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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3570 Reported in House (RH)]

                                                 Union Calendar No. 182
111th CONGRESS
  1st Session
                                H. R. 3570

                          [Report No. 111-319]

  To amend title 17, United States Code, to reauthorize the satellite 
    statutory license, to conform the satellite and cable statutory 
     licenses to all-digital transmissions, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           September 15, 2009

 Mr. Conyers (for himself, Mr. Boucher, Ms. Wasserman Schultz, and Mr. 
 Johnson of Georgia) introduced the following bill; which was referred 
                   to the Committee on the Judiciary

                            October 28, 2009

 Reported with technical amendments, committed to the Committee of the 
    Whole House on the State of the Union, and ordered to be printed
  [Omit the part struck through and insert the part printed in italic]

_______________________________________________________________________

                                 A BILL

 
  To amend title 17, United States Code, to reauthorize the satellite 
    statutory license, to conform the satellite and cable statutory 
     licenses to all-digital transmissions, and for other purposes.

 

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Satellite Home Viewer Update and 
Reauthorization Act of 2009''.

SEC. 2. REFERENCE.

    Except as otherwise provided, whenever in this Act an amendment is 
made to a section or other provision, the reference shall be considered 
to be made to such section or provision of title 17, United States 
Code.

SEC. 3. MODIFICATIONS TO STATUTORY LICENSE FOR SATELLITE CARRIERS.

    (a) Heading Renamed.--
            (1) In general.--The heading of section 119 is amended by 
        striking ``superstations and network stations for private home 
        viewing'' and inserting ``distant television programming by 
        satellite''.
            (2) Table of contents.--The table of contents for 
        <DELETED>chapter I</DELETED> chapter 1 is amended by striking 
        the item relating to section 119 and inserting the following:

``119. Limitations on exclusive rights: Secondary transmissions of 
                            distant television programming by 
                            satellite.''.
    (b) Unserved Household Defined.--Section 119(d)(10) is amended--
            (1) by striking subparagraph (A) and inserting the 
        following:
                    ``(A) cannot receive, through the use of a 
                conventional, stationary, outdoor rooftop receiving 
                antenna, an over-the-air signal containing the primary 
                video or qualified multicast video of a primary network 
                station located in that household's local market and 
                affiliated with that network of--
                            ``(i) if the signal originates as an analog 
                        signal, Grade B intensity as defined by the 
                        Federal Communications Commission under section 
                        73.683(a) of title 47, Code of Federal 
                        Regulations, as in effect on January 1, 1999; 
                        or
                            ``(ii) if the signal originates as a 
                        digital signal, intensity defined in the values 
                        for digital television noise-limited service 
                        contour, as defined in regulations issued by 
                        the Federal Communications Commission under 
                        section 73.622(e) of title 47, Code of Federal 
                        Regulations, as such regulations may be amended 
                        from time to time;'';
            (2) in subparagraph (B)--
                    (A) by striking ``subsection (a)(14)'' and 
                inserting ``subsection (a)(13),''; and
                    (B) by striking ``Satellite Home Viewer Extension 
                and Reauthorization Act of 2004'' and inserting 
                ``Satellite Home Viewer Update and Reauthorization Act 
                of 2009'';
            (3) in subparagraph (D)--
                    (A) by striking ``(a)(12)'' and inserting 
                ``(a)(11)''; and
                    (B) by striking ``or'';
            (4) in subparagraph (E), by striking the period at the end 
        and inserting ``; or''; and
            (5) by adding at the end the following new subparagraph:
                    ``(F) is a subscriber who was lawfully receiving, 
                by reason of subparagraph (A) of this paragraph, as in 
                effect on the day before the date of the enactment of 
                the Satellite Home Viewer Update and Reauthorization 
                Act of 2009, secondary transmissions of the primary 
                transmission of a network station affiliated with that 
                network.''.
    (c) Filing Fee.--Section 119(b)(1) is amended--
            (1) in subparagraph (A), by striking ``and'' after the 
        semicolon at the end;
            (2) in subparagraph (B), by striking the period and 
        inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(C) a filing fee, as determined by the Register 
                of Copyrights pursuant to section 708(a).''.
    (d) Emergency Monitoring, Planning, or Responding.--Section 119(a) 
is amended by adding at the end the following:
            ``(17) Retransmission for emergency preparation, response, 
        or recovery.--
                    ``(A) Authority.--The secondary transmission by a 
                satellite carrier of a performance or display of a work 
                embodied in a primary transmission of a television 
                broadcast station is not an infringement of copyright 
                if such secondary transmission is made--
                            ``(i) to a Federal governmental body 
                        designated by the Secretary of Homeland 
                        Security or an organization established with 
                        the purpose of carrying out a system of 
                        national and international relief efforts and 
                        chartered under section 300101 of title 36;
                            ``(ii) to officers or employees of such 
                        body or such organization as a part of the 
                        official duties or employment of such officers 
                        or employees;
                            ``(iii) at the request of the Secretary of 
                        Homeland Security; and
                            ``(iv) for the sole purpose of preparing 
                        for, responding to, or recovering from an 
                        emergency described under subparagraph (B).
                    ``(B) Emergencies.--An emergency is described under 
                this subparagraph if the Secretary of Homeland Security 
                identifies such emergency as a major disaster, a 
                <DELETED>catastrophe</DELETED> catastrophic incident, 
                an act of terrorism, or a transportation security 
                incident.
                    ``(C) Regulations.--Not later than 6 months after 
                the date of the enactment of this paragraph, the 
                Secretary of Homeland Security shall issue regulations 
                to protect copyright owners by preventing the 
                unauthorized access to the secondary transmissions 
                described in subparagraph (A).
                    ``(D) Reports to congressional committees.--Not 
                later than one year after the date of the enactment of 
                this paragraph and by September 30 of each year 
                thereafter, the Secretary of Homeland Security shall 
                submit a report to the Committee on the Judiciary and 
                the Committee on Homeland Security of the House of 
                Representatives and the Committee on the Judiciary of 
                the Senate describing--
                            ``(i) the manner in which the authority 
                        granted under subparagraph (A) is being used; 
                        and
                            ``(ii) any additional legislative 
                        recommendations the Secretary may have.
                    ``(E) Definitions.--As used in this paragraph:
                            ``(i) Terrorism.--The term `terrorism' has 
                        the meaning given that term in section 2(16) of 
                        the Homeland Security Act of 2002 (6 U.S.C. 
                        101(16)).
                            ``(ii) Transportation security incident.--
                        The term `transportation security incident' has 
                        the meaning given that term in section 70101 of 
                        title 46.
                            ``(iii) Catastrophic incident.--The term 
                        `catastrophic incident' means any natural 
                        disaster, act of terrorism, or other man-made 
                        disaster that results in extraordinary levels 
                        of casualties or damage or disruption severely 
                        affecting the population (including mass 
                        evacuations), infrastructure, the environment, 
                        the economy, national morale, or government 
                        functions in a geographic area.
                    ``(F) Effective date.--This paragraph shall take 
                effect with respect to a secondary transmission 
                described under subparagraph (A) that is made after the 
                end of the 30-day period beginning on the effective 
                date of the regulations issued by the Secretary of 
                Homeland Security under subparagraph (C).''.
    (e) License Provided for Certain Networks of Noncommercial 
Educational Broadcast Stations.--Section 119(a)(2)(C) is amended by 
adding at the end the following new clause:
                            ``(vi) Networks of noncommercial 
                        educational broadcast stations.--In the case of 
                        a system of three or more noncommercial 
                        educational broadcast stations licensed 
                        <DELETED>by a</DELETED> to a single State, 
                        public agency, or political, educational, or 
                        special purpose subdivision of a State, the 
                        statutory license provided for in subparagraph 
                        (A) shall apply to the secondary transmission 
                        of the primary transmission of such system to 
                        any subscriber in any county within such State, 
                        if such subscriber is located in a designated 
                        market area that is not otherwise eligible to 
                        receive the secondary transmission of the 
                        primary transmission of such system pursuant to 
                        section 122(a).''.
    (f) Deposit of Statements and Fees; Verification Procedures.--
Section 119(b) is amended--
            (1) by amending the subsection heading to read as follows: 
        ``(b) Deposit of Statements and Fees; Verification 
        Procedures.--'';
            (2) by redesignating paragraphs (2), (3), and (4) as 
        paragraphs (3), (4), and (5), respectively;
            (3) by inserting after paragraph (1) the following:
            ``(2) Verification of accounts and fee payments.--The 
        Register of Copyrights shall issue regulations to permit 
        interested parties to verify and audit the statements of 
        account and royalty fees submitted by satellite carriers under 
        this subsection.'';
        <DELETED>    (4) in paragraph (3), as redesignated, by striking 
        ``paragraph (4)'' and inserting ``paragraph (5)'';</DELETED>
            (4) in paragraph (3), as redesignated--
                    (A) by inserting ``(including the filing fee 
                specified in paragraph (1)(C))'' after ``shall receive 
                all fees''; and
                    (B) by striking ``paragraph (4)'' and inserting 
                ``paragraph (5)'';
            (5) in paragraph (4), as redesignated--
                    (A) by striking ``paragraph (2)'' and inserting 
                ``paragraph (3)''; and
                    (B) by striking ``paragraph (4)'' each place it 
                appears and inserting ``paragraph (5)''; and
            (6) in paragraph (5), as redesignated, by striking 
        ``paragraph (2)'' and inserting ``paragraph (3)''.
    (g) Adjustment of Royalty Fees.--Section 119(c) is amended as 
follows:
            (1) Paragraph (1) is amended--
                    (A) in the heading for such paragraph, by striking 
                ``analog'';
                    (B) in subparagraph (A)--
                            (i) by striking ``primary analog 
                        transmissions'' and inserting ``primary 
                        transmissions''; and
                            (ii) by striking ``July 1, 2004'' and 
                        inserting ``July 1, 2009'';
                    (C) in subparagraph (B)--
                            (i) by striking ``January 2, 2005, the 
                        Librarian of Congress'' and inserting ``January 
                        4, 2010, the Copyright Royalty Judges'';
