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

105th CONGRESS
  2d Session
                                S. 1720

To amend title 17, United States Code, to reform the copyright law with 
  respect to satellite retransmissions of broadcast signals, and for 
                            other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             March 5, 1998

   Mr. Hatch (for himself, Mr. Leahy, and Mr. Kohl), introduced the 
 following bill; which was read twice and referred to the Committee on 
                             the Judiciary

_______________________________________________________________________

                                 A BILL

 
To amend title 17, United States Code, to reform the copyright law with 
  respect to satellite retransmissions of broadcast signals, and for 
                            other purposes.

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

SECTION 1. SHORT TITLE.

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

SEC. 2. SECONDARY TRANSMISSIONS BY SATELLITE CARRIERS.

    Section 119 of title 17, United States Code, is amended--
            (1) by amending the section heading to read as follows:
``Sec. 119. Limitations on exclusive rights: Secondary transmissions by 
              satellite carriers'';
        and
            (2) by striking subsection (a) and inserting the following:
    ``(a) Secondary Transmissions by Satellite Carriers for Private 
Home Viewing.--
            ``(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--
                    ``(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
                    ``(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.
            ``(2) Submission of subscriber lists to television 
        broadcast stations.--
                    ``(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--
                            ``(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
                            ``(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.
                    ``(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--
                            ``(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
                            ``(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
                    ``(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.
                    ``(ii) Each list of television broadcast stations 
                under this paragraph shall include the station's call 
                letters and community of license.
                    ``(iii) Subscriber information submitted under this 
                paragraph may be used only for purposes of monitoring 
                compliance by the satellite carrier with this section.
            ``(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).
            ``(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.
            ``(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.
            ``(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.''.

SEC. 3. STATUTORY LICENSE FOR SATELLITE CARRIERS.

    Section 119 of title 17, United States Code, is amended by striking 
subsection (b) and inserting the following:
    ``(b) Statutory License for Secondary Transmissions for Private 
Home Viewing.--
            ``(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--
                    ``(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
                    ``(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.
            ``(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.
            ``(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).
            ``(4) Procedures for distribution.--The royalty fees 
        deposited under paragraph (2) shall be distributed in 
        accordance with the following procedures:
                    ``(A) Filing of claims for fees.--During the month 
                of July in each year, each person claiming to be 
                entitled to statutory license fees for secondary 
                transmissions for private home viewing shall file a 
                claim with the 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.
                    ``(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.
                    ``(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.''.

SEC. 4. DEFINITIONS.

    Section 119 of title 17, United States Code, is amended by striking 
subsection (d) and inserting the following:
    ``(d) Definitions.--As used in this section--
            ``(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.
            ``(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.
            ``(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.
            ``(4) Primary transmission.--The term `primary 
        transmission' has the meaning given that term in section 111(f) 
        of this title.
            ``(5) Private home viewing.--The term `private home 
        viewing' means the viewing, for private use in a household by 
        means of satellite reception equipment which is operated by an 
        individual in that household and which serves only such 
        household, of a secondary transmission delivered by a satellite 
        carrier of a primary transmission of a television station 
        licensed by the Federal Communications Commission or of the 
        Public Broadcasting Service satellite feed.
            ``(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.
            ``(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.
            ``(8) Secondary transmission.--The term `secondary 
        transmission' means the further transmitting of a primary 
        transmission simultaneously with the primary transmission.
            ``(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.
            ``(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.''.

SEC. 5. EXCLUSIVITY OF SECTION 119 OF TITLE 17, UNITED STATES CODE.

    Section 119 of title 17, United States Code, is amended by adding 
at the end the following:
    ``(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.''.

SEC. 6. CONFORMING AMENDMENT.

    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:

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

SEC. 7. COPYRIGHT ROYALTY ADJUDICATION BOARD.

