
        carrier's subscribers in each station's local market, 
        and the retransmissions of the stations in at least one 
        market in the state shall be made available to 
        substantially all of the satellite carrier's 
        subscribers in areas of the State that are not within a 
        designated market area. The cost to subscribers of such 
        retransmissions shall not exceed the cost of 
        retransmissions of local television stations in other 
        States. Within 1 year after the date of enactment of 
        that Act, the Commission shall promulgate regulations 
        concerning elections by television stations in such 
        State between mandatory carriage pursuant to this 
        section and retransmission consent pursuant to section 
        325(b), which shall take into account the schedule on 
        which local television stations are made available to 
        viewers in such State.
  (b) Good Signal Required.--
          (1) Costs.--A television broadcast station asserting 
        its right to carriage under subsection (a) shall be 
        required to bear the costs associated with delivering a 
        good quality signal to the designated local receive 
        facility of the satellite carrier or to another 
        facility that is acceptable to at least one-half the 
        stations asserting the right to carriage in the local 
        market.
          (2) Regulations.--The regulations issued under 
        subsection (g) shall set forth the obligations 
        necessary to carry out this subsection.
  (c) Duplication Not Required.--
          (1) Commercial stations.--Notwithstanding subsection 
        (a), a satellite carrier shall not be required to carry 
        upon request the signal of any local commercial 
        television broadcast station that substantially 
        duplicates the signal of another local commercial 
        television broadcast station which is secondarily 
        transmitted by the satellite carrier within the same 
        local market, or to carry upon request the signals of 
        more than one local commercial television broadcast 
        station in a single local market that is affiliated 
        with a particular television network unless such 
        stations are licensed to communities in different 
        States.
          (2) Noncommercial stations.--The Commission shall 
        prescribe regulations limiting the carriage 
        requirements under subsection (a) of satellite carriers 
        with respect to the carriage of multiple local 
        noncommercial television broadcast stations. To the 
        extent possible, such regulations shall provide the 
        same degree of carriage by satellite carriers of such 
        multiple stations as is provided by cable systems under 
        section 615.
  (d) Channel Positioning.--No satellite carrier shall be 
required to provide the signal of a local television broadcast 
station to subscribers in that station's local market on any 
particular channel number or to provide the signals in any 
particular order, except that the satellite carrier shall 
retransmit the signal of the local television broadcast 
stations to subscribers in the stations' local market on 
contiguous channels and provide access to such station's 
signals at a nondiscriminatory price and in a nondiscriminatory 
manner on any navigational device, on-screen program guide, or 
menu.
  (e) Compensation for Carriage.--A satellite carrier shall not 
accept or request monetary payment or other valuable 
consideration in exchange either for carriage of local 
television broadcast stations in fulfillment of the 
requirements of this section or for channel positioning rights 
provided to such stations under this section, except that any 
such station may be required to bear the costs associated with 
delivering a good quality signal to the local receive facility 
of the satellite carrier.
  (f) Remedies.--
          (1) Complaints by broadcast stations.--Whenever a 
        local television broadcast station believes that a 
        satellite carrier has failed to meet its obligations 
        under subsections (b) through (e) of this section, such 
        station shall notify the carrier, in writing, of the 
        alleged failure and identify its reasons for believing 
        that the satellite carrier failed to comply with such 
        obligations. The satellite carrier shall, within 30 
        days after such written notification, respond in 
        writing to such notification and comply with such 
        obligations or state its reasons for believing that it 
        is in compliance with such obligations. A local 
        television broadcast station that disputes a response 
        by a satellite carrier that it is in compliance with 
        such obligations may obtain review of such denial or 
        response by filing a complaint with the Commission. 
        Such complaint shall allege the manner in which such 
        satellite carrier has failed to meet its obligations 
        and the basis for such allegations.
          (2) Opportunity to respond.--The Commission shall 
        afford the satellite carrier against which a complaint 
        is filed under paragraph (1) an opportunity to present 
        data and arguments to establish that there has been no 
        failure to meet its obligations under this section.
