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[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 1720 Reported in Senate (RS)]

                                                       Calendar No. 670

105th CONGRESS

  2d Session

                                S. 1720

_______________________________________________________________________

                                 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.

_______________________________________________________________________

            October 1 (legislative day, September 29), 1998

                       Reported with an amendment

                                                       Calendar No. 670
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, Mr. Kohl, and Mr. Jeffords), 
introduced the following bill; which was read twice and referred to the 
                       Committee on the Judiciary

            October 1 (legislative day, September 29), 1998

                Reported by Mr. Hatch, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 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.

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

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Copyright Compulsory 
License Improvement Act''.</DELETED>

<DELETED>SEC. 2. SECONDARY TRANSMISSIONS BY SATELLITE 
              CARRIERS.</DELETED>

<DELETED>    Section 119 of title 17, United States Code, is amended--
</DELETED>
        <DELETED>    (1) by amending the section heading to read as 
        follows:</DELETED>
<DELETED>``Sec. 119. Limitations on exclusive rights: Secondary 
              transmissions by satellite carriers'';</DELETED>
        <DELETED>and</DELETED>
        <DELETED>    (2) by striking subsection (a) and inserting the 
        following:</DELETED>
<DELETED>    ``(a) Secondary Transmissions by Satellite Carriers for 
Private Home Viewing.--</DELETED>
        <DELETED>    ``(1) Secondary transmissions of distant and local 
        broadcast signals subject to statutory licensing.--Subject to 
        the provisions of subsections (b) and (c) of this section and 
        section 114(d), a secondary transmission of a primary 
        transmission made by a television broadcast station licensed by 
        the Federal Communications Commission or by the Public 
        Broadcasting Service satellite feed and embodying a performance 
        or display of a work shall be subject to statutory licensing 
        under this section if--</DELETED>
                <DELETED>    ``(A) the secondary transmission is 
                permissible under the rules, regulations, and 
                authorizations of the Federal Communications Commission 
                and is made by a satellite carrier to the public for 
                private home viewing; and</DELETED>
                <DELETED>    ``(B) the carrier makes a direct or 
                indirect charge for each retransmission service to each 
                household receiving the secondary transmission or to a 
                distributor that has contracted with the carrier for 
                direct or indirect delivery of the secondary 
                transmission to the public for private home 
                viewing.</DELETED>
        <DELETED>    ``(2) Submission of subscriber lists to television 
        broadcast stations.--</DELETED>
                <DELETED>    ``(A) Initial lists.--A satellite carrier 
                that makes secondary transmissions of a primary 
                transmission of a television broadcast station pursuant 
                to paragraph (1) shall, within 90 days after commencing 
                such secondary transmissions, submit to that television 
                broadcast station--</DELETED>
                        <DELETED>    ``(i) a list identifying all 
                        subscribers within the designated market area 
                        of that television broadcast station to whom 
                        the satellite carrier has made such secondary 
                        transmissions; and</DELETED>
                        <DELETED>    ``(ii) a list of all television 
                        broadcast stations whose primary transmissions 
                        have been transmitted by the satellite carrier 
                        to those subscribers during that 90-day 
period.</DELETED>
                <DELETED>    ``(B) Subsequent lists.--After the 
                submission of the lists under subparagraph (A), the 
                satellite carrier shall, on the 15th day of each month, 
                submit to each television broadcast station--</DELETED>
                        <DELETED>    ``(i) a list, which shall be 
                        dated, that identifies the name of any 
                        subscriber described in subparagraph (A) who 
                        has been added or dropped since the last 
                        submission under this paragraph; and</DELETED>
                        <DELETED>    ``(ii) a list of all television 
                        broadcast stations whose primary transmissions 
                        have been added or dropped by the satellite 
                        carrier since the last submission under this 
                        paragraph</DELETED>
                <DELETED>    ``(C) Identifying information.--(i) Each 
                list of subscribers under this paragraph shall include 
                the name of each subscriber, together with the 
                subscriber's home address, which shall include the 
                street address or rural route as the case may be, city, 
                county, State, and zip code and, if different from the 
                subscriber's home address, the location of the 
                subscriber's satellite receiving dish to which the 
                secondary transmissions are made, identified by street 
                address or rural route as the case may be, city, 
                county, State, and zip code.</DELETED>
                <DELETED>    ``(ii) Each list of television broadcast 
                stations under this paragraph shall include the 
                station's call letters and community of 
                license.</DELETED>
                <DELETED>    ``(iii) Subscriber information submitted 
                under this paragraph may be used only for purposes of 
                monitoring compliance by the satellite carrier with 
                this section.</DELETED>
        <DELETED>    ``(3) Penalties for noncompliance with accounting 
        and royalty requirements.--Notwithstanding the provisions of 
        paragraph (1), the willful or repeated secondary transmission 
        to the public by a satellite carrier of a primary transmission 
        made by a television broadcast station licensed by the Federal 
        Communications Commission or by the Public Broadcasting Service 
        satellite feed and embodying a performance or display of a work 
        is actionable as an act of infringement under section 501, and 
        is fully subject to the remedies provided by sections 502 
        through 506 and 509, if the satellite carrier has not deposited 
        the statement of account and royalties fees required by 
        subsection (b), or has failed to make the submissions to 
        networks required by paragraph (2).</DELETED>
        <DELETED>    ``(4) Penalties for willful alterations of 
        programming.--Notwithstanding the provisions of paragraph (1), 
        the secondary transmission to the public by a satellite carrier 
        of a primary transmission made by a television broadcast 
        station licensed by the Federal Communications Commission or by 
        the Public Broadcasting Service satellite feed and embodying a 
        performance or display of a work is actionable as an act of 
        infringement under section 501, and is fully subject to the 
        remedies provided by section 502 through 506 and sections 509 
        and 510, if the content of the particular program in which the 
        performance or display is embodied, or any commercial 
        advertising or station announcement transmitted by the primary 
        transmitter during, or immediately before or after, the 
        transmission of such program, is in any way willfully altered 
        by the satellite carrier through changes, deletions, or 
        additions, or is combined with programming from any other 
        broadcast signal.</DELETED>
        <DELETED>    ``(5) Penalties for discrimination against 
        distributor.--Notwithstanding the provisions of paragraph (1), 
        the willful or repeated secondary transmission to the public by 
a satellite carrier of a primary transmission made by a television 
broadcast station licensed by the Federal Communications Commission or 
by the Public Broadcasting Service satellite feed and embodying the 
performance or display of a work is actionable as an act of 
infringement under section 501, and is fully subject to the remedies 
provided by sections 502 through 506 and 509, if the satellite carrier 
unlawfully discriminates against a distributor.</DELETED>
        <DELETED>    ``(6) License limited to secondary transmissions 
        to households in the united states.--The statutory license 
        created by this section shall apply only to secondary 
        transmissions to households located in the United 
        States.''.</DELETED>

<DELETED>SEC. 3. STATUTORY LICENSE FOR SATELLITE CARRIERS.</DELETED>

<DELETED>    Section 119 of title 17, United States Code, is amended by 
striking subsection (b) and inserting the following:</DELETED>
<DELETED>    ``(b) Statutory License for Secondary Transmissions for 
Private Home Viewing.--</DELETED>
        <DELETED>    ``(1) Deposit of accounts and fees with register 
        of copyrights.--A satellite carrier whose secondary 
        transmissions are subject to statutory licensing under 
        subsection (a) shall, on a semiannual basis, deposit with the 
        Register of Copyrights, in accordance with requirements that 
        the Register shall prescribe by regulation--</DELETED>
                <DELETED>    ``(A) a statement of account, covering the 
                preceding 6-month period, specifying the names and 
                locations of all television broadcast stations whose 
                signals were retransmitted, and listing the Public 
                Broadcasting Service satellite feed, if carried, at any 
                time during that period, to subscribers for private 
                home viewing, the total number of subscribers that 
                received such retransmissions, and other such data as 
                the Register of Copyrights may from time to time 
                prescribe by regulation; and</DELETED>
                <DELETED>    ``(B) a royalty fee for that 6-month 
                period for each television broadcast station whose 
                primary transmission was retransmitted beyond the local 
                market of the station, and for the Public Broadcasting 
                Service satellite feed, if carried, computed by 
                multiplying the total number of subscribers receiving 
                the secondary transmission, and the number of 
                subscribers receiving a secondary transmission of the 
                Public Broadcasting Service satellite feed, during each 
                calendar month by the rate in effect for television 
                broadcast stations as determined under chapter 8 of 
                this title and section 8(c) of the Copyright Compulsory 
                License Improvement Act.</DELETED>
        <DELETED>    ``(2) Investment of fees.--The Register of 
        Copyrights shall receive all fees deposited under this section 
        and, after deducting the reasonable costs incurred by the 
        Copyright Office under this section (other than the costs 
        deducted under paragraph (4)), shall deposit the balance in the 
        Treasury of the United States, in such manner as the Secretary 
        of the Treasury directs. All funds held by the Secretary of the 
        Treasury shall be invested in interest-bearing securities of 
        the United States for later distribution with interest by the 
        Copyright Royalty Adjudication Board as provided in this title. 
        The Register may, four or more years after the close of any 
        calendar year, close out the account for royalty payments made 
        under this section for that calendar year (including payments 
        made under this section as in effect before the effective date 
        of the Copyright Compulsory License Improvement Act), and may 
        treat any funds remaining in such account and any subsequent 
        deposits that would otherwise be attributable to that calendar 
        year as attributable to the calendar year in which the account 
        is closed.</DELETED>
        <DELETED>    ``(3) Persons to whom fees are distributed.--The 
        royalty fees deposited under paragraph (2) shall, in accordance 
        with the procedures provided in paragraph (4), be distributed 
        to those copyright owners whose works were included in a 
        secondary transmission for private home viewing made by a 
        satellite carrier during the applicable 6-month accounting 
        period and who file a claim with the Board under paragraph 
        (4).</DELETED>
        <DELETED>    ``(4) Procedures for distribution.--The royalty 
        fees deposited under paragraph (2) shall be distributed in 
        accordance with the following procedures:</DELETED>
                <DELETED>    ``(A) Filing of claims for fees.--During 
                the month of July in each year, each person claiming to 
                be entitled to statutory license fees for secondary 
                transmissions for private home viewing shall file a 
                claim with the Copyright Royalty Adjudication Board, in 
                accordance with requirements that the Board shall 
                prescribe by regulation. For purposes of this 
                paragraph, any claimants may agree among themselves as 
                to the proportionate division of statutory license fees 
among them, may lump their claims together and file them jointly or as 
a single claim, or may designate a common agent to receive payment on 
their behalf.</DELETED>
                <DELETED>    ``(B) Determination of controversy; 
                distributions.--After the first day of August of each 
                year, the Copyright Royalty Adjudication Board shall 
                determine whether there exists a controversy concerning 
                the distribution of royalty fees. If the Board 
                determines that no such controversy exists, the Board 
                shall, after deducting reasonable administrative costs 
                under this paragraph, distribute such fees to the 
                copyright owners entitled to receive them, or to their 
                designated agents. If the Board finds the existence of 
                a controversy, the Board shall, pursuant to chapter 8 
                of this title, conduct a proceeding to determine the 
                distribution of royalty fees.</DELETED>
                <DELETED>    ``(C) Withholding of fees during 
                controversy.--During the pendency of any proceeding 
                under this subsection, the Copyright Royalty 
                Adjudication Board shall withhold from distribution an 
                amount sufficient to satisfy all claims with respect to 
                which a controversy exists, but shall have discretion 
                to proceed to distribute any amounts that are not in 
                controversy. The action of the Board to distribute 
                royalty fees may precede the declaration of a 
                controversy if all parties to the proceeding file a 
                petition with the Board requesting such distribution, 
                except that such amount may not exceed 50 percent of 
                the amounts on hand at the time of the 
                request.''.</DELETED>

