192 
† HR 4213 EAS 
censing by reason of paragraph (2)(A), (3), or 
(4) of subsection (a), or subject to’’; and 
(B) in subsection (g), by striking ‘‘section 
119 or’’ and inserting the following: ‘‘section 
119, paragraph (2)(A), (3), or (4) of subsection 
(a), or’’. 
(f) DEFINITIONS.—Section 122(j) is amended— 
(1) in paragraph (1), by striking ‘‘which con-
tracts’’ and inserting ‘‘that contracts’’; 
(2) by redesignating paragraphs (4) and (5) as 
paragraphs (6) and (7), respectively; 
(3) in paragraph (3)— 
(A) by redesignating such paragraph as 
paragraph (4); 
(B) in the heading of such paragraph, by 
inserting ‘‘NON-NETWORK STATION;’’ after ‘‘NET-
WORK STATION;’’; and 
(C) by inserting ‘‘ ‘non-network station’,’’ 
after ‘‘ ‘network station’,’’; 
(4) by inserting after paragraph (2) the fol-
lowing: 
‘‘(3) LOW
POWER
TELEVISION
STATION.—The 
term ‘low power television station’ means a low power 
TV station as defined in section 74.701(f) of title 47, 
Code of Federal Regulations, as in effect on June 1,
193 
† HR 4213 EAS 
2004. For purposes of this paragraph, the term ‘low 
power television station’ includes a low power tele-
vision 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.’’; 
(5) by inserting after paragraph (4) (as redesig-
nated) the following: 
‘‘(5) NONCOMMERCIAL EDUCATIONAL BROADCAST 
STATION.—The 
term 
‘noncommercial 
educational 
broadcast station’ means a television broadcast sta-
tion that is a noncommercial educational broadcast 
station as defined in section 397 of the Communica-
tions Act of 1934, as in effect on the date of the enact-
ment of the Satellite Television Extension and Local-
ism Act of 2010.’’; and 
(6) by amending paragraph (6) (as redesignated) 
to read as follows: 
‘‘(6) SUBSCRIBER.—The term ‘subscriber’ means 
a person or entity that receives a secondary trans-
mission service from a satellite carrier and pays a fee 
for the service, directly or indirectly, to the satellite 
carrier or to a distributor.’’. 
SEC. 504. MODIFICATIONS TO CABLE SYSTEM SECONDARY 
TRANSMISSION RIGHTS UNDER SECTION 111. 
(a) HEADING RENAMED.—
194 
† HR 4213 EAS 
(1) IN GENERAL.—The heading of section 111 is 
amended by inserting at the end the following: ‘‘of 
broadcast programming by cable’’. 
(2) TABLE OF CONTENTS.—The table of contents 
for chapter 1 is amended by striking the item relating 
to section 111 and inserting the following: 
‘‘111. Limitations on exclusive rights: Secondary transmissions of broadcast pro-
gramming by cable.’’. 
(b) TECHNICAL AMENDMENT.—Section 111(a)(4) is 
amended by striking ‘‘; or’’ and inserting ‘‘or section 122;’’. 
(c) STATUTORY LICENSE
FOR SECONDARY TRANS-
MISSIONS BY CABLE SYSTEMS.—Section 111(d) is amend-
ed— 
(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.—Subject to paragraph (5), a cable 
system whose secondary’’; and 
(ii) by striking ‘‘by regulation—’’ and 
inserting ‘‘by regulation the following:’’; 
(B) in subparagraph (A)—
195 
† HR 4213 EAS 
(i) by striking ‘‘a statement of ac-
count’’ and inserting ‘‘A statement of ac-
count’’; and 
(ii) by striking ‘‘; and’’ and inserting 
a period; and 
(C) by striking subparagraphs (B), (C), and 
(D) and inserting the following: 
‘‘(B) Except in the case of a cable system 
whose royalty fee is specified in subparagraph 
(E) or (F), a total royalty fee payable to copy-
right owners pursuant to paragraph (3) 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 sec-
ondary transmissions of primary broadcast 
transmitters, as follows: 
‘‘(i) 1.064 percent of such gross receipts 
for the privilege of further transmitting, be-
yond 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);
196 
† HR 4213 EAS 
‘‘(ii) 1.064 percent of such gross re-
ceipts for the first distant signal equivalent; 
‘‘(iii) 0.701 percent of such gross re-
ceipts for each of the second, third, and 
fourth distant signal equivalents; and 
‘‘(iv) 0.330 percent of such gross re-
ceipts for the fifth distant signal equivalent 
and each distant signal equivalent there-
after. 
