`[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1554 Placed on Calendar Senate (PCS)]





                                                        Calendar No. 93

106th CONGRESS

  1st Session

                               H. R. 1554

_______________________________________________________________________

                                 AN ACT

   To amend the provisions of title 17, United States Code, and the 
    Communications Act of 1934, relating to copyright licensing and 
              carriage of broadcast signals by satellite.

_______________________________________________________________________

                             April 28, 1999

            Received; read twice and placed on the calendar





                                                        Calendar No. 93
106th CONGRESS
  1st Session
                                H. R. 1554


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 28, 1999

            Received; read twice and placed on the calendar

_______________________________________________________________________

                                 AN ACT


 
   To amend the provisions of title 17, United States Code, and the 
    Communications Act of 1934, relating to copyright licensing and 
              carriage of broadcast signals by satellite.

    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 ``Satellite Copyright, Competition, 
and Consumer Protection Act of 1999''.

         TITLE I--SATELLITE COMPETITION AND CONSUMER PROTECTION

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Satellite Competition and Consumer 
Protection Act''.

SEC. 102. RETRANSMISSION CONSENT.

    Section 325(b) of the Communications Act of 1934 (47 U.S.C. 325(b)) 
is amended--
            (1) by amending paragraphs (1) and (2) to read as follows:
    ``(b)(1) No cable system or other multichannel video programming 
distributor shall retransmit the signal of a television broadcast 
station, or any part thereof, except--
            ``(A) with the express authority of the originating 
        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 338, 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--
            ``(A) to retransmission of the signal of a noncommercial 
        television broadcast station;
            ``(B) to retransmission of the signal of a television 
        broadcast station outside the station's local market by a 
        satellite carrier directly to its subscribers, if--
                    ``(i) such station was a superstation on May 1, 
                1991;
                    ``(ii) as of July 1, 1998, such station was 
                retransmitted by a satellite carrier under the 
                statutory license of section 119 of title 17, United 
                States Code; and
                    ``(iii) the satellite carrier complies with all 
                network nonduplication, syndicated exclusivity, and 
                sports blackout rules adopted by the Commission 
                pursuant to section 712 of this Act;
            ``(C) until 7 months after the date of enactment of the 
        Satellite Competition and Consumer Protection Act, to 
        retransmission of the signal of a television network station 
        directly to a satellite antenna, if the subscriber receiving 
        the signal is located in an area outside the local market of 
        such station; or
            ``(D) to retransmission by a cable operator or other 
        multichannel video provider, other than a satellite carrier, of 
        the signal of a television broadcast station outside the 
        station's local market if such signal was obtained from a 
        satellite carrier and--
                    ``(i) the originating station was a superstation on 
                May 1, 1991; and
                    ``(ii) as of July 1, 1998, such station was 
                retransmitted by a satellite carrier under the 
                statutory license of section 119 of title 17, United 
                States Code.'';
            (2) by adding at the end of paragraph (3) the following new 
        subparagraph:
    ``(C) Within 45 days after the date of enactment of the Satellite 
Competition and Consumer Protection 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 limitations contained in 
paragraph (2). The Commission shall complete all actions necessary to 
prescribe such regulations within one year after such date of 
enactment. Such regulations shall--
            ``(i) establish election time periods that correspond with 
        those regulations adopted under subparagraph (B) of this 
        paragraph; and
            ``(ii) until January 1, 2006, prohibit television broadcast 
        stations that provide retransmission consent from engaging in 
        discriminatory practices, understandings, arrangements, and 
        activities, including exclusive contracts for carriage, that 
        prevent a multichannel video programming distributor from 
        obtaining retransmission consent from such stations.'';
            (3) in paragraph (4), by adding at the end the following 
        new sentence: ``If an originating television station elects 
        under paragraph (3)(C) to exercise its right to grant 
        retransmission consent under this subsection with respect to a 
        satellite carrier, the provisions of section 338 shall not 
        apply to the carriage of the signal of such station by such 
        satellite carrier.'';
            (4) in paragraph (5), by striking ``614 or 615'' and 
        inserting ``338, 614, or 615''; and
            (5) by adding at the end the following new paragraph:
    ``(7) For purposes of this subsection, the term `television 
broadcast station' means an over-the-air commercial or noncommercial 
television broadcast station licensed by the Commission under subpart E 
of part 73 of title 47, Code of Federal Regulations, except that such 
term does not include a low-power or translator television station.''.

