IB 

Union Calendar No. 402 

108TH CONGRESS 

2D SESSION H. R. 4518 

[Report No. 108–660] 

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 

SEPTEMBER 7, 2004 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on June 4, 2004] 

A BILL 

To extend the statutory license for secondary transmissions 

under section 119 of title 17, United States Code. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 
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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

2 (a) SHORT TITLE.—This Act may be cited as the ‘‘Sat3 ellite Home Viewer Extension and Reauthorization Act of 

4 2004’’. 

5 (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. Waivers. 

Sec. 105. Study. 

Sec. 106. Effect on certain proceedings. 

Sec. 107. Expedited consideration of voluntary agreements to provide satellite secondary transmissions to local markets. 

6 TITLE I—STATUTORY LICENSE 

7 FOR SATELLITE CARRIERS 

8 SEC. 101. EXTENSION OF AUTHORITY. 

9 (a) IN GENERAL.— Section 4(a) of the Satellite Home 

10 Viewer Act of 1994 (17 U.S.C. 119 note; Public Law 103– 

11 369; 108 Stat. 3481) is amended by striking ‘‘December 31, 

12 2004’’ and inserting ‘‘December 31, 2009’’. 

13 (b) EXTENSION FOR CERTAIN SUBSCRIBERS.—Section 

14 119(e) of title 17, United States Code, is amended by strik15 ing ‘‘December 31, 2004’’ and inserting ‘‘December 31, 

16 2009’’. 
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1 SEC. 102. REPORTING OF SUBSCRIBERS; SIGNIFICANTLY 

2 VIEWED AND OTHER SIGNALS; TECHNICAL 

3 AMENDMENTS. 

4 Section 119(a) of title 17, United States Code, is 

5 amended— 

6 (1) in paragraph (1)— 

7 (A) in the paragraph heading, by striking 

8 ‘‘AND PBS SATELLITE FEED’’; 

9 (B) in the first sentence, by striking ‘‘(3), 

10 (4), and (6)’’ and inserting ‘‘(5), (6), and (8)’’; 

11 (C) in the first sentence, by striking ‘‘or by 

12 the Public Broadcasting Service satellite feed’’; 

13 and 

14 (D) by striking the second sentence; 

15 (2) in paragraph (2)— 

16 (A) in subparagraph (A), by striking ‘‘(3), 

17 (4), (5), and (6)’’ and inserting ‘‘(5), (6), (7), 

18 and (8)’’; and 

19 (B) by striking subparagraph (C) and in20 serting the following: 

21 ‘‘(C) EXCEPTIONS.— 

22 ‘‘(i) STATES WITH SINGLE FULL23 POWER NETWORK STATION.—In a State in 

24 which there is licensed by the Federal Com25 munications Commission a single full26 power station that was a network station on 
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1 January 1, 1995, the statutory license pro2 vided for in subparagraph (A) shall apply 

3 to the secondary transmission by a satellite 

4 carrier of the signal of that station to any 

5 subscriber in a community that is located 

6 within that State and that is not within the 

7 first 50 television markets as listed in the 

8 regulations of the Commission as in effect 

9 on such date (47 C.F.R. 76.51). 

10 ‘‘(ii) CERTAIN ADDITIONAL STA11 TIONS.—The statutory license provided for 

12 in subparagraph (A) shall apply to the sec13 ondary transmission, by a satellite carrier 

14 to subscribers in no more than two counties 

15 in a State that are in local market prin16 cipally comprised of counties in another 

17 State, of the signals of any network station 

18 located in the capital of the State in which 

19 such counties are located, if the total num20 ber of television households in the two coun21 ties combined did not exceed 10,000 for the 

22 year 2003 according to Nielsen Media Re23 search. 