‘‘(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 frac-
tional value; 
‘‘(ii) in the case of any cable system lo-
cated partly within and partly outside of 
the local service area of a primary trans-
mitter, 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 sec-
ondary transmission of a primary trans-
mitter to some but not all communities 
served by that cable system—
197 
† HR 4213 EAS 
‘‘(I) the gross receipts and the dis-
tant signal equivalent values for such 
secondary transmission shall be de-
rived solely on the basis of the sub-
scribers 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 sub-
scribers to the system. 
‘‘(D) A cable system that, on a statement 
submitted before the date of the enactment of the 
Satellite Television Extension and Localism Act 
of 2010, computed its royalty fee consistent with 
the methodology under 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 ac-
tion for infringement, or eligible for any royalty 
refund or offset, arising out of its use of such 
methodology on such statement.
198 
† HR 4213 EAS 
‘‘(E) If the actual gross receipts paid by 
subscribers to a cable system for the period cov-
ered by the statement for the basic service of pro-
viding secondary transmissions of primary 
broadcast transmitters are $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 to copyright owners pursuant to 
paragraph (3) shall be 0.5 percent, regard-
less of the number of distant signal equiva-
lents, if any. 
‘‘(F) If the actual gross receipts paid by 
subscribers to a cable system for the period cov-
ered by the statement for the basic service of pro-
viding secondary transmissions of primary 
broadcast transmitters are more than $263,800 
but less than $527,600, the royalty fee payable
199 
† HR 4213 EAS 
under this paragraph to copyright owners pursu-
ant to paragraph (3) 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 Reg-
ister of Copyrights pursuant to section 708(a).’’; 
(2) in paragraph (2), in the first sentence— 
(A) by striking ‘‘The Register of Copy-
rights’’ 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 re-
ceive all fees’’; 
(3) in paragraph (3)— 
(A) by striking ‘‘The royalty fees’’ and in-
serting the following: ‘‘DISTRIBUTION OF ROY-
ALTY FEES TO COPYRIGHT OWNERS.—The roy-
alty fees’’; 
(B) in subparagraph (A)—
200 
† HR 4213 EAS 
(i) by striking ‘‘any such’’ and insert-
ing ‘‘Any such’’; and 
(ii) by striking ‘‘; and’’ and inserting 
a period; 
(C) in subparagraph (B)— 
(i) by striking ‘‘any such’’ and insert-
ing ‘‘Any such’’; and 
(ii) by striking the semicolon and in-
serting 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 para-
graphs: 
‘‘(5) 3.75 PERCENT RATE AND SYNDICATED EX-
CLUSIVITY
SURCHARGE
NOT
APPLICABLE
TO 
MULTICAST STREAMS.—The royalty rates specified in 
sections 256.2(c) and 256.2(d) of title 37, Code of 
Federal Regulations (commonly referred to as the 
‘3.75 percent rate’ and the ‘syndicated exclusivity sur-
charge’, respectively), as in effect on the date of the 
enactment of the Satellite Television Extension and 
Localism Act of 2010, as such rates may be adjusted,
201 
† HR 4213 EAS 
or such sections redesignated, thereafter by the Copy-
right Royalty Judges, shall not apply to the sec-
ondary transmission of a multicast stream. 
‘‘(6) VERIFICATION OF ACCOUNTS AND FEE PAY-
MENTS.—The Register of Copyrights shall issue regu-
lations to provide for the confidential verification by 
copyright owners whose works were embodied in the 
secondary transmissions of primary transmissions 
pursuant to this section of the information reported 
on the semiannual statements of account filed under 
this subsection on or after January 1, 2010, in order 
that the auditor designated under subparagraph (A) 
is able to confirm the correctness of the calculations 
and royalty payments reported therein. The regula-
tions shall— 
‘‘(A) establish procedures for the designation 
of a qualified independent auditor— 
‘‘(i) with exclusive authority to request 
verification of such a statement of account 
on behalf of all copyright owners whose 
works were the subject of secondary trans-
missions of primary transmissions by the 
cable system (that deposited the statement) 
during the accounting period covered by the 
statement; and
202 
† HR 4213 EAS 
‘‘(ii) who is not an officer, employee, 
or agent of any such copyright owner for 
any purpose other than such audit; 
‘‘(B) establish procedures for safeguarding 
all non-public financial and business informa-
tion provided under this paragraph; 
‘‘(C)(i) require a consultation period for the 
independent auditor to review its conclusions 
with a designee of the cable system; 
‘‘(ii) establish a mechanism for the cable 
system to remedy any errors identified in the 
auditor’s report and to cure any underpayment 
identified; and 
‘‘(iii) provide an opportunity to remedy 
any disputed facts or conclusions; 
‘‘(D) limit the frequency of requests for 
verification for a particular cable system and the 
number of audits that a multiple system oper-
ator can be required to undergo in a single year; 
and 
‘‘(E) permit requests for verification of a 
statement of account to be made only within 3 
years after the last day of the year in which the 
statement of account is filed.