<DELETED>SEC. 4. DEFINITIONS.</DELETED>

<DELETED>    Section 119 of title 17, United States Code, is amended by 
striking subsection (d) and inserting the following:</DELETED>
<DELETED>    ``(d) Definitions.--As used in this section--</DELETED>
        <DELETED>    ``(1) Designated market area.--The term 
        `designated market area' has the meaning given that term in 
        section 337(g) of the Communications Act of 1934.</DELETED>
        <DELETED>    ``(2) Distributor.--The term `distributor' means 
        an entity which contracts to distribute secondary transmissions 
        from a satellite carrier and, either as a single channel or in 
        a package with other programming, provides the secondary 
        transmission either directly to individual subscribers for 
        private home viewing or indirectly through other program 
        distribution entities.</DELETED>
        <DELETED>    ``(3) Local market.--The `local market' for a 
        television broadcast station has the meaning given that term in 
        section 337(g) of the Communications Act of 1934.</DELETED>
        <DELETED>    ``(4) Primary transmission.--The term `primary 
        transmission' has the meaning given that term in section 111(f) 
        of this title.</DELETED>
        <DELETED>    ``(5) Private home viewing.--The term `private 
        home viewing' means the viewing, for private use in a household 
        by means of satellite reception equipment which is operated by 
        an individual in that household and which serves only such 
        household, of a secondary transmission delivered by a satellite 
        carrier of a primary transmission of a television station 
        licensed by the Federal Communications Commission or of the 
        Public Broadcasting Service satellite feed.</DELETED>
        <DELETED>    ``(6) Public broadcasting service satellite 
        feed.--The term `Public Broadcasting Service satellite feed' 
        means the national satellite feed distributed by the Public 
        Broadcasting Service (other than the transmissions that may not 
        be encrypted under section 705(c) of the Communications Act of 
        1934), consisting of educational and informational programming 
        intended for private home viewing, to which the Public 
        Broadcasting Service holds national terrestrial broadcast 
        rights.</DELETED>
        <DELETED>    ``(7) Satellite carrier.--The term `satellite 
        carrier' means an entity that uses the facilities of a 
        satellite or satellite service licensed by the Federal 
        Communications Commission, and operates in the Fixed-Satellite 
        Service under part 25 of title 47, Code of Federal Regulations 
        (as in effect on February 1, 1998), or the Direct Broadcast 
        Satellite Service under part 100 of title 47, Code of Federal 
        Regulations (as in effect on February 1, 1998), to establish 
        and operate a channel of communications for point-to-multipoint 
        distribution of television station signals, and that owns or 
        leases a capacity or service on a satellite in order to provide 
        such point-to-multipoint distribution, except to the extent 
        that such entity provides such distribution pursuant to tariff 
        under the Communications Act of 1934, other than for private 
        home viewing.</DELETED>
        <DELETED>    ``(8) Secondary transmission.--The term `secondary 
        transmission' means the further transmitting of a primary 
        transmission simultaneously with the primary 
        transmission.</DELETED>
        <DELETED>    ``(9) Subscriber.--The term `subscriber' means an 
        individual who receives a secondary transmission service for 
        private home viewing by means of a secondary transmission from 
        a satellite carrier and pays a fee for the service, directly or 
        indirectly, to the satellite carrier or to a 
        distributor.</DELETED>
        <DELETED>    ``(10) Television broadcast station.--The term 
        `television broadcast station' means an over-the-air, 
        commercial or noncommercial television broadcast station 
        licensed by the Federal Communications Commission under subpart 
        E of part 73 of title 47, Code of Federal 
        Regulations.''.</DELETED>

<DELETED>SEC. 5. EXCLUSIVITY OF SECTION 119 OF TITLE 17, UNITED STATES 
              CODE.</DELETED>

<DELETED>    Section 119 of title 17, United States Code, is amended by 
adding at the end the following:</DELETED>
<DELETED>    ``(e) Exclusivity for This Section With Respect to 
Secondary Transmissions of Television Stations by Satellite to Members 
of the Public.--No provision of section 111 of this title or any other 
law (other than this section) shall be construed to contain any 
authorization, exemption, or license through which secondary 
transmissions by satellite carriers for private home viewing of 
programming contained in a primary transmission may be made without 
obtaining the consent of the copyright owner.''.</DELETED>

<DELETED>SEC. 6. CONFORMING AMENDMENT.</DELETED>

<DELETED>    The table of contents for chapter 1 of title 17, United 
States Code, is amended by striking the item relating to section 119 
and inserting the following:</DELETED>

<DELETED>``119. Limitations on exclusive rights: Secondary 
                            transmissions by satellite carriers.''.

<DELETED>SEC. 7. COPYRIGHT ROYALTY ADJUDICATION BOARD.</DELETED>

<DELETED>    (a) Establishment and Functions.--Chapter 8 of title 17, 
United States Code, is amended to read as follows:</DELETED>

