‘‘(8) SECONDARY
TRANSMISSION.—The term
‘secondary transmission’ means the further trans-
mitting of a primary transmission simultaneously
with the primary transmission.
‘‘(9) 
SUBSCRIBER.—The 
term 
‘subscriber’
means an individual who receives a secondary trans-
mission service for private home viewing by means
of a secondary transmission from a satellite carrier
and pays a fee for the service, directly or indirectly,
to the satellite carrier or to a distributor.
‘‘(10) TELEVISION BROADCAST STATION.—The
term ‘television broadcast station’ means an over-
the-air, commercial or noncommercial television
broadcast station licensed by the Federal Commu-
nications Commission under subpart E of part 73 of
title 47, Code of Federal Regulations.’’.
SEC. 5. EXCLUSIVITY OF SECTION 119 OF TITLE 17, UNITED
STATES CODE.
Section 119 of title 17, United States Code, is
amended by adding at the end the following:
‘‘(e) EXCLUSIVITY FOR THIS SECTION WITH RE-
SPECT TO SECONDARY TRANSMISSIONS OF TELEVISION
STATIONS BY SATELLITE TO MEMBERS OF THE PUB-
LIC.—No provision of section 111 of this title or any other
law (other than this section) shall be construed to contain
any authorization, exemption, or license through which
secondary transmissions by satellite carriers for private
home viewing of programming contained in a primary
transmission may be made without obtaining the consent
of the copyright owner.’’.
SEC. 6. CONFORMING AMENDMENT.
The table of contents for chapter 1 of title 17, United
States Code, is amended by striking the item relating to
section 119 and inserting the following:
‘‘119. Limitations on exclusive rights: Secondary transmissions by satellite car-
riers.’’.
SEC. 7. COPYRIGHT ROYALTY ADJUDICATION BOARD.
(a) ESTABLISHMENT AND FUNCTIONS.—Chapter 8
of title 17, United States Code, is amended to read as
follows:
‘‘CHAPTER 8—COPYRIGHT ROYALTY
ADJUDICATION BOARD
‘‘Sec.
‘‘801. Copyright Royalty Adjudication Board: establishment.
‘‘802. Membership and qualifications of the Board.
‘‘803. Selection of administrative copyright judges.
‘‘804. Independence of the Board.
‘‘805. Removal and sanction of administrative copyright judges.
‘‘806. Functions.
‘‘807. Factors for determining royalty fees.
‘‘808. Institution of proceedings.
‘‘809. Conduct of proceedings.
‘‘810. Judicial review.
‘‘811. Administrative matters.
‘‘§ 801. Copyright Royalty Adjudication Board: estab-
lishment
‘‘There is hereby established within the Copyright Of-
fice the Copyright Royalty Adjudication Board (herein-
after referred to in this chapter as the ‘Board’).
‘‘§ 802. Membership and qualifications of the Board
‘‘(a) MEMBERSHIP.—The Board shall consist of one
full-time chief administrative copyright judge, and such
part-time administrative copyright judges as the Librarian
of Congress, upon the recommendation of the Register of
Copyrights, finds necessary to conduct the business of the
Board in a timely manner. At no time shall the number
of authorized administrative copyright judges be less than
three or more than five.
‘‘(b) QUALIFICATIONS.—
‘‘(1) 
CHIEF
ADMINISTRATIVE
COPYRIGHT
JUDGE.—The chief administrative copyright judge
shall be an attorney with 10 or more years of legal
practice with demonstrated experience in administra-
tive hearings or court trials and demonstrated
knowledge of copyright law.
‘‘(2) 
OTHER
ADMINISTRATIVE
COPYRIGHT
JUDGES.—Each 
administrative 
copyright 
judge,
other than the chief administrative copyright judge,
shall be an individual with expertise in the business
and economics of industries affected by the actions
taken by the Board to carry out its functions.
‘‘(c) TERMS.—(1) The term of each administrative
copyright judge (including the chief administrative copy-
right judge) shall be 5 years, except that, of the first ad-
ministrative copyright judges appointed, the Librarian of
Congress, upon the recommendation of the Register of
Copyrights, shall appoint all but one of them to lesser
terms to establish a staggering of terms such that in any
calendar year no more than one term is due to expire.
‘‘(2) The term of each administrative copyright judge
(including the chief administrative copyright judge) shall
begin when the term of the predecessor of that member
ends. An individual appointed to fill the vacancy occurring
before the expiration of the term for which the predecessor
of that individual was appointed shall be appointed for the
remainder of that term. When the term of office of a mem-
ber ends, the member may continue to serve until a succes-
sor is selected.
‘‘(d) COMPENSATION.—The compensation of the ad-
ministrative copyright judges shall be governed solely by
the provisions of section 5376 of title 5 and such regula-
tions as the Librarian of Congress may adopt that are not
inconsistent with that section. The compensation of the
administrative copyright judges shall not be subject to any
regulations adopted by the Office of Personnel Manage-
ment pursuant to its authority under section 5376(b)(1)
of title 5.
‘‘§ 803. Selection of administrative copyright judges
‘‘(a) SELECTION.—(1) The Librarian of Congress,
upon the recommendation of the Register of Copyrights,
shall select the administrative copyright judges (including
the chief administrative copyright judge) among individ-
uals found qualified under section 802(b) and free of any
financial conflict of interest under section 805(a).
