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[House Report 106-86]
[From the U.S. Government Publishing Office]

106th Congress                                             Rept. 106-86
 1st Session            HOUSE OF REPRESENTATIVES               Part 1

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

 
              COPYRIGHT COMPULSORY LICENSE IMPROVEMENT ACT

                                _______

                 April 12, 1999.--Ordered to be printed
                                _______

Mr. Coble, from the Committee on the Judiciary, submitted the following

                              R E P O R T

                        [To accompany H.R. 1027]

    The Committee on the Judiciary, to whom was referred the 
bill (H.R. 1027) to provide for the carriage by satellite 
carriers of local broadcast station signals, and for other 
purposes, having considered the same, report favorably thereon 
with an amendment and recommend that the bill as amended do 
pass.

                                CONTENTS

                                                                   Page
The Amendment....................................................     1
Purpose and Summary..............................................     9
Background and Need for the Legislation..........................     9
Hearings.........................................................    10
Committee Consideration..........................................    11
Vote of the Committee............................................    11
Committee Oversight Findings.....................................    11
Committee on Government Reform and Oversight Findings............    11
New Budget Authority and Tax Expenditures........................    11
Committee Cost Estimate..........................................    11
Constitutional Authority Statement...............................    11
Section-by-Section Analysis......................................    12
Changes in Existing Law Made by the Bill, as Reported............    18

  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 ``Copyright Compulsory License 
Improvement Act''.

SEC. 2. LIMITATIONS ON EXCLUSIVE RIGHTS; SECONDARY TRANSMISSIONS BY 
                    SATELLITE CARRIERS WITHIN LOCAL MARKETS.

  (a) In General.--Chapter 1 of title 17, United States Code, is 
amended by adding after section 121 the following new section:

``Sec. 122. Limitations on exclusive rights; secondary transmissions by 
                    satellite carriers within local markets

  ``(a) Secondary Transmissions of Television Broadcast Stations by 
Satellite Carriers.--A secondary transmission of a primary transmission 
of a television broadcast station into the station's local market shall 
be subject to statutory licensing under this section if--
          ``(1) the secondary transmission is made by a satellite 
        carrier to the public;
          ``(2) the satellite carrier is in compliance with the rules, 
        regulations, or authorizations of the Federal Communications 
        Commission governing the carriage of television broadcast 
        station signals; and
          ``(3) the satellite carrier makes a direct or indirect charge 
        for the secondary transmission to--
                  ``(A) each subscriber receiving the secondary 
                transmission; or
                  ``(B) a distributor that has contracted with the 
                satellite carrier for direct or indirect delivery of 
                the secondary transmission to the public.
  ``(b) Reporting Requirements.--
          ``(1) Initial lists.--A satellite carrier that makes 
        secondary transmissions of a primary transmission made by a 
        network station under subsection (a) shall, within 90 days 
        after commencing such secondary transmissions, submit to that 
        station a list identifying (by name in alphabetical order and 
        street address, including county and zip code) only those 
        subscribers located in that station's local market to which the 
        satellite carrier currently makes secondary transmissions of 
        that primary transmission.
          ``(2) Subsequent lists.--After the list is submitted under 
        paragraph (1), the satellite carrier shall, on the 15th of each 
        month, submit to the station a list identifying (by name and 
        street address, including county and zip code) any subscribers 
        who have been added or dropped as subscribers since the last 
        submission under this subsection.
          ``(3) Use of subscriber information.--Subscriber information 
        submitted by a satellite carrier under this subsection may be 
        used only for the purposes of monitoring compliance by the 
        satellite carrier with this section.
          ``(4) Requirements of stations.--The submission requirements 
        of this subsection shall apply to a satellite carrier only if 
        the station 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.
  ``(c) No Royalty Fee Required.--A satellite carrier whose secondary 
transmissions are subject to statutory licensing under subsection (a) 
shall have no royalty obligation for such secondary transmissions.
  ``(d) Noncompliance With Reporting Requirements.--Notwithstanding 
subsection (a), the willful or repeated secondary transmission to the 
public by a satellite carrier into the local market of a television 
broadcast station of a primary transmission made by that 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 under sections 502 through 506 and 
509, if the satellite carrier has not complied with the reporting 
requirements of subsection (b).
  ``(e) Willful Alterations.--Notwithstanding subsection (a), the 
secondary transmission to the public by a satellite carrier into the 
local market of a television broadcast station of a primary 
transmission made by that 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 the primary transmitter during, or immediately before or 
after, the transmission of such program, is in any way willfully 
altered by the satellite carrier through changes, deletions, or 
additions, or is combined with programming from any other broadcast 
signal.
  ``(f) Violation of Territorial Restrictions on Statutory License for 
Television Broadcast Stations.--
          ``(1) Individual violations.--The willful or repeated 
        secondary transmission to the public by a satellite carrier of 
        a primary transmission made by a television broadcast station 
        and embodying a performance or display of a work to a 
        subscriber who does not reside in that station's local market, 
        and is not subject to statutory licensing under section 119, is 
        actionable as an act of infringement under section 501 and is 
        fully subject to the remedies provided by sections 502 through 
        506 and 509, except that--
                  ``(A) no damages shall be awarded for such act of 
                infringement if the satellite carrier took corrective 
                action by promptly withdrawing service from the 
                ineligible subscriber; and
                  ``(B) any statutory damages shall not exceed $5 for 
                such subscriber for each month during which the 
                violation occurred.
          ``(2) Pattern of violations.--If a satellite carrier engages 
        in a willful or repeated pattern or practice of secondarily 
        transmitting to the public a primary transmission made by a 
        television broadcast station and embodying a performance or 
        display of a work to subscribers who do not reside in that 
        station's local market, and are not subject to statutory 
        licensing under section 119, then in addition to the remedies 
        under paragraph (1)--
                  ``(A) if the pattern or practice has been carried out 
                on a substantially nationwide basis, the court shall 
                order a permanent injunction barring the secondary 
                transmission by the satellite carrier of the primary 
                transmissions of that television broadcast station (and 
                if such television broadcast station is a network 
                station, all other television broadcast stations 
                affiliated with such network), and the court may order 
                statutory damages not exceeding $250,000 for each 6-
                month period during which the pattern or practice was 
                carried out; and
                  ``(B) if the pattern or practice has been carried out 
                on a local or regional basis with respect to more than 
                one television broadcast station (and if such 
                television broadcast station is a network station, all 
                other television broadcast stations affiliated with 
                such network), the court shall order a permanent 
                injunction barring the secondary transmission in that 
                locality or region by the satellite carrier of the 
                primary transmissions of any television broadcast 
                station, and the court may order statutory damages not 
                exceeding $250,000 for each 6-month period during which 
                the pattern or practice was carried out.
  ``(g) Burden of Proof.--In any action brought under subsection (d), 
(e), or (f), the satellite carrier shall have the burden of proving 
that its secondary transmission of a primary transmission by a 
television broadcast station is made only to subscribers located within 
that station's local market.
  ``(h) Geographic Limitations on Secondary Transmissions.--The 
statutory license created by this section shall apply to secondary 
transmissions to locations in the United States, and any commonwealth, 
territory, or possession of the United States.
  ``(i) Exclusivity With Respect to Secondary Transmissions of 
Broadcast Stations by Satellite to Members of the Public.--No provision 
of section 111 or any other law (other than this section and section 
119) shall be construed to contain any authorization, exemption, or 
license through which secondary transmissions by satellite carriers of 
programming contained in a primary transmission made by a television 
broadcast station may be made without obtaining the consent of the 
copyright owner.
  ``(j) Definitions.--In this section--
          ``(1) Distributor.--The term `distributor' means an entity 
        which contracts to distribute secondary transmissions from a 
        satellite carrier and, either as a single channel or in a 
        package with other programming, provides the secondary 
        transmission either directly to individual subscribers or 
        indirectly through other program distribution entities.
          ``(2) Local market.--The `local market' of a television 
        broadcast station has the meaning given that term under rules, 
        regulations, and authorizations of the Federal Communications 
        Commission relating to carriage of television broadcast signals 
        by satellite carriers.
          ``(3) Network station; satellite carrier; secondary 
        transmission.--The terms `network station', `satellite carrier' 
        and `secondary transmission' have the meanings given such terms 
        under section 119(d).
          ``(4) Subscriber.--The term `subscriber' means 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.
          ``(5) Television broadcast station.--The term `television 
        broadcast station' means an over-the-air, commercial or 
        noncommercial television broadcast station licensed by the 
        Federal Communications Commission under subpart E of part 73 of 
        title 47, Code of Federal Regulations.''.
  (b) Infringement of Copyright.--Section 501 of title 17, United 
States Code, is amended by adding at the end the following new 
subsection:
  ``(f) 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 122, a television broadcast 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 market of that station.''.
  (c) Technical and Conforming Amendments.--The table of sections for 
chapter 1 of title 17, United States Code, is amended by adding after 
the item relating to section 121 the following:

``122. Limitations on exclusive rights; secondary transmissions by 
satellite carriers within local market.''.

