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[House Report 106-79]
[From the U.S. Government Publishing Office]

106th Congress                                             Rept. 106-79
                        HOUSE OF REPRESENTATIVES

 1st Session                                                     Part 1
_______________________________________________________________________

 
           SATELLITE COMPETITION AND CONSUMER PROTECTION ACT

_______________________________________________________________________

                 April 7, 1999.--Ordered to be printed

                                _______
                                

  Mr. Bliley, from the Committee on Commerce, submitted the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 851]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Commerce, to whom was referred the bill 
(H.R. 851) to require the Federal Communications Commission to 
establish improved predictive models for determining the 
availability of television broadcast signals, having considered 
the same, report favorably thereon with an amendment and 
recommend that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Amendment........................................................     2
Purpose and Summary..............................................    11
Background and Need for Legislation..............................    11
Hearings.........................................................    15
Committee Consideration..........................................    15
Rollcall Votes...................................................    15
Committee Oversight Findings.....................................    16
Committee on Government Reform Oversight Findings................    16
New Budget Authority, Entitlement Authority, and Tax Expenditures    16
Committee Cost Estimate..........................................    16
Congressional Budget Office Estimate.............................    16
Federal Mandates Statement.......................................    21
Advisory Committee Statement.....................................    21
Constitutional Authority Statement...............................    21
Applicability to Legislative Branch..............................    21
Section-by-Section Analysis of the Legislation...................    21
Changes in Existing Law Made by the Bill, as Reported............    27
Additional Views.................................................    57

                               Amendment

  The amendment is as follows:
  Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Satellite Competition and Consumer 
Protection Act''.

         TITLE I--AMENDMENTS TO THE COMMUNICATIONS ACT OF 1934

SEC. 101. RETRANSMISSION CONSENT.

  Section 325(b) of the Communications Act of 1934 (47 U.S.C. 325(b)) 
is amended--
          (1) by amending paragraphs (1) and (2) to read as follows:
  ``(b)(1) No cable system or other multichannel video programming 
distributor shall retransmit the signal of a television broadcast 
station, or any part thereof, except--
          ``(A) with the express authority of the originating station;
          ``(B) pursuant to 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) pursuant to section 338, in the case of a station 
        electing, in accordance with this subsection, to assert the 
        right to carriage under such section.
  ``(2) The provisions of 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 
                compulsory license of section 119 of title 17, United 
                States Code; and
                  ``(iii) the satellite carrier complies with all 
                network nonduplication, syndicated exclusivity, and 
                sports blackout rules adopted by the Commission 
                pursuant to section 712 of this Act;
          ``(C) until 7 months after the date of enactment of the 
        Satellite Competition and Consumer Protection Act, to 
        retransmission of the signal of a television network station 
        directly to a satellite antenna, if the subscriber receiving 
        the signal is located in an area outside the local market of 
        such station; or
          ``(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 
                compulsory license of section 119 of title 17, United 
                States Code.'';
          (2) by adding at the end of paragraph (3) the following new 
        subparagraph:
  ``(C) Within 45 days after the date of enactment of the Satellite 
Competition and Consumer Protection Act, 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 one 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) prohibit television broadcast stations that provide 
        retransmission consent from engaging in discriminatory 
        practices, understandings, arrangements, and activities, 
        including exclusive contracts for carriage, that prevent a 
        satellite carrier from obtaining retransmission consent from 
        such stations.'';
          (3) in paragraph (4), by adding at the end the following new 
        sentence: ``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, the provisions of section 338 shall not apply to the 
        carriage of the signal of such station by such satellite 
        carrier.'';
          (4) in paragraph (5), by striking ``614 or 615'' and 
        inserting ``338, 614, or 615''; and
          (5) by adding at the end the following new paragraph:
  ``(7) For purposes of this subsection, the term `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.''.

SEC. 102. MUST-CARRY FOR SATELLITE CARRIERS RETRANSMITTING TELEVISION 
                    BROADCAST SIGNALS.

  Title III of the Communications Act of 1934 is amended by inserting 
after section 337 (47 U.S.C. 337) the following new section:

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

  ``(a) Carriage Obligations.--
          ``(1) In general.--Subject to the limitations of subparagraph 
        (2), each satellite carrier providing 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 all television broadcast 
        stations located within that local market, subject to section 
        325(b), by retransmitting thesignal or signals of such stations 
that are identified by Commission regulations for purposes of this 
section.
          ``(2) Effective date.--No satellite carrier shall be required 
        to carry local television broadcast stations under paragraph 
        (1) until January 1, 2002.
  ``(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 1 
        local commercial television broadcast station in a single local 
        market that is affiliated with a particular television network.
          ``(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 this section, such 
        station shall notify the carrier, in writing, of the alleged 
        failure and identify its reasons for believing that the 
        satellite carrier is obligated to carry upon request the signal 
        of such station or has otherwise failed to comply with other 
        requirements of this section. The satellite carrier shall, 
        within 30 days of such written notification, respond in writing 
        to such notification and either begin carrying the signal of 
        such station in accordance with the terms requested or state 
        its reasons for believing that it is not obligated to carry 
        such signal or is in compliance with other requirements of this 
        section, as the case may be. A local television broadcast 
        station that is denied carriage in accordance with this section 
        by a satellite carrier or is otherwise harmed by a response by 
        a satellite carrier that it is in compliance with other 
        requirements of this section may obtain review of such denial 
        or response by filing a compliant 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 
        subparagraph (A) 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 subparagraph (A), the 
        Commission shall determine whether the satellite carrier has 
        met its obligations under this chapter. If the Commission 
        determines that the satellite carrier has failed to meet such 
        obligations, the Commission shall order the satellite carrier, 
        in the case of an obligation to carry a station, to begin 
        carriage of the station and to continue such carriage for 
atleast 12 months, or, in the case of the failure to meet other 
obligations under this section, shall take other appropriate remedial 
action. If the Commission determines that the satellite carrier has 
fully met the requirements of this chapter, the Commission shall 
dismiss the complaint.
  ``(g) Regulations by Commission.--Within 180 days after the date of 
enactment of this section, the Commission shall, following a rulemaking 
proceeding, issue regulations implementing this section.
  ``(h) Definitions.--As used in this section:
          ``(1) Subscriber.--The term `subscriber' means an entity that 
        receives a secondary transmission service by means of a 
        secondary transmission from a satellite and pays a fee for the 
        service, directly or indirectly, to the satellite carrier or to 
        a distributor.
          ``(2) 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.
          ``(3) 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.
          ``(4) Television broadcast station.--The term `television 
        broadcast station' has the meaning given such term in section 
        325(b)(7).
          ``(5) Secondary transmission.--The term `secondary 
        transmission' has the meaning given such term in section 119(c) 
        of title 17, United States Code.''.

SEC. 103. NONDUPLICATION OF PROGRAMMING BROADCAST BY LOCAL STATIONS.

  Section 712 of the Communications Act of 1934 (47 U.S.C. 612) is 
amended to read as follows:

``SEC. 712. NONDUPLICATION OF PROGRAMMING BROADCAST BY LOCAL STATIONS.

  ``(a) Extension of Network Nonduplication, Syndicated Exclusivity, 
and Sports Blackout to Satellite Retransmission.--Within 45 days after 
the date of enactment of the Satellite Competition and Consumer 
Protection Act, the Commission shall commence a single rulemaking 
proceeding to establish regulations that apply network nonduplication 
protection, syndicated exclusivity protection, and sports blackout 
protection to the retransmission of broadcast signals by satellite 
carriers to subscribers. To the extent possible consistent with 
subsection (b), such regulations shall provide the same degree of 
protection against retransmission of broadcast signals as is provided 
by the network nonduplication (47 C.F.R. 76.92), syndicated exclusivity 
(47 C.F.R. 151), and sports blackout (47 C.F.R. 76.67) rules applicable 
to cable television systems. 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.
  ``(b) Establishment of Network Nonduplication Boundaries.--
          ``(1) Establishment of signal standard for network 
        nonduplication required.--The Commission shall establish a 
        signal intensity standard for purposes of determining the 
        network nonduplication rights of local television broadcast 
        stations. Until revised pursuant to subsection (c), such 
        standard shall be the Grade B field strength standard 
        prescribed by the Commission in section 73.683 of the 
        Commission's regulations (47 C.F.R. 73.683). For purposes of 
        this section, the standard established under this paragraph is 
        referred to as the `Network Nonduplication Signal Standard'.
          ``(2) Establishment of improved predictive model required.--
        Within 180 days after the date of enactment of the Satellite 
        Competition and Consumer Protection Act, 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 
        Network Nonduplication Signal Standard. In prescribing such 
        model, the Commission shall 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. For purposes of 
        this section, such model is referred to as the `Network 
        Nonduplication Reception Model', and the area encompassing 
        locations that are predicted to have the ability to receive 
        such a signal of a particular broadcast station is referred to 
        as that station's `Reception Model Area'.
          ``(3) Network nonduplication.--The network nonduplication 
        regulations required under subsection (a) shall allow a 
        television network station to assert nonduplication rights as 
        follows:
                  ``(A) If a satellite carrier is retransmitting that 
                station, or any other television broadcast stations 
                located in the same local market, to subscribers 
                located in that station's local market, the television 
                network station may assert nonduplication rights 
                against the satellite carrier throughout the area 
                within which that station may assert such rights under 
                the rules applicable to cable television systems (47 
                C.F.R. 76.92), except as provided in subparagraph (C).
                  ``(B) If a satellite carrier is not retransmitting 
                any television broadcast stations located in the 
                television network station's local market to 
                subscribers located in such market, the television 
                network station may assert nonduplication rights 
                against the satellite carrier in the geographic area 
                that is within such station's Reception Model Area, but 
                such geographic area shall not extend beyond the local 
                market of such station.
                  ``(C) If there are 2 or more television network 
                stations that are each affiliates of a single 
                television network within the same local market, 
                neither such station may assert under subparagraph (A) 
                nonduplication rights against a satellite carrier in an 
                area that is outside the Reception Model Area of that 
                station.
          ``(4) Waivers.--The network nonduplication protection 
        described in paragraph (3) shall not apply to a subscriber who 
        files with the satellite carrier a written waiver with respect 
        to that subscriber obtained from a television network station 
        allowing the subscriber to receive satellite retransmission of 
        another network station affiliated with that same network. The 
        television network station shall accept or reject a 
        subscriber's request for a waiver within 30 days after receipt 
        of the request. The television network station and the 
        satellite carrier shall maintain a file available to the public 
        that contains such waiver requests and the acceptances and 
        rejections thereof.
          ``(5) Objective verification.--If a subscriber submits a 
        petition to the Commission or an entity designated by the 
        Commission by rule--
                  ``(A) that alleges that such subscriber does not 
                receive a signal that meets or exceeds the Network 
                Nonduplication Signal Standard; and
                  ``(B) includes a processing fee in an amount 
                prescribed by regulation to recover the cost of 
                administering the provisions of this paragraph;
        the network nonduplication rights described in paragraph (3) 
        shall not apply to that subscriber unless such station submits 
        to the Commission or such entity and to the subscriber the 
        written findings and conclusions of a test conducted in 
        accordance with the provisions of section 73.686(d) of title 
        47, Code of Federal Regulations, or any successor regulation, 
        demonstrating that the subscriber receives a signal that meets 
        or exceeds the Network Nonduplication Signal Standard. A 
        subscriber is required to file a waiver request under paragraph 
        (4) before filing a petition under this paragraph. A subscriber 
        may not be required to bear any portion of the cost of such 
        test.
          ``(6) Recreational vehicle location.--In the case of a 
        subscriber to a satellite carrier who has installed satellite 
        reception equipment in a recreational vehicle, and who has 
        permitted any television network station seeking to assert 
        network nonduplication rights to verify the motor vehicle 
        registration, license, and proof of ownership of such vehicle, 
        the subscriber shall be considered to be outside the local 
        market and Reception Model Area of such station. For purposes 
        of this paragraph, the term `recreational vehicle' does not 
        include any residential manufactured home, as defined in 
        section 603(6) of the National Manufactured Housing 
        Construction and Safety Standards Act of 1974 (42 U.S.C. 
        5402(6)).
  ``(c) Review and Revision of Standards and Model.--
          ``(1) Ongoing inquiry required.--Not later than 2 years after 
        the date of enactment of the Satellite Competition and Consumer 
        Protection Act, the Commission shall conduct an inquiry of the 
        extent to which the Network Nonduplication Signal Standard, the 
        Network Nonduplication Reception Model, and the Reception Model 
        Areas of television stations are adequate to reliably measure 
        the ability of consumers to receive an acceptable over-the-air 
        television broadcast signal.
          ``(2) Data to be considered.--In conducting the inquiry 
        required by paragraph (1), the Commission shall consider as 
        evidence that consumers are not receiving a signal of the 
        quality described in such paragraph--
                  ``(A) the number of subscribers requesting waivers 
                under subsection (b)(4), and the number of waivers that 
                are denied;
                  ``(B) the number of subscribers submitting petitions 
                under subsection (b)(5), and the number of such 
                petitions that are granted;
                  ``(C) the results of any consumer research study that 
                may be undertaken to carry out the purposes of this 
                section; and
                  ``(D) the extent to which consumers are not legally 
                entitled to install broadcast reception devices assumed 
                in the Commission's standard.
          ``(3) Report and action.--The Commission shall submit to the 
        Congress a report on the inquiry required by this subsection 
        not later than the end of the 2-year period described in 
        paragraph (1). The Commission shall complete any actions 
        necessary to revise the Network Nonduplication Signal Standard, 
        the Network Nonduplication Reception Model, and the Reception 
        Model Areas of television stations in accordance with the 
        findings of such inquiry not later than 6 months after the end 
        of such 2-year period.
          ``(4) Data submission.--The Commission shall prescribe by 
        rule the data required to be submitted by television broadcast 
        stations and by satellite carriers to the Commission or such 
        designated entity to carry out this subsection, and the format 
        for submission of such data.''.