24 ‘‘(D) SUBMISSION OF SUBSCRIBER LISTS TO

25 NETWORKS.— 
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1 ‘‘(i) INITIAL LISTS.—A satellite carrier 

2 that makes secondary transmissions of a 

3 primary transmission made by a network 

4 station pursuant to subparagraph (A) shall, 

5 90 days after commencing such secondary 

6 transmissions, submit to the network that 

7 owns or is affiliated with the network sta8 tion— 

9 ‘‘(I) a list identifying (by name 

10 and street address, including county 

11 and zip code) all subscribers to which 

12 the satellite carrier makes secondary 

13 transmissions of that primary trans14 mission to subscribers in unserved 

15 households; and 

16 ‘‘(II) a separate list, aggregated 

17 by designated market area (as defined 

18 in section 122(j)) (by name and street 

19 address, including county and zip 

20 code), which shall indicate those sub21 scribers being served pursuant to sub22 section (a)(3), relating to significantly 

23 viewed stations. 

24 ‘‘(ii) MONTHLY LISTS.—After the sub25 mission of the initial lists under clause (i), 
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1 on the 15th of each month, the satellite car2 rier shall submit to the network— 

3 ‘‘(I) a list identifying (by name 

4 and street address, including county 

5 and zip code) any persons who have 

6 been added or dropped as subscribers 

7 under clause (i)(I) since the last sub8 mission under clause (i); and 

9 ‘‘(II) a separate list, aggregated 

10 by designated market area (by name 

11 and street address, including county 

12 and zip code), identifying those sub13 scribers whose service pursuant to sub14 section (a)(3), relating to significantly 

15 viewed stations, has been added or 

16 dropped. 

17 ‘‘(iii) USE OF SUBSCRIBER INFORMA18 TION.—Subscriber information submitted by 

19 a satellite carrier under this subparagraph 

20 may be used only for purposes of moni21 toring compliance by the satellite carrier 

22 with this subsection. 

23 ‘‘(iv) APPLICABILITY.—The submission 

24 requirements of this subparagraph shall 

25 apply to a satellite carrier only if the net-
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1 work to whom the submissions are to be 

2 made places on file with the Register of 

3 Copyrights a document identifying the 

4 name and address of the person to whom 

5 such submissions are to be made. The Reg6 ister shall maintain for public inspection a 

7 file of all such documents.’’; 

8 (3) by striking paragraph (8); 

9 (4) by redesignating paragraphs (9) through (12) 

10 as paragraphs (10) through (13), respectively; 

11 (5) by redesignating paragraphs (3) through (7) 

12 as paragraphs (5) through (9), respectively; 

13 (6) by inserting after paragraph (2) the fol14 lowing: 

15 ‘‘(3) SECONDARY TRANSMISSIONS OF SIGNIFI16 CANTLY VIEWED SIGNALS.— 

17 ‘‘(A) IN GENERAL.—Notwithstanding the 

18 provisions of paragraph (2)(B), and subject to 

19 subparagraph (B) of this paragraph, the statu20 tory license provided for in paragraphs (1) and 

21 (2) shall apply to the secondary transmission of 

22 the signal of a network station or a superstation 

23 to a subscriber who resides outside the station’s 

24 local market (as defined in section 122(j)) but 

25 within a community in which the signal of that 
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1 station was determined by the Federal Commu2 nications Commission, on or before the date of 

3 the enactment of the Satellite Home Viewer Ex4 tension and Reauthorization Act of 2004, to be 

5 significantly viewed in accordance with the pro6 visions of section 76.54 of title 47, Code of Fed7 eral Regulations, as in effect on such date of en8 actment. 

9 ‘‘(B) LIMITATION.—Subparagraph (A) shall 

10 apply only to secondary transmissions of net11 work stations and superstations to subscribers 

12 who receive secondary transmissions from a sat13 ellite carrier pursuant to the statutory license 

14 under section 122.’’; and 

15 (7) in paragraph (2)(B)(i), by adding at the end 

16 the following new sentence: ‘‘The limitation in this 

17 clause shall not apply to secondary transmissions 

18 under paragraph (3).’’. 

