II

105TH CONGRESS

2D SESSION S. 1720

To amend title 17, United States Code, to reform the copyright law with

respect to satellite retransmissions of broadcast signals, and for other

purposes.

IN THE SENATE OF THE UNITED STATES

MARCH 5, 1998

Mr. HATCH (for himself, Mr. LEAHY, and Mr. KOHL), introduced the following bill; which was read twice and referred to the Committee on the Judiciary

A BILL

To amend title 17, United States Code, to reform the copyright law with respect to satellite retransmissions of

broadcast signals, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Copyright Compulsory

5 License Improvement Act’’.

6 SEC. 2. SECONDARY TRANSMISSIONS BY SATELLITE CAR7 RIERS.

8 Section 119 of title 17, United States Code, is

9 amended—
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1 (1) by amending the section heading to read as

2 follows:

3 ‘‘§ 119. Limitations on exclusive rights: Secondary

4 transmissions by satellite carriers’’;

5 and

6 (2) by striking subsection (a) and inserting the

7 following:

8 ‘‘(a) SECONDARY TRANSMISSIONS BY SATELLITE

9 CARRIERS FOR PRIVATE HOME VIEWING.—

10 ‘‘(1) SECONDARY TRANSMISSIONS OF DISTANT

11 AND LOCAL BROADCAST SIGNALS SUBJECT TO STAT12 UTORY LICENSING.—Subject to the provisions of

13 subsections (b) and (c) of this section and section

14 114(d), a secondary transmission of a primary

15 transmission made by a television broadcast station

16 licensed by the Federal Communications Commission

17 or by the Public Broadcasting Service satellite feed

18 and embodying a performance or display of a work

19 shall be subject to statutory licensing under this sec20 tion if—

21 ‘‘(A) the secondary transmission is permis22 sible under the rules, regulations, and author23 izations of the Federal Communications Com24 mission and is made by a satellite carrier to the

25 public for private home viewing; and
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1 ‘‘(B) the carrier makes a direct or indirect

2 charge for each retransmission service to each

3 household receiving the secondary transmission

4 or to a distributor that has contracted with the

5 carrier for direct or indirect delivery of the sec6 ondary transmission to the public for private

7 home viewing.

8 ‘‘(2) SUBMISSION OF SUBSCRIBER LISTS TO

9 TELEVISION BROADCAST STATIONS.—

10 ‘‘(A) INITIAL LISTS.—A satellite carrier

11 that makes secondary transmissions of a pri12 mary transmission of a television broadcast sta13 tion pursuant to paragraph (1) shall, within 90

14 days after commencing such secondary trans15 missions, submit to that television broadcast

16 station—

17 ‘‘(i) a list identifying all subscribers

18 within the designated market area of that

19 television broadcast station to whom the

20 satellite carrier has made such secondary

21 transmissions; and

22 ‘‘(ii) a list of all television broadcast

23 stations whose primary transmissions have

24 been transmitted by the satellite carrier to
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1 those subscribers during that 90-day pe2 riod.

3 ‘‘(B) SUBSEQUENT LISTS.—After the sub4 mission of the lists under subparagraph (A),

5 the satellite carrier shall, on the 15th day of

6 each month, submit to each television broadcast

7 station—

8 ‘‘(i) a list, which shall be dated, that

9 identifies the name of any subscriber de10 scribed in subparagraph (A) who has been

11 added or dropped since the last submission

12 under this paragraph; and

13 ‘‘(ii) a list of all television broadcast

14 stations whose primary transmissions have

15 been added or dropped by the satellite car16 rier since the last submission under this

17 paragraph

18 ‘‘(C) IDENTIFYING INFORMATION.—(i)

19 Each list of subscribers under this paragraph

20 shall include the name of each subscriber, to21 gether with the subscriber’s home address,

22 which shall include the street address or rural

23 route as the case may be, city, county, State,

24 and zip code and, if different from the subscrib25 er’s home address, the location of the subscrib-
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1 er’s satellite receiving dish to which the second2 ary transmissions are made, identified by street

3 address or rural route as the case may be, city,

4 county, State, and zip code.

5 ‘‘(ii) Each list of television broadcast sta6 tions under this paragraph shall include the

7 station’s call letters and community of license.

8 ‘‘(iii) Subscriber information submitted

9 under this paragraph may be used only for pur10 poses of monitoring compliance by the satellite

11 carrier with this section.

12 ‘‘(3) PENALTIES FOR NONCOMPLIANCE WITH

13 ACCOUNTING AND ROYALTY REQUIREMENTS.—Not14 withstanding the provisions of paragraph (1), the

15 willful or repeated secondary transmission to the

16 public by a satellite carrier of a primary trans17 mission made by a television broadcast station li18 censed by the Federal Communications Commission

19 or by the Public Broadcasting Service satellite feed

20 and embodying a performance or display of a work

21 is actionable as an act of infringement under section

22 501, and is fully subject to the remedies provided by

23 sections 502 through 506 and 509, if the satellite

24 carrier has not deposited the statement of account

25 and royalties fees required by subsection (b), or has
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1 failed to make the submissions to networks required

2 by paragraph (2).

3 ‘‘(4) PENALTIES FOR WILLFUL ALTERATIONS

4 OF PROGRAMMING.—Notwithstanding the provisions

5 of paragraph (1), the secondary transmission to the

6 public by a satellite carrier of a primary trans7 mission made by a television broadcast station li8 censed by the Federal Communications Commission

9 or by the Public Broadcasting Service satellite feed

10 and embodying a performance or display of a work

11 is actionable as an act of infringement under section

12 501, and is fully subject to the remedies provided by

13 section 502 through 506 and sections 509 and 510,

14 if the content of the particular program in which the

15 performance or display is embodied, or any commer16 cial advertising or station announcement transmitted

17 by the primary transmitter during, or immediately

18 before or after, the transmission of such program, is

19 in any way willfully altered by the satellite carrier

20 through changes, deletions, or additions, or is com21 bined with programming from any other broadcast

22 signal.

23 ‘‘(5) PENALTIES FOR DISCRIMINATION AGAINST

24 DISTRIBUTOR.—Notwithstanding the provisions of

25 paragraph (1), the willful or repeated secondary
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1 transmission to the public by a satellite carrier of

2 a primary transmission made by a television broad3 cast station licensed by the Federal Communications

4 Commission or by the Public Broadcasting Service

5 satellite feed and embodying the performance or dis6 play of a work is actionable as an act of infringe7 ment under section 501, and is fully subject to the

8 remedies provided by sections 502 through 506 and

9 509, if the satellite carrier unlawfully discriminates

10 against a distributor.

11 ‘‘(6) LICENSE LIMITED TO SECONDARY TRANS12 MISSIONS TO HOUSEHOLDS IN THE UNITED

13 STATES.—The statutory license created by this sec14 tion shall apply only to secondary transmissions to

15 households located in the United States.’’.

16 SEC. 3. STATUTORY LICENSE FOR SATELLITE CARRIERS.

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

18 amended by striking subsection (b) and inserting the fol19 lowing:

20 ‘‘(b) STATUTORY LICENSE FOR SECONDARY TRANS21 MISSIONS FOR PRIVATE HOME VIEWING.—

22 ‘‘(1) DEPOSIT OF ACCOUNTS AND FEES WITH

23 REGISTER OF COPYRIGHTS.—A satellite carrier

24 whose secondary transmissions are subject to statu25 tory licensing under subsection (a) shall, on a semi-
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1 annual basis, deposit with the Register of Copy2 rights, in accordance with requirements that the

3 Register shall prescribe by regulation—

4 ‘‘(A) a statement of account, covering the

5 preceding 6-month period, specifying the names

6 and locations of all television broadcast stations

7 whose signals were retransmitted, and listing

8 the Public Broadcasting Service satellite feed, if

9 carried, at any time during that period, to sub10 scribers for private home viewing, the total

11 number of subscribers that received such re12 transmissions, and other such data as the Reg13 ister of Copyrights may from time to time pre14 scribe by regulation; and

15 ‘‘(B) a royalty fee for that 6-month period

16 for each television broadcast station whose pri17 mary transmission was retransmitted beyond

18 the local market of the station, and for the

19 Public Broadcasting Service satellite feed, if

20 carried, computed by multiplying the total num21 ber of subscribers receiving the secondary

22 transmission, and the number of subscribers re23 ceiving a secondary transmission of the Public

24 Broadcasting Service satellite feed, during each

25 calendar month by the rate in effect for tele-
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1 vision broadcast stations as determined under

2 chapter 8 of this title and section 8(c) of the

3 Copyright Compulsory License Improvement

4 Act.

5 ‘‘(2) INVESTMENT OF FEES.—The Register of

6 Copyrights shall receive all fees deposited under this

7 section and, after deducting the reasonable costs in8 curred by the Copyright Office under this section

9 (other than the costs deducted under paragraph

10 (4)), shall deposit the balance in the Treasury of the

11 United States, in such manner as the Secretary of

12 the Treasury directs. All funds held by the Secretary

13 of the Treasury shall be invested in interest-bearing

14 securities of the United States for later distribution

15 with interest by the Copyright Royalty Adjudication

16 Board as provided in this title. The Register may,

17 four or more years after the close of any calendar

18 year, close out the account for royalty payments

19 made under this section for that calendar year (in20 cluding payments made under this section as in ef21 fect before the effective date of the Copyright Com22 pulsory License Improvement Act), and may treat

23 any funds remaining in such account and any subse24 quent deposits that would otherwise be attributable
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1 to that calendar year as attributable to the calendar

2 year in which the account is closed.