          (3) Remedial actions; dismissal.--Within 120 days 
        after the date a complaint is filed under paragraph 
        (1), the Commission shall determine whether the 
        satellite carrier has met its obligations under 
        subsections (b) through (e). If the Commission 
        determines that the satellite carrier has failed to 
        meet such obligations, the Commission shall order the 
        satellite carrier to take appropriate remedial action. 
        If the Commission determines that the satellite carrier 
        has fully met the requirements of such subsections, the 
        Commission shall dismiss the complaint.
  (g) Carriage of Local Stations on a Single Dish.--
          (1) General rule.--A satellite carrier that 
        retransmits the signals of local television broadcast 
        stations in a local market shall retransmit the signals 
        of all local television broadcast stations 
        retransmitted by that carrier to subscribers in that 
        market by means of a single reception antenna and 
        associated equipment.
          (2) Exception for digital television service.--
        Notwithstanding paragraph (1), if the carrier 
        retransmits signals in the digital television service, 
        the carrier shall retransmit the digital television 
        service signals of all the local television broadcast 
        stations retransmitted by that carrier to subscribers 
        in that market by means of a single reception antenna 
        and associated equipment, but the antenna and 
        associated equipment may be separate from the single 
        reception antenna and associated equipment used for 
        signals that are not in the digital television service.
          (3) 18-month transition period for existing 2-dish 
        markets.--In the case of a satellite carrier that, as 
        of July 1, 2004, is retransmitting local television 
        broadcast signals to subscribers in local markets by 
        means of more than a single reception antenna and 
        associated equipment, the requirements of paragraphs 
        (1) and (2) shall first apply to that carrier in those 
        local markets 18 months after the date of enactment of 
        the Satellite Home Viewer Extension and Rural Consumer 
        Access to Digital Television Act of 2004.
          (4) Enforcement.--If a satellite carrier fails to 
        comply with the requirements of this subsection--
                (A) the failure to comply shall be punishable 
                under titles IV and V of this Act;
                  (B) each market with respect to which the 
                satellite carrier fails to comply shall be 
                considered to be a separate violation; and
                  (C) each day of a continuing violation shall 
                be considered to be a separate violation.
  [(g)] (h) Regulations by Commission.--Within 1 year after the 
date of the enactment of this section, the Commission shall 
issue regulations implementing this section following a 
rulemaking proceeding. The regulations prescribed under this 
section shall include requirements on satellite carriers that 
are comparable to the requirements on cable operators under 
sections 614(b)(3) and (4) and 615(g)(1) and (2).
  [(h)] (i) Definitions.--As used in this section:
          (1) Distributor.--The term ``distributor'' means an 
        entity which contracts to distribute secondary 
        transmissions from a satellite carrier and, either as a 
        single channel or in a package with other programming, 
        provides the secondary transmission either directly to 
        individual subscribers or indirectly through other 
        program distribution entities.
          (2) Local receive facility.--The term ``local receive 
        facility'' means the reception point in each local 
        market which a satellite carrier designates for 
        delivery of the signal of the station for purposes of 
        retransmission.
          (3) Local market.--The term ``local market'' has the 
        meaning given that term under section 122( j) of title 
        17, United States Code.
          (4) Satellite carrier.--The term ``satellite 
        carrier'' has the meaning given such term under section 
        119(d) of title 17, United States Code.
          (5) Secondary transmission.--The term ``secondary 
        transmission'' has the meaning given such term in 
        section 119(d) of title 17, United States Code.
          (6) Subscriber.--The term ``subscriber'' has the 
        meaning given that term under section 122( j) of title 
        17, United States Code.
          (7) Television broadcast station.--The term 
        ``television broadcast station'' has the meaning given 
        such term in section 325(b)(7).

SEC. 339. CARRIAGE OF DISTANT TELEVISION STATIONS BY SATELLITE 
                    CARRIERS.