19 SEC. 103. STATUTORY LICENSE FOR SATELLITE CARRIERS 

20 OUTSIDE LOCAL MARKETS. 

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

22 as follows: 

23 (1) Subsection (a) is amended by inserting after 

24 paragraph (3), as added by section 102 of this Act, 

25 the following: 
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1 ‘‘(4) STATUTORY LICENSE WHERE RETRANS2 MISSIONS INTO LOCAL MARKET AVAILABLE.— 

3 ‘‘(A) RULES FOR SUBSCRIBERS UNDER SUB4 SECTION (e).— 

5 ‘‘(i) FOR THOSE RECEIVING DISTANT

6 SIGNALS.—In the case of a subscriber of a 

7 satellite carrier who is eligible to receive the 

8 signal of a network station solely by reason 

9 of subsection (e) (in this subparagraph re10 ferred to as a ‘distant signal’), and who is 

11 receiving the distant signal of a network 

12 station on the date of the enactment of the 

13 Satellite Home Viewer Extension and Reau14 thorization Act of 2004, the following shall 

15 apply: 

16 ‘‘(I) In a case in which the signal 

17 of a local network station affiliated 

18 with the same television network is 

19 made available by that satellite carrier 

20 to the subscriber pursuant to the statu21 tory license under section 122, the stat22 utory license under paragraph (2) 

23 shall apply only to secondary trans24 missions by that satellite carrier to 

25 that subscriber of the distant signal of 
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1 a station affiliated with the same tele2 vision network— 

3 ‘‘(aa) if, within 60 days after 

4 receiving the notice of the satellite 

5 carrier under section 338(h) of the 

6 Communications Act of 1934, the 

7 subscriber elects to retain the dis8 tant signal; but 

9 ‘‘(bb) only until such time as 

10 the subscriber elects to receive such 

11 local signal. 

12 ‘‘(II) Notwithstanding subclause 

13 (I), the statutory license under para14 graph (2) shall not apply with respect 

15 to any subscriber who is eligible to re16 ceive the distant signal of a television 

17 network station solely by reason of sub18 section (e) and to whom subclause (I) 

19 applies unless the satellite carrier, 

20 within 60 days after the date of the en21 actment of the Satellite Home Viewer 

22 Extension and Reauthorization Act of 

23 2004, submits to that television net24 work a list, aggregated by designated 
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1 market area (as defined in section 

2 122(j)(2)(C)), that— 

3 ‘‘(aa) identifies that sub4 scriber by name and address 

5 (street or RFD number, city, 

6 State, and zip code) and specifies 

7 the distant signals received by the 

8 subscriber; and 

9 ‘‘(bb) states, to the best of the 

10 satellite carrier’s knowledge and 

11 belief, after having made diligent 

12 and good faith inquiries, that the 

13 subscriber is eligible under sub14 section (e) to receive the distant 

15 signals. 

16 ‘‘(ii) FOR THOSE NOT RECEIVING DIS17 TANT SIGNALS.—In the case of any sub18 scriber of a satellite carrier who is eligible 

19 to receive the distant signal of a network 

20 station solely by reason of subsection (e) 

21 and who did not receive a distant signal of 

22 a station affiliated with the same network 

23 on July 1, 2004, the statutory license under 

24 paragraph (2) shall not apply to secondary 
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1 transmissions by that satellite carrier to that 

2 subscriber of that distant signal. 

3 ‘‘(B) RULES FOR OTHER SUBSCRIBERS.—In 

4 the case of a subscriber of a satellite carrier who 

5 is eligible to receive the signal of a network sta6 tion under the statutory license under paragraph 

7 (2) (in this subparagraph referred to as a ‘dis8 tant signal’), other than subscribers to whom 

9 subparagraph (A) applies, the following shall 

10 apply: 

11 ‘‘(i) In a case in which the signal of a 

12 local network station affiliated with the 

13 same television network is made available 

14 by that satellite carrier, on January 1, 

15 2005, to the subscriber pursuant to the stat16 utory license under section 122, the statu17 tory license under paragraph (2) shall 

18 apply only to secondary transmissions by 

19 that satellite carrier to that subscriber of the 

20 distant signal of a station affiliated with 

21 the same television network if the sub22 scriber’s satellite carrier, within 60 days 

23 after such date, submits to that television 

24 network a list, aggregated by designated 

25 market area (as defined in section 
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1 122(j)(2)(C)), that identifies that subscriber 

2 by name and address (street or RFD num3 ber, city, State, and zip code) and specifies 

4 the distant signals received by the sub5 scriber. 

