HR 3570 RFS 
‘3.75 percent rate’ and the ‘syndicated exclusivity 
surcharge’, respectively), as in effect on the date of 
enactment of the Satellite Home Viewer Reauthor-
ization Act of 2009, as such rates may be adjusted, 
or such sections redesignated, thereafter by the 
Copyright Royalty Judges, shall not apply to the 
secondary transmission of a multicast stream. 
‘‘(6) 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 statements of account filed after the 
date of the enactment of the Satellite Home Viewer 
Reauthorization Act of 2009. The regulations shall 
provide for a single verification procedure, with re-
spect 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 own-
ers 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 pri-
mary transmission and for a mechanism to review 
and cure defects identified by any such audit. 
‘‘(7) ACCEPTANCE OF ADDITIONAL DEPOSITS.— 
Any royalty fee payments received by the Copyright 
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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 pe-
riod for which they are received and shall be distrib-
uted 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. 
(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 and any multicast streams transmitted by 
the station constitute primary transmissions.’’; 
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(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 in-
serting ‘‘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 Terri-
tory, or Possession’’ and inserting ‘‘territory, 
trust territory, 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 tele-
vision broadcast station, comprises the area in 
which such station is entitled to insist’’ and in-
serting the following: 
‘‘(4) LOCAL
SERVICE
AREA
OF
A
PRIMARY 
TRANSMITTER.—The ‘local service area of a primary 
transmitter’, in the case of both the primary stream 
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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 
Commission,’’; 
(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 
equivalent’— 
‘‘(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 
service area of the primary transmitter of 
such programming; and 
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‘‘(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 
station. 
‘‘(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 Commis-
sion require a cable system to omit the fur-
ther transmission of a particular program 
and such rules and regulations also permit 
the substitution of another program em-
bodying a performance or display of a 
work in place of the omitted transmission, 
or where such rules and regulations in ef-
fect on the date of enactment of the Copy-
right Act of 1976 permit a cable system, 
at its election, to effect such omission and 
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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 Communica-
tions 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 par-
ticular program and such rules, regula-
tions, 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 addi-
tional 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. 
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‘‘(iii) In the case of the secondary 
transmission of a primary transmitter that 
is a television broadcast station pursuant 
to the late-night or specialty programming 
rules of the Federal Communications Com-
mission, or the secondary transmission of a 
primary transmitter that is a television 
broadcast station on a part-time basis 
where full-time carriage is not possible be-
cause 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, net-
work, and noncommercial educational sta-
tions set forth in subparagraph (A), as the 
case may be, shall be multiplied by a frac-
tion that is equal to the ratio of the broad-
cast hours of such primary transmitter re-
transmitted by the cable system to the 
total broadcast hours of the primary trans-
mitter. 
‘‘(iv) No value shall be assigned for 
the secondary transmission of the primary 
stream or any multicast streams of a pri-
mary transmitter that is a television broad-
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cast station in any community that is with-
in the local service area of the primary 
transmitter.’’; 
(6) by striking the sixth undesignated para-
graph 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 sta-
tion 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 sub-
stantially all of the programming of an inter-
connected program service that— 
‘‘(i) is owned or operated by, or affili-
ated with, one or more of the television 
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networks 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.’’; and 
(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 broad-
cast station that is not a network station or a non-
commercial educational station.’’; 
(8) by striking the eighth undesignated para-
graph and inserting the following: 
‘‘(8) 
NONCOMMERCIAL
EDUCATIONAL
STA-
TION.—A ‘noncommercial educational station’ is tel-
evision station that is a noncommercial educational 
broadcast station as defined in section 397 of the 
Communications Act of 1934, as in effect on the 
date of the enactment of the Satellite Home Viewer 
Reauthorization Act of 2009.’’; and 
(9) by adding at the end the following: 
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‘‘(9) PRIMARY
STREAM.—A ‘primary stream’ 
is— 
‘‘(A) the single digital stream of program-
ming that prior to 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 such stream, the single 
digital stream of programming transmitted by 
the 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 Commis-
sion, or by an appropriate governmental authority of 
Canada or Mexico, that makes primary trans-
missions to the public. 