                            [47 U.S.C. 339]

  (a) Provisions Relating to Carriage of Distant Signals.--
          [(1) Carriage permitted.--
                  [(A) In general.--Subject to section 119 of 
                title 17, United States Code, any satellite 
                carrier shall be permitted to provide the 
                signals of no more than two network stations in 
                a single day for each television network to any 
                household not located within the local markets 
                of those network stations.
                  [(B) Additional service.--In addition to 
                signals provided under subparagraph (A), any 
                satellite carrier may also provide service 
                under the statutory license of section 122 of 
                title 17, United States Code, to the local 
                market within which such household is located. 
                The service provided under section 122 of such 
                title may be in addition to the two signals 
                provided under section 119 of such title.]
          (1) Carriage permitted.--
                  (A) Analog signals.--
                          (i) In general.--Subject to section 
                        119 of title 17, United States Code, a 
                        satellite carrier may provide the 
                        analog signals of no more than 2 
                        network stations in a single day for 
                        each television network to any 
                        household not located within the local 
                        markets of those network stations.
                          (ii) Additional service.--To the 
                        extent consistent with sections 119 and 
                        122 of title 17, United States Code, a 
                        satellite carrier may also provide 
                        service under the statutory license of 
                        those sections to the local market 
                        within which such household is located 
                        in addition to the signals provided 
                        under clause (i).
                  (B) Digital signals.--To the extent 
                consistent with section 119 of title 17, United 
                States Code, a satellite carrier may provide 
                the digital signals of no more than 2 network 
                stations in a single day for each television 
                network to any household not located within the 
                local markets of those network stations. 
                Nothing in this subparagraph creates a 
                statutory license under section 119(a) or (b) 
                of title 17, United States Code.
          (2) Penalty for violation.--Any satellite carrier 
        that knowingly and willfully provides the signals of 
        television stations to subscribers in violation of this 
        subsection shall be liable for a forfeiture penalty 
        under section 503 in the amount of $50,000 for each 
        violation or each day of a continuing violation.
  (b) Extension of Network Nonduplication, Syndicated 
Exclusivity, and Sports Blackout to Satellite Retransmission.--
          (1) Extension of protections.--Within 45 days after 
        the date of the enactment of the Satellite Home Viewer 
        Improvement Act of 1999, the Commission shall commence 
        a single rulemaking proceeding to establish regulations 
        that--
                  (A) apply network nonduplication protection 
                (47 CFR 76.92) syndicated exclusivity 
                protection (47 CFR 76.151), and sports blackout 
                protection (47 CFR 76.67) to the retransmission 
                of the signals of nationally distributed 
                superstations by satellite carriers to 
                subscribers; and
                  (B) to the extent technically feasible and 
                not economically prohibitive, apply sports 
                blackout protection (47 CFR 76.67) to the 
                retransmission of the signals of network 
                stations by satellite carriers to subscribers.
          (2) Deadline for action.--The Commission shall 
        complete all actions necessary to prescribe regulations 
        required by this section so that the regulations shall 
        become effective within 1 year after such date of 
        enactment.
  (c) Eligibility for Retransmission of Distant Analog 
Signals.--
          (1) Signal standard for satellite carrier purposes.--
        For the purposes of identifying an unserved household 
        under section 119(d)(10) of title 17, United States 
        Code, within 1 year after the date of the enactment of 
        the Satellite Home Viewer Improvement Act of 1999, the 
        Commission shall conclude an inquiry to evaluate all 
        possible standards and factors for determining 
        eligibility for retransmissions of the signals of 
        network stations, and, if appropriate--
                  (A) recommend modifications to the Grade B 
                intensity standard for analog signals set forth 
                in section 73.683(a) of its regulations (47 CFR 
                73.683(a)), or recommend alternative standards 
                or factors for purposes of determining such 
                eligibility; and
                  (B) make a further recommendation relating to 
                an appropriate standard for digital signals.