3 ‘‘(3) PERSONS TO WHOM FEES ARE DISTRIB4 UTED.—The royalty fees deposited under paragraph

5 (2) shall, in accordance with the procedures provided

6 in paragraph (4), be distributed to those copyright

7 owners whose works were included in a secondary

8 transmission for private home viewing made by a

9 satellite carrier during the applicable 6-month ac10 counting period and who file a claim with the Board

11 under paragraph (4).

12 ‘‘(4) PROCEDURES FOR DISTRIBUTION.—The

13 royalty fees deposited under paragraph (2) shall be

14 distributed in accordance with the following proce15 dures:

16 ‘‘(A) FILING OF CLAIMS FOR FEES.—Dur17 ing the month of July in each year, each person

18 claiming to be entitled to statutory license fees

19 for secondary transmissions for private home

20 viewing shall file a claim with the Copyright

21 Royalty Adjudication Board, in accordance with

22 requirements that the Board shall prescribe by

23 regulation. For purposes of this paragraph, any

24 claimants may agree among themselves as to

25 the proportionate division of statutory license
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1 fees among them, may lump their claims to2 gether and file them jointly or as a single claim,

3 or may designate a common agent to receive

4 payment on their behalf.

5 ‘‘(B) DETERMINATION OF CONTROVERSY;

6 DISTRIBUTIONS.—After the first day of August

7 of each year, the Copyright Royalty Adjudica8 tion Board shall determine whether there exists

9 a controversy concerning the distribution of roy10 alty fees. If the Board determines that no such

11 controversy exists, the Board shall, after de12 ducting reasonable administrative costs under

13 this paragraph, distribute such fees to the copy14 right owners entitled to receive them, or to their

15 designated agents. If the Board finds the exist16 ence of a controversy, the Board shall, pursuant

17 to chapter 8 of this title, conduct a proceeding

18 to determine the distribution of royalty fees.

19 ‘‘(C) WITHHOLDING OF FEES DURING

20 CONTROVERSY.—During the pendency of any

21 proceeding under this subsection, the Copyright

22 Royalty Adjudication Board shall withhold from

23 distribution an amount sufficient to satisfy all

24 claims with respect to which a controversy ex25 ists, but shall have discretion to proceed to dis-
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1 tribute any amounts that are not in con2 troversy. The action of the Board to distribute

3 royalty fees may precede the declaration of a

4 controversy if all parties to the proceeding file

5 a petition with the Board requesting such dis6 tribution, except that such amount may not ex7 ceed 50 percent of the amounts on hand at the

8 time of the request.’’.

9 SEC. 4. DEFINITIONS.

10 Section 119 of title 17, United States Code, is

11 amended by striking subsection (d) and inserting the fol12 lowing:

13 ‘‘(d) DEFINITIONS.—As used in this section—

14 ‘‘(1) DESIGNATED MARKET AREA.—The term

15 ‘designated market area’ has the meaning given that

16 term in section 337(g) of the Communications Act

17 of 1934.

18 ‘‘(2) DISTRIBUTOR.—The term ‘distributor’

19 means an entity which contracts to distribute sec20 ondary transmissions from a satellite carrier and, ei21 ther as a single channel or in a package with other

22 programming, provides the secondary transmission

23 either directly to individual subscribers for private

24 home viewing or indirectly through other program

25 distribution entities.
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1 ‘‘(3) LOCAL MARKET.—The ‘local market’ for a

2 television broadcast station has the meaning given

3 that term in section 337(g) of the Communications

4 Act of 1934.

5 ‘‘(4) PRIMARY TRANSMISSION.—The term ‘pri6 mary transmission’ has the meaning given that term

7 in section 111(f) of this title.

8 ‘‘(5) PRIVATE HOME VIEWING.—The term ‘pri9 vate home viewing’ means the viewing, for private

10 use in a household by means of satellite reception

11 equipment which is operated by an individual in that

12 household and which serves only such household, of

13 a secondary transmission delivered by a satellite car14 rier of a primary transmission of a television station

15 licensed by the Federal Communications Commission

16 or of the Public Broadcasting Service satellite feed.

17 ‘‘(6) PUBLIC BROADCASTING SERVICE SAT18 ELLITE FEED.—The term ‘Public Broadcasting

19 Service satellite feed’ means the national satellite

20 feed distributed by the Public Broadcasting Service

21 (other than the transmissions that may not be

22 encrypted under section 705(c) of the Communica23 tions Act of 1934), consisting of educational and in24 formational programming intended for private home
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1 viewing, to which the Public Broadcasting Service

2 holds national terrestrial broadcast rights.

3 ‘‘(7) SATELLITE CARRIER.—The term ‘satellite

4 carrier’ means an entity that uses the facilities of a

5 satellite or satellite service licensed by the Federal

6 Communications Commission, and operates in the

7 Fixed-Satellite Service under part 25 of title 47,

8 Code of Federal Regulations (as in effect on Feb9 ruary 1, 1998), or the Direct Broadcast Satellite

10 Service under part 100 of title 47, Code of Federal

11 Regulations (as in effect on February 1, 1998), to

12 establish and operate a channel of communications

13 for point-to-multipoint distribution of television sta14 tion signals, and that owns or leases a capacity or

15 service on a satellite in order to provide such point16 to-multipoint distribution, except to the extent that

17 such entity provides such distribution pursuant to

18 tariff under the Communications Act of 1934, other

19 than for private home viewing.

20 ‘‘(8) SECONDARY TRANSMISSION.—The term

21 ‘secondary transmission’ means the further trans22 mitting of a primary transmission simultaneously

23 with the primary transmission.

24 ‘‘(9) SUBSCRIBER.—The term ‘subscriber’

25 means an individual who receives a secondary trans-
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1 mission service for private home viewing by means

2 of a secondary transmission from a satellite carrier

3 and pays a fee for the service, directly or indirectly,

4 to the satellite carrier or to a distributor.

5 ‘‘(10) TELEVISION BROADCAST STATION.—The

6 term ‘television broadcast station’ means an over7 the-air, commercial or noncommercial television

8 broadcast station licensed by the Federal Commu9 nications Commission under subpart E of part 73 of

10 title 47, Code of Federal Regulations.’’.

11 SEC. 5. EXCLUSIVITY OF SECTION 119 OF TITLE 17, UNITED

12 STATES CODE.

13 Section 119 of title 17, United States Code, is

14 amended by adding at the end the following:

15 ‘‘(e) EXCLUSIVITY FOR THIS SECTION WITH RE16 SPECT TO SECONDARY TRANSMISSIONS OF TELEVISION

17 STATIONS BY SATELLITE TO MEMBERS OF THE PUB18 LIC.—No provision of section 111 of this title or any other

19 law (other than this section) shall be construed to contain

20 any authorization, exemption, or license through which

21 secondary transmissions by satellite carriers for private

22 home viewing of programming contained in a primary

23 transmission may be made without obtaining the consent

24 of the copyright owner.’’.
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1 SEC. 6. CONFORMING AMENDMENT.

2 The table of contents for chapter 1 of title 17, United

3 States Code, is amended by striking the item relating to

4 section 119 and inserting the following:

‘‘119. Limitations on exclusive rights: Secondary transmissions by satellite carriers.’’.

5 SEC. 7. COPYRIGHT ROYALTY ADJUDICATION BOARD.

6 (a) ESTABLISHMENT AND FUNCTIONS.—Chapter 8

7 of title 17, United States Code, is amended to read as

8 follows:

9 ‘‘CHAPTER 8—COPYRIGHT ROYALTY

10 ADJUDICATION BOARD

‘‘Sec.

‘‘801. Copyright Royalty Adjudication Board: establishment.

‘‘802. Membership and qualifications of the Board.

‘‘803. Selection of administrative copyright judges.

‘‘804. Independence of the Board.

‘‘805. Removal and sanction of administrative copyright judges.

‘‘806. Functions.

‘‘807. Factors for determining royalty fees.

‘‘808. Institution of proceedings.

‘‘809. Conduct of proceedings.

‘‘810. Judicial review.

‘‘811. Administrative matters.

‘‘812. Rule of construction.

11 ‘‘§ 801. Copyright Royalty Adjudication Board: estab12 lishment

13 ‘‘There is hereby established within the Copyright Of14 fice the Copyright Royalty Adjudication Board (herein15 after referred to in this chapter as the ‘Board’).

16 ‘‘§ 802. Membership and qualifications of the Board

17 ‘‘(a) MEMBERSHIP.—
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1 ‘‘(1) IN GENERAL.—The Board shall consist of

2 1 full-time chief administrative copyright judge, and

3 such part-time administrative copyright judges as

4 the Librarian of Congress, upon the recommendation

5 of the Register of Copyrights, finds necessary to

6 conduct the business of the Board in a timely man7 ner. At no time shall the number of authorized ad8 ministrative copyright judges be less than 3 or more

9 than 5.

10 ‘‘(2) PART-TIME ADMINISTRATIVE COPYRIGHT

11 JUDGES.—Chapter 34 of title 5 shall not apply to a

12 part-time administrative copyright judge. For pur13 poses of this subsection the Librarian of Congress

14 shall promulgate regulations relating to part-time

15 employment of administrative copyright judges.

16 ‘‘(b) QUALIFICATIONS.—

17 ‘‘(1) CHIEF ADMINISTRATIVE COPYRIGHT

18 JUDGE.—The chief administrative copyright judge

19 shall be an attorney with 10 or more years of legal

20 practice with demonstrated experience in administra21 tive hearings or court trials and demonstrated

22 knowledge of copyright law.

23 ‘‘(2) OTHER ADMINISTRATIVE COPYRIGHT

24 JUDGES.—Each administrative copyright judge,

25 other than the chief administrative copyright judge,
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1 shall be an individual with expertise in the business

2 and economics of industries affected by the actions

3 taken by the Board to carry out its functions.

