In the House of Representatives, U. S.,

September 20, 1994.

Resolved, That the bill from the Senate (S. 2406) entitled ‘‘An Act to amend title 17, United States Code, relating

to the definition of a local service area of a primary transmitter, and for other purposes’’, do pass with the following

AMENDMENT:

Strike out all after the enacting clause and insert:

1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘Satellite Home Viewer

3 Act of 1994’’.

4 SEC. 2. STATUTORY LICENSE FOR SATELLITE CARRIERS.

5 Section 119 of title 17, United States Code, is amended

6 as follows:

7 (1) Subsection (a)(2)(C) is amended—

8 (A) by striking ‘‘90 days after the effective

9 date of the Satellite Home Viewer Act of 1988,

10 or’’;

11 (B) by striking ‘‘whichever is later,’’;

12 (C) by inserting ‘‘name and’’ after ‘‘identi13 fying (by’’ each place it appears; and

14 (D) by striking ‘‘, on or after the effective

15 date of the Satellite Home Viewer Act of 1988,’’.
2

•S 2406 EAH

1 (2) Subsection (a)(5) is amended by adding at

2 the end the following:

3 ‘‘(D) BURDEN OF PROOF.—In any action

4 brought under this paragraph, the satellite car5 rier shall have the burden of proving that its sec6 ondary transmission of a primary transmission

7 by a network station is for private home viewing

8 to an unserved household.’’.

9 (3) Subsection (b)(1)(B) is amended—

10 (A) in clause (i) by striking ‘‘12 cents’’ and

11 inserting ‘‘17.5 cents per subscriber in the case

12 of superstations not subject to syndicated exclu13 sivity under the regulations of the Federal Com14 munications Commission, and 14 cents per sub15 scriber in the case of superstations subject to

16 such syndicated exclusivity’’; and

17 (B) in clause (ii) by striking ‘‘3’’ and in18 serting ‘‘6’’.

19 (4) Subsection (c) is amended—

20 (A) in paragraph (1) by striking ‘‘December

21 31, 1992,’’;

22 (B) in paragraph (2)—

23 (i) in subparagraph (A) by striking

24 ‘‘July 1, 1991’’ and inserting ‘‘July 1,

25 1996’’; and
3

•S 2406 EAH

1 (ii) in subparagraph (D) by striking

2 ‘‘December 31, 1994’’ and inserting ‘‘De3 cember 31, 1999, or in accordance with the

4 terms of the agreement, whichever is later’’;

5 and

6 (C) in paragraph (3)—

7 (i) in subparagraph (A) by striking

8 ‘‘December 31, 1991’’ and inserting ‘‘Janu9 ary 1, 1997’’;

10 (ii) by amending subparagraph (D) to

11 read as follows:

12 ‘‘(D) ESTABLISHMENT OF ROYALTY FEES.—

13 In determining royalty fees under this para14 graph, the Copyright Arbitration Panel shall es15 tablish fees for the retransmission of network sta16 tions and superstations that most clearly rep17 resent the fair market value of secondary trans18 missions. In determining the fair market value,

19 the Panel shall base its decision on economic,

20 competitive, and programming information pre21 sented by the parties, including—

22 ‘‘(i) the competitive environment in

23 which such programming is distributed, the

24 cost for similar signals in similar private

25 and compulsory license marketplaces, and
4

•S 2406 EAH

1 any special features and conditions of the

2 retransmission marketplace;

3 ‘‘(ii) the economic impact of such fees

4 on copyright owners and satellite carriers;

5 and

6 ‘‘(iii) the impact on the continued

7 availability of secondary transmissions to

8 the public.’’;

9 (iii) in subparagraph (E) by striking

10 ‘‘60’’ and inserting ‘‘180’’; and

11 (iv) in subparagraph (G)—

12 (I) by striking ‘‘, or until Decem13 ber 31, 1994’’; and

14 (II) by inserting ‘‘or July 1,

15 1997, whichever is later’’ after ‘‘section

16 802(g)’’.

17 (5) Subsection (a) is amended—

18 (A) in paragraph (5)(C) by striking ‘‘the

19 Satellite Home Viewer Act of 1988’’ and insert20 ing ‘‘this section’’; and

21 (B) by adding at the end the following:

22 ‘‘(8) TRANSITIONAL SIGNAL INTENSITY MEAS23 UREMENT PROCEDURES.—

24 ‘‘(A) IN GENERAL.—Subject to subpara25 graph (C), upon a challenge by a network station
5

•S 2406 EAH

1 regarding whether a subscriber is an unserved

2 household within the predicted Grade B Contour

3 of the station, the satellite carrier shall, within

4 60 days after the receipt of the challenge—

5 ‘‘(i) terminate service to that household

6 of the signal that is the subject of the chal7 lenge, and within 30 days thereafter notify

8 the network station that made the challenge

9 that service to that household has been ter10 minated; or

11 ‘‘(ii) conduct a measurement of the sig12 nal intensity of the subscriber’s household to

13 determine whether the household is an

14 unserved household after giving reasonable

15 notice to the network station of the satellite

16 carrier’s intent to conduct the measurement.