SEC. 104. CONSENT OF MEMBERSHIP TO RETRANSMISSION OF PUBLIC 
                    BROADCASTING SERVICE SATELLITE FEED.

  Section 396 of the Communications Act of 1934 (47 U.S.C. 396) is 
amended by adding at the end the following new subsection:
  ``(n) The Public Broadcasting Service shall certify to the Board on 
an annual basis that a majority of its membership supports or does not 
support the secondary transmission of the Public Broadcasting Service 
satellite feed, and provide notice to each satellite carrier carrying 
such feed of such certification.''.

SEC. 105. INQUIRY ON RURAL SERVICE REQUIRED.

  (a) Inquiry Required.--Within 180 days after the enactment of this 
section, the National Telecommunications and Information Administration 
shall complete an inquiry into the availability of local television 
broadcast signals in small and rural markets as part of a service that 
competes with, or supplements, video programming delivered by satellite 
carriers or cable operators. The Administration shall submit to the 
Committee on Commerce of the House of Representatives and the Committee 
on Commerce, Science, and Transportation of the Senate a report on the 
results of such inquiry.
  (b) Analysis Required.--The inquiry under subsection (a) shall 
include an analysis of--
          (1) the technological capability of dual satellite dish 
        technology to receive effectively over-the-air broadcast 
        transmissions from the local market, the availability of such 
        capability in small and rural markets and the affordability of 
        such capability;
          (2) the technological capability (including interference), 
        availability, and affordability of wireless cable (or 
        terrestrial wireless) delivery of local broadcast stations, 
        including the feasibility and desirability of the expedited 
        licensing of such competitive wireless technologies for rural 
        and small markets; and
          (3) the technological capability, availability, and 
        affordability of a broadcast-only basic tier of cable service.

SEC. 106. DEFINITIONS.

  Section 3 of the Communications Act of 1934 (47 U.S.C. 153) is 
amended--
          (1) by redesignating--
                  (A) paragraphs (49) through (52) as paragraphs (52) 
                through (55), respectively;
                  (B) paragraphs (39) through (48) as paragraphs (41) 
                through (50), respectively; and
                  (C) paragraphs (27) through (38) as paragraph (28) 
                through (39), respectively;
          (2) by inserting after paragraph (26) the following new 
        paragraph:
          ``(27) 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 DMA Market 
                and Demographic Report.'';
          (3) by inserting after paragraph (39) (as redesignated by 
        paragraph (1) of this section) the following new paragraph:
          ``(40) Satellite carrier.--The term `satellite carrier' means 
        an entity that uses the facilities of a satellite or satellite 
        service licensed by the 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 this Act.''; and
          (3) by inserting after paragraph (50) (as redesignated by 
        paragraph (1) of this section) the following new paragraph:
          ``(51) Television network; television network station.--
                  ``(A) 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.
                  ``(B) Television network station.--The term 
                `television network station' means a television 
                broadcast station that is owned or operated by, or 
                affiliated with, a television network.''.

SEC. 107. COMPLETION OF BIENNIAL REGULATORY REVIEW.

  Within 180 days after the date of enactment of this Act, the 
Commission shall complete the biennial review required by section 
202(h) of the Telecommunications Act of 1996.

          TITLE II--AMENDMENTS TO TITLE 17, UNITED STATES CODE

SEC. 201. LIMITATIONS ON EXCLUSIVE RIGHTS; SECONDARY TRANSMISSIONS BY 
                    SATELLITE CARRIERS WITHIN LOCAL MARKETS.

  (a) In General.--Section 119 of title 17, United States Code, is 
amended to read as follows:

``Sec. 119. Limitations on exclusive rights; Secondary transmissions by 
                    satellite carriers

  ``(a) Secondary Transmissions of Television Broadcast Stations by 
Satellite Carriers.--
          ``(1) Statutory license.--Subject to the provisions of 
        paragraphs (2), (3), (4), and (5) of this subsection and 
        section 114(d), a secondary transmission that is in compliance 
        with the rules, regulations, and authorizations of the Federal 
        Communications Commission of a primary transmission made by a 
        television broadcast station and embodying a performance or 
        display of a work may have a statutory license under this 
        section if the satellite carrier makes a direct or indirect 
        charge to subscribers for the secondary transmission or to a 
        distributor that has contracted with the satellite carrier for 
        direct or indirect delivery of the secondary transmission. For 
        purposes of this section, the Public Broadcasting Service 
        satellite feed shall be considered a primary transmission made 
        by a television broadcast station that is in compliance with 
        the rules, regulations, and authorizations of the Federal 
        Communications Commission, except that subsequent to--
                  ``(A) the date when a majority of subscribers to 
                satellite carriers are able to receive the signal of at 
                least one noncommercial educational television 
                broadcast station from their satellite carrier within 
                such stations' local market, or
                  ``(B) 2 years after the effective date of the 
                Satellite Competition and Consumer Protection Act,
        whichever is earlier, the statutory license created by this 
        section with respect to such satellite feed shall be 
        conditioned on the annual certification of support under 
        section 396(n) of the Communications Act of 1934.
          ``(2) Submission of subscriber lists.--(A) A satellite 
        carrier that makes secondary transmissions of a primary 
        transmission of a television broadcast station under paragraph 
        (1) shall, within 90 days after commencing such secondary 
        transmissions, submit to that station a list identifying all 
        subscribers to which the satellite carrier currently makes 
        secondary transmissions of that primary transmission. Such list 
        shall be organized by State, identifying all subscribers by 
        name (including street address, county, and 9-digit zip code) 
        in that State that receive secondary transmissions of that 
        primary transmission.
          ``(B) After the list is submitted under subparagraph (A), the 
        satellite carrier shall, on the 15th of each month, submit to 
        the television broadcast station a list identifying by State 
        the names (including street address, county, and 9-digit zip 
        code) of any subscribers who have been added or dropped as 
        subscribers since the last submission under this paragraph.
          ``(C) Subscriber information submitted by a satellite carrier 
        under this paragraph may be used only for purposes of 
        monitoring compliance by the satellite carrier with the 
        statutory license created by this section. The submission of 
        subscriber lists is only required for those television 
        broadcast stations that place 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 paragraph (1), 
        the willful or repeated secondary transmission to the public 
        that is in compliance with the rules, regulations, and 
        authorizations of the Federal Communications Commission by a 
        satellite carrier of a primary transmission made by a 
        television broadcast 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, if the satellite carrier has 
        not deposited the statement of account and royalty fees 
        required by subsection (b).
          ``(4) Willful alterations.--Notwithstanding the provisions of 
        paragraph (1), the secondary transmission to the public that is 
        in compliance with the rules, regulations, and authorizations 
        of the Federal Communications Commission by a satellite carrier 
        of a primary transmission made by a television broadcast 
        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 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 a 
        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) Discrimination by satellite carrier.--Notwithstanding 
        the provisions of paragraph (1), the willful or repeated 
        secondary transmission to the public that is in compliance with 
        the rules, regulations, and authorizations of the Federal 
        Communications Commission by a satellite carrier of a primary 
        transmission made by a television broadcast station and 
        embodying the 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, 
        if the satellite carrier unlawfully discriminates against a 
        distributor.
          ``(6) Geographic limitation on secondary transmissions.--The 
        statutory license created by this section shall apply only to 
        secondary transmissions to subscribers located in the United 
        States.
  ``(b) Statutory License for Secondary Transmissions of Television 
Broadcast Stations.--
          ``(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 the 
        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 television broadcast stations whose signals were 
                retransmitted at any time during that period to 
                subscribers, the total number of subscribers that 
                received such secondarytransmissions, 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 
                as follows:
                          ``(i) For each television network station 
                        that is retransmitted to subscribers located 
                        outside the local market of that station, by 
                        multiplying the total number of subscribers 
                        receiving such secondary transmission during 
                        each calendar month by the royalty fee 
                        prescribed in section 258.3(b)(2) of title 37, 
                        Code of Federal Regulations, as in effect on 
                        January 1, 1998.
                          ``(ii) For each superstation that is 
                        retransmitted to subscribers located outside 
                        the local market of that station, by 
                        multiplying the total number of subscribers 
                        receiving such secondary transmission during 
                        each calendar month by the royalty fee 
                        prescribed in section 258.3(b)(1) of title 37, 
                        Code of Federal Regulations, as in effect on 
                        January 1, 1998.
                          ``(iii) By adding together the totals 
                        computed under clauses (i) and (ii).
        For secondary transmissions of a television broadcast station 
        to subscribers who reside within the local market of that 
        station, there shall be no royalty fee.
          ``(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. Any 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. The Register 
        may, in the Register's discretion, at any time after four years 
        have elapsed since the close of any calendar year, close out 
        the royalty payments account for that calendar year, and may 
        treat any funds remaining in such account and any subsequent 
        deposits that would otherwise be attributable to that calendar 
        year as attributable to the succeeding calendar year.
          ``(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 to the public 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). For 
        purposes of section 802 of this title, with respect to royalty 
        fees paid by satellite carriers for retransmitting the Public 
        Broadcasting Service satellite feed, the Public Broadcasting 
        Service shall be agent for all public television copyright 
        claimants and all Public Broadcasting Service member stations.
          ``(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 
                under this section shall file a claim with the 
                Librarian of Congress, in accordance with requirements 
                that the Librarian shall pre-

                scribe 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 determines that no such 
                controversy exists, the Librarian 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 finds the existence of a 
                controversy, the Librarian shall, pursuant to chapter 8 
                of this title, convene a copyright arbitration royalty 
                panel to determine the distribution of 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) Definitions.--As used in this section--
          ``(1) Distributor.--The term `distributor' means any 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.--The term `local market' of a television 
        broadcast station has the meaning given that term section 3 of 
        the Communications Act of 1934 (47 U.S.C. 153) as interpreted 
        under the rules, regulations, and authorizations of the Federal 
        Communications Commission relating to carriage of television 
        broadcast signals by satellite carriers.
          ``(3) Primary transmission.--The term `primary transmission' 
        has the meaning given that term in section 111(f) of this 
        title.
          ``(4) Public broadcasting service satellite feed.--The term 
        `Public Broadcasting Service satellite feed' means the national 
        satellite feed distributed by the Public Broadcasting Service 
        for purposes of this section consisting of educational and 
        informational programming, to which the Public Broadcasting 
        Service holds national terrestrial broadcast rights.
          ``(5) Satellite carrier.--The term `satellite carrier' has 
        the meaning given that term in section 3 of the Communications 
        Act of 1934.
          ``(6) Secondary transmission.--The term `secondary 
        transmission' has the meaning given that term in section 111(f) 
        of this title.
          ``(7) Subscriber.--The term `subscriber' means an entity that 
        receives a secondary transmission service by means of a 
        secondary transmission from a satellite and pays a fee for the 
        service, directly or indirectly, to the satellite carrier or a 
        distributor.
          ``(8) Superstation.--The term `superstation' means a 
        television broadcast station, other than a television network 
        station, licensed by the Federal Communications Commission that 
        is secondarily transmitted by a satellite carrier, and includes 
        the Public Broadcasting Service satellite feed.
          ``(9) Television broadcast station.--The term `television 
        broadcast station' has the meaning given that term in section 
        325(b)(7) of the Communications Act of 1934.
          ``(10) Television network station.--The term `television 
        network station' means--
                  ``(A) a television network station (as defined in 
                section 3 of the Communications Act of 1934); or
                  ``(B) a noncommercial educational broadcast station 
                (as defined in section 397 of such Act).
  ``(d) Exclusivity of This Section With Respect to Secondary 
Transmissions of Television Broadcast Stations by Satellite to Members 
of the Public.--No provision of section 111 of this title or any other 
law (other than this section) shall be construed to contain any 
authorization, exemption, or license through which secondary 
transmissions by satellite carriers of programming contained in a 
primary transmission may be made without obtaining the consent of the 
copyright owner.''.
  (b) Conforming Amendments.--
          (1) Table of contents.--The table of sections for chapter 1 
        of title 17, United States Code, is amended by striking the 
        item relating to section 119 and inserting the following:
``119.  Limitation on exclusive rights: Secondary transmissions by 
satellite carriers.''.
          (2) Standing.--Subsection (e) of section 501 of title 17, 
        United States Code, is repealed.

SEC. 202. REDUCTION IN ROYALTY FEES.

  The royalty fee prescribed in section 119(b)(1)(B)(i) of title 17, 
United States Code, as amended by section 201(a) of this Act, is 
reduced by 45 percent, effective upon July 1, 1999. The royalty fee 
prescribed in section 119(b)(1)(B)(ii) of such title, as so amended, is 
reduced by 30 percent, effective upon July 1, 1999.

                          Purpose and Summary

    The purpose of H.R. 851, the Satellite Competition and 
Consumer Protection Act, is to promote competition in the 
market for multichannel video programming distribution 
(``MVPD'') through the availability of satellite-delivered 
local broadcast television programming. H.R. 851: (1) clarifies 
the scope of local broadcast stations' rights in granting 
retransmission consent to satellite carriers; (2) delays 
implementation of satellite must-carry rules until January 1, 
2002; (3) imposes network non-duplication, syndicated 
exclusivity, and sports blackout rules for satellite-delivered 
broadcast programming; (4) provides satellite carriers with a 
permanent compulsory copyright license to transmit both local 
and distant broadcast television programming; and (5) reduces 
the copyright royalty fees that satellite carriers pay for the 
out-of-market distribution of broadcast programming.