SEC. 3. EXTENSION OF EFFECT OF AMENDMENTS TO SECTION 119 OF TITLE 17, 
                    UNITED STATES CODE.

  Section 4(a) of the Satellite Home Viewer Act of 1994 (17 U.S.C. 119 
note; Public Law 103-369; 108 Stat. 3481) is amended by striking 
``December 31, 1999'' and inserting ``December 31, 2004''.

SEC. 4. COMPUTATION OF ROYALTY FEES FOR SATELLITE CARRIERS.

  Section 119(c) of title 17, United States Code, is amended by adding 
at the end the following new paragraph:
          ``(4) Reduction.--
                  ``(A) Superstation.--The rate of the royalty fee in 
                 effect on January 1, 1998, payable in each case under 
                subsection (b)(1)(B)(i) shall be reduced by 30 percent.
                  ``(B) Network.--The rate of the royalty fee in effect 
                on January 1, 1998, payable under subsection 
                (b)(1)(B)(ii) shall be reduced by 45 percent.
          ``(5) Public broadcasting service as agent.--For purposes of 
        section 802, with respect to royalty fees paid by satellite 
        carriers for retransmitting the Public Broadcasting Service 
        satellite feed, the Public Broadcasting Service shall be the 
        agent for all public television copyright claimants and all 
        Public Broadcasting Service member stations.''.

SEC. 5. PUBLIC BROADCASTING SERVICE SATELLITE FEED; DEFINITIONS.

  (a) Secondary Transmissions.--Section 119(a)(1) of title 17, United 
States Code, is amended--
          (1) by striking the paragraph heading and inserting ``(1) 
        Superstations and pbs satellite feed.--'';
          (2) by inserting ``or by the Public Broadcasting Service 
        satellite feed'' after ``superstation''; and
          (3) by adding at the end the following: ``In the case of the 
        Public Broadcasting Service satellite feed, 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 
                Copyright Compulsory License Improvement Act,
        whichever is earlier, the statutory license created by this 
        section shall be conditioned on the Public Broadcasting Service 
        certifying to the Copyright Office on an annual basis that its 
        membership supports the secondary transmission of the Public 
        Broadcasting Service satellite feed, and providing notice to 
        the satellite carrier of such certification.''.
  (b) Definitions.--Section 119(d) of title 17, United States Code, is 
amended by adding at the end the following:
          ``(12) Public broadcasting service satellite feed.--The term 
        `Public Broadcasting Service satellite feed' means the national 
        satellite feed distributed by the Public Broadcasting Service 
        consisting of educational and informational programming 
        intended for private home viewing, to which the Public 
        Broadcasting Service holds national terrestrial broadcast 
        rights.
          ``(13) Local market.--The term `local market' has the meaning 
        given that term in section 122(j)(2).
          ``(14) Television broadcast station.--The term `television 
        broadcast station' has the meaning given that term in section 
        122(j)(5).''.

SEC. 6. LOCAL TO LOCAL RETRANSMISSIONS.

  Section 119 of title 17, United States Code, is amended--
          (1) in subsection (a)--
                  (A) in paragraph (1), by striking ``(6)'' and 
                inserting ``(5)'';
                  (B) in paragraph (2)--
                          (i) by striking
          ``(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)''
                         and inserting
          ``(2) Network stations.--Subject to the provisions of 
        paragraphs (3), (4), and (5)'' and running in the remaining 
        text of the subparagraph;
                          (ii) by adding at the end of paragraph (2) 
                        the following: ``Notwithstanding the preceding 
                        provisions of this paragraph, secondary 
                        transmissions of programming contained in a 
                        primary transmission made by a network station 
                        and embodying a performance or display of a 
                        work shall not be subject to statutory 
                        licensing under this section in a local market 
                        in which the satellite carrier, or another 
                        satellite carrier, is serving subscribers in 
                        that market with 2 or more television broadcast 
                        stations located in that market pursuant to 
                        section 122.''; and
                          (iii) by striking subparagraphs (B) and (C);
                  (C) in paragraph (3), by striking ``, or has failed 
                to make the submissions to networks required by 
                paragraph (2)(C)''; and
                  (D) by striking paragraphs (5), (8), (9), and (10) 
                and redesignating paragraphs (6) and (7) as paragraphs 
                (5) and (6), respectively; and
          (2) in subsection (d), by striking paragraphs (10) and (11).

SEC. 7. APPLICATION OF FEDERAL COMMUNICATIONS COMMISSION REGULATIONS.

  Section 119(a) of title 17, United States Code, is amended--
          (1) in paragraph (1), by inserting ``the satellite carrier is 
        in compliance with the rules, regulations, or authorizations of 
        the Federal Communications Commission governing the carriage of 
        television broadcast station signals,'' after ``satellite 
        carrier to the public for private home viewing,''; and
          (2) in paragraph (2), by inserting ``the satellite carrier is 
        in compliance with the rules, regulations, or authorizations of 
        the Federal Communications Commission governing the carriage of 
        television broadcast station signals,'' after ``satellite 
        carrier to the public for private home viewing,''.

SEC. 8. RETRANSMISSION CONSENT.

  Section 325(b) of the Communications Act of 1934 (47 U.S.C. 325(b)) 
is amended--
          (1) by striking paragraphs (1) and (2) and inserting the 
        following:
  ``(b)(1) No cable system or other multichannel video programming 
distributor shall retransmit the signal of a broadcasting station, or 
any part thereof, except--
          ``(A) with the express authority of the 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 337, 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 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; 
                and
                  ``(ii) as of July 1, 1998, such station was 
                retransmitted by a satellite carrier under the 
                statutory license provided in section 119 of title 17, 
                United States Code;
          ``(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 located in an area in 
        which such station may not assert its rights not to have its 
        signal duplicated under the Commission's network nonduplication 
        regulations; or
          ``(D) retransmission by a cable operator or other 
        multichannel video provider of the signal of a television 
        broadcast station outside the station's local market if such 
        signal was obtained from a satellite carrier and--
                  ``(i) the originating station was a superstation on 
                May 1, 1991; and
                  ``(ii) as of July 1, 1998, such station was 
                retransmitted by a satellite carrier under the 
                statutory license provided in 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 effective date of the Satellite 
Television Improvement 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 limitation contained in paragraph (2). Such 
regulations shall establish election time periods that correspond with 
those regulations adopted under subparagraph (B). The rulemaking shall 
be completed within 180 days after the effective date of the Satellite 
Television Improvement Act.''; and
          (3) by adding at the end the following new paragraph:
  ``(7) For purposes of this subsection:
          ``(A) The term `superstation' means a television broadcast 
        station, other than a network station, licensed by the 
        Commission that is secondarily transmitted by a satellite 
        carrier.
          ``(B) The term `satellite carrier' has the meaning given that 
        term in section 119(d) of title 17, United States Code.''.

SEC. 9. MUST-CARRY FOR SATELLITE CARRIERS RETRANSMITTING TELEVISION 
                    BROADCAST SIGNALS.

  Title III of the Communications Act of 1934 is amended by inserting 
after section 337 the following new section:

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

  ``(a) Carriage Obligations.--Each satellite carrier providing direct 
to home service of a television broadcast station to subscribers 
located within the local market of such station pursuant to section 122 
of title 17, United States Code, shall, not later than January 1, 2002, 
carry all television broadcast stations located within that local 
market. Carriage of additional television broadcast stations within the 
local market shall be at the discretion of the satellite carrier, 
subject to section 325(b).
  ``(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. The selection of a local receive facility by a 
        satellite carrier shall not be made in a manner that frustrates 
        the purposes of this section.
          ``(2) Regulations.--The regulations issued under subsection 
        (g) shall set forth the obligations necessary to carry out this 
        subsection.
  ``(c) Duplication Not Required.--Notwithstanding subsection (a), a 
satellite carrier shall not be required to carry the signal of any 
local television broadcast station that substantially duplicates the 
signal of another local television broadcast station which is 
secondarily transmitted by the satellite carrier, or to carry the 
signals of more that one local television broadcast station affiliated 
with a particular broadcast network (as the term is defined by 
regulation).
  ``(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 station to subscribers in that station's local 
market on contiguous channels 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 the signal of such 
        station or has otherwise failed to comply with the channel 
        positioning or repositioning or other requirements of this 
        section. The satellite carrier shall, within 30 days of such 
        written notification, respond in writing to such notification 
        and either commence to carry 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 the channel positioning and repositioning or 
        other requirements of this section. A local television 
        broadcast station that is denied carriage or channel 
        positioning or repositioning in accordance with this section by 
        a satellite carrier may obtain review of such denial by filing 
        a complaint with the Commission. Such complaint shall allege 
        the manner in which such satellite carrier has failed to meet 
        its obligations and the basis for such allegations.
          ``(2) Opportunity to respond.--The Commission shall afford 
        such satellite carrier and 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, the Commission shall determine 
        whether the satellite carrier has met its obligations under 
        this section. If the Commission determines that the satellite 
        carrier has failed to meet such obligations, the Commission 
        shall order the satellite carrier to reposition the complaining 
        station or, in the case of an obligation to carry a station, to 
        commence carriage of the station and to continue such carriage 
        for at least 12 months. If the Commission determines that the 
        satellite carrier has fully met the requirements of this 
        section, it shall dismiss the complaint.
  ``(g) Regulations by Commission.--Within 180 days after the effective 
date of this section, the Commission shall, following a rulemaking 
proceeding, issue regulations implementing the requirements imposed by 
this section.
  ``(h) Definitions.--As used in this section:
          ``(1) Television broadcast station.--The term `television 
        broadcast station' means a full-power television broadcast 
        station, and does not include a low-power or translator 
        television broadcast station.
          ``(2) Local market.--The term `local market' means the 
        designated market area in which a station is located.
          ``(3) Designated market area.--The term `designated market 
        area' means a designated market area, as determined by the 
        Nielsen Media Research and published in the DMA Market and 
        Demographic Report or, if no longer published, as determined by 
        another commercial publication that delineates television 
        markets based on viewing patterns.
          ``(4) Local receive facility.--The term local receive 
        facility means the reception point in the local market of a 
        television broadcast station or in a market contiguous to the 
        local market of a television broadcast station at which a 
        satellite carrier initially receives the signal of the station 
        for purposes of transmission of such signals to the facility 
        which uplinks the signals to the carrier's satellites for 
        secondary transmission to the satellite carrier's subscribers. 
        The designation of a local receive facility by a satellite 
        carrier shall not be used to undermine or evade the carriage 
        requirements imposed by this section.''.

SEC. 10. NETWORK NONDUPLICATION; SYNDICATED EXCLUSIVITY AND SPORTS 
                    BLACKOUT.

  (a) Regulations.--
          (1) In general.--Within 45 days after the effective date of 
        this Act, the Federal Communications Commission shall commence 
        a rulemaking 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, and where technologically feasible and 
        economically reasonable, such regulations shall, subject to 
        paragraph (2), include the same level of protection accorded 
        retransmissions of television broadcast signals by cable 
        systems for network nonduplication (47 C.F.R. 76.92), 
        syndicated exclusivity (47 C.F.R. 151), and sports blackout (47 
        C.F.R. 76.67). The Commission shall complete all action 
        necessary to prescribe the regulations required by this section 
        so that the regulations shall become effective within 1 year 
        after the date of the enactment of this Act.
          (2) Network nonduplication.--The network nonduplication 
        regulations required under paragraph (1) shall allow a network 
        television broadcast station to assert nonduplication rights--
                  (A) against a satellite carrier throughout that 
                station's local market if that satellite carrier is 
                retransmitting that station pursuant to section 122 of 
                title 17, United States Code, or other television 
                broadcast stations located in the same local market 
                pursuant to section 122 of title 17, United States 
                Code, except for television broadcast stations located 
                in that same market that are affiliated with the same 
                network as the station, to subscribers located in that 
                station's local market; or
                  (B) against a satellite carrier retransmitting 
                television broadcast stations pursuant to section 119 
                of title 17, United States Code, in the geographic area 
                in which the signal of that television broadcast 
                station is of Grade B intensity as defined by the 
                Federal Communications Commission on March 1, 1999, in 
                section 73.683(a) of title 47, Code of Federal 
                Regulations, based upon the Individually Located 
                Longley-Rice methodology described by the Federal 
                Communications Commission in its Docket No. 98-201, but 
                such geographic area shall not extend beyond the local 
                market of such station.
        If a subscriber's network service is terminated as a result of 
        network nonduplication protection asserted by a local network 
        television broadcast station under subparagraph (B), or as a 
        result of the provisions of section 119 of title 17, United 
        States Code, the satellite carrier shall provide to the 
        subscriber free of charge an over-the-air television broadcast 
        receiving antenna that will provide the subscriber with an 
        over-the-air signal of Grade B intensity for those network 
        stations that were terminated as a result of subparagraph (B).
          (3) Waivers.--(A) The network nonduplication protection 
        described in paragraph (2)(b) shall not apply to a subscriber 
        located in the geographic area that is identified by the 
        Individually Located Longley-Rice methodology described bythe 
Federal Communications Commission in its Docket No. 98-201 who files 
with the satellite carrier a written waiver with respect to that 
subscriber's household obtained from the network station whose local 
market is in that geographic area, allowing the subscriber to receive 
satellite service of another network station affiliated with that same 
network. The local network station and the satellite carrier shall 
maintain a file available to the public that contains such waiver.
          (B) If a subscriber within the local market of a network 
        station petitions the Federal Communications Commission with 
        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, as in effect on March 1, 1999, 
        demonstrating that the household in which the subscriber 
        resides does not receive an over-the-air signal of the network 
        station of Grade B intensity, the network station shall have 30 
        days in which to file with the Commission an objection to the 
        petition. If the network station does not file a timely 
        objection, then the station may not assert network 
        nonduplication protection described in paragraph (2)(B) with 
        respect to that subscriber's household. If the station does 
        file a timely objection, then the Commission shall have 120 
        days in which to determine the sufficiency of the subscriber's 
        petition. If the Commission determines that the petition is 
        sufficient, then The network nonduplication protection 
        described in paragraph (2)(B) shall not apply to that 
        subscriber's household.
          (4) Interim provisions.--Until the Federal Communications 
        Commission issues regulations under paragraphs (1) and (3), no 
        subscriber whose household is located outside the Grade A 
        contour of a network station shall have his or her satellite 
        service of another network station affiliated with that same 
        network terminated as a result of the provisions of section 119 
        of title 17, United States Code.
          (5) Local market defined.--The term ``local market'' has the 
        meaning provided in section 337(h) of the Communications Act of 
        1934, as added by section 3 of this Act.
  (b) Deferred Applicability of Amendments to Section 119 of Title 17, 
United States Code.--Notwithstanding the amendments to section 119 of 
title 17, United States Code, made by this Act, until the regulations 
regarding network nonduplication protection are established under 
subsection (a), the statutory license under subsection (a) of such 
section 119 for secondary transmissions of primary transmissions of 
programming contained in a primary transmission made by a network 
station (as defined in section 119(d) of title 17, United States Code, 
as in effect on the day before the effective date of this Act) shall be 
limited to secondary transmissions to persons who reside in unserved 
households (as defined in section 119(d) of title 17, United States 
Code, as in effect on the day before the effective date of this Act).

SEC. 11. STUDY ON TECHNICAL AND ECONOMIC IMPACT OF MUST-CARRY ON 
                    DELIVERY OF LOCAL SIGNALS.

  Not later than July 1, 2000, the Register of Copyrights and the 
Federal Communications Commission shall submit to the Congress a joint 
report that sets forth in detail their findings and conclusions with 
respect to the technical feasibility of imposing the requirements of 
section 337 of the Communications Act of 1934 on satellite carriers 
that deliver local signals, and the technical and economic impact of 
such section on the ability of satellite carriers to serve multiple 
television markets with retransmission of local television broadcast 
stations. In preparing this report, the Register of Copyrights and the 
Commission shall give particular consideration to how section 337 of 
the Communications Act of 1934 affects the technical limitations and 
economic incentives for satellite retransmissions of local television 
broadcast signals in television markets other than the 100 largest 
television markets in the United States (as determined by the Nielsen 
Media Research and published in the DMA Market and Demographic Report).

SEC. 12. EFFECTIVE DATE.

  This Act and the amendments made by this Act shall take effect on 
July 1, 1999, except that--
          (1) the amendments made by section 5 shall take effect on the 
        date of the enactment of this Act; and
          (2) the amendment made by section 6(1)(B)(ii) shall take 
        effect on the date that is 1 year after the date of the 
        enactment of this Act.