‘‘(2) Administrative copyright judges previously se-
lected by the Librarian of Congress may be selected to
serve additional terms. There shall be no limit on the num-
ber of terms any individual may serve.
‘‘(b) EFFECT OF VACANCY.—If any vacancy should
occur among the administrative copyright judges, the Li-
brarian of Congress shall act expeditiously to fill the va-
cancy, but in no event shall a vacancy in the Board impair
the right of the remaining administrative copyright judges
to exercise all of the powers of the Board.
‘‘§ 804. Independence of the Board
‘‘(a) IN GENERAL.—The Board shall have independ-
ence in reaching its determinations concerning the adjust-
ment of copyright royalty rates, the distribution of copy-
right royalties, the acceptance or rejection of royalty
claims and rate adjustment petitions, and such rulemaking
functions as are delegated to it under this title.
‘‘(b) PERFORMANCE APPRAISALS.—Notwithstanding
any other provision of law or any regulation of the Library
of Congress, no administrative copyright judge shall re-
ceive an annual performance appraisal. To the extent that
such removal or sanction regulations as the Librarian of
Congress may adopt pursuant to section 805 requires doc-
umentation to establish the cause of such removal or sanc-
tion, the administrative copyright judge may receive an
appraisal related specifically to the cause of the removal
or sanction.
‘‘(c) INCONSISTENT DUTIES BARRED.—No adminis-
trative copyright judge may be assigned duties inconsist-
ent with his or her duties and responsibilities as a admin-
istrative copyright judge.
‘‘§ 805. Removal and sanction of administrative copy-
right judges
‘‘(a) STANDARDS OF CONDUCT.—The Librarian of
Congress, upon the recommendation of the Register of
Copyrights, shall adopt regulations regarding the stand-
ards of conduct, including financial conflict of interest and
restrictions against ex parte communications, which shall
govern the administrative copyright judges and the pro-
ceedings under this chapter.
‘‘(b) REMOVAL
OR SANCTION.—The Librarian of
Congress, upon the recommendation of the Register of
Copyrights, may remove or sanction an administrative
copyright judge for violation of the standards of conduct
adopted under subsection (a), misconduct, neglect of duty,
or any disqualifying physical or mental disability. Any
such removal or sanction may be made only after notice
and opportunity for hearing, but the Librarian of Con-
gress, upon the recommendation of the Register of Copy-
rights, may suspend the administrative copyright judge
during the pendency of such hearing.
‘‘§ 806. Functions
‘‘Subject to the provisions of this chapter, the func-
tions of the Board shall be—
‘‘(1) to make determinations concerning the ad-
justment of reasonable copyright royalty rates for—
‘‘(A) secondary transmissions to the public
by a cable system of a primary transmission as
provided in section 111;
‘‘(B) the making and distributing of
phonorecords by means other than digital pho-
norecord delivery, as provided in section 115;
‘‘(C) secondary transmissions to the public
by a satellite carrier of a primary transmission
as provided in section 119; and
timeliness or the failure to establish the basis for a
claim;
‘‘(4) to determine, in cases where controversy
exists, the distribution of royalty fees deposited with
the Register of Copyrights under sections 111, 119,
and 1003;
‘‘(5) to determine the status of a digital audio
recording device or a digital audio interface device
under sections 1002 and 1003, as provided in sec-
tion 1010; and
‘‘(6) to engage in such rulemaking as is ex-
pressly provided in sections 111, 114, 115, 118, and
119.
‘‘§ 807. Factors for determining royalty fees
‘‘(a) FOR CABLE RATES.—The rates applicable
under section 111 shall be calculated solely in accordance
with the following provisions:
‘‘(1) 
The 
rates 
established 
by 
section
111(d)(1)(B) may be adjusted to reflect—
‘‘(A) national monetary inflation or defla-
tion, or
‘‘(B) changes in the average rates charged
cable subscribers for the basic service of provid-
ing secondary transmissions to maintain the
real constant dollar level of the royalty fee per
subscriber which existed as of October 19,
1976, except that—
‘‘(i) if the average rates charged cable
system subscribers for the basic service of
providing 
secondary 
transmissions 
are
changed so that the average rates exceed
national monetary inflation, no change in
the 
rates 
established 
by 
section
111(d)(1)(B) shall be permitted; and
‘‘(ii) no increase in the royalty fee
shall be permitted based on any reduction
in the average number of distant signal
equivalents per subscriber.
The Board may consider all factors relating to the
maintenance of such level of payments including, as
an extenuating factor, whether the cable industry
has been restrained by subscriber rate regulating au-
thorities from increasing the rates for the basic serv-
ice of providing secondary transmissions.
‘‘(2) In the event that the rules and regulations
of the Federal Communications Commission are
amended at any time after April 15, 1976, to permit
the carriage by cable systems of additional television
broadcasting signals beyond the local service area of
the primary transmitters of such signals, the royalty
rates established by section 111(d)(1)(B) may be ad-
justed to insure that the rates for the additional dis-
tant signal equivalents resulting from such carriage
are reasonable in light of the changes effected by the
amendment to such rules and regulations. In deter-
mining the reasonableness of rates proposed follow-
ing an amendment of Federal Communications Com-
mission rules and regulations, the Board shall con-
sider, among other factors, the economic impact on
copyright owners and users, except that no adjust-
ment in royalty rates shall be made under this para-
graph with respect to any distant signal equivalent
or fraction thereof represented by—
‘‘(A) carriage of any signal permitted
under the rules and regulations of the Federal
Communications Commission in effect on April
15, 1976, or the carriage of a signal of the
same type (that is, independent, network, or
noncommercial educational) substituted for
such permitted signal, or
‘‘(B) a television broadcast signal first car-
ried after April 15, 1976, pursuant to an indi-
vidual waiver of the rules and regulations of the
Federal Communications Commission, as such
rules and regulations were in effect on April 15,
1976.