SEC. 103. MUST-CARRY FOR SATELLITE CARRIERS RETRANSMITTING TELEVISION 
              BROADCAST SIGNALS.

    Title III of the Communications Act of 1934 is amended by inserting 
after section 337 (47 U.S.C. 337) the following new section:

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

    ``(a) Carriage Obligations.--
            ``(1) In general.--Subject to the limitations of paragraph 
        (2), each satellite carrier providing secondary transmissions 
        to subscribers located within the local market of a television 
        broadcast station of a primary transmission made by that 
        station shall carry upon request all television broadcast 
        stations located within that local market, subject to section 
        325(b), by retransmitting the signal or signals of such 
        stations that are identified by Commission regulations for 
        purposes of this section.
            ``(2) Effective date.--No satellite carrier shall be 
        required to carry local television broadcast stations under 
        paragraph (1) until January 1, 2002.
    ``(b) Good Signal Required.--
            ``(1) Costs.--A television broadcast station asserting its 
        right to carriage under subsection (a) shall be required to 
        bear the costs associated with delivering a good quality signal 
        to the designated local receive facility of the satellite 
        carrier or to another facility that is acceptable to at least 
        one-half the stations asserting the right to carriage in the 
        local market.
            ``(2) Regulations.--The regulations issued under subsection 
        (g) shall set forth the obligations necessary to carry out this 
        subsection.
    ``(c) Duplication Not Required.--
            ``(1) Commercial stations.--Notwithstanding subsection (a), 
        a satellite carrier shall not be required to carry upon request 
        the signal of any local commercial television broadcast station 
        that substantially duplicates the signal of another local 
        commercial television broadcast station which is secondarily 
        transmitted by the satellite carrier within the same local 
        market, or to carry upon request the signals of more than 1 
        local commercial television broadcast station in a single local 
        market that is affiliated with a particular television network.
            ``(2) Noncommercial stations.--The Commission shall 
        prescribe regulations limiting the carriage requirements under 
        subsection (a) of satellite carriers with respect to the 
        carriage of multiple local noncommercial television broadcast 
        stations. To the extent possible, such regulations shall 
        provide the same degree of carriage by satellite carriers of 
        such multiple stations as is provided by cable systems under 
        section 615.
    ``(d) Channel Positioning.--No satellite carrier shall be required 
to provide the signal of a local television broadcast station to 
subscribers in that station's local market on any particular channel 
number or to provide the signals in any particular order, except that 
the satellite carrier shall retransmit the signal of the local 
television broadcast stations to subscribers in the stations' local 
market on contiguous channels and provide access to such station's 
signals at a nondiscriminatory price and in a nondiscriminatory manner 
on any navigational device, on-screen program guide, or menu.
    ``(e) Compensation for Carriage.--A satellite carrier shall not 
accept or request monetary payment or other valuable consideration in 
exchange either for carriage of local television broadcast stations in 
fulfillment of the requirements of this section or for channel 
positioning rights provided to such stations under this section, except 
that any such station may be required to bear the costs associated with 
delivering a good quality signal to the local receive facility of the 
satellite carrier.
    ``(f) Remedies.--
            ``(1) Complaints by broadcast stations.--Whenever a local 
        television broadcast station believes that a satellite carrier 
        has failed to meet its obligations under this section, such 
        station shall notify the carrier, in writing, of the alleged 
        failure and identify its reasons for believing that the 
        satellite carrier is obligated to carry upon request the signal 
        of such station or has otherwise failed to comply with other 
        requirements of this section. The satellite carrier shall, 
        within 30 days of such written notification, respond in writing 
        to such notification and either begin carrying 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 other requirements of this 
        section, as the case may be. A local television broadcast 
        station that is denied carriage in accordance with this section 
        by a satellite carrier or is otherwise harmed by a response by 
        a satellite carrier that it is in compliance with other 
        requirements of this section may obtain review of such denial 
        or response 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 
        the satellite carrier against which a complaint is filed under 
        paragraph (1) an 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 under paragraph (1), the 
        Commission shall determine whether the satellite carrier has 
        met its obligations under this chapter. If the Commission 
        determines that the satellite carrier has failed to meet such 
        obligations, the Commission shall order the satellite carrier, 
        in the case of an obligation to carry a station, to begin 
        carriage of the station and to continue such carriage for at 
        least 12 months, or, in the case of the failure to meet other 
        obligations under this section, shall take other appropriate 
        remedial action. If the Commission determines that the 
        satellite carrier has fully met the requirements of this 
        chapter, the Commission shall dismiss the complaint.
    ``(g) Regulations by Commission.--Within 180 days after the date of 
enactment of this section, the Commission shall, following a rulemaking 
proceeding, issue regulations implementing this section.
    ``(h) Definitions.--As used in this section:
            ``(1) Subscriber.--The term `subscriber' means a person 
        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.
            ``(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 or 
        indirectly through other program distribution entities.
            ``(3) Local receive facility.--The term `local receive 
        facility' means the reception point in each local market which 
        a satellite carrier designates for delivery of the signal of 
        the station for purposes of retransmission.
            ``(4) Television broadcast station.--The term `television 
        broadcast station' has the meaning given such term in section 
        325(b)(7).
            ``(5) Secondary transmission.--The term `secondary 
        transmission' has the meaning given such term in section 119(d) 
        of title 17, United States Code.''.