                          Purpose and Summary

    H.R. 1027, the ``Copyright Compulsory License Improvement 
Act,'' extends and enhances the statutory framework for the 
retransmission of television broadcast signals by satellite 
carriers to their subscribers. H.R. 1027: (1) creates a new 
copyright statutory license for the retransmission of local 
television broadcast stations; (2) extends the expiration date 
of the section 119 copyright compulsory license for the 
retransmission of distant television broadcast stations, and 
reduces the royalty fee for that license; (3) creates full 
must-carry rights for all television broadcast stations in a 
local market once a satellite carrier begins local service in 
that market, and prohibits the importation of distant signals 
in that market that duplicate the network programming of a 
local station as conditions of the copyright license; and (4) 
protects local broadcaster programming exclusivity rights 
through imposition of network nonduplication, syndicated 
exclusivity and sports blackout modeled after the rules 
applicable to the cable industry, making the protection of such 
rights a condition of the copyright license.

                Background and Need for the Legislation

    When Congress passed the Satellite Home Viewer Act in 1988, 
few Americans were familiar with satellite television. Those 
who were typically resided in rural areas of the country where 
the only means of receiving television programming was through 
use of a large, backyard C-band satellite dish. Congress 
recognized the importance of providing these people with access 
to broadcast programming and created a compulsory copyright 
license in the Satellite Home Viewer Act that enabled satellite 
carriers to easily license the copyrights to the broadcast 
programming that they retransmitted to their subscribers.
    The 1988 Act fostered a boom in the satellite television 
industry. Coupled with the development of high-powered digital 
satellite service, or DBS, which delivers programming to a 
satellite dish practically the size of a dinner plate, the 
satellite industry now serves homes nationwide with a wide 
range of high quality programming. Satellite is no longer a 
rural service, and it offers a competitive alternative to other 
providers of multichannel video programming; in particular, 
cable television. Because satellite can provide direct 
competition with the cable industry, it is in the interest of 
Congress to ensure that satellite operates under a copyright 
framework that permits it to be an effective competitor.
    The compulsory copyright license created by the 1988 Act 
was limited to a five-year period to enable Congress to 
consider its effectiveness and renew it where necessary. The 
license was renewed in 1994 for an additional five years and 
amendments made that were intended to increase the enforcement 
of the network territorial restrictions of the compulsory 
license. Two-year transitional provisions were created to 
enable local network broadcasters to challenge satellite 
subscribers' receipt of satellite network service where the 
local network broadcaster had reason to believe that these 
subscribers received an adequate off-the-air signal from the 
broadcaster.
    The satellite license is slated to expire at the end of 
this year, requiring Congress to again consider the copyright 
licensing regime for satellite retransmission of over-the-air 
television broadcast stations. In passing this legislation, the 
Committee was guided by several principles. First, the 
Committee believes that promotion of competition in the 
marketplace for delivery of multichannel video programming is 
an effective policy to reduce costs to consumers. To that end, 
it is important that the satellite industry be afforded a 
statutory scheme for licensing television broadcast programming 
similar to that of the cable industry. At the same time, the 
practical differences between the two industries must be 
recognized and accounted for.
    Second, the Committee reasserts the importance of 
protecting and fostering the system of television networks as 
they relate to the concept of localism. It is well recognized 
that television broadcast stations provide valuable programming 
tailored to local needs, such as news, weather, special 
announcements and information related to local activities. To 
that end, the Committee has adopted provisions that grant local 
broadcast stations retransmission rights in their signals; 
must-carry rights to assure that when one local station is 
being retransmitted in a market by a satellite carrier, then 
all must be carried; and network nonduplication, syndicated 
exclusivity and sports blackout provisions to protect local 
broadcasters' program exclusivity rights.
    Finally, the Committee has structured the legislation in an 
effort to encourage satellite carriers to offer their 
subscribers local television signals and eliminate the 
satellite industry's reliance upon retransmission of distant 
signals. Although the legislation promotes satellite 
retransmission of local stations, the Committee recognizes the 
continued need to monitor the effects of distant signal 
importation by satellite. To that end, the compulsory license 
for retransmission of distant signals is extended for a period 
of five years, to afford Congress the opportunity to evaluate 
the effectiveness and continuing need for that license at the 
end of the five-year period.

                                Hearings

    On Thursday, February 25, 1999, the Committee held a 
legislative hearing on H.R. 768, the ``Copyright Compulsory 
License Improvement Act.'' The provisions of H.R. 768 were 
incorporated by amendment into H.R. 1027 during consideration 
by the Subcommittee on Courts and Intellectual Property on 
March 18, 1999. The following individuals testified at the 
hearing: Williams J. Roberts, Senior Attorney for Compulsory 
Licenses, Copyright Office of the United States; Cullie 
Tarleton, General Manager of WCCB-TV on behalf of the National 
Association of Broadcasters; David Moskowitz, Senior Vice 
President and General Counsel for Echostar Communications; 
Michael R. Mountford, Executive Vice President for DSI Systems, 
Incorporated; John H. Hutchinson, Executive Vice President and 
Chief Operating Officer for Local TV on Satellite; Fritz E. 
Attaway, Senior Vice President for Congressional Affairs and 
General Counsel for the Motion Picture Association of America; 
and Thomas J. Ostertag, General Counsel of the Office of the 
Commissioner of Major League Baseball.

                        Committee Consideration

    On March 18, 1999, the Subcommittee on Courts and 
Intellectual Property met in open session and ordered reported 
the bill H.R. 1027 with an amendment in the nature of a 
substitute, and one amendment to the amendment in the nature of 
a substitute, by a voice vote, a quorum being present. On March 
24, 1999, the Committee met in open session and ordered 
reported favorably the bill H.R. 1027 with an en bloc 
amendment, by a voice vote, a quorum being present.

                         Vote of the Committee

    H.R. 1027 was reported by voice vote on March 24, 1999, 
with no objection heard.

                      Committee Oversight Findings

    In compliance with clause 3(c)(1) of rule XI of the Rules 
of the House of Representatives, the Committee reports that the 
findings and recommendations of the Committee, based on 
oversight activities under clause 2(b)(1) of rule X of the 
Rules of the House of Representatives, are incorporated in the 
descriptive portions of this report.

         Committee on Government Reform and Oversight Findings

    No findings or recommendations of the Committee on 
Government Reform and Oversight were received as referred to in 
clause 3(c)(4) of rule XIII of the Rules of the House of 
Representatives.

               New Budget Authority and Tax Expenditures

    Clause 3(c)(2) of House rule XIII is inapplicable because 
this legislation does not provide new budgetary authority or 
increased tax expenditures.

                        Committee Cost Estimate

    In compliance with clause 3(d)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee believes that 
the bill will have no cost for the current fiscal year 2000, 
and that there will be no cost incurred in carrying out H.R. 
1027 for the next five fiscal years.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds the authority for 
this legislation in Article 1, section 8, clause 8 of the 
Constitution.

                      Section-by-Section Analysis

Section 1--Title

    The title of the bill is the ``Copyright Compulsory License 
Improvement Act.''

Section 2--Limitations on exclusive rights; secondary transmissions by 
        satellite carriers within local markets