                            (ii) by striking ``primary analog 
                        transmission'' and inserting ``primary 
                        transmissions''; and
                            (iii) by adding at the end the following: 
                        ``A separate fee shall be established for each 
                        stream of a multicast transmission included in 
                        the secondary transmission to the 
                        subscriber.'';
                    (D) in subparagraph (C), by striking ``Librarian of 
                Congress'' and inserting ``Copyright Royalty Judges'';
                    (E) in subparagraph (D)--
                            (i) in clause (i)--
                                    (I) by striking ``(i) Voluntary 
                                agreements'' and inserting the 
                                following:
                            ``(i) Voluntary agreements; filing.--
                        Voluntary agreements''; and
                                    (II) by striking ``that a parties'' 
                                and inserting ``that are parties''; and
                            (ii) in clause (ii)--
                                    (I) by striking ``(ii)(I) Within'' 
                                and inserting the following:
                            ``(ii) Procedure for adoption of fees.--
                                    ``(I) Publication of notice.--
                                Within'';
                                    (II) in subclause (I), by striking 
                                ``an arbitration proceeding pursuant to 
                                subparagraph (E)'' and inserting ``a 
                                proceeding under subparagraph (F)'';
                                    (III) in subclause (II), by 
                                striking ``(II) Upon receiving a 
                                request under subclause (I), the 
                                Librarian of Congress'' and inserting 
                                the following:
                                    ``(II) Public notice of fees.--Upon 
                                receiving a request under subclause 
                                (I), the Copyright Royalty Judges''; 
                                and
                                    (IV) in subclause (III)--
                                            (aa) by striking ``(III) 
                                        The Librarian'' and inserting 
                                        the following:
                                    ``(III) Adoption of fees.--The 
                                Copyright Royalty Judges'';
                                            (bb) by striking ``an 
                                        arbitration proceeding'' and 
                                        inserting ``the proceeding 
                                        under subparagraph (F)''; and
                                            (cc) by striking ``the 
                                        arbitration proceeding'' and 
                                        inserting ``that proceeding'';
                    (F) in subparagraph (E)--
                            (i) by striking ``Copyright Office'' and 
                        inserting ``Copyright Royalty Judges''; and
                            (ii) by striking ``December 31, 2009'' and 
                        inserting ``December 31, 2014''; and
                    (G) in subparagraph (F)--
                            (i) in the heading, by striking 
                        ``compulsory arbitration'' and inserting 
                        ``<DELETED>Copyright</DELETED> copyright 
                        royalty judges proceeding'';
                            (ii) in clause (i)--
                                    (I) in the heading, by striking 
                                ``proceedings'' and inserting ``the 
                                proceeding'';
                                    (II) in the matter preceding 
                                subclause (I)--
                                            (aa) by striking ``May 1, 
                                        2005, the Librarian of 
                                        Congress'' and inserting ``May 
                                        3, 2010, the Copyright Royalty 
                                        Judges'';
                                            (bb) by striking 
                                        ``arbitration proceedings'' and 
                                        inserting ``a proceeding'';
                                            (cc) by striking ``fee to 
                                        be paid'' and inserting ``fees 
                                        to be paid'';
                                            (dd) by striking ``primary 
                                        analog transmission'' and 
                                        inserting ``the primary 
                                        transmissions''; and
                                            (ee) by striking 
                                        ``distributors'' and inserting 
                                        ``distributors--'';
                                    (III) in subclause (II)--
                                            (aa) by striking 
                                        ``Librarian of Congress'' and 
                                        inserting ``Copyright Royalty 
                                        Judges''; and
                                            (bb) by striking 
                                        ``arbitration''; and
                                    (IV) by amending the last sentence 
                                to read as follows: ``Such proceeding 
                                shall be conducted under chapter 8.'';
                            (iii) in clause (ii), by amending the 
                        matter preceding subclause (I) to read as 
                        follows:
                            ``(ii) Establishment of royalty fees.--In 
                        determining royalty fees under this 
                        subparagraph, the Copyright Royalty Judges 
                        shall establish fees for the secondary 
                        transmissions of the primary transmissions of 
                        network stations and non-network stations that 
                        most clearly represent the fair market value of 
                        secondary transmissions, except that the 
                        Copyright Royalty Judges shall adjust royalty 
                        fees to account for the obligations of the 
                        parties under any applicable voluntary 
                        agreement filed with the Copyright Royalty 
                        Judges in accordance with subparagraph (D). In 
                        determining the fair market value, the Judges 
                        shall base their decision on economic, 
                        competitive, and programming information 
                        presented by the parties, including--'';
                            (iv) by amending clause (iii) to read as 
                        follows:
                            ``(iii) Effective date for decision of 
                        copyright royalty judges.--The obligation to 
                        pay the royalty fees established under a 
                        determination that is made by the Copyright 
                        Royalty Judges in a proceeding under this 
                        paragraph shall be effective as of January 1, 
                        2010.''; and
                            (v) in clause (iv)--
                                    (I) in the heading, by striking 
                                ``fee'' and inserting ``fees''; and
                                    (II) by striking ``fee'' and 
                                inserting ``fees''.
            (2) Paragraph (2) is amended to read as follows:
            ``(2) Annual royalty fee adjustment.--Effective January 1 
        of each year, the royalty fee payable under subsection 
        (b)(1)(B) for the secondary transmission of the primary 
        transmissions of network stations and non-network stations 
        shall be adjusted by the Copyright Royalty Judges to reflect 
        any changes occurring in the cost of living as determined by 
        the most recent Consumer Price Index (for all consumers and for 
        all items) published by the Secretary of Labor before December 
        1 of the preceding year. Notification of the adjusted fees 
        shall be published in the Federal Register at least 25 days 
        before January 1.''.
    (h) Definitions.--
            (1) Subscriber.--Section 119(d)(8) is amended to read as 
        follows:
            ``(8) Subscriber.--The term `subscriber' means a person or 
        entity that receives a secondary transmission service from a 
        satellite carrier and pays a fee for the service, directly or 
        indirectly, to the satellite carrier or to a distributor.''.
            (2) Low power television station.--Section 119(d)(12) is 
        amended by striking ``low power television as'' and inserting 
        ``low power TV station as''.
            (3) Local market.--Section 119(d)(11) is amended to read as 
        follows:
            ``(11) Local market.--The term `local market' has the 
        meaning given such term under section 122(j).''.
            (4) Noncommercial educational broadcast station.--Section 
        119(d) is amended--
                    (A) in paragraph (2)(B), by striking ``(as defined 
                in section 397 of the Communications Act of 1934)''; 
                and
                    (B) by adding at the end the following:
            ``(14) Noncommercial educational broadcast station.--The 
        term `noncommercial educational broadcast station' means a 
        television broadcast station that--
                    ``(A) under the rules and regulations of the 
                Federal Communications Commission in effect on November 
                2, 1978, is eligible to be licensed by the Federal 
                Communications Commission as a noncommercial 
                educational television broadcast station and is owned 
                and operated by a public agency or nonprofit private 
                foundation, corporation, or association; or
                    ``(B) is owned and operated by a municipality and 
                transmits only noncommercial programs for education 
                purposes.''.
            (5) Multicast transmission.--Section 119(d) is amended by 
        adding at the end the following:
            ``(15) Multicast transmission.--A `multicast transmission' 
        is a transmission by a television station that contains more 
        than one channel or digital stream, each containing its own 
        distinct programming.''.
            (6) Qualified multicast video.--Section 119(d), as amended 
        by paragraph (5), is further amended by adding at the end the 
        following new paragraph:
            ``(16) Qualified multicast video.--A `qualified multicast 
        video' is a video stream other than the primary video that, 