  <DELETED>``CHAPTER 8--COPYRIGHT ROYALTY ADJUDICATION BOARD</DELETED>

<DELETED>``Sec.
<DELETED>``801. Copyright Royalty Adjudication Board: establishment.
<DELETED>``802. Membership and qualifications of the Board.
<DELETED>``803. Selection of administrative copyright judges.
<DELETED>``804. Independence of the Board.
<DELETED>``805. Removal and sanction of administrative copyright 
                            judges.
<DELETED>``806. Functions.
<DELETED>``807. Factors for determining royalty fees.
<DELETED>``808. Institution of proceedings.
<DELETED>``809. Conduct of proceedings.
<DELETED>``810. Judicial review.
<DELETED>``811. Administrative matters.
<DELETED>``812. Rule of construction.
<DELETED>``Sec. 801. Copyright Royalty Adjudication Board: 
              establishment</DELETED>
<DELETED>    ``There is hereby established within the Copyright Office 
the Copyright Royalty Adjudication Board (hereinafter referred to in 
this chapter as the `Board').</DELETED>
<DELETED>``Sec. 802. Membership and qualifications of the 
              Board</DELETED>
<DELETED>    ``(a) Membership.--</DELETED>
        <DELETED>    ``(1) In general.--The Board shall consist of 1 
        full-time chief administrative copyright judge, and such part-
        time administrative copyright judges as the Librarian of 
        Congress, upon the recommendation of the Register of 
        Copyrights, finds necessary to conduct the business of the 
        Board in a timely manner. At no time shall the number of 
        authorized administrative copyright judges be less than 3 or 
        more than 5.</DELETED>
        <DELETED>    ``(2) Part-time administrative copyright judges.--
        Chapter 34 of title 5 shall not apply to a part-time 
        administrative copyright judge. For purposes of this subsection 
        the Librarian of Congress shall promulgate regulations relating 
        to part-time employment of administrative copyright 
        judges.</DELETED>
<DELETED>    ``(b) Qualifications.--</DELETED>
        <DELETED>    ``(1) Chief administrative copyright judge.--The 
        chief administrative copyright judge shall be an attorney with 
        10 or more years of legal practice with demonstrated experience 
        in administrative hearings or court trials and demonstrated 
        knowledge of copyright law.</DELETED>
        <DELETED>    ``(2) Other administrative copyright judges.--Each 
        administrative copyright judge, other than the chief 
        administrative copyright judge, shall be an individual with 
        expertise in the business and economics of industries affected 
        by the actions taken by the Board to carry out its 
        functions.</DELETED>
<DELETED>    ``(c) Terms.--(1) The term of each administrative 
copyright judge (including the chief administrative copyright judge) 
shall be 5 years, except that, of the first administrative copyright 
judges appointed, the Librarian of Congress, upon the recommendation of 
the Register of Copyrights, shall appoint all but one of them to lesser 
terms to establish a staggering of terms such that in any calendar year 
no more than one term is due to expire.</DELETED>
<DELETED>    ``(2) The term of each administrative copyright judge 
(including the chief administrative copyright judge) shall begin when 
the term of the predecessor of that member ends. An individual 
appointed to fill the vacancy occurring before the expiration of the 
term for which the predecessor of that individual was appointed shall 
be appointed for the remainder of that term. When the term of office of 
a member ends, the member may continue to serve until a successor is 
selected.</DELETED>
<DELETED>    ``(d) Compensation.--The compensation of the 
administrative copyright judges shall be governed solely by the 
provisions of section 5376 of title 5 and such regulations as the 
Librarian of Congress may adopt that are not inconsistent with that 
section. The compensation of the administrative copyright judges shall 
not be subject to any regulations adopted by the Office of Personnel 
Management pursuant to its authority under section 5376(b)(1) of title 
5.</DELETED>
<DELETED>``Sec. 803. Selection of administrative copyright 
              judges</DELETED>
<DELETED>    ``(a) Selection.--(1) The Librarian of Congress, upon the 
recommendation of the Register of Copyrights, shall select the 
administrative copyright judges (including the chief administrative 
copyright judge) among individuals found qualified under section 802(b) 
who meet the financial conflict of interest under section 805(a). 
Notwithstanding any other provision of law and at the discretion of the 
Librarian, the Librarian shall determine the method of selecting the 
members.</DELETED>
<DELETED>    ``(2) Administrative copyright judges previously selected 
by the Librarian of Congress may be selected to serve additional terms. 
There shall be no limit on the number of terms any individual may 
serve.</DELETED>
<DELETED>    ``(b) Effect of Vacancy.--In no event shall a vacancy in 
the Board impair the right of the remaining administrative copyright 
judges to exercise all of the powers of the Board.</DELETED>
<DELETED>``Sec. 804. Independence of the Board</DELETED>
<DELETED>    ``(a) In General.--The Board shall have independence in 
reaching its determinations concerning the adjustment of copyright 
royalty rates, the distribution of copyright royalties, the acceptance 
or rejection of royalty claims and rate adjustment petitions, and such 
rulemaking functions as are delegated to it under this title.</DELETED>
<DELETED>    ``(b) Performance Appraisals.--Notwithstanding any other 
provision of law or any regulation of the Library of Congress, no 
administrative copyright judge shall receive an annual performance 
appraisal.</DELETED>
<DELETED>    ``(c) Inconsistent Duties Barred.--No administrative 
copyright judge may be assigned duties inconsistent with his or her 
duties and responsibilities as a administrative copyright 
judge.</DELETED>
<DELETED>``Sec. 805. Removal and sanction of administrative copyright 
              judges</DELETED>
<DELETED>    ``(a) Standards of Conduct.--The Librarian of Congress, 
upon the recommendation of the Register of Copyrights, shall adopt 
regulations regarding the standards of conduct, including financial 
conflict of interest and restrictions against ex parte communications, 
which shall govern the administrative copyright judges and the 
proceedings under this chapter.</DELETED>
<DELETED>    ``(b) Removal or Sanction.--The Librarian of Congress, 
upon the recommendation of the Register of Copyrights, may remove or 
sanction an administrative copyright judge for violation of the 
standards of conduct adopted under subsection (a), misconduct, neglect 
of duty, or any disqualifying physical or mental disability. Any such 
removal or sanction may be made only after notice and opportunity for 
hearing, but the Librarian of Congress, upon the recommendation of the 
Register of Copyrights, may suspend the administrative copyright judge 
during the pendency of such hearing.</DELETED>
<DELETED>``Sec. 806. Functions</DELETED>
<DELETED>    ``Subject to the provisions of this chapter, the functions 
of the Board shall be--</DELETED>
        <DELETED>    ``(1) to make determinations concerning the 
        adjustment of reasonable copyright royalty rates for--
        </DELETED>
                <DELETED>    ``(A) secondary transmissions to the 
                public by a cable system of a primary transmission as 
                provided in section 111;</DELETED>
                <DELETED>    ``(B) the making and distributing of 
                phonorecords by means other than digital phonorecord 
                delivery, as provided in section 115;</DELETED>
                <DELETED>    ``(C) secondary transmissions to the 
                public by a satellite carrier of a primary transmission 
                made by a television broadcast station and the Public 
                Broadcasting Service satellite feed as provided in 
                section 119; and</DELETED>
                <DELETED>    ``(D) each digital audio recording device 
                imported into and distributed in the United States or 
                manufactured and distributed into the United States as 
                provided in section 1004;</DELETED>
        <DELETED>    ``(2) to make determinations as to reasonable 
        rates and terms of royalty payments for--</DELETED>
                <DELETED>    ``(A) the public performance of a sound 
                recording by means of a digital audio transmission as 
                provided in section 114;</DELETED>
                <DELETED>    ``(B) the making and distribution of 
                phonorecords by means of a digital phonorecord delivery 
                as provided in section 115;</DELETED>
                <DELETED>    ``(C) the public performance of 
                nondramatic musical works by means of coin-operated 
                phonorecord players as provided in section 116; 
                and</DELETED>
                <DELETED>    ``(D) the use of nondramatic musical works 
                and pictorial, graphic, and sculptural works by public 
                broadcasting entities as provided in section 
                118;</DELETED>
        <DELETED>    ``(3) to accept or reject royalty claims filed 
        under sections 111, 119, and 1007, on the basis of timeliness 
        or the failure to establish the basis for a claim;</DELETED>
        <DELETED>    ``(4) to determine, in cases where controversy 
        exists, the distribution of royalty fees deposited with the 
        Register of Copyrights under sections 111, 119, and 
        1003;</DELETED>
        <DELETED>    ``(5) to determine the status of a digital audio 
        recording device or a digital audio interface device under 
        sections 1002 and 1003, as provided in section 1010; 
        and</DELETED>
        <DELETED>    ``(6) to engage in such rulemaking as is expressly 
        provided in sections 111, 114, 115, 118, and 119.</DELETED>
<DELETED>``Sec. 807. Factors for determining royalty fees</DELETED>
<DELETED>    ``(a) For Cable Rates.--The rates applicable under section 
111 shall be calculated solely in accordance with the following 
provisions:</DELETED>
        <DELETED>    ``(1) The rates established by section 
        111(d)(1)(B) may be adjusted to reflect--</DELETED>
                <DELETED>    ``(A) national monetary inflation or 
                deflation, or</DELETED>
                <DELETED>    ``(B) changes in the average rates charged 
                cable subscribers for the basic service of providing 
                secondary transmissions to maintain the real constant 
                dollar level of the royalty fee per subscriber which 
                existed as of October 19, 1976, except that--</DELETED>
                        <DELETED>    ``(i) if the average rates charged 
                        cable system subscribers for the basic service 
                        of providing secondary transmissions are 
                        changed so that the average rates exceed 
                        national monetary inflation, no change in the 
                        rates established by section 111(d)(1)(B) shall 
                        be permitted; and</DELETED>
                        <DELETED>    ``(ii) no increase in the royalty 
                        fee shall be permitted based on any reduction 
                        in the average number of distant signal 
                        equivalents per subscriber.</DELETED>
        <DELETED>The Board may consider all factors relating to the 
        maintenance of such level of payments including, as an 
        extenuating factor, whether the cable industry has been 
        restrained by subscriber rate regulating authorities from 
        increasing the rates for the basic service of providing 
        secondary transmissions.</DELETED>
        <DELETED>    ``(2) In the event that the rules and regulations 
        of the Federal Communications Commission are amended at any 
        time after April 15, 1976, to permit the carriage by cable 
        systems of additional television broadcasting signals beyond 
        the local service area of the primary transmitters of such 
        signals, the royalty rates established by section 111(d)(1)(B) 
        may be adjusted to insure that the rates for the additional 
        distant signal equivalents resulting from such carriage are 
        reasonable in light of the changes effected by the amendment to 
such rules and regulations. In determining the reasonableness of rates 
proposed following an amendment of Federal Communications Commission 
rules and regulations, the Board shall consider, among other factors, 
the economic impact on copyright owners and users, except that no 
adjustment in royalty rates shall be made under this paragraph with 
respect to any distant signal equivalent or fraction thereof 
represented by--</DELETED>
                <DELETED>    ``(A) carriage of any signal permitted 
                under the rules and regulations of the Federal 
                Communications Commission in effect on April 15, 1976, 
                or the carriage of a signal of the same type (that is, 
                independent, network, or noncommercial educational) 
                substituted for such permitted signal, or</DELETED>
                <DELETED>    ``(B) a television broadcast signal first 
                carried after April 15 1976, pursuant to an individual 
                waiver of the rules and regulations of the Federal 
                Communications Commission, as such rules and 
                regulations were in effect on April 15, 1976.</DELETED>
        <DELETED>    ``(3) In the event of any change in the rules and 
        regulations of the Federal Communications Commission with 
        respect to syndicated and sport program exclusivity after April 
        15, 1976, the rates established by section 111(d)(1)(B) may be 
        adjusted to assure that such rates are reasonable in light of 
        the changes to such rules and regulations, but any such 
        adjustment shall apply only to the affected television 
        broadcast signals carried on those systems affected by the 
        change.</DELETED>
        <DELETED>    ``(4) The gross receipts limitations established 
        by section 111(d)(1)(C) and (D) shall be adjusted to reflect 
        national monetary inflation or deflation or changes in the 
        average rates charged cable system subscribers for the basic 
        service of providing secondary transmissions to maintain the 
        real constant dollar value of the exemption provided by such 
        section, and the royalty rate specified therein shall not be 
        subject to adjustment.</DELETED>
<DELETED>    ``(b) For Rates Other Than Cable or Satellite Carriers.--
The rates applicable under sections 114, 115, and 116 shall be 
calculated to achieve the following objectives:</DELETED>
        <DELETED>    ``(1) To maximize the availability of creative 
        works to the public.</DELETED>
        <DELETED>    ``(2) To afford the copyright owner a fair return 
        for his or her creative work and the copyright user a fair 
        income under existing economic conditions.</DELETED>
        <DELETED>    ``(3) To reflect the relative roles of the 
        copyright owner and the copyright user in the product made 
        available to the public with respect to relative creative 
        contribution, technological contribution, capital investment, 
        cost, risk, and contribution to the opening of new markets for 
        creative expression and media for their 
        communications.</DELETED>
        <DELETED>    ``(4) To minimize any disruptive impact on the 
        structure of the industries involved and on generally 
        prevailing industry practices.</DELETED>
<DELETED>    ``(c) For Rates for Noncommercial Broadcasting.--The rates 
applicable under section 118 shall be calculated to achieve reasonable 
rates. In determining reasonable rates, the Board shall base its 
decision so as to--</DELETED>
        <DELETED>    ``(1) assure a fair return to copyright 
        owners;</DELETED>
        <DELETED>    ``(2) encourage the growth and development of 
        public broadcasting; and</DELETED>
        <DELETED>    ``(3) encourage musical and artistic 
        creation.</DELETED>
<DELETED>    ``(d) Rates for Satellite Carriers.--The rates applicable 
under section 119 shall be calculated to represent most clearly the 
fair market value of secondary transmissions. In determining the fair 
market value, the Board shall base its decision on economic, 