4 ‘‘(c) TERMS.—(1) The term of each administrative

5 copyright judge (including the chief administrative copy6 right judge) shall be 5 years, except that, of the first ad7 ministrative copyright judges appointed, the Librarian of

8 Congress, upon the recommendation of the Register of

9 Copyrights, shall appoint all but one of them to lesser

10 terms to establish a staggering of terms such that in any

11 calendar year no more than one term is due to expire.

12 ‘‘(2) The term of each administrative copyright judge

13 (including the chief administrative copyright judge) shall

14 begin when the term of the predecessor of that member

15 ends. An individual appointed to fill the vacancy occurring

16 before the expiration of the term for which the predecessor

17 of that individual was appointed shall be appointed for the

18 remainder of that term. When the term of office of a mem19 ber ends, the member may continue to serve until a succes20 sor is selected.

21 ‘‘(d) COMPENSATION.—The compensation of the ad22 ministrative copyright judges shall be governed solely by

23 the provisions of section 5376 of title 5 and such regula24 tions as the Librarian of Congress may adopt that are not

25 inconsistent with that section. The compensation of the
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1 administrative copyright judges shall not be subject to any

2 regulations adopted by the Office of Personnel Manage3 ment pursuant to its authority under section 5376(b)(1)

4 of title 5.

5 ‘‘§ 803. Selection of administrative copyright judges

6 ‘‘(a) SELECTION.—(1) The Librarian of Congress,

7 upon the recommendation of the Register of Copyrights,

8 shall select the administrative copyright judges (including

9 the chief administrative copyright judge) among individ10 uals found qualified under section 802(b) who meet the

11 financial conflict of interest under section 805(a). Not12 withstanding any other provision of law and at the discre13 tion of the Librarian, the Librarian shall determine the

14 method of selecting the members.

15 ‘‘(2) Administrative copyright judges previously se16 lected by the Librarian of Congress may be selected to

17 serve additional terms. There shall be no limit on the num18 ber of terms any individual may serve.

19 ‘‘(b) EFFECT OF VACANCY.—In no event shall a va20 cancy in the Board impair the right of the remaining ad21 ministrative copyright judges to exercise all of the powers

22 of the Board.

23 ‘‘§ 804. Independence of the Board

24 ‘‘(a) IN GENERAL.—The Board shall have independ25 ence in reaching its determinations concerning the adjust-
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1 ment of copyright royalty rates, the distribution of copy2 right royalties, the acceptance or rejection of royalty

3 claims and rate adjustment petitions, and such rulemaking

4 functions as are delegated to it under this title.

5 ‘‘(b) PERFORMANCE APPRAISALS.—Notwithstanding

6 any other provision of law or any regulation of the Library

7 of Congress, no administrative copyright judge shall re8 ceive an annual performance appraisal.

9 ‘‘(c) INCONSISTENT DUTIES BARRED.—No adminis10 trative copyright judge may be assigned duties inconsist11 ent with his or her duties and responsibilities as a admin12 istrative copyright judge.

13 ‘‘§ 805. Removal and sanction of administrative copy14 right judges

15 ‘‘(a) STANDARDS OF CONDUCT.—The Librarian of

16 Congress, upon the recommendation of the Register of

17 Copyrights, shall adopt regulations regarding the stand18 ards of conduct, including financial conflict of interest and

19 restrictions against ex parte communications, which shall

20 govern the administrative copyright judges and the pro21 ceedings under this chapter.

22 ‘‘(b) REMOVAL OR SANCTION.—The Librarian of

23 Congress, upon the recommendation of the Register of

24 Copyrights, may remove or sanction an administrative

25 copyright judge for violation of the standards of conduct
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1 adopted under subsection (a), misconduct, neglect of duty,

2 or any disqualifying physical or mental disability. Any

3 such removal or sanction may be made only after notice

4 and opportunity for hearing, but the Librarian of Con5 gress, upon the recommendation of the Register of Copy6 rights, may suspend the administrative copyright judge

7 during the pendency of such hearing.

8 ‘‘§ 806. Functions

9 ‘‘Subject to the provisions of this chapter, the func10 tions of the Board shall be—

11 ‘‘(1) to make determinations concerning the ad12 justment of reasonable copyright royalty rates for—

13 ‘‘(A) secondary transmissions to the public

14 by a cable system of a primary transmission as

15 provided in section 111;

16 ‘‘(B) the making and distributing of

17 phonorecords by means other than digital pho18 norecord delivery, as provided in section 115;

19 ‘‘(C) secondary transmissions to the public

20 by a satellite carrier of a primary transmission

21 made by a television broadcast station and the

22 Public Broadcasting Service satellite feed as

23 provided in section 119; and

24 ‘‘(D) each digital audio recording device

25 imported into and distributed in the United
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1 States or manufactured and distributed into the

2 United States as provided in section 1004;

3 ‘‘(2) to make determinations as to reasonable

4 rates and terms of royalty payments for—

5 ‘‘(A) the public performance of a sound re6 cording by means of a digital audio trans7 mission as provided in section 114;

8 ‘‘(B) the making and distribution of

9 phonorecords by means of a digital phonorecord

10 delivery as provided in section 115;

11 ‘‘(C) the public performance of nondra12 matic musical works by means of coin-operated

13 phonorecord players as provided in section 116;

14 and

15 ‘‘(D) the use of nondramatic musical works

16 and pictorial, graphic, and sculptural works by

17 public broadcasting entities as provided in sec18 tion 118;

19 ‘‘(3) to accept or reject royalty claims filed

20 under sections 111, 119, and 1007, on the basis of

21 timeliness or the failure to establish the basis for a

22 claim;

23 ‘‘(4) to determine, in cases where controversy

24 exists, the distribution of royalty fees deposited with
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1 the Register of Copyrights under sections 111, 119,

2 and 1003;

3 ‘‘(5) to determine the status of a digital audio

4 recording device or a digital audio interface device

5 under sections 1002 and 1003, as provided in sec6 tion 1010; and

7 ‘‘(6) to engage in such rulemaking as is ex8 pressly provided in sections 111, 114, 115, 118, and

9 119.

10 ‘‘§ 807. Factors for determining royalty fees

11 ‘‘(a) FOR CABLE RATES.—The rates applicable

12 under section 111 shall be calculated solely in accordance

13 with the following provisions:

14 ‘‘(1) The rates established by section

15 111(d)(1)(B) may be adjusted to reflect—

16 ‘‘(A) national monetary inflation or defla17 tion, or

18 ‘‘(B) changes in the average rates charged

19 cable subscribers for the basic service of provid20 ing secondary transmissions to maintain the

21 real constant dollar level of the royalty fee per

22 subscriber which existed as of October 19,

23 1976, except that—

24 ‘‘(i) if the average rates charged cable

25 system subscribers for the basic service of
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1 providing secondary transmissions are

2 changed so that the average rates exceed

3 national monetary inflation, no change in

4 the rates established by section

5 111(d)(1)(B) shall be permitted; and

6 ‘‘(ii) no increase in the royalty fee

7 shall be permitted based on any reduction

8 in the average number of distant signal

9 equivalents per subscriber.

10 The Board may consider all factors relating to the

11 maintenance of such level of payments including, as

12 an extenuating factor, whether the cable industry

13 has been restrained by subscriber rate regulating au14 thorities from increasing the rates for the basic serv15 ice of providing secondary transmissions.

16 ‘‘(2) In the event that the rules and regulations

17 of the Federal Communications Commission are

18 amended at any time after April 15, 1976, to permit

19 the carriage by cable systems of additional television

20 broadcasting signals beyond the local service area of

21 the primary transmitters of such signals, the royalty

22 rates established by section 111(d)(1)(B) may be ad23 justed to insure that the rates for the additional dis24 tant signal equivalents resulting from such carriage

25 are reasonable in light of the changes effected by the
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1 amendment to such rules and regulations. In deter2 mining the reasonableness of rates proposed follow3 ing an amendment of Federal Communications Com4 mission rules and regulations, the Board shall con5 sider, among other factors, the economic impact on

6 copyright owners and users, except that no adjust7 ment in royalty rates shall be made under this para8 graph with respect to any distant signal equivalent

9 or fraction thereof represented by—

10 ‘‘(A) carriage of any signal permitted

11 under the rules and regulations of the Federal

12 Communications Commission in effect on April

13 15, 1976, or the carriage of a signal of the

14 same type (that is, independent, network, or

15 noncommercial educational) substituted for

16 such permitted signal, or

17 ‘‘(B) a television broadcast signal first car18 ried after April 15 1976, pursuant to an indi19 vidual waiver of the rules and regulations of the

20 Federal Communications Commission, as such

21 rules and regulations were in effect on April 15,

22 1976.

23 ‘‘(3) In the event of any change in the rules

24 and regulations of the Federal Communications

25 Commission with respect to syndicated and sport
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1 program exclusivity after April 15, 1976, the rates

2 established by section 111(d)(1)(B) may be adjusted

3 to assure that such rates are reasonable in light of

4 the changes to such rules and regulations, but any

5 such adjustment shall apply only to the affected tele6 vision broadcast signals carried on those systems af7 fected by the change.

8 ‘‘(4) The gross receipts limitations established

9 by section 111(d)(1)(C) and (D) shall be adjusted to

10 reflect national monetary inflation or deflation or

11 changes in the average rates charged cable system

12 subscribers for the basic service of providing second13 ary transmissions to maintain the real constant dol14 lar value of the exemption provided by such section,

15 and the royalty rate specified therein shall not be

16 subject to adjustment.

17 ‘‘(b) FOR RATES OTHER THAN CABLE OR SAT18 ELLITE CARRIERS.—The rates applicable under sections

19 114, 115, and 116 shall be calculated to achieve the fol20 lowing objectives:

21 ‘‘(1) To maximize the availability of creative

22 works to the public.