6 ‘‘(ii) In a case in which the signal of 

7 a local network station affiliated with the 

8 same television network is not made avail9 able by that satellite carrier, on January 1, 

10 2005, to a subscriber pursuant to the statu11 tory license under section 122, the statutory 

12 license under paragraph (2) shall apply 

13 only to secondary transmissions by that sat14 ellite carrier of the distant signal of a sta15 tion affiliated with the same network to any 

16 person— 

17 ‘‘(I) who is a subscriber of that 

18 satellite carrier on such date, or 

19 ‘‘(II) who becomes a subscriber of 

20 that satellite carrier after such date but 

21 before the local signal is available, 

22 but only until such time as the subscriber 

23 elects to receive the local signal from that 

24 satellite carrier. 
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1 ‘‘(C) FUTURE APPLICABILITY.—The statu2 tory license under paragraph (2) shall not apply 

3 to the secondary transmission by a satellite car4 rier of a primary transmission of a network sta5 tion to a subscriber who— 

6 ‘‘(i) does not receive such secondary 

7 transmission as of the date of the enactment 

8 of the Satellite Home Viewer Extension and 

9 Reauthorization Act of 2004; and 

10 ‘‘(ii) resides in a local market where 

11 the satellite carrier makes available a net12 work station affiliated with the same tele13 vision network pursuant to the statutory li14 cense under section 122. 

15 ‘‘(D) OTHER PROVISIONS NOT AFFECTED.— 

16 This paragraph shall not affect the applicability 

17 of the statutory license to secondary trans18 missions under paragraph (3) or to unserved 

19 households included under paragraph (12). 

20 ‘‘(E) AVAILABLE DEFINED.—For purposes 

21 of this paragraph, a local signal has been made 

22 available by a satellite carrier to a subscriber or 

23 person if the satellite carrier offers that local sig24 nal to other subscribers who reside in the same 

25 zipcode as that subscriber or person.’’. 
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1 (2) Subsection (b)(1) is amended by striking sub2 paragraph (B) and inserting the following: 

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

4 computed by multiplying the total number of 

5 subscribers receiving each secondary trans6 mission of each superstation or network station 

7 during each calendar month by the appropriate 

8 rate in effect under this section.’’. 

9 (3) Subsection (b)(1) is further amended by add10 ing at the end the following flush sentence: 

11 ‘‘Notwithstanding the provisions of subparagraph (B), 

12 a satellite carrier whose secondary transmissions are 

13 subject to statutory licensing under paragraph (1) or 

14 (2) of subsection (a) shall have no royalty obligation 

15 for secondary transmissions to a subscriber who re16 sides outside the station’s local market (as defined in 

17 section 122(j)(2)) but within a community in which 

18 the signal of that station was determined by the Fed19 eral Communications Commission, on or before the 

20 date of the enactment of the Satellite Home Viewer 

21 Extension and Reauthorization Act of 2004, to be sig22 nificantly viewed in accordance with the provisions of 

23 section 76.54 of title 47, Code of Federal Regulations, 

24 as in effect on such date of enactment.’’. 

25 (4) Subsection (c) is amended— 
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1 (A) by amending paragraph (1) to read as 

2 follows: 

3 ‘‘(1) APPLICABILITY AND DETERMINATION OF

4 ROYALTY FEES.—The appropriate rate for purposes of 

5 determining the royalty fee under subsection (b)(1)(B) 

6 shall be the appropriate rate set forth in part 258 of 

7 title 37, Code of Federal Regulations, as in effect on 

8 the date of the enactment of the Satellite Home View9 er Extension and Reauthorization Act of 2004, as 

10 modified under this subsection.’’; 

11 (B) by striking paragraph (2); 