                  Background and Need for Legislation

                 The Current State of Video Competition

    At its core, the Satellite Competition and Consumer 
Protection Act is about promoting competition in the MVPD 
market. A recent Federal Communications Commission (``FCC'') 
report on the status of competition in the MVPD market 
1 found that, while subscribership to satellite 
television services is growing exponentially, incumbent cable 
operators still retain a dominant position in the MVPD market, 
with about 85 percent of the MVPD market. Moreover, the FCC's 
report also found that cable rates increased an average of 8.5 
percent over the 12-month period from June 1997 to June 1998, 
compared to a 1.7 percent increase in the consumer price index 
(``CPI'') for the same period.
---------------------------------------------------------------------------
    \1\ See Annual Assessment of the Status of Competition in Markets 
for the Delivery of Video Programming, Fifth Annual Report, CS Docket 
No. 98-102 (rel. Dec. 23, 1998).
---------------------------------------------------------------------------
    It is important to note that these cable rate increases 
have occurred under the auspices of the FCC's cable rate 
regulation regime (the statutory authority for which expired on 
March 31, 1999). As a result, competition is widely viewed as 
the most effective tool for protecting consumers against rate 
increases. Thus, the Committee is exploring alternative, non-
regulatory means to promoting more competition in the MVPD 
market, and satellite-delivered television is a key component 
of that effort.

                   Emergence of Satellite Television

    Satellite-delivered television arrived in the mid-1970s, 
and emerged as a serious competitor in the MVPD market in the 
1990s. During that period, it never competed directly against 
other multichannel video programming providers, such as cable. 
Instead, it served those markets (particularly rural markets) 
where cable and over-the-air broadcast either could not or 
would not provide service.
    But recent advances in satellite technology (e.g., smaller 
dishes, added signal capacity) have enabled distributors to 
compete directly with cable and over-the-air broadcast 
television service, even in urban markets. Satellite television 
has, therefore, become a key competitor in the MVPD market. To 
be sure, satellite television is not yet a complete substitute 
for other terrestrial-based multichannel systems, such as cable 
and wireless cable. In part, this is because satellite 
television systems have traditionally lacked both the 
technology and legal authority to distribute local broadcast 
signals (i.e., ``local-into-local'').
    Satellite television distributors have, therefore, sought 
to differentiate their service by offering consumers hundreds 
of channels of high-quality national programming, including 
``packages'' of out-of-market broadcast signals (e.g., WCBS in 
New York, or WRAL in Raleigh) as well as superstation signals 
(e.g., WGN, WWOR). Notwithstanding the unavailability of local 
broadcast programming, consumers have responded positively to 
satellite television offerings. Satellite television--and 
particularly high-powered direct broadcast satellite (``DBS'') 
service--has made substantial inroads into incumbent cable's 
historically dominant position in the MVPD market. The FCC's 
report on the MVPD market found that over 10 million households 
subscribe to satellite television service, and that two out of 
three new subscribers to an MVPD service choose DBS.

                   SHVA's Compulsory Licensing Regime

    The Committee finds that in order for satellite television 
to compete more effectively with cable in the MVPD market, 
Congress must reform the Satellite Home Viewer Act (``SHVA''). 
First enacted in 1988, and then re-authorized in 1994, SHVA 
governs the manner in which satellite television distributors 
can re-transmit broadcast network programming to households in 
markets unserved by either cable or over-the-air broadcast 
television service. Specifically, SHVA currently extends to 
satellite television distributors a ``compulsory copyright 
license'' to re-transmit distant network-affiliated signals to 
``unserved households.'' 2 Through a compulsory 
license, satellite television distributors avoid the 
significant transaction costs and practical difficulties of 
obtaining clearance for every program carried on every 
broadcast station. A compulsory license essentially ``compels'' 
a copyright holder to license its programming to a distributor 
(such as a satellite television operator or a cable operator), 
in return for the distributor paying a fee that is either 
statutorily or administratively prescribed.
---------------------------------------------------------------------------
    \2\ The current compulsory license also includes superstation 
signals, such as WGN in Chicago. The superstation license, however, has 
no geographic limitation similar to the unserved household limitation 
on network programming signals. 17 U.S.C. Sec. 119(a)(1).
---------------------------------------------------------------------------
    Congress, however, placed a key limitation on the satellite 
distributors' compulsory license, i.e., the license permits 
satellite television distributors to re-transmit out-of-market 
network programming only to ``unserved households.'' SHVA 
currently defines ``unserved households'' as those that: (1) 
cannot receive an over-the-air signal of ``grade B intensity'' 
3 from a local broadcast station affiliated with 
that network using a conventional roof-top antenna, and (2) 
have not subscribed to a cable system that provides the signal 
of a local broadcast station affiliated with that network 
within the previous 90 days. Unserved households are 
colloquially referred to as ``white areas,'' because their 
television sets receive only ``white snow'' when using a 
rooftop antenna.
---------------------------------------------------------------------------
    \3\ ``Grade B intensity'' measures the strength of the television 
signal at a given location.
---------------------------------------------------------------------------
    The unserved household limitation is intended to protect 
the traditional network-affiliate relationship. Broadcast 
networks give local affiliates an exclusive license to 
distribute network programming in a given market. Local 
affiliates, in turn, rely upon and market this exclusivity to 
attract commercial advertisers. Because advertising revenue is 
its only source of revenue, a local broadcast station strives 
to reach as many households as possible within its market. 
Thus, when a satellite television operator distributes out-of-
market, or distant, network signals to households that can 
otherwise receive local signals over the air, the local 
broadcast station's viewership (and hence, advertising revenue) 
necessarily declines. The unserved household limitation 
therefore has helped to preserve local affiliates' bargained-
for exclusivity, and in doing so, promoted the development of 
local programming and free, over-the-air television.

                       ``White Area'' Litigation

    The unserved household limitation, however, has proven to 
be difficult to enforce, and as such, has led to a great deal 
of confusion and uncertainty for consumers. In March 1997, 
local television broadcast stations affiliated with CBS and Fox 
filed suit in Miami, Florida, against PrimeTime 24, a 
distributor of satellite-delivered network programming. The 
broadcasters argued that PrimeTime 24 willfully violated SHVA's 
unserved household limitation by selling packages of out-of-
market broadcast signals to households that were otherwise able 
to receive local broadcast signals via conventional rooftop 
antennas.
    In December 1998, the Miami court ruled in favor of the 
plaintiff broadcasters in light of the overwhelming evidence 
that a substantial number of PrimeTime 24's subscribers lived 
in close proximity to local broadcast station transmitters (or, 
stated technically, lived ``within the stations' Grade A 
contours''). The court, therefore, ordered that satellite 
television distributors shut off network programming signals 
for about 2.2 million households. But at a recent Subcommittee 
on Telecommunications, Trade, and Consumer Protection hearing, 
the Committee learned that the scope of the court's injunction 
was unnecessarily broad. Specifically, testimony before the 
Subcommittee made clear that as many as 10 percent of the homes 
subject to the court's injunction were genuinely ``unserved'' 
and, therefore, eligible for satellite-delivered network 
programming. While the courts' ability and authority to 
interpret the law is unquestionable, their remedies are 
sometimes too blunt, particularly in cases, such as this one, 
where the remedy affects a broad class of consumers who, to the 
best of their knowledge, violated no Federal law. It is, 
therefore, critical that, on a going-forward basis, Congress 
empower expert agencies with implementing and enforcing 
telecommunications policy.

                 SHVA Reform: Enabling Local-into-Local

    The key to more competition with cable, as well as a 
partial solution to the ``white area'' problem, is to provide 
satellite carriers with the legal authority to distribute local 
broadcast signals back into local markets, i.e., ``local-into-
local.'' As previously stated, satellite carriers traditionally 
lacked the technological capability to provide local broadcast 
signals, and as a result, sold packages of distant network 
signals to meet consumer demand for network programming. 
Consequently, the satellite compulsory license was limited to 
superstation and distant signal distribution.
    But digital compression, as well as ``spot beam'' 
technology, have advanced to the point where satellite carriers 
have enough capacity to carry many (if not all) local broadcast 
signals from around the country. The Subcommittee received 
testimony from two satellite carriers--Local TV on Satellite, 
and EchoStar--that, within a couple of years, plan to provide 
consumers living in numerous cities with access to their local 
broadcast stations via satellite. Satellite television, in 
other words, now has the technological ability to offer 
consumers a complete substitute for incumbent cable offerings.

         SHVA Reform: Refining Distant Signal Eligibility Rules

    The other key component to reforming SHVA is to further 
refine the rules regarding consumers' eligibility for distant 
network signals. Under current law, a consumer's eligibility 
for satellite-delivered network programming turns on whether he 
or she, among other things, ``cannot receive, through the use 
of a conventional outdoor rooftop receiving antenna, an over-
the-air signal of grade B intensity (as defined by the Federal 
Communications Commission).'' 4 This eligibility 
standard has led to protracted litigation between the 
television broadcast industry and the satellite television 
industry. The broadcast industry argues that the standard is 
sufficient. The problem (in the broadcast industry's view) lies 
not in the statute but with satellite television distributors 
that have willfully violated the unserved household limitation. 
The satellite industry maintains that the statute is too vague, 
as well as outdated given that it relies on a signal intensity 
standard that was acceptable to consumers in the 1950s but may 
be unacceptable to today's consumers.
---------------------------------------------------------------------------
    \4\ 17 U.S.C. Sec. 119(d)(10) (defining ``unserved household'' for 
purposes of determining the scope of the network station compulsory 
license).
---------------------------------------------------------------------------
    In any event, it is clear to the Committee that criteria 
for eligibility need refinement, both in terms of their 
implementation and enforcement. Consumers have become pawns in 
a lawsuit between two warring industries, and the Committee 
seeks to avoid a repeat of this scenario. At the same time, 
however, the Committee re-affirms its historical commitment to 
localism. As previously mentioned, the unserved household 
limitation served a valuable purpose: to preserve local 
affiliates' bargained-for exclusivity, and promote the 
development of local programming and free, over-the-air 
television.
    H.R. 851, therefore, seeks to achieve a critical balance 
between promoting competition and preserving localism. In doing 
so, H.R. 851 makes numerous changes to telecommunications and 
copyright law to enable local-into-local, as well as to refine 
the rules for consumer eligibility for distant network signals. 
Moreover, these amendments are premised on the idea that, to 
the extent possible, similar rules and obligations should apply 
to similarly situated distributors of multichannel video 
programming. In other words, because local-into-local will 
enable satellite television service to serve as a more complete 
substitute to cable service, then satellite and cable service 
providers should operate on similar regulatory footing.

                                Hearings

    The Subcommittee on Telecommunications, Trade, and Consumer 
Protection held a hearing on February 24, 1999, to consider 
issues relating to reform and reauthorization of the Satellite 
Home Viewer Act. The Subcommittee received testimony from 
Deborah Lathen, Chief, Cable Services Bureau, FCC; Charles C. 
Hewitt, President, Satellite Broadcasting and Communications 
Association (``SBCA''); Gene Kimmelman, Co-Director, Consumers 
Union; Andy Fisher, Executive Vice President, Cox Broadcasting; 
Jack Perry, President and Chief Executive Officer (``CEO''), 
Decisionmark; Sophia Collier, President and CEO, Northpoint 
Technology; Al DeVaney, President, NewsWeb Broadcasting; John 
Hutchinson, Executive Vice President and Chief Operating 
Officer, Local TV on Satellite; and David K. Moskowitz, Senior 
Vice President and General Counsel, EchoStar.

                        Committee Consideration

    On March 4, 1999, the Subcommittee on Telecommunications, 
Trade, and Consumer Protection met in open markup session and 
approved H.R. 851 for Full Committee consideration, amended, by 
a voice vote. On March 25, 1999, the Full Committee met in open 
markup session and ordered H.R. 851 reported to the House, 
amended, by a voice vote, a quorum being present.

                             Rollcall Votes

    Clause 3(b) of rule XIII of the Rules of the House requires 
the Committee to list the recorded votes on the motion to 
report legislation and amendments thereto.
    There were no recorded votes taken in connection with 
ordering H.R. 851 reported. An Amendment in the Nature of a 
Substitute offered by Mr. Tauzin, was agreed to, amended, by a 
voice vote. An Amendment to the Tauzin Amendment in the Nature 
of a Substitute offered by Mr. Boucher to require the National 
Telecommunications and Information Administration to conduct a 
study and report to Congress on the availability of local 
television broadcast signals in small and rural markets as part 
of a service that competes with, or supplements, video 
programming delivered by satellite carriers or cable operators 
was agreed to by a voice vote. An Amendment to the Tauzin 
Amendment in the Nature of a Substitute offered by Mrs. Wilson 
to exempt the provision of the bill relating to network non-
duplication for subscribers that install a satellite receiver 
on a recreational vehicle, was agreed to by a voice vote. An 
Amendment to the Tauzin Amendment in the Nature of a Substitute 
offered by Mr. Green to require satellite providers or vendors 
to provide a free, over-the-air antenna to receive local 
broadcast signals to subscribers who have been terminated from 
receiving a distant network signal, was withdrawn by unanimous 
consent.
    A motion by Mr. Bliley to order H.R. 851 reported to the 
House, amended, was agreed to by a voice vote, a quorum being 
present.