‘‘(3) In the event of any change in the rules
and regulations of the Federal Communications
Commission with respect to syndicated and sport
program exclusivity after April 15, 1976, the rates
established by section 111(d)(1)(B) may be adjusted
to assure that such rates are reasonable in light of
the changes to such rules and regulations, but any
such adjustment shall apply only to the affected tele-
vision broadcast signals carried on those systems af-
fected by the change.
‘‘(4) The gross receipts limitations established
by section 111(d)(1) (C) and (D) shall be adjusted
to reflect national monetary inflation or deflation or
changes in the average rates charged cable system
subscribers for the basic service of providing second-
ary transmissions to maintain the real constant dol-
lar value of the exemption provided by such section,
and the royalty rate specified therein shall not be
subject to adjustment.
‘‘(b) FOR RATES OTHER THAN CABLE
OR SAT-
ELLITE CARRIERS.—The rates applicable under sections
114, 115, 116, and 118 shall be calculated to achieve the
following objectives:
‘‘(1) To maximize the availability of creative
works to the public.
‘‘(2) To afford the copyright owner a fair re-
turn for his or her creative work and the copyright
user a fair income under existing economic condi-
tions.
‘‘(3) To reflect the relative roles of the copy-
right owner and the copyright user in the product
made available to the public with respect to relative
creative contribution, technological contribution, cap-
ital investment, cost, risk, and contribution to the
opening of new markets for creative expression and
media for their communications.
‘‘(4) To minimize any disruptive impact on the
structure of the industries involved and on generally
prevailing industry practices.
‘‘(c) FOR RATES FOR NONCOMMERCIAL BROADCAST-
ING.—The rates applicable under section 118 shall be cal-
culated to achieve reasonable rates. In determining rea-
sonable rates, the Board shall base its decision so as to—
‘‘(1) assure a fair return to copyright owners;
‘‘(2) encourage the growth and development of
public broadcasting; and
‘‘(3) encourage musical and artistic creation.
‘‘(d) RATES FOR SATELLITE CARRIERS.—The rates
applicable under section 119 shall be calculated to rep-
resent most clearly the fair market value of secondary
transmissions. In determining the fair market value, the
Board shall base its decision on economic, competitive,
and programming information presented by the parties,
including—
‘‘(1) the competitive environment in which such
programming is distributed, the cost for similar sig-
nals in similar private and compulsory license mar-
ketplaces, and any special features and conditions of
the retransmission marketplace;
‘‘(2) the economic impact of such fees on copy-
right owners and satellite carriers; and
‘‘(3) the impact on the continued availability of
secondary transmissions to the public.
‘‘§ 808. Institution of proceedings
‘‘(a) PETITION REQUIRED TO INSTITUTE PROCEED-
INGS.—With respect to proceedings concerning the adjust-
ment of royalty rates as provided in sections 111, 114,
115, 116, and 119, during the calendar years or under
the circumstances specified in the schedule set forth in
subsection (c), any owner or user of a copyrighted work
whose royalty rates are to be established or adjusted by
the Board may file a petition with the Board declaring
ing. The Board may accept or reject the position of the
Copyright Office.
‘‘(d) MAJORITY RULE.—The Board shall act in all
procedural and substantive matters on the basis of major-
ity rule.
‘‘(e) NUMBER OF PRESIDING JUDGES.—The Board
shall decide, in its discretion, whether 1 or 3 administra-
tive copyright judges shall preside in a royalty distribution
or rate adjustment proceeding. In no event shall the num-
ber of presiding administrative copyright judges be more
than 3.
‘‘(f) PARTICIPATION
OF PARTIES.—Any copyright
owner who has filed an acceptable claim claiming entitle-
ment to the distribution of royalties, or any copyright
owner or user who would be affected by a royalty rate to
be established or adjusted by the Board, may submit rel-
evant information and proposals to the Board in proceed-
ings applicable to the interest of the copyright owner or
user.
‘‘(g) TIME LIMITS FOR INITIAL DECISION.—Proceed-
ings under section 118 operate under the time limits es-
tablished in that section. For all other proceedings, if 1
administrative copyright judge is presiding in a proceed-
ing, the Board shall issue its initial decision to the parties
to the proceeding and the Register of Copyrights within
6 months after the declaration of a controversy in the pro-
ceeding. If more than 1 administrative copyright judge is
presiding in a proceeding, the Board shall issue its initial
decision to the parties to the proceeding and the Register
of Copyrights within 1 year after the declaration of a con-
troversy in the proceeding.
‘‘(h) REQUIREMENTS FOR INITIAL DECISIONS.—The
initial decision under subsection (g) shall include a state-
ment of findings and conclusions and the reasons or basis
therefor, on all the material issues of fact, law, or discre-
tion presented on the record. The initial decision shall take
into account prior decisions of the Copyright Royalty Tri-
bunal, prior decisions of copyright arbitration royalty pan-
els, and the procedural and evidentiary rulings the Librar-
ian of Congress made that were applicable to the proceed-
ings of the copyright arbitration royalty panels. Notwith-
standing any provision of section 603 or 604 of title 5,
neither the initial decision nor the final decision is re-
quired to include a regulatory flexibility analysis.