12 (C) in paragraph (3)— 

13 (i) by redesignating that paragraph as 

14 paragraph (2); 

15 (ii) in subparagraph (A)— 

16 (I) by striking ‘‘January 1, 

17 1997,’’ and inserting ‘‘January 1, 

18 2005,’’; and 

19 (II) by striking ‘‘who are not par20 ties to a voluntary agreement filed 

21 with the Copyright Office in accord22 ance with paragraph (2)’’; 

23 (iii) in subparagraph (C), by striking 

24 ‘‘as provided’’ and all that follows through 
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1 ‘‘later’’ and inserting ‘‘on January 1, 

2 2006’’; and 

3 (iv) by striking subparagraph (D); and 

4 (D) by striking paragraphs (4) and (5) and 

5 inserting the following: 

6 ‘‘(3) COST OF LIVING ADJUSTMENT.—The royalty 

7 rates set forth in subsection (b)(1)(B), as adjusted 

8 under paragraph (2) of this subsection, shall be ad9 justed by the Librarian of Congress— 

10 ‘‘(A) on January 1, 2005, to reflect any 

11 changes occurring during the period beginning 

12 on January 1, 2000, and ending on November 

13 30, 2004, in the cost of living as determined by 

14 the most recent Consumer Price Index (for all 

15 consumers and items) published by the Secretary 

16 of Labor during that period; and 

17 ‘‘(B) on January 1, 2007, and on January 

18 1 of each year thereafter, to reflect any changes 

19 occurring during the preceding 12 months in the 

20 cost of living as determined by the most recent 

21 Consumer Price Index so published. 

22 ‘‘(4) REDUCTIONS.—The rate of the royalty fee 

23 determined under paragraph (2)— 

24 ‘‘(A) for superstations shall be reduced by 

25 30 percent; and 
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1 ‘‘(B) for network stations shall be reduced 

2 by 45 percent.’’. 

3 (5) Subsection (d) is amended— 

4 (A) by amending paragraph (9) to read as 

5 follows: 

6 ‘‘(9) SUPERSTATION.—The term ‘superstation’ 

7 means a television broadcast station, other than a 

8 network station, licensed by the Federal Communica9 tions Commission that is secondarily transmitted by 

10 a satellite carrier.’’; 

11 (B) in paragraph (10)(D), by striking 

12 ‘‘(a)(11)’’ and inserting ‘‘(a)(12)’’; and 

13 (C) by striking paragraph (12). 

14 (6) Subsection (a)(7), as redesignated by section 

15 102(5) of this Act, is amended— 

16 (A) in subparagraph (A), by striking ‘‘who 

17 does not reside in an unserved household’’ and 

18 inserting ‘‘who is not eligible to receive the 

19 transmission under this section’’; 

20 (B) in subparagraph (B), by striking ‘‘who 

21 do not reside in unserved households’’ and insert22 ing ‘‘who are not eligible to receive the trans23 mission under this section’’; and 

24 (C) in subparagraph (D), by striking ‘‘is 

25 for private home viewing to an unserved house-
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1 hold’’ and inserting ‘‘is to a subscriber who is el2 igible to receive the transmission under this sec3 tion’’. 

4 SEC. 104. WAIVERS. 

5 Section 119(a) of title 17, United States Code, is 

6 amended by adding at the end the following new paragraph: 

7 ‘‘(14) WAIVERS.—A subscriber who is denied the 

8 secondary transmission of a network station under 

9 paragraph (4)(C), or is denied the secondary trans10 mission of a network station or a superstation under 

11 paragraph (3)(B), may request a waiver from such 

12 denial by submitting a request, through the sub13 scriber’s satellite carrier, to the network station or 

14 superstation in the local market where the subscriber 

15 is located. The network station or superstation shall 

16 accept or reject the subscriber’s request for a waiver 

17 within 30 days after receipt of the request. If the net18 work station or superstation fails to accept or reject 

19 the subscriber’s request for a waiver within that 30- 

20 day period, that network station or superstation, as 

21 the case may be, shall be deemed to agree to the waiv22 er request. Unless specifically stated by the network 

23 station or superstation, a waiver under section 

24 339(c)(2) of the Communications Act shall not con25 stitute a waiver for purposes of this paragraph.’’. 
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1 SEC. 105. STUDY. 