23 ‘‘(2) To afford the copyright owner a fair re24 turn for his or her creative work and the copyright
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1 user a fair income under existing economic condi2 tions.

3 ‘‘(3) To reflect the relative roles of the copy4 right owner and the copyright user in the product

5 made available to the public with respect to relative

6 creative contribution, technological contribution, cap7 ital investment, cost, risk, and contribution to the

8 opening of new markets for creative expression and

9 media for their communications.

10 ‘‘(4) To minimize any disruptive impact on the

11 structure of the industries involved and on generally

12 prevailing industry practices.

13 ‘‘(c) FOR RATES FOR NONCOMMERCIAL BROADCAST14 ING.—The rates applicable under section 118 shall be cal15 culated to achieve reasonable rates. In determining rea16 sonable rates, the Board shall base its decision so as to—

17 ‘‘(1) assure a fair return to copyright owners;

18 ‘‘(2) encourage the growth and development of

19 public broadcasting; and

20 ‘‘(3) encourage musical and artistic creation.

21 ‘‘(d) RATES FOR SATELLITE CARRIERS.—The rates

22 applicable under section 119 shall be calculated to rep23 resent most clearly the fair market value of secondary

24 transmissions. In determining the fair market value, the

25 Board shall base its decision on economic, competitive,
28

•S 1720 IS

1 and programming information presented by the parties,

2 including—

3 ‘‘(1) the competitive environment in which such

4 programming is distributed, the cost for similar sig5 nals in similar private and compulsory license mar6 ketplaces, and any special features and conditions of

7 the retransmission marketplace;

8 ‘‘(2) the economic impact of such fees on copy9 right owners and satellite carriers; and

10 ‘‘(3) the impact on the continued availability of

11 secondary transmissions to the public.

12 ‘‘§ 808. Institution of proceedings

13 ‘‘(a) PETITION REQUIRED TO INSTITUTE PROCEED14 INGS.—With respect to proceedings concerning the adjust15 ment of royalty rates as provided in sections 111, 114,

16 115, 116, and 119, during the calendar years or under

17 the circumstances specified in the schedule set forth in

18 subsection (c), any owner or user of a copyrighted work

19 whose royalty rates are to be established or adjusted by

20 the Board may file a petition with the Board declaring

21 that the petitioner requests an adjustment of the rate. The

22 Board shall make a determination as to whether the peti23 tioner has a significant interest in the royalty rate in

24 which an adjustment is requested. If the Board determines

25 that the petitioner has a significant interest, the Board
29

•S 1720 IS

1 shall cause notice of this determination, with the reasons

2 therefor, to be published in the Federal Register, together

3 with the notice of commencement of proceedings under

4 this chapter. With respect to proceedings concerning the

5 adjustment of royalty rates under section 1004, any inter6 ested copyright party may petition the Board as provided

7 in that section.

8 ‘‘(b) PETITION NOT REQUIRED TO INSTITUTE PRO9 CEEDINGS.—With respect to proceedings concerning the

10 adjustment of royalty rates as provided in section 118 and

11 the distribution of royalties as provided in section 111,

12 119, and 1007, no petition is required to institute proceed13 ings. All proceedings concerning the adjustment of rates

14 under section 118 shall commence as provided in section

15 118(c) of this title. All proceedings concerning the dis16 tribution of royalties under section 111, 119, or 1007 shall

17 commence as provided in such sections and in subsection

18 (c)(8) of this section.

19 ‘‘(c) SCHEDULE OF PROCEEDINGS.—

20 ‘‘(1) SECTION 111 PROCEEDINGS.—In proceed21 ings concerning the adjustment of royalty rates as

22 provided in section 111, a petition described in sub23 section (a) may be filed during the year 2000 and

24 in each subsequent fifth calendar year, except that

25 in the event that the rules and regulations of the
30

•S 1720 IS

1 Federal Communications Commission are amended

2 with respect to distant signal importation, or to syn3 dicated and sports program exclusivity, any owner or

4 user of a copyrighted work subject to the royalty

5 rates established or adjusted pursuant to section

6 111 may, within 12 months after such amendments

7 take effect, file a petition with the Board to institute

8 proceedings to insure that the rates are reasonable

9 in light of the changes to such rules and regulations.

10 Any such adjustments shall apply only to the af11 fected television broadcast signals carried on those

12 systems affected by the change. Any change in roy13 alty rates made pursuant to this subsection may be

14 reconsidered in the year 2000, and each fifth cal15 endar year thereafter, as the case may be.

16 ‘‘(2) SECTION 114 PROCEEDINGS.—In proceed17 ings concerning the adjustment of royalty rates and

18 terms as provided in section 114, the Board shall

19 proceed when and as provided by that section.

20 ‘‘(3) SECTION 115 PROCEEDINGS.—In proceed21 ings concerning the adjustment of royalty rates and

22 terms as provided in section 115, a petition de23 scribed in subsection (a) may be filed in the year

24 2007 and in each subsequent tenth calendar year or

25 as prescribed in section 115(c)(3).
31

•S 1720 IS

1 ‘‘(4) SECTION 116 PROCEEDINGS.—(A) In pro2 ceedings concerning the adjustment of royalty rates

3 as provided in section 116, a petition described in

4 subsection (a) may be filed at any time within 1

5 year after negotiated licenses authorized by section

6 116 are terminated or expire or are not replaced by

7 subsequent agreements.

8 ‘‘(B) If a negotiated license authorized by sec9 tion 116 is terminated or expires and is not replaced

10 by another such license agreement which provides

11 permission to use a quantity of musical works not

12 substantially smaller than the quantity of such

13 works performed on coin-operated phonorecord play14 ers during the 1-year period ending March 1, 1989,

15 the Board, upon petition filed under subsection (a)

16 within 1 year after such termination or expiration,

17 shall promptly establish an interim royalty rate or

18 rates for the public performance by means of a coin19 operated phonorecord player of nondramatic musical

20 works embodied in phonorecords which had been

21 subject to the terminated or expired negotiated li22 cense agreement. Such rate or rates shall be the

23 same as the last such rate or rates and shall remain

24 in force until the conclusion of the proceedings to

25 adjust the royalty rates applicable to such works, or
32

•S 1720 IS

1 until superseded by a new negotiated license agree2 ment, as provided in section 116(b).

3 ‘‘(5) SECTION 118 PROCEEDINGS.—In proceed4 ings concerning the adjustment of royalty rates and

5 terms as provided in section 118, the Board shall

6 proceed when and as provided by that section.

7 ‘‘(6) SECTION 119 PROCEEDINGS.—In proceed8 ings concerning the adjustment of royalty rates gov9 erning secondary transmissions of as provided in

10 section 119, a petition described in subsection (a)

11 may be filed during the year 2001 and in each sub12 sequent fifth calendar year.

13 ‘‘(7) PROCEEDINGS CONCERNING DISTRIBUTION

14 OF ROYALTY FEES.—In proceedings concerning the

15 distribution of royalty fees under section 111, 119,

16 or 1007, the Board shall, upon a determination that

17 a controversy exists concerning such distribution,

18 cause to be published in the Federal Register notice

19 of commencement of proceedings under this chapter.

20 ‘‘§ 809. Conduct of proceedings

21 ‘‘(a) BOARD PROCEEDINGS.—The Board shall, for

22 the purposes of making its determinations in carrying out

23 the functions set forth in section 806, conduct proceedings

24 subject to subchapter II of chapter 5 of title 5.
33

•S 1720 IS

1 ‘‘(b) PROCEDURES.—Subject to the approval of the

2 Register of Copyrights, the Board, shall adopt regulations

3 to govern the conduct of the proceedings of the Board.

4 The regulations shall include, but not be limited to, provi5 sions for—

6 ‘‘(1) public access to and inspection of the

7 records of the Board pursuant to section 706;

8 ‘‘(2) the right of the public to attend the pro9 ceedings of the Board;

10 ‘‘(3) the procedures to apply when formal hear11 ings are conducted; and

12 ‘‘(4) the procedures to apply and the basis upon

13 which distribution or royalty controversies may be

14 decided on the basis of written pleadings.

15 ‘‘(c) PARTICIPATION OF COPYRIGHT OFFICE.—Dur16 ing the conduct of proceedings, the Register of Copyrights

17 may file formally with the Board the position of the Copy18 right Office on any matter before the Board. Such filings

19 shall be served on all parties to the proceeding. The Board

20 may accept or reject the position of the Copyright Office.

21 ‘‘(d) MAJORITY RULE.—The Board shall act in all

22 procedural and substantive matters on the basis of major23 ity rule.

24 ‘‘(e) NUMBER OF PRESIDING JUDGES.—The Board

25 shall decide, in its discretion, whether 1 or 3 administra-
34

•S 1720 IS

1 tive copyright judges shall preside in a royalty distribution

2 or rate adjustment proceeding. In no event shall the num3 ber of presiding administrative copyright judges be more

4 than 3.

5 ‘‘(f) PARTICIPATION OF PARTIES.—Any copyright

6 owner who has filed an acceptable claim claiming entitle7 ment to the distribution of royalties, or any copyright

8 owner or user who would be affected by a royalty rate to

9 be established or adjusted by the Board, may submit rel10 evant information and proposals to the Board in proceed11 ings applicable to the interest of the copyright owner or

12 user.