‘‘(i) PETITIONS FOR RECONSIDERATION AND FINAL
AGENCY ACTION.—Any party to the proceeding concerned
or the Register of Copyrights may petition the Board to
reconsider its initial decision in the proceeding. If there
are no petitions for reconsideration, the initial decision be-
comes the final decision of the Board without further pro-
ceedings. If there are petitions for reconsideration, the
Board shall issue a final decision to the parties to the pro-
ceeding and the Register of Copyrights which shall con-
stitute final agency action. The time period by which par-
ties to the proceeding or the Register of Copyrights may
file a petition for reconsideration and the time period by
which the Board shall render its final decision shall be
established by regulation by the Board, subject to the ap-
proval of the Register of Copyrights.
‘‘§ 810. Judicial review
‘‘(a) APPEALS.—Within 1 week after the Board
issues a final decision under section 809, or, if there are
no petitions for reconsideration, within one week after the
time the initial decision of the Board under section 809
becomes the final decision, the Board shall cause to be
published in the Federal Register the decision of the rate
adjustment or the royalty distribution, as the case may
be. Any aggrieved party who would be bound by the final
decision may appeal the decision to the United States
Court of Appeals for the Federal Circuit within 30 days
after the publication of the decision in the Federal Reg-
ister. In any appeal to which the Board is a party, the
chief administrative copyright judge shall refer the con-
duct of the litigation in defense of the Board’s decision
to the Department of Justice. If no appeal is brought
within such 30-day period, the decision of the Board is
final, and the royalty fee or determination with respect
to the distribution of fees, as the case may be, shall take
effect as set forth in the decision. The pendency of an ap-
peal under this paragraph shall not relieve persons obli-
gated to make royalty payments under section 111, 114,
115, 116, 118, 119, or 1003 who would be affected by
the determination on appeal to deposit the statement of
account and royalty fees specified in those sections.
‘‘(b) REVIEW SUBJECT TO CHAPTER 7 OF TITLE
5.—The judicial review of the Board’s final decision shall
be had, in accordance with chapter 7 of title 5, on the
basis of the record before the Board.
‘‘§ 811. Administrative matters
‘‘(a) ADMINISTRATIVE SUPPORT.—The Library of
Congress, upon the recommendation of the Register of
Copyrights, shall provide the Board with the necessary ad-
ministrative services and permanent personnel related to
proceedings under this title. The Board may procure tem-
porary and intermittent services to the same extent as is
authorized by sections 3109 and 5376 of title 5.
‘‘(b) AUTHORITY TO PUBLISH IN FEDERAL REG-
ISTER.—The actions of the Board which may be published
in the Federal Register by and under the authority of the
Board include—
‘‘(1) actions of the Board required to be pub-
lished in the Federal Register under this title;
‘‘(2) actions of the Board required to be pub-
lished in the Federal Register under regulations
adopted by the Board upon the approval of the Reg-
ister of Copyrights; and
‘‘(3) regulations of the Board required to be
published in the Federal Register to which the
Board has been delegated the exclusive right to
adopt.
‘‘(c) DEDUCTION OF COSTS FROM ROYALTY FEES.—
The Register of Copyrights may, to the extent not other-
wise provided under this title, deduct from royalty fees de-
posited or collected under this title the reasonable costs
incurred by the Copyright Office and the Board under this
chapter. Such deduction may be made before the fees are
distributed to any copyright claimants. In addition, all
funds made available by an appropriations Act as offset-
ting collections and available for decisions under this sub-
section shall remain available until expended. In rate-
making proceedings, the reasonable costs of the Copyright
Office and the Board shall be borne by the parties in such
manner and proportion as the Board shall direct.
‘‘(d) POSITIONS REQUIRED FOR ADMINISTRATION OF
COMPULSORY LICENSING.—Section 307 of the Legislative
Branch Appropriations Act of 1994 shall not apply to the
members of the Board, employee positions in the Board,
or employee positions in the Library of Congress that are
required to be filled in order to carry out section 111, 114,
115, 116, 118, or 119 or chapter 10.
‘‘(e) BUDGET.—In each annual request for appro-
priations, the Register of Copyrights shall identify the por-
tion thereof intended for the support of the Board and
a statement which shall include an assessment of the
budgetary needs of the Board.
‘‘(f) ANNUAL REPORT.—The Board shall prepare an
annual report of its work and accomplishments during
each fiscal year, which the Register of Copyrights shall
include in the annual report required under section
701(c).’’.
(b) CONFORMING AMENDMENT.—The item relating
to chapter 8 in the table of chapters for title 17, United
States Code, is amended to read as follows:
‘‘8. Copyright Royalty Adjudication Board .............................
801’’.
SEC. 8. TRANSITION PROVISIONS.
(a) TRANSITIONAL PROCEDURES.—During the pe-
riod beginning on the date of the enactment of this Act
and ending on the effective date of this Act, the Register
of Copyrights shall adopt regulations to govern proceed-
ings under chapter 8 of title 17, United States Code, as
amended by section 7 of this Act. Such regulations shall
remain in effect unless and until the Copyright Royalty
Adjudication Board, upon the approval of the Register of
Copyrights, adopts supplemental or superseding regula-
tions pursuant to section 809(b) of title 17, United States
Code.