203 
† HR 4213 EAS 
‘‘(7) ACCEPTANCE OF ADDITIONAL DEPOSITS.— 
Any royalty fee payments received by the Copyright 
Office from cable systems for the secondary trans-
mission of primary transmissions that are in addi-
tion to the payments calculated and deposited in ac-
cordance with this subsection shall be deemed to have 
been deposited for the particular accounting period 
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 com-
mencing with the first accounting period occurring in 2010. 
(e) DEFINITIONS.—Section 111(f) is amended— 
(1) by striking the first undesignated paragraph 
and inserting the following: 
‘‘(1) 
PRIMARY
TRANSMISSION.—A 
‘primary 
transmission’ is a transmission made to the public by 
a transmitting facility whose signals are being re-
ceived and further transmitted by a secondary trans-
mission service, regardless of where or when the per-
formance or display was first transmitted. In the case 
of a television broadcast station, the primary stream
204 
† HR 4213 EAS 
and any multicast streams transmitted by the station 
constitute primary transmissions.’’; 
(2) in the second undesignated paragraph— 
(A) by striking ‘‘A ‘secondary trans-
mission’ ’’ and inserting the following: 
‘‘(2) SECONDARY TRANSMISSION.—A ‘secondary 
transmission’ ’’; and 
(B) by striking ‘‘ ‘cable system’ ’’ and insert-
ing ‘‘cable system’’; 
(3) in the third undesignated paragraph— 
(A) by striking ‘‘A ‘cable system’ ’’ and in-
serting the following: 
‘‘(3) CABLE SYSTEM.—A ‘cable system’ ’’; and 
(B) by striking ‘‘Territory, Trust Territory, 
or Possession’’ and inserting ‘‘territory, trust ter-
ritory, or possession of the United States’’; 
(4) in the fourth undesignated paragraph, in the 
first sentence— 
(A) by striking ‘‘The ‘local service area of a 
primary transmitter’, in the case of a television 
broadcast station, comprises the area in which 
such station is entitled to insist’’ and inserting 
the following: 
‘‘(4) LOCAL SERVICE AREA OF A PRIMARY TRANS-
MITTER.—The ‘local service area of a primary trans-
205 
† HR 4213 EAS 
mitter’, in the case of both the primary stream and 
any multicast streams transmitted by a primary 
transmitter that is a television broadcast station, 
comprises the area where such primary transmitter 
could have insisted’’; 
(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 Com-
mission,’’; 
(5) by amending the fifth undesignated para-
graph to read as follows: 
‘‘(5) DISTANT SIGNAL EQUIVALENT.— 
‘‘(A) IN
GENERAL.—Except as provided 
under subparagraph (B), a ‘distant signal equiv-
alent’— 
‘‘(i) is the value assigned to the sec-
ondary transmission of any non-network 
television programming carried by a cable 
system in whole or in part beyond the local
206 
† HR 4213 EAS 
service area of the primary transmitter of 
such programming; and 
‘‘(ii) is computed by assigning a value 
of one to each primary stream and to each 
multicast stream (other than a simulcast) 
that is an independent station, and by as-
signing a value of one-quarter to each pri-
mary stream and to each multicast stream 
(other than a simulcast) that is a network 
station or a noncommercial educational sta-
tion. 
‘‘(B) EXCEPTIONS.—The values for inde-
pendent, network, and noncommercial edu-
cational stations 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 
the enactment of the Copyright Act of 1976
207 
† HR 4213 EAS 
permit a cable system, at its election, to ef-
fect such omission and substitution of a 
nonlive program or to carry additional pro-
grams not transmitted by primary trans-
mitters within whose local service area the 
cable system is located, no value shall be as-
signed for the substituted or additional pro-
gram. 