competitive, and programming information presented by the parties, 
including--</DELETED>
        <DELETED>    ``(1) the competitive environment in which such 
        programming is distributed, the cost for similar signals in 
        similar private and compulsory license marketplaces, and any 
        special features and conditions of the retransmission 
        marketplace;</DELETED>
        <DELETED>    ``(2) the economic impact of such fees on 
        copyright owners and satellite carriers; and</DELETED>
        <DELETED>    ``(3) the impact on the continued availability of 
        secondary transmissions to the public.</DELETED>
<DELETED>``Sec. 808. Institution of proceedings</DELETED>
<DELETED>    ``(a) Petition Required To Institute Proceedings.--With 
respect to proceedings concerning the adjustment of royalty rates as 
provided in sections 111, 114, 115, 116, and 119, during the calendar 
years or under the circumstances specified in the schedule set forth in 
subsection (c), any owner or user of a copyrighted work whose royalty 
rates are to be established or adjusted by the Board may file a 
petition with the Board declaring that the petitioner requests an 
adjustment of the rate. The Board shall make a determination as to 
whether the petitioner has a significant interest in the royalty rate 
in which an adjustment is requested. If the Board determines that the 
petitioner has a significant interest, the Board shall cause notice of 
this determination, with the reasons therefor, to be published in the 
Federal Register, together with the notice of commencement of 
proceedings under this chapter. With respect to proceedings concerning 
the adjustment of royalty rates under section 1004, any interested 
copyright party may petition the Board as provided in that 
section.</DELETED>
<DELETED>    ``(b) Petition Not Required To Institute Proceedings.--
With respect to proceedings concerning the adjustment of royalty rates 
as provided in section 118 and the distribution of royalties as 
provided in section 111, 119, and 1007, no petition is required to 
institute proceedings. All proceedings concerning the adjustment of 
rates under section 118 shall commence as provided in section 118(c) of 
this title. All proceedings concerning the distribution of royalties 
under section 111, 119, or 1007 shall commence as provided in such 
sections and in subsection (c)(8) of this section.</DELETED>
<DELETED>    ``(c) Schedule of Proceedings.--</DELETED>
        <DELETED>    ``(1) Section 111 proceedings.--In proceedings 
        concerning the adjustment of royalty rates as provided in 
        section 111, a petition described in subsection (a) may be 
        filed during the year 2000 and in each subsequent fifth 
        calendar year, except that in the event that the rules and 
        regulations of the Federal Communications Commission are 
        amended with respect to distant signal importation, or to 
        syndicated and sports program exclusivity, any owner or user of 
        a copyrighted work subject to the royalty rates established or 
        adjusted pursuant to section 111 may, within 12 months after 
        such amendments take effect, file a petition with the Board to 
        institute proceedings to insure that the rates are reasonable 
        in light of the changes to such rules and regulations. Any such 
        adjustments shall apply only to the affected television 
        broadcast signals carried on those systems affected by the 
        change. Any change in royalty rates made pursuant to this 
        subsection may be reconsidered in the year 2000, and each fifth 
        calendar year thereafter, as the case may be.</DELETED>
        <DELETED>    ``(2) Section 114 proceedings.--In proceedings 
        concerning the adjustment of royalty rates and terms as 
        provided in section 114, the Board shall proceed when and as 
        provided by that section.</DELETED>
        <DELETED>    ``(3) Section 115 proceedings.--In proceedings 
        concerning the adjustment of royalty rates and terms as 
        provided in section 115, a petition described in subsection (a) 
        may be filed in the year 2007 and in each subsequent tenth 
        calendar year or as prescribed in section 115(c)(3).</DELETED>
        <DELETED>    ``(4) Section 116 proceedings.--(A) In proceedings 
        concerning the adjustment of royalty rates as provided in 
        section 116, a petition described in subsection (a) may be 
        filed at any time within 1 year after negotiated licenses 
        authorized by section 116 are terminated or expire or are not 
        replaced by subsequent agreements.</DELETED>
        <DELETED>    ``(B) If a negotiated license authorized by 
        section 116 is terminated or expires and is not replaced by 
        another such license agreement which provides permission to use 
        a quantity of musical works not substantially smaller than the 
        quantity of such works performed on coin-operated phonorecord 
        players during the 1-year period ending March 1, 1989, the 
        Board, upon petition filed under subsection (a) within 1 year 
        after such termination or expiration, shall promptly establish 
        an interim royalty rate or rates for the public performance by 
        means of a coin-operated phonorecord player of nondramatic 
        musical works embodied in phonorecords which had been subject 
        to the terminated or expired negotiated license agreement. Such 
        rate or rates shall be the same as the last such rate or rates 
        and shall remain in force until the conclusion of the 
        proceedings to adjust the royalty rates applicable to such 
        works, or until superseded by a new negotiated license 
        agreement, as provided in section 116(b).</DELETED>
        <DELETED>    ``(5) Section 118 proceedings.--In proceedings 
        concerning the adjustment of royalty rates and terms as 
        provided in section 118, the Board shall proceed when and as 
        provided by that section.</DELETED>
        <DELETED>    ``(6) Section 119 proceedings.--In proceedings 
        concerning the adjustment of royalty rates governing secondary 
        transmissions of as provided in section 119, a petition 
        described in subsection (a) may be filed during the year 2001 
        and in each subsequent fifth calendar year.</DELETED>
        <DELETED>    ``(7) Proceedings concerning distribution of 
        royalty fees.--In proceedings concerning the distribution of 
        royalty fees under section 111, 119, or 1007, the Board shall, 
        upon a determination that a controversy exists concerning such 
        distribution, cause to be published in the Federal Register 
        notice of commencement of proceedings under this 
        chapter.</DELETED>
<DELETED>``Sec. 809. Conduct of proceedings</DELETED>
<DELETED>    ``(a) Board Proceedings.--The Board shall, for the 
purposes of making its determinations in carrying out the functions set 
forth in section 806, conduct proceedings subject to subchapter II of 
chapter 5 of title 5.</DELETED>
<DELETED>    ``(b) Procedures.--Subject to the approval of the Register 
of Copyrights, the Board, shall adopt regulations to govern the conduct 
of the proceedings of the Board. The regulations shall include, but not 
be limited to, provisions for--</DELETED>
        <DELETED>    ``(1) public access to and inspection of the 
        records of the Board pursuant to section 706;</DELETED>
        <DELETED>    ``(2) the right of the public to attend the 
        proceedings of the Board;</DELETED>
        <DELETED>    ``(3) the procedures to apply when formal hearings 
        are conducted; and</DELETED>
        <DELETED>    ``(4) the procedures to apply and the basis upon 
        which distribution or royalty controversies may be decided on 
        the basis of written pleadings.</DELETED>
<DELETED>    ``(c) Participation of Copyright Office.--During the 
conduct of proceedings, the Register of Copyrights may file formally 
with the Board the position of the Copyright Office on any matter 
before the Board. Such filings shall be served on all parties to the 
proceeding. The Board may accept or reject the position of the 
Copyright Office.</DELETED>
<DELETED>    ``(d) Majority Rule.--The Board shall act in all 
procedural and substantive matters on the basis of majority 
rule.</DELETED>
<DELETED>    ``(e) Number of Presiding Judges.--The Board shall decide, 
in its discretion, whether 1 or 3 administrative copyright judges shall 
preside in a royalty distribution or rate adjustment proceeding. In no 
event shall the number of presiding administrative copyright judges be 
more than 3.</DELETED>
<DELETED>    ``(f) Participation of Parties.--Any copyright owner who 
has filed an acceptable claim claiming entitlement to the distribution 
of royalties, or any copyright owner or user who would be affected by a 
royalty rate to be established or adjusted by the Board, may submit 
relevant information and proposals to the Board in proceedings 
applicable to the interest of the copyright owner or user.</DELETED>
<DELETED>    ``(g) Time Limits for Initial Decision.--Proceedings under 
section 118 operate under the time limits established in that section. 
For all other proceedings, if 1 administrative copyright judge is 
presiding in a proceeding, the Board shall issue its initial decision 
to the parties to the proceeding and the Register of Copyrights within 
6 months after the declaration of a controversy in the proceeding. If 
more than 1 administrative copyright judge is presiding in a 
proceeding, the Board shall issue its initial decision to the parties 
to the proceeding and the Register of Copyrights within 1 year after 
the declaration of a controversy in the proceeding.</DELETED>
<DELETED>    ``(h) Requirements for Initial Decisions.--The initial 
decision under subsection (g) shall include a statement of findings and 
conclusions and the reasons or basis therefor, on all the material 
issues of fact, law, or discretion presented on the record. The initial 
decision shall take into account prior decisions of the Copyright 
Royalty Tribunal, prior decisions of copyright arbitration royalty 
panels, as adopted or modified by the Librarian of Congress, and the 
procedural and evidentiary rulings the Librarian of Congress made that 
were applicable to the proceedings of the copyright arbitration royalty 
panels. Notwithstanding any provision of section 603 or 604 of title 5, 
neither the initial decision nor the final decision is required to 
include a regulatory flexibility analysis.</DELETED>
<DELETED>    ``(i) Petitions for Reconsideration and Final Agency 
Action.--Any party to the proceeding concerned or the Register of 
Copyrights may petition the Board to reconsider its initial decision in 
the proceeding. If there are no petitions for reconsideration, the 
initial decision becomes the final decision of the Board without 
further proceedings. If there are petitions for reconsideration, the 
Board shall issue a final decision to the parties to the proceeding and 
the Register of Copyrights which shall constitute final agency action. 
The time period by which parties to the proceeding or the Register of 
Copyrights may file a petition for reconsideration and the time period 
by which the Board shall render its final decision shall be established 
by regulation by the Board, subject to the approval of the Register of 
Copyrights.</DELETED>
<DELETED>``Sec. 810. Judicial review</DELETED>
<DELETED>    ``(a) Appeals.--Within 1 week after the Board issues a 
final decision under section 809, or, if there are no petitions for 
reconsideration, within 1 week after the time the initial decision of 
the Board under section 809 becomes the final decision, the Board shall 
cause to be published in the Federal Register the decision of the rate 
adjustment or the royalty distribution, as the case may be. Any 
aggrieved party who would be bound by the final decision may appeal the 
decision to the United States Court of Appeals for the Federal Circuit 
within 30 days after the publication of the decision in the Federal 
Register. In any appeal to which the Board is a party, the chief 
administrative copyright judge shall refer the conduct of the 
litigation in defense of the Board's decision to the Department of 
Justice which shall have the authority to represent the Board under 
section 516 of title 28. If no appeal is brought within such 30-day 
period, the decision of the Board is final, and the royalty fee or 
determination with respect to the distribution of fees, as the case may 
be, shall take effect as set forth in the decision. The pendency of an 
appeal under this subsection shall not relieve persons who would be 
affected by the determinations on appeal under section 111, 114, 115, 
116, 118, 119, or 1003, of the obligation to deposit the statement of 
account or to pay royalty fees specified in those sections.</DELETED>
<DELETED>    ``(b) Review Subject to Chapter 7 of Title 5.--The 
judicial review of the Board's final decision shall be had, in 
accordance with chapter 7 of title 5, on the basis of the record before 
the Board.</DELETED>
<DELETED>``Sec. 811. Administrative matters</DELETED>
<DELETED>    ``(a) Administrative Support.--The Library of Congress, 
upon the recommendation of the Register of Copyrights, shall provide 
the Board with the necessary administrative services and personnel 
related to proceedings under this title.</DELETED>
<DELETED>    ``(b) Authority To Publish in Federal Register.--The 
actions of the Board which may be published in the Federal Register by 
and under the authority of the Board include--</DELETED>
        <DELETED>    ``(1) actions of the Board required to be 
        published in the Federal Register under this title;</DELETED>
        <DELETED>    ``(2) actions of the Board required to be 
        published in the Federal Register under regulations adopted by 
        the Board upon the approval of the Register of Copyrights; 
        and</DELETED>
        <DELETED>    ``(3) regulations of the Board required to be 
        published in the Federal Register to which the Board has been 
        delegated the exclusive right to adopt.</DELETED>
<DELETED>    ``(c) Collection and Use of Fees.--</DELETED>
        <DELETED>    ``(1) Deduction of costs from fees.--The Librarian 
        of Congress and the Register of Copyrights may, to the extent 
        not otherwise provided under this title, deduct from the 
        royalty fees deposited or fees collected under this title the 
        reasonable costs incurred by the Library of Congress and the 
        Copyright Office under this chapter. Such deduction may be made 
        before the fees are distributed to any copyright 
        owner.</DELETED>
        <DELETED>    ``(2) Collection of fees.--The Register of 
        Copyrights may impose and collect fees in advance to carry out 
        the ratemaking proceedings. All fees received under this 
        section shall be deposited by the Register of Copyrights in the 
        Treasury of the United States and shall be credited to the 
        appropriations for necessary expenses of the Copyright Office. 
        Such fees that are collected shall remain available until 
        expended. The Register may refund any sum paid by mistake or in 
        excess of the fee required under this section.</DELETED>
<DELETED>    ``(d) Positions Required for Administration of Compulsory 
Licensing.--Section 307 of the Legislative Branch Appropriations Act of 
1994 shall not apply to the members of the Board, employee positions in 
the Board, or employee positions in the Library of Congress that are 
required to be filled in order to carry out section 111, 114, 115, 116, 
118, or 119 or chapter 10.</DELETED>
<DELETED>    ``(e) Budget.--In each annual request for appropriations, 
the Register of Copyrights shall identify the portion thereof intended 
for the support of the Board and a statement which shall include an 
assessment of the budgetary needs of the Board.</DELETED>
<DELETED>    ``(f) Annual Report.--The Board shall prepare an annual 
report of its work and accomplishments during each fiscal year, which 
the Register of Copyrights shall include in the annual report required 
under section 701(c).</DELETED>
<DELETED>``Sec. 812. Rule of construction</DELETED>
<DELETED>    ``Nothing in this chapter shall be construed to affect the 
authority of the Register of Copyrights to establish regulations under 
sections 701 and 702.''.</DELETED>
<DELETED>    (b) Technical and Conforming Amendments.--</DELETED>
        <DELETED>    (1) Table of chapters.--The item relating to 
        chapter 8 in the table of chapters for title 17, United States 
        Code, is amended to read as follows:</DELETED>

