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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4518 Introduced in House (IH)]

108th CONGRESS
  2d Session
                                H. R. 4518

   To extend the statutory license for secondary transmissions under 
              section 119 of title 17, United States Code.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              June 4, 2004

     Mr. Smith of Texas (for himself, Mr. Conyers, and Mr. Berman) 
 introduced the following bill; which was referred to the Committee on 
                             the Judiciary

_______________________________________________________________________

                                 A BILL

 
   To extend the statutory license for secondary transmissions under 
              section 119 of title 17, United States Code.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Satellite Home 
Viewer Extension and Reauthorization Act of 2004''.
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
           TITLE I--STATUTORY LICENSE FOR SATELLITE CARRIERS

Sec. 101. Extension of authority.
Sec. 102. Reporting of subscribers; significantly viewed and other 
                            signals; technical amendments.
Sec. 103. Statutory license for satellite carriers outside local 
                            markets.
Sec. 104. Study.
Sec. 105. Effect on certain proceedings.

           TITLE I--STATUTORY LICENSE FOR SATELLITE CARRIERS

SEC. 101. EXTENSION OF AUTHORITY.

    (a) In General.--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, 2004'' and inserting ``December 31, 
2009''.
    (b) Extension for Certain Subscribers.--Section 119(e) of title 17, 
United States Code, is amended by striking ``December 31, 2004'' and 
inserting ``December 31, 2009''.

SEC. 102. REPORTING OF SUBSCRIBERS; SIGNIFICANTLY VIEWED AND OTHER 
              SIGNALS; TECHNICAL AMENDMENTS.

    Section 119(a) of title 17, United States Code, is amended--
            (1) in paragraph (1)--
                    (A) in the paragraph heading, by striking ``and pbs 
                satellite feed'';
                    (B) in the first sentence, by striking ``(3), (4), 
                and (6)'' and inserting ``(5), (6), and (8)'';
                    (C) in the first sentence, by striking ``or by the 
                Public Broadcasting Service satellite feed''; and
                    (D) by striking the second sentence;
            (2) in paragraph (2)--
                    (A) in subparagraph (A), by striking ``(3), (4), 
                (5), and (6)'' and inserting ``(5), (6), (7), and 
                (8)''; and
                    (B) by amending subparagraph (C) to read as 
                follows:
                    ``(C) Submission of subscriber lists to networks.--
                            ``(i) Initial lists.--A satellite carrier 
                        that makes secondary transmissions of a primary 
                        transmission made by a network station pursuant 
                        to subparagraph (A) shall, 90 days after 
                        commencing such secondary transmissions, submit 
                        to the network that owns or is affiliated with 
                        the network station--
                                    ``(I) a list identifying (by name 
                                and street address, including county 
                                and zip code) all subscribers to which 
                                the satellite carrier makes secondary 
                                transmissions of that primary 
                                transmission to subscribers in unserved 
                                households; and
                                    ``(II) a separate list, aggregated 
                                by designated market area (as defined 
                                in section 122(j)) (by name and street 
                                address, including county and zip 
                                code), which shall indicate those 
                                subscribers being served pursuant to 
                                subsection (a)(3), relating to 
                                significantly viewed stations.
                            ``(ii) Monthly lists.--After the submission 
                        of the initial lists under clause (i), on the 
                        15th of each month, the satellite carrier shall 
                        submit to the network--
                                    ``(I) a list identifying (by name 
                                and street address, including county 
                                and zip code) any persons who have been 
                                added or dropped as subscribers under 
                                clause (i)(I) since the last submission 
                                under clause (i); and
                                    ``(II) a separate list, aggregated 
                                by designated market area (by name and 
                                street address, including county and 
                                zip code), identifying those 
                                subscribers whose service pursuant to 
                                subsection (a)(3), relating to 
                                significantly viewed stations, has been 
                                added or dropped.
                            ``(iii) Use of subscriber information.--
                        Subscriber information submitted by a satellite 
                        carrier under this subparagraph may be used 
                        only for purposes of monitoring compliance by 
                        the satellite carrier with this subsection.
                            ``(iv) Applicability.--The submission 
                        requirements of this subparagraph shall apply 
                        to a satellite carrier only if the network to 
                        whom the submissions are to be made places on 
                        file with the Register of Copyrights a document 
                        identifying the name and address of the person 
                        to whom such submissions are to be made. The 
                        Register shall maintain for public inspection a 
                        file of all such documents.'';
            (3) by adding at the end the following new subparagraph:
                    ``(D) States with single commercial full-power 
                network station.--In a State in which there is licensed 
                by the Federal Communications Commission a single full-
                power station that was a network station on January 1, 
                1995, the statutory license provided for in 
                subparagraph (A) shall apply to the secondary 
                transmission by a satellite carrier of the signal of 
                that station to any subscriber in a community that is 
                located within that State and that is not within the 
                first 50 major television markets as listed in the 
                regulations of the Commission as in effect on such date 
                (47 CFR 76.51).'';
            (4) by striking paragraph (8);
            (5) by redesignating paragraphs (9) through (12) as 
        paragraphs (10) through (13), respectively;
            (6) by redesignating paragraphs (3) through (7) as 
        paragraphs (5) through (9), respectively;
            (7) by inserting after paragraph (2) the following:
            ``(3) Secondary transmissions of significantly viewed 
        signals.--
                    ``(A) In general.--Notwithstanding the provisions 
                of paragraph (2)(B), and subject to subparagraph (B) of 
                this paragraph, the statutory license provided for in 
                paragraphs (1) and (2) shall apply to the secondary 
                transmission of the signal of a network station or a 
                superstation to a subscriber who resides outside the 
                station's local market (as defined in section 122(j)) 
                but within a community in which the signal of that 
                station is determined to be significantly viewed under 
                section 340 of the Communications Act of 1934.
                    ``(B) Limitation.--Subparagraph (A) shall apply 
                only to secondary transmissions of network stations and 
                superstations to subscribers who receive secondary 
                transmissions from a satellite carrier pursuant to the 
                statutory license under section 122.''; and
            (8) in paragraph (2)(B)(i), by adding at the end the 
        following new sentence: ``The limitation in this clause shall 
        not apply to secondary transmissions under paragraph (3).''.