    Section 2 of the bill creates a new, permanent compulsory 
license, found at section 122 of the Copyright Act of 1976, for 
the retransmission of television broadcast stations by 
satellite carriers to subscribers located within the local 
markets of those stations.
    Creation of a new compulsory license for retransmission of 
local signals is necessary because the current section 119 
license is limited to the retransmission of distant signals by 
satellite. The section 122 license allows satellite carriers 
for the first time to provide their subscribers with the TV 
signals they want most: their local stations. A carrier may 
retransmit the signal of a network station (or superstation) to 
all subscribers who reside within the local market of that 
station, without the burden of determining whether the 
subscriber resides in an unserved household. The local market 
for a television station will be determined by the Federal 
Communications Commission and will correspond to the zone 
established by the Commission for mandatory carriage by 
satellite of local signals.
    Because the section 122 license is permanent, subscribers 
may obtain their local networks and superstations without fear 
that their broadcast service may be turned off at a future 
date. In addition, satellite carriers may deliver local 
stations to commercial establishments as well as homes, as the 
cable industry does under its license. These amendments create 
parity between the satellite and cable industries in the 
provision of television broadcast stations.
    In order for a satellite carrier to be eligible for this 
license, the carrier must be in full compliance with all 
applicable rules and regulations of the Federal Communications 
Commission, including any must-carry or programming exclusivity 
requirements that the Commission may adopt by regulation or 
law. Failure to fully comply with Commission rules with respect 
to retransmission of one or more stations in the local market 
precludes the carrier from making use of the section 122 
license for all local retransmission in that market. Thus, for 
example, if a satellite carrier fails to carry a local station 
as required by Commission rule or regulation, then the carrier 
loses the section 122 license for the stations that it is 
retransmitting in the local market of those stations.
    Because the copyrighted programming contained on local 
broadcast programming is already licensed with the expectation 
that all viewers in the local market will be able to view the 
programming, the section 122 license is a royalty-free license. 
Satellite carriers must, however, provide local broadcasters 
with lists of their subscribers receiving local stations so 
that broadcasters may verify that satellite carriers are making 
proper use of the license. For each television broadcast 
station that the satellite carrier retransmits locally, the 
satellite carrier must send a list of only those subscribers, 
listed alphabetically including their street address, county 
and zip code, in the market that are receiving the station. The 
subscriber information supplied to broadcasters is for 
verification purposes only and may not be used by broadcasters 
for other reasons.
    Satellite carriers are liable for copyright infringement, 
and subject to the full remedies of the Copyright Act, if they 
violate one or more of the following requirements of the 
section 122 license. First, satellite carriers may not in any 
way willfully alter the programming contained on a local 
broadcast station.
    Second, satellite carriers may not use the section 122 
license to retransmit a television broadcast station to a 
subscriber located outside the local market of the station. 
Retransmission of a station to a subscriber located outside the 
station's local market is covered by section 119, provided that 
all conditions of that license are satisfied. If a carrier 
willfully or repeatedly violates this limitation on a 
nationwide basis, then the carrier may be enjoined from 
retransmitting that signal. If the broadcast station involved 
is a network station, then the carrier could lose the right to 
retransmit any network stations affiliated with that same 
network. If the willful or repeated violation of the 
restriction is performed on a local or regional basis, then the 
right to retransmit the station (or, if a network station, then 
all other stations affiliated with that network) can be 
enjoined on a local or regional basis, depending upon the 
circumstances. In addition to termination of service on a 
nationwide or local or regional basis, statutory damages are 
available up to $250,000 for each 6-month period during which 
the pattern or practice of violations was carried out. 
Satellite carriers have the burden of proving that they are not 
improperly making use of the section 122 license to serve 
subscribers outside the local markets of the television 
broadcast stations they are providing. Local broadcasters are 
given standing to sue for infringement of the section 122 
license by amendment of chapter 501 of the Copyright Act.
    The section 122 license is limited in geographic scope to 
locations in the United States, including any commonwealth, 
territory or possession of the United States. In addition, the 
bill makes it clear that local retransmission of television 
broadcast stations to subscribers for viewing is governed 
solely by the section 122 license and that no provision of the 
section 111 cable compulsory license should be interpreted to 
allow satellite carriers to make local retransmission of 
television broadcast stations under that license. Likewise, no 
provision of the section 119 license (or any other law) should 
be interpreted as authorizing local-into-local retransmission 
by satellite, since the section 119 license is limited to 
retransmission by satellite of distant television broadcast 
signals.
    The Committee acknowledges that authorization and 
encouragement of local signals on satellite will result in a 
proliferation of the number of television stations that will be 
uplinked and available on satellites that serve the United 
States. The Committee does not intend, however, that the 
section 122 license be construed in such a way as to prevent 
stations that are uplinked principally for delivery as local 
signals under section 122 be prohibited from also being 
delivered as distant signals under section 119, provided that 
all the requirements of section 119 are met. If a satellite 
carrier uplinks a station and delivers it to a subscriber 
located in that station's local market, then the carrier may 
make use of the section 122 license. The carrier may also 
retransmit that same station to subscribers in distant markets 
under the section 119 license, provided that all the 
requirements of section 119 are met.

Section 3--Extension of effect of amendments to section 119 of title 
        17, United States Code.

    The section 119 satellite compulsory license is extended 
for a period of five years by changing the expiration date of 
the legislation from December 31, 1999, to December 31, 2004. 
It is understood that should the section 119 license be allowed 
to expire in 2004, it shall do so at midnight on December 31, 
2004, so that the license will cover the entire period of the 
second accounting period of 2004.

Section 4--Computation of royalty fees for satellite carriers

    H.R. 1027 reduces the royalty fees currently paid by 
satellite carriers for the retransmission of network and 
superstations by 45 percent and 30 percent, respectively. These 
are reductions of the 27-cent royalty fees made effective by 
the Librarian of Congress on January 1, 1998. The reductions 
take effect on July 1, 1999, which is the beginning of the 
second accounting period for 1999, and apply to all accounting 
periods for the five-year extension of the section 119 license.
    In addition, section 119(c) of title 17 is amended to 
clarify that in royalty distribution proceedings conducted 
under section 802 of the Copyright Act, the Public Broadcasting 
Service may act as agent for all public television copyright 
claimants and all Public Broadcasting Service member stations.

Section 5--Public Broadcasting Service satellite feed

    H.R. 1027 extends the section 119 license to cover the 
copyrighted programming carried on the Public Broadcasting 
Service's national satellite feed. The national satellite feed 
is treated as a superstation for compulsory license purposes, 
thereby avoiding the unserved householdrestriction applicable 
to network signals. Also, the bill requires that PBS must certify to 
the Copyright Office on an annual basis--subsequent to the date on 
which a majority of satellite subscribers are able to receive at least 
one noncommercial educational television broadcast station located in 
their local market, or two years after the effective date of H.R. 1027, 
whichever is earlier--that the PBS membership continues to support 
retransmission of the national satellite feed under the section 119 
compulsory license.

Section 6--Local to local limitations retransmission

    The ``unserved household'' limitation of the section 119 
license, is removed from the Copyright Act and contained under 
the rubric of network nonduplication protection. Network 
nonduplication protection is established in section 10 of the 
bill.
    In addition to creating network nonduplication protection, 
the Committee is making another significant amendment to the 
section 119 compulsory license in an effort to encourage the 
satellite industry to provide their subscribers with their 
local network signals and reduce the reliance upon distant 
signals. In those circumstances where a satellite carrier 
begins local service of two or more network stations in a 
television market, no distant signals of those networks that 
the carrier is providing locally may be imported into the 
market. This provision applies to both the satellite carrier 
providing the local service--such that the carrier cannot 
provide both the local and a distant affiliate of the same 
network--as well as other satellite carriers operating in the 
market, who would be prohibited from importing a distant signal 
of the same network that another carrier is providing locally 
in the market. The Committee believes that the provision will 
create a strong incentive for all satellite carriers to offer 
local network signals and will reduce the satellite industry's 
reliance on distant network signals.

Section 7--Application of Federal Communications Commission regulations

    The section 119 license is amended to clarify that 
satellite carriers must comply with all rules, regulations, and 
authorizations of the Federal Communications Commission in 
order to obtain the benefits of the section 119 license. This 
would include any programming exclusivity provisions that the 
Commission may adopt by law or regulation. Thus, for example, 
if a satellite carrier retransmitted a network station to a 
subscriber or subscribers in violation of FCC network 
nonduplication rules, then the carrier could not claim that it 
had a copyright compulsory license to make such retransmission 
and would be subject to an action for infringement if it 
distributed programming without authorization from the owner.

Section 8--Retransmission consent

    H.R. 1027 amends the retransmission consent provisions of 
section 325(b) of the Communications Act to account for changes 
in the satellite delivery of television broadcast stations. As 
a general rule, a satellite carrier must obtain retransmission 
consent from every television broadcast station that it 
retransmits to its subscribers. Two exemptions to 
retransmission consent are created for certain satellite 
retransmission. First, a satellite carrier need not obtain 
retransmission consent to retransmit a distant television 
broadcast station to its subscribers if the station was a 
superstation, as defined under section 119 of the Copyright 
Act, on May 1, 1991, and was retransmitted under the section 
119 license as of July 1, 1998. This exemption from 
retransmission consent is intended to apply to television 
broadcast stations such as WGN, Chicago, Illinois, that were 
previously considered exempt from retransmission consent but, 
because of their change in status to a network station under 
the Copyright Act, lost that exemption under current law.
    Second, retransmission consent does not apply to a network 
station that is retransmitted to subscribers who are outside 
the area of nonduplication protection that may be asserted by 
the local affiliate of the same network. This exemption allows 
satellite carriers to retransmit distant network signals to 
subscribers who previously resided in ``unserved households.''
    Third, a more general exemption to retransmission consent 
is created that applies to cable operators, satellite carriers, 
and other multichannel video providers. Retransmission consent 
need not be obtained for a television broadcast station that 
was a superstation, as defined under section 119 of the 
Copyright Act, on May 1, 1991, and was retransmitted by a 
satellite carrier under the section 119 license as of July 1, 
1998. The intention of this exemption is to grant superstations 
that have become cable networks, such as WTBS, retransmission 
consent rights to prohibit a satellite carrier from 
retransmitting the stations without their permission.
    The Federal Communications Commission is directed to 
commence a rulemaking proceeding within 45 days of enactment of 
H.R. 1027 to establish procedures for the exercise of 
retransmission consent rights. The rulemaking must be completed 
no later than 180 days from date of enactment.