(b) PROCEEDINGS IN PROGRESS.—
(1) COPYRIGHT ARBITRATION ROYALTY PANEL
PROCEEDINGS.—Unless the Register of Copyrights,
for good cause, finds otherwise, proceedings in which
a copyright arbitration royalty panel has been con-
vened by the Librarian of Congress under chapter 8
of title 17, United States Code, as in effect before
the effective date of this Act, shall continue in effect
and shall be governed under chapter 8 of such title,
and applicable regulations, as in effect prior to such
effective date. Proceedings in which a copyright arbi-
tration royalty panel has not been convened by the
Librarian of Congress under chapter 8 of title 17,
United States Code, before the effective date of this
Act shall be suspended and recommenced under the
amendments made by section 7.
(2) CONTINUED PROCEEDINGS.—For those pro-
ceedings continued under paragraph (1), the func-
tions of the Librarian of Congress and the Register
of Copyrights relating to the report of the copyright
arbitration royalty panel under title 17, United
States Code, as in effect before the effective date of
this Act, may, in the Librarian’s discretion, upon the
recommendation of the Register of Copyrights, be
delegated to the Copyright Royalty Adjudication
Board, when constituted.
(3) APPEALS.—In any appeal of a decision of
the Librarian of Congress adopting or rejecting a
determination of a copyright arbitration royalty
panel which is pending in the United States Court
of Appeals for the District of Columbia Circuit on
or after the effective date of this Act, if such case
is remanded by the court, the Librarian of Congress
shall not reconvene the copyright arbitration royalty
panel which rendered the determination, but shall
direct the Copyright Royalty Adjudication Board,
when constituted, to conduct proceedings in accord-
ance with the directions of the court.
(c) EFFECTIVENESS OF EXISTING RATES AND DIS-
TRIBUTIONS.—All royalty rates and all determinations
with respect to the proportionate division of compulsory
license fees among copyright claimants, whether made by
the Copyright Royalty Tribunal, copyright arbitration roy-
alty panels, or by voluntary agreement, before the effective
date of this Act, shall remain in effect until modified by
voluntary agreement or pursuant to the amendments
made by this Act.
(d) TRANSFER
OF
APPROPRIATIONS.—All unex-
pended balances of appropriations made by the Copyright
Office for the support of the copyright arbitration royalty
panels, as of the effective date of this Act, are transferred
on such effective date to the support of the Copyright Roy-
alty Arbitration Board for the purposes for which such
appropriations were made.
SEC. 9. AMENDMENTS TO OTHER PROVISIONS OF TITLE 17,
UNITED STATES CODE.
(a) SECONDARY TRANSMISSIONS
BY CABLE SYS-
TEMS.—Section 111(d) of title 17, United States Code,
is amended—
(1) in paragraph (2)—
(A) in the last sentence by striking ‘‘Li-
brarian of Congress’’ and all that follows
through the end of the sentence and inserting
the following: ‘‘Copyright Royalty Adjudication
Board as provided in this title. The Register of
Copyrights may, 4 or more years after the close
of any calendar year, close out the account for
royalty payments made for that calendar year,
and may treat any funds remaining in such ac-
count and any subsequent deposits that would
otherwise be attributable to that calendar year
as attributable to the succeeding calendar
year.’’;
(2) in paragraph (3)(A), by striking ‘‘nonnet-
work’’;
(3) in paragraph (4)—
(A) in subparagraph (A)—
(i) by striking ‘‘Librarian of Con-
gress’’ the first place it appears and insert-
ing 
‘‘Copyright 
Royalty 
Adjudication
Board’’; and
(ii) by striking ‘‘Librarian of Con-
gress’’ the second place it appears and in-
serting ‘‘Board’’;
(B) in subparagraph (B)—
(i) by striking ‘‘Librarian of Congress
shall, upon the recommendation of the
Register of Copyrights’’ and inserting
‘‘Copyright Royalty Adjudication Board
shall’’;
(ii) by striking ‘‘Librarian’’ each sub-
sequent place it appears and inserting
‘‘Board’’; and
(iii) in the last sentence by striking
‘‘convene a copyright royalty arbitration
panel’’ and inserting ‘‘conduct a proceed-
ing’’; and
(C) in subparagraph (C)—
(i) by striking ‘‘Librarian of Con-
gress’’ and inserting ‘‘Copyright Royalty
Adjudication Board’’; and
(ii) by adding at the end the follow-
ing: ‘‘The action of the Board to distribute
royalty fees may precede the declaration of
a controversy if all parties to the proceed-
ing file a petition with the Board request-
ing such distribution, except that such
amount may not exceed 50 percent of the
amounts on hand at the time of the re-
quest.’’.