‘‘(11) 
MULTICAST
STREAM.—A 
‘multicast 
stream’ is a digital stream of programming trans-
mitted by a television broadcast station that is not 
the station’s primary stream. 
‘‘(12) SIMULCAST.—A ‘simulcast’ is a multicast 
stream of a television broadcast station that dupli-
cates the programming transmitted by the primary 
stream or another multicast stream of such station. 
‘‘(13) SUBSCRIBER; SUBSCRIBE.— 
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‘‘(A) SUBSCRIBER.—The term ‘subscriber’ 
means a person or entity that receives a sec-
ondary transmission service from a cable sys-
tem and pays a fee for the service, directly or 
indirectly, 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 
striking ‘‘clause’’ each place it appears and in-
serting ‘‘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 
‘‘nonnetwork’’ each place it appears and inserting 
‘‘non-network’’. 
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(3) 
PREVIOUSLY
UNDESIGNATED
PARA-
GRAPH.—Section 111(e)(1) is amended by striking 
‘‘second paragraph of subsection (f)’’ and inserting 
‘‘subsection (f)(2)’’. 
(4) REMOVAL
OF
SUPERFLUOUS
ANDS.—Sec-
tion 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’’. 
(6) CORRECTION TO TERRITORY REFERENCE.— 
Section 111(e)(2) is amended in the matter pre-
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ceding subparagraph (A) by striking ‘‘three terri-
tories’’ 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 extent such amendments assign a distant signal 
equivalent 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 2009 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 
enactment of this Act, a distant signal equiva-
lent value (referred to in paragraph (1)) shall 
not be assigned to secondary transmissions of 
such multicast stream that are made on or be-
fore June 30, 2010. 
(B) MULTICAST
STREAMS
SUBJECT
TO 
PREEXISTING WRITTEN AGREEMENTS FOR THE 
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SECONDARY
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 agree-
ment entered into on or before June 30, 2009, 
between a cable system or an association rep-
resenting the cable system and a primary trans-
mitter or an association representing the pri-
mary transmitter, a distant signal equivalent 
value (referred to in paragraph (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 agree-
ment 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 en-
actment of this Act shall not be entitled to any 
refund, or offset, of royalty fees paid on ac-
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count of 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 pri-
mary transmitter’’ have the meanings given those 
terms in section 111(f) of title 17, United States 
Code, as amended by this section. 
SEC. 105. 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) be-
fore 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 in-
junction against such carrier under subsection 
(a)(7)(B) before the date of the enactment of 
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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 make secondary trans-
missions of primary transmissions made by a 
network station 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 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 ex-
tended for good cause by the court making the 
temporary waiver. 
‘‘(C) FAILURE TO MAKE GOOD FAITH EF-
FORT TO PROVIDE LOCAL-INTO-LOCAL SERVICE 
TO ALL DMAS.— 
‘‘(i) WILLFUL FAILURE.—If the court 
issuing a temporary waiver under subpara-
graph (A) determines that the satellite car-
rier that made the request for such waiver 
has failed to make a good faith effort to 
provide local-into-local service to all DMAs 
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and determines that such failure was will-
ful, 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) NONWILLFUL FAILURE.—If the 
court issuing a temporary waiver under 
subparagraph (A) determines that the sat-
ellite carrier that made the request for 
such waiver has failed to make a good 
faith effort to provide local-into-local serv-
ice 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; 
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‘‘(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 mar-
ket’ means a local market in which program-
ming of one or more of the four most widely 
viewed television networks nationwide as meas-
ured on the date of enactment of this sub-
section is not offered on the primary stream 
transmitted by 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 state-
ment of eligibility with the court that imposed 
the injunction. A statement of eligibility must 
include— 
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‘‘(i) an affidavit that the entity is pro-
viding local-into-local service to all DMAs; 
‘‘(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 wish-
es to be recognized as a qualified carrier. Upon 
receipt of such statement, the court shall rein-
state the injunction waived under paragraph 
(1). 