Section 9--Must-carry for satellite carriers retransmitting television 
        broadcast signals

    H.R. 1027 creates must-carry obligations for satellite 
carriers retransmitting television broadcast signals as a 
condition of the copyright license. The provisions are similar 
to those applicable to the cable industry. Any satellite 
carrier that retransmits a television broadcast signal to 
subscribers residing within the local market of that signal 
must carry all the television stations in the local market to 
subscribers residing in the local market. This approach of 
``carry one, then carry all'' is subject to the retransmission 
consent election of section 8 of the bill. Thus, a satellite 
carrier does not have to carry a local television broadcast 
station if the station elects retransmission consent rather 
than must-carry. The ``local market'' of a broadcast station is 
defined as the station's Designated Market Area, as determined 
by Nielsen Media Research.
    The legislation tracks the cable must-carry provisions of 
the 1992 Cable Act by relieving satellite carriers from the 
burden of having to carry more than one affiliate of the same 
network if both of the affiliates are located in the same local 
market. Local broadcasters are also afforded some channel 
positioning rights and are required to provide a good quality 
signal to the satellite carrier's local receive facility in 
order to assert must-carry rights. Satellite carriers are 
forbidden from obtaining compensation from local broadcasters 
in exchange for carriage. The bill also provides a means for 
broadcasters to seek redress from the Federal Communications 
Commission for violations of the must-carry obligations.
    The Federal Communications Commission is directed to adopt 
regulations within 6 months of enactment of the legislation to 
implement the must-carry obligations for satellite. In no event 
shall the Commission impose less than full must-carry on 
satellite carriers that make local retransmission of television 
broadcast stations later than January 1, 2002.

Section 10--Network nonduplication; syndicated exclusivity and sports 
        blackout

    The Federal Communications Commission is directed to adopt 
network nonduplication, syndicated exclusivity and sports 
blackout rules applicable to satellite retransmission of 
television broadcast signals. To the extent possible, the 
Commission should model its new regulations after those that 
currently apply to the cable industry.
    The bill sets forth express network nonduplication 
provisions that will solve the problems associated with 
satellite delivery of network signals and the recent shut-offs 
of network signals that have occurred as the result of federal 
court injunctions. Local network broadcasters are granted 
network nonduplication protection against satellite carriers 
under two circumstances. First, for the satellite carrier that 
provides local retransmission, the local network broadcaster 
can assert nonduplication protection throughout its local 
market to insure that the satellite carrier offering local 
retransmission carries only the local network broadcaster, and 
does not provide a distant network station affiliated with that 
same network. Thus, satellite subscribers who reside within the 
local market of a network affiliate will receive only the local 
affiliate and not distant affiliates, which is the same 
restriction that applies to the cable industry.
    Second, the bill provides network nonduplication protection 
for the local broadcaster against a satellite carrier that does 
not offer local retransmission and is importing distant network 
signals. The local network station will receive nonduplication 
protection for all areas within its local market where the 
Individually Located Longley-Rice (ILLR) maps, recently adopted 
by the Federal Communications Commission, predicts that an 
over-the-air signal of Grade B intensity can be received. A 
satellite carrier would be prohibited from providing 
subscribers located in these areas with distant network 
stations unless one of two things occurs. First, if a 
subscriber located in such an area has obtained a written 
waiver from the local network broadcaster, then nonduplication 
protection would not apply. Second, if a subscriber conducts a 
signal intensity measurement at his or her household that is in 
accordance with FCC-prescribed standards, then the subscriber 
may petition the Commission to waive nonduplication protection 
and allow the subscriber to receive distant network signals. 
Any discrepancies regarding the sufficiency of the test will be 
resolved by the Commission.
    If a satellite subscriber's network service is terminated 
as a result of nonduplication protection asserted by a local 
affiliate, or as a result of the provisions of section 119 of 
the Copyright Act, then the satellite carrier must provide the 
subscriber with a free over-the-air television broadcast 
receiving antenna that will provide the subscriber with an 
over-the-air signal of Grade B intensity for those network 
stations that were terminated.
    The network nonduplication provisions of the bill will 
protect local broadcasters in addition to assuring that every 
consumer will have access to network broadcast stations. During 
the period in which the Federal Communications Commission 
adopts its network nonduplication regulations, the unserved 
household limitation in section 119 of the Copyright Act shall 
remain in place.

Section 11--Study on technical and economic impact of must-carry on 
        delivery of local signals

    The Federal Communications Commission and the Copyright 
Office are directed to report jointly to Congress on the 
effects of full must-carry for the retransmission of local 
signals by satellite, particularly in smaller television 
markets throughout the country.

Section 12--Effective date

    The amendments made by the bill take effect on July 1, 
1999, the first day of a new copyright accounting period for 
satellite carriers, except the amendments made by section 5, 
which take effect on date of enactment, and section 6(l)(B)(ii) 
which takes effect one year after date of enactment.

         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):

TITLE 17, UNITED STATES CODE

           *       *       *       *       *       *       *

            CHAPTER 1--SUBJECT MATTER AND SCOPE OF COPYRIGHT

Sec.
101.  Definitions.
     * * * * * * *
122.  Limitations on exclusive rights; secondary transmissions by 
          satellite carriers within local market.

           *       *       *       *       *       *       *

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.--] (1) Superstations and pbs 
        satellite feed.--Subject to the provisions of 
        paragraphs (3), (4), and [(6)] (5) of this subsection 
        and section 114(d), secondary transmissions of a 
        primary transmission made by a superstation or by the 
        Public Broadcasting Service satellite feed 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, the 
        satellite carrier is in compliance with the rules, 
        regulations, or authorizations of the Federal 
        Communications Commission governing the carriage of 
        television broadcast station signals, and the carrier 
        makes a direct or indirect charge for each 
        retransmission service to each household receiving the 
        secondary transmission or to a distributor that has 
        contracted with the carrier for direct or indirect 
        delivery of the secondary transmission to the public 
        for private home viewing. In the case of the Public 
        Broadcasting Service satellite feed, 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 
                Copyright Compulsory License Improvement Act,
        whichever is earlier, the statutory license created by 
        this section shall be conditioned on the Public 
        Broadcasting Service certifying to the Copyright Office 
        on an annual basis that its membership supports the 
        secondary transmission of the Public Broadcasting 
        Service satellite feed, and providing notice to the 
        satellite carrier of such certification.
          [(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).
                  [(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 thename 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.]
          (2) Network stations.--Subject to the provisions of 
        paragraphs (3), (4), and (5) 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, the satellite carrier is in compliance with 
        the rules, regulations, or authorizations of the 
        Federal Communications Commission governing the 
        carriage of television broadcast station signals, and 
        the carrier makes a direct or indirect charge for such 
        retransmission service to each subscriber receiving the 
        secondary transmission. Notwithstanding the preceding 
        provisions of this paragraph, secondary transmissions 
        of programming contained in a primary transmission made 
        by a network station and embodying a performance or 
        display of a work shall not be subject to statutory 
        licensing under this section in a local market in which 
        the satellite carrier, or another satellite carrier, is 
        serving subscribers in that market with 2 or more 
        television broadcast stations located in that market 
        pursuant to section 122.
          (3) Noncompliance with reporting and payment 
        requirements.--Notwithstanding the provisions of 
        paragraphs (1) and (2), the willful or repeated 
        secondary transmission to the public by a satellite 
        carrier of a primary transmission made by a 
        superstation or a network station and embodying a 
        performance or display of a work is actionable as an 
        act of infringement under section 501, and is fully 
        subject to the remedies provided by sections 502 
        through 506 and 509, where the satellite carrier has 
        not deposited the statement of account and royalty fee 
        required by subsection (b)[, or has failed to make the 
        submissions to networks required by paragraph (2)(C)].
          (4) Willful alterations.--Notwithstanding the 
        provisions of paragraphs (1) and (2), the secondary 
        transmission to the public by a satellite carrier of a 
        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 
                sub-