<DELETED>``8. Copyright Royalty Adjudication Board..........     801''.
        <DELETED>    (2) Jurisdiction of federal circuit.--Section 
        1295(a) of title 28, United States Code, is amended--</DELETED>
                <DELETED>    (A) in paragraph (13) by striking ``and'' 
                after the semicolon;</DELETED>
                <DELETED>    (B) in paragraph (14) by striking the 
                period and inserting a semicolon and ``and ''; 
                and</DELETED>
                <DELETED>    (C) by adding at the end the following new 
                paragraph:</DELETED>
        <DELETED>    ``(15) of an appeal from a final decision of the 
        Copyright Royalty Adjudication Board under sections 809(i) and 
        810 of title 17.''.</DELETED>

<DELETED>SEC. 8. TRANSITION PROVISIONS.</DELETED>

<DELETED>    (a) Transitional Procedures.--During the period beginning 
on the date of the enactment of this Act and ending on the effective 
date of this Act, the Register of Copyrights shall adopt regulations to 
govern proceedings under chapter 8 of title 17, United States Code, as 
amended by section 7 of this Act. Such regulations shall remain in 
effect unless and until the Copyright Royalty Adjudication Board, upon 
the approval of the Register of Copyrights, adopts supplemental or 
superseding regulations pursuant to section 809(b) of title 17, United 
States Code.</DELETED>
<DELETED>    (b) Proceedings in Progress.--</DELETED>
        <DELETED>    (1) Copyright arbitration royalty panel 
        proceedings.--Unless the Register of Copyrights, for good 
        cause, finds otherwise, proceedings in which a copyright 
        arbitration royalty panel has been convened by the Librarian of 
        Congress under chapter 8 of title 17, United States Code, as in 
        effect before the effective date of this Act, shall continue in 
        effect and shall be governed under chapter 8 of such title, and 
        applicable regulations, as in effect prior to such effective 
        date, and proceedings in which a copyright arbitration royalty 
        panel has not been convened by the Librarian of Congress under 
        chapter 8 of title 17, United States Code, before the effective 
        date of this Act shall be suspended and recommenced under the 
        amendments made by section 7.</DELETED>
        <DELETED>    (2) Continued proceedings.--For those proceedings 
        continued under paragraph (1), the functions of the Librarian 
        of Congress and the Register of Copyrights relating to the 
        report of the copyright arbitration royalty panel under title 
        17, United States Code, as in effect before the effective date 
        of this Act, may, in the Librarian's discretion, upon the 
        recommendation of the Register of Copyrights, be delegated to 
        the Copyright Royalty Adjudication Board, when 
        constituted.</DELETED>
        <DELETED>    (3) Appeals.--In any appeal of a decision of the 
        Librarian of Congress adopting or rejecting a determination of 
        a copyright arbitration royalty panel which is pending in the 
        United States Court of Appeals for the District of Columbia 
        Circuit on or after the effective date of this Act, if such 
        case is remanded by the court, the Librarian of Congress shall 
        not reconvene the copyright arbitration royalty panel which 
        rendered the determination, but shall direct the Copyright 
        Royalty Adjudication Board, when constituted, to conduct 
        proceedings in accordance with the directions of the court. If 
        the case is remanded by the court after the enactment date of 
        this Act but before the effective date of this Act, the 
        Librarian of Congress shall have the discretion to reconvene 
        the copyright arbitration royalty panel which rendered the 
        determination, or direct the Copyright Royalty Adjudication 
        Board when constituted, to conduct proceedings in accordance 
        with the directions of the court.</DELETED>
<DELETED>    (c) Effectiveness of Existing Rates and Distributions.--
All royalty rates and all determinations with respect to the 
proportionate division of compulsory license fees among copyright 
claimants, whether made by the Copyright Royalty Tribunal, copyright 
arbitration royalty panels, or by voluntary agreement, before the 
effective date of this Act, shall remain in effect until modified by 
voluntary agreement or pursuant to the amendments made by this 
Act.</DELETED>
<DELETED>    (d) Transfer of Appropriations.--All unexpended balances 
of appropriations made by the Copyright Office for the support of the 
copyright arbitration royalty panels, as of the effective date of this 
Act, are transferred on such effective date to the support of the 
Copyright Royalty Arbitration Board for the purposes for which such 
appropriations were made except that, in the event that any copyright 
arbitration royalty panels continue to operate after the effective date 
of this Act, the Register of Copyrights shall retain such portions of 
the unexpended balances of appropriations as are necessary to support 
the continuing copyright arbitration royalty panels.</DELETED>