SEC. 104. NONDUPLICATION OF PROGRAMMING BROADCAST BY LOCAL STATIONS.

    Section 712 of the Communications Act of 1934 (47 U.S.C. 612) is 
amended to read as follows:

``SEC. 712. NONDUPLICATION OF PROGRAMMING BROADCAST BY LOCAL STATIONS.

    ``(a) Extension of Network Nonduplication, Syndicated Exclusivity, 
and Sports Blackout to Satellite Retransmission.--Within 45 days after 
the date of enactment of the Satellite Competition and Consumer 
Protection Act, the Commission shall commence a single rulemaking 
proceeding to establish regulations that apply network nonduplication 
protection, syndicated exclusivity protection, and sports blackout 
protection to the retransmission of broadcast signals by satellite 
carriers to subscribers. To the extent possible consistent with 
subsection (b), such regulations shall provide the same degree of 
protection against retransmission of broadcast signals as is provided 
by the network nonduplication (47 C.F.R. 76.92), syndicated exclusivity 
(47 C.F.R. 151), and sports blackout (47 C.F.R. 76.67) rules applicable 
to cable television systems. The Commission shall complete all actions 
necessary to prescribe regulations required by this section so that the 
regulations shall become effective within 1 year after such date of 
enactment.
    ``(b) Establishment of Network Nonduplication Boundaries.--
            ``(1) Establishment of signal standard for network 
        nonduplication required.--The Commission shall establish a 
        signal intensity standard for purposes of determining the 
        network nonduplication rights of local television broadcast 
        stations. Until revised pursuant to subsection (c), such 
        standard shall be the Grade B field strength standard 
        prescribed by the Commission in section 73.683 of the 
        Commission's regulations (47 C.F.R. 73.683). For purposes of 
        this section, the standard established under this paragraph is 
        referred to as the `Network Nonduplication Signal Standard'.
            ``(2) Establishment of improved predictive model 
        required.--Within 180 days after the date of enactment of the 
        Satellite Competition and Consumer Protection Act, the 
        Commission shall take all actions necessary, including any 
        reconsideration, to develop and prescribe by rule a point-to-
        point predictive model for reliably and presumptively 
        determining the ability of individual locations to receive 
        signals in accordance with the Network Nonduplication Signal 
        Standard. In prescribing such model, the Commission shall 
        ensure that such model takes into account terrain, building 
        structures, and other land cover variations. The Commission 
        shall establish procedures for the continued refinement in the 
        application of the model by the use of additional data as it 
        becomes available. For purposes of this section, such model is 
        referred to as the `Network Nonduplication Reception Model', 
        and the area encompassing locations that are predicted to have 
        the ability to receive such a signal of a particular broadcast 
        station is referred to as that station's `Reception Model 
        Area'.
            ``(3) Network nonduplication.--The network nonduplication 
        regulations required under subsection (a) shall allow a 
        television network station to assert nonduplication rights as 
        follows:
                    ``(A) If a satellite carrier is retransmitting that 
                station, or any other television broadcast stations 
                located in the same local market, to subscribers 
                located in that station's local market, the television 
                network station may assert nonduplication rights 
                against the satellite carrier throughout the area 
                within which that station may assert such rights under 
                the rules applicable to cable television systems (47 
                C.F.R. 76.92).
                    ``(B) If a satellite carrier is not retransmitting 
                any television broadcast stations located in the 
                television network station's local market to 
                subscribers located in such market, the television 
                network station may assert nonduplication rights 
                against the satellite carrier in the geographic area 
                that is within such station's Reception Model Area, but 
                such geographic area shall not extend beyond the local 
                market of such station.
            ``(4) Waivers.--A subscriber may request a waiver from 
        network nonduplication by submitting a request, through such 
        subscriber's satellite carrier, to the television network 
        station asserting nonduplication rights. The television network 
        station shall accept or reject a subscriber's request for a 
        waiver within 30 days after receipt of the request. The network 
        nonduplication protection described in paragraph (3)(B) shall 
        not apply to a subscriber if such station agrees to the waiver 
        request and files with the satellite carrier a written waiver 
        with respect to that subscriber allowing the subscriber to 
        receive satellite retransmission of another network station 
affiliated with that same network. The television network station and 
the satellite carrier shall maintain a file available to the public 
that contains such waiver requests and the acceptances and rejections 