13 ‘‘(g) TIME LIMITS FOR INITIAL DECISION.—Proceed14 ings under section 118 operate under the time limits es15 tablished in that section. For all other proceedings, if 1

16 administrative copyright judge is presiding in a proceed17 ing, the Board shall issue its initial decision to the parties

18 to the proceeding and the Register of Copyrights within

19 6 months after the declaration of a controversy in the pro20 ceeding. If more than 1 administrative copyright judge is

21 presiding in a proceeding, the Board shall issue its initial

22 decision to the parties to the proceeding and the Register

23 of Copyrights within 1 year after the declaration of a con24 troversy in the proceeding.
35

•S 1720 IS

1 ‘‘(h) REQUIREMENTS FOR INITIAL DECISIONS.—The

2 initial decision under subsection (g) shall include a state3 ment of findings and conclusions and the reasons or basis

4 therefor, on all the material issues of fact, law, or discre5 tion presented on the record. The initial decision shall take

6 into account prior decisions of the Copyright Royalty Tri7 bunal, prior decisions of copyright arbitration royalty pan8 els, as adopted or modified by the Librarian of Congress,

9 and the procedural and evidentiary rulings the Librarian

10 of Congress made that were applicable to the proceedings

11 of the copyright arbitration royalty panels. Notwithstand12 ing any provision of section 603 or 604 of title 5, neither

13 the initial decision nor the final decision is required to in14 clude a regulatory flexibility analysis.

15 ‘‘(i) PETITIONS FOR RECONSIDERATION AND FINAL

16 AGENCY ACTION.—Any party to the proceeding concerned

17 or the Register of Copyrights may petition the Board to

18 reconsider its initial decision in the proceeding. If there

19 are no petitions for reconsideration, the initial decision be20 comes the final decision of the Board without further pro21 ceedings. If there are petitions for reconsideration, the

22 Board shall issue a final decision to the parties to the pro23 ceeding and the Register of Copyrights which shall con24 stitute final agency action. The time period by which par25 ties to the proceeding or the Register of Copyrights may
36

•S 1720 IS

1 file a petition for reconsideration and the time period by

2 which the Board shall render its final decision shall be

3 established by regulation by the Board, subject to the ap4 proval of the Register of Copyrights.

5 ‘‘§ 810. Judicial review

6 ‘‘(a) APPEALS.—Within 1 week after the Board

7 issues a final decision under section 809, or, if there are

8 no petitions for reconsideration, within 1 week after the

9 time the initial decision of the Board under section 809

10 becomes the final decision, the Board shall cause to be

11 published in the Federal Register the decision of the rate

12 adjustment or the royalty distribution, as the case may

13 be. Any aggrieved party who would be bound by the final

14 decision may appeal the decision to the United States

15 Court of Appeals for the Federal Circuit within 30 days

16 after the publication of the decision in the Federal Reg17 ister. In any appeal to which the Board is a party, the

18 chief administrative copyright judge shall refer the con19 duct of the litigation in defense of the Board’s decision

20 to the Department of Justice which shall have the author21 ity to represent the Board under section 516 of title 28.

22 If no appeal is brought within such 30-day period, the de23 cision of the Board is final, and the royalty fee or deter24 mination with respect to the distribution of fees, as the

25 case may be, shall take effect as set forth in the decision.
37

•S 1720 IS

1 The pendency of an appeal under this subsection shall not

2 relieve persons who would be affected by the determina3 tions on appeal under section 111, 114, 115, 116, 118,

4 119, or 1003, of the obligation to deposit the statement

5 of account or to pay royalty fees specified in those sec6 tions.

7 ‘‘(b) REVIEW SUBJECT TO CHAPTER 7 OF TITLE

8 5.—The judicial review of the Board’s final decision shall

9 be had, in accordance with chapter 7 of title 5, on the

10 basis of the record before the Board.

11 ‘‘§ 811. Administrative matters

12 ‘‘(a) ADMINISTRATIVE SUPPORT.—The Library of

13 Congress, upon the recommendation of the Register of

14 Copyrights, shall provide the Board with the necessary ad15 ministrative services and personnel related to proceedings

16 under this title.

17 ‘‘(b) AUTHORITY TO PUBLISH IN FEDERAL REG18 ISTER.—The actions of the Board which may be published

19 in the Federal Register by and under the authority of the

20 Board include—

21 ‘‘(1) actions of the Board required to be pub22 lished in the Federal Register under this title;

23 ‘‘(2) actions of the Board required to be pub24 lished in the Federal Register under regulations
38

•S 1720 IS

1 adopted by the Board upon the approval of the Reg2 ister of Copyrights; and

3 ‘‘(3) regulations of the Board required to be

4 published in the Federal Register to which the

5 Board has been delegated the exclusive right to

6 adopt.

7 ‘‘(c) COLLECTION AND USE OF FEES.—

8 ‘‘(1) DEDUCTION OF COSTS FROM FEES.—The

9 Librarian of Congress and the Register of Copy10 rights may, to the extent not otherwise provided

11 under this title, deduct from the royalty fees depos12 ited or fees collected under this title the reasonable

13 costs incurred by the Library of Congress and the

14 Copyright Office under this chapter. Such deduction

15 may be made before the fees are distributed to any

16 copyright owner.

17 ‘‘(2) COLLECTION OF FEES.—The Register of

18 Copyrights may impose and collect fees in advance

19 to carry out the ratemaking proceedings. All fees re20 ceived under this section shall be deposited by the

21 Register of Copyrights in the Treasury of the United

22 States and shall be credited to the appropriations for

23 necessary expenses of the Copyright Office. Such

24 fees that are collected shall remain available until

25 expended. The Register may refund any sum paid by
39

•S 1720 IS

1 mistake or in excess of the fee required under this

2 section.

3 ‘‘(d) POSITIONS REQUIRED FOR ADMINISTRATION OF

4 COMPULSORY LICENSING.—Section 307 of the Legislative

5 Branch Appropriations Act of 1994 shall not apply to the

6 members of the Board, employee positions in the Board,

7 or employee positions in the Library of Congress that are

8 required to be filled in order to carry out section 111, 114,

9 115, 116, 118, or 119 or chapter 10.

10 ‘‘(e) BUDGET.—In each annual request for appro11 priations, the Register of Copyrights shall identify the por12 tion thereof intended for the support of the Board and

13 a statement which shall include an assessment of the

14 budgetary needs of the Board.

15 ‘‘(f) ANNUAL REPORT.—The Board shall prepare an

16 annual report of its work and accomplishments during

17 each fiscal year, which the Register of Copyrights shall

18 include in the annual report required under section 701(c).

19 ‘‘§ 812. Rule of construction

20 ‘‘Nothing in this chapter shall be construed to affect

21 the authority of the Register of Copyrights to establish

22 regulations under sections 701 and 702.’’.

23 (b) TECHNICAL AND CONFORMING AMENDMENTS.—
40

•S 1720 IS

1 (1) TABLE OF CHAPTERS.—The item relating

2 to chapter 8 in the table of chapters for title 17,

3 United States Code, is amended to read as follows:

‘‘8. Copyright Royalty Adjudication Board ............................. 801’’.

4 (2) JURISDICTION OF FEDERAL CIRCUIT.—Sec5 tion 1295(a) of title 28, United States Code, is

6 amended—

7 (A) in paragraph (13) by striking ‘‘and’’

8 after the semicolon;

9 (B) in paragraph (14) by striking the pe10 riod and inserting a semicolon and ‘‘and ’’; and

11 (C) by adding at the end the following new

12 paragraph:

13 ‘‘(15) of an appeal from a final decision of the

14 Copyright Royalty Adjudication Board under sec15 tions 809(i) and 810 of title 17.’’.

16 SEC. 8. TRANSITION PROVISIONS.

17 (a) TRANSITIONAL PROCEDURES.—During the pe18 riod beginning on the date of the enactment of this Act

19 and ending on the effective date of this Act, the Register

20 of Copyrights shall adopt regulations to govern proceed21 ings under chapter 8 of title 17, United States Code, as

22 amended by section 7 of this Act. Such regulations shall

23 remain in effect unless and until the Copyright Royalty

24 Adjudication Board, upon the approval of the Register of

25 Copyrights, adopts supplemental or superseding regula-
41

•S 1720 IS

1 tions pursuant to section 809(b) of title 17, United States

2 Code.

3 (b) PROCEEDINGS IN PROGRESS.—

4 (1) COPYRIGHT ARBITRATION ROYALTY PANEL

5 PROCEEDINGS.—Unless the Register of Copyrights,

6 for good cause, finds otherwise, proceedings in which

7 a copyright arbitration royalty panel has been con8 vened by the Librarian of Congress under chapter 8

9 of title 17, United States Code, as in effect before

10 the effective date of this Act, shall continue in effect

11 and shall be governed under chapter 8 of such title,

12 and applicable regulations, as in effect prior to such

13 effective date, and proceedings in which a copyright

14 arbitration royalty panel has not been convened by

15 the Librarian of Congress under chapter 8 of title

16 17, United States Code, before the effective date of

17 this Act shall be suspended and recommenced under

18 the amendments made by section 7.

19 (2) CONTINUED PROCEEDINGS.—For those pro20 ceedings continued under paragraph (1), the func21 tions of the Librarian of Congress and the Register

22 of Copyrights relating to the report of the copyright

23 arbitration royalty panel under title 17, United

24 States Code, as in effect before the effective date of

25 this Act, may, in the Librarian’s discretion, upon the
42

•S 1720 IS

1 recommendation of the Register of Copyrights, be

2 delegated to the Copyright Royalty Adjudication

3 Board, when constituted.

4 (3) APPEALS.—In any appeal of a decision of

5 the Librarian of Congress adopting or rejecting a

6 determination of a copyright arbitration royalty

7 panel which is pending in the United States Court

8 of Appeals for the District of Columbia Circuit on

9 or after the effective date of this Act, if such case

10 is remanded by the court, the Librarian of Congress

11 shall not reconvene the copyright arbitration royalty

12 panel which rendered the determination, but shall

13 direct the Copyright Royalty Adjudication Board,

14 when constituted, to conduct proceedings in accord15 ance with the directions of the court. If the case is

16 remanded by the court after the enactment date of

17 this Act but before the effective date of this Act, the

18 Librarian of Congress shall have the discretion to re19 convene the copyright arbitration royalty panel

20 which rendered the determination, or direct the

21 Copyright Royalty Adjudication Board when con22 stituted, to conduct proceedings in accordance with

23 the directions of the court.