‘‘(ii) Where the rules, regulations, or 
authorizations of the Federal Communica-
tions Commission in effect on the date of the 
enactment of the Copyright Act of 1976 per-
mit a cable system, at its election, to omit 
the further transmission of a particular 
program and such rules, regulations, or au-
thorizations 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 sub-
stituted 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
209 
† HR 4213 EAS 
mary transmitter that is a television broad-
cast station in any community that is with-
in the local service area of the primary 
transmitter.’’; 
(6) by striking the sixth undesignated paragraph 
and inserting the following: 
‘‘(6) NETWORK STATION.— 
‘‘(A) TREATMENT OF PRIMARY STREAM.— 
The term ‘network station’ shall be applied to a 
primary stream of a television broadcast station 
that is owned or operated by, or affiliated with, 
one or more of the television networks in the 
United States providing nationwide trans-
missions, and that transmits a substantial part 
of the programming supplied by such networks 
for a substantial part of the primary stream’s 
typical broadcast day. 
‘‘(B) 
TREATMENT
OF
MULTICAST 
STREAMS.—The term ‘network station’ shall be 
applied to a multicast stream on which a tele-
vision broadcast station transmits all or substan-
tially all of the programming of an inter-
connected program service that—
210 
† HR 4213 EAS 
‘‘(i) is owned or operated by, or affili-
ated with, one or more of the television net-
works described in subparagraph (A); and 
‘‘(ii) offers programming on a regular 
basis for 15 or more hours per week to at 
least 25 of the affiliated television licensees 
of the interconnected program service in 10 
or more States.’’; 
(7) by striking the seventh undesignated para-
graph and inserting the following: 
‘‘(7) INDEPENDENT STATION.—The term ‘inde-
pendent station’ shall be applied to the primary 
stream or a multicast stream of a television broadcast 
station that is not a network station or a noncommer-
cial educational station.’’; 
(8) by striking the eighth undesignated para-
graph and inserting the following: 
‘‘(8) NONCOMMERCIAL EDUCATIONAL STATION.— 
The term ‘noncommercial educational station’ shall be 
applied to the primary stream or a multicast stream 
of a television broadcast station that is a noncommer-
cial educational broadcast station as defined in sec-
tion 397 of the Communications Act of 1934, as in 
effect on the date of the enactment of the Satellite Tel-
evision Extension and Localism Act of 2010.’’; and
211 
† HR 4213 EAS 
(9) by adding at the end the following: 
‘‘(9) PRIMARY
STREAM.—A ‘primary stream’ 
is— 
‘‘(A) the single digital stream of program-
ming that, before June 12, 2009, was substan-
tially duplicating the programming transmitted 
by the television broadcast station as an analog 
signal; or 
‘‘(B) if there is no stream described in sub-
paragraph (A), then the single digital stream of 
programming transmitted by the television 
broadcast station for the longest period of time. 
‘‘(10) 
PRIMARY
TRANSMITTER.—A 
‘primary 
transmitter’ is a television or radio broadcast station 
licensed by the Federal Communications Commission, 
or by an appropriate governmental authority of Can-
ada or Mexico, that makes primary transmissions to 
the public. 
‘‘(11) 
MULTICAST
STREAM.—A 
‘multicast 
stream’ is a digital stream of programming that is 
transmitted by a television broadcast station and is 
not the station’s primary stream. 
‘‘(12) SIMULCAST.—A ‘simulcast’ is a multicast 
stream of a television broadcast station that dupli-
212 
† HR 4213 EAS 
cates the programming transmitted by the primary 
stream or another multicast stream of such station. 
‘‘(13) SUBSCRIBER; SUBSCRIBE.— 
‘‘(A) SUBSCRIBER.—The term ‘subscriber’ 
means a person or entity that receives a sec-
ondary transmission service from a cable system 
and pays a fee for the service, directly or indi-
rectly, to the cable system. 
‘‘(B) SUBSCRIBE.—The term ‘subscribe’ 
means to elect to become a subscriber.’’. 
(f) TIMING OF SECTION 111 PROCEEDINGS.—Section 
804(b)(1) is amended by striking ‘‘2005’’ each place it ap-
pears and inserting ‘‘2015’’. 