thereof.
            ``(5) Objective verification.--
                    ``(A) In general.--If a subscriber's request for a 
                waiver under paragraph (4) is rejected and the 
                subscriber submits to the subscriber's satellite 
                carrier a request for a test verifying the subscriber's 
                inability to receive a signal that meets the Network 
                Nonduplication Signal Standard, the satellite carrier 
                and the television network station or stations 
                asserting nonduplication rights with respect to that 
                subscriber shall select a qualified and independent 
                person to conduct a test in accordance with the 
                provisions of section 73.686(d) of title 47, Code of 
                Federal Regulations, or any successor regulation. Such 
                test shall be conducted within 30 days after the date 
                the subscriber submits a request for the test. If the 
                written findings and conclusions of a test conducted in 
                accordance with the provisions of such section (or any 
                successor regulation) demonstrate that the subscriber 
                does not receive a signal that meets or exceeds the 
                Network Nonduplication Signal Standard, the network 
                nonduplication rights described in paragraph (3)(B) 
                shall not apply to that subscriber.
                    ``(B) Designation of testor and allocation of 
                costs.--If the satellite carrier and the television 
                network station or stations asserting nonduplication 
                rights are unable to agree on such a person to conduct 
                the test, the person shall be designated by an 
                independent and neutral entity designated by the 
                Commission by rule. Unless the satellite carrier and 
                the television network station or stations asserting 
                nonduplication rights otherwise agree, the costs of 
                conducting the test under this paragraph shall be borne 
                equally by the satellite carrier and the television 
                network station or stations asserting nonduplication 
                rights. A subscriber may not be required to bear any 
                portion of the cost of such test.
            ``(6) Recreational vehicle location.--In the case of a 
        subscriber to a satellite carrier who has installed satellite 
        reception equipment in a recreational vehicle, and who has 
        permitted any television network station seeking to assert 
        network nonduplication rights to verify the motor vehicle 
        registration, license, and proof of ownership of such vehicle, 
        the subscriber shall be considered to be outside the local 
        market and Reception Model Area of such station. For purposes 
        of this paragraph, the term `recreational vehicle' does not 
        include any residential manufactured home, as defined in 
        section 603(6) of the National Manufactured Housing 
        Construction and Safety Standards Act of 1974 (42 U.S.C. 
        5402(6)).
    ``(c) Review and Revision of Standards and Model.--
            ``(1) Ongoing inquiry required.--Not later than 2 years 
        after the date of enactment of the Satellite Competition and 
        Consumer Protection Act, the Commission shall conduct an 
        inquiry of the extent to which the Network Nonduplication 
        Signal Standard, the Network Nonduplication Reception Model, 
        and the Reception Model Areas of television stations are 
        adequate to reliably measure the ability of consumers to 
        receive an acceptable over-the-air television broadcast signal.
            ``(2) Data to be considered.--In conducting the inquiry 
        required by paragraph (1), the Commission shall consider--
                    ``(A) the number of subscribers requesting waivers 
                under subsection (b)(4), and the number of waivers that 
                are denied;
                    ``(B) the number of subscribers submitting 
                petitions under subsection (b)(5), and the number of 
                such petitions that are granted;
                    ``(C) the results of any consumer research study 
                that may be undertaken to carry out the purposes of 
                this section; and
                    ``(D) the extent to which consumers are not legally 
                entitled to install broadcast reception devices assumed 
                in the Commission's standard.
            ``(3) Report and action.--The Commission shall submit to 
        the Congress a report on the inquiry required by this 
        subsection not later than the end of the 2-year period 
        described in paragraph (1). The Commission shall complete any 
        actions necessary to revise the Network Nonduplication Signal 
        Standard, the Network Nonduplication Reception Model, and the 
        Reception Model Areas of television stations in accordance with 
        the findings of such inquiry not later than 6 months after the 
        end of such 2-year period.
            ``(4) Data submission.--The Commission shall prescribe by 
        rule the data required to be submitted by television broadcast 
        stations and by satellite carriers to the Commission or such 
        designated entity to carry out this subsection, and the format 
        for submission of such data.''.