<DELETED>SEC. 9. AMENDMENTS TO OTHER PROVISIONS OF TITLE 17, UNITED 
              STATES CODE.</DELETED>

<DELETED>    (a) Secondary Transmissions by Cable Systems.--Section 
111(d) of title 17, United States Code, is amended--</DELETED>
        <DELETED>    (1) in paragraph (2) in the last sentence by 
        striking ``Librarian of Congress'' and all that follows through 
        the end of the sentence and inserting the following: 
        ``Copyright Royalty Adjudication Board as provided in this 
        title. The Register of Copyrights may, 4 or more years after 
        the close of any calendar year, close out the account for 
        royalty payments made for that calendar year, and may treat any 
        funds remaining the such account and any subsequent deposits 
        that would otherwise be attributable to that calendar year as 
        attributable to the succeeding calendar year.''; and</DELETED>
        <DELETED>    (2) in paragraph (4)--</DELETED>
                <DELETED>    (A) in subparagraph (A)--</DELETED>
                        <DELETED>    (i) by striking ``Librarian of 
                        Congress'' the first place it appears and 
                        inserting ``Copyright Royalty Adjudication 
                        Board''; and</DELETED>
                        <DELETED>    (ii) by striking ``Librarian of 
                        Congress'' the second place it appears and 
                        inserting ``Board'';</DELETED>
                <DELETED>    (B) in subparagraph (B)--</DELETED>
                        <DELETED>    (i) by striking ``Librarian of 
                        Congress shall, upon the recommendation of the 
                        Register of Copyrights'' and inserting 
                        ``Copyright Royalty Adjudication Board 
                        shall'';</DELETED>
                        <DELETED>    (ii) by striking ``Librarian'' 
                        each subsequent place it appears and inserting 
                        ``Board''; and</DELETED>
                        <DELETED>    (iii) in the last sentence by 
                        striking ``convene a copyright royalty 
                        arbitration panel'' and inserting ``conduct a 
                        proceeding''; and</DELETED>
                <DELETED>    (C) in subparagraph (C)--</DELETED>
                        <DELETED>    (i) by striking ``Librarian of 
                        Congress'' and inserting ``Copyright Royalty 
                        Adjudication Board''; and</DELETED>
                        <DELETED>    (ii) by adding at the end the 
                        following: ``The action of the Board to 
                        distribute royalty fees may precede the 
                        declaration of a controversy if all parties to 
                        the proceeding file a petition with the Board 
                        requesting such distribution, except that such 
                        amount may not exceed 50 percent of the amounts 
                        on hand at the time of the 
                        request.''.</DELETED>
<DELETED>    (b) Scope of Exclusive Rights in Sound Recordings.--
Section 114(f) of title 17, United States Code, is amended--</DELETED>
        <DELETED>    (1) in paragraph (1)--</DELETED>
                <DELETED>    (A) by amending the first sentence to read 
                as follows: ``During the first week of January, 2000, 
                the Copyright Royalty Adjudication Board shall cause 
                notice to be published in the Federal Register of the 
                initiation of voluntary negotiation proceedings for the 
                purpose of determining or adjusting reasonable terms 
                and rates of royalty payments for the activities 
                specified in subsection (d)(2) of this section.''; 
                and</DELETED>
                <DELETED>    (B) in the third sentence by striking 
                ``Librarian of Congress'' and inserting ``Copyright 
                Royalty Adjudication Board'';</DELETED>
        <DELETED>    (2) by striking paragraphs (2), (3), and (4) and 
        inserting the following:</DELETED>
        <DELETED>    ``(2) In the absence of license agreements 
        negotiated under paragraph (1), during the 60-day period 
        beginning 6 months after publication of the notice specified in 
        paragraph (1), and upon the filing of a petition in accordance 
        with section 808(a), the Copyright Royalty Adjudication Board 
        shall, pursuant to chapter 8, conduct a proceeding to determine 
        and publish in the Federal Register a schedule of rates and 
        terms. In addition to the objectives set forth in section 
        807(a) in establishing or adjusting such rates and terms, the 
        Board may consider the rates and terms for comparable types of 
        digital audio transmission services and comparable 
        circumstances under voluntary license agreements negotiated as 
        provided in paragraph (1). The Copyright Royalty Adjudication 
        Board, upon the approval of the Register of Copyrights, shall 
        also establish requirements by which copyright owners may 
        receive reasonable notice of the use of their sound recordings 
        under this section, and under which records of such use shall 
        be kept and made available by entities performing sound 
        recordings.</DELETED>
        <DELETED>    ``(3) License agreements voluntarily negotiated at 
        any time between 1 or more copyright owners of sound recordings 
        and 1 or more entities performing sound recordings shall be 
        given effect in lieu of any determination by the Copyright 
        Royalty Adjudication Board.</DELETED>
        <DELETED>    ``(4) Publication of a notice of the initiation of 
        voluntary negotiation proceedings as specified in paragraph (1) 
        and the procedures specified in paragraph (2) shall be 
        repeated, in accordance with regulations that the Copyright 
        Royalty Adjudication Board, upon the approval of the Register 
        of Copyrights, shall prescribe--</DELETED>
                <DELETED>    ``(A) no later than 30 days after a 
                petition is filed by any copyright owners of sound 
                recordings or any entities performing sound recordings 
                affected by this section indicating that a new type of 
                digital audio transmission service on which sound 
                recordings are performed is or is about to become 
                operational; and</DELETED>
                <DELETED>    ``(B) during the first week of January 
                2005 and at 5-year intervals thereafter.''; 
                and</DELETED>
        <DELETED>    (3) in paragraph (5)(A)(i) by striking ``Librarian 
        of Congress'' and inserting ``Copyright Royalty Adjudication 
        Board, upon the approval of the Register of 
        Copyrights,''.</DELETED>
<DELETED>    (c) Compulsory License for Making and Distributing 
Phonorecords.--Section 115(c)(3) of title 17, United States Code, is 
amended--</DELETED>
        <DELETED>    (1) in subparagraph (C)--</DELETED>
                <DELETED>    (A) by amending the first sentence to read 
                as follows: ``At the times established in subparagraph 
                (F), the Copyright Royalty Adjudication Board shall 
                cause notice to be published in the Federal Register of 
                the initiation of voluntary negotiation proceedings for 
                the purpose of determining reasonable terms and rates 
                of royalty payments for the activities specified in 
                subparagraph (A) until the effective date of any new 
                terms and rates established pursuant to this 
                subparagraph or subparagraph (D) or (F), or such other 
                date (regarding digital phonorecord deliveries) as the 
                parties may agree.'';</DELETED>
                <DELETED>    (B) in the third sentence by striking 
                ``Librarian of Congress'' and inserting ``Copyright 
                Royalty Adjudication Board'';</DELETED>
        <DELETED>    (2) by amending subparagraph (D) to read as 
        follows:</DELETED>
        <DELETED>    ``(D) In the absence of license agreements 
        negotiated under subparagraphs (B) and (C), upon the filing of 
        a petition in accordance with section 808(a), the Copyright 
        Royalty Adjudication Board shall, pursuant to chapter 8, 
        conduct a proceeding to determine and publish in the Federal 
        Register a schedule of rates and terms. Such rates and terms 
        shall distinguish between--</DELETED>
                <DELETED>    ``(i) digital phonorecord deliveries where 
                the reproduction or distribution of a phonorecord is 
                incidental to the transmission which constitute the 
                digital phonorecord delivery, and</DELETED>
                <DELETED>    ``(ii) digital phonorecord deliveries in 
                general.</DELETED>
<DELETED>In addition to the objectives set forth in section 807(a), in 
establishing or adjusting rates and terms, the Board may consider rates 
and terms under voluntary license agreements negotiated as provided in 
subparagraphs (B) and (C). The Board, upon the approval of the Register 
of Copyrights, shall also establish requirements by which copyright 
owners may receive reasonable notice of the use of their works under 
this section, and under which records of such use shall be kept and 
made available by persons making digital phonorecord 
deliveries.'';</DELETED>
        <DELETED>    (3) in subparagraph (E)(i) in the first sentence 
        by striking ``Librarian of Congress'' and inserting ``Copyright 
        Royalty Adjudication Board''; and</DELETED>
        <DELETED>    (4) in subparagraph (F) by striking ``Librarian of 
        Congress'' and inserting `` Copyright Royalty Adjudication 
        Board, upon the approval of the Register of 
        Copyrights,''.</DELETED>
<DELETED>    (d) Negotiated Licenses for Public Performances by Means 
of Coin-Operated Phonorecord Players.--Section 116 of title 17, United 
States Code, is amended--</DELETED>
        <DELETED>    (1) by amending subsection (b)(2) to read as 
        follows:</DELETED>
        <DELETED>    ``(2) Rate adjustment proceeding.--Parties not 
        subject to such a negotiation may determine, by a rate 
        adjustment proceeding in accordance with the provisions of 
        chapter 8, the terms and rates and the division of fees 
        described in paragraph (1).''; and</DELETED>
                <DELETED>    (2) in subsection (c)--</DELETED>
                        <DELETED>    (A) in the subsection heading by 
                        striking ``Copyright Royalty Arbitration 
                        Panel'' and inserting ``Copyright Royalty 
                        Adjudication Board''; and</DELETED>
                <DELETED>    (B) by striking ``a copyright arbitration 
                royalty panel and inserting ``the Copyright Royalty 
                Adjudication Board''.</DELETED>
<DELETED>    (e) Use of Certain Works in Connection With Noncommercial 
Broadcasting.--Section 118 of title 17, United States Code, is 
amended--</DELETED>
        <DELETED>    (1) in subsection (b)--</DELETED>
                <DELETED>    (A) by striking paragraph (1) and 
                redesignating paragraphs (2) and (3) as paragraphs (1) 
                and (2), respectively;</DELETED>
                <DELETED>    (B) in paragraph (1), as so redesignated, 
                by striking ``Librarian of Congress'' and inserting 
                ``Copyright Royalty Adjudication Board'';</DELETED>
                <DELETED>    (C) in paragraph (2), as so redesignated--
                </DELETED>
                        <DELETED>    (i) by striking ``paragraph (2)'' 
                        each place it appears and inserting ``paragraph 
                        (1)'';</DELETED>
                        <DELETED>    (ii) by striking ``Librarian of 
                        Congress'' the first place it appears and 
                        inserting ``Copyright Royalty Adjudication 
                        Board'';</DELETED>
                        <DELETED>    (iii) by striking ``Librarian of 
                        Congress'' the second and third places it 
                        appears and inserting ``Board''; and</DELETED>
                        <DELETED>    (iv) by striking ``Librarian of 
                        Congress'' the last place it appears and 
                        inserting ``Board, upon the approval of the 
                        Register of Copyrights,'';</DELETED>
        <DELETED>    (2) in subsection (c)--</DELETED>
                <DELETED>    (A) by striking ``1997'' and inserting 
                ``2002''; and</DELETED>
                <DELETED>    (B) by striking ``Librarian of Congress'' 
                and inserting ``Copyright Royalty Adjudication Board, 
                upon the approval of the Register of 
                Copyrights,'';</DELETED>
        <DELETED>    (3) in subsection (d)--</DELETED>
                <DELETED>    (A) by striking ``(b)(2)'' and inserting 
                ``(b)(1)''; and</DELETED>
                <DELETED>    (B) by striking ``a copyright arbitration 
                royalty panel under subsection (b)(3)'' and inserting 
                ``the Copyright Royalty Adjudication Board under 
                subsection (b)(2)''; and</DELETED>
        <DELETED>    (4) in subsection (e), by striking paragraphs (1) 
        and (2).</DELETED>
<DELETED>    (f) Digital Audio Recording Devices and Media.--</DELETED>
        <DELETED>    (1) Royalty payments.--Section 1004(a)(3) of title 
        17, United States Code, is amended in the third sentence--
        </DELETED>
                <DELETED>    (A) by striking ``the 6th year after the 
                effective date of this chapter'' and inserting 
                ``1998'';</DELETED>
                <DELETED>    (B) by striking ``Librarian of Congress'' 
                the first place it appears and inserting ``Copyright 
                Royalty Adjudication Board''; and</DELETED>
                <DELETED>    (C) by striking ``Librarian of Congress'' 
                the second place it appears and inserting 
                ``Board''.</DELETED>
        <DELETED>    (2) Entitlement to royalty payments.--Section 
        1006(c) of title 17, United States Code, is amended by striking 
        ``Librarian of Congress shall convene a copyright arbitration 
        royalty panel which'' and inserting ``Copyright Royalty 
Adjudication Board''.</DELETED>
        <DELETED>    (3) Procedures for distributing royalty 
        payments.--Section 1007 of title 17, United States Code, is 
        amended--</DELETED>
                <DELETED>    (A) in subsection (a)(1)--</DELETED>
                        <DELETED>    (i) by striking ``after the 
                        calendar year in which this chapter takes 
                        effect'';</DELETED>
                        <DELETED>    (ii) by striking ``Librarian of 
                        Congress'' the first place it appears and 
                        inserting ``Copyright Royalty Adjudication 
                        Board''; and</DELETED>
                        <DELETED>    (iii) by striking ``Librarian of 
                        Congress'' the second place it appears and 
                        inserting ``Board'';</DELETED>
                <DELETED>    (B) in subsection (b)--</DELETED>
                        <DELETED>    (i) by amending the first sentence 
                        to read as follows: ``After the first day of 
                        March of each year, the Copyright Royalty 
                        Adjudication Board shall determine whether 
                        there exists a controversy concerning the 
                        distribution of royalty payments under section 
                        1006(c).''; and</DELETED>
                        <DELETED>    (ii) by striking ``Librarian of 
                        Congress'' each place it appears and inserting 
                        ``Board''; and</DELETED>
                <DELETED>    (C) in subsection (c)--</DELETED>
                        <DELETED>    (i) by amending the first sentence 
                        to read as follows: ``If the Copyright Royalty 
                        Adjudication Board finds the existence of a 
                        controversy, the Board shall, pursuant to 
                        chapter 8 of this title, conduct a proceeding 
                        to determine the distribution of royalty 
                        payments.'';</DELETED>
                        <DELETED>    (ii) by striking ``Librarian of 
                        Congress'' each place it appears and inserting 
                        ``Board''; and</DELETED>
                        <DELETED>    (iii) by striking ``Librarian 
                        under this section'' and inserting ``Board 
                        under this section. The action of the Board to 
                        distribute royalty fees may precede the 
                        declaration of a controversy if all parties to 
                        the proceeding file a petition with the Board 
                        requesting such distribution, except that such 
                        amount may not exceed 50 percent of the amounts 
                        on hand at the time of the 
                        request.''.</DELETED>
                <DELETED>    (4) Adjudication of certain disputes.--
                Section 1010 of title 17, United States Code, is 
                amended--</DELETED>
                        <DELETED>    (A) by amending the section 
                        heading to read as follows:</DELETED>
<DELETED>``Sec. 1010. Adjudication of certain disputes'';</DELETED>
                        <DELETED>    (B) in subsection (a)--</DELETED>
                                <DELETED>    (i) in the subsection 
                                heading by striking ``Arbitration'' and 
                                inserting ``Adjudication''; 
                                and</DELETED>
                                <DELETED>    (ii) by striking 
                                ``mutually agree to binding arbitration 
                                for the purpose of determining'' and 
                                inserting ``petition the Copyright 
                                Royalty Adjudication Board to 
                                determine'';</DELETED>
                        <DELETED>    (C) by striking subsection (b) and 
                        redesignating subsections (c) and (d) as 
                        subsections (b) and (c), 
                        respectively;</DELETED>
                        <DELETED>    (D) in subsection (b), as so 
                        redesignated, by striking ``arbitration'' each 
                        place it appears and inserting 
                        ``adjudication'';</DELETED>
                        <DELETED>    (E) by amending subsection (c), as 
                        so redesignated, to read as follows:</DELETED>
<DELETED>    ``(c) Adjudication Proceeding.--The Copyright Royalty 
Adjudication Board shall conduct an adjudication proceeding with 
respect to the matter concerned, pursuant to chapter 8 of this title. 
The parties to the proceeding shall bear the entire costs thereof in 
such manner and proportion as the Board shall direct.''; and</DELETED>
                        <DELETED>    (F) by striking subsections (e), 
                        (f), and (g).</DELETED>

<DELETED>SEC. 10. TECHNICAL AMENDMENTS.</DELETED>

<DELETED>    (a) Clerical Amendment to Chapter 10 of Title 17, United 
States Code.--The item relating to section 1010 in the table of 
contents for chapter 10 of title 17, United States Code, is amended to 
read as follows:</DELETED>

<DELETED>``1010. Adjudication of certain disputes.''.
<DELETED>    (b) Clerical Amendment to Chapter 9 of Title 17, United 
States Code.--The item relating to section 903 in the table of contents 
for chapter 9 of title 17, United States Code, is amended to read as 
follows:</DELETED>

<DELETED>``903. Ownership, transfer, licensing, and recordation.''.
<DELETED>    (c) Clerical Amendment to Table of Chapters.--The item 
relating to chapter 6 in the table of chapters for title 17, United 
States Code, is amended to read as follows:</DELETED>

<DELETED>``6. Manufacturing Requirements and Importation....     601''.