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee held an oversight 
hearing and made findings that are reflected in this report.

           Committee on Government Reform Oversight Findings

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, no oversight findings have been 
submitted to the Committee by the Committee on Government 
Reform.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee finds that H.R. 
851, the Satellite Competition and Consumer Protection Act, 
would result in no new or increased budget authority, 
entitlement authority, or tax expenditures or revenues.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                  Congressional Budget Office Estimate

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, April 7, 1999.
Hon. Tom Bliley,
Chairman, Committee on Commerce,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 851, the Satellite 
Competition and Consumer Protection Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Mark Hadley 
(for federal costs), Hester Grippando (for revenues), Theresa 
Fullo (for the state and local impact), and Jean Wooster (for 
the private-sector impact).
            Sincerely,
                                         Barry B. Anderson,
                                    (For Dan L. Crippen, Director).
    Enclosure.

H.R. 851--Satellite Competition and Consumer Protection Act

    Summary: H.R. 851 would allow satellite carriers (companies 
that use satellite transmissions to provide television signals 
directly to consumers) to retransmit the signals of local 
television broadcast stations into the local markets of those 
stations. The bill would allow a local broadcast station to 
require, by January 1, 2002, satellite carriers that serve 
customers in its market to transmit its signal. In addition, 
the bill would eliminate a 90-day waiting period for households 
that switch from cable to satellite service.
    Under the Satellite Home Viewer Act of 1988 (Public Law 
100-667), satellite carriers pay a monthly royalty fee for each 
subscriber to the U.S. Copyright Office for the right to 
retransmit distant network and superstation signals by 
satellite to subscribers for private home viewing. The 
Copyright Office later distributes the fees to those who own 
copyrights on the material retransmitted by satellite. The bill 
would permanently extend the requirement that satellite 
carriers pay royalty fees to the federal government. Beginning 
July 1, 1999, the bill would reduce the current royalty fees 
charged to superstations by 30 percent, to $0.19 per subscriber 
per channel per month, and the fees paid by network stations by 
45 percent to $0.15.
    CBO estimates that enacting H.R. 851 would result in a net 
increase in revenues of $477 million over the 2000-2004 period 
and of $916 million over the 2005-2009 period. After review by 
an arbitration panel, royalty fees are paid to copyright 
owners, along with accrued interest earnings. With higher 
royalty collections, the payments to copyright holders would 
also be higher under H.R. 851, by an estimated $152 million 
over the 2000-2004 period, and by another $750 million over the 
following five years. Because H.R. 851 would affect both 
revenues and direct spending, it would be subject to pay-as-
you-go procedures. Assuming appropriation of the necessary 
amounts, CBO also estimates that complying with the provisions 
of the bill would cost the Federal Communications Commission 
(FCC) and the National Telecommunications and Informa-

tion Administration (NTIA) about $2 million in 2000 and less 
than $500,000 in each subsequent year.H.R. 851 would impose 
both intergovernmental and private-sector mandates, as defined by the 
Unfunded Mandates Reform Act (UMRA), but CBO estimates that the cost of 
the mandates would not exceed the thresholds established by UMRA ($50 
million in 1996, adjusted for inflation for intergovernmental entities 
and $100 million in 1996, adjusted for inflation for the private 
sector).
    Estimated cost to the Federal government: The estimated 
budgetary impact of H.R. 851 is shown in the following table. 
The costs of this legislation fall within budget function 370 
(commerce and housing credit).

----------------------------------------------------------------------------------------------------------------
                                                               By fiscal year, in millions of dollars--
                                                     -----------------------------------------------------------
                                                        1999      2000      2001      2002      2003      2004
----------------------------------------------------------------------------------------------------------------
                                        REVENUES AND DIRECT SPENDING \1\

Recepits and spending under current law:
    Estimated revenues \2\..........................       244       185       118       112       107       101
    Estimated budget authority \3\..................       272       281       219       142       131       121
    Estimated outlays...............................       209       207       259       264       220       182
Proposed changes:
    Estimated revenues..............................         0        17        92       107       122       139
    Estimated budget authority......................         0        18        97       116       136       155
    Estimated outlays...............................         0         0         4        19        35        94
    Net increase in the surplus.....................         0        17        88        88        87        45
Receipts and spending under H.R. 851:
    Estimated revenues \2\..........................       244       202       210       219       229       240
    Estimated budget authority \3\..................       272       299       316       258       267       276
    Estimated outlays...............................       209       207       263       283       255      276
----------------------------------------------------------------------------------------------------------------
\1\ In addition to the effects shown in the table, H.R. 851 would increase spending subject to appropriation by
  about $2 million in 2000 and by less than $500,000 in each subsequent year.
\2\ Includes royalty fee collections from cable television stations, satellite carriers, and digital audio
  devices.
\3\ Payments to copyright owners include interest earnings on securities held by the Copyright Office.

    Basis of estimate: H.R. 851 would allow a satellite carrier 
to make secondary transmissions of local television broadcasts, 
eliminate the waiting period for switching from cable to 
satellite service, reduce the rates of copyright royalty fees, 
and permanently extend those fees. All of these provisions 
would affect payments by satellite carriers to the federal 
government and payments by the federal government to copyright 
holders. CBO assumes that payments from the federal government 
to copyright holders for satellite transmissions would follow 
historical patterns. Assuming enactment of the bill before the 
end of fiscal year 1999, CBO estimates that H.R. 851 would 
increase revenues by $477 million and increase spending by $152 
million over the 2000-2004 period.
    Secondary transmission.--H.R. 851 would allow satellite 
carriers to retransmit the signals of local television 
broadcast stations into the local markets of those stations. 
The bill also would eliminate a provision of current law that 
requires households to wait 90 days between ending cable 
service and beginning satellite service. These provisions would 
make the services provided by satellite carriers more 
attractive. As a result, CBO expects that the number of 
subscribers to satellite services would increase more rapidly 
than under current law. Based on information from the Copyright 
Office, CBO estimates that under H.R. 851 the annual change in 
the volume of satellite services would increase from a 
projected rate of 10 percent a year to 17 percent in 2000.
    In addition, H.R. 851 would allow a local broadcast station 
to require, by January 1, 2002, satellite carriers that serve 
customers in its market to transmit its signal. This provision 
would reduce revenues from fees in two ways. First, satellite 
carriers might enter new markets more slowly as they grapple 
with the technical difficulty of carrying hundreds of local 
signals. Second, satellite carriers would provide subscribers 
with fewer distant network signals and more signals of local 
broadcast stations. Under the bill, satellite carriers would 
not pay the royalty fee for local broadcast stations.
    CBO estimates that the annual growth in fee volume would 
gradually decrease from the projected rate of 17 percent in 
2000 to about 3 percent by 2009. Because the bill's provisions 
could increase the incentives for choosing satellite service 
over cable service, they might lead to a loss in revenues from 
cable fees. However, based on information from the Copyright 
Office and the cable and satellite industries, CBO estimates 
that any such reduction in revenues would not be significant.
    Reduction in the copyright royalty fee.--A rule issued on 
October 28, 1997, by the Librarian of Congress, increased the 
royalty fee to $0.27 per subscriber per month. H.R. 851 would 
reduce the royalty fee on superstations by 30 percent to $0.19 
per subscriber per channel per month and the rates on network 
stations by 45 percent to $0.15, effective July 1, 1999. Based 
on information from the Copyright Office, CBO estimates that 
this provision would reduce revenues by $26 million in fiscal 
year 2000, when the fees would expire under current law. But 
this reduction would be more than offset by permanently 
extending the copyright royalty fees.
    Extension of copyright royalty fees.--Under current law, 
the royalty fees for satellite carriers expire on December 31, 
1999. H.R. 851 would permanently extend royalty fees, 
increasing both revenue from satellite carriers and payments to 
copyright holders (including interest) during the 2000-2004 
period. In fiscal year 2000, the net change in estimated 
revenues would be relatively small--$17 million--because the 
additional revenue from extending the fees ($43 million) would 
be partially offset by a reduction in fee payments due early in 
the year under current law. By 2004, CBO expects additional 
revenues to total $139 million because of the fee extension.
    Payments to copyright holders.--H.R. 851 would result in 
additional spending because all revenues are eventually paid to 
copyright holders with interest. Historical spending patterns 
indicate that copyright holders may receive the fees and 
interest up to 10 years after the Copyright Office has 
collected the revenues. Thus, CBO estimates a significant lag 
between changes in revenues and the eventual changes in the 
outlays that stem from copyright fees.
    Discretionary spending.--H.R. 851 would require the FCC to 
conduct rule makings containing technical and business 
relationships between satellite carriers and local broadcast 
stations. The bill also would require the FCC to report on 
methods for facilitating the delivery of local signals in local 
markets, especially smaller markets. Based on information from 
the FCC, CBO estimates that implementing H.R. 851 would cost 
the commission about $1 million in 2000 and less than $500,000 
in each subsequent year, subject to the availability of 
appropriated funds. H.R. 851 would require NTIA to report on 
the availability of local television broadcast signals in small 
and rural markets. Based on information from NTIA, CBO 
estimates that conducting the inquiry would cost $500,000 to $1 
million in 2000, subject to the availability of appropriated 
funds.
    Pay-as-you-go considerations.--The Balanced Budget and 
Emergency Deficit Control Act sets up pay-as-you-go procedures 
for legislation affecting direct spending or receipts. The new 
changes in outlays and governmental receipts that are subject 
to pay-as-you-go procedures are shown in the following table. 
For the purposes of enforcing pay-as-you-go procedures, only 
the effects in the current year, the budget year, and the 
succeeding four years are counted.

----------------------------------------------------------------------------------------------------------------
                                                       By fiscal year, in millions of dollars--
                                    ----------------------------------------------------------------------------
                                      1999   2000   2001   2002   2003   2004   2005   2006   2007   2008   2009
----------------------------------------------------------------------------------------------------------------
Changes in outlays.................      0      0      4     19     35     94    108    125    153    173    191
Changes in receipts................      0     17     92    107    122    139    156    172    186    197    205
----------------------------------------------------------------------------------------------------------------

    Intergovernmental and private-sector impact: H.R. 851 would 
impose both intergovernmental and private-sector mandates, as 
defined by UMRA. The cost of the intergovernmental mandate 
would be insignificant and would not exceed the threshold 
established by UMRA ($50 million in 1996, adjusted for 
inflation). The cost of the private-sector mandates imposed on 
satellite carriers and network broadcast stations also would 
not exceed the annual threshold for private-sector mandates 
($100 million in 1996, adjusted for inflation).
    Section 104 would impose a mandate on the Public 
Broadcasting Service (PBS). The requirement would be both an 
intergovernmental and private-sector mandate because PBS is 
owned and operated by local noncommercial television stations 
that include both publicly and privately owned stations. This 
bill would require that PBS annually certify whether the 
majority of its member stations support the retransmission of 
PBS's national satellite feed. PBS must also provide such 
certification to the satellite carriers that carry that feed. 
Based on information from PBS, CBO estimates that the cost to 
comply with this mandate wouldbe insignificant because PBS 
regularly surveys its members for other purposes and could easily 
incorporate this new requirement into existing surveys.
    The remaining mandates would impose requirements on 
satellite carriers and network stations, all private-sector 
entities. Section 101 would require satellite carriers to 
obtain consent from a television broadcast station to 
rebroadcast programs to subscribers outside the local 
broadcast. That requirement would be effective seven months 
after enactment of this bill. The costs imposed on the 
satellite carriers would be mostly administrative costs for 
negotiating agreements with local network stations. CBO 
believes that those costs would be small.
    Section 103 would require that both satellite providers and 
network television stations maintain a publicly available file 
of subscribers' requests to allow the satellite retransmission 
of the signal of a network affiliate. Information from 
satellite carriers and networks indicates that most currently 
maintain some or all of that information. CBO estimates that 
the additional costs incurred by the satellite carriers and 
network television stations would be small.
    An additional economic effect of this bill (not associated 
with a federal mandate) would result from changes to the 
royalty fees paid by satellite carriers to copyright holders, 
including some state and local government entities. The bill 
would reduce the fees from current levels and permanently 
extend them. If the current arrangement for collecting 
royalties were to expire, satellite owners would have to reach 
agreement with each copyright owner, which would be difficult 
and expensive.
    Previous CBO estimate: On March 8, 1999, CBO transmitted a 
cost estimate for S. 247, the Satellite Home Viewers 
Improvements Act, as ordered reported by the Senate Committee 
on the Judiciary on February 25, 1999. That bill would extend 
the requirement that satellite carriers pay royalty fees only 
until December 31, 2004. Thus, S. 247 and H.R. 851 would have 
different effects on revenues and spending over the 2005-2009 
period. S. 247 does not contain provisions affecting the FCC or 
NTIA.
    Estimate prepared by: Federal costs: Mark Hadley; Revenues: 
Hester Grippando; Impact on State, local, and tribal 
governments: Theresa Gullo; Impact on the private sector: Jean 
Wooster.
    Estimate approved by: Robert A. Sunshine, Deputy Assistant 
Director for Budget Analysis.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that the 
Constitutional authority for this legislation is provided in 
Article I, section 8, clause 3, which grants Congress the power 
to regulate commerce with foreign nations, among the several 
States, and with the Indian tribes.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             Section-by-Section Analysis of the Legislation

Section 1. Short title

    Section 1 provides for the short title of the Act, the 
``Satellite Competition and Consumer Protection Act.''