17 ‘‘(B) EFFECT OF MEASUREMENT.—If the

18 satellite carrier conducts a signal intensity

19 measurement under subparagraph (A) and the

20 measurement indicates that—

21 ‘‘(i) the household is not an unserved

22 household, the satellite carrier shall, within

23 60 days after the measurement is conducted,

24 terminate the service to that household of

25 the signal that is the subject of the chal-
6

•S 2406 EAH

1 lenge, and within 30 days thereafter notify

2 the network station that made the challenge

3 that service to that household has been ter4 minated; or

5 ‘‘(ii) the household is an unserved

6 household, the station challenging the service

7 shall reimburse the satellite carrier for the

8 costs of the signal measurement within 60

9 days after receipt of the measurement re10 sults and a statement of the costs of the

11 measurement.

12 ‘‘(C) LIMITATION ON MEASUREMENTS.—(i)

13 Notwithstanding subparagraph (A), a satellite

14 carrier may not be required to conduct signal in15 tensity measurements during any calendar year

16 in excess of 5 percent of the number of subscrib17 ers within the network station’s local market

18 that have subscribed to the service as of the effec19 tive date of the Satellite Home Viewer Act of

20 1994.

21 ‘‘(ii) If a network station challenges whether

22 a subscriber is an unserved household in excess

23 of 5 percent of the subscribers within the net24 work’s station local market within a calendar

25 year, subparagraph (A) shall not apply to chal-
7

•S 2406 EAH

1 lenges in excess of such 5 percent, but the station

2 may conduct its own signal intensity measure3 ment of the subscriber’s household after giving

4 reasonable notice to the satellite carrier of the

5 network station’s intent to conduct the measure6 ment. If such measurement indicates that the

7 household is not an unserved household, the car8 rier shall, within 60 days after receipt of the

9 measurement, terminate service to the household

10 of the signal that is the subject of the challenge

11 and within 30 days thereafter notify the network

12 station that made the challenge that service has

13 been terminated. The carrier shall also, within

14 60 days after receipt of the measurement and a

15 statement of the costs of the measurement, reim16 burse the network station for the cost it incurred

17 in conducting the measurement.

18 ‘‘(D) OUTSIDE THE PREDICTED GRADE B

19 CONTOUR.—(i) If a network station challenges

20 whether a subscriber is an unserved household

21 outside the predicted Grade B Contour of the sta22 tion, the station may conduct a measurement of

23 the signal intensity of the subscriber’s household

24 to determine whether the household is an

25 unserved household after giving reasonable notice
8

•S 2406 EAH

1 to the satellite carrier of the network station’s in2 tent to conduct the measurement.

3 ‘‘(ii) If the network station conducts a sig4 nal intensity measurement under clause (i) and

5 the measurement indicates that—

6 ‘‘(I) the household is not an unserved

7 household, the station shall forward the re8 sults to the satellite carrier who shall, with9 in 60 days after receipt of the measurement,

10 terminate the service to the household of the

11 signal that is the subject of the challenge,

12 and shall reimburse the station for the costs

13 of the measurement within 60 days after re14 ceipt of the measurement results and a

15 statement of such costs; or

16 ‘‘(II) the household is an unserved

17 household, the station shall pay the costs of

18 the measurement.

19 ‘‘(9) LOSER PAYS FOR SIGNAL INTENSITY MEAS20 UREMENT; RECOVERY OF MEASUREMENT COSTS IN A

21 CIVIL ACTION.—In any civil action filed relating to

22 the eligibility of subscribing households as unserved

23 households—

24 ‘‘(A) a network station challenging such eli25 gibility shall, within 60 days after receipt of the
9

•S 2406 EAH

1 measurement results and a statement of such

2 costs, reimburse the satellite carrier for any sig3 nal intensity measurement that is conducted by

4 that carrier in response to a challenge by the

5 network station and that establishes the house6 hold is an unserved household; and

7 ‘‘(B) a satellite carrier shall, within 60

8 days after receipt of the measurement results and

9 a statement of such costs, reimburse the network

10 station challenging such eligibility for any signal

11 intensity measurement that is conducted by that

12 station and that establishes the household is not

13 an unserved household.