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

           ``CHAPTER 8--COPYRIGHT ROYALTY ADJUDICATION BOARD

``Sec.
``801. Copyright Royalty Adjudication Board: establishment.
``802. Membership and qualifications of the Board.
``803. Selection of administrative copyright judges.
``804. Independence of the Board.
``805. Removal and sanction of administrative copyright judges.
``806. Functions.
``807. Factors for determining royalty fees.
``808. Institution of proceedings.
``809. Conduct of proceedings.
``810. Judicial review.
``811. Administrative matters.
``812. Rule of construction.
``Sec. 801. Copyright Royalty Adjudication Board: establishment
    ``There is hereby established within the Copyright Office the 
Copyright Royalty Adjudication Board (hereinafter referred to in this 
chapter as the `Board').
``Sec. 802. Membership and qualifications of the Board
    ``(a) Membership.--
            ``(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.
            ``(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.
    ``(b) Qualifications.--
            ``(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.
            ``(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.
    ``(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.
    ``(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.
    ``(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.
``Sec. 803. Selection of administrative copyright judges
    ``(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.
    ``(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.
    ``(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.
``Sec. 804. Independence of the Board
    ``(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.
    ``(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.
    ``(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.
``Sec. 805. Removal and sanction of administrative copyright judges
    ``(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.
    ``(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.
``Sec. 806. Functions
    ``Subject to the provisions of this chapter, the functions of the 
Board shall be--
            ``(1) to make determinations concerning the adjustment of 
        reasonable copyright royalty rates for--
                    ``(A) secondary transmissions to the public by a 
                cable system of a primary transmission as provided in 
                section 111;
                    ``(B) the making and distributing of phonorecords 
                by means other than digital phonorecord delivery, as 
                provided in section 115;
                    ``(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
                    ``(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;
            ``(2) to make determinations as to reasonable rates and 
        terms of royalty payments for--
                    ``(A) the public performance of a sound recording 
                by means of a digital audio transmission as provided in 
                section 114;
                    ``(B) the making and distribution of phonorecords 
                by means of a digital phonorecord delivery as provided 
                in section 115;
                    ``(C) the public performance of nondramatic musical 
                works by means of coin-operated phonorecord players as 
                provided in section 116; and
                    ``(D) the use of nondramatic musical works and 
                pictorial, graphic, and sculptural works by public 
                broadcasting entities as provided in section 118;
            ``(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;
            ``(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;
            ``(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
            ``(6) to engage in such rulemaking as is expressly provided 
        in sections 111, 114, 115, 118, and 119.
``Sec. 807. Factors for determining royalty fees
    ``(a) For Cable Rates.--The rates applicable under section 111 
shall be calculated solely in accordance with the following provisions:
            ``(1) The rates established by section 111(d)(1)(B) may be 
        adjusted to reflect--
                    ``(A) national monetary inflation or deflation, or
                    ``(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--
                            ``(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
                            ``(ii) no increase in the royalty fee shall 
                        be permitted based on any reduction in the 
                        average number of distant signal equivalents 
                        per subscriber.
        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.
            ``(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--
                    ``(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
                    ``(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.
            ``(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.
            ``(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.
    ``(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:
            ``(1) To maximize the availability of creative works to the 
        public.
            ``(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.
            ``(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.
            ``(4) To minimize any disruptive impact on the structure of 
        the industries involved and on generally prevailing industry 
        practices.
    ``(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--
            ``(1) assure a fair return to copyright owners;
            ``(2) encourage the growth and development of public 
        broadcasting; and
            ``(3) encourage musical and artistic creation.
    ``(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--
            ``(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;
            ``(2) the economic impact of such fees on copyright owners 
        and satellite carriers; and
            ``(3) the impact on the continued availability of secondary 
        transmissions to the public.
``Sec. 808. Institution of proceedings
    ``(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.
    ``(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.
    ``(c) Schedule of Proceedings.--
            ``(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.
            ``(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.
            ``(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).
            ``(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.
            ``(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).
            ``(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.
            ``(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.
            ``(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.
``Sec. 809. Conduct of proceedings
    ``(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.
    ``(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--
            ``(1) public access to and inspection of the records of the 
        Board pursuant to section 706;
            ``(2) the right of the public to attend the proceedings of 
        the Board;
            ``(3) the procedures to apply when formal hearings are 
        conducted; and
            ``(4) the procedures to apply and the basis upon which 
        distribution or royalty controversies may be decided on the 
        basis of written pleadings.
    ``(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.
    ``(d) Majority Rule.--The Board shall act in all procedural and 
substantive matters on the basis of majority rule.
    ``(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.
    ``(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.
    ``(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.
    ``(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.
    ``(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.
``Sec. 810. Judicial review
    ``(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.
    ``(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.
``Sec. 811. Administrative matters
    ``(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.
    ``(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--
            ``(1) actions of the Board required to be published in the 
        Federal Register under this title;
            ``(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
            ``(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.
    ``(c) Collection and Use of Fees.--
            ``(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.
            ``(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.
    ``(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.
    ``(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.
    ``(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).
``Sec. 812. Rule of construction
    ``Nothing in this chapter shall be construed to affect the 
authority of the Register of Copyrights to establish regulations under 
sections 701 and 702.''.
    (b) Technical and Conforming Amendments.--
            (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:

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

SEC. 8. TRANSITION PROVISIONS.