24 (c) EFFECTIVENESS OF EXISTING RATES AND DIS25 TRIBUTIONS.—All royalty rates and all determinations
43

•S 1720 IS

1 with respect to the proportionate division of compulsory

2 license fees among copyright claimants, whether made by

3 the Copyright Royalty Tribunal, copyright arbitration roy4 alty panels, or by voluntary agreement, before the effective

5 date of this Act, shall remain in effect until modified by

6 voluntary agreement or pursuant to the amendments

7 made by this Act.

8 (d) TRANSFER OF APPROPRIATIONS.—All unex9 pended balances of appropriations made by the Copyright

10 Office for the support of the copyright arbitration royalty

11 panels, as of the effective date of this Act, are transferred

12 on such effective date to the support of the Copyright Roy13 alty Arbitration Board for the purposes for which such

14 appropriations were made except that, in the event that

15 any copyright arbitration royalty panels continue to oper16 ate after the effective date of this Act, the Register of

17 Copyrights shall retain such portions of the unexpended

18 balances of appropriations as are necessary to support the

19 continuing copyright arbitration royalty panels.

20 SEC. 9. AMENDMENTS TO OTHER PROVISIONS OF TITLE 17,

21 UNITED STATES CODE.

22 (a) SECONDARY TRANSMISSIONS BY CABLE SYS23 TEMS.—Section 111(d) of title 17, United States Code,

24 is amended—
44

•S 1720 IS

1 (1) in paragraph (2) in the last sentence by

2 striking ‘‘Librarian of Congress’’ and all that follows

3 through the end of the sentence and inserting the

4 following: ‘‘Copyright Royalty Adjudication Board as

5 provided in this title. The Register of Copyrights

6 may, 4 or more years after the close of any calendar

7 year, close out the account for royalty payments

8 made for that calendar year, and may treat any

9 funds remaining the such account and any subse10 quent deposits that would otherwise be attributable

11 to that calendar year as attributable to the succeed12 ing calendar year.’’; and

13 (2) in paragraph (4)—

14 (A) in subparagraph (A)—

15 (i) by striking ‘‘Librarian of Con16 gress’’ the first place it appears and insert17 ing ‘‘Copyright Royalty Adjudication

18 Board’’; and

19 (ii) by striking ‘‘Librarian of Con20 gress’’ the second place it appears and in21 serting ‘‘Board’’;

22 (B) in subparagraph (B)—

23 (i) by striking ‘‘Librarian of Congress

24 shall, upon the recommendation of the

25 Register of Copyrights’’ and inserting
45

•S 1720 IS

1 ‘‘Copyright Royalty Adjudication Board

2 shall’’;

3 (ii) by striking ‘‘Librarian’’ each sub4 sequent place it appears and inserting

5 ‘‘Board’’; and

6 (iii) in the last sentence by striking

7 ‘‘convene a copyright royalty arbitration

8 panel’’ and inserting ‘‘conduct a proceed9 ing’’; and

10 (C) in subparagraph (C)—

11 (i) by striking ‘‘Librarian of Con12 gress’’ and inserting ‘‘Copyright Royalty

13 Adjudication Board’’; and

14 (ii) by adding at the end the follow15 ing: ‘‘The action of the Board to distribute

16 royalty fees may precede the declaration of

17 a controversy if all parties to the proceed18 ing file a petition with the Board request19 ing such distribution, except that such

20 amount may not exceed 50 percent of the

21 amounts on hand at the time of the re22 quest.’’.

23 (b) SCOPE OF EXCLUSIVE RIGHTS IN SOUND RE24 CORDINGS.—Section 114(f) of title 17, United States

25 Code, is amended—
46

•S 1720 IS

1 (1) in paragraph (1)—

2 (A) by amending the first sentence to read

3 as follows: ‘‘During the first week of January,

4 2000, the Copyright Royalty Adjudication

5 Board shall cause notice to be published in the

6 Federal Register of the initiation of voluntary

7 negotiation proceedings for the purpose of de8 termining or adjusting reasonable terms and

9 rates of royalty payments for the activities spec10 ified in subsection (d)(2) of this section.’’; and

11 (B) in the third sentence by striking ‘‘Li12 brarian of Congress’’ and inserting ‘‘Copyright

13 Royalty Adjudication Board’’;

14 (2) by striking paragraphs (2), (3), and (4) and

15 inserting the following:

16 ‘‘(2) In the absence of license agreements nego17 tiated under paragraph (1), during the 60-day pe18 riod beginning 6 months after publication of the no19 tice specified in paragraph (1), and upon the filing

20 of a petition in accordance with section 808(a), the

21 Copyright Royalty Adjudication Board shall, pursu22 ant to chapter 8, conduct a proceeding to determine

23 and publish in the Federal Register a schedule of

24 rates and terms. In addition to the objectives set

25 forth in section 807(a) in establishing or adjusting
47

•S 1720 IS

1 such rates and terms, the Board may consider the

2 rates and terms for comparable types of digital

3 audio transmission services and comparable cir4 cumstances under voluntary license agreements ne5 gotiated as provided in paragraph (1). The Copy6 right Royalty Adjudication Board, upon the approval

7 of the Register of Copyrights, shall also establish re8 quirements by which copyright owners may receive

9 reasonable notice of the use of their sound record10 ings under this section, and under which records of

11 such use shall be kept and made available by entities

12 performing sound recordings.

13 ‘‘(3) License agreements voluntarily negotiated

14 at any time between 1 or more copyright owners of

15 sound recordings and 1 or more entities performing

16 sound recordings shall be given effect in lieu of any

17 determination by the Copyright Royalty Adjudica18 tion Board.

19 ‘‘(4) Publication of a notice of the initiation of

20 voluntary negotiation proceedings as specified in

21 paragraph (1) and the procedures specified in para22 graph (2) shall be repeated, in accordance with regu23 lations that the Copyright Royalty Adjudication

24 Board, upon the approval of the Register of Copy25 rights, shall prescribe—
48

•S 1720 IS

1 ‘‘(A) no later than 30 days after a petition

2 is filed by any copyright owners of sound re3 cordings or any entities performing sound re4 cordings affected by this section indicating that

5 a new type of digital audio transmission service

6 on which sound recordings are performed is or

7 is about to become operational; and

8 ‘‘(B) during the first week of January

9 2005 and at 5-year intervals thereafter.’’; and

10 (3) in paragraph (5)(A)(i) by striking ‘‘Librar11 ian of Congress’’ and inserting ‘‘Copyright Royalty

12 Adjudication Board, upon the approval of the Reg13 ister of Copyrights,’’.

14 (c) COMPULSORY LICENSE FOR MAKING AND DIS15 TRIBUTING PHONORECORDS.—Section 115(c)(3) of title

16 17, United States Code, is amended—

17 (1) in subparagraph (C)—

18 (A) by amending the first sentence to read

19 as follows: ‘‘At the times established in sub20 paragraph (F), the Copyright Royalty Adjudica21 tion Board shall cause notice to be published in

22 the Federal Register of the initiation of vol23 untary negotiation proceedings for the purpose

24 of determining reasonable terms and rates of

25 royalty payments for the activities specified in
49

•S 1720 IS

1 subparagraph (A) until the effective date of any

2 new terms and rates established pursuant to

3 this subparagraph or subparagraph (D) or (F),

4 or such other date (regarding digital phono5 record deliveries) as the parties may agree.’’;

6 (B) in the third sentence by striking ‘‘Li7 brarian of Congress’’ and inserting ‘‘Copyright

8 Royalty Adjudication Board’’;

9 (2) by amending subparagraph (D) to read as

10 follows:

11 ‘‘(D) In the absence of license agreements nego12 tiated under subparagraphs (B) and (C), upon the

13 filing of a petition in accordance with section 808(a),

14 the Copyright Royalty Adjudication Board shall,

15 pursuant to chapter 8, conduct a proceeding to de16 termine and publish in the Federal Register a sched17 ule of rates and terms. Such rates and terms shall

18 distinguish between—

19 ‘‘(i) digital phonorecord deliveries where

20 the reproduction or distribution of a phono21 record is incidental to the transmission which

22 constitute the digital phonorecord delivery, and

23 ‘‘(ii) digital phonorecord deliveries in gen24 eral.
50

•S 1720 IS

1 In addition to the objectives set forth in section 807(a),

2 in establishing or adjusting rates and terms, the Board

3 may consider rates and terms under voluntary license

4 agreements negotiated as provided in subparagraphs (B)

5 and (C). The Board, upon the approval of the Register

6 of Copyrights, shall also establish requirements by which

7 copyright owners may receive reasonable notice of the use

8 of their works under this section, and under which records

9 of such use shall be kept and made available by persons

10 making digital phonorecord deliveries.’’;

11 (3) in subparagraph (E)(i) in the first sentence

12 by striking ‘‘Librarian of Congress’’ and inserting

13 ‘‘Copyright Royalty Adjudication Board’’; and

14 (4) in subparagraph (F) by striking ‘‘Librarian

15 of Congress’’ and inserting ‘‘ Copyright Royalty Ad16 judication Board, upon the approval of the Register

17 of Copyrights,’’.