<DELETED>SEC. 11. RETRANSMISSION CONSENT.</DELETED>

<DELETED>    Section 325(b) of the Communications Act of 1934 (47 
U.S.C. 325(b)) is amended--</DELETED>
        <DELETED>    (1) by striking paragraphs (1) and (2) and 
        inserting the following:</DELETED>
<DELETED>    ``(b)(1) No cable system or other multichannel video 
programming distributor shall retransmit the signal of a broadcasting 
station, or any part thereof, except--</DELETED>
        <DELETED>    ``(A) with the express authority of the 
        station;</DELETED>
        <DELETED>    ``(B) pursuant to section 614, in the case of a 
        station electing, in accordance with this subsection, to assert 
        the right to carriage under such section; or</DELETED>
        <DELETED>    ``(C) pursuant to section 337, in the case of a 
        station electing, in accordance with this subsection, to assert 
        the right to carriage under such section.</DELETED>
<DELETED>    ``(2) The provisions of this subsection shall not apply 
to--</DELETED>
        <DELETED>    ``(A) retransmission of the signal of a 
        noncommercial broadcasting station;</DELETED>
        <DELETED>    ``(B) retransmission of the signal of a 
        superstation by a satellite carrier to subscribers for private 
        home viewing if the originating station was a superstation on 
        January 1, 1998;</DELETED>
        <DELETED>    ``(C) retransmission of the signal of a 
        broadcasting station that is owned or operated by, or 
        affiliated with, a broadcasting network directly to a home 
        satellite antenna, if the household receiving the signal is 
        located in an area in which such station may not assert its 
        rights not to have its signal duplicated under the Commission's 
        network nonduplication regulations; or</DELETED>
        <DELETED>    ``(D) retransmission by a cable operator or other 
        multichannel video programming distributor of the signal of a 
        superstation if such signal was obtained from a satellite 
        carrier and the originating station was a superstation on 
        January 1, 1998.'';</DELETED>
        <DELETED>    (2) by adding at the end of paragraph (3) the 
        following new subparagraph:</DELETED>
<DELETED>    ``(C) Within 45 days after the effective date of the 
Copyright Compulsory License Improvement Act, the Commission shall 
commence a rulemaking proceeding to revise the regulations governing 
the exercise by television broadcast stations of the right to grant 
retransmission consent under this subsection, and such other 
regulations as are necessary to administer the limitation contained in 
paragraph (2). Such regulations shall establish election time periods 
that correspond with those regulations adopted under subparagraph (B). 
The rulemaking shall be completed within 180 days after the effective 
date of the Copyright Compulsory License Improvement Act.''; 
and</DELETED>
        <DELETED>    (3) by adding at the end the following new 
        paragraph:</DELETED>
<DELETED>    ``(7) For purposes of this subsection:</DELETED>
        <DELETED>    ``(A) The term `superstation' means a television 
        broadcast station, other than a network station, licensed by 
        the Commission that is secondarily transmitted by a satellite 
        carrier.</DELETED>
        <DELETED>    ``(B) The term `satellite carrier' has the meaning 
        given that term in section 119(d) of title 17, United States 
        Code.''.</DELETED>

<DELETED>SEC. 12. MUST-CARRY FOR SATELLITE CARRIERS RETRANSMITTING 
              TELEVISION BROADCAST SIGNALS.</DELETED>

<DELETED>    Title III of the Communications Act of 1934 is amended by 
inserting after section 336 the following new section:</DELETED>

<DELETED>``SEC. 337. CARRIAGE OF LOCAL TELEVISION SIGNALS BY SATELLITE 
              CARRIERS.</DELETED>

<DELETED>    ``(a) Carriage Obligations.--Each satellite carrier 
providing direct to home service of a network station to subscribers 
located within the local market of such station shall offer to carry 
all television broadcast stations located within that local market, 
subject to section 325(b). Carriage of additional television broadcast 
stations within the local market shall be at the discretion of the 
satellite carrier, subject to section 325(b).</DELETED>
<DELETED>    ``(b) Duplication Not Required.--Notwithstanding 
subsection (a), a satellite carrier shall not be required to offer to 
carry the signal of any local television broadcast station that 
substantially duplicates the signal of another local television 
broadcast station which is secondarily transmitted by the satellite 
carrier, or to offer to carry the signals of more that one local 
television broadcast station affiliated with a particular broadcast 
network (as the term is defined by regulation).</DELETED>
<DELETED>    ``(c) Channel Positioning.--Each signal carried in 
fulfillment of the carriage obligations of a satellite carrier under 
this section shall be carried on the satellite carrier channel number 
on which the local television broadcast station is broadcast over the 
air, or on the channel on which it was broadcast on January 1, 1985, or 
on the channel it was broadcast on January 1, 1998, at the election of 
the station, or on such other channel number as is mutually agreed upon 
by the station and the satellite carrier. Any dispute regarding the 
positioning of local television broadcast stations shall be resolved by 
the Commission.</DELETED>
<DELETED>    ``(d) Compensation for Carriage.--A satellite carrier 
shall not accept or request monetary payment or other valuable 
consideration in exchange either for carriage of local television 
broadcast stations in fulfillment of the requirements of this section 
or for channel positioning rights provided to such stations under this 
section, except that any such station may be required to bear the costs 
associated with delivering a good quality signal to the principal 
headend of the satellite carrier.</DELETED>
<DELETED>    ``(e) Remedies.--</DELETED>
        <DELETED>    ``(1) Complaints by broadcast stations.--Whenever 
        a local television broadcast station believes that a satellite 
        carrier has failed to meet its obligations under this section, 
        such station shall notify the carrier, in writing, of the 
        alleged failure and identify its reasons for believing that the 
        satellite carrier is obligated to offer to carry the signal of 
        such station or has otherwise failed to comply with the channel 
        positioning or repositioning or other requirements of this 
        section. The satellite carrier shall, within 30 days of such 
        written notification, respond in writing to such notification 
        and either commence to carry the signal of such station in 
        accordance with the terms requested or state its reasons for 
        believing that it is not obligated to carry such signal or is 
        in compliance with the channel positioning and repositioning or 
        other requirements of this section. A local television 
        broadcast station that is denied carriage or channel 
        positioning or repositioning in accordance with this section by 
        a satellite carrier may obtain review of such denial by filing 
        a complaint with the Commission. Such complaint shall allege 
        the manner in which such satellite carrier has failed to meet 
        its obligations and the basis for such allegations.</DELETED>
        <DELETED>    ``(2) Opportunity to respond.--The Commission 
        shall afford such satellite carrier and opportunity to present 
        data and arguments to establish that there has been no failure 
        to meet its obligations under this section.</DELETED>
        <DELETED>    ``(3) Remedial actions; dismissal.--Within 120 
        days after the date a complaint is filed, the Commission shall 
        determine whether the satellite carrier has met its obligations 
        under this section. If the Commission determines that the 
        satellite carrier has failed to meet such obligations, the 
        Commission shall order the satellite carrier to reposition the 
        complaining station or, in the case of an obligation to carry a 
        station, to commence carriage of the station and to continue 
        such carriage for at least 12 months. If the Commission 
        determines that the satellite carrier has fully met the 
        requirements of this section, it shall dismiss the 
        complaint.</DELETED>
<DELETED>    ``(f) Regulations by Commission.--Within 180 days after 
the effective date of this section, the Commission shall, following a 
rulemaking proceeding, issue regulations implementing the requirements 
imposed by this section.</DELETED>
<DELETED>    ``(g) Definitions.--As used in this section:</DELETED>
        <DELETED>    ``(1) Television broadcast station.--The term 
        `television broadcast station' means a full-power television 
        broadcast station, and does not include a low-power or 
        translator television broadcast station.</DELETED>
        <DELETED>    ``(2) Local market.--The term `local market' means 
        the designated market area in which a station is located and--
        </DELETED>
                <DELETED>    ``(A) for a commercial television 
                broadcast station located in any of the 150 largest 
                designated market areas, all commercial television 
                broadcast stations licensed to a community within the 
                same designated market area are within the same local 
                market;</DELETED>
                <DELETED>    ``(B) for a commercial television 
                broadcast station that is located in a designated 
                market area that is not one of the 150 largest, the 
                local market includes, in addition to all commercial 
                television broadcast stations licensed to a community 
                within the same designated market area, any station 
                that is significantly viewed, as such term is defined 
                in section 76.54 of the Commission's regulations (47 
                C.F.R. 76.54); and</DELETED>
                <DELETED>    ``(C) for a noncommercial educational 
                television broadcast station, the local market includes 
                any station that is licensed to a community within the 
                same designated market area as the noncommercial 
                educational television broadcast station.</DELETED>
        <DELETED>    ``(3) Designated market area.--The term 
        `designated market area' means a designated market area, as 
        determined by the Nielsen Media Research and published in the 
        DMA Market and Demographic Report.''.</DELETED>

<DELETED>SEC. 13. NETWORK NONDUPLICATION; SYNDICATED EXCLUSIVITY AND 
              SPORTS BLACKOUT.</DELETED>

<DELETED>    (a) Regulations.--</DELETED>
        <DELETED>    (1) In general.--Within 45 days after the 
        effective date of this Act, the Federal Communications 
        Commission shall commence a rulemaking to establish regulations 
        that apply network nonduplication protection, syndicated 
        exclusivity protection, and sports blackout protection to the 
        retransmission of broadcast signals by satellite carriers to 
        subscribers for private home viewing. To the extent possible, 
        such regulations shall, subject to paragraph (2), include the 
        same level of protection accorded retransmissions of television 
        broadcast signals by cable systems for network nonduplication 
        (47 C.F.R. 76.92), syndicated exclusivity (47 C.F.R. 151), and 
        sports blackout (47 C.F.R. 76.67).</DELETED>
        <DELETED>    (2) Network nonduplication.--The network 
        nonduplication regulations required under paragraph (1) shall 
        allow a television broadcast station in any local market to 
        assert nonduplication rights--</DELETED>
                <DELETED>    (A) against a satellite carrier throughout 
                such local market if that satellite carrier retransmits 
                to subscribers for private home viewing in such local 
                market the signal of another television broadcast 
                station located within such local market; or</DELETED>
                <DELETED>    (B) against all satellite carriers within 
                the zone in which the television broadcast station may 
                be received over-the-air, using conventional consumer 
                television receiving equipment, as determined under 
                regulations prescribed by the Federal Communications 
                Commission, but such zone shall not extend beyond such 
                local market of such station.</DELETED>
        <DELETED>    (3) Local market defined.--The term ``local 
        market'' has the meaning provided in section 337(g) of the 
        Communications Act of 1934, as added by section 12 of this 
        Act.</DELETED>
<DELETED>    (b) Deferred Applicability of Amendments to Section 119 of 
Title 17, United States Code.--Notwithstanding the amendments to 
section 119 of title 17, United States Code, made by this Act, until 
the regulations regarding network nonduplication protection are 
established under subsection (a), the statutory license under 
subsection (a) of such section 119 for secondary transmissions of 
primary transmissions of programming contained in a primary 
transmission made by a network station (as defined in section 119(d) of 
title 17, United States Code, as in effect on the day before the 
effective date of this Act) shall be limited to secondary transmissions 
to persons who reside in unserved households (as defined in section 
119(d) of title 17, United States Code, as in effect on the day before 
the effective date of this Act).</DELETED>

<DELETED>SEC. 14. EFFECTIVE DATE.</DELETED>

<DELETED>    This Act and the amendments made by this Act shall take 
effect on January 1, 1999.</DELETED>

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Copyright Compulsory License 
Improvement Act''.