‘‘(D) LOSS
OF
RECOGNITION
PREVENTS 
FUTURE RECOGNITION.—No entity may be rec-
ognized as a qualified carrier if such entity had 
previously been recognized as a qualified carrier 
and subsequently lost such recognition or volun-
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tarily terminated such recognition under sub-
paragraph (C). 
‘‘(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 
EXAMINATION.— 
‘‘(i) EXAMINATION
AND
REPORT.— 
The Comptroller General shall conduct an 
examination and publish a report con-
cerning the qualified carrier’s compliance 
with the royalty payment and household 
eligibility requirements of the license under 
this section. The report shall address the 
qualified carrier’s conduct during the pe-
riod beginning on the date on which the 
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qualified carrier is recognized as such 
under paragraph (3)(B) and ending on De-
cember 31, 2011. 
‘‘(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), the qualified carrier shall 
provide the Comptroller General with all 
records that the Comptroller General, in 
consultation with the Register of Copy-
rights, considers to be directly pertinent to 
the following requirements under this sec-
tion: 
‘‘(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 
required by clause (i) not later than March 
1, 2012, with the court referred to in para-
graph (1) that issued the injunction, the 
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Register of Copyrights, and the Commit-
tees on the Judiciary of the House of Rep-
resentatives and the Senate. 
‘‘(iv) EVIDENCE OF INFRINGEMENT.— 
The Comptroller General shall include in 
the report a statement of whether the ex-
amination by the Comptroller General indi-
cated that there is substantial evidence 
that a copyright holder could bring a suc-
cessful action under this section against 
the qualified carrier for infringement. The 
Comptroller General shall consult with the 
Register of Copyrights in preparing such 
statement. 
‘‘(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-
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hold eligibility requirements of the license 
under this section since the last report was 
filed under clause (iii). The Comptroller 
General shall file a report on such exam-
ination with the court referred to in para-
graph (1) that issued the injunction, the 
Register of Copyrights, and the Commit-
tees on the Judiciary of the House of Rep-
resentatives and the Senate. The report 
shall include a statement described in 
clause (iv), prepared in consultation with 
the Register of Copyrights. 
‘‘(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 affiant’s knowledge, it is in compli-
ance with the requirements for a qualified car-
rier. 
‘‘(D) 
COMPLIANCE
DETERMINATION.— 
Upon the motion of an aggrieved television 
broadcast station, the court recognizing an enti-
ty as a qualified carrier may make a determina-
tion of whether the entity is providing local- 
into-local service to all DMAs. 
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‘‘(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 alleged failure. 
‘‘(F) BURDEN
OF
PROOF.—In any pro-
ceeding to make a determination under sub-
paragraph (D), and with respect to a des-
ignated market area for which failure to provide 
service is alleged, the entity recognized as a 
qualified carrier shall have the burden of prov-
ing that the entity provided local-into-local serv-
ice with a good quality satellite signal to at 
least 90 percent of the households in such des-
ignated market area (based on the most recent 
census data released by the United States Cen-
sus Bureau) at the time and place alleged. 
‘‘(G) ENFORCEMENT.—Upon motion filed 
by an interested party, the court recognizing an 
entity as a qualified carrier shall terminate such 
designation upon finding that the entity has 
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failed to meet the requirements imposed on the 
entity under this paragraph. 
‘‘(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 re-
sult 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 in-
fringement under section 501, and subject 
such infringement to the remedies provided 
for in sections 502 through 506 and sub-
section (a)(6)(B) of this section; and 
‘‘(ii) impose a fine of not more than 
$250,000. 