         title i--amendments to the communications act of 1934

Section 101. Retransmission consent

    Section 101 amends subsection 325(b) of the Communications 
Act of 1934, which currently requires MVPDs to obtain the 
consent of broadcast stations before retransmitting their 
signals (unless the station has elected must-carry status 
pursuant to section 614 (cable must-carry) or new section 338 
(satellite must-carry)). New subsection 325(b), however, 
provides for four exceptions to the general retransmission 
consent rule. First, no MVPD need obtain consent to retransmit 
the signal of non-commercial television broadcast stations. 
Second, no satellite carrier need obtain consent to retransmit 
the signal of any station outside the station's local market if 
such station was a superstation as of May 1, 1991, was 
distributed directly tosubscribers pursuant to the satellite 
compulsory license as of July 1, 1998, and the satellite carrier 
complies with all network non-duplication, syndicated exclusivity, and 
sports blackout rules pursuant to new section 712. Third, until seven 
months after enactment, no satellite carrier need obtain consent to 
retransmit station signals to subscribers residing in distant markets. 
And fourth, no non-satellite MVPD need obtain consent to retransmit the 
signal of any station outside the station's local market if such 
station was a superstation as of May 1, 1991, and the signal was 
distributed to the non-satellite MVPD's headend pursuant to the 
satellite compulsory license as of July 1, 1998.
    Subsection 325(b) further requires the FCC to issue 
implementing rules within one year of enactment. Subsection 
325(b) specifically directs the FCC to ensure that its rules 
(1) establish election time periods, and (2) prohibit stations 
from engaging in discriminatory practices, understandings, 
arrangements, and activities, including exclusive contracts for 
carriage, that prevent a satellite carrier from obtaining 
retransmission consent from stations. With regard to the second 
criteria, the Committee notes that the FCC's rules may not 
require stations to provide retransmission consent to different 
MVPDs on identical terms. Each MVPD is architecturally unique. 
Cable systems serve a local or regional territory, whereas 
satellite systems have a national footprint. Stations may 
therefore properly choose to provide consent on varying terms 
and conditions to reflect the inherent differences in video 
programming distribution systems.
    Finally, subsection 325(b) makes clear that a station 
electing carriage pursuant to retransmission consent may not 
avail itself of the satellite must-carry requirements under new 
section 338. This limitation is parallel to the limitation on 
stations' ability to secure cable carriage pursuant to cable 
must-carry once they have elected retransmission consent.

Section 102. Must-carry for satellite carriers retransmitting 
        television broadcast signals

    Section 102 creates new section 338 of the Communications 
Act of 1934 to address satellite carriers' must-carry 
obligations. In particular, subsection 338(a) requires 
satellite carriers, by January 1, 2002, to carry all local 
broadcast stations signals in a market in which it carries at 
least one such signal. The Committee points out that nothing in 
subsection 338(a) is intended to compel the carriage of 
multiple signals from any one broadcast station, to require the 
carriage of both digital and analog signals during the 
transition to digital television, or to otherwise supersede 
existing statutory authority regarding the carriage of analog 
or digital signals transmitted by broadcasters.
    Subsection 338(b) requires television broadcast stations 
that assert must-carry rights to bear the costs of delivering a 
good quality signal to the designated local receive facility of 
the satellite carrier, or to an alternative facility that is 
acceptable to at least one-half of the stations in the same 
market that are also asserting must-carry rights. Subsection 
338(c) provides that, notwithstanding the general must-carry 
requirement, satellite carriers are not required to transmit 
substantially duplicative local television station signals 
within the local market, nor are satellite carriers required to 
retransmit more than one affiliate of a television broadcast 
network. With regard to carriage of multiple local non-
commercial television stations, subsection 338(c) directs the 
FCC to ensure that such stations receive the same degree of 
carriage by satellite systems that they presently receive from 
cable systems.
    Pursuant to subsection 338(d), even though they are not 
required to provide local television broadcast signals on any 
particular channel, satellite carriers must retransmit local 
television broadcast signals to subscribers on contiguous 
channels, and provide access to such signals at a 
nondiscriminatory price, and in a non-discriminatory manner, on 
any on-screen program guide or similar interface. Subsection 
338(e) provides that satellite carriers may not accept or 
request compensation in cash or in kind in exchange for 
carriage of a local television broadcast station, or for 
channel positioning rights provided to the local television 
broadcast station.
    Subsection 338(f) outlines a complaint procedure for a 
local television station to follow in the event that the 
station believes a satellite carrier has wrongly denied 
carriage to the station under section 338. Finally, subsection 
338(g) gives the FCC 180 days to implement satellite must-carry 
rules.

Section 103. Nonduplication of programming broadcast by local stations

    Section 103 replaces section 712 of the Communications Act 
of 1934 to establish rules relating the non-duplication of 
broadcast programming distributed via satellite. As amended, 
subsection 712(a) requires the FCC to issue rules that enable 
local broadcast stations to assert network non-duplication, 
syndicated exclusivity, and sports blackout rights against 
satellite carriers distributing other broadcast programming. 
Subsection 712(a) further states that, to the extent possible, 
local broadcast stations shall have the same degree of 
protection against duplication as they do in the context of 
cable distribution of other broadcast programming.
    Given the uniqueness of the network-affiliate relationship, 
subsection 712(b) provides specific guidelines with regard to 
the duplication of network programming via satellite. In the 
cable context, the FCC's network non-duplication rules permit a 
local network television station to ask that a cable operator 
delete duplicative network programming from another network 
television station re-

transmitted by the cable operator into a specified zone 
associated with the local network television station. 
Subsection 712(b) is intended to operate as the satellite 
equivalent of the network non-duplication rules that currently 
apply to cable operators. To begin with, it directs the FCC to 
establish a ``Network Nonduplication Signal Standard'' that, at 
least initially, will be the FCC's existing grade B signal 
contours,5 and to also establish a new ``Network 
Nonduplication Reception Model'' that can reliably and 
presumptively predict the ability of a consumer to receive a 
signal in accordance with the Network Nonduplication Signal 
Standard. Subsection 712(b) directs the FCC, within 180 days of 
enactment, to incorporate into its Model signal interference 
caused by terrain, building structures, and other land cover 
variations. The FCC is further directed to continually refine 
the Model and additional data as it becomes available. 
Together, the Signal Standard and the Model will generate a 
``Reception Model Area'' (``RMA'') for each television 
broadcast station, throughout which consumers are predicted to 
have access to a signal in accordance with the Network 
Nonduplication Signal Standard.
---------------------------------------------------------------------------
    \5\ See 47 C.F.R. Sec. 73.683.
---------------------------------------------------------------------------
    Subsection 712(b) then identifies the scope of television 
broadcast station's network non-duplication rights, depending 
upon whether the satellite carrier is distributing local 
broadcast signals back into their originating markets (i.e., 
local-into-local). Specifically, in cases where the satellite 
carrier is offering local-into-local, a network television 
station may assert non-duplication rights against a satellite 
carrier within the same geographic area throughout which the 
station may assert non-duplication rights with respect to cable 
retransmission of television broadcast signals. (However, in 
cases where there are two network stations that are affiliates 
of the same television network, and both stations are located 
within the same local market, neither station may assert non-
duplication rights in an area that is outside the station's 
RMA.) In cases where a satellite carrier is not offering local-
into-local, a network television station may assert non-
duplication rights against a satellite carrier within that 
network television station's RMA.
    The Committee recognizes that, even though subsection 
712(b) requires the FCC to continually refine its Network 
Nonduplication Reception Model, there inevitably will be 
occasions where some consumers are erroneously deemed 
ineligible for satellite-delivered network programming. 
Accordingly, subsection 712(b) provides consumers with the 
added protection of an expeditious waiver process. In 
particular, subsection 712(b) makes clear that consumers may 
seek a waiver from a network television station that has 
asserted network non-duplication rights affecting the consumer. 
The station must accept or reject the waiver request within 30 
days. In the event the station denies the waiver, subsection 
712(b) further permits the consumer to submit a petition to the 
FCC (or a neutral third party of the FCC's choosing), alleging 
that he or she does not receive the required signal intensity. 
The petition will be deemed granted, unless the network 
television station submits to the FCC (or the neutral third 
party) the written findings and results of a test that prove 
that the consumer does, in fact, receive the required signal 
intensity. Subsection 712(b) makes clear that under no 
circumstances is the consumer to be required to bear any 
portion of the cost of the test. Finally, in cases where 
consumers adequately demonstrate that they have installed 
satellite television services in a recreational vehicle, 
subsection 712(b) deems those consumers to be outside network 
television stations' local markets and RMAs, and thus eligible 
for satellite-delivered network programming without 
restriction.
    Section 712 provides one other measure to ensure that the 
eligibility criteria serve the interests of both competition 
and localism: an ongoing review of the signal intensity 
standard and the predictive model. Subsection 712(c) directs 
the FCC to conduct an inquiry, and report to Congress within 
two years of enactment, on the extent to which the Network 
Nonduplication Signal Standard, the Network Nonduplication 
Reception Model, and the Reception Model Areas are adequate to 
reliably measure the ability of consumers to receive an 
acceptable over-the-air television broadcast signal. As part of 
its inquiry, the FCC must consider, among other things, the 
number of consumers that have requested waivers from their 
local broadcaster, and the number of waivers that broadcasters 
have denied. The Committee believes that, in cases where the 
Model fails to accurately predict consumer eligibility, the 
waiver process is critical to ensuring that consumers are 
expeditiously served, with the least amount of administrative 
and financial burden.
    Subsection 712(c) directs the FCC to revise its eligibility 
rules in accordance with the findings from its inquiry, within 
six months of completing the inquiry and submitting a report to 
Congress. The Committee emphasizes that the FCC is required to 
make only those changes that flow from the findings from its 
inquiry. Thus, if the FCC finds that the grade B signal 
intensity standard, when applied in conjunction with a refined 
predictive model, and an expedited waiver process, adequately 
serve consumers, then the FCC shall refrain from modifying the 
signal intensity standard.

Section 104. Consent of membership to retransmission of public 
        broadcasting service satellite feed

    Section 104 amends section 396 of the Communications Act of 
1934 to require the Public Broadcasting Service (``PBS'') to 
annually certify to the Corporation for Public Broadcasting 
(``CPB'') that a majority of PBS' member stations support a 
national PBS satellite feed. Satellite carriers will have 
access to the feed through a compulsory license that is created 
in subsection 201(a) of H.R. 851.
    No later than two years after enactment, however, the 
compulsory license for a PBS feed will be conditioned upon the 
annual certification process in subsection 396(n). The 
Committee views this annual certification process as a critical 
component of the compulsory license. While the Committee 
supports wide availability of satellite-delivered PBS 
programming (and therefore provides for a conditional 
compulsory license), the Committee at the same time seeks to 
ensure that PBS member stations support the satellite feed.

Section 105. Inquiry on rural service required

    Section 105 directs the National Telecommunications and 
Information Administration (``NTIA'') of the Department of 
Commerce to conduct an inquiry into the availability of local 
television broadcast signals in small and rural markets as part 
of a service that competes with, or supplements, video 
programming delivered by satellite carriers or cable operators. 
NTIA is further required to submit to the Committee, as well as 
the Committee on Commerce, Science, and Transportation of the 
Senate, a report on the results of the inquiry.

Section 106. Definitions

    Section 106 amends section 3 of the Communications Act of 
1934 to include definitions of ``local market,'' ``satellite 
carrier,'' and ``television network; television network 
station.''

Section 107. Completion of biennial regulatory review

    Section 107 provides that, within 180 days after the date 
of enactment, the FCC will complete the biennial review 
required by section 202(h) of the Telecommunications Act of 
1996. In particular, the FCC will issue a notice of proposed 
rulemaking and a final report and order on those rules that are 
covered under ``MM Dkt. No. 98-35, NOI, FCC 98-37.''

          TITLE II--AMENDMENTS TO TITLE 17, UNITED STATES CODE

Section 201. Limitations on exclusive rights; secondary transmissions 
        by satellite carriers within local markets

            (a) In general
    Subsection 201(a) amends section 119 of the Copyright 
Act.6 Subsection 119(a) expressly establishes a 
compulsory license for satellite carriers to retransmit local 
and distant television broadcast station signals to 
subscribers, irrespective of where they reside. The license is 
conditioned upon carrier compliance with FCC rules and 
regulations (which are established in Title I of the bill), as 
well as compliance with monthly submissions of detailed 
subscriber lists.
---------------------------------------------------------------------------
    \6\ 17 U.S.C. Sec. 119.
---------------------------------------------------------------------------
    The Committee notes that new subsection 119(a) removes all 
provisions regarding the unserved household limitation that are 
currently in the satellite compulsory license. It is illogical 
to place territorial restrictions on compulsory licenses, given 
that they are designed to effectuate telecommunications policy 
goals (e.g., localism, and the viability of free, over-the-air 
television), and not copyright interests. Therefore, Title I of 
H.R. 851--which addresses amendments to the Communications Act 
of 1934--properly identifies any and all geographic limitations 
on satellite carriers' ability to retransmit broadcast 
programming, and Title II conditions the carriers' compulsory 
license on compliance with FCC rules established pursuant to 
Title I.
    The Committee also notes that new subsection 119(a) unifies 
the compulsory license for local and distant licenses, and 
makes both licenses permanent (as opposed to sunsetting one, 
but making the other permanent). Many rural and small markets 
rely, and will continue to rely for some time, upon satellite-
delivered distant signals as their only source of network 
programming. It therefore makes no sense to the Committee to 
effectively discriminate against consumers living in these 
markets by sunsetting the distant signal license, while also 
making the local license permanent. Similarly, new subsection 
119(a) makes the compulsory license available for distribution 
to both residences and commercial establishments alike. Many 
consumers have no access to multichannel video programming at 
their place of residence. They therefore rely on commercial 
establishments for access to a wide variety of satellite-
delivered information and video programming. The Committee is 
satisfied that submissions of detailed subscriber lists will 
minimize any potential piracy associated with distribution to 
commercial establishments.
    Finally, subsection 119(a) also establishes a compulsory 
license for satellite carriers to retransmit a national PBS 
feed. The compulsory license for a national PBS feed, however, 
is conditional. Beginning no later than two years after 
enactment, PBS must make an annual certification to CPB in 
accordance with subsection 396(n) of the Communications Act of 
1934.
    Subsection 119(b) makes clear that the local-into-local 
license is royalty-free. Subsection 119(b) also codifies the 
current statutory royalty fees paid by satellite carriers for 
the retransmission of distant network and superstations. Those 
rates are then reduced by the percentages provided in section 
202 of the bill.
            (b) Conforming amendments
    Subsection 201(b) makes certain conforming amendments to 
Title 17. It also removes the standing of local broadcast 
stations to sue for infringement under Section 501 of the 
Copyright Act. The Committee finds that local broadcast 
stations have sufficient remedies available to them under the 
Communications Act of 1934 to protect their legitimate 
telecommunications-related interests. It is, therefore, 
unnecessary to give stations an additional right of action 
under the Copyright Act to protect their non-copyright-related 
interests. This is not to say that stations have no legal 
recourse in cases where their copyright interests have been 
infringed upon. To the contrary, the Copyright Act still 
permits a station to bring an infringement action, but only for 
those programs for which the station owns the copyright.