SEC. 103. STATUTORY LICENSE FOR SATELLITE CARRIERS OUTSIDE LOCAL 
              MARKETS.

     Section 119 of title 17, United States Code, is amended as 
follows:
            (1) Subsection (a) is amended by inserting after paragraph 
        (3), as added by section 102 of this Act, the following:
            ``(4) Statutory license where retransmissions into local 
        market available.--
                    ``(A) Rules for subscribers under subsection (e).--
                In the case of a subscriber of a satellite carrier who 
                is eligible to receive the signal of a network station 
                solely by reason of subsection (e) (in this 
                subparagraph referred to as a `distant signal'), the 
                following shall apply:
                            ``(i) In a case in which the signal of a 
                        local network station affiliated with the same 
                        television network is made available by that 
                        satellite carrier to the subscriber pursuant to 
                        the statutory license under section 122, the 
                        statutory license under paragraph (2) shall 
                        apply only to secondary transmissions by that 
                        satellite carrier of the distant signal of such 
                        network station to that subscriber--
                                    ``(I) if, within 60 days after 
                                receiving the notice of the satellite 
                                carrier under section 338(h) of the 
                                Communications Act of 1934, the 
                                subscriber elects to retain the distant 
                                signal; but
                                    ``(II) only until such time as the 
                                subscriber elects to receive such local 
                                signal.
                            ``(ii) Notwithstanding clause (i), the 
                        statutory license under paragraph (2) shall not 
                        apply to any subscriber who is eligible to 
                        receive the signal of a network station solely 
                        by reason of subsection (e) unless the 
                        subscriber's satellite carrier, within 60 days 
                        after the date of the enactment of the 
                        Satellite Home Viewer Extension and 
                        Reauthorization Act of 2004, submits to that 
                        television network a list, aggregated by 
                        designated market area (as defined in section 
                        122(j)(2)(C)), that--
                                    ``(I) identifies that subscriber by 
                                name and address (street or RFD number, 
                                city, State, and zip code) and 
                                specifies the distant signals received 
                                by the subscriber; and
                                    ``(II) states, to the best of the 
                                satellite carrier's knowledge and 
                                belief, after having made diligent and 
                                good faith inquiries, that the 
                                subscriber is eligible under subsection 
                                (e) to receive the distant signals.
                    ``(B) Rules for other subscribers.--In the case of 
                a subscriber of a satellite carrier who is eligible to 
                receive the signal of a network station under the 
                statutory license under paragraph (2) (in this 
                subparagraph referred to as a `distant signal'), other 
                than subscribers to whom subparagraph (A) applies, the 
                following shall apply:
                            ``(i) In a case in which the signal of a 
                        local network station affiliated with the same 
                        television network is made available by that 
                        satellite carrier, on the date of the enactment 
                        of the Satellite Home Viewer Extension and 
                        Reauthorization Act of 2004, to the subscriber 
                        pursuant to the statutory license under section 
                        122, the statutory license under paragraph (2) 
                        shall apply only to secondary transmissions by 
                        that satellite carrier of the distant signal of 
                        such network station to that subscriber--
                                    ``(I)(aa) if, on such date of 
                                enactment, the subscriber is receiving 
                                such distant signal and is also 
                                receiving such local signal, and
                                    ``(bb) the subscriber's satellite 
                                carrier, within 60 days after such date 
                                of enactment, submits to that 
                                television network a list, aggregated 
                                by designated market area (as defined 
                                in section 122(j)(2)(C)), that 
                                identifies that subscriber by name and 
                                address (street or RFD number, city, 
                                State, and zip code) and specifies the 
                                distant signals received by the 
                                subscriber; or
                                    ``(II)(aa) if, on such date of 
                                enactment, the subscriber is receiving 
                                such distant signal and is not 
                                receiving such local signal; but
                                    ``(bb) only until such time as the 
                                subscriber elects to receive such local 
                                signal.
                            ``(ii) In a case in which the signal of a 
                        local network station affiliated with the same 
                        television network is not made available by 
                        that satellite carrier, on the date of the 
                        enactment of the Satellite Home Viewer 
                        Extension and Reauthorization Act of 2004, to a 
                        subscriber pursuant to the statutory license 
                        under section 122, the statutory license under 
                        paragraph (2) shall apply only to secondary 