(g) TECHNICAL AND CONFORMING AMENDMENTS.— 
(1) CORRECTIONS
TO
FIX
LEVEL
DESIGNA-
TIONS.—Section 111 is amended— 
(A) in subsections (a), (c), and (e), by strik-
ing ‘‘clause’’ each place it appears and inserting 
‘‘paragraph’’; 
(B) in subsection (c)(1), by striking 
‘‘clauses’’ and inserting ‘‘paragraphs’’; and 
(C) in subsection (e)(1)(F), by striking 
‘‘subclause’’ and inserting ‘‘subparagraph’’. 
(2) CONFORMING
AMENDMENT
TO
HYPHENATE 
NONNETWORK.—Section 111 is amended by striking
213 
† HR 4213 EAS 
‘‘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 ‘‘sub-
section (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
REF-
ERENCES.—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’’.
214 
† HR 4213 EAS 
(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’’. 
(h) EFFECTIVE DATE WITH RESPECT TO MULTICAST 
STREAMS.— 
(1) IN GENERAL.—Subject to paragraphs (2) and 
(3), the amendments made by this section, to the ex-
tent such amendments assign a distant signal equiva-
lent value to the secondary transmission of the 
multicast stream of a primary transmitter, shall take 
effect on the date of the enactment of this Act. 
(2) DELAYED APPLICABILITY.— 
(A) SECONDARY
TRANSMISSIONS
OF
A 
MULTICAST STREAM BEYOND THE LOCAL SERV-
ICE AREA OF ITS PRIMARY TRANSMITTER BE-
FORE 2010 ACT.—In any case in which a cable 
system was making secondary transmissions of a 
multicast stream beyond the local service area of 
its primary transmitter before the date of the en-
actment of this Act, a distant signal equivalent 
value (referred to in paragraph (1)) shall not be 
assigned to secondary transmissions of such 
multicast stream that are made on or before 
June 30, 2010.
215 
† HR 4213 EAS 
(B) MULTICAST STREAMS SUBJECT TO PRE-
EXISTING WRITTEN AGREEMENTS FOR THE SEC-
ONDARY TRANSMISSION OF SUCH STREAMS.—In 
any case in which the secondary transmission of 
a multicast stream of a primary transmitter is 
the subject of a written agreement entered into 
on or before June 30, 2009, between a cable sys-
tem or an association representing the cable sys-
tem and a primary transmitter or an associa-
tion representing the primary transmitter, a dis-
tant signal equivalent value (referred to in para-
graph (1)) shall not be assigned to secondary 
transmissions of such multicast stream beyond 
the local service area of its primary transmitter 
that are made on or before the date on which 
such written agreement expires. 
(C) NO REFUNDS OR OFFSETS FOR PRIOR 
STATEMENTS OF ACCOUNT.—A cable system that 
has reported secondary transmissions of a 
multicast stream beyond the local service area of 
its primary transmitter on a statement of ac-
count deposited under section 111 of title 17, 
United States Code, before the date of the enact-
ment of this Act shall not be entitled to any re-
fund, or offset, of royalty fees paid on account of
216 
† HR 4213 EAS 
such secondary transmissions of such multicast 
stream. 
(3) DEFINITIONS.—In this subsection, the terms 
‘‘cable system’’, ‘‘secondary transmission’’, ‘‘multicast 
stream’’, and ‘‘local service area of a primary trans-
mitter’’ have the meanings given those terms in sec-
tion 111(f) of title 17, United States Code, as amend-
ed by this section. 
SEC. 505. CERTAIN WAIVERS GRANTED TO PROVIDERS OF 
LOCAL-INTO-LOCAL SERVICE FOR ALL DMAS. 
Section 119 is amended by adding at the end the fol-
lowing 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 enti-
ty 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 in-
junction against such carrier under subsection 
(a)(7)(B) before the date of the enactment of this
217 
† HR 4213 EAS 
subsection shall waive such injunction with re-
spect to the statutory license provided under sub-
section (a)(2) to the extent necessary to allow 
such carrier to make secondary transmissions of 
primary transmissions made by a network sta-
tion to unserved households located in short mar-
kets 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
WAIV-
ER.—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 issued unless extended 
for good cause by the court making the tem-
porary waiver. 