    (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.
    (b) Proceedings in Progress.--
            (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.
            (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.
            (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.
    (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.
    (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.

SEC. 9. AMENDMENTS TO OTHER PROVISIONS OF TITLE 17, UNITED STATES CODE.

    (a) Secondary Transmissions by Cable Systems.--Section 111(d) of 
title 17, United States Code, is amended--
            (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
            (2) in paragraph (4)--
                    (A) in subparagraph (A)--
                            (i) by striking ``Librarian of Congress'' 
                        the first place it appears and inserting 
                        ``Copyright Royalty Adjudication Board''; and
                            (ii) by striking ``Librarian of Congress'' 
                        the second place it appears and inserting 
                        ``Board'';
                    (B) in subparagraph (B)--
                            (i) by striking ``Librarian of Congress 
                        shall, upon the recommendation of the Register 
                        of Copyrights'' and inserting ``Copyright 
                        Royalty Adjudication Board shall'';
                            (ii) by striking ``Librarian'' each 
                        subsequent place it appears and inserting 
                        ``Board''; and
                            (iii) in the last sentence by striking 
                        ``convene a copyright royalty arbitration 
                        panel'' and inserting ``conduct a proceeding''; 
                        and
                    (C) in subparagraph (C)--
                            (i) by striking ``Librarian of Congress'' 
                        and inserting ``Copyright Royalty Adjudication 
                        Board''; and
                            (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.''.
    (b) Scope of Exclusive Rights in Sound Recordings.--Section 114(f) 
of title 17, United States Code, is amended--
            (1) in paragraph (1)--
                    (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
                    (B) in the third sentence by striking ``Librarian 
                of Congress'' and inserting ``Copyright Royalty 
                Adjudication Board'';
            (2) by striking paragraphs (2), (3), and (4) and inserting 
        the following:
            ``(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.
            ``(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.
            ``(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--
                    ``(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
                    ``(B) during the first week of January 2005 and at 
                5-year intervals thereafter.''; and
            (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,''.
    (c) Compulsory License for Making and Distributing Phonorecords.--
Section 115(c)(3) of title 17, United States Code, is amended--
            (1) in subparagraph (C)--
                    (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.'';
                    (B) in the third sentence by striking ``Librarian 
                of Congress'' and inserting ``Copyright Royalty 
                Adjudication Board'';
            (2) by amending subparagraph (D) to read as follows:
            ``(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--
                    ``(i) digital phonorecord deliveries where the 
                reproduction or distribution of a phonorecord is 
                incidental to the transmission which constitute the 
                digital phonorecord delivery, and
                    ``(ii) digital phonorecord deliveries in general.
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.'';
            (3) in subparagraph (E)(i) in the first sentence by 
        striking ``Librarian of Congress'' and inserting ``Copyright 
        Royalty Adjudication Board''; and
            (4) in subparagraph (F) by striking ``Librarian of 
        Congress'' and inserting `` Copyright Royalty Adjudication 
        Board, upon the approval of the Register of Copyrights,''.
    (d) Negotiated Licenses for Public Performances by Means of Coin-
Operated Phonorecord Players.--Section 116 of title 17, United States 
Code, is amended--
            (1) by amending subsection (b)(2) to read as follows:
            ``(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
                    (2) in subsection (c)--
                            (A) in the subsection heading by striking 
                        ``Copyright Royalty Arbitration Panel'' and 
                        inserting ``Copyright Royalty Adjudication 
                        Board''; and
                    (B) by striking ``a copyright arbitration royalty 
                panel and inserting ``the Copyright Royalty 
                Adjudication Board''.
    (e) Use of Certain Works in Connection With Noncommercial 
Broadcasting.--Section 118 of title 17, United States Code, is 
amended--
            (1) in subsection (b)--
                    (A) by striking paragraph (1) and redesignating 
                paragraphs (2) and (3) as paragraphs (1) and (2), 