        with respect to a particular satellite carrier either--
                    ``(A) was carried by that satellite carrier on July 
                1, 2009, and remains affiliated with the same network; 
                or
                    ``(B) exists on January 1, 2013, and remains 
                affiliated with the same network.''.
            (7) Primary video.--Section 119(d), as amended by paragraph 
        (6), is further amended by adding at the end the following new 
        paragraph:
            ``(17) Primary video.--The term `primary video' means the 
        single programming stream and <DELETED>associated data</DELETED> 
        program-related material that received the highest aggregate 
        viewership ratings (as determined by Nielsen Media Research) of 
        all programming streams offered by that station as of the date 
        of enactment of the Satellite Home Viewer Update and 
        Reauthorization Act of 2009, offered by a television broadcast 
        station.''.
            (8) Clerical amendment.--Section 119(d) is amended in 
        paragraphs (1), (2), and (5) by striking ``which'' each place 
        it appears and inserting ``that''.
    (i) Superstation Redesignated as Non-network Station.--Section 119 
is amended--
            (1) by striking ``superstation'' each place it appears in a 
        heading and each place it appears in text and inserting ``non-
        network station''; and
            (2) by striking ``superstations'' each place it appears in 
        a heading and each place it appears in text and inserting 
        ``non-network stations''.
    (j) Low Power Television Stations.--Section 119(a)(15) is amended 
to read as follows:
            ``(15) Secondary transmissions of low power television 
        programming.--
                    ``(A) In general.--Notwithstanding paragraph 
                (2)(B), and subject to subparagraphs (B) through (D) of 
                this paragraph, the statutory license provided for in 
                paragraph (1) shall apply to the secondary transmission 
                by a satellite carrier of the primary transmission of 
                the programming of a non-network station that is 
                licensed as a low power television station, to a 
                subscriber who resides within the same designated 
                market area as the station that originates the 
                programming signal.
                    ``(B) No applicability to repeaters and 
                translators.--Secondary transmissions provided for in 
                subparagraph (A) shall not apply to any low power 
                television station that retransmits the programs and 
                signals of another television station for more than 2 
                hours each day.
                    ``(C) Royalty fees.--A satellite carrier whose 
                secondary transmission of the primary transmission of 
                the programming of a low power television station is 
                subject to statutory licensing under this section shall 
                be subject to royalty payments under subsection 
                (b)(1)(B) for any transmission to a subscriber outside 
                of the local market of the low power television 
                station.
                    ``(D) Limitation to subscribers taking local-into-
                local service.--Secondary transmissions provided for in 
                subparagraph (A) may be made by a satellite carrier 
                only to subscribers who receive secondary transmissions 
                of primary transmissions from that satellite carrier 
                pursuant to the statutory license under section 122.''.
    (k) Removal of Significantly Viewed Provision.--
            (1) Removal of provision.--Section 119(a), as amended by 
        subsections (d) and (j), is amended by striking paragraph (3) 
        and redesignating paragraphs (4) through (17) as paragraphs (3) 
        through (16), respectively.
            (2) Conforming amendments.--Section 119 is amended--
                    (A) in subsection (a)--
                            (i) in paragraph (1), by striking ``(5), 
                        (6), and (8)'' and inserting ``(4), (5), and 
                        (7)'';
                            (ii) in paragraph (2)--
                                    (I) in subparagraph (A), by 
                                striking ``paragraphs (5), (6), (7), 
                                and (8)'' and inserting ``paragraphs 
                                (4), (5), (6), and (7)'';
                                    (II) in subparagraph (B)(i), by 
                                striking the second sentence; and
                                    (III) in subparagraph (D), by 
                                striking clauses (i) and (ii) and 
                                inserting the following:
                            ``(i) Initial lists.--A satellite carrier 
                        that makes secondary transmissions of a primary 
                        transmission made by a network station pursuant 
                        to subparagraph (A) shall, not later than 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 and address, 
                        including street or rural route number, city, 
                        State, and 9-digit zip code) all subscribers to 
                        which the satellite carrier makes secondary 
                        transmissions of that primary transmission to 
                        subscribers in unserved households.
                            ``(ii) Monthly lists.--After the submission 
                        of the initial lists under clause (i), the 
                        satellite carrier shall, not later than the 
                        15th of each month, submit to the network a 
                        list identifying (by name and address, 
                        including street or rural route number, city, 
                        State, and 9-digit zip code) any persons who 
                        have been added or dropped as subscribers under 
                        clause (i) since the last submission under 
                        clause (i).''; and
                            (iii) in <DELETED>paragraph (3)(E)</DELETED> 
                        subparagraph (E) of paragraph (3) (as 
                        redesignated)--
                                    (I) by striking ``under paragraph 
                                (3) or''; and
                                    (II) by striking ``paragraph (12)'' 
                                and inserting ``paragraph (11)''; and
                    (B) in subsection (b)(1), by striking the final 
                sentence.
    (l) Modifications to Provisions for Secondary Transmissions by 
Satellite Carriers.--
            (1) Predictive model.--Section 119(a)(2)(B)(ii) is amended 
        by adding at the end the following:
                                    ``(III) Accurate predictive model 
                                with respect to digital signals.--
                                Notwithstanding subclause (I), in 
                                determining presumptively whether a 
                                person resides in an unserved household 
                                under subsection (d)(10)(A) with 
                                respect to digital signals, a court 
                                shall rely on a predictive model set 
                                forth by the Federal Communications 
                                Commission pursuant to a rulemaking as 
                                provided in section 339(c)(3) of the 
                                Communications Act of 1934 (47 U.S.C. 
                                339(c)(3)), as that model may be 
                                amended by the Commission over time 
                                under such section to increase the 
                                accuracy of that model. Until such time 
                                as the Commission sets forth such 
                                model, a court shall rely on the 
                                predictive model endorsed by the 
                                Commission in FCC 05-199, released 
                                December 9, 2005.''.
            (2) Modifications to statutory license where 
        retransmissions into local market available.--Section 119(a)(3) 
        (as redesignated) is amended--
                    (A) by striking ``analog'' each place it appears in 
                a heading and text; and
                    (B) by amending subparagraph (B) to read as 
                follows:
                    ``(B) Rules for other subscribers.--The statutory 
                license under paragraph (2) shall not apply to the 
                secondary transmission by a satellite carrier of a 
                primary transmission of a network station to a person 
                who--
                            ``(i) is not a subscriber lawfully 
                        receiving such secondary transmission as of the 
                        date of the enactment of the Satellite Home 
                        Viewer Update and Reauthorization Act of 2009; 
                        or
                            ``(ii) at the time such person seeks to 
                        subscribe to receive such secondary 
                        transmission, resides in a local market where 
                        the satellite carrier makes available to that 
                        person the secondary transmission of the 
                        primary transmission of a local network station 
                        affiliated with the same television network 
                        pursuant to the statutory license under section 
                        122, and such secondary transmission of such 
                        primary transmission can reach such person.'';
                    (C) by striking subparagraphs (C) and (D);
                    (D) by redesignating subparagraphs (E), (F), and 
                (G) as subparagraphs (C), (D), and (E), respectively;
                    (E) in subparagraph (D) (as redesignated), by 
                striking ``(C) or (D)'' and inserting ``(B)''; and
                    (F) in subparagraph (E) (as redesignated), by 
                inserting ``9-digit'' before ``zip code''.
            (3) Statutory damages for territorial restrictions.--
        Section 119(a)(6) (as redesignated) is amended--
                    (A) by striking ``$5'' and inserting ``$250''; and
                    (B) by striking ``$250,000'' each place it appears 
                and inserting ``$2,500,000''.
            (4) Clerical amendment.--Section 119(a)(2)(B)(iii)(II) is 
        amended by striking ``In this clause'' and inserting ``In this 
        clause,''.
    (m) Moratorium Extension.--Section 119(e) is amended by striking 
``2009'' and inserting ``2014''.
    (n) Clerical Amendments.--Section 119 is amended--
            (1) by striking ``of the Code of Federal Regulations'' each 
        place it appears and inserting ``, Code of Federal 
        Regulations''; and
            (2) in subsection (d)(6), by striking ``or the Direct'' and 
        inserting ``, or the Direct''.