Section 202. Reduction in royalty rates

    Section 202 of H.R. 851 reduces the copyright royalty fees 
paid by satellite carriers for the retransmission of network 
and superstation signals by 45 percent and 30 percent, 
respectively.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, 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 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

COMMUNICATIONS ACT OF 1934

           *       *       *       *       *       *       *

TITLE I--GENERAL PROVISIONS

           *       *       *       *       *       *       *

SEC. 3. DEFINITIONS.

  For the purposes of this Act, unless the context otherwise 
requires--
          (1) * * *

           *       *       *       *       *       *       *

          (27) 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 DMA Market and Demographic 
                Report.
          [(27)] (28) Mobile service.--The term ``mobile 
        service'' means a radio communication service carried 
        on between mobile stations or receivers and land 
        stations, and by mobile stations communicating among 
        themselves, and includes (A) both one-way and two-way 
        radio communication services, (B) a mobile service 
        which provides a regularly interacting group of base, 
        mobile, portable, and associated control and relay 
        stations (whether licensed on an individual, 
        cooperative, or multiple basis) for private one-way or 
        two-way land mobile radio communications by eligible 
        users over designated areas of operation, and (C) any 
        service for which a license is required in a personal 
        communications service established pursuant to the 
        proceeding entitled ``Amendment to the Commission's 
        Rules to Establish New Personal Communications 
        Services'' (GEN Docket No. 90-314; ET Docket No. 92-
        100), or any successor proceeding.
          [(28)] (29) Mobile station.--The term ``mobile 
        station'' means a radio-communication station capable 
        of being moved and which ordinarily does move.
          [(29)] (30) Network element.--The term ``network 
        element'' means a facility or equipment used in the 
        provision of a telecommunications service. Such term 
        also includes features, functions, and capabilities 
        that are provided by means of such facility or 
        equipment, including subscriber numbers, databases, 
        signaling systems, and information sufficient for 
        billing and collection or used in the transmission, 
        routing, or other provision of a telecommunications 
        service.
          [(30)] (31) Number portability.--The term ``number 
        portability'' means the ability of users of 
        telecommunications services to retain, at the same 
        location, existing telecommunications numbers without 
        impairment of quality, reliability, or convenience when 
        switching from one telecommunications carrier to 
        another.
          [(31)] (32)(A) Operator.--The term ``operator'' on a 
        ship of the United States means, for the purpose of 
        parts II and III of title III of this Act, a person 
        holding a radio operator's license of the proper class 
        as prescribed and issued by the Commission.
          (B) ``Operator'' on a foreign ship means, for the 
        purpose of part II of title III of this Act, a person 
        holding a certificate as such of the proper class 
        complying with the provision of the radio regulations 
        annexed to the International Telecommunication 
        Convention in force, or complying with an agreement or 
        treaty between the United States and the country in 
        which the ship is registered.
          [(32)] (33) Person.--The term ``person'' includes an 
        individual, partnership, association, joint-stock 
        company, trust, or corporation.
          [(33)] (34) Radio communication.--The term ``radio 
        communication'' or ``communication by radio'' means the 
        transmission by radio of writing, signs, signals, 
        pictures, and sounds of all kinds, including all 
        instrumentalities, facilities, apparatus, and services 
        (among other things, the receipt, forwarding, and 
        delivery of communications) incidental to such 
        transmission.
          [(34)] (35)(A) Radio officer.--The term ``radio 
        officer'' on a ship of the United States means, for the 
        purpose of part II of title III of this Act, a person 
        holding at least a first or second class radiotelegraph 
        operator's license as prescribed and issued by the 
        Commission. When such person is employed to operate a 
        radiotelegraph station aboard a ship of the 
UnitedStates, he is also required to be licensed as a ``radio officer'' 
in accordance with the Act of May 12, 1948 (46 U.S.C. 229a-h).
          (B) ``Radio officer'' on a foreign ship means, for 
        the purpose of part II of title III of this Act, a 
        person holding at least a first or second class 
        radiotelegraph operator's certificate complying with 
        the provisions of the radio regulations annexed to the 
        International Telecommunication Convention in force.
          [(35)] (36) Radio station.--The term ``radio 
        station'' or ``station'' means a station equipped to 
        engage in radio communication or radio transmission of 
        energy.
          [(36)] (37) Radiotelegraph auto alarm.--The term 
        ``radiotelegraph auto alarm'' on a ship of the United 
        States subject to the provisions of part II of title 
        III of this Act means an automatic alarm receiving 
        apparatus which responds to the radiotelegraph alarm 
        signal and has been approved by the Commission. 
        ``Radiotelegraph auto alarm'' on a foreign ship means 
        an automatic alarm receiving apparatus which responds 
        to the radiotelegraph alarm signal and has been 
        approved by the government of the country in which the 
        ship is registered: Provided, That the United States 
        and the country in which the ship is registered are 
        parties to the same treaty, convention, or agreement 
        prescribing the requirements for such apparatus. 
        Nothing in this Act or in any other provision of law 
        shall be construed to require the recognition of a 
        radiotelegraph auto alarm as complying with part II of 
        title III of this Act, on a foreign ship subject to 
        such part, where the country in which the ship is 
        registered and the United States are not parties to the 
        same treaty, convention, or agreements prescribing the 
        requirements for such apparatus.
          [(37)] (38) Rural telephone company.--The term 
        ``rural telephone company'' means a local exchange 
        carrier operating entity to the extent that such 
        entity--
                  (A) provides common carrier service to any 
                local exchange carrier study area that does not 
                include either--
                          (i) any incorporated place of 10,000 
                        inhabitants or more, or any part 
                        thereof, based on the most recently 
                        available population statistics of the 
                        Bureau of the Census; or
                          (ii) any territory, incorporated or 
                        unincorporated, included in an 
                        urbanized area, as defined by the 
                        Bureau of the Census as of August 10, 
                        1993;
                  (B) provides telephone exchange service, 
                including exchange access, to fewer than 50,000 
                access lines;
                  (C) provides telephone exchange service to 
                any local exchange carrier study area with 
                fewer than 100,000 access lines; or
                  (D) has less than 15 percent of its access 
                lines in communities of more than 50,000 on the 
                date of enactment of the Telecommunications Act 
                of 1996.
          [(38)] (39) Safety convention.--The term ``safety 
        convention'' means the International Convention for the 
        Safety of Life at Sea in force and the regulations 
        referred to therein.
          (40) Satellite carrier.--The term ``satellite 
        carrier'' means an entity that uses the facilities of a 
        satellite or satellite service licensed by the 
        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 this Act.
          [(39)] (41)(A) Ship.--The term ``ship'' or ``vessel'' 
        includes every description of watercraft or other 
        artificial contrivance, except aircraft, used or 
        capable of being used as a means of transportation on 
        water, whether or not it is actually afloat.
          (B) A ship shall be considered a passenger ship if it 
        carries or is licensed or certificated to carry more 
        than twelve passengers.
          (C) A cargo ship means any ship not a passenger ship.
          (D) A passenger is any person carried on board a ship 
        or vessel except (1) the officers and crew actually 
        employed to man and operate the ship, (2) persons 
        employed to carry on the business of the ship, and (3) 
        persons on board a ship when they are carried, either 
        because of the obligation laid upon the master to carry 
        shipwrecked, distressed, or other persons in like or 
        similar situations or by reason of any circumstance 
        over which neither the master, the owner, nor the 
        charterer (if any) has control.
          (E) ``Nuclear ship'' means a ship provided with a 
        nuclear powerplant.
          [(40)] (42) State.--The term ``State'' includes the 
        District of Columbia and the Territories and 
        possessions.
          [(41)] (43) State commission.--The term ``State 
        commission'' means the commission, board, or official 
        (by whatever name designated) which under the laws of 
        any State has regulatory jurisdiction with respect to 
        intrastate operations of carriers.
          [(42)] (44) Station license.--The term ``station 
        license,'' ``radio station license,'' or ``license'' 
        means that instrument of authorization required by this 
        Act or the rules and regulations of the Commission made 
        pursuant to this Act, for the use or operation of 
        apparatus for transmission of energy, or 
        communications, or signals by radio by whatever name 
        the instrument may be designated by the Commission.
          [(43)] (45) Telecommunications.--The term 
        ``telecommunications'' means the transmission, between 
        or among points specified by the user, of information 
        of the user's choosing, without change in the form or 
        content of the information as sent and received.
          [(44)] (46) Telecommunications carrier.--The term 
        ``telecommunications carrier'' means any provider of 
        telecommunications services, except that such term does 
        not include aggregators of telecommunications services 
        (as defined in section 226). A telecommunications 
        carrier shall be treated as a common carrier under this 
        Act only to the extent that it isengaged in providing 
telecommunications services, except that the Commission shall determine 
whether the provision of fixed and mobile satellite service shall be 
treated as common carriage.
          [(45)] (47) Telecommunications equipment.--The term 
        ``telecommunications equipment'' means equipment, other 
        than customer premises equipment, used by a carrier to 
        provide telecommunications services, and includes 
        software integral to such equipment (including 
        upgrades).
          [(46)] (48) Telecommunications service.--The term 
        ``telecommunications service'' means the offering of 
        telecommunications for a fee directly to the public, or 
        to such classes of users as to be effectively available 
        directly to the public, regardless of the facilities 
        used.
          [(47)] (49) Telephone exchange service.--The term 
        ``telephone exchange service'' means (A) service within 
        a telephone exchange, or within a connected system of 
        telephone exchanges within the same exchange area 
        operated to furnish to subscribers intercommunicating 
        service of the character ordinarily furnished by a 
        single exchange, and which is covered by the exchange 
        service charge, or (B) comparable service provided 
        through a system of switches, transmission equipment, 
        or other facilities (or combination thereof) by which a 
        subscriber can originate and terminate a 
        telecommunications service.
          [(48)] (50) Telephone toll service.--The term 
        ``telephone toll service'' means telephone service 
        between stations in different exchange areas for which 
        there is made a separate charge not included in 
        contracts with subscribers for exchange service.
          (51) Television network; television network 
        station.--
                  (A) 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.
                  (B) Television network station.--The term 
                ``television network station'' means a 
                television broadcast station that is owned or 
                operated by, or affiliated with, a television 
                network.
          [(49)] (52) Television service.--
                  (A) Analog television service.--The term 
                ``analog television service'' means television 
                service provided pursuant to the transmission 
                standards prescribed by the Commission in 
                section 73.682(a) of its regulations (47 C.F.R. 
                73.682(a)).
                  (B) Digital television service.--The term 
                ``digital television service'' means television 
                service provided pursuant to the transmission 
                standards prescribed by the Commission in 
                section 73.682(d) of its regulations (47 C.F.R. 
                73.682(d)).
          [(50)] (53) Transmission of energy by radio.--The 
        term ``transmission of energy by radio'' or ``radio 
        transmission of energy'' includes both such 
        transmission and all instrumentalities, facilities, and 
        services incidental to such transmission.
          [(51)] (54) United states.--The term ``United 
        States'' means the several States and Territories, the 
        District of Columbia, and the possessions of the United 
        States, but does not include the Canal Zone.
          [(52)] (55) Wire communication.--The term ``wire 
        communication'' or ``communication by wire'' means the 
        transmission of writing, signs, signals, pictures, and 
        sounds of all kinds by aid of wire, cable, or other 
        like connection between the points of origin and 
        reception of such transmission, including all 
        instrumentalities, facilities, apparatus, and services 
        (among other things, the receipt, forwarding, and 
        delivery of communications) incidental to such 
        transmission.

