Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Satellite Home Viewer
Act of 1994’’.
SEC. 2. STATUTORY LICENSE FOR SATELLITE CARRIERS.
Section 119 of title 17, United States Code, is amended
as follows:
(1) Subsection (a)(2)(C) is amended—
(A) by striking ‘‘90 days after the effective
date of the Satellite Home Viewer Act of 1988,
or’’;
(B) by striking ‘‘whichever is later,’’;
(C) by inserting ‘‘name and’’ after ‘‘identi-
fying (by’’ each place it appears; and
(D) by striking ‘‘, on or after the effective
date of the Satellite Home Viewer Act of 1988,’’.
(2) Subsection (a)(5) is amended by adding at
the end the following:
‘‘(D) BURDEN OF PROOF.—In any action
brought under this paragraph, the satellite car-
rier shall have the burden of proving that its sec-
ondary transmission of a primary transmission
by a network station is for private home viewing
to an unserved household.’’.
(3) Subsection (b)(1)(B) is amended—
(A) in clause (i) by striking ‘‘12 cents’’ and
inserting ‘‘17.5 cents per subscriber in the case
of superstations not subject to syndicated exclu-
sivity under the regulations of the Federal Com-
munications Commission, and 14 cents per sub-
scriber in the case of superstations subject to
such syndicated exclusivity’’; and
(B) in clause (ii) by striking ‘‘3’’ and in-
serting ‘‘6’’;
(4) Subsection (c) is amended—
(A) in paragraph (1) by striking ‘‘December
31, 1992,’’;
(B) in paragraph (2)—
(i) in subparagraph (A) by striking
‘‘July 1, 1991’’ and inserting ‘‘January 1,
1996’’; and
(ii) in subparagraph (D) by striking
‘‘December 31, 1994’’ and inserting ‘‘De-
cember 31, 1999, or in accordance with the
terms of the agreement, whichever is later’’;
(C) in paragraph (3)—
(i) in subparagraph (A) by striking
‘‘December 31, 1991’’ and inserting ‘‘July
1, 1996’’;
(ii) by amending subparagraph (D) to
read as follows:
‘‘(D) ESTABLISHMENT
OF
FAIR
MARKET
RATES.—In determining royalty fees under this
paragraph, the Arbitration Panel shall establish
a rate, for the secondary transmission of network
stations and superstations, that reflects the fair
market value of such secondary transmissions.
The Arbitration Panel shall base its decision
upon economic, competitive, and programming
information presented by the parties, and shall
take into account the competitive environment in
which such programming is distributed.’’;
(iii) in subparagraph (E) by striking
‘‘60’’ and inserting ‘‘180’’; and
(iv) in subparagraph (G) by striking
‘‘, or until December 31, 1994’’.
(5) Subsection (a) is amended—
(A) in paragraph (5)(C) by striking ‘‘the
Satellite Home Viewer Act of 1988’’ and insert-
ing ‘‘this section’’; and
(B) by adding at the end the following:
‘‘(8) TRANSITIONAL
SIGNAL
INTENSITY
MEAS-
UREMENT PROCEDURES.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (C), upon a challenge by a network station
regarding whether a subscriber is an unserved
household within the predicted Grade B Contour
of the station, the satellite carrier shall, within
60 days after the receipt of the challenge—
‘‘(i) terminate service to that household
of the signal that is the subject of the chal-
lenge, and within 30 days thereafter notify
the network station that made the challenge
that service to that household has been ter-
minated; or
‘‘(ii) conduct a measurement of the sig-
nal intensity of the subscriber’s household to
determine whether the household is an
unserved household.
‘‘(B) EFFECT
OF
MEASUREMENT.—If the
satellite carrier conducts a signal intensity
measurement under subparagraph (A) and the
measurement indicates that—
‘‘(i) the household is not an unserved
household, the satellite carrier shall, within
60 days after the measurement is conducted,
terminate the service to that household of
the signal that is the subject of the chal-
lenge, and within 30 days thereafter notify
the network station that made the challenge
that service to that household has been ter-
minated; or
‘‘(ii) the household is an unserved
household, the station challenging the service
shall reimburse the satellite carrier for the
costs of the signal measurement within 60
days after receipt of the measurement re-
sults and a statement of the costs of the
measurement.
‘‘(C) LIMITATION ON MEASUREMENTS.—(i)
Notwithstanding subparagraph (A), a satellite
carrier may not be required to conduct signal in-
tensity measurements during any calendar year
in excess of 5 percent of the number of subscrib-
ers within the network station’s local market
that have subscribed to the service as of the effec-
tive date of the Satellite Home Viewer Act of
1994.
‘‘(ii) If a network station challenges whether
a subscriber is an unserved household in excess
of 5 percent of the subscribers within the net-
work’s station local market within a calendar
year, subparagraph (A) shall not apply to chal-
lenges in excess of such 5 percent, but the station
may conduct its own signal intensity measure-
ment of the subscriber’s household. If such meas-
urement indicates that the household is not an
unserved household, the carrier shall, within 60
days after receipt of the measurement, terminate
service to the household of the signal that is the
subject of the challenge and within 30 days there-
after notify the network station that made the
challenge that service has been terminated. The
carrier shall also, within 60 days after receipt of
the measurement and a statement of the costs of
the measurement, reimburse the network station
for the cost it incurred in conducting the meas-
urement.