SEC. 4. MODIFICATIONS TO STATUTORY LICENSE FOR SATELLITE CARRIERS IN 
              LOCAL MARKETS.

    (a) Heading Renamed.--
            (1) In general.--The heading of section 122 is amended by 
        striking ``by satellite carriers within local markets'' and 
        inserting ``of local television programming by satellite''.
            (2) Table of contents.--The table of contents for 
        <DELETED>chapter I</DELETED> chapter 1 is amended by striking 
        the item relating to section 122 and inserting the following:

``122. Limitations on exclusive rights: Secondary transmissions of 
                            local television programming by 
                            satellite.''.
    (b) Statutory License.--Section 122(a) is amended to read as 
follows:
    ``(a) Secondary Transmissions Into Local Markets.--
            ``(1) Secondary transmissions of television broadcast 
        stations within a local market.--A secondary transmission of a 
        performance or display of a work embodied in a primary 
        transmission of a television broadcast station into the 
        station's local market shall be subject to statutory licensing 
        under this section if--
                    ``(A) the secondary transmission is made by a 
                satellite carrier to the public;
                    ``(B) with regard to secondary transmissions, 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
                    ``(C) the satellite carrier makes a direct or 
                indirect charge for the secondary transmission to--
                            ``(i) each subscriber receiving the 
                        secondary transmission; or
                            ``(ii) a distributor that has contracted 
                        with the satellite carrier for direct or 
                        indirect delivery of the secondary transmission 
                        to the public.
            ``(2) Significantly viewed stations.--
                    ``(A) In general.--The statutory license under 
                paragraph (1) shall apply to the secondary transmission 
                of the primary transmission of a network station or a 
                non-network station to a subscriber who resides outside 
                the station's local market but within a community in 
                which the signal has been determined by the Federal 
                Communications Commission to be significantly viewed in 
                such community, pursuant to the rules, regulations, and 
                authorizations of the Federal Communications Commission 
                in effect on April 15, 1976, applicable to determining 
                with respect to a cable system whether signals are 
                significantly viewed in a community.
                    ``(B) Limitation.--Subparagraph (A) shall apply 
                only to secondary transmissions of the primary 
                transmissions of network stations or non-network 
                stations to subscribers who receive secondary 
                transmissions from a satellite carrier pursuant to the 
                statutory license under paragraph (1).
                    ``(C) Waiver.--A subscriber who is denied the 
                secondary transmission of the primary transmission of a 
                network station or a non-network station under 
                subparagraph (B) may request a waiver from such denial 
                by submitting a request, through the subscriber's 
                satellite carrier, to the network station or non-
                network station in the local market affiliated with the 
                same network or non-network where the subscriber is 
                located. The network station or non-network station 
                shall accept or reject the subscriber's request for a 
                waiver within 30 days after receipt of the request. If 
                the network station or non-network station fails to 
                accept or reject the subscriber's request for a waiver 
                within that 30-day period, that network station or non-
                network station shall be deemed to agree to the waiver 
                request.
            ``(3) Secondary transmission of low power programming.--
                    ``(A) In general.--Subject to subparagraphs (B) 
                through (D) of this paragraph, the statutory license 
                provided under paragraph (1) shall apply to the 
                secondary transmission by a satellite carrier of the 
                primary transmission of a network station or a non-
                network station that is licensed as a low power 
                television station, to a subscriber who resides within 
                the same local market as the station that originates 
                the transmission.
                    ``(B) No applicability to repeaters and 
                translators.--Secondary transmissions by a satellite 
                carrier provided for in subparagraph (A) shall not 
                apply to any low power television station that 
                retransmits the programs and signals of another 
                television station for more than 2 hours each day.
                    ``(C) Limitation to subscribers taking local-into-
                local service.--Secondary transmissions by a satellite 
                carrier provided for in subparagraph (A) may be made 
                only to subscribers who receive secondary transmissions 
                of primary transmissions from that satellite carrier 
                pursuant to the statutory license in paragraph (1), and 
                only in conformity with the requirements under section 
                340(b) of the Communications Act of 1934, as in effect 
                on the date of the enactment of the Satellite Home 
                Viewer Update and Reauthorization Act of 2009.
                    ``(D) No impact on other secondary transmissions 
                obligations.--A satellite carrier that makes secondary 
                transmissions of a primary transmission of a low power 
                television station under a statutory license provided 
                under this section is not required, by reason of such 
                secondary transmissions, to make any other secondary 
                transmissions.''.
    (c) Reporting Requirements.--Section 122(b) is amended--
            (1) in paragraph (1), by striking ``station a list'' and 
        all that follows through the end and inserting the following: 
        ``station--
                    ``(A) a list identifying (by name in alphabetical 
                order and street address, including county and 9-digit 
                zip code) all subscribers to which the satellite 
                carrier makes secondary transmissions of that primary 
                transmission under subsection (a); and
                    ``(B) a separate list, aggregated by designated 
                market area (by name and address, including street or 
                rural route number, city, State, and 9-digit zip code), 
                which shall indicate those subscribers being served 
                pursuant to subsection (a)(2), relating to 
                significantly viewed stations.''; and
            (2) in paragraph (2), by striking ``network a list'' and 
        all that follows through the end and inserting the following: 
        ``network--
                    ``(A) a list identifying (by name in alphabetical 
                order and street address, including county and 9-digit 
                zip code) any subscribers who have been added or 
                dropped as subscribers since the last submission under 
                this subsection; and
                    ``(B) a separate list, aggregated by designated 
                market area (by name and street address, including 
                street or rural route number, city, State, and 9-digit 
                zip code), identifying those subscribers whose service 
                pursuant to subsection (a)(2), relating to 
                significantly viewed stations, has been added or 
                dropped since the last submission under this 
                subsection.''.
    (d)  Violations for Territorial Restrictions.--
    (1) Modification to Statutory Damages.--Section 122(f) is amended--
            (A) in paragraph (1)(B), by striking ``$5'' and inserting 
        ``$250''; and
            (B) in paragraph (2), by striking ``$250,000'' each place 
        it appears and inserting ``$2,500,000''.
    (2) Conforming Amendment for Significantly Viewed Stations.--
Section 122 is amended--
            (A) in subsection (f), by striking ``section 119 or'' each 
        place it appears and inserting the following: ``section 119, 
        subject to statutory licensing by reason of subsection 
        (a)(2)(A), or subject to''; and
            (B) in subsection (g), by striking ``section 119 or'' and 
        inserting the following: ``section 119, subsection (a)(2)(A), 
        or''.
    (e) Definitions.--Section 122(j) is amended--
            (1) in paragraph (1), by striking ``which contracts'' and 
        inserting ``that contracts'';
            (2) by amending paragraph (2)(A) to read as follows:
                    ``(A) In general.--The term `local market' means--
                            ``(i) in the case of a television broadcast 
                        station that is not a low power television 
                        station, the designated market area in which 
                        such 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, any station that is 
                                licensed to a community within the same 
                                designated market area as the 
                                noncommercial educational television 
                                broadcast station; and
                            ``(ii) in the case of a low power 
                        television broadcast station, the area that is 
                        both--
                                    ``(I) within the designated market 
                                area in which such station is located; 
                                and
                                    ``(II) within the area within 35 
                                miles of the transmitter site of such 
                                station, except that in the case of 
                                such a station located in a standard 
                                metropolitan statistical area that has 
                                1 of the 50 largest populations of all 
                                standard metropolitan statistical areas 
                                (based on the 1980 decennial census of 
                                population taken by the Secretary of 
                                Commerce), the area within 20 miles of 
                                the transmitter site of such 
                                station.'';
            (3) in paragraph (3)--
                    (A) in the heading of such paragraph, by inserting 
                ``non-network station;'' after ``Network station;''; 
                and
                    (B) by inserting ```non-network station','' after 
                ```network station','';
            (4) by amending paragraph (4) to read as follows:
            ``(4) Subscriber.--The term `subscriber' means a person or 
        entity that receives a secondary transmission service from a 
        satellite carrier and pays a fee for the service, directly or 
        indirectly, to the satellite carrier or to a distributor.''; 
        and
            (5) by adding at the end the following:
            ``(6) Low power television station.--The term 
        <DELETED>``low power television station'' </DELETED>`low power 
        television station' means a low power TV station as defined 
        under section 74.701(f) of title 47, Code of Federal 
        Regulations, as in effect on June 1, 2004. For purposes of this 
        paragraph, the term <DELETED>``low power television station'' 
        </DELETED>`low power television station' includes a low power 
        television station that has been accorded primary status as a 
        Class A television licensee under section 73.6001(a) of title 
        47, Code of Federal Regulations.''.