‘‘(C) FAILURE
TO
PROVIDE
LOCAL-INTO- 
LOCAL SERVICE TO ALL DMAS.— 
‘‘(i) FAILURE
TO
ACT
REASONABLY 
AND IN GOOD FAITH.—If the court issuing 
a temporary waiver under subparagraph 
(A) determines that the satellite carrier that 
made the request for such waiver has failed 
to act reasonably or has failed to make a
218 
† HR 4213 EAS 
good faith effort to provide local-into-local 
service to all DMAs, such failure— 
‘‘(I) is actionable as an act of in-
fringement under section 501 and the 
court may in its discretion impose the 
remedies provided for in sections 502 
through 506 and subsection (a)(6)(B) 
of this section; and 
‘‘(II) shall result in the termi-
nation of the waiver issued under sub-
paragraph (A). 
‘‘(ii) FAILURE
TO
PROVIDE
LOCAL- 
INTO-LOCAL SERVICE.—If the court issuing 
a temporary waiver under subparagraph 
(A) determines that the satellite carrier that 
made the request for such waiver has failed 
to provide local-into-local service to all 
DMAs, but determines that the carrier acted 
reasonably and in good faith, the court may 
in its discretion impose financial penalties 
that reflect— 
‘‘(I) the degree of control the car-
rier had over the circumstances that 
resulted in the failure;
219 
† HR 4213 EAS 
‘‘(II) the quality of the carrier’s 
efforts to remedy the failure; and 
‘‘(III) the severity and duration of 
any service interruption. 
‘‘(D) SINGLE
TEMPORARY
WAIVER
AVAIL-
ABLE.—An entity may only receive one tem-
porary waiver under this paragraph. 
‘‘(E) SHORT MARKET DEFINED.—For pur-
poses of this paragraph, the term ‘short market’ 
means a local market in which programming of 
one or more of the four most widely viewed tele-
vision networks nationwide as measured on the 
date of the enactment of this subsection is not of-
fered on the primary stream transmitted by any 
local television broadcast station. 
‘‘(3) ESTABLISHMENT
OF
QUALIFIED
CARRIER 
RECOGNITION.— 
‘‘(A) STATEMENT OF ELIGIBILITY.—An en-
tity seeking to be recognized as a qualified car-
rier under this subsection shall file a statement 
of eligibility with the court that imposed the in-
junction. A statement of eligibility must in-
clude— 
‘‘(i) an affidavit that the entity is pro-
viding local-into-local service to all DMAs;
220 
† HR 4213 EAS 
‘‘(ii) a request for a waiver of the in-
junction; and 
‘‘(iii) a certification issued pursuant to 
section 342(a) of Communications Act of 
1934. 
‘‘(B) GRANT OF RECOGNITION AS A QUALI-
FIED 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 re-
ceipt of such statement, the court shall reinstate 
the injunction waived under paragraph (1). 
‘‘(D) LOSS OF RECOGNITION PREVENTS FU-
TURE RECOGNITION.—No entity may be recog-
nized as a qualified carrier if such entity had 
previously been recognized as a qualified carrier 
and subsequently lost such recognition or volun-
tarily terminated such recognition under sub-
paragraph (C).
221 
† HR 4213 EAS 
‘‘(4) QUALIFIED
CARRIER
OBLIGATIONS
AND 
COMPLIANCE.— 
‘‘(A) CONTINUING OBLIGATIONS.— 
‘‘(i) IN
GENERAL.—An entity recog-
nized as a qualified carrier shall continue 
to provide local-into-local service to all 
DMAs. 
‘‘(ii) COOPERATION WITH GAO EXAM-
INATION.—An entity recognized as a quali-
fied carrier shall fully cooperate with the 
Comptroller General in the examination re-
quired by subparagraph (B). 
‘‘(B) QUALIFIED CARRIER COMPLIANCE EX-
AMINATION.— 
‘‘(i) EXAMINATION AND REPORT.—The 
Comptroller General shall conduct an exam-
ination and publish a report concerning the 
qualified carrier’s compliance with the roy-
alty payment and household eligibility re-
quirements of the license under this section. 
The report shall address the qualified car-
rier’s conduct during the period beginning 
on the date on which the qualified carrier 
is recognized as such under paragraph 
(3)(B) and ending on December 31, 2011.