                scribers who do not reside in unserved 
                households, then in addition to the remedies 
                set forth in subparagraph (A)--
                          [(i) if the pattern or practice has 
                        been carried out on a substantially 
                        nationwide basis, the court shall order 
                        a permanent injunction barring the 
                        secondary transmission by the satellite 
                        carrier, for private home viewing, of 
                        the primary transmissions of any 
                        primary network station affiliated with 
                        the same network, and the court may 
                        order statutory damages of not to 
                        exceed $250,000 for each 6-month period 
                        during which the pattern or practice 
                        was carried out; and
                          [(ii) if the pattern or practice has 
                        been carried out on a local or regional 
                        basis, the court shall order a 
                        permanent injunction barring the 
                        secondary transmission, for private 
                        home viewing in that locality or 
                        region, by the satellite carrier of the 
                        primary transmissions of any primary 
                        network station affiliated with the 
                        same network, and the court may order 
                        statutory damages of not to exceed 
                        $250,000 for each 6-month period during 
                        which the pattern or practice was 
                        carried out.
                  [(C) Previous subscribers excluded.--
                Subparagraphs (A) and (B) do not apply to 
                secondary transmissions by a satellite carrier 
                to persons who subscribed to receive such 
                secondary transmissions from the satellite 
                carrier or a distributor before November 16, 
                1988.
                  [(D) Burden of proof.--In any action brought 
                under this paragraph, the satellite carrier 
                shall have the burden of proving that its 
                secondary transmission of a primary 
                transmission by a network station is for 
                private home viewing to an unserved household.]
          [(6)] (5) 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)] (6) 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 givingreasonable notice to the 
network station of the satellite carrier's intent to conduct the 
measurement.
                  [(B) Effect of measurement.--If the satellite 
                carrier conducts a signal intensity measurement 
                under subparagraph (A) and the measurement 
                indicates that--
                          [(i) the household is not an unserved 
                        household, the satellite carrier shall, 
                        within 60 days after the measurement is 
                        conducted, terminate the service to 
                        that household of the signal that is 
                        the subject of the challenge, and 
                        within 30 days thereafter notify the 
                        network station that made the challenge 
                        that service to that household has been 
                        terminated; or
                          [(ii) the household is an unserved 
                        household, the station challenging the 
                        service shall reimburse the satellite 
                        carrier for the costs of the signal 
                        measurement within 60 days after 
                        receipt of the measurement results and 
                        a statement of the costs of the 
                        measurement.
                  [(C) Limitation on measurements.--(i) 
                Notwithstanding subparagraph (A), a satellite 
                carrier may not be required to conduct signal 
                intensity measurements during any calendar year 
                in excess of 5 percent of the number of 
                subscribers within the network station's local 
                market that have subscribed to the service as 
                of the effective date of the Satellite Home 
                Viewer Act of 1994.
                  [(ii) If a network station challenges whether 
                a subscriber is an unserved household in excess 
                of 5 percent of the subscribers within the 
                network'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 satellite carrier 
                        who shall, within 60 days after receipt 
                        of the measurement, terminate the 
                        service to the household of the signal 
                        that is the subject of the challenge, 
                        and shall reimburse the station for the 
                        costs of the measurement within 60 days 
                        after receipt of the measurement 
                        results and a statement of such costs; 
                        or
                          [(II) the household is an unserved 
                        household, the station shall pay the 
                        costs of the measurement.
          [(9) Loser pays for signal intensity measurement; 
        recovery of measurement costs in a civil action.--In 
        any civil action filed relating to the eligibility of 
        subscribing households as unserved households--
                  [(A) a network station challenging such 
                eligibility shall, within 60 days after receipt 
                of the measurement results and a statement of 
                such costs, reimburse the satellite carrier for 
                any signal intensity measurement that is 
                conducted by that carrier in response to a 
                challenge by the network station nd 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.]

           *       *       *       *       *       *       *

  (c) Adjustment of Royalty Fees.--
          (1) * * *

           *       *       *       *       *       *       *

          (4) Reduction.--
                  (A) Superstation.--The rate of the royalty 
                fee in effect on January 1, 1998, payable in 
                each case under subsection (b)(1)(B)(i) shall 
                be reduced by 30 percent.
                  (B) Network.--The rate of the royalty fee in 
                effect on January 1, 1998, payable under 
                subsection (b)(1)(B)(ii) shall be reduced by 45 
                percent.
          (5) Public broadcasting service as agent.--For 
        purposes of section 802, with respect to royalty fees 
        paid by satellite carriers for retransmitting the 
        Public Broadcasting Service satellite feed, the Public 
        Broadcasting Service shall be the agent for all public 
        television copyright claimants and all Public 
        Broadcasting Service member stations.
  (d) Definitions.--As used in this section--
          (1) * * *

           *       *       *       *       *       *       *

          [(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.]
          (12) Public broadcasting service satellite feed.--The 
        term ``Public Broadcasting Service satellite feed'' 
        means the national satellite feed distributed by the 
        Public Broadcasting Service consisting of educational 
        and informational programming intended for private home 
        viewing, to which the Public Broadcasting Service holds 
        national terrestrial broadcast rights.
          (13) Local market.--The term ``local market'' has the 
        meaning given that term in section 122(j)(2).
          (14) Television broadcast station.--The term 
        ``television broadcast station'' has the meaning given 
        that term in section 122(j)(5).

           *       *       *       *       *       *       *

Sec. 122. Limitations on exclusive rights; secondary transmissions by 
                    satellite carriers within local markets

  (a) Secondary Transmissions of Television Broadcast Stations 
by Satellite Carriers.--A secondary transmission of a primary 
transmission of a television broadcast station into the 
station's local market shall be subject to statutory licensing 
under this section if--
          (1) the secondary transmission is made by a satellite 
        carrier to the public;
          (2) the satellite carrier is in compliance with the 
        rules, regulations, or authorizations of the Federal 
        Communications Commission governing the carriage of 
        television broadcast station signals; and
          (3) the satellite carrier makes a direct or indirect 
        charge for the secondary transmission to--
                  (A) each subscriber receiving the secondary 
                transmission; or
                  (B) a distributor that has contracted with 
                the satellite carrier for direct or indirect 
                delivery of the secondary transmission to the 
                public.
  (b) Reporting Requirements.--
          (1) Initial lists.--A satellite carrier that makes 
        secondary transmissions of a primary transmission made 
        by a network station under subsection (a) shall, within 
        90 days after commencing such secondary transmissions, 
        submit to that station a list identifying (by name in 
        alphabetical order and street address, including county 
        and zip code) only those subscribers located in that 
        station's local market to which the satellite carrier 
        currently makes secondary transmissions of that primary 
        transmission.
          (2) Subsequent lists.--After the list is submitted 
        under paragraph (1), the satellite carrier shall, on 
        the 15th of each month, submit to the station a list 
        identifying (by name and street address, including 
        county and zip code) any subscribers who have been 
        added or dropped as subscribers since the last 
        submission under this subsection.
          (3) Use of subscriber information.--Subscriber 
        information submitted by a satellite carrier under this 
        subsection may be used only for the purposes of 
        monitoring compliance by the satellite carrier with 
        this section.
          (4) Requirements of stations.--The submission 
        requirements of this subsection shall apply to a 
        satellite carrier only if the station 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.
  (c) No Royalty Fee Required.--A satellite carrier whose 
secondary transmissions are subject to statutory licensing 
under subsection (a) shall have no royalty obligation for such 
secondary transmissions.
  (d) Noncompliance With Reporting Requirements.--
Notwithstanding subsection (a), the willful or repeated 
secondary transmission to the public by a satellite carrier 
into the local market of a television broadcast station of a 
primary transmission made by that 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 under sections 502 through 506 
and 509, if the satellite carrier has not complied with the 
reporting requirements of subsection (b).
  (e) Willful Alterations.--Notwithstanding subsection (a), the 
secondary transmission to the public by a satellite carrier 
into the local market of a television broadcast station of a 
primary transmission made by that 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 
the primary transmitter during, or immediately before or after, 
the transmission of such program, is inany way willfully 
altered by the satellite carrier through changes, deletions, or 
additions, or is combined with programming from any other broadcast 
signal.
  (f) Violation of Territorial Restrictions on Statutory 
License for Television Broadcast Stations.--
          (1) Individual violations.--The willful or repeated 
        secondary transmission to the public by a satellite 
        carrier of a primary transmission made by a television 
        broadcast station and embodying a performance or 
        display of a work to a subscriber who does not reside 
        in that station's local market, and is not subject to 
        statutory licensing under section 119, is actionable as 
        an act of infringement under section 501 and is fully 
        subject to the remedies provided by sections 502 
        through 506 and 509, except that--
                  (A) no damages shall be awarded for such act 
                of infringement if the satellite carrier took 
                corrective action by promptly withdrawing 
                service from the ineligible subscriber; and
                  (B) any statutory damages shall not exceed $5 
                for such subscriber for each month during which 
                the violation occurred.
          (2) Pattern of violations.--If a satellite carrier 
        engages in a willful or repeated pattern or practice of 
        secondarily transmitting to the public a primary 
        transmission made by a television broadcast station and 
        embodying a performance or display of a work to 
        subscribers who do not reside in that station's local 
        market, and are not subject to statutory licensing 
        under section 119, then in addition to the remedies 
        under paragraph (1)--
                  (A) if the pattern or practice has been 
                carried out on a substantially nationwide 
                basis, the court shall order a permanent 
                injunction barring the secondary transmission 
                by the satellite carrier of the primary 
                transmissions of that television broadcast 
                station (and if such television broadcast 
                station is a network station, all other 
                television broadcast stations affiliated with 
                such network), and the court may order 
                statutory damages not exceeding $250,000 for 
                each 6-month period during which the pattern or 
                practice was carried out; and
                  (B) if the pattern or practice has been 
                carried out on a local or regional basis with 
                respect to more than one television broadcast 
                station (and if such television broadcast 
                station is a network station, all other 
                television broadcast stations affiliated with 
                such network), the court shall order a 
                permanent injunction barring the secondary 
                transmission in that locality or region by the 
                satellite carrier of the primary transmissions 
                of any television broadcast station, and the 
                court may order statutory damages not exceeding 
                $250,000 for each 6-month period during which 
                the pattern or practice was carried out.
  (g) Burden of Proof.--In any action brought under subsection 
(d), (e), or (f), the satellite carrier shall have the burden 
of proving that its secondary transmission of a primary 
transmission by a television broadcast station is made only to 
subscribers located within that station's local market.
  (h) Geographic Limitations on Secondary Transmissions.--The 
statutory license created by this section shall apply to 
secondary transmissions to locations in the United States, and 
any commonwealth, territory, or possession of the United 
States.
  (i) Exclusivity With Respect to Secondary Transmissions of 
Broadcast Stations by Satellite to Members of the Public.--No 
provision of section 111 or any other law (other than this 
section and section 119) shall be construed to contain any 
authorization, exemption, or license through which secondary 
transmissions by satellite carriers of programming contained in 
a primary transmission made by a television broadcast station 
may be made without obtaining the consent of the copyright 
owner.
  (j) Definitions.--In this section--
          (1) Distributor.--The term ``distributor'' means an 
        entity which contracts to distribute secondary 
        transmissions from a satellite carrier and, either as a 
        single channel or in a package with other programming, 
        provides the secondary transmission either directly to 
        individual subscribers or indirectly through other 
        program distribution entities.
          (2) Local market.--The ``local market'' of a 
        television broadcast station has the meaning given that 
        term under rules, regulations, and authorizations of 
        the Federal Communications Commission relating to 
        carriage of television broadcast signals by satellite 
        carriers.
          (3) Network station; satellite carrier; secondary 
        transmission.--The terms ``network station'', 
        ``satellite carrier'' and ``secondary transmission'' 
        have the meanings given such terms under section 
        119(d).
          (4) Subscriber.--The term ``subscriber'' means 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.
          (5) Television broadcast station.--The term 
        ``television broadcast station'' means an over-the-air, 
        commercial or noncommercial television broadcast 
        station licensed by the Federal Communications 
        Commission under subpart E of part 73 of title 47, Code 
        of Federal Regulations.