‘‘(B) EXCEPTION FOR NONWILLFUL VIOLA-
TION.—If the court determines that the failure 
to provide local-into-local service to all DMAs is 
nonwillful, the court may in its discretion im-
pose financial penalties for noncompliance that 
reflect— 
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‘‘(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
LI-
CENSE.—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 sta-
tion 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 more than 
$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 enti-
ty provides local service in all designated mar-
ket areas (as such term is defined in section 
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122(j)(2)(C)) pursuant to the license under sec-
tion 122. 
‘‘(B) HOUSEHOLD
COVERAGE.—For pur-
poses of subparagraph (A), an entity that 
makes available local-into-local service with a 
good quality satellite signal to at least 90 per-
cent of the households in a designated market 
area based on the most recent census data re-
leased by the United States Census Bureau 
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 
342(e)(2) of Communications Act of 1934.’’. 
SEC. 106. TERMINATION OF LICENSE. 
(a) TERMINATION.—Section 119, as amended by this 
title, shall cease to be effective on December 31, 2014. 
(b) CONFORMING AMENDMENT.—Section 4(a) of the 
Satellite Home Viewer Act of 1994 (17 U.S.C. 119 note; 
Public Law 103–369) is repealed. 
SEC. 107. SURCHARGE ON STATUTORY LICENSES. 
(a) SURCHARGES.—The Copyright Royalty Judges 
shall establish a surcharge or surcharges to be paid, in 
accordance with subsection (b), by cable systems subject 
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to statutory licensing under section 111(c) of title 17, 
United States Code, and satellite carriers whose secondary 
transmissions are subject to statutory licensing under sec-
tion 119(a) of such title, in addition to the royalty fees 
paid by such cable systems under section 111(d)(1) of 
such title and by such satellite carriers under section 
119(b)(1) of such title. 
(b) AMOUNT AND TIMING OF SURCHARGES.—Sur-
charges under subsection (a) shall be assessed, during fis-
cal years 2009 through 2019, in amounts that, in the ag-
gregate, will equal at least $92,000,000. 
(c) FUNDS UNAVAILABLE FOR OBLIGATION.—Sur-
charges collected under this section shall be deposited in 
the Treasury of the United States and shall not be avail-
able for obligation. 
(d) AUTHORITIES.—The Copyright Royalty Judges 
may exercise the authorities such Judges have under chap-
ter 8 of title 17, United States Code, to carry out this 
section. 
SEC. 108. CONSTRUCTION. 
Nothing in section 111, 119, or 122 of title 17, 
United States Code, including the amendments made to 
such sections by this title, shall be construed to affect the 
meaning of any terms under the Communications Act of 
1934, except to the extent that such sections are specifi-
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cally cross-referenced in such Act or the regulations issued 
thereunder. 
TITLE II—COMMUNICATIONS 
PROVISIONS 
SEC. 201. REFERENCE. 
Except as otherwise provided, whenever in this title 
an amendment is made to a section or other provision, 
the reference shall be considered to be made to such sec-
tion or provision of the Communications Act of 1934 (47 
U.S.C. 151 et seq.). 
SEC. 202. EXTENSION OF AUTHORITY. 
Section 325(b) is amended— 
(1) in paragraph (2)(C), by striking ‘‘December 
31, 2009’’ and inserting ‘‘December 31, 2014’’; and 
(2) in paragraph (3)(C), by striking ‘‘January 
1, 2010’’ each place it appears in clauses (ii) and 
(iii) and inserting ‘‘January 1, 2015’’. 
SEC. 203. SIGNIFICANTLY VIEWED STATIONS. 
(a) IN GENERAL.—Paragraphs (1) and (2) of section 
340(b) are amended to read as follows: 
‘‘(1) SERVICE LIMITED TO SUBSCRIBERS TAK-
ING LOCAL-INTO-LOCAL SERVICE.—This section shall 
apply only to retransmissions to subscribers of a sat-
ellite carrier who receive retransmissions of a signal 
from that satellite carrier pursuant to section 338. 
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