           *       *       *       *       *       *       *

                TITLE III--PROVISIONS RELATING TO RADIO

PART I--GENERAL PROVISIONS

           *       *       *       *       *       *       *

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

  (a) * * *
  [(b)(1) Following the date that is one year after the date of 
enactment of the Cable Television Consumer Protection and 
Competition Act of 1992, 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; or
          [(B) pursuant to section 614, in the case of a 
        station electing, in accordance with this subsection, 
        to assert the right to carriage under such section.
    [(2) The provisions of this subsection shall not apply to--
          [(A) retransmission of the signal of a noncommercial 
        broadcasting station;
          [(B) retransmission directly to a home satellite 
        antenna of the signal of a broadcasting station that is 
        not owned or operated by, or affiliated with, a 
        broadcasting network, if such signal was retransmitted 
        by a satellite carrier on May 1, 1991;
          [(C) retransmission of the signal of a broadcasting 
        station that is owned or operated by, or affiliated 
        with, a broadcasting network directly to a home 
        satellite antenna, if the household receiving the 
        signal is an unserved household; or
          [(D) retransmission by a cable operator or other 
        multichannel video programming distributor of the 
        signal of a superstation if such signal was obtained 
        from a satellite carrier and the originating station 
        was a superstation on May 1, 1991.
For purposes of this paragraph, the terms ``satellite 
carrier'', ``superstation'', and ``unserved household'' have 
the meanings giventhose terms, respectively, in section 119(d) 
of title 17, United States Code, as in effect on the date of enactment 
of the Cable Television Consumer Protection and Competition Act of 
1992.]
  (b)(1) No cable system or other multichannel video 
programming distributor shall retransmit the signal of a 
television broadcast station, or any part thereof, except--
          (A) with the express authority of the originating 
        station;
          (B) pursuant to 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) pursuant to section 338, in the case of a station 
        electing, in accordance with this subsection, to assert 
        the right to carriage under such section.
  (2) The provisions of 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 
                compulsory license of section 119 of title 17, 
                United States Code; and
                  (iii) the satellite carrier complies with all 
                network nonduplication, syndicated exclusivity, 
                and sports blackout rules adopted by the 
                Commission pursuant to section 712 of this Act;
          (C) until 7 months after the date of enactment of the 
        Satellite Competition and Consumer Protection Act, to 
        retransmission of the signal of a television network 
        station directly to a satellite antenna, if the 
        subscriber receiving the signal is located in an area 
        outside the local market of such station; or
          (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 
                compulsory license of section 119 of title 17, 
                United States Code.
  (3)(A)  * * *

           *       *       *       *       *       *       *

  (C) Within 45 days after the date of enactment of the 
Satellite Competition and Consumer Protection Act, 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 one 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) prohibit television broadcast stations that 
        provide retransmission consent from engaging in 
        discriminatory practices, understandings, arrangements, 
        and activities, including exclusive contracts for 
        carriage, that prevent a satellite carrier from 
        obtaining retransmission consent from such stations.
  (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 sec-

tion 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, the provisions of 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 
[614 or 615] 338, 614, or 615 of any station electing to assert 
the right to signal carriage under that section.

           *       *       *       *       *       *       *

  (7) For purposes of this subsection, the term `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.

           *       *       *       *       *       *       *

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

  (a) Carriage Obligations.--
          (1) In general.--Subject to the limitations of 
        subparagraph (2), each satellite carrier providing 
        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 all television broadcast stations located 
        within that local market, subject to section 325(b), by 
        retransmitting the signal or signals of such stations 
        that are identified by Commission regulations for 
        purposes of this section.
          (2) Effective date.--No satellite carrier shall be 
        required to carry local television broadcast stations 
        under paragraph (1) until January 1, 2002.
  (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 1 local commer-

        cial television broadcast station in a single local 
        market that is affiliated with a particular television 
        network.
          (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 this section, such station shall notify the 
        carrier, in writing, of the alleged failure and 
        identify its reasons for believing that the satellite 
        carrier is obligated to carry upon request the signal 
        of such station or has otherwise failed to comply with 
        other requirements of this section. The satellite 
        carrier shall, within 30 days of such written 
        notification, respond in writing to such notification 
        and either begin carrying the signal of such station in 
        accordance with the terms requested or state its 
        reasons for believing that it is not obligated to carry 
        such signal or is in compliance with other requirements 
        of this section, as the case may be. A local television 
        broadcast station that is denied carriage in accordance 
        with this section by a satellite carrier or is 
        otherwise harmed by a response by a satellite carrier 
        that it is in compliance with other requirements of 
        this section may obtain review of such denial or 
        response by filing a compliant 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 subparagraph (A) 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 subparagraph 
        (A), the Commission shall determine whether the 
        satellite carrier has met its obligations under this 
        chapter. If the Commission determines that the 
        satellite carrier has failed to meet such obligations, 
        the Commission shall order the satellite carrier, in 
        the case of an obligation to carry a station, to begin 
        carriage of the station and to continue such carriage 
        for at least 12 months, or, in the case of the failure 
        to meet other obligations under this section, shall 
        take other appropriate remedial action. If the 
        Commission determines that the satellite carrier has 
        fully met the requirements of this chapter, the 
        Commission shall dismiss the complaint.
  (g) Regulations by Commission.--Within 180 days after the 
date of enactment of this section, the Commission shall, 
following a rulemaking proceeding, issue regulations 
implementing this section.
  (h) Definitions.--As used in this section:
          (1) Subscriber.--The term ``subscriber'' means an 
        entity that receives a secondary transmission service 
        by means of a secondary transmission from a satellite 
        and pays a fee for the service, directly or indirectly, 
        to the satellite carrier or to a distributor.
          (2) 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.
          (3) 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.
          (4) Television broadcast station.--The term 
        ``television broadcast station'' has the meaning given 
        such term in section 325(b)(7).
          (5) Secondary transmission.--The term ``secondary 
        transmission'' has the meaning given such term in 
        section 119(c) of title 17, United States Code.

           *       *       *       *       *       *       *

     PART IV--ASSISTANCE FOR PUBLIC TELECOMMUNICATIONS FACILITIES; 
TELECOMMUNICATIONS DEMONSTRATIONS; CORPORATION FOR PUBLIC BROADCASTING

           *       *       *       *       *       *       *

             Subpart D--Corporation for Public Broadcasting

SEC. 396. DECLARATION OF POLICY.

  (a)  * * *

           *       *       *       *       *       *       *

  (n) The Public Broadcasting Service shall certify to the 
Board on an annual basis that a majority of its membership 
supports or does not support the secondary transmission of the 
Public Broadcasting Service satellite feed, and provide notice 
to each satellite carrier carrying such feed of such 
certification.

           *       *       *       *       *       *       *

TITLE VII--MISCELLANEOUS PROVISIONS

           *       *       *       *       *       *       *

[SEC. 712. SYNDICATED EXCLUSIVITY.

  [(a) The Federal Communications Commission shall initiate a 
combined inquiry and rulemaking proceeding for the purpose of--
          [(1) determining the feasibility of imposing 
        syndicated exclusivity rules with respect to the 
        delivery of syndicated programming (as defined by the 
        Commission) for private home viewing of secondary 
        transmissions by satellite of broadcast station signals 
        similar to the rules issued by the Commission with 
        respect to syndicated exclusivity and cable television; 
        and
          [(2) adopting such rules if the Commission considers 
        the imposition of such rules to be feasible.
  [(b) In the event that the Commission adopts such rules, any 
willful and repeated secondary transmission made by a satellite 
carrier to the public of a primary transmission embodying the 
performance or display of a work which violates such Commission 
rules shall be subject to the remedies, sanctions, and 
penalties provided by title V and section 705 of this Act.]

SEC. 712. NONDUPLICATION OF PROGRAMMING BROADCAST BY LOCAL STATIONS.

  (a) Extension of Network Nonduplication, Syndicated 
Exclusivity, and Sports Blackout to Satellite Retransmission.--
Within 45 days after the date of enactment of the Satellite 
Competition and Consumer Protection Act, the Commission shall 
commence a single rulemaking proceeding to establish 
regulations that apply network nonduplication protection, 
syndicated exclusivity protection, and sports blackout 
protection to the retransmission of broadcast signals by 
satellite carriers to subscribers. To the extent possible 
consistent with subsection (b), such regulations shall provide 
the same degree of protection against retransmission of 
broadcast signals as is provided by the network nonduplication 
(47 C.F.R. 76.92), syndicated exclusivity (47 C.F.R. 151), and 
sports blackout (47 C.F.R. 76.67) rules applicable to cable 
television systems. 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.
  (b) Establishment of Network Nonduplication Boundaries.--
          (1) Establishment of signal standard for network 
        nonduplication required.--The Commission shall 
        establish a signal intensity standard for purposes of 
        determining the network nonduplication rights of local 
        television broadcast stations. Until revised pursuant 
        to subsection (c), such standard shall be the Grade B 
        field strength standard prescribed by the Commission in 
        section 73.683 of the Commission's regulations (47 
        C.F.R. 73.683). For purposes of this section, the 
        standard established under this paragraph is referred 
        to as the ``Network Nonduplication Signal Standard''.
          (2) Establishment of improved predictive model 
        required.--Within 180 days after the date of enactment 
        of the Satellite Competition and Consumer Protection 
        Act, 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 
        Network Nonduplication Signal Standard. In prescribing 
        such model, the Commission shall 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. For purposes of this 
        section, such model is referred to as the ``Network 
        Nonduplication Reception Model'', and the area 
        encompassing locations that are predicted to have the 
        ability to receive such a signal of a particular 
        broadcast station is referred to as that station's 
        ``Reception Model Area''.
          (3) Network nonduplication.--The network 
        nonduplication regulations required under subsection 
        (a) shall allow a television network station to assert 
        nonduplication rights as follows:
                  (A) If a satellite carrier is retransmitting 
                that station, or any other television broadcast 
                stations located in the same local market, to 
                subscribers located in that station's local 
                market, the television network station may 
                assert nonduplication rights against the 
                satellite carrier throughout the area within 
                which that station may assert such rights under 
                the rules applicable to cable television 
                systems (47 C.F.R. 76.92), except as provided 
                in subparagraph (C).
                  (B) If a satellite carrier is not 
                retransmitting any television broadcast 
                stations located in the television network 
                station's local market to subscribers located 
                in such market, the television network station 
                may assert nonduplicationrights against the 
satellite carrier in the geographic area that is within such station's 
Reception Model Area, but such geographic area shall not extend beyond 
the local market of such station.
                  (C) If there are 2 or more television network 
                stations that are each affiliates of a single 
                television network within the same local 
                market, neither such station may assert under 
                subparagraph (A) nonduplication rights against 
                a satellite carrier in an area that is outside 
                the Reception Model Area of that station.
          (4) Waivers.--The network nonduplication protection 
        described in paragraph (3) shall not apply to a 
        subscriber who files with the satellite carrier a 
        written waiver with respect to that subscriber obtained 
        from a television network station allowing the 
        subscriber to receive satellite retransmission of 
        another network station affiliated with that same 
        network. The television network station shall accept or 
        reject a subscriber's request for a waiver within 30 
        days after receipt of the request. The television 
        network station and the satellite carrier shall 
        maintain a file available to the public that contains 
        such waiver requests and the acceptances and rejections 
        thereof.
          (5) Objective verification.--If a subscriber submits 
        a petition to the Commission or an entity designated by 
        the Commission by rule--
                  (A) that alleges that such subscriber does 
                not receive a signal that meets or exceeds the 
                Network Nonduplication Signal Standard; and
                  (B) includes a processing fee in an amount 
                prescribed by regulation to recover the cost of 
                administering the provisions of this paragraph;
        the network nonduplication rights described in 
        paragraph (3) shall not apply to that subscriber unless 
        such station submits to the Commission or such entity 
        and to the subscriber the written findings and 
        conclusions of a test conducted in accordance with the 
        provisions of section 73.686(d) of title 47, Code of 
        Federal Regulations, or any successor regulation, 
        demonstrating that the subscriber receives a signal 
        that meets or exceeds the Network Nonduplication Signal 
        Standard. A subscriber is required to file a waiver 
        request under paragraph (4) before filing a petition 
        under this paragraph. A subscriber may not be required 
        to bear any portion of the cost of such test.
          (6) Recreational vehicle location.--In the case of a 
        subscriber to a satellite carrier who has installed 
        satellite reception equipment in a recreational 
        vehicle, and who has permitted any television network 
        station seeking to assert network nonduplication rights 
        to verify the motor vehicle registration, license, and 
        proof of ownership of such vehicle, the subscriber 
        shall be considered to be outside the local market and 
        Reception Model Area of such station. For purposes of 
        this paragraph, the term ``recreational vehicle'' does 
        not include any residential manufactured home, as 
        defined in section 603(6) of the National Manufactured 
        Housing Construction and Safety Standards Act of 1974 
        (42 U.S.C. 5402(6)).
  (c) Review and Revision of Standards and Model.--
          (1) Ongoing Inquiry Required.--Not later than 2 years 
        after the date of enactment of the Satellite 
        Competition and Consumer Protection Act, the Commission 
        shall conduct an inquiry of the extent to which the 
        Network Nonduplication Signal Standard, the Network 
        Nonduplication Reception Model, and the Reception Model 
        Areas of television stations are adequate to reliably 
        measure the ability of consumers to receive an 
        acceptable over-the-air television broadcast signal.
          (2) Data to Be Considered.--In conducting the inquiry 
        required by paragraph (1), the Commission shall 
        consider as evidence that consumers are not receiving a 
        signal of the quality described in such paragraph--
                  (A) the number of subscribers requesting 
                waivers under subsection (b)(4), and the number 
                of waivers that are denied;
                  (B) the number of subscribers submitting 
                petitions under subsection (b)(5), and the 
                number of such petitions that are granted;
                  (C) the results of any consumer research 
                study that may be undertaken to carry out the 
                purposes of this section; and
                  (D) the extent to which consumers are not 
                legally entitled to install broadcast reception 
                devices assumed in the Commission's standard.
          (3) Report and action.--The Commission shall submit 
        to the Congress a report on the inquiry required by 
        this subsection not later than the end of the 2-year 
        period described in paragraph (1). The Commission shall 
        complete any actions necessary to revise the Network 
        Nonduplication Signal Standard, the Network 
        Nonduplication Reception Model, and the Reception Model 
        Areas of television stations in accordance with the 
        findings of such inquiry not later than 6 months after 
        the end of such 2-year period.
          (4) Data submission.--The Commission shall prescribe 
        by rule the data required to be submitted by television 
        broadcast stations and by satellite carriers to the 
        Commission or such designated entity to carry out this 
        subsection, and the format for submission of such data.