          (2) Waivers.--A subscriber who is denied the 
        retransmission of a signal of a network station under 
        section 119 of title 17, United States Code, may 
        request a waiver from such denial by submitting a 
        request, through such subscriber's satellite carrier, 
        to the network station asserting that the 
        retransmission is prohibited. The network station shall 
        accept or reject a subscriber's request for a waiver 
        within 30 days after receipt of the request. The 
        subscriber shall be permitted to receive such 
        retransmission under section 119(d)(10)(B) of title 17, 
        United States Code, if such station agrees to the 
        waiver request and files with the satellite carrier a 
        written waiver with respect to that subscriber allowing 
        the subscriber to receive such retransmission. If a 
        television network station fails to accept or reject a 
        subscriber's request for a waiver within the 30-day 
        period after receipt of the request, that station shall 
        be deemed to agree to the waiver request and have filed 
        such written waiver.
          (3) Establishment of improved predictive model 
        required.--Within 180 days after the date of the 
        enactment of the Satellite Home Viewer Improvement Act 
        of 1999, the Commission shall take all actions 
        necessary, including any reconsideration, to develop 
        and prescribe by rule a point-to-point predictive model 
        for reliably and presumptively determining the ability 
        of individual locations to receive signals in 
        accordance with the signal intensity standard in effect 
        under section 119(d)(10)(A) of title 17, United States 
        Code. In prescribing such model, the Commission shall 
        rely on the Individual Location Longley-Rice model set 
        forth by the Federal Communications Commission in 
        Docket No. 98-201 and ensure that such model takes into 
        account terrain, building structures, and other land 
        cover variations. The Commission shall establish 
        procedures for the continued refinement in the 
        application of the model by the use of additional data 
        as it becomes available.
          (4) Objective verification.--
                  (A) In general.--If a subscriber's request 
                for a waiver under paragraph (2) is rejected 
                and the subscriber submits to the subscriber's 
                satellite carrier a request for a test 
                verifying the subscriber's inability to receive 
                a signal that meets the signal intensity 
                standard in effect under section 119(d)(10)(A) 
                of title 17, United States Code, the satellite 
                carrier and the network station or stations 
                asserting that the retransmission is prohibited 
                with respect to that subscriber shall select a 
                qualified and independent person to conduct a 
                test in accordance with section 73.686(d) of 
                its regulations (47 CFR 73.686(d)), or any 
                successor regulation. Such test shall be 
                conducted within 30 days after the date the 
                subscriber submits a request for the test. If 
                the written findings and conclusions of a test 
                conducted in accordance with such section (or 
                any successor regulation) demonstrate that the 
                subscriber does not receive a signal that meets 
                or exceeds the signal intensity standard in 
                effect under section 119(d)(10)(A) of title 17, 
                United States Code, the subscriber shall not be 
                denied the retransmission of a signal of a 
                network station under section 119 of title 17, 
                United States Code.
                  (B) Designation of tester and allocation of 
                costs.--If the satellite carrier and the 
                network station or stations asserting that the 
                retransmission is prohibited are unable to 
                agree on such a person to conduct the test, the 
                person shall be designated by an independent 
                and neutral entity designated by the Commission 
                by rule. Unless the satellite carrier and the 
                network station or stations otherwise agree, 
                the costs of conducting the test under this 
                paragraph shall be borne by the satellite 
                carrier, if the station's signal meets or 
                exceeds the signal intensity standard in effect 
                under section 119(d)(10)(A) of title 17, United 
                States Code, or by the network station, if its 
                signal fails to meet or exceed such standard.
                  (C) Avoidance of undue burden.-- Commission 
                regulations prescribed under this paragraph 
                shall seek to avoid any undue burden on any 
                party.