‘‘(D) OUTSIDE THE PREDICTED GRADE B
CONTOUR.—(i) If a network station challenges
whether a subscriber is an unserved household
outside the predicted Grade B Contour of the sta-
tion, the station may conduct a measurement of
the signal intensity of the subscriber’s household
to determine whether the household is an
unserved household.
‘‘(ii) If the network station conducts a sig-
nal intensity measurement under clause (i) and
the measurement indicates that—
‘‘(I) the household is not an unserved
household, the station shall forward the re-
sults to the satellite carrier who shall, with-
in 60 days after receipt of the measurement,
terminate the service to the household of the
signal that is the subject of the challenge,
and shall reimburse the station for the costs
of the measurement within 60 days after re-
ceipt of the measurement results and a
statement of such costs; or
‘‘(II) the household is an unserved
household, the station shall pay the costs of
the measurement.
‘‘(9) LOSER PAYS FOR SIGNAL INTENSITY MEAS-
UREMENT; RECOVERY OF MEASUREMENT COSTS IN A
CIVIL ACTION.—In any civil action filed relating to
the eligibility of subscribing households as unserved
households—
‘‘(A) a network station challenging such eli-
gibility shall reimburse the satellite carrier for
any signal intensity measurement that is con-
ducted by that carrier in response to a challenge
by the network station and that establishes the
household is an unserved household; and
‘‘(B) a satellite carrier shall reimburse the
network station challenging such eligibility for
any signal intensity measurement that is con-
ducted by that station and that establishes the
household is not an unserved household.
‘‘(10) INABILITY TO CONDUCT MEASUREMENT.—
If a network station makes a reasonable attempt to
conduct a site measurement of its signal at a sub-
scriber’s household and is denied access for the pur-
pose of conducting the measurement, the satellite car-
rier shall within 60 days notice thereof, terminate
service of the station’s network to that household.’’.
(6) Subsection (d) is amended—
(A) by amending paragraph (2) to read as
follows:
‘‘(2) NETWORK
STATION.—The term ‘network
station’ means—
‘‘(A) a television broadcast station, includ-
ing any translator station or terrestrial satellite
station that rebroadcasts all or substantially all
of the programming broadcast by a network sta-
tion, that is owned or operated by, or affiliated
with, one or more of the television networks in
the United States which offer an interconnected
program service on a regular basis for 15 or
more hours per week to at least 25 of its affili-
ated television licensees in 10 or more States; or
‘‘(B) a noncommercial educational broad-
cast station (as defined in section 397 of the
Communications Act of 1934).’’;
(B) in paragraph (6) by inserting ‘‘and op-
erates in the Fixed-Satellite Service under part
25 of title 47 of the Code of Federal Regulations
or the Direct Broadcast Satellite Service under
part 100 of title 47 of the Code of Federal Regu-
lations’’ after ‘‘Commission’’; and
(C) by adding at the end the following:
‘‘(11) LOCAL MARKET.—The term ‘local market’
means the area encompassed within a network sta-
tion’s predicted Grade B contour as that contour is
defined by the Federal Communications Commis-
sion.’’.
SEC. 3. DEFINITIONS.
(a) CABLE SYSTEM.—Section 111(f) of title 17, United
States Code, is amended in the paragraph relating to the
definition of ‘‘cable system’’ by inserting ‘‘microwave,’’ after
‘‘wires, cables,’’.
(b) LOCAL SERVICE AREA.—Section 111(f) of title 17,
United States Code, is amended in the paragraph relating
to the definition of ‘‘local service area of a primary trans-
mitter’’ by inserting after ‘‘April 15, 1976,’’ the following:
‘‘or such station’s television market as defined in section
76.55(e) of title 47, Code of Federal Regulations (as in effect
on September 18, 1993), or any modifications to such tele-
vision market made, on or after September 18, 1993, pursu-
ant to section 76.55(e) or 76.59 of title 47 of the Code of
Federal Regulations,’’.
SEC. 4. TERMINATION.
(a) EXPIRATION OF AMENDMENTS.—Section 119 of
title 17, United States Code, as amended by section 2 of
this Act, ceases to be effective on December 31, 1999.
(b) CONFORMING AMENDMENT.—Section 207 of the
Satellite Home Viewer Act of 1988 (17 U.S.C. 119 note)
is repealed.
SEC. 5. EFFECTIVE DATE.
(a) IN GENERAL.—Except as provided in subsections
(b) and (d), this Act and the amendments made by this
Act take effect on the date of the enactment of this Act.
(b) BURDEN OF PROOF PROVISIONS.—The provisions
of section 119(a)(5)(D) of title 17, United States Code (as
added by section 2(2) of this Act) relating to the burden
of proof of satellite carriers, shall take effect on January