                        transmissions by that satellite carrier of the 
                        distant signal of such network station to any 
                        person--
                                    ``(I) who is subscriber of that 
                                satellite carrier on such date of 
                                enactment, or
                                    ``(II) who becomes a subscriber of 
                                that satellite carrier after such date 
                                but before the local signal is 
                                available,
                        but only until such time as the subscriber 
                        elects to receive the local signal from that 
                        satellite carrier.
                    ``(C) Future applicability.--The statutory license 
                under paragraph (2) shall not apply to secondary 
                transmissions by a satellite carrier of a primary 
                transmission of a network station to a subscriber in a 
                location to which the signal of a local network station 
                affiliated with the same television network was made 
                available by that satellite carrier, before that person 
                became a subscriber to that satellite carrier, pursuant 
                to the statutory license under section 122.
                    ``(D) Nullification of existing waivers.--In the 
                case of any subscriber to whom subparagraph (B)(i)(II) 
                or (B)(ii) applies, at such time as the subscriber 
                elects to receive the local signal of a network 
                station, any waiver by that network station under 
                section 339(c)(2) of the Communications Act of 1934 
                shall cease to be effective with respect to that 
                subscriber.
                    ``(E) Other provisions not affected.--This 
                paragraph shall not affect the applicability of the 
                statutory license to secondary transmissions under 
                paragraph (3) or to unserved households included under 
                subsection (a)(12). ''.
            (2) Subsection (b)(1) is amended by striking subparagraph 
        (B) and inserting the following:
                    ``(B) a royalty fee for that 6-month period, 
                computed by multiplying the total number of subscribers 
                receiving each secondary transmission of each 
                superstation or network station during each calendar 
                month by the appropriate rate in effect under this 
                section.''.
            (3) Subsection (b)(1) is further amended by adding at the 
        end the following flush sentence:
        ``Notwithstanding the provisions of subparagraph (B), a 
        satellite carrier whose secondary transmissions are subject to 
        statutory licensing under paragraph (1) or (2) of subsection 
        (a) shall have no royalty obligation for secondary 
        transmissions to a subscriber who resides outside the station's 
        local market (as defined in section 122(j)(2)) but within a 
        community in which the signal of that station is determined to 
        be significantly viewed under section 340 of the Communications 
        Act of 1934.''.
            (4) Subsection (c) is amended--
                    (A) by amending paragraph (1) to read as follows:
            ``(1) Applicability and determination of royalty fees.--The 
        appropriate rate for purposes of determining the royalty fee 
        under subsection (b)(1)(B) shall be the appropriate rate set 
        forth in part 258 of title 37, Code of Federal Regulations, as 
        in effect on the date of the enactment of the Satellite Home 
        Viewer Extension and Reauthorization Act of 2004, as modified 
        under this subsection.'';
                    (B) by striking paragraph (2);
                    (C) in paragraph (3)--
                            (i) by redesignating that paragraph as 
                        paragraph (2);
                            (ii) in subparagraph (A)--
                                    (I) by striking ``January 1, 
                                1997,'' and inserting ``January 1, 
                                2005,''; and
                                    (II) by striking ``who are not 
                                parties to a voluntary agreement filed 
                                with the Copyright Office in accordance 
                                with paragraph (2)'';
                            (iii) in subparagraph (C), by striking ``as 
                        provided'' and all that follows through 
                        ``later'' and inserting ``January 1, 2006''; 
                        and
                            (iv) by striking subparagraph (D); and
                    (D) by striking paragraphs (4) and (5) and 
                inserting the following:
            ``(3) Cost of living adjustment.--The royalty rates set 
        forth in subsection (b)(1)(B), as adjusted under paragraph (2) 
        of this subsection, shall be adjusted by the Librarian of 
        Congress--
                    ``(A) on January 1, 2005, to reflect any changes 
                occurring during the period beginning on January 1, 
                2000, and ending on November 30, 2004, in the cost of 
                living as determined by the most recent Consumer Price 
                Index (for all consumers and items) published by the 
                Secretary of Labor during that period; and
                    ``(B) on January 1, 2007, and on January 1 of each 
                year thereafter, to reflect any changes occurring 
                during the preceding 12 months in the cost of living as 
                determined by the most recent Consumer Price Index so 
                published.
            ``(4) Reductions.--The rate of the royalty fee determined 
        under paragraph (2)--
                    ``(A) for superstations shall be reduced by 30 
                percent; and
                    ``(B) for network stations shall be reduced by 45 
                percent.''.
            (5) Subsection (d) is amended--
                    (A) by amending paragraph (9) to read as follows:
            ``(9) Superstation.--The term `superstation' means a 
        television broadcast station, other than a network station, 
        licensed by the Federal Communications Commission that is 
        secondarily transmitted by a satellite carrier.'';
                    (B) in paragraph (10)(D), by striking ``(a)(11)'' 
                and inserting ``(a)(12)''; and
                    (C) by striking paragraph (12).