18 (d) NEGOTIATED LICENSES FOR PUBLIC PERFORM19 ANCES BY MEANS OF COIN-OPERATED PHONORECORD

20 PLAYERS.—Section 116 of title 17, United States Code,

21 is amended—

22 (1) by amending subsection (b)(2) to read as

23 follows:

24 ‘‘(2) RATE ADJUSTMENT PROCEEDING.—Par25 ties not subject to such a negotiation may determine,
51

•S 1720 IS

1 by a rate adjustment proceeding in accordance with

2 the provisions of chapter 8, the terms and rates and

3 the division of fees described in paragraph (1).’’; and

4 (2) in subsection (c)—

5 (A) in the subsection heading by

6 striking ‘‘COPYRIGHT ROYALTY ARBITRA7 TION PANEL’’ and inserting ‘‘COPYRIGHT

8 ROYALTY ADJUDICATION BOARD’’; and

9 (B) by striking ‘‘a copyright arbitration

10 royalty panel and inserting ‘‘the Copyright Roy11 alty Adjudication Board’’.

12 (e) USE OF CERTAIN WORKS IN CONNECTION WITH

13 NONCOMMERCIAL BROADCASTING.—Section 118 of title

14 17, United States Code, is amended—

15 (1) in subsection (b)—

16 (A) by striking paragraph (1) and redesig17 nating paragraphs (2) and (3) as paragraphs

18 (1) and (2), respectively;

19 (B) in paragraph (1), as so redesignated,

20 by striking ‘‘Librarian of Congress’’ and insert21 ing ‘‘Copyright Royalty Adjudication Board’’;

22 (C) in paragraph (2), as so redesignated—

23 (i) by striking ‘‘paragraph (2)’’ each

24 place it appears and inserting ‘‘paragraph

25 (1)’’;
52

•S 1720 IS

1 (ii) by striking ‘‘Librarian of Con2 gress’’ the first place it appears and insert3 ing ‘‘Copyright Royalty Adjudication

4 Board’’;

5 (iii) by striking ‘‘Librarian of Con6 gress’’ the second and third places it ap7 pears and inserting ‘‘Board’’; and

8 (iv) by striking ‘‘Librarian of Con9 gress’’ the last place it appears and insert10 ing ‘‘Board, upon the approval of the Reg11 ister of Copyrights,’’;

12 (2) in subsection (c)—

13 (A) by striking ‘‘1997’’ and inserting

14 ‘‘2002’’; and

15 (B) by striking ‘‘Librarian of Congress’’

16 and inserting ‘‘Copyright Royalty Adjudication

17 Board, upon the approval of the Register of

18 Copyrights,’’;

19 (3) in subsection (d)—

20 (A) by striking ‘‘(b)(2)’’ and inserting

21 ‘‘(b)(1)’’; and

22 (B) by striking ‘‘a copyright arbitration

23 royalty panel under subsection (b)(3)’’ and in24 serting ‘‘the Copyright Royalty Adjudication

25 Board under subsection (b)(2)’’; and
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1 (4) in subsection (e), by striking paragraphs (1)

2 and (2).

3 (f) DIGITAL AUDIO RECORDING DEVICES AND

4 MEDIA.—

5 (1) ROYALTY PAYMENTS.—Section 1004(a)(3)

6 of title 17, United States Code, is amended in the

7 third sentence—

8 (A) by striking ‘‘the 6th year after the ef9 fective date of this chapter’’ and inserting

10 ‘‘1998’’;

11 (B) by striking ‘‘Librarian of Congress’’

12 the first place it appears and inserting ‘‘Copy13 right Royalty Adjudication Board’’; and

14 (C) by striking ‘‘Librarian of Congress’’

15 the second place it appears and inserting

16 ‘‘Board’’.

17 (2) ENTITLEMENT TO ROYALTY PAYMENTS.—

18 Section 1006(c) of title 17, United States Code, is

19 amended by striking ‘‘Librarian of Congress shall

20 convene a copyright arbitration royalty panel which’’

21 and inserting ‘‘Copyright Royalty Adjudication

22 Board’’.

23 (3) PROCEDURES FOR DISTRIBUTING ROYALTY

24 PAYMENTS.—Section 1007 of title 17, United States

25 Code, is amended—
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1 (A) in subsection (a)(1)—

2 (i) by striking ‘‘after the calendar

3 year in which this chapter takes effect’’;

4 (ii) by striking ‘‘Librarian of Con5 gress’’ the first place it appears and insert6 ing ‘‘Copyright Royalty Adjudication

7 Board’’; and

8 (iii) by striking ‘‘Librarian of Con9 gress’’ the second place it appears and in10 serting ‘‘Board’’;

11 (B) in subsection (b)—

12 (i) by amending the first sentence to

13 read as follows: ‘‘After the first day of

14 March of each year, the Copyright Royalty

15 Adjudication Board shall determine wheth16 er there exists a controversy concerning

17 the distribution of royalty payments under

18 section 1006(c).’’; and

19 (ii) by striking ‘‘Librarian of Con20 gress’’ each place it appears and inserting

21 ‘‘Board’’; and

22 (C) in subsection (c)—

23 (i) by amending the first sentence to

24 read as follows: ‘‘If the Copyright Royalty

25 Adjudication Board finds the existence of a
55

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1 controversy, the Board shall, pursuant to

2 chapter 8 of this title, conduct a proceed3 ing to determine the distribution of royalty

4 payments.’’;

5 (ii) by striking ‘‘Librarian of Con6 gress’’ each place it appears and inserting

7 ‘‘Board’’; and

8 (iii) by striking ‘‘Librarian under this

9 section’’ and inserting ‘‘Board under this

10 section. The action of the Board to distrib11 ute royalty fees may precede the declara12 tion of a controversy if all parties to the

13 proceeding file a petition with the Board

14 requesting such distribution, except that

15 such amount may not exceed 50 percent of

16 the amounts on hand at the time of the re17 quest.’’.

18 (4) ADJUDICATION OF CERTAIN DIS19 PUTES.—Section 1010 of title 17, United

20 States Code, is amended—

21 (A) by amending the section heading

22 to read as follows:

23 ‘‘§ 1010. Adjudication of certain disputes’’;

24 (B) in subsection (a)—
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•S 1720 IS

1 (i) in the subsection heading by

2 striking ‘‘ARBITRATION’’ and inserting

3 ‘‘ADJUDICATION’’; and

4 (ii) by striking ‘‘mutually agree

5 to binding arbitration for the purpose

6 of determining’’ and inserting ‘‘peti7 tion the Copyright Royalty Adjudica8 tion Board to determine’’;

9 (C) by striking subsection (b) and re10 designating subsections (c) and (d) as sub11 sections (b) and (c), respectively;

12 (D) in subsection (b), as so redesig13 nated, by striking ‘‘arbitration’’ each place

14 it appears and inserting ‘‘adjudication’’;

15 (E) by amending subsection (c), as so

16 redesignated, to read as follows:

17 ‘‘(c) ADJUDICATION PROCEEDING.—The Copyright

18 Royalty Adjudication Board shall conduct an adjudication

19 proceeding with respect to the matter concerned, pursuant

20 to chapter 8 of this title. The parties to the proceeding

21 shall bear the entire costs thereof in such manner and pro22 portion as the Board shall direct.’’; and

23 (F) by striking subsections (e), (f),

24 and (g).
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1 SEC. 10. TECHNICAL AMENDMENTS.

2 (a) CLERICAL AMENDMENT TO CHAPTER 10 OF

3 TITLE 17, UNITED STATES CODE.—The item relating to

4 section 1010 in the table of contents for chapter 10 of

5 title 17, United States Code, is amended to read as fol6 lows:

‘‘1010. Adjudication of certain disputes.’’.

7 (b) CLERICAL AMENDMENT TO CHAPTER 9 OF TITLE

8 17, UNITED STATES CODE.—The item relating to section

9 903 in the table of contents for chapter 9 of title 17,

10 United States Code, is amended to read as follows:

‘‘903. Ownership, transfer, licensing, and recordation.’’.

11 (c) CLERICAL AMENDMENT TO TABLE OF CHAP12 TERS.—The item relating to chapter 6 in the table of

13 chapters for title 17, United States Code, is amended to

14 read as follows:

‘‘6. Manufacturing Requirements and Importation ............. 601’’.

15 SEC. 11. RETRANSMISSION CONSENT.

16 Section 325(b) of the Communications Act of 1934

17 (47 U.S.C. 325(b)) is amended—

18 (1) by striking paragraphs (1) and (2) and in19 serting the following:

20 ‘‘(b)(1) No cable system or other multichannel video

21 programming distributor shall retransmit the signal of a

22 broadcasting station, or any part thereof, except—

23 ‘‘(A) with the express authority of the station;
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1 ‘‘(B) pursuant to section 614, in the case of a

2 station electing, in accordance with this subsection,

3 to assert the right to carriage under such section; or

4 ‘‘(C) pursuant to section 337, in the case of a

5 station electing, in accordance with this subsection,

6 to assert the right to carriage under such section.