(b) SCOPE OF EXCLUSIVE RIGHTS IN SOUND RE-
CORDINGS.—Section 114(f) of title 17, United States
Code, is amended—
(1) in paragraph (1)—
(A) by amending the first sentence to read
as follows: ‘‘During the first week of January,
2000, the Copyright Royalty Adjudication
Board shall cause notice to be published in the
Federal Register of the initiation of voluntary
negotiation proceedings for the purpose of de-
termining or adjusting reasonable terms and
rates of royalty payments for the activities spec-
ified in subsection (d)(2) of this section.’’; and
(B) in the third sentence by striking ‘‘Li-
brarian of Congress’’ and inserting ‘‘Copyright
Royalty Adjudication Board’’;
(2) by striking paragraphs (2), (3), and (4) and
inserting the following:
‘‘(2) In the absence of license agreements nego-
tiated under paragraph (1), during the 60-day pe-
riod beginning 6 months after publication of the no-
tice specified in paragraph (1), and upon the filing
of a petition in accordance with section 808(a), the
Copyright Royalty Adjudication Board shall, pursu-
ant to chapter 8, conduct a proceeding to determine
and publish in the Federal Register a schedule of
rates and terms. In addition to the objectives set
forth in section 807(a) in establishing or adjusting
such rates and terms, the Board may consider the
rates and terms for comparable types of digital
audio transmission services and comparable cir-
cumstances under voluntary license agreements ne-
gotiated as provided in paragraph (1). The Copy-
right Royalty Adjudication Board, upon the approval
of the Register of Copyrights, shall also establish re-
quirements by which copyright owners may receive
reasonable notice of the use of their sound record-
ings under this section, and under which records of
such use shall be kept and made available by entities
performing sound recordings.
‘‘(3) License agreements voluntarily negotiated
at any time between 1 or more copyright owners of
sound recordings and 1 or more entities performing
sound recordings shall be given effect in lieu of any
determination by the Copyright Royalty Adjudica-
tion Board.
‘‘(4) Publication of a notice of the initiation of
voluntary negotiation proceedings as specified in
paragraph (1) and the procedures specified in para-
graph (2) shall be repeated, in accordance with regu-
lations that the Copyright Royalty Adjudication
Board, upon the approval of the Register of Copy-
rights, shall prescribe—
‘‘(A) no later than 30 days after a petition
is filed by any copyright owners of sound re-
cordings or any entities performing sound re-
cordings affected by this section indicating that
a new type of digital audio transmission service
on which sound recordings are performed is or
is about to become operational; and
‘‘(B) during the first week of January
2005 and at 5-year intervals thereafter.’’; and
(3) in paragraph (5)(A)(i) by striking ‘‘Librar-
ian of Congress’’ and inserting ‘‘Copyright Royalty
Adjudication Board, upon the approval of the Reg-
ister of Copyrights,’’.
(c) COMPULSORY LICENSE FOR MAKING AND DIS-
TRIBUTING PHONORECORDS.—Section 115(c)(3) of title
17, United States Code, is amended—
(1) in subparagraph (C)—
(A) by amending the first sentence to read
as follows: ‘‘At the times established in sub-
paragraph (F), the Copyright Royalty Adjudica-
tion Board shall cause notice to be published in
the Federal Register of the initiation of vol-
untary negotiation proceedings for the purpose
of determining reasonable terms and rates of
royalty payments for the activities specified in
subparagraph (A) until the effective date of any
new terms and rates established pursuant to
this subparagraph or subparagraph (D) or (F),
or such other date (regarding digital phono-
record deliveries) as the parties may agree.’’;
(B) in the third sentence by striking ‘‘Li-
brarian of Congress’’ and inserting ‘‘Copyright
Royalty Adjudication Board’’;
(2) by amending subparagraph (D) to read as
follows:
‘‘(D) In the absence of license agreements nego-
tiated under subparagraphs (B) and (C), upon the
filing of a petition in accordance with section 808(a),
the Copyright Royalty Adjudication Board shall,
pursuant to chapter 8, conduct a proceeding to de-
termine and publish in the Federal Register a sched-
ule of rates and terms. Such rates and terms shall
distinguish between—
‘‘(i) digital phonorecord deliveries where
the reproduction or distribution of a phono-
record is incidental to the transmission which
constitute the digital phonorecord delivery, and
‘‘(ii) digital phonorecord deliveries in gen-
eral.
In addition to the objectives set forth in section
807(a), in establishing or adjusting rates and terms,
the Board may consider rates and terms under vol-
untary license agreements negotiated as provided in
subparagraphs (B) and (C). The Board, upon the
approval of the Register of Copyrights, shall also es-
tablish requirements by which copyright owners may
receive reasonable notice of the use of their works
under this section, and under which records of such
use shall be kept and made available by persons
making digital phonorecord deliveries.’’;
(3) in subparagraph (E)(i) in the first sentence
by striking ‘‘Librarian of Congress’’ and inserting
‘‘Copyright Royalty Adjudication Board’’; and
(4) in subparagraph (F) by striking ‘‘Librarian
of Congress’’ and inserting ‘‘ Copyright Royalty Ad-
judication Board, upon the approval of the Register
of Copyrights,’’.
(d) NEGOTIATED LICENSES FOR PUBLIC PERFORM-
ANCES BY MEANS OF COIN-OPERATED PHONORECORD
PLAYERS.—Section 116 of title 17, United States Code,
is amended—
(1) by amending subsection (b)(2) to read as
follows:
‘‘(2) RATE
ADJUSTMENT
PROCEEDING.—Par-
ties not subject to such a negotiation may determine,
by a rate adjustment proceeding in accordance with
the provisions of chapter 8, the terms and rates and
the division of fees described in paragraph (1).’’; and
(2) in subsection (c)—
(A) in the subsection heading by
striking ‘‘COPYRIGHT ROYALTY ARBITRA-
TION PANEL’’ and inserting ‘‘COPYRIGHT
ROYALTY ADJUDICATION BOARD’’; and
(B) by striking ‘‘a copyright arbitration
royalty panel’’ and inserting ‘‘the Copyright
Royalty Adjudication Board’’.