2 No later than June 30, 2008, the Register of Copy3 rights shall report to the Committee on the Judiciary of 

4 the House of Representatives and the Committee on the Ju5 diciary of the Senate the Register’s findings and rec6 ommendations on the operation and revision of the statu7 tory licenses under sections 111, 119, and 122 of title 17, 

8 United States Code. The report should include, but not be 

9 limited to, the following: 

10 (1) A comparison of the royalties paid by licens11 ees under such sections, including historical rates of 

12 increases in these royalties, a comparison between the 

13 royalties under each such section and the prices paid 

14 in the marketplace for comparable programming. 

15 (2) An analysis of the differences in the terms 

16 and conditions of the licenses under such sections, an 

17 analysis of whether these differences are required or 

18 justified by historical, technological, or regulatory dif19 ferences that affect the satellite and cable industries, 

20 and an analysis of whether either the cable or satellite 

21 industry is placed in a competitive disadvantage due 

22 to these terms and conditions. 

23 (3) An analysis of whether the licenses under 

24 such sections are still justified by the bases upon 

25 which they were originally created. 
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1 (4) An analysis of the correlation, if any, be2 tween the royalties, or lack thereof, under such sec3 tions and the fees charged to cable and satellite sub4 scribers, addressing whether cable and satellite com5 panies have passed to subscribers any savings realized 

6 as a result of the royalty structure and amounts 

7 under such sections. 

8 SEC. 106. EFFECT ON CERTAIN PROCEEDINGS. 

9 Nothing in this title shall modify any remedy imposed 

10 on a party that is required by the judgment of a court in 

11 any action that was brought before May 1, 2004, against 

12 that party for a violation of section 119 of title 17, United 

13 States Code. 

14 SEC. 107. EXPEDITED CONSIDERATION OF VOLUNTARY 

15 AGREEMENTS TO PROVIDE SATELLITE SEC16 ONDARY TRANSMISSIONS TO LOCAL MAR17 KETS. 

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

19 by adding at the end the following: 

20 ‘‘(f) EXPEDITED CONSIDERATION BY JUSTICE DE21 PARTMENT OF VOLUNTARY AGREEMENTS TO PROVIDE SAT22 ELLITE SECONDARY TRANSMISSIONS TO LOCAL MAR23 KETS.— 

24 ‘‘(1) IN GENERAL.—In a case in which no sat25 ellite carrier makes available, to subscribers located in 
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1 a local market, as defined in section 122(j)(2), the 

2 secondary transmission into that market of a pri3 mary transmission of one or more television broadcast 

4 stations licensed by the Federal Communications 

5 Commission, and two or more satellite carriers re6 quest a business review letter in accordance with sec7 tion 50.6 of title 28, Code of Federal Regulations (as 

8 in effect on July 7, 2004), in order to assess the legal9 ity under the antitrust laws of proposed business con10 duct to make or carry out an agreement to provide 

11 such secondary transmission into such local market, 

12 the appropriate official of the Department of Justice 

13 shall respond to the request no later than 90 days 

14 after the date on which the request is received. 

15 ‘‘(2) DEFINITION.—For purposes of this sub16 section, the term ‘antitrust laws’— 

17 ‘‘(A) has the meaning given that term in 

18 subsection (a) of the first section of the Clayton 

19 Act (15 U.S.C. 12(a)), except that such term in20 cludes section 5 of the Federal Trade Commis21 sion Act (15 U.S.C. 45) to the extent such section 

22 5 applies to unfair methods of competition; and 

23 ‘‘(B) includes any State law similar to the 

24 laws referred to in paragraph (1).’’. 

Union Calendar No. 402 

108TH CONGRESS 

2D SESSION H. R. 4518 

[Report No. 108–660] 

A BILL 

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

SEPTEMBER 7, 2004 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union,