                respectively;
                    (B) in paragraph (1), as so redesignated, by 
                striking ``Librarian of Congress'' and inserting 
                ``Copyright Royalty Adjudication Board'';
                    (C) in paragraph (2), as so redesignated--
                            (i) by striking ``paragraph (2)'' each 
                        place it appears and inserting ``paragraph 
                        (1)'';
                            (ii) by striking ``Librarian of Congress'' 
                        the first place it appears and inserting 
                        ``Copyright Royalty Adjudication Board'';
                            (iii) by striking ``Librarian of Congress'' 
                        the second and third places it appears and 
                        inserting ``Board''; and
                            (iv) by striking ``Librarian of Congress'' 
                        the last place it appears and inserting 
                        ``Board, upon the approval of the Register of 
                        Copyrights,'';
            (2) in subsection (c)--
                    (A) by striking ``1997'' and inserting ``2002''; 
                and
                    (B) by striking ``Librarian of Congress'' and 
                inserting ``Copyright Royalty Adjudication Board, upon 
                the approval of the Register of Copyrights,'';
            (3) in subsection (d)--
                    (A) by striking ``(b)(2)'' and inserting 
                ``(b)(1)''; and
                    (B) by striking ``a copyright arbitration royalty 
                panel under subsection (b)(3)'' and inserting ``the 
                Copyright Royalty Adjudication Board under subsection 
                (b)(2)''; and
            (4) in subsection (e), by striking paragraphs (1) and (2).
    (f) Digital Audio Recording Devices and Media.--
            (1) Royalty payments.--Section 1004(a)(3) of title 17, 
        United States Code, is amended in the third sentence--
                    (A) by striking ``the 6th year after the effective 
                date of this chapter'' and inserting ``1998'';
                    (B) by striking ``Librarian of Congress'' the first 
                place it appears and inserting ``Copyright Royalty 
                Adjudication Board''; and
                    (C) by striking ``Librarian of Congress'' the 
                second place it appears and inserting ``Board''.
            (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''.
            (3) Procedures for distributing royalty payments.--Section 
        1007 of title 17, United States Code, is amended--
                    (A) in subsection (a)(1)--
                            (i) by striking ``after the calendar year 
                        in which this chapter takes effect'';
                            (ii) by striking ``Librarian of Congress'' 
                        the first place it appears and inserting 
                        ``Copyright Royalty Adjudication Board''; and
                            (iii) by striking ``Librarian of Congress'' 
                        the second place it appears and inserting 
                        ``Board'';
                    (B) in subsection (b)--
                            (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
                            (ii) by striking ``Librarian of Congress'' 
                        each place it appears and inserting ``Board''; 
                        and
                    (C) in subsection (c)--
                            (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.'';
                            (ii) by striking ``Librarian of Congress'' 
                        each place it appears and inserting ``Board''; 
                        and
                            (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.''.
                    (4) Adjudication of certain disputes.--Section 1010 
                of title 17, United States Code, is amended--
                            (A) by amending the section heading to read 
                        as follows:
``Sec. 1010. Adjudication of certain disputes'';
                            (B) in subsection (a)--
                                    (i) in the subsection heading by 
                                striking ``Arbitration'' and inserting 
                                ``Adjudication''; and
                                    (ii) by striking ``mutually agree 
                                to binding arbitration for the purpose 
                                of determining'' and inserting 
                                ``petition the Copyright Royalty 
                                Adjudication Board to determine'';
                            (C) by striking subsection (b) and 
                        redesignating subsections (c) and (d) as 
                        subsections (b) and (c), respectively;
                            (D) in subsection (b), as so redesignated, 
                        by striking ``arbitration'' each place it 
                        appears and inserting ``adjudication'';
                            (E) by amending subsection (c), as so 
                        redesignated, to read as follows:
    ``(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
                            (F) by striking subsections (e), (f), and 
                        (g).