(e) USE OF CERTAIN WORKS IN CONNECTION WITH
NONCOMMERCIAL BROADCASTING.—Section 118 of title
17, United States Code, is amended—
(1) in subsection (b)—
(A) by striking paragraph (1) and redesig-
nating paragraphs (2) and (3) as paragraphs
(1) and (2), respectively;
(B) in paragraph (1), as so redesignated,
by striking ‘‘Librarian of Congress’’ and insert-
ing ‘‘Copyright Royalty Adjudication Board’’;
(C) in paragraph (2), as so redesignated—
(i) by striking ‘‘paragraph (2)’’ each
place it appears and inserting ‘‘paragraph
(1)’’;
(ii) by striking ‘‘Librarian of Con-
gress’’ the first place it appears and insert-
ing 
‘‘Copyright 
Royalty 
Adjudication
Board’’;
(iii) by striking ‘‘Librarian of Con-
gress’’ the second and third places it ap-
pears and inserting ‘‘Board’’; and
(iv) by striking ‘‘Librarian of Con-
gress’’ the last place it appears and insert-
ing ‘‘Board, upon the approval of the Reg-
ister of Copyrights,’’;
(2) in subsection (c)—
(A) by striking ‘‘1997’’ and inserting
‘‘2002’’; and
(B) by striking ‘‘Librarian of Congress’’
and inserting ‘‘Copyright Royalty Adjudication
Board, upon the approval of the Register of
Copyrights,’’;
(3) in subsection (d)—
(A) by striking ‘‘(b)(2)’’ and inserting
‘‘(b)(1)’’; and
(B) by striking ‘‘a copyright arbitration
royalty panel under subsection (b)(3)’’ and in-
serting ‘‘the Copyright Royalty Adjudication
Board under subsection (b)(2)’’; and
(4) in subsection (e), by striking paragraphs (1)
and (2).
(f) DIGITAL
AUDIO
RECORDING
DEVICES
AND
MEDIA.—
(1) ROYALTY PAYMENTS.—Section 1004(a)(3)
of title 17, United States Code, is amended in the
third sentence—
(A) by striking ‘‘the 6th year after the ef-
fective date of this chapter’’ and inserting
‘‘1998’’;
(B) by striking ‘‘Librarian of Congress’’
the first place it appears and inserting ‘‘Copy-
right Royalty Adjudication Board’’; and
(C) by striking ‘‘Librarian of Congress’’
the second place it appears and inserting
‘‘Board’’.
(2) ENTITLEMENT TO ROYALTY PAYMENTS.—
Section 1006(c) of title 17, United States Code, is
amended by striking ‘‘Librarian of Congress shall
convene a copyright arbitration royalty panel which’’
and inserting ‘‘Copyright Royalty Adjudication
Board’’.
(3) PROCEDURES FOR DISTRIBUTING ROYALTY
PAYMENTS.—Section 1007 of title 17, United States
Code, is amended—
(A) in subsection (a)(1)—
(i) by striking ‘‘after the calendar
year in which this chapter takes effect’’;
(ii) by striking ‘‘Librarian of Con-
gress’’ the first place it appears and insert-
ing 
‘‘Copyright 
Royalty 
Adjudication
Board’’; and
(iii) by striking ‘‘Librarian of Con-
gress’’ the second place it appears and in-
serting ‘‘Board’’;
(B) in subsection (b)—
(i) by amending the first sentence to
read as follows: ‘‘After the first day of
March of each year, the Copyright Royalty
Adjudication Board shall determine wheth-
er there exists a controversy concerning
the distribution of royalty payments under
section 1006(c).’’; and
(ii) by striking ‘‘Librarian of Con-
gress’’ each place it appears and inserting
‘‘Board’’; and
(C) in subsection (c)—
(A) by amending the first sentence to
read as follows: ‘‘If the Copyright Royalty
Adjudication Board finds the existence of a
controversy, the Board shall, pursuant to
chapter 8 of this title, conduct a proceed-
ing to determine the distribution of royalty
payments.’’;
(B) by striking ‘‘Librarian of Con-
gress’’ each place it appears and inserting
‘‘Board’’; and
(C) by striking ‘‘Librarian under this
section’’ and inserting ‘‘Board under this
section. The action of the Board to distrib-
ute royalty fees may precede the declara-
tion of a controversy if all parties to the
proceeding file a petition with the Board
requesting such distribution, except that
such amount may not exceed 50 percent of
the amounts on hand at the time of the re-
quest.’’.