SEC. 105. CONSENT OF MEMBERSHIP TO RETRANSMISSION OF PUBLIC 
              BROADCASTING SERVICE SATELLITE FEED.

    Section 396 of the Communications Act of 1934 (47 U.S.C. 396) is 
amended by adding at the end the following new subsection:
    ``(n) The Public Broadcasting Service shall certify to the Board on 
an annual basis that a majority of its membership supports or does not 
support the secondary transmission of the Public Broadcasting Service 
satellite feed, and provide notice to each satellite carrier carrying 
such feed of such certification.''.

SEC. 106. DEFINITIONS.

    Section 3 of the Communications Act of 1934 (47 U.S.C. 153) is 
amended--
            (1) by redesignating--
                    (A) paragraphs (49) through (52) as paragraphs (52) 
                through (55), respectively;
                    (B) paragraphs (39) through (48) as paragraphs (41) 
                through (50), respectively; and
                    (C) paragraphs (27) through (38) as paragraph (28) 
                through (39), respectively;
            (2) by inserting after paragraph (26) the following new 
        paragraph:
            ``(27) Local market.--
                    ``(A) In general.--The term `local market', in the 
                case of both commercial and noncommercial television 
                broadcast stations, means the designated market area in 
                which a station is located, and--
                            ``(i) in the case of a commercial 
                        television broadcast station, all commercial 
                        television broadcast stations licensed to a 
                        community within the same designated market 
                        area are within the same local market; and
                            ``(ii) in the case of a noncommercial 
                        educational television broadcast station, the 
                        market includes any station that is licensed to 
                        a community within the same designated market 
                        area as the noncommercial educational 
                        television broadcast station.
                    ``(B) County of license.--In addition to the area 
                described in subparagraph (A), a station's local market 
                includes the county in which the station's community of 
                license is located.
                    ``(C) Designated market area.--For purposes of 
                subparagraph (A), the term `designated market area' 
                means a designated market area, as determined by 
                Nielsen Media Research and published in the DMA Market 
                and Demographic Report.'';
            (3) by inserting after paragraph (39) (as redesignated by 
        paragraph (1) of this section) the following new paragraph:
            ``(40) Satellite carrier.--The term `satellite carrier' 
        means an entity that uses the facilities of a satellite or 
        satellite service licensed by the Commission, and operates in 
        the Fixed-Satellite Service under part 25 of title 47 of the 
        Code of Federal Regulations or the Direct Broadcast Satellite 
        Service under part 100 of title 47 of the Code of Federal 
        Regulations, 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 this 
        Act.''; and
            (3) by inserting after paragraph (50) (as redesignated by 
        paragraph (1) of this section) the following new paragraph:
            ``(51) Television network; television network station.--
                    ``(A) Television network.--The term `television 
                network' means a television network in the United 
                States which offers an interconnected program service 
                on a regular basis for 15 or more hours per week to at 
                least 25 affiliated broadcast stations in 10 or more 
                States.
                    ``(B) Television network station.--The term 
                `television network station' means a television 
                broadcast station that is owned or operated by, or 
                affiliated with, a television network.''.

SEC. 107. COMPLETION OF BIENNIAL REGULATORY REVIEW.