SEC. 104. STUDY.

     No later than June 30, 2008, the Register of Copyrights shall 
report to the Committee on the Judiciary of the House of 
Representatives and the Committee on the Judiciary of the Senate the 
Register's findings and recommendations on the operation and revision 
of the statutory licenses under sections 111, 119, and 122 of title 17, 
United States Code. The report should include, but not be limited to, 
the following:
            (1) A comparison of the royalties paid by licensees under 
        such sections, including historical rates of increases in these 
        royalties, a comparison between the royalties under each such 
        section and the prices paid in the marketplace for comparable 
        programming.
            (2) An analysis of the differences in the terms and 
        conditions of the licenses under such sections, an analysis of 
        whether these differences are required or justified by 
        historical, technological, or regulatory differences that 
        affect the satellite and cable industries, and an analysis of 
        whether either the cable or satellite industry is placed in a 
        competitive disadvantage due to these terms and conditions.
            (3) An analysis of whether the licenses under such sections 
        are still justified by the bases upon which they were 
        originally created.
            (4) An analysis of the correlation, if any, between the 
        royalties, or lack thereof, under such sections and the fees 
        charged to cable and satellite subscribers, addressing whether 
        cable and satellite companies have passed to subscribers any 
        savings realized as a result of the royalty structure and 
        amounts under such sections.

SEC. 105. EFFECT ON CERTAIN PROCEEDINGS.

    Nothing in this Act shall modify any remedy imposed on a party that 
is required by a final judgment of a court in any action that was 
brought before May 1, 2004, against that party for a violation of 
section 119 of title 17, United States Code.
                                 <all>
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