7 ‘‘(2) The provisions of this subsection shall not apply

8 to—

9 ‘‘(A) retransmission of the signal of a non10 commercial broadcasting station;

11 ‘‘(B) retransmission of the signal of a supersta12 tion by a satellite carrier to subscribers for private

13 home viewing if the originating station was a super14 station on January 1, 1998;

15 ‘‘(C) retransmission of the signal of a broad16 casting station that is owned or operated by, or af17 filiated with, a broadcasting network directly to a

18 home satellite antenna, if the household receiving

19 the signal is located in an area in which such station

20 may not assert its rights not to have its signal dupli21 cated under the Commission’s network nonduplica22 tion regulations; or

23 ‘‘(D) retransmission by a cable operator or

24 other multichannel video programming distributor of

25 the signal of a superstation if such signal was ob-
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1 tained from a satellite carrier and the originating

2 station was a superstation on January 1, 1998.’’;

3 (2) by adding at the end of paragraph (3) the

4 following new subparagraph:

5 ‘‘(C) Within 45 days after the effective date of the

6 Copyright Compulsory License Improvement Act, the

7 Commission shall commence a rulemaking proceeding to

8 revise the regulations governing the exercise by television

9 broadcast stations of the right to grant retransmission

10 consent under this subsection, and such other regulations

11 as are necessary to administer the limitation contained in

12 paragraph (2). Such regulations shall establish election

13 time periods that correspond with those regulations adopt14 ed under subparagraph (B). The rulemaking shall be com15 pleted within 180 days after the effective date of the Copy16 right Compulsory License Improvement Act.’’; and

17 (3) by adding at the end the following new

18 paragraph:

19 ‘‘(7) For purposes of this subsection:

20 ‘‘(A) The term ‘superstation’ means a television

21 broadcast station, other than a network station, li22 censed by the Commission that is secondarily trans23 mitted by a satellite carrier.
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1 ‘‘(B) The term ‘satellite carrier’ has the mean2 ing given that term in section 119(d) of title 17,

3 United States Code.’’.

4 SEC. 12. MUST-CARRY FOR SATELLITE CARRIERS RE5 TRANSMITTING TELEVISION BROADCAST SIG6 NALS.

7 Title III of the Communications Act of 1934 is

8 amended by inserting after section 336 the following new

9 section:

10 ‘‘SEC. 337. CARRIAGE OF LOCAL TELEVISION SIGNALS BY

11 SATELLITE CARRIERS.

12 ‘‘(a) CARRIAGE OBLIGATIONS.—Each satellite carrier

13 providing direct to home service of a network station to

14 subscribers located within the local market of such station

15 shall offer to carry all television broadcast stations located

16 within that local market, subject to section 325(b). Car17 riage of additional television broadcast stations within the

18 local market shall be at the discretion of the satellite car19 rier, subject to section 325(b).

20 ‘‘(b) DUPLICATION NOT REQUIRED.—Notwithstand21 ing subsection (a), a satellite carrier shall not be required

22 to offer to carry the signal of any local television broadcast

23 station that substantially duplicates the signal of another

24 local television broadcast station which is secondarily

25 transmitted by the satellite carrier, or to offer to carry
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1 the signals of more that one local television broadcast sta2 tion affiliated with a particular broadcast network (as the

3 term is defined by regulation).

4 ‘‘(c) CHANNEL POSITIONING.—Each signal carried in

5 fulfillment of the carriage obligations of a satellite carrier

6 under this section shall be carried on the satellite carrier

7 channel number on which the local television broadcast

8 station is broadcast over the air, or on the channel on

9 which it was broadcast on January 1, 1985, or on the

10 channel it was broadcast on January 1, 1998, at the elec11 tion of the station, or on such other channel number as

12 is mutually agreed upon by the station and the satellite

13 carrier. Any dispute regarding the positioning of local tele14 vision broadcast stations shall be resolved by the Commis15 sion.

16 ‘‘(d) COMPENSATION FOR CARRIAGE.—A satellite

17 carrier shall not accept or request monetary payment or

18 other valuable consideration in exchange either for car19 riage of local television broadcast stations in fulfillment

20 of the requirements of this section or for channel position21 ing rights provided to such stations under this section, ex22 cept that any such station may be required to bear the

23 costs associated with delivering a good quality signal to

24 the principal headend of the satellite carrier.

25 ‘‘(e) REMEDIES.—
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1 ‘‘(1) COMPLAINTS BY BROADCAST STATIONS.—

2 Whenever a local television broadcast station believes

3 that a satellite carrier has failed to meet its obliga4 tions under this section, such station shall notify the

5 carrier, in writing, of the alleged failure and identify

6 its reasons for believing that the satellite carrier is

7 obligated to offer to carry the signal of such station

8 or has otherwise failed to comply with the channel

9 positioning or repositioning or other requirements of

10 this section. The satellite carrier shall, within 30

11 days of such written notification, respond in writing

12 to such notification and either commence to carry

13 the signal of such station in accordance with the

14 terms requested or state its reasons for believing

15 that it is not obligated to carry such signal or is in

16 compliance with the channel positioning and reposi17 tioning or other requirements of this section. A local

18 television broadcast station that is denied carriage or

19 channel positioning or repositioning in accordance

20 with this section by a satellite carrier may obtain re21 view of such denial by filing a complaint with the

22 Commission. Such complaint shall allege the manner

23 in which such satellite carrier has failed to meet its

24 obligations and the basis for such allegations.
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1 ‘‘(2) OPPORTUNITY TO RESPOND.—The Com2 mission shall afford such satellite carrier and oppor3 tunity to present data and arguments to establish

4 that there has been no failure to meet its obligations

5 under this section.

6 ‘‘(3) REMEDIAL ACTIONS; DISMISSAL.—Within

7 120 days after the date a complaint is filed, the

8 Commission shall determine whether the satellite

9 carrier has met its obligations under this section. If

10 the Commission determines that the satellite carrier

11 has failed to meet such obligations, the Commission

12 shall order the satellite carrier to reposition the com13 plaining station or, in the case of an obligation to

14 carry a station, to commence carriage of the station

15 and to continue such carriage for at least 12

16 months. If the Commission determines that the sat17 ellite carrier has fully met the requirements of this

18 section, it shall dismiss the complaint.

19 ‘‘(f) REGULATIONS BY COMMISSION.—Within 180

20 days after the effective date of this section, the Commis21 sion shall, following a rulemaking proceeding, issue regula22 tions implementing the requirements imposed by this sec23 tion.

24 ‘‘(g) DEFINITIONS.—As used in this section:
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1 ‘‘(1) TELEVISION BROADCAST STATION.—The

2 term ‘television broadcast station’ means a full3 power television broadcast station, and does not in4 clude a low-power or translator television broadcast

5 station.

6 ‘‘(2) LOCAL MARKET.—The term ‘local market’

7 means the designated market area in which a station

8 is located and—

9 ‘‘(A) for a commercial television broadcast

10 station located in any of the 150 largest des11 ignated market areas, all commercial television

12 broadcast stations licensed to a community

13 within the same designated market area are

14 within the same local market;

15 ‘‘(B) for a commercial television broadcast

16 station that is located in a designated market

17 area that is not one of the 150 largest, the local

18 market includes, in addition to all commercial

19 television broadcast stations licensed to a com20 munity within the same designated market

21 area, any station that is significantly viewed, as

22 such term is defined in section 76.54 of the

23 Commission’s regulations (47 C.F.R. 76.54);

24 and
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1 ‘‘(C) for a noncommercial educational tele2 vision broadcast station, the local market in3 cludes any station that is licensed to a commu4 nity within the same designated market area as

5 the noncommercial educational television broad6 cast station.

7 ‘‘(3) DESIGNATED MARKET AREA.—The term

8 ‘designated market area’ means a designated market

9 area, as determined by the Nielsen Media Research

10 and published in the DMA Market and Demographic

11 Report.’’.

12 SEC. 13. NETWORK NONDUPLICATION; SYNDICATED EXCLU13 SIVITY AND SPORTS BLACKOUT.

14 (a) REGULATIONS.—

15 (1) IN GENERAL.—Within 45 days after the ef16 fective date of this Act, the Federal Communications

17 Commission shall commence a rulemaking to estab18 lish regulations that apply network nonduplication

19 protection, syndicated exclusivity protection, and

20 sports blackout protection to the retransmission of

21 broadcast signals by satellite carriers to subscribers

22 for private home viewing. To the extent possible,

23 such regulations shall, subject to paragraph (2), in24 clude the same level of protection accorded retrans25 missions of television broadcast signals by cable sys-
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1 tems for network nonduplication (47 C.F.R. 76.92),

2 syndicated exclusivity (47 C.F.R. 151), and sports

3 blackout (47 C.F.R. 76.67).

4 (2) NETWORK NONDUPLICATION.—The network

5 nonduplication regulations required under paragraph

6 (1) shall allow a television broadcast station in any

7 local market to assert nonduplication rights—

8 (A) against a satellite carrier throughout

9 such local market if that satellite carrier re10 transmits to subscribers for private home view11 ing in such local market the signal of another

12 television broadcast station located within such

13 local market; or

14 (B) against all satellite carriers within the

15 zone in which the television broadcast station

16 may be received over-the-air, using conventional

17 consumer television receiving equipment, as de18 termined under regulations prescribed by the

19 Federal Communications Commission, but such

20 zone shall not extend beyond such local market

21 of such station.

22 (3) LOCAL MARKET DEFINED.—The term ‘‘local

23 market’’ has the meaning provided in section 337(g)

24 of the Communications Act of 1934, as added by

25 section 12 of this Act.
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1 (b) DEFERRED APPLICABILITY OF AMENDMENTS TO

2 SECTION 119 OF TITLE 17, UNITED STATES CODE.—

3 Notwithstanding the amendments to section 119 of title

4 17, United States Code, made by this Act, until the regu5 lations regarding network nonduplication protection are

6 established under subsection (a), the statutory license

7 under subsection (a) of such section 119 for secondary

8 transmissions of primary transmissions of programming

9 contained in a primary transmission made by a network

10 station (as defined in section 119(d) of title 17, United

11 States Code, as in effect on the day before the effective

12 date of this Act) shall be limited to secondary trans13 missions to persons who reside in unserved households (as

14 defined in section 119(d) of title 17, United States Code,

15 as in effect on the day before the effective date of this

16 Act).

17 SEC. 14. EFFECTIVE DATE.

18 This Act and the amendments made by this Act shall

19 take effect on January 1, 1999.

Æ