                  (D) Reduction of verification burdens.--
                Within one year after the date of enactment of 
                the Satellite Home Viewer Extension and Rural 
                Consumer Access to Digital Television Act of 
                2004, the Commission shall by rule exempt from 
                the verification requirements of subparagraph 
                (A) any request for a test made by a subscriber 
                to a satellite carrier--
                          (i) to whom the retransmission of the 
                        signals of local broadcast stations is 
                        available under section 122 of title 
                        17, United States Code, from such 
                        carrier; or
                          (ii) for whom the predictive model 
                        required by paragraph (3) predicts a 
                        signal intensity that exceeds the 
                        signal intensity standard in effect 
                        under section 119(d)(11)(A) of such 
                        title by such number of decibels as the 
                        Commission specifies in such rule.
                  (E) Exception.--Notwithstanding any provision 
                of this Act, this section does not prohibit a 
                subscriber who is predicted to receive a signal 
                that meets or exceeds such signal intensity 
                standard from conducting a signal strength test 
                at the subscriber's own expense for the purpose 
                of determining their eligibility for distant 
                signals under this section.
          (5) Definition.--Notwithstanding subsection [(d)(4),] 
        (e)(4), for purposes of paragraphs (2) and (4) of this 
        subsection, the term ``satellite carrier'' includes a 
        distributor (as defined in section 119(d)(1) of title 
        17, United States Code), but only if the satellite 
        distributor's relationship with the subscriber includes 
        billing, collection, service activation, and service 
        deactivation.
  (d) Eligibility for Retransmission of Distant Digital 
Signals.--
          (1) In general.--For purposes of identifying an 
        unserved digital household under section 119(d)(10) of 
        title 17, United States Code, within 2 years after the 
        date of enactment of the Satellite Home Viewer 
        Extension and Rural Consumer Access to Digital 
        Television Act of 2004, the Commission shall conclude a 
        proceeding--
                  (A) to determine the appropriate signal 
                standard for determining eligibility for 
                retransmissions of the digital signals of 
                network stations;
                  (B) to develop and prescribe by rule a point-
                to-point predictive model for reliably and 
                presumptively determining the ability of 
                individual locations to receive digital signals 
                in accordance with the signal standard 
                determined under subparagraph (A), and in 
                prescribing that model, the Commission shall--
                          (i) ensure that it takes into account 
                        terrain, building structures, and other 
                        land cover variations;
                          (ii) establish procedures for the 
                        continued refinement in the application 
                        of the model by the use of additional 
                        data as it becomes available; and
                          (iii) provide that any network 
                        station that would be expected to serve 
                        a household but is not serving that 
                        household due to noneconomic 
                        circumstances beyond its control will 
                        be deemed to be serving such a 
                        household; and
                  (C) to establish appropriate waiver and 
                objective verification procedures, similar to 
                the procedures under paragraphs (2) and (4) of 
                subsection (c), to apply to unserved digital 
                household determinations made pursuant to the 
                model.
          (2) Preservation of existing eligibility.--Until the 
        Commission completes the proceeding required by 
        paragraph (1), an unserved household for purposes of 
        section 119(d)(10) of title 17, United States Code, 
        with respect to the digital signals of a particular 
        network, is a household that is eligible to receive 
        retransmission of analog signals pursuant to subsection 
        (c) of this section and section 119(a) of title 17, 
        United States Code.
          (3) Local-to-local market requirement.--For purposes 
        of applying the rule prescribed by the Commission under 
        paragraph (1) only, a satellite carrier may not 
        retransmit the digital signals of a network station in 
        any local market in which it does not provide secondary 
        transmission to subscribers located within that local 
        market of the analog signals of television broadcast 
        stations located within that local market under section 
        338(a)(1) of this Act.
          (4) Notices.--
                  (A) By carrier to customers to whom digital 
                signal will be provided.--A satellite carrier 
                providing a distant digital signal pursuant to 
                this section shall notify its customers in a 
                clear and conspicuous manner before offering 
                the distant digital signal that it will cease 
                providing that digital signal within 120 days 
                after the date on which it is notified that the 
                household ceases to be an unserved household 
                with respect to digital signals.
                  (B) By network station to satellite 
                carrier.--Within not more than 48 hours after 
                filing with the Commission any license 
                application that will result in any household 
                ceasing to be an unserved digital household, a 
                network station shall notify all satellite 
                carriers of the filing.