SEC. 10. TECHNICAL AMENDMENTS.

    (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:

``1010. Adjudication of certain disputes.''.
    (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:

``903. Ownership, transfer, licensing, and recordation.''.
    (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:

``6. Manufacturing Requirements and Importation.............     601''.

SEC. 11. RETRANSMISSION CONSENT.

    Section 325(b) of the Communications Act of 1934 (47 U.S.C. 325(b)) 
is amended--
            (1) by striking paragraphs (1) and (2) and inserting the 
        following:
    ``(b)(1) No cable system or other multichannel video programming 
distributor shall retransmit the signal of a broadcasting station, or 
any part thereof, except--
            ``(A) with the express authority of the station;
            ``(B) pursuant to section 614, in the case of a station 
        electing, in accordance with this subsection, to assert the 
        right to carriage under such section; or
            ``(C) pursuant to section 337, in the case of a station 
        electing, in accordance with this subsection, to assert the 
        right to carriage under such section.
    ``(2) The provisions of this subsection shall not apply to--
            ``(A) retransmission of the signal of a noncommercial 
        broadcasting station;
            ``(B) retransmission of the signal of a superstation by a 
        satellite carrier to subscribers for private home viewing if 
        the originating station was a superstation on January 1, 1998;
            ``(C) retransmission of the signal of a broadcasting 
        station that is owned or operated by, or affiliated with, a 
        broadcasting network directly to a home satellite antenna, if 
        the household receiving the signal is located in an area in 
        which such station may not assert its rights not to have its 
        signal duplicated under the Commission's network nonduplication 
        regulations; or
            ``(D) retransmission by a cable operator or other 
        multichannel video 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.'';
            (2) by adding at the end of paragraph (3) the following new 
        subparagraph:
    ``(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
            (3) by adding at the end the following new paragraph:
    ``(7) For purposes of this subsection:
            ``(A) The term `superstation' means a television broadcast 
        station, other than a network station, licensed by the 
        Commission that is secondarily transmitted by a satellite 
        carrier.
            ``(B) The term `satellite carrier' has the meaning given 
        that term in section 119(d) of title 17, United States Code.''.

SEC. 12. MUST-CARRY FOR SATELLITE CARRIERS RETRANSMITTING TELEVISION 
              BROADCAST SIGNALS.

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

``SEC. 337. CARRIAGE OF LOCAL TELEVISION SIGNALS BY SATELLITE CARRIERS.

    ``(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).
    ``(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).
    ``(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.
    ``(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.
    ``(e) Remedies.--
            ``(1) Complaints by broadcast stations.--Whenever a local 
        television broadcast station believes that a satellite carrier 
        has failed to meet its obligations under this section, such 
        station shall notify the carrier, in writing, of the alleged 
        failure and identify its reasons for believing that the 
        satellite carrier is obligated to 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.
            ``(2) Opportunity to respond.--The Commission shall afford 
        such satellite carrier and opportunity to present data and 
        arguments to establish that there has been no failure to meet 
        its obligations under this section.
            ``(3) Remedial actions; dismissal.--Within 120 days after 
        the date a complaint is filed, the Commission shall determine 
        whether the satellite carrier has met its obligations under 
        this section. If the Commission determines that the satellite 
        carrier has failed to meet such obligations, the Commission 
        shall order the satellite carrier to reposition the complaining 
        station or, in the case of an obligation to carry a station, to 
        commence carriage of the station and to continue such carriage 
        for at least 12 months. If the Commission determines that the 
        satellite carrier has fully met the requirements of this 
        section, it shall dismiss the complaint.
    ``(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.
    ``(g) Definitions.--As used in this section:
            ``(1) Television broadcast station.--The term `television 
        broadcast station' means a full-power television broadcast 
        station, and does not include a low-power or translator 
        television broadcast station.
            ``(2) Local market.--The term `local market' means the 
        designated market area in which a station is located and--
                    ``(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;
                    ``(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
                    ``(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.
            ``(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.''.

SEC. 13. NETWORK NONDUPLICATION; SYNDICATED EXCLUSIVITY AND SPORTS 
              BLACKOUT.

    (a) Regulations.--
            (1) In general.--Within 45 days after the effective date of 
        this Act, the Federal Communications Commission shall commence 
        a rulemaking to establish regulations that apply network 
        nonduplication protection, syndicated exclusivity protection, 
        and sports blackout protection to the retransmission of 
        broadcast signals by satellite carriers to subscribers 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).
            (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--
                    (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
                    (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.
            (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.
    (b) Deferred Applicability of Amendments to Section 119 of Title 
17, United States Code.--Notwithstanding the amendments to section 119 
of title 17, United States Code, made by this Act, until the 
regulations regarding network nonduplication protection are established 
under subsection (a), the statutory license under subsection (a) of 
such section 119 for secondary transmissions of primary transmissions 
of programming contained in a primary transmission made by a network 
station (as defined in section 119(d) of title 17, United States Code, 
as in effect on the day before the effective date of this Act) shall be 
limited to secondary transmissions to persons who reside in unserved 
households (as defined in section 119(d) of title 17, United States 
Code, as in effect on the day before the effective date of this Act).

SEC. 14. EFFECTIVE DATE.

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