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

    (a) In General.--Chapter 1 of title 17, United States Code, is 
amended by adding after section 121 the following new section:
``Sec. 122. Limitations on exclusive rights; secondary transmissions by 
              satellite carriers within local markets
    ``(a) Secondary Transmissions of Television Broadcast Stations by 
Satellite Carriers.--A secondary transmission of a primary transmission 
of a television broadcast station into the station's local market shall 
be subject to statutory licensing under this section if--
            ``(1) the secondary transmission is made by a satellite 
        carrier to the public;
            ``(2) the secondary transmission is permissible under the 
        rules, regulations, or authorizations of the Federal 
        Communications Commission; and
            ``(3) the satellite carrier makes a direct or indirect 
        charge for the secondary transmission to--
                    ``(A) each subscriber receiving the secondary 
                transmission; or
                    ``(B) a distributor that has contracted with the 
                satellite carrier for direct or indirect delivery of 
                the secondary transmission to the public.
    ``(b) Reporting Requirements.--
            ``(1) Initial lists.--A satellite carrier that makes 
        secondary transmissions of a primary transmission made by a 
        network station under subsection (a) shall, within 90 days 
        after commencing such secondary transmissions, submit to that 
        station a list identifying (by name and street address, 
        including county and zip code) all subscribers to which the 
        satellite carrier currently makes secondary transmissions of 
        that primary transmission.
            ``(2) Subsequent lists.--After the list is submitted under 
        paragraph (1), the satellite carrier shall, on the 15th of each 
        month, submit to the station a list identifying (by name and 
        street address, including county and zip code) any subscribers 
        who have been added or dropped as subscribers since the last 
        submission under this subsection.
            ``(3) Use of subscriber information.--Subscriber 
        information submitted by a satellite carrier under this 
        subsection may be used only for the purposes of monitoring 
        compliance by the satellite carrier with this section.
            ``(4) Requirements of stations.--The submission 
        requirements of this subsection shall apply to a satellite 
        carrier only if the station to whom the submissions are to be 
        made places on file with the Register of Copyrights a document 
        identifying the name and address of the person to whom such 
        submissions are to be made. The Register shall maintain for 
        public inspection a file of all such documents.
    ``(c) No Royalty Fee Required.--A satellite carrier whose secondary 
transmissions are subject to statutory licensing under subsection (a) 
shall have no royalty obligation for such secondary transmissions.
    ``(d) Noncompliance With Reporting Requirements.--Notwithstanding 
subsection (a), the willful or repeated secondary transmission to the 
public by a satellite carrier of a television broadcast station and 
embodying a performance or display of a work is actionable as an act of 
infringement under section 501, and is fully subject to the remedies 
provided under sections 502 through 506 and 509, if the satellite 
carrier has not complied with the reporting requirements of subsection 
(b).
    ``(e) Willful Alterations.--Notwithstanding subsection (a), the 
secondary transmission to the public by a satellite carrier into the 
local market of a television broadcast station of a primary 
transmission made by that television broadcast station and embodying a 
performance or display of a work is actionable as an act of 
infringement under section 501, and is fully subject to the remedies 
provided by sections 502 through 506 and sections 509 and 510, if the 
content of the particular program in which the performance or display 
is embodied, or any commercial advertising or station announcement 
transmitted by the primary transmitter during, or immediately before or 
after, the transmission of such program, is in any way willfully 
altered by the satellite carrier through changes, deletions, or 
additions, or is combined with programming from any other broadcast 
signal.
    ``(f) Violation of Territorial Restrictions on Statutory License 
for Television Broadcast Stations.--
            ``(1) Individual violations.--The willful or repeated 
        secondary transmission to the public by a satellite carrier of 
        a primary transmission made by a television broadcast station 
        and embodying a performance or display of a work to a 
        subscriber who does not reside in that station's local market, 
        and is not subject to statutory licensing under section 119, is 
        actionable as an act of infringement under section 501 and is 
        fully subject to the remedies provided by sections 502 through 
        506 and 509, except that--
                    ``(A) no damages shall be awarded for such act of 
                infringement if the satellite carrier took corrective 
                action by promptly withdrawing service from the 
                ineligible subscriber; and
                    ``(B) any statutory damages shall not exceed $5 for 
                such subscriber for each month during which the 
                violation occurred.
            ``(2) Pattern of violations.--If a satellite carrier 
        engages in a willful or repeated pattern or practice of 
        secondarily transmitting to the public a primary transmission 
        made by a television broadcast station and embodying a 
        performance or display of a work to subscribers who do not 
        reside in that station's local market, and are not subject to 
        statutory licensing under section 119, then in addition to the 
        remedies under paragraph (1)--
                    ``(A) if the pattern or practice has been carried 
                out on a substantially nationwide basis, the court 
                shall order a permanent injunction barring the 
                secondary transmission by the satellite carrier of the 
                primary transmissions of that television broadcast 
                station (and if such television broadcast station is a 
                network station, all other television broadcast 
                stations affiliated with such network), and the court 
                may order statutory damages not exceeding $250,000 for 
                each 6-month period during which the pattern or 
                practice was carried out; and
                    ``(B) if the pattern or practice has been carried 
                out on a local or regional basis with respect to more 
                than one television broadcast station (and if such 
                television broadcast station is a network station, all 
                other television broadcast stations affiliated with 
                such network), the court shall order a permanent 
                injunction barring the secondary transmission in that 
                locality or region by the satellite carrier of the 
                primary transmissions of any television broadcast 
                station, and the court may order statutory damages not 
                exceeding $250,000 for each 6-month period during which 
                the pattern or practice was carried out.
    ``(g) Burden of Proof.--In any action brought under subsection (d), 
(e), or (f), the satellite carrier shall have the burden of proving 
that its secondary transmission of a primary transmission by a 
television broadcast station is made only to subscribers located within 
that station's local market.
    ``(h) Geographic Limitations on Secondary Transmissions.--The 
statutory license created by this section shall apply to secondary 
transmissions to locations in the United States, and any commonwealth, 
territory, or possession of the United States.
    ``(i) Exclusivity With Respect to Secondary Transmissions of 
Broadcast Stations by Satellite to Members of the Public.--No provision 
of section 111 or any other law (other than this section and section 
119) shall be construed to contain any authorization, exemption, or 
license through which secondary transmissions by satellite carriers of 
programming contained in a primary transmission made by a television 
broadcast station may be made without obtaining the consent of the 
copyright owner.
    ``(j) Definitions.--In this section--
            ``(1) The term `distributor' means an entity which 
        contracts to distribute secondary transmissions from a 
        satellite carrier and, either as a single channel or in a 
        package with other programming, provides the secondary 
        transmission either directly to individual subscribers or 
        indirectly through other program distribution entities.
            ``(2) The term `local market' for a television broadcast 
        station has the meaning given that term in section 337(h)(2) of 
the Communications Act of 1934.
            ``(3) The terms `network station', `satellite carrier' and 
        `secondary transmission' have the meaning given such terms 
        under section 119(d).''.
            ``(4) The term `subscriber' means an entity that receives a 
        secondary transmission service by means of a secondary 
        transmission from a satellite and pays a fee for the service, 
        directly or indirectly, to the satellite carrier or to a 
        distributor.
            ``(5) The term `television broadcast station' means an 
        over-the-air, commercial or noncommercial television broadcast 
        station licensed by the Federal Communications Commission under 
        subpart E of part 73 of title 47, Code of Federal 
        Regulations.''.
    (b) Technical and Conforming Amendments.--The table of sections for 
chapter 1 of title 17, United States Code, is amended by adding after 
the item relating to section 121 the following:

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

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

    Section 4(a) of the Satellite Home Viewer Act of 1994 (17 U.S.C. 
119 note; Public Law 103-369; 108 Stat. 3481) is amended by striking 
``December 31, 1999'' and inserting ``December 31, 2003''.

SEC. 4. TRANSITION.

    Section 119(a)(5) of title 17, United States Code, is amended by 
adding at the end the following:
                    ``(E) Transition.--Notwithstanding subparagraphs 
                (A) and (B), a satellite carrier shall not be required 
                to terminate service of a network station to a 
                subscriber until February 28, 1999.''.

SEC. 5. COMPUTATION OF ROYALTY FEES FOR SATELLITE CARRIERS.

    Section 119(c) of title 17, United States Code, is amended by 
adding at the end the following new paragraph:
            ``(4) Reduction.--
                    ``(A) Superstation.--The rate of the royalty fee 
                payable in each case under subsection (b)(1)(B)(i) as 
                adjusted by a royalty fee established under paragraph 
                (2) or (3) of this subsection shall be reduced by 30 
                percent.
                    ``(B) Network.--The rate of the royalty fee payable 
                under subsection (b)(1)(B)(ii) as adjusted by a royalty 
                fee established under paragraph (2) or (3) of this 
                subsection shall be reduced by 45 percent.
            ``(5) Public broadcasting service as agent.--For purposes 
        of section 802, with respect to royalty fees paid by satellite 
        carriers for retransmitting the Public Broadcasting Service 
        satellite feed, the Public Broadcasting Service shall be the 
        agent for all public television copyright claimants and all 
        Public Broadcasting Service member stations.''.

SEC. 6. DEFINITIONS.

    Section 119(d) of title 17, United States Code, is amended--
            (1) by striking paragraph (10) and inserting the following:
            ``(10) Unserved household.--The term `unserved household', 
        with respect to a particular television network, means a 
        household that cannot receive, through the use of a 
        conventional outdoor rooftop receiving antenna, an over-the-air 
        signal of grade B intensity (as defined by the Federal 
        Communications Commission) of a primary network station 
        affiliated with that network.''; and
            (2) by adding at the end the following:
            ``(12) Local network station.--The term `local network 
        station' means a network station that is secondarily 
        transmitted to subscribers who reside within the local market 
        in which the network station is located.''.

SEC. 7. PUBLIC BROADCASTING SERVICE SATELLITE FEED.

    (a) Secondary Transmissions.--Section 119(a)(1) of title 17, United 
States Code, is amended--
            (1) by striking the paragraph heading and inserting ``(1) 
        Superstations and pbs satellite feed.--'';
            (2) by inserting ``or by the Public Broadcasting Service 
        satellite feed'' after ``superstation''; and
            (3) by adding at the end the following: ``In the case of 
        the Public Broadcasting Service satellite feed, subsequent to 
        January 1, 2001, or the date on which local retransmissions of 
        broadcast signals are offered to the public, whichever is 
        earlier, the statutory license created by this section shall be 
        conditioned on the Public Broadcasting Service certifying to 
        the Copyright Office on an annual basis that its membership 
        supports the secondary transmission of the Public Broadcasting 
        Service satellite feed, and providing notice to the satellite 
        carrier of such certification.''.
    (b) Definition.--Section 119(d) of title 17, United States Code, is 
amended by adding at the end the following:
            ``(12) Public broadcasting service satellite feed.--The 
        term `Public Broadcasting Service satellite feed' means the 
        national satellite feed distributed by the Public Broadcasting 
        Service consisting of educational and informational programming 
        intended for private home viewing, to which the Public 
        Broadcasting Service holds national terrestrial broadcast 
        rights.''.

SEC. 8. APPLICATION OF FEDERAL COMMUNICATIONS COMMISSION REGULATIONS.

    Section 119(a) of title 17, United States Code, is amended--
            (1) in paragraph (1), by inserting ``is permissible under 
        the rules, regulations, and authorizations of the Federal 
        Communications Commission,'' after ``satellite carrier to the 
        public for private home viewing,''; and
            (2) in paragraph (2), by inserting ``is permissible under 
        the rules, regulations, and authorizations of the Federal 
        Communications Commission,'' after ``satellite carrier to the 
        public for private home viewing,''.

SEC. 9. EFFECTIVE DATE.

    This Act and the amendments made by this Act shall take effect on 
January 1, 1999, except section 4 shall take effect on the date of 
enactment of this Act.
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