                  (C) By satellite carriers to network 
                stations.--
                          (i) Response to station notice.--
                        Within 60 days after receiving 
                        notification under subparagraph (B) 
                        from a network station, a satellite 
                        carrier shall transmit a list 
                        identifying (by name and street 
                        address, including county and zip code) 
                        all subscribers to which the satellite 
                        carrier provides a distant digital 
                        signal in the local market of the 
                        network station whose service will be 
                        terminated under paragraph (5).
                          (ii) Completion of commission 
                        proceeding.--Within 120 days after the 
                        Commission completes the proceeding 
                        required by paragraph (1), each 
                        satellite carrier shall transmit a 
                        comprehensive list to the network 
                        stations that, as a result of the 
                        proceeding, are providing a digital 
                        signal to the satellite carrier's 
                        subscribers, containing the information 
                        required by clause (i).
                  (D) List used only for compliance.--It is 
                unlawful for any person to use a list provided 
                under this paragraph, or information derived 
                from such a list, for any purpose other than 
                compliance with the requirements of this 
                section.
          (5) Termination of carriage to households that lose 
        unserved status.--Within 120 days after the date on 
        which a satellite carrier receives notice under 
        paragraph (4)(B), it shall cease providing the distant 
        digital signal to subscribers in households, determined 
        on the basis of the notice, that will cease to be 
        unserved households with respect to digital signals. 
        Within 120 days after the date on which the Commission 
        completes the proceeding required by paragraph (1) (or 
        on such date as the Commission in that proceeding may 
        otherwise specify), a satellite carrier shall cease 
        providing distant digital signals to households 
        required as a result of the Commission's action.
          (6) Enforcement.--
                  (A) In general.--Compliance with this section 
                shall be enforced under titles IV and V of this 
                Act.
                  (B) Special rule for satellite carrier list 
                requirement.--If a satellite carrier fails to 
                provide a complete list of subscribers in 
                accordance with the requirements of paragraph 
                (4)(C)(i), then each household with respect to 
                which such failure occurs shall constitute a 
                separate violation.
                  (C) Special rule for terminations.--If a 
                satellite carrier providing a distant digital 
                signal pursuant to this section fails to comply 
                with the requirements of paragraph (5), then--
                          (i) each household with respect to 
                        which the satellite carrier fails to 
                        comply shall be considered to be a 
                        separate violation for purposes of 
                        section 503(b) of this Act; and
                          (ii) each day of a continuing 
                        violation shall be considered to be a 
                        separate violation.
          (7) Application of section 338.--Nothing in this 
        subsection affects the obligations of a satellite 
        carrier under section 338(a) of this Act.
  [(d)] (e) Definitions.--For the purposes of this section:
          (1) Local market.--The term ``local market'' has the 
        meaning given that term under section 122( j) of title 
        17, United States Code.
          (2) Nationally distributed superstation.--The term 
        ``nationally distributed superstation'' means a 
        television broadcast station, licensed by the 
        Commission, that--
                  (A) is not owned or operated by or affiliated 
                with a television network that, as of January 
                1, 1995, offered interconnected program service 
                on a regular basis for 15 or more hours per 
                week to at least 25 affiliated television 
                licensees in 10 or more States;
                  (B) on May 1, 1991, was retransmitted by a 
                satellite carrier and was not a network station 
                at that time; and
                  (C) was, as of July 1, 1998, retransmitted by 
                a satellite carrier under the statutory license 
                of section 119 of title 17, United States Code.
          (3) Network station.--The term ``network station'' 
        has the meaning given such term under section 119(d) of 
        title 17, United States Code.
          (4) Satellite carrier.--The term ``satellite 
        carrier'' has the meaning given such term under section 
        119(d) of title 17, United States Code.
          (5) Television network.--The term ``television 
        network'' means a television network in the United 
        States which offers an interconnected program service 
        on a regular basis for 15 or more hours per week to at 
        least 25 affiliated broadcast stations in 10 or more 
        States.