    Within 180 days after the date of enactment of this Act, the 
Commission shall complete the biennial review required by section 
202(h) of the Telecommunications Act of 1996.

SEC. 108. RESULT OF LOSS OF NETWORK SERVICE.

    Until the Federal Communications Commission issues regulations 
under section 712(b)(2) of the Communications Act of 1934, if a 
subscriber's network service is terminated as a result of the 
provisions of section 119 of title 17, United States Code, the 
satellite carrier shall, upon the request of the subscriber, provide to 
the subscriber free of charge an over-the-air television broadcast 
receiving antenna that will provide the subscriber with an over-the-air 
signal of Grade B intensity for those network stations that were 
terminated as a result of such section 119.

SEC. 109. INTERIM PROVISIONS.

    Until the Federal Communications Commission issues and implements 
regulations under section 712(b)(2) of the Communications Act of 1934, 
no subscriber whose household is located outside the Grade A contour of 
a network station shall have his or her satellite service of another 
network station affiliated with that same network terminated as a 
result of the provisions of section 119 of title 17, United States 
Code.

 TITLE II--SECONDARY TRANSMISSIONS BY SATELLITE CARRIERS WITHIN LOCAL 
                                MARKETS

SEC. 201. SHORT TITLE.

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

SEC. 202. LIMITATIONS ON EXCLUSIVE RIGHTS; SECONDARY TRANSMISSIONS BY 
              SATELLITE CARRIERS WITHIN LOCAL MARKETS.

    (a) In General.--Chapter 1 of title 17, United States Code, is 
amended by adding after section 121 the following new section:
``Sec. 122. Limitations on exclusive rights; secondary transmissions by 
              satellite carriers within local markets
    ``(a) Secondary Transmissions of Television Broadcast Stations by 
Satellite Carriers.--A secondary transmission of a primary transmission 
of a television broadcast station into the station's local market shall 
be subject to statutory licensing under this section if--
            ``(1) the secondary transmission is made by a satellite 
        carrier to the public;
            ``(2) the satellite carrier is in compliance with the 
        rules, regulations, or authorizations of the Federal 
        Communications Commission governing the carriage of television 
        broadcast station signals; and
            ``(3) the satellite carrier makes a direct or indirect 
        charge for the secondary transmission to--
                    ``(A) each subscriber receiving the secondary 
                transmission; or
                    ``(B) a distributor that has contracted with the 
                satellite carrier for direct or indirect delivery of 
                the secondary transmission to the public.
    ``(b) Reporting Requirements.--
            ``(1) Initial lists.--A satellite carrier that makes 
        secondary transmissions of a primary transmission made by a 
        network station under subsection (a) shall, within 90 days 
        after commencing such secondary transmissions, submit to the 
        network that owns or is affiliated with the network station a 
        list identifying (by name in alphabetical order and street 
        address, including county and zip code) all subscribers to 
        which the satellite carrier currently makes secondary 
        transmissions of that primary transmission pursuant to this 
        section.
            ``(2) Subsequent lists.--After the list is submitted under 
        paragraph (1), the satellite carrier shall, on the 15th of each 
        month, submit to the network a list identifying (by name in 
        alphabetical order 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 network to which 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 and Regulatory Requirements.--
Notwithstanding subsection (a), the willful or repeated secondary 
transmission to the public by a satellite carrier into the local market 
of a television broadcast station of a primary transmission made by 
that television broadcast station and embodying a performance or 
display of a work is actionable as an act of infringement under section 
501, and is fully subject to the remedies provided under sections 502 
through 506 and 509, if the satellite carrier has not complied with the 
reporting requirements of subsection (b) or with the rules, 
regulations, and authorizations of the Federal Communications 
Commission concerning the carriage of television broadcast signals.
    ``(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, or 
        a private licensing agreement, 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 or subscribers being served in compliance 
with section 119.
    ``(h) Geographic Limitations on Secondary Transmissions.--The 
statutory license created by this section shall apply to secondary 
transmissions to locations in the United States, and any commonwealth, 
territory, or possession of the United States.
    ``(i) Exclusivity With Respect to Secondary Transmissions of 
Broadcast Stations by Satellite to Members of the Public.--No provision 
of section 111 or any other law (other than this section and section 
119) shall be construed to contain any authorization, exemption, or 
license through which secondary transmissions by satellite carriers of 
programming contained in a primary transmission made by a television 
broadcast station may be made without obtaining the consent of the 
copyright owner.
    ``(j) Definitions.--In this section--
            ``(1) Distributor.--The term `distributor' means an entity 
        which contracts to distribute secondary transmissions from a 
        satellite carrier and, either as a single channel or in a 
        package with other programming, provides the secondary 
        transmission either directly to individual subscribers or 
        indirectly through other program distribution entities.
            ``(2) Local market.--The `local market' of a television 
        broadcast station has the meaning given that term under section 
        3 of the Communications Act of 1934.
            ``(3) Network station; satellite carrier; secondary 
        transmission.--The terms `network station', `satellite carrier' 
        and `secondary transmission' have the meanings given such terms 
        under section 119(d).
            ``(4) Subscriber.--The term `subscriber' means a person 
        that receives a secondary transmission service by means of a 
        secondary transmission from a satellite and pays a fee for the 
        service, directly or indirectly, to the satellite carrier or to 
        a distributor.
            ``(5) Television broadcast station.--The term `television 
        broadcast station' means an over-the-air, commercial or 
        noncommercial television broadcast station licensed by the 
        Federal Communications Commission under subpart E of part 73 of 
        title 47, Code of Federal Regulations.''.
    (b) Infringement of Copyright.--Section 501 of title 17, United 
States Code, is amended by adding at the end the following new 
subsection:
    ``(f) With respect to any secondary transmission that is made by a 
satellite carrier of a primary transmission embodying the performance 
or display of a work and is actionable as an act of infringement under 
section 122, a television broadcast station holding a copyright or 
other license to transmit or perform the same version of that work 
shall, for purposes of subsection (b) of this section, be treated as a 
legal or beneficial owner if such secondary transmission occurs within 
the local market of that station.''.
    (c) Technical and Conforming Amendments.--The table of sections for 
chapter 1 of title 17, United States Code, is amended by adding after 
the item relating to section 121 the following:

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

SEC. 203. EXTENSION OF EFFECT OF AMENDMENTS TO SECTION 119 OF TITLE 17, 
              UNITED STATES CODE.

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

SEC. 204. COMPUTATION OF ROYALTY FEES FOR SATELLITE CARRIERS.

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

SEC. 205. PUBLIC BROADCASTING SERVICE SATELLITE FEED; DEFINITIONS.

    (a) Secondary Transmissions.--Section 119(a)(1) of title 17, United 
States Code, is amended--
            (1) by striking the paragraph heading and inserting ``(1) 
        Superstations and pbs satellite feed.--'';
            (2) by inserting ``or by the Public Broadcasting Service 
        satellite feed'' after ``superstation''; and
            (3) by adding at the end the following: ``In the case of 
        the Public Broadcasting Service satellite feed, subsequent to--
                    ``(A) the date when a majority of subscribers to 
                satellite carriers are able to receive the signal of at 
                least one noncommercial educational television 
                broadcast station from their satellite carrier within 
                such stations' local market; or
                    ``(B) 2 years after the effective date of the 
                Satellite Copyright Compulsory License Improvement Act,
        whichever is earlier, the statutory license created by this 
        section shall be conditioned on certification of support 
        pursuant to section 396(n) of the Communications Act of 
        1934.''.
    (b) Definitions.--Section 119(d) of title 17, United States Code, 
is amended by adding at the end the following:
            ``(12) Public broadcasting service satellite feed.--The 
        term `Public Broadcasting Service satellite feed' means the 
        national satellite feed distributed by the Public Broadcasting 
        Service consisting of educational and informational programming 
        intended for private home viewing, to which the Public 
        Broadcasting Service holds national terrestrial broadcast 
        rights.
            ``(13) Local market.--The term `local market' has the 
        meaning given that term in section 122(j)(2).
            ``(14) Television broadcast station.--The term `television 
        broadcast station' has the meaning given that term in section 
        122(j)(5).''.

SEC. 206. DISTANT SIGNAL RETRANSMISSIONS.