14 ‘‘(10) INABILITY TO CONDUCT MEASUREMENT.—

15 If a network station makes a reasonable attempt to

16 conduct a site measurement of its signal at a sub17 scriber’s household and is denied access for the pur18 pose of conducting the measurement, and is otherwise

19 unable to conduct a measurement, the satellite carrier

20 shall within 60 days notice thereof, terminate service

21 of the station’s network to that household.’’.

22 (6) Subsection (d) is amended—

23 (A) by amending paragraph (2) to read as

24 follows:
10

•S 2406 EAH

1 ‘‘(2) NETWORK STATION.—The term ‘network

2 station’ means—

3 ‘‘(A) a television broadcast station, includ4 ing any translator station or terrestrial satellite

5 station that rebroadcasts all or substantially all

6 of the programming broadcast by a network sta7 tion, that is owned or operated by, or affiliated

8 with, one or more of the television networks in

9 the United States which offer an interconnected

10 program service on a regular basis for 15 or

11 more hours per week to at least 25 of its affili12 ated television licensees in 10 or more States; or

13 ‘‘(B) a noncommercial educational broad14 cast station (as defined in section 397 of the

15 Communications Act of 1934).’’;

16 (B) in paragraph (6) by inserting ‘‘and op17 erates in the Fixed-Satellite Service under part

18 25 of title 47 of the Code of Federal Regulations

19 or the Direct Broadcast Satellite Service under

20 part 100 of title 47 of the Code of Federal Regu21 lations’’ after ‘‘Commission’’; and

22 (C) by adding at the end the following:

23 ‘‘(11) LOCAL MARKET.—The term ‘local market’

24 means the area encompassed within a network sta25 tion’s predicted Grade B contour as that contour is
11

•S 2406 EAH

1 defined by the Federal Communications Commis2 sion.’’.

3 SEC. 3. DEFINITIONS.

4 (a) CABLE SYSTEM.—Section 111(f) of title 17, United

5 States Code, is amended in the paragraph relating to the

6 definition of ‘‘cable system’’ by inserting ‘‘microwave,’’ after

7 ‘‘wires, cables,’’.

8 (b) LOCAL SERVICE AREA.—Section 111(f) of title 17,

9 United States Code, is amended in the paragraph relating

10 to the definition of ‘‘local service area of a primary trans11 mitter’’ by inserting after ‘‘April 15, 1976,’’ the following:

12 ‘‘or such station’s television market as defined in section

13 76.55(e) of title 47, Code of Federal Regulations (as in effect

14 on September 18, 1993), or any modifications to such tele15 vision market made, on or after September 18, 1993, pursu16 ant to section 76.55(e) or 76.59 of title 47 of the Code of

17 Federal Regulations,’’.

18 SEC. 4. TERMINATION.

19 (a) EXPIRATION OF AMENDMENTS.—Section 119 of

20 title 17, United States Code, as amended by section 2 of

21 this Act, ceases to be effective on December 31, 1999.

22 (b) CONFORMING AMENDMENT.—Section 207 of the

23 Satellite Home Viewer Act of 1988 (17 U.S.C. 119 note)

24 is repealed.
12

•S 2406 EAH

1 SEC. 5. LIMITATION.

2 The amendments made by this section apply only to

3 section 119 of title 17, United States Code.

4 SEC. 6. EFFECTIVE DATE.

5 (a) IN GENERAL.—Except as provided in subsections

6 (b) and (d), this Act and the amendments made by this

7 Act take effect on the date of the enactment of this Act.

8 (b) BURDEN OF PROOF PROVISIONS.—The provisions

9 of section 119(a)(5)(D) of title 17, United States Code (as

10 added by section 2(2) of this Act) relating to the burden

11 of proof of satellite carriers, shall take effect on January

12 1, 1997, with respect to civil actions relating to the eligi13 bility of subscribers who subscribed to service as an

14 unserved household before the date of the enactment of this

15 Act.

16 (c) TRANSITIONAL SIGNAL INTENSITY MEASUREMENT

17 PROCEDURES.—The provisions of section 119(a)(8) of title

18 17, United States Code (as added by section 2(5) of this

19 Act), relating to transitional signal intensity measure20 ments, shall cease to be effective on December 31, 1996.

21 (d) LOCAL SERVICE AREA OF A PRIMARY TRANSMIT22 TER.—The amendment made by section 3(b), relating to the
13

•S 2406 EAH

1 definition of the local service area of a primary transmitter,

2 shall take effect on July 1, 1994.

Attest:

Clerk.
103D CONGRESS

2D SESSION S. 2406

AMENDMENT