SEC. 340. CARRIAGE OF TELEVISION SIGNALS TO CERTAIN SUBSCRIBERS.

  (a) In General.--A multichannel video programming distributor 
may elect to retransmit, to subscribers in an eligible county--
          (1) any television broadcast stations that are 
        located in the State in which the county is located and 
        that any multichannel video programming distributor was 
        retransmitting to subscribers in the county on January 
        1, 2004; or
          (2) up to 2 television broadcast stations located in 
        the State in which the county is located, if the number 
        of television broadcast stations that the multichannel 
        video programming distributor is authorized to carry 
        under paragraph (1) is less than 3.
  (b) Deemed Significantly Viewed.--Any station described in 
subsection (a) is deemed to be significantly viewed in the 
eligible county within the meaning of section 76.54 of the 
Commission's regulations (47 C.F.R. 76.54).
  (c) Definition of Eligible County.--For purposes of this 
subsection, the term ``eligible county'' means any 1 of 4 
counties that--
          (1) are in a single State;
          (2) on January 1, 2004, were in local markets 
        principally comprised of counties in another State; and
          (3) had a combined total of 41,340 television 
        households according to the U.S. Television Household 
        Estimates by Nielsen Media Research for 2003-2004.
  (d) Limitation.--Carriage of a station under this section 
shall be at the option of the multichannel video programming 
distributor.

           *       *       *       *       *       *       *

                     TITLE VI--CABLE COMMUNICATIONS

                   PART IV. MISCELLANEOUS PROVISIONS

SEC. 631. PROTECTION OF SUBSCRIBER PRIVACY.

                            [47 U.S.C. 551]

  (a)(1) At the time of entering into an agreement to provide 
any cable service or other service to a subscriber and at least 
once a year thereafter, a cable operator shall provide notice 
in the form of a separate, written statement to such subscriber 
which clearly and conspicuously informs the subscriber of--
          (A) the nature of personally identifiable information 
        collected or to be collected with respect to the 
        subscriber and the nature of the use of such 
        information;
          (B) the nature, frequency, and purpose of any 
        disclosure which may be made of such information, 
        including an identification of the types of persons to 
        whom the disclosure may be made;
          (C) the period during which such information will be 
        maintained by the cable operator;
          (D) the times and place at which the subscriber may 
        have access to such information in accordance with 
        subsection (d); and
          (E) the limitations provided by this section with 
        respect to the collection and disclosure of information 
        by a cable operator and the right of the subscriber 
        under subsections (f) and (h) to enforce such 
        limitations.
In the case of subscribers who have entered into such an 
agreement before the effective date of this section, such 
notice shall be provided within 180 days of such date and at 
least once a year thereafter.
  (2) For purposes of this section, other than subsection (h)--
          (A) the term ``personally identifiable information'' 
        does not include any record of aggregate data which 
        does not identify particular persons;
          (B) the term ``other service'' includes any wire or 
        radio communications service provided using any of the 
        facilities of a cable operator that are used in the 
        provision of cable service; and
          (C) the term ``cable operator'' includes, in addition 
        to persons within the definition of cable operator in 
        section 602, any person who (i) is owned or controlled 
        by, or under common ownership or control with, a cable 
        operator, and (ii) provides any wire or radio 
        communications service.
  (b)(1) Except as provided in paragraph (2), a cable operator 
shall not use the cable system to collect personally 
identifiable information concerning any subscriber without the 
prior written or electronic consent of the subscriber 
concerned.
  (2) A cable operator may use the cable system to collect such 
information in order to--
          (A) obtain information necessary to render a cable 
        service or other service provided by the cable operator 
        to the subscriber; or
          (B) detect unauthorized reception of cable 
        communications.
  (c)(1) Except as provided in paragraph (2), a cable operator 
shall not disclose personally identifiable information 
concerning any subscriber without the prior written or 
electronic consent of the subscriber concerned and shall take 
such actions as are necessary to prevent unauthorized access to 
such information by a person other than the subscriber or cable 
operator.