SEC. 5. MODIFICATIONS TO CABLE SYSTEM SECONDARY TRANSMISSION RIGHTS 
              UNDER SECTION 111.

    (a) Heading Renamed.--
            (1) In general.--The heading of section 111 is amended by 
        inserting at the end the following: ``of television programming 
        by cable''.
            (2) Table of contents.--The table of contents for 
        <DELETED>chapter I</DELETED> chapter 1 is amended by striking 
        the item relating to section 111 and inserting the following:

``111. Limitations on exclusive rights: Secondary transmissions of 
                            television programming by cable.''.
    (b) National Emergency Monitoring Exemption.--Section 111 is 
amended--
            (1) in subsection (a)--
                    (A) in paragraph (4), by striking ``; or'' and 
                inserting ``or section 122;'';
                    (B) in paragraph (5), by striking the period and 
                inserting ``; or''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(6) the secondary transmission is made by a cable system 
        for emergency preparation, response, or recovery as described 
        under subsection (g).''; and
            (2) by adding at the end the following new subsection:
    ``(g) Retransmission for Emergency Preparation, Response, or 
Recovery.--
            ``(1) Authority.--For purposes of subsection (a)(6), a 
        secondary transmission by a cable system of a performance or 
        display of a work embodied in a primary transmission by a 
        television broadcast station is made for emergency preparation, 
        response, or recovery if such transmission is made--
                    ``(A) by a cable system to a Federal governmental 
                body designated by the Secretary of Homeland Security 
                or an organization established with the purpose of 
                carrying out a system of national and international 
                relief efforts and chartered under section 300101 of 
                title 36;
                    ``(B) to officers or employees of such body or such 
                organization as a part of the official duties or 
                employment of such officers or employees;
                    ``(C) at the request of the Secretary of Homeland 
                Security; and
                    ``(D) for the sole purpose of preparing for, 
                responding to, or recovering from an emergency 
                described under paragraph (2).
            ``(2) Emergencies.--An emergency is described under this 
        paragraph if the Secretary of Homeland Security identifies such 
        emergency as a major disaster, a <DELETED>catastrophe</DELETED> 
        catastrophic incident, an act of terrorism, or a transportation 
        security incident.
            ``(3) Regulations.--Not later than 6 months after the date 
        of the enactment of this subsection, the Secretary of Homeland 
        Security shall issue regulations to protect copyright owners by 
        preventing the unauthorized access to the secondary 
        transmissions described in paragraph (1).
            ``(4) Reports to congressional committees.--Not later than 
        one year after the date of the enactment of this subsection and 
        by September 30 of each year thereafter, the Secretary of 
        Homeland Security shall submit a report to the Committee on the 
        Judiciary and the Committee on Homeland Security of the House 
        of Representatives and the Committee on the Judiciary of the 
        Senate describing--
                    ``(A) the manner in which the authority granted 
                under paragraph (1) is being used; and
                    ``(B) any additional legislative recommendations 
                the Secretary may have.
            ``(5) Definitions.--As used in this subsection:
                    ``(A) Terrorism.--The term `terrorism' has the 
                meaning given that term in section 2(16) of the 
                Homeland Security Act of 2002 (6 U.S.C. 101(16)).
                    ``(B) Transportation security incident.--The term 
                `transportation security incident' has the meaning 
                given that term in section 70101 of title 46.
                    ``(C) Catastrophic incident.--The term 
                `catastrophic incident' means any natural disaster, act 
                of terrorism, or other man-made disaster that results 
                in extraordinary levels of casualties or damage or 
                disruption severely affecting the population (including 
                mass evacuations), infrastructure, the environment, the 
                economy, national morale, or government functions in a 
                geographic area.
            ``(6) Effective date.--This subsection shall take effect 
        with respect to a secondary transmission described under 
        paragraph (1) that is made after the end of the 30-day period 
        beginning on the effective date of the regulations issued by 
        the Secretary of Homeland Security under paragraph (3).''.
    (c) Statutory License for Secondary Transmissions by Cable 
Systems.--Section 111(d) is amended--
            (1) in paragraph (1)--
                    (A) in the matter preceding subparagraph (A)--
                            (i) by striking ``A cable system whose 
                        secondary'' and inserting the following: 
                        ``Statement of account and royalty fees.--A 
                        cable system whose secondary''; and
                            (ii) by striking ``by regulation--'' and 
                        inserting ``by regulation the following:'';
                    (B) in subparagraph (A)--
                            (i) by striking ``a statement of account'' 
                        and inserting ``A statement of account''; and
                            (ii) by striking ``; and'' and inserting a 
                        period; and
                    (C) by striking subparagraphs (B), (C), and (D), 
                and inserting the following:
                    ``(B) <DELETED>A total</DELETED> Except in the case 
                of a cable system whose royalty is specified in 
                subparagraph (E) or (F), a total royalty fee for the 
                period covered by the statement, computed on the basis 
                of specified percentages of the gross receipts from 
                subscribers to the cable service during such period for 
                the basic service of providing secondary transmissions 
                of primary broadcast transmitters, as follows:
                            ``(i) 1.064 percent of such gross receipts 
                        for the privilege of further transmitting, 
                        beyond the local service area of such primary 
                        transmitter, any non-network programming of a 
                        primary transmitter in whole or in part, such 
                        amount to be applied against the fee, if any, 
                        payable pursuant to clauses (ii) through (iv);
                            ``(ii) 1.064 percent of such gross receipts 
                        for the first distant signal equivalent;
                            ``(iii) 0.701 percent of such gross 
                        receipts for each of the second, third, and 
                        fourth distant signal equivalents; and
                            ``(iv) 0.330 percent of such gross receipts 
                        for the fifth distant signal equivalent and 
                        each distant signal equivalent thereafter.
                    ``(C) In computing amounts under clauses (ii) 
                through (iv) of subparagraph (B)--
                            ``(i) any fraction of a distant signal 
                        equivalent shall be computed at its fractional 
                        value;
                            ``(ii) in the case of any cable system 
                        located partly within and partly outside of the 
                        local service area of a primary transmitter, 
                        gross receipts shall be limited to those gross 
                        receipts derived from subscribers located 
                        outside of the local service area of such 
                        primary transmitter; and
                            ``(iii) if a cable system provides a 
                        secondary transmission of a primary transmitter 
                        to some but not all communities served by that 
                        cable system--
                                    ``(I) the gross receipts and the 
                                distant signal equivalent values for 
                                such secondary transmission shall be 
                                derived solely on the basis of the 
                                subscribers in those communities where 
                                the cable system provides such 
                                secondary transmission; and
                                    ``(II) the total royalty fee for 
                                the period paid by such system shall 
                                not be less than the royalty fee 
                                calculated under subparagraph (B)(i) 
                                multiplied by the gross receipts from 
                                all subscribers to the system.
                    ``(D) A cable system that, on a statement submitted 
                before the date of the enactment of the Satellite Home 
                Viewer Update and Reauthorization Act of 2009, computed 
                its royalty fee consistent with the methodology under 
                <DELETED>this paragraph</DELETED> subparagraph (C)(iii) 
                or that amends a statement filed before such date of 
                enactment to compute the royalty fee due using such 
                methodology shall not be subject to an action for 
                infringement, or eligible for any royalty refund or 
                offset, arising out of its use of such methodology on 
                such statement.
                    ``(E) If the actual gross receipts paid by 
                subscribers to a cable system for the period covered by 
                the statement for the basic service of providing 
                secondary transmissions of primary broadcast 
                transmitters total $263,800 or less--
                            ``(i) gross receipts of the cable system 
                        for the purpose of this paragraph shall be 
                        computed by subtracting from such actual gross 
                        receipts the amount by which $263,800 exceeds 
                        such actual gross receipts, except that in no 
                        case shall a cable system's gross receipts be 
                        reduced to less than $10,400; and
                            ``(ii) the royalty fee payable under this 
                        paragraph shall be 0.5 percent, regardless of 
                        the number of distant signal equivalents, if 
                        any.
                    ``(F) If the actual gross receipts paid by 
                subscribers to a cable system for the period covered by 
                the statement for the basic service of providing 
                secondary transmissions of primary broadcast 
                transmitters are more than $263,800 but less than 
                $527,600, the royalty fee payable under this paragraph 
                shall be--
                            ``(i) 0.5 percent of any gross receipts up 
                        to $263,800, regardless of the number of 
                        distant signal equivalents, if any; and
                            ``(ii) 1 percent of any gross receipts in 
                        excess of $263,800, but less than $527,600, 
                        regardless of the number of distant signal 
                        equivalents, if any.
                    ``(G) A filing fee, as determined by the Register 
                of Copyrights pursuant to section 708(a).'';
        <DELETED>    (2) in paragraph (2), by striking ``The Register 
        of Copyrights'' and inserting the following: ``Handling of 
        fees.--The Register of Copyrights'';</DELETED>
            (2) in paragraph (2)--
                    (A) by striking ``The Register of Copyrights'' and 
                inserting the following ``Handling of fees.--The 
                Register of Copyrights''; and
                    (B) by inserting ``(including the filing fee 
                specified in paragraph (1)(G))'' after ``shall 
                receive'';
            (3) in paragraph (3)--
                    (A) by striking ``The royalty fees'' and inserting 
                the following: ``Distribution of royalty fees to 
                copyright owners.--The royalty fees'';
                    (B) in subparagraph (A)--
                            (i) by striking ``any such'' and inserting 
                        ``Any such''; and
                            (ii) by striking ``; and'' and inserting a 
                        period;
                    (C) in subparagraph (B)--
                            (i) by striking ``any such'' and inserting 
                        ``Any such''; and
                            (ii) by striking <DELETED>``; and''</DELETED> 
                        the semicolon and inserting a period; and
                    (D) in subparagraph (C), by striking ``any such'' 
                and inserting ``Any such'';
            (4) in paragraph (4), by striking ``The royalty fees'' and 
        inserting the following: ``Procedures for royalty fee 
        distribution.--The royalty fees''; and
            (5) by adding at the end the following new paragraphs:
            ``(5) Verification of accounts and fee payments.--The 
        Register of Copyrights shall issue regulations to provide for 
        the confidential verification and audit of the information 
        reported on the semi-annual statement of account filed after 
        the date of the enactment of the Satellite Home Viewer Update 
        and Reauthorization Act of 2009. The regulations shall provide 
        for a single verification procedure, with respect to the semi-
        annual statements of account filed by a cable system, to be 
        conducted by a qualified independent auditor on behalf of all 
        copyright owners whose works were the subject of a secondary 
        transmission to the public by a cable system of a performance 
        or display of a work embodied in a primary transmission and for 
        a mechanism to review and cure defects identified by any such 
        audit.
            ``(6) Acceptance of additional deposits.--Any royalty fee 
        payments received by the Copyright Office from cable systems 
        for the secondary transmission of primary transmissions that 
        are in addition to the payments calculated and deposited in 
        accordance with this subsection shall be deemed to have been 
        deposited for the particular accounting period <DELETED>during</DELETED> 
        for which they are received and shall be distributed as 
        specified under this subsection.''.
    (d) Effective Date of New Royalty Fee Rates.--The royalty fee rates 
established in section 111(d)(1)(B) of title 17, United States Code, as 
amended by subsection (c)(1)(C) of this section, shall take effect 
commencing with the first accounting period occurring in 2010.
    <DELETED>(d)</DELETED> (e) Definitions.--Section 111(f) is 
amended--
            (1) in the first undesignated paragraph, by striking ``A 
        `primary transmission' is a transmission'' and inserting the 
        following:
            ``(1) Primary transmission.--A `primary transmission' is a 
        transmission, including a multicast transmission,'';
            (2) in the second undesignated paragraph--
                    (A) by striking ``A `secondary transmission''' and 
                inserting the following:
            ``(2) Secondary transmission.--A `secondary 
        transmission'''; and
                    (B) by striking ```cable system''' and inserting 
                ``cable system'';
            (3) in the third undesignated paragraph--
                    (A) by striking ``A `cable system''' and inserting 
                the following:
            ``(3) Cable system.--A `cable system'''; and
                    (B) by striking ``Territory, Trust Territory, or 
                Possession'' and inserting ``territory, trust 
                territory, or possession of the United States'';
            (4) in the fourth undesignated paragraph--
                    (A) in the first sentence, by striking ``The `local 
                service area of a primary transmitter''' and inserting 
                the following:
            ``(4) Local service area of a primary transmitter.--The 
        `local service area of a primary transmitter''';
                    (B) by striking ``76.59 of title 47 of the Code of 
                Federal Regulations'' and inserting the following: 
                ``76.59 of title 47, Code of Federal Regulations, or 
                within the noise-limited contour as defined in 
                73.622(e)(1) of title 47, Code of Federal 
                Regulations''; and
                    (C) by striking ``as defined by the rules and 
                regulations of the Federal Communications 
                Commission,'';
            (5) by amending the fifth undesignated paragraph to read as 
        follows:
            ``(5) Distant signal equivalent.--
                    ``(A) In general.--Except as provided under 
                subparagraph (B), a `distant signal equivalent'--
                            ``(i) is the value assigned to the 
                        secondary transmission of any non-network 
                        television programming carried by a cable 
                        system in whole or in part beyond the local 
                        service area of the primary transmitter of such 
                        programming; and
                            ``(ii) is computed by assigning a value of 
                        one to each channel or digital <DELETED>steam</DELETED> 
                        stream carrying independent television 
                        programming, and a value of one-quarter to each 
                        channel or digital stream carrying network 
                        television programming or noncommercial 
                        educational television programming transmitted 
                        by a television broadcast station pursuant to 
                        the rules, regulations, and authorizations of 
                        the Federal Communications Commission.
                    ``(B) Exceptions.--The values for independent, 
                network, and noncommercial educational programming 
                specified in subparagraph (A) are subject to the 
                following:
                            ``(i) Where the rules and regulations of 
                        the Federal Communications Commission require a 
                        cable system to omit the further transmission 
                        of a particular program and such rules and 
                        regulations also permit the substitution of 
                        another program embodying a performance or 
                        display of a work in place of the omitted 
                        transmission, or where such rules and 
                        regulations in effect on the date of enactment 
                        of the Copyright Act of 1976 permit a cable 
                        system, at its election, to effect such 
                        omission and substitution of a nonlive program 
                        or to carry additional programs not transmitted 
                        by primary transmitters within whose local 
                        service area the cable system is located, no 
                        value shall be assigned for the substituted or 
                        additional program.
                            ``(ii) Where the rules, regulations, or 
                        authorizations of the Federal Communications 
                        Commission in effect on the date of enactment 
                        of the Copyright Act of 1976 permit a cable 
                        system, at its election, to omit the further 
                        transmission of a particular program and such 
                        rules, regulations, or authorizations also 
                        permit the substitution of another program 
                        embodying a performance or display of a work in 
                        place of the omitted transmission, the value 
                        assigned for the substituted or additional 
                        program shall be, in the case of a live 
                        program, the value of one full distant signal 
                        equivalent multiplied by a fraction that has as 
                        its numerator the number of days in the year in 
                        which such substitution occurs and as its 
                        denominator the number of days in the year.
                            ``(iii) In the case of a channel or digital 
                        stream carried pursuant to the late-night or 
                        specialty programming rules of the Federal 
                        Communications Commission, or a channel or 
                        digital stream carried on a part-time basis 
                        where full-time carriage is not possible 
                        because the cable system lacks the activated 
                        channel capacity to retransmit on a full-time 
                        basis all signals that it is authorized to 
                        carry, the values for independent, network, and 
                        noncommercial educational programming set forth 
                        in subparagraph (A), as the case may be, shall 
                        be multiplied by a fraction that is equal to 
                        the ratio of the broadcast hours of such 
                        channel or digital stream carried by the cable 
                        system to the total broadcast hours of the 
                        channel or digital stream.'';
            (6) in the sixth undesignated paragraph--
                    (A) by striking ``A `network station''' and 
                inserting the following:
            ``(6) Network station.--
                    ``(A) In general.--A `network station'''; and
                    (B) by adding at the end the following:
                    ``(B) Network programming.--The term `network 
                television programming' means programming that is 
                transmitted by a network station.'';
            (7) by striking the seventh undesignated paragraph and 
        inserting the following:
            ``(7) Independent station.--
                    ``(A) In general.--An `independent station' is a 
                commercial television broadcast station other than a 
                network station.
                    ``(B) Independent programming.--The term 
                `independent television programming' means all 
                programming other than `network television programming' 
                or `noncommercial educational television 
                programming'.'';
            (8) by striking the eighth undesignated paragraph and 
        inserting the following:
            ``(8) Noncommercial educational station.--
                    ``(A) In general.--A `noncommercial educational 
                station' is a television or radio broadcast station 
                that--
                            ``(i) under the rules and regulations of 
                        the Federal Communications Commission in effect 
                        on November 2, 1978, is eligible to be licensed 
                        by the Federal Communications Commission as a 
                        noncommercial educational radio or television 
                        broadcast station and that is owned and 
                        operated by a public agency or nonprofit 
                        private foundation, corporation, or 
                        association; or
                            ``(ii) is owned and operated by a 
                        municipality and that transmits only 
                        noncommercial programs for education purposes.
                    ``(B) Noncommercial educational programming.--The 
                term `noncommercial educational television programming' 
                means programming that is transmitted by a 
                noncommercial educational station.''; and
            (9) by adding at the end the following:
            ``(9) Multicast transmission.--A `multicast transmission' 
        is a transmission by a television station that contains more 
        than one channel or digital stream, each containing its own 
        distinct programming.
            ``(10) Subscriber.--The term `subscriber' means a person or 
        entity that receives a secondary transmission service from a 
        cable system and pays a fee for the service, directly or 
        indirectly, to the cable system.''.
    <DELETED>(e)</DELETED> (f) Timing of Section 111 Proceedings.--
Section 804(b)(1) is amended by striking ``2005'' each place it appears 
and inserting ``2015''.
    <DELETED>(f)</DELETED> (g) Technical and Conforming Amendments.--
            (1) Corrections to fix level designations.--Section 111 is 
        amended--
                    (A) in subsections (a), (c), and (e), by striking 
                ``clause'' each place it appears and inserting 
                ``paragraph'';
                    (B) in <DELETED>subsection (c)</DELETED> subsection 
                (c)(1), by striking ``clauses'' and inserting 
                ``paragraphs''; and
                    (C) in subsection (e)(1)(F), by striking 
                ``subclause'' <DELETED>each place it appears</DELETED> 
                and inserting ``subparagraph''.
            (2) Conforming amendment to hyphenate nonnetwork.--Section 
        111 is amended by striking ``nonnetwork'' each place it appears 
        and inserting ``non-network''.
            (3) Previously undesignated paragraph.--Section 111(e)(1) 
        is amended by striking ``second paragraph of subsection (f)'' 
        and inserting ``subsection (f)(2)''.
            (4) Removal of superfluous ands.--Section 111(e) is 
        amended--
                    (A) in paragraph (1)(A), by striking ``and'' at the 
                end;
                    (B) in paragraph (1)(B), by striking ``and'' at the 
                end;
                    (C) in paragraph (1)(C), by striking ``and'' at the 
                end;
                    (D) in paragraph (1)(D), by striking ``and'' at the 
                end; and
                    (E) in paragraph (2)(A), by striking ``and'' at the 
                end;
            (5) Removal of variant forms references.--Section 111 is 
        amended--
                    (A) in subsection (e)(4), by striking ``, and each 
                of its variant forms,''; and
                    (B) in subsection (f), by striking ``and their 
                variant forms''.
            (6) Correction to territory reference.--Section 111(e)(2) 
        is amended in the matter preceding subparagraph (A) by striking 
        ``three territories'' and inserting ``five entities''.