222 
† HR 4213 EAS 
‘‘(ii) RECORDS
OF
QUALIFIED
CAR-
RIER.—Beginning on the date that is one 
year after the date on which the qualified 
carrier is recognized as such under para-
graph (3)(B), but not later than October 1, 
2011, the qualified carrier shall provide the 
Comptroller General with all records that 
the Comptroller General, in consultation 
with the Register of Copyrights, considers to 
be directly pertinent to the following re-
quirements under this section: 
‘‘(I) Proper calculation and pay-
ment of royalties under the statutory 
license under this section. 
‘‘(II) Provision of service under 
this license to eligible subscribers only. 
‘‘(iii) SUBMISSION
OF
REPORT.—The 
Comptroller General shall file the report re-
quired by clause (i) not later than March 1, 
2012, with the court referred to in para-
graph (1) that issued the injunction, the 
Register of Copyrights, the Committees on 
the Judiciary and on Energy and Com-
merce of the House of Representatives, and 
the Committees on the Judiciary and on
223 
† HR 4213 EAS 
Commerce, Science, and Transportation of 
the Senate. 
‘‘(iv) EVIDENCE OF INFRINGEMENT.— 
The Comptroller General shall include in 
the report a statement of whether the exam-
ination by the Comptroller General indi-
cated that there is substantial evidence that 
a copyright holder could bring a successful 
action under this section against the quali-
fied carrier for infringement. The Comp-
troller General shall consult with the Reg-
ister of Copyrights in preparing such state-
ment. 
‘‘(v) SUBSEQUENT
EXAMINATION.—If 
the report includes the Comptroller Gen-
eral’s statement that there is substantial 
evidence that a copyright holder could bring 
a successful action under this section 
against the qualified carrier for infringe-
ment, the Comptroller General shall, not 
later than 6 months after the report under 
clause (i) is published, initiate another ex-
amination of the qualified carrier’s compli-
ance with the royalty payment and house-
hold eligibility requirements of the license
224 
† HR 4213 EAS 
under this section since the last report was 
filed under clause (iii). The Comptroller 
General shall file a report on such examina-
tion with the court referred to in paragraph 
(1) that issued the injunction, the Register 
of Copyrights, the Committees on the Judi-
ciary and on Energy and Commerce of the 
House of Representatives, and the Commit-
tees on the Judiciary and on Commerce, 
Science, and Transportation of the Senate. 
The report shall include a statement de-
scribed in clause (iv), prepared in consulta-
tion with the Register of Copyrights. 
‘‘(vi) 
COMPLIANCE.—Upon 
motion 
filed by an aggrieved copyright owner, the 
court recognizing an entity as a qualified 
carrier shall terminate such designation 
upon finding that the entity has failed to 
cooperate with the examinations required by 
this subparagraph. 
‘‘(C) AFFIRMATION.—A qualified carrier 
shall file an affidavit with the district court and 
the Register of Copyrights 30 months after such 
status was granted stating that, to the best of the
225 
† HR 4213 EAS 
affiant’s knowledge, it is in compliance with the 
requirements for a qualified carrier. 
‘‘(D) 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. 
‘‘(E) PLEADING
REQUIREMENT.—In any 
motion brought under subparagraph (D), 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 al-
leged failure. 
‘‘(F) BURDEN
OF
PROOF.—In any pro-
ceeding to make a determination under subpara-
graph (D), 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 at least 90 per-
261 
† HR 4213 EAS 
(b) FCC STUDY; REPORT.— 
(1) STUDY.—If no satellite carrier files a request 
for a certification under section 342 of the Commu-
nications Act of 1934 (as added by section 526 of this 
title) within 180 days after the date of the enactment 
of this Act, the Federal Communications Commission 
shall initiate a study of— 
(A) incentives that would induce a satellite 
carrier to provide the signals of 1 or more tele-
vision broadcast stations licensed to provide sig-
nals in local markets in which the satellite car-
rier does not provide such signals; and 
(B) the economic and satellite capacity con-
ditions affecting delivery of local signals by sat-
ellite carriers to these markets. 
(2) REPORT.—Within 1 year after the date of the 
initiation of the study under paragraph (1), the Fed-
eral Communications Commission shall submit a re-
port to the appropriate Congressional committees con-
taining its findings, conclusions, and recommenda-
tions. 
(c) DEFINITIONS.—In this section— 
(1) the terms ‘‘local market’’ and ‘‘satellite car-
rier’’ have the meaning given such terms in section