  (2) A cable operator may disclose such information if the 
disclosure is--
          (A) necessary to render, or conduct a legitimate 
        business activity related to, a cable service or other 
        service provided by the cable operator to the 
        subscriber;
          (B) subject to subsection (h), made pursuant to a 
        court order authorizing such disclosure, if the 
        subscriber is notified of such order by the person to 
        whom the order is directed;
          (C) a disclosure of the names and addresses of 
        subscribers to any cable service or other service, if--
                  (i) the cable operator has provided the 
                subscriber the opportunity to prohibit or limit 
                such disclosure, and
                  (ii) the disclosure does not reveal, directly 
                or indirectly, the--
                          (I) extent of any viewing or other 
                        use by the subscriber of a cable 
                        service or other service provided by 
                        the cable operator, or
                          (II) the nature of any transaction 
                        made by the subscriber over the cable 
                        system of the cable operator; or
          (D) to a government entity as authorized under 
        chapters 119, 121, or 206 of title 18, United States 
        Code, except that such disclosure shall not include 
        records revealing cable subscriber selection of video 
        programming from a cable operator.
  (d) A cable subscriber shall be provided access to all 
personally identifiable information regarding that subscriber 
which is collected and maintained by a cable operator. Such 
information shall be made available to the subscriber at 
reasonable times and at a convenient place designated by such 
cable operator. A cable subscriber shall be provided reasonable 
opportunity to correct any error in such information.
  (e) A cable operator shall destroy personally identifiable 
information if the information is no longer necessary for the 
purpose for which it was collected and there are no pending 
requests or orders for access to such information under 
subsection (d) or pursuant to a court order.
  (f)(1) Any person aggrieved by any act of a cable operator in 
violation of this section may bring a civil action in a United 
States district court.
  (2) The court may award--
          (A) actual damages but not less than liquidated 
        damages computed at the rate of $100 a day for each day 
        of violation or $1,000, whichever is higher;
          (B) punitive damages; and
          (C) reasonable attorneys' fees and other litigation 
        costs reasonably incurred.
  (3) The remedy provided by this section shall be in addition 
to any other lawful remedy available to a cable subscriber.
  (g) Nothing in this title shall be construed to prohibit any 
State or any franchising authority from enacting or enforcing 
laws consistent with this section for the protection of 
subscriber privacy.
  (h) Except as provided in subsection (c)(2)(D), a 
governmental entity may obtain personally identifiable 
information concerning a cable subscriber pursuant to a court 
order only if, in the court proceeding relevant to such court 
order--
          (1) such entity offers clear and convincing evidence 
        that the subject of the information is reasonably 
        suspected of engaging in criminal activity and that the 
        information sought would be material evidence in the 
        case; and
          (2) the subject of the information is afforded the 
        opportunity to appear and contest such entity's claim.
  (i) Application to DBS Providers.--
          (1) In general.--The provisions of this section shall 
        apply to satellite carriers in the same way and to the 
        same extent as they apply to cable operators.
          (2) Special rule.--For the purpose of applying the 
        last sentence of subsection (a)(1) to a satellite 
        carrier, the phrase ``the date of enactment of the 
        Satellite Home Viewer Extension and Rural Consumer 
        Access to Digital Television Act of 2004,'' shall be 
        substituted for the phrase ``the effective date of this 
        section,''.
          (3) Satellite carrier.--In this subsection, the term 
        ``satellite carrier'' means any person using the 
        facilities of a satellite or satellite service licensed 
        by the Federal Communications Commission and operating 
        in the Fixed-Satellite Service, or the Direct Broadcast 
        Satellite Service, under part 25 of title 47 of the 
        Code of Federal Regulations to establish and operate a 
        channel of communications for distribution of signals, 
        and owning or leasing a capacity or service on a 
        satellite in order to provide such distribution.

                                  
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