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                              ----------                              

TITLE 17--COPYRIGHTS

           *       *       *       *       *       *       *

            CHAPTER 1--SUBJECT MATTER AND SCOPE OF COPYRIGHT

Sec.
101.  Definitions.
     * * * * * * *
[119.  Limitations on exclusive rights: Secondary transmissions of 
          superstations and network stations for private home viewing.]
119.  Limitation on exclusive rights: Secondary transmissions by 
          satellite carriers.

           *       *       *       *       *       *       *

[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.--Subject to the provisions of 
        paragraphs (3), (4), and (6) of this subsection and 
        section 114(d), secondary transmissions of a primary 
        transmission made by a superstation and embodying a 
        performance or display of a work 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, 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.
          [(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 programming contained in a 
                primary transmission made by a network station 
                and embodying a performance or display of a 
                work 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, 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.--The statutory license provided for 
                in subparagraph (A) shall be limited to 
                secondary transmissions to persons who reside 
                in unserved households.
                  [(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 currently 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 in-

        fringement 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 
        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 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 homeviewing, 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.
          [(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 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, 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 
                        net-

                        work 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's station 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 satellitecarrier 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.
  [(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 transmitted, 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 
                transmissions, 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 
                        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 theLibrarian 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).
  [(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 programmingbroadcast 
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).
          [(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'' means a 
        television broadcast station, other than a network 
        station, licensed by the Federal Communications 
        Commission that is secondarily transmitted by a 
        satellite carrier.
          [(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 outdoor rooftop receiving antenna, 
                an over-the-air signal of grade B intensity (as 
                defined by the Federal Communications 
                Commission) of a primary network station 
                affiliated with that network, and
                  [(B) has not, within 90 days before the date 
                on which that household subscribes, either 
                initially or on renewal, to receive secondary 
                transmissions by a satellite carrier of a 
                network station affiliated with that network, 
                subscribed to a cable system that provides the 
                signal of a primary network station affiliated 
                with that network.
          [(11) Local market.--The term ``local market'' means 
        the area encompassed within a network station's 
        predicted Grade B contour as that contour is defined by 
        the Federal Communications Commission.
  [(e) Exclusivity of This Section With Respect to Secondary 
Transmissions of Broadcast Stations by Satellite to Members of 
the Public.--No provision of section 111 of this title or any 
other law (other than this section) shall be construed to 
contain any authorization, exemption, or license through which 
secondary transmissions by satellite carrier for private home 
viewing of programming contained in a primary transmission made 
by a superstation or a network station may be made without 
obtaining the consent of the copyright owner.]

Sec. 119. Limitations on exclusive rights; Secondary transmissions by 
                    satellite carriers

  (a) Secondary Transmissions of Television Broadcast Stations 
by Satellite Carriers.--
          (1) Statutory license.--Subject to the provisions of 
        paragraphs (2), (3), (4), and (5) of this subsection 
        and section 114(d), a secondary transmission that is in 
        compliance with the rules, regulations, and 
        authorizations of the Federal Communications Commission 
        of a primary transmission made by a television 
        broadcast station and embodying a performance or 
        display of a work may have a statutory license under 
        this section if the satellite carrier makes a direct or 
        indirect charge to subscribers for the secondary 
        transmission or to a distributor that has contracted 
        with the satellite carrier for direct or indirect 
        delivery of the secondary transmission. For purposes of 
        this section, the Public Broadcasting Service satellite 
        feed shall be considered a primary transmission made by 
        a television broadcast station that is in compliance 
        with the rules, regulations, and authorizations of the 
        Federal Communications Commission, except that 
        subsequent to--
                  (A) the date when a majority of subscribers 
                to satellite carriers are able to receive the 
                signal of at least one noncommercial 
                educational television broadcast station from 
                their satellite carrier within such stations' 
                local market, or
                  (B) 2 years after the effective date of the 
                Satellite Competition and Consumer Protection 
                Act,
        whichever is earlier, the statutory license created by 
        this section with respect to such satellite feed shall 
        be conditioned on the annual certification of support 
        under section 396(n) of the Communications Act of 1934.
          (2) Submission of subscriber lists.--(A) A satellite 
        carrier that makes secondary transmissions of a primary 
        transmission of a television broadcast station under 
        paragraph (1) shall, within 90 days after commencing 
        such secondary transmissions, submit to that station a 
        list identifying all subscribers to which the satellite 
        carrier currently makes secondary transmissions of that 
        primary transmission. Such list shall be organized by 
        State, identifying all subscribers by name (including 
        street ad-

        dress, county, and 9-digit zip code) in that State that 
        receive secondary transmissions of that primary 
        transmission.
          (B) After the list is submitted under subparagraph 
        (A), the satellite carrier shall, on the 15th of each 
        month, submit to the television broadcast station a 
        list identifying by State the names (including street 
        address, county, and 9-digit zip code) of any 
        subscribers who have been added or dropped as 
        subscribers since the last submission under this 
        paragraph.
          (C) Subscriber information submitted by a satellite 
        carrier under this paragraph may be used only for 
        purposes of monitoring compliance by the satellite 
        carrier with the statutory license created by this 
        section. The submission of subscriber lists is only 
        required for those television broadcast stations that 
        place 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 
        paragraph (1), the willful or repeated secondary 
        transmission to the public that is in compliance with 
        the rules, regulations, and authorizations of the 
        Federal Communications Commission by a satellite 
        carrier of a primary transmission made by a television 
        broadcast 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, if the satellite carrier has not deposited the 
        statement of account and royalty fees required by 
        subsection (b).
          (4) Willful alterations.--Notwithstanding the 
        provisions of paragraph (1), the secondary transmission 
        to the public that is in compliance with the rules, 
        regulations, and authorizations of the Federal 
        Communications Commission by a satellite carrier of a 
        primary transmission made by a television broadcast 
        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 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 a 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) Discrimination by satellite carrier.--
        Notwithstanding the provisions of paragraph (1), the 
        willful or repeated secondary transmission to the 
        public that is in compliance with the rules, 
        regulations, and authorizations of the Federal 
        Communications Commission by a satellite carrier of a 
        primary transmission made by a television broadcast 
        station and embodying the 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, if the 
        satellite carrier unlawfully discriminates against a 
        distributor.
          (6) Geographic limitation on secondary 
        transmissions.--The statutory license created by this 
        section shall apply only to secondary transmissions to 
        subscribers located in the United States.
  (b) Statutory License for Secondary Transmissions of 
Television Broadcast Stations.--
          (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 the 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 television broadcast 
                stations whose signals were retransmitted at 
                any time during that period to subscribers, the 
                total number of subscribers that received such 
                secondary transmissions, 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 as follows:
                          (i) For each television network 
                        station that is retransmitted to 
                        subscribers located outside the local 
                        market of that station, by multiplying 
                        the total number of subscribers 
                        receiving such secondary transmission 
                        during each calendar month by the 
                        royalty fee prescribed in section 
                        258.3(b)(2) of title 37, Code of 
                        Federal Regulations, as in effect on 
                        January 1, 1998.
                          (ii) For each superstation that is 
                        retransmitted to subscribers located 
                        outside the local market of that 
                        station, by multiplying the total 
                        number of subscribers receiving such 
                        secondary transmission during each 
                        calendar month by the royalty fee 
                        prescribed in section 258.3(b)(1) of 
                        title 37, Code of Federal Regulations, 
                        as in effect on January 1, 1998.
                          (iii) By adding together the totals 
                        computed under clauses (i) and (ii).
        For secondary transmissions of a television broadcast 
        station to subscribers who reside within the local 
        market of that station, there shall be no royalty fee.
          (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. Any 
        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. The 
        Register may, in the Register's discretion, at any time 
        after four years have elapsed since the close of any 
        calendar year, close out the royalty payments account 
        for that calendar year, and may treat any funds 
        remaining in such ac-

        count and any subsequent deposits that would otherwise 
        be attributable to that calendar year as attributable 
        to the succeeding calendar year.
          (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 to the 
        public 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). For purposes of section 802 of this title, with 
        respect to royalty fees paid by satellite carriers for 
        retransmitting the Public Broadcasting Service 
        satellite feed, the Public Broadcasting Service shall 
        be agent for all public television copyright claimants 
        and all Public Broadcasting Service member stations.
          (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 under this 
                section shall file a claim with the Librarian 
                of Congress, in accordance with requirements 
                that the Librarian 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 determines that no such 
                controversy exists, the Librarian 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 
                finds the existence of a controversy, the 
                Librarian shall, pursuant to chapter 8 of this 
                title, convene a copyright arbitration royalty 
                panel to determine the distribution of 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) Definitions.--As used in this section--
          (1) Distributor.--The term ``distributor'' means any 
        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.--The term ``local market'' of a 
        television broadcast station has the meaning given that 
        term section 3 of the Communications Act of 1934 (47 
        U.S.C. 153) as interpreted under the rules, 
        regulations, and authorizations of the Federal 
        Communications Commission relating to carriage of 
        television broadcast signals by satellite carriers.
          (3) Primary transmission.--The term ``primary 
        transmission'' has the meaning given that term in 
        section 111(f) of this title.
          (4) Public broadcasting service satellite feed.--The 
        term ``Public Broadcasting Service satellite feed'' 
        means the national satellite feed distributed by the 
        Public Broadcasting Service for purposes of this 
        section consisting of educational and informational 
        programming, to which the Public Broadcasting Service 
        holds national terrestrial broadcast rights.
          (5) Satellite carrier.--The term ``satellite 
        carrier'' has the meaning given that term in section 3 
        of the Communications Act of 1934.
          (6) Secondary transmission.--The term ``secondary 
        transmission'' has the meaning given that term in 
        section 111(f) of this title.
          (7) Subscriber.--The term ``subscriber'' means an 
        entity that receives a secondary transmission service 
        by means of a secondary transmission from a satellite 
        and pays a fee for the service, directly or indirectly, 
        to the satellite carrier or a distributor.
          (8) Superstation.--The term ``superstation'' means a 
        television broadcast station, other than a television 
        network station, licensed by the Federal Communications 
        Commission that is secondarily transmitted by a 
        satellite carrier, and includes the Public Broadcasting 
        Service satellite feed.
          (9) Television broadcast station.--The term 
        ``television broadcast station'' has the meaning given 
        that term in section 325(b)(7) of the Communications 
        Act of 1934.
          (10) Television network station.--The term 
        ``television network station'' means--
                  (A) a television network station (as defined 
                in section 3 of the Communications Act of 
                1934); or
                  (B) a noncommercial educational broadcast 
                station (as defined in section 397 of such Act.
  (d) Exclusivity of This Section With Respect to Secondary 
Transmissions of Television Broadcast Stations by Satellite to 
Members of the Public.--No provision of section 111 of this 
title or any other law (other than this section) shall be 
construed to contain any authorization, exemption, or license 
through which secondary transmissions by satellite carriers of 
programming contained in a primary transmission may be made 
without obtaining the consent of the copyright owner.

           *       *       *       *       *       *       *

CHAPTER 5--COPYRIGHT INFRINGEMENT AND REMEDIES

           *       *       *       *       *       *       *

Sec. 501. Infringement of copyright

  (a)  * * *

           *       *       *       *       *       *       *

  [(e) With respect to any secondary transmission that is made 
by a satellite carrier of a primary transmission embodying the 
performance or display of a work and is actionable as an act of 
infringement under section 119(a)(5), a network station holding 
a copyright or other license to transmit or perform the same 
version of that work shall, for purposes of subsection (b) of 
this section, be treated as a legal or beneficial owner if such 
secondary transmission occurs within the local service area of 
that station.]

           *       *       *       *       *       *       *

                            ADDITIONAL VIEWS

    H.R. 851 the Satellite Competition and Consumer Protection 
Act established a means for satellite television carriers to 
legally carry and retransmit local television network signals, 
thus providing a viable competitor to the cable industry.
    Recent events led to the termination of network signals to 
millions of satellite television subscribers. Under current law 
only those persons who can not receive a network signal through 
an over the air television antenna are eligible to receive and 
purchase a distant network package through their satellite 
carriers. Unfortunately, there are many customers who live in 
areas of the country, for example in downtown areas, that can 
receive a clear network signal and were still sold these 
distant network packages. It is these customers who deserve a 
measure of relief. These are ineligible customers who were sold 
an illegal product.
    H.R. 851 takes many steps to solve the problem of satellite 
customers who might have been ineligible to receive a distant 
network signal but were still sold distant network packages. 
The provisions providing for local into local service will 
start to alleviate this problem. However, many of these 
customers were still sold either through the carrier or a local 
vendor a distant network package that was terminated. Until 
local into local service is available in all markets, these 
satellite carriers or local vendors should be held accountable 
and are obligated to provide their customers with access to a 
local network signal.
    Satellite carriers and the local vendors need to fulfill 
their obligations to their customers and provide them with 
access to a network signal.

                                                        Gene Green.

                                
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