SEC. 6. CERTAIN WAIVERS GRANTED TO PROVIDERS OF LOCAL-INTO-LOCAL 
              SERVICE FOR ALL DMAS.

    Section 119 is amended by adding at the end the following new 
subsection:
    ``(g) Certain Waivers Granted to Providers of Local-Into-Local 
Service to All DMAs.--
            ``(1) Injunction waiver.--A court that issued an injunction 
        pursuant to subsection (a)(7)(B) before the date of the 
        enactment of this subsection shall waive such injunction if the 
        court recognizes the entity against which the injunction was 
        issued as a qualified carrier.
            ``(2) Limited temporary waiver.--
                    ``(A) In general.--Upon a request made by a 
                satellite carrier, a court that issued an injunction 
                against such carrier under subsection (a)(7)(B) before 
                the date of the enactment of this subsection shall 
                waive such injunction with respect to the statutory 
                license provided under subsection (a)(2) to the extent 
                necessary to allow such carrier to retransmit distant 
                network signals to unserved households located in short 
                markets in which such carrier was not providing local 
                service pursuant to the license under section 122 as of 
                December 31, 2009.
                    ``(B) Expiration of temporary waiver.--A temporary 
                waiver of an injunction under subparagraph (A) shall 
                expire after the end of the 120-day period beginning on 
                the date such temporary waiver is made unless extended 
                for good cause by the court making the temporary 
                waiver.
                    ``(C) Failure to make good faith effort to provide 
                local-into-local service to all dmas.--
                            ``(i) Willful failure.--If the court making 
                        a temporary waiver under subparagraph (A) 
                        determines that the satellite carrier that made 
                        the request for such waiver has failed to make 
                        a good faith effort to provide local-into-local 
                        service to all DMAs and determines that such 
                        failure was willful, such failure--
                                    ``(I) is actionable as an act of 
                                infringement under section 501 and the 
                                court may in its discretion impose the 
                                remedies provided for in section 502 
                                through 506 and subsection (a)(6)(B) of 
                                this section; and
                                    ``(II) shall result in the 
                                termination of the waiver provided 
                                under subparagraph (A).
                            ``(ii) Nonwillful failure.--If the court 
                        making a temporary waiver under subparagraph 
                        (A) determines that the satellite carrier that 
                        made the request for such waiver has failed to 
                        make a good faith effort to provide local-into-
                        local service to all DMAs and determines that 
                        such failure was nonwillful, the court may in 
                        its discretion impose financial penalties that 
                        reflect--
                                    ``(I) the degree of control the 
                                carrier had over the circumstances that 
                                resulted in the failure;
                                    ``(II) the quality of the carrier's 
                                efforts to remedy the failure; and
                                    ``(III) the severity and duration 
                                of the service interruption.
                    ``(D) Single temporary waiver available.--An entity 
                may only receive one temporary waiver under this 
                paragraph.
                    ``(E) Short market defined.--For purposes of this 
                paragraph, the term `short market' means a local market 
                in which programming of one or more of the four most 
                widely viewed television networks nationwide as 
                measured on the date of enactment of this subsection is 
                not offered on the primary signal of any local 
                television broadcast station.
            ``(3) Establishment of qualified carrier recognition.--
                    ``(A) Statement of eligibility.--An entity seeking 
                to be recognized as a qualified carrier under this 
                subsection shall file a statement of eligibility with 
                the court that imposed the injunction. A statement of 
                eligibility must include--
                            ``(i) an affidavit that the entity is 
                        providing local-into-local service to all DMAs;
                            ``(ii) a request for a waiver of the 
                        injunction; and
                            ``(iii) a certification issued pursuant to 
                        section [X] of [E&C Act].
                    ``(B) Grant of recognition as a qualified 
                carrier.--Upon receipt of a statement of eligibility, 
                the court shall recognize the entity as a qualified 
                carrier and issue the waiver under paragraph (1).
                    ``(C) Voluntary termination.--At any time, an 
                entity recognized as a qualified carrier may file a 
                statement of voluntary termination with the court 
                certifying that it no longer wishes to be recognized as 
                a qualified carrier. Upon receipt of such statement, 
                the court shall reinstate the injunction waived under 
                paragraph (1).
                    ``(D) Loss of recognition prevents future 
                recognition.--No entity may be recognized as a 
                qualified carrier if such entity had previously been 
                recognized as a qualified carrier and subsequently lost 
                such recognition or voluntarily terminated such 
                recognition under subparagraph (C).
            ``(4) Qualified carrier obligations and compliance.--
                    ``(A) In general.--An entity recognized as a 
                qualified carrier shall continue to provide local-into-
                local service to all DMAs.
                    ``(B) Compliance determination.--Upon the motion of 
                an aggrieved television broadcast station, the court 
                recognizing an entity as a qualified carrier may make a 
                determination of whether the entity is providing local-
                into-local service to all DMAs.
                    ``(C) Pleading requirement.--In any motion brought 
                under subparagraph (B), the party making such motion 
                shall specify one or more designated market areas (as 
                such term is defined in section 122(j)(2)(C)) for which 
                the failure to provide service is being alleged, and, 
                for each such designated market area, shall plead with 
                particularity the circumstances of the alleged failure.
                    ``(D) Burden of proof.--In any proceeding to make a 
                determination under subparagraph (B), and with respect 
                to a designated market area for which failure to 
                provide service is alleged, the entity recognized as a 
                qualified carrier shall have the burden of proving that 
                the entity provided local-into-local service with a 
                good quality satellite signal to 90 percent of the 
                households in such designated market area at the time 
                and place alleged.
            ``(5) Failure to provide service.--
                    ``(A) Penalties.--If the court recognizing an 
                entity as a qualified carrier finds that such entity 
                has willfully failed to provide local-into-local 
                service to all DMAs, such finding shall result in the 
                loss of recognition of the entity as a qualified 
                carrier and the termination of the waiver provided 
                under paragraph (1), and the court may, in its 
                discretion--
                            ``(i) treat such failure as an act of 
                        infringement under section 501, and subject 
                        such infringement to the remedies provided for 
                        in sections 502 through 506 and subsection 
                        (a)(6)(B) of this section; and
                            ``(ii) impose a fine of no greater than 
                        $250,000.
                    ``(B) Exception for nonwillful violation.--If the 
                court determines that the failure to provide local-
                into-local service to all DMAs is nonwillful, the court 
                may in its discretion impose financial penalties for 
                noncompliance that reflect--
                            ``(i) the degree of control the entity had 
                        over the circumstances that resulted in the 
                        failure;
                            ``(ii) the quality of the entity's efforts 
                        to remedy the failure and restore service; and
                            ``(iii) the severity and duration of the 
                        service interruption.
            ``(6) Penalties for violations of license.--A court that 
        finds, under subsection (a)(6)(A), that an entity recognized as 
        a qualified carrier has willfully made a secondary transmission 
        of a primary transmission made by a network station and 
        embodying a performance or display of a work to a subscriber 
        who is not eligible to receive the transmission under this 
        section shall reinstate the injunction waived under paragraph 
        (1), and the court may order statutory damages of not to exceed 
        $2,500,000.
            ``(7) Local-into-local service to all dmas defined.--For 
        purposes of this subsection:
                    ``(A) In general.--An entity provides `local-into-
                local service to all DMAs' if the entity provides local 
                service in all designated market areas (as such term is 
                defined in section 122(j)(2)(C)) pursuant to the 
                license under section 122.
                    ``(B) Household coverage.--For purposes of 
                subparagraph (A), an entity that makes available local-
                into-local service with a good quality satellite signal 
                to 90 percent of the households in a designated market 
                area based on the most recent census data shall be 
                considered to be providing local service to such 
                designated market area.
                    ``(C) Good quality satellite signal defined.--The 
                term `good quality signal' has the meaning given such 
                term under section [X] of [E&C Act].''.

SEC. 7. TERMINATION OF LICENSE.

    Section 119, as amended by this Act, shall cease to be effective on 
December 31, 2014.
                                                 Union Calendar No. 182

111th CONGRESS

  1st Session

                               H. R. 3570

                          [Report No. 111-319]

_______________________________________________________________________

                                 A BILL

  To amend title 17, United States Code, to reauthorize the satellite 
    statutory license, to conform the satellite and cable statutory 
     licenses to all-digital transmissions, and for other purposes.

_______________________________________________________________________

                            October 28, 2009

 Reported with technical amendments, committed to the Committee of the 
    Whole House on the State of the Union, and ordered to be printed
```