    Section 119 of title 17, United States Code, is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``(6)'' and 
                inserting ``(5)'';
                    (B) in paragraph (2)--
                            (i) by striking
            ``(2) Network stations.--
                    ``(A) In general.--Subject to the provisions of 
                subparagraphs (B) and (C) of this paragraph and 
                paragraphs (3), (4), (5), and (6)'' and inserting:
            ``(2) Network stations.--
                    ``(A) In general.--Subject to the provisions of 
                subparagraph (B) of this paragraph and paragraphs (3), 
                (4), and (5)''; and
                            (ii) by striking subparagraph (B) and 
                        redesignating subparagraph (C) as subparagraph 
                        (B);
                    (C) in paragraph (3), by striking ``(2)(C)'' and 
                inserting ``(2)(B)''; and
                    (D) by striking paragraphs (5), (8), (9), and (10) 
                and redesignating paragraphs (6) and (7) as paragraphs 
                (5) and (6), respectively; and
            (2) in subsection (d), by striking paragraphs (10) and 
        (11).

SEC. 207. APPLICATION OF FEDERAL COMMUNICATIONS COMMISSION REGULATIONS.

    Section 119(a) of title 17, United States Code, is amended--
            (1) in paragraph (1), by inserting ``the satellite carrier 
        is in compliance with the rules, regulations, or authorizations 
        of the Federal Communications Commission governing the carriage 
        of television broadcast station signals,'' after ``satellite 
        carrier to the public for private home viewing,'';
            (2) in paragraph (2), by inserting ``the satellite carrier 
        is in compliance with the rules, regulations, or authorizations 
        of the Federal Communications Commission governing the carriage 
        of television broadcast station signals,'' after ``satellite 
        carrier to the public for private home viewing,''; and
            (3) by adding at the end the following new paragraph:
            ``(10) Statutory license contingent on compliance with fcc 
        rules and remedial steps.--Notwithstanding any other provision 
        of this section, the willful or repeated secondary transmission 
        to the public by a satellite carrier of a primary transmission 
        made by a broadcast station licensed by the Federal 
        Communications Commission 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, at 
        the time of such transmission, the satellite carrier is not in 
        compliance with the rules, regulations, and authorizations of 
        the Federal Communications Commission concerning the carriage 
        of television broadcast station signals.''.

SEC. 208. STUDY ON TECHNICAL AND ECONOMIC IMPACT OF MUST-CARRY ON 
              DELIVERY OF LOCAL SIGNALS.

    Not later than July 1, 2000, the Register of Copyrights and the 
Assistant Secretary of Commerce for Communications and Information 
shall submit to the Congress a joint report that sets forth in detail 
their findings and conclusions with respect to the following:
            (1) The availability of local television broadcast signals 
        in small and rural markets as part of a service that competes 
        with, or supplements, video programming containing copyrighted 
        material delivered by satellite carriers or cable operators.
            (2) The technical feasibility of imposing the requirements 
        of section 338 of the Communications Act of 1934 on satellite 
        carriers that deliver local broadcast station signals 
        containing copyrighted material pursuant to section 122 of 
        title 17, United States Code, and the technical and economic 
        impact of section 338 of the Communications Act of 1934 on the 
        ability of satellite carriers to serve multiple television 
        markets with retransmission of local television broadcast 
        stations, with particular consideration given to the ability to 
        serve television markets other than the 100 largest television 
        markets in the United States (as determined by the Nielson 
        Media Research and published in the DMA market and Demographic 
        Report).
            (3) The technological capability of dual satellite dish 
        technology to receive effectively over-the-air broadcast 
        transmissions containing copyrighted material from the local 
        market, the availability of such capability in small and rural 
        markets, and the affordability of such capability.
            (4) The technological capability (including interference), 
        availability, and affordability of wireless cable (or 
        terrestrial wireless) delivery of local broadcast station 
        signals containing copyrighted material pursuant to section 111 
        of title 17, United States Code, including the feasibility and 
        desirability of the expedited licensing of such competitive 
        wireless technologies for rural and small markets.
            (5) The technological capability, availability, and 
        affordability of a broadcast-only basic tier of cable service.

SEC. 209. EFFECTIVE DATE.

    This title and the amendments made by this title shall take effect 
on July 1, 1999, except that section 208 and the amendments made by 
section 205 shall take effect on the date of the enactment of this Act.

            Passed the House of Representatives April 27, 1999.

            Attest:

                                                 JEFF TRANDAHL,

                                                                 Clerk.`