           *       *       *       *       *       *       *

CHAPTER 5--COPYRIGHT INFRINGEMENT AND REMEDIES

           *       *       *       *       *       *       *

Sec. 501. Infringement of copyright

  (a) * * *

           *       *       *       *       *       *       *

  (f) 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 122, a television broadcast 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 market of that 
station.

           *       *       *       *       *       *       *

                              ----------                              

           SECTION 4 OF THE SATELLITE HOME VIEWER ACT OF 1994

SEC. 4. TERMINATION.

  (a) Expiration of Amendments.--Section 119 of title 17, 
United States Code, as amended by section 2 of this Act, ceases 
to be effective on December 31, [1999] 2004.

           *       *       *       *       *       *       *

                              ----------                              

COMMUNICATIONS ACT OF 1934

           *       *       *       *       *       *       *

                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 given those 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 
broadcasting station, or any part thereof, except--
          (A) with the express authority of the 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 337, 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 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; and
                  (ii) as of July 1, 1998, such station was 
                retransmitted by a satellite carrier under the 
                statutory license provided in section 119 of 
                title 17, United States Code;
          (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 located in an area in which such station may 
        not assert its rights not to have its signal duplicated 
        under the Commission's network nonduplication 
        regulations; or
          (D) retransmission by a cable operator or other 
        multichannel video provider of the signal of a 
        television broadcast station outside the station's 
        local market if such signal was obtained from a 
        satellite carrier and--
                  (i) the originating station was a 
                superstation on May 1, 1991; and
                  (ii) as of July 1, 1998, such station was 
                retransmitted by a satellite carrier under the 
                statutory license provided in section 119 of 
                title 17, United States Code.
  (3)(A) * * *

           *       *       *       *       *       *       *

  (C) Within 45 days after the effective date of the Satellite 
Television Improvement 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 limitation 
contained in paragraph (2). Such regulations shall establish 
election time periods that correspond with those regulations 
adopted under subparagraph (B). The rulemaking shall be 
completed within 180 days after the effective date of the 
Satellite Television Improvement Act.

           *       *       *       *       *       *       *

  (7) For purposes of this subsection:
          (A) The term ``superstation'' means a television 
        broadcast station, other than a network station, 
        licensed by the Commission that is secondarily 
        transmitted by a satellite carrier.
          (B) The term ``satellite carrier'' has the meaning 
        given that term in section 119(d) of title 17, United 
        States Code.

           *       *       *       *       *       *       *

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

  (a) Carriage Obligations.--Each satellite carrier providing 
direct to home service of a television broadcast station to 
subscribers located within the local market of such station 
pursuant to section 122 of title 17, United States Code, shall, 
not later than January 1, 2002, carry all television broadcast 
stations located within that local market. Carriage of 
additional television broadcast stations within the local 
market shall be at the discretion of the satellite carrier, 
subject to section 325(b).
  (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. The selection of a 
        local receive facility by a satellite carrier shall not 
        be made in a manner that frustrates the purposes of 
        this section.
          (2) Regulations.--The regulations issued under 
        subsection (g) shall set forth the obligations 
        necessary to carry out this subsection.
  (c) Duplication Not Required.--Notwithstanding subsection 
(a), a satellite carrier shall not be required to carry the 
signal of any local television broadcast station that 
substantially duplicates the signal of another local television 
broadcast station which is secondarily transmitted by the 
satellite carrier, or to carry the signals of more that one 
local television broadcast station affiliated with a particular 
broadcast network (as the term is defined by regulation).
  (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 station 
to subscribers in that station's local market on contiguous 
channels 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 associatedwith 
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 the signal of such 
        station or has otherwise failed to comply with the 
        channel positioning or repositioning or other 
        requirements of this section. The satellite carrier 
        shall, within 30 days of such written notification, 
        respond in writing to such notification and either 
        commence to carry 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 the channel 
        positioning and repositioning or other requirements of 
        this section. A local television broadcast station that 
        is denied carriage or channel positioning or 
        repositioning in accordance with this section by a 
        satellite carrier may obtain review of such denial by 
        filing a complaint with the Commission. Such complaint 
        shall allege the manner in which such satellite carrier 
        has failed to meet its obligations and the basis for 
        such allegations.
          (2) Opportunity to respond.--The Commission shall 
        afford such satellite carrier and 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, the Commission 
        shall determine whether the satellite carrier has met 
        its obligations under this section. If the Commission 
        determines that the satellite carrier has failed to 
        meet such obligations, the Commission shall order the 
        satellite carrier to reposition the complaining station 
        or, in the case of an obligation to carry a station, to 
        commence carriage of the station and to continue such 
        carriage for at least 12 months. If the Commission 
        determines that the satellite carrier has fully met the 
        requirements of this section, it shall dismiss the 
        complaint.
  (g) Regulations by Commission.--Within 180 days after the 
effective date of this section, the Commission shall, following 
a rulemaking proceeding, issue regulations implementing the 
requirements imposed by this section.
  (h) Definitions.--As used in this section:
          (1) Television broadcast station.--The term 
        ``television broadcast station'' means a full-power 
        television broadcast station, and does not include a 
        low-power or translator television broadcast station.
          (2) Local market.--The term ``local market'' means 
        the designated market area in which a station is 
        located.
          (3) Designated market area.--The term ``designated 
        market area'' means a designated market area, as 
        determined by the Nielsen Media Research and published 
        in the DMA Market and Demographic Report or, if no 
        longer published, as determined by another commercial 
        publication that delineates television markets based on 
        viewing patterns.
          (4) Local receive facility.--The term local receive 
        facility means the reception point in the local market 
        of a television broadcast station or in a market 
        contiguous to the local market of a television 
        broadcast station at which a satellite carrier 
        initially receives the signal of the station for 
        purposes of transmission of such signals to the 
        facility which uplinks the signals to the carrier's 
        satellites for secondary transmission to the satellite 
        carrier's subscribers. The designation of a local 
        receive facility by a satellite carrier shall not be 
        used to undermine or evade the carriage requirements 
        imposed by this section.

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