(4) ADJUDICATION
OF
CERTAIN
DIS-
PUTES.—Section 1010 of title 17, United
States Code, is amended—
(A) by amending the section heading
to read as follows:
‘‘§ 1010. Adjudication of certain disputes’’;
(B) in subsection (a)—
(i) in the subsection heading by
striking ‘‘ARBITRATION’’ and inserting
‘‘ADJUDICATION’’; and
(ii) by striking ‘‘mutually agree
to binding arbitration for the purpose
of determining’’ and inserting ‘‘peti-
tion the Copyright Royalty Adjudica-
tion Board to determine’’;
(C) by striking subsection (b) and re-
designating subsections (c) and (d) as sub-
sections (b) and (c), respectively;
(D) in subsection (b), as so redesig-
nated, by striking ‘‘arbitration’’ each place
it appears and inserting ‘‘adjudication’’;
(E) by amending subsection (c), as so
redesignated, to read as follows:
‘‘(c) ADJUDICATION PROCEEDING.—The Copyright
Royalty Adjudication Board shall conduct an adjudication
proceeding with respect to the matter concerned, pursuant
to chapter 8 of this title. The parties to the proceeding
shall bear the entire costs thereof in such manner and pro-
portion as the Board shall direct.’’; and
(F) by striking subsections (e), (f),
and (g).
SEC. 10. TECHNICAL AMENDMENTS.
(a) CLERICAL AMENDMENT
TO CHAPTER 10 OF
TITLE 17, UNITED STATES CODE.—The item relating to
section 1010 in the table of contents for chapter 10 of
title 17, United States Code, is amended to read as fol-
lows:
‘‘1010. Adjudication of certain disputes.’’.
(b) CLERICAL AMENDMENT TO CHAPTER 9 OF TITLE
17, UNITED STATES CODE.—The item relating to section
903 in the table of contents for chapter 9 of title 17,
United States Code, is amended to read as follows:
‘‘903. Ownership, transfer, licensing, and recordation.’’.
(c) CLERICAL AMENDMENT TO TABLE OF CHAP-
TERS.—The item relating to chapter 6 in the table of
chapters for title 17, United States Code, is amended to
read as follows:
‘‘6. Manufacturing Requirements and Importation .............
601’’.
SEC. 11. RETRANSMISSION CONSENT.
Section 325(b) of the Communications Act of 1934
(47 U.S.C. 325(b)) is amended—
(1) by striking paragraphs (1) and (2) and in-
serting the following:
‘‘(b)(1) No cable system or other multichannel video
programming distributor shall retransmit the signal of a
broadcasting station, or any part thereof, except—
‘‘(A) with the express authority of the station;
‘‘(B) pursuant to section 614, in the case of a
station electing, in accordance with this subsection,
to assert the right to carriage under such section; or
‘‘(C) pursuant to section 337, in the case of a
station electing, in accordance with this subsection,
to assert the right to carriage under such section.
‘‘(2) The provisions of this subsection shall not apply
to—
‘‘(A) retransmission of the signal of a non-
commercial broadcasting station;
‘‘(B) retransmission of the signal of a supersta-
tion by a satellite carrier to subscribers for private
home viewing if the originating station was a super-
station on January 1, 1998;
‘‘(C) retransmission of the signal of a broad-
casting station that is owned or operated by, or af-
filiated with, a broadcasting network directly to a
home satellite antenna, if the household receiving
the signal is located in an area in which such station
may not assert its rights not to have its signal dupli-
cated under the Commission’s network nonduplica-
tion regulations; or
‘‘(D) retransmission by a cable operator or
other multichannel video programming distributor of
the signal of a superstation if such signal was ob-
tained from a satellite carrier and the originating
station was a superstation on January 1, 1998.’’;
‘‘(c) CHANNEL POSITIONING.—Each signal carried in
fulfillment of the carriage obligations of a satellite carrier
under this section shall be carried on the satellite carrier
channel number on which the local television broadcast
station is broadcast over the air, or on the channel on
which it was broadcast on January 1, 1985, or on the
channel it was broadcast on January 1, 1998, at the elec-
tion of the station, or on such other channel number as
is mutually agreed upon by the station and the satellite
carrier. Any dispute regarding the positioning of local tele-
vision broadcast stations shall be resolved by the Commis-
sion.
‘‘(d) COMPENSATION
FOR CARRIAGE.—A satellite
carrier shall not accept or request monetary payment or
other valuable consideration in exchange either for car-
riage of local television broadcast stations in fulfillment
of the requirements of this section or for channel position-
ing rights provided to such stations under this section, ex-
cept that any such station may be required to bear the
costs associated with delivering a good quality signal to
the principal headend of the satellite carrier.
‘‘(e) REMEDIES.—
‘‘(1) COMPLAINTS BY BROADCAST STATIONS.—
Whenever a local television broadcast station believes
that a satellite carrier has failed to meet its obliga-
tions under this section, such station shall notify the
carrier, in writing, of the alleged failure and identify
its reasons for believing that the satellite carrier is
obligated to carry the signal of such station or has
otherwise failed to comply with the channel position-
ing or repositioning or other requirements of this
section. The satellite carrier shall, within 30 days of
such written notification, respond in writing to such
notification and either commence to carry the signal
of such station in accordance with the terms re-
quested or state its reasons for believing that it is
not obligated to carry such signal or is in compliance
with the channel positioning and repositioning or
other requirements of this section. A local television
broadcast station that is denied carriage or channel
positioning or repositioning in accordance with this
section by a satellite carrier may obtain review of
such denial by filing a complaint with the Commis-
sion. Such complaint shall allege the manner in
which such satellite carrier has failed to meet its ob-
ligations and the basis for such allegations.
‘‘(2) OPPORTUNITY TO RESPOND.—The Com-
mission shall afford such satellite carrier and oppor-
tunity to present data and arguments to establish
clude a low-power or translator television broadcast
station.
‘‘(2) LOCAL MARKET.—The term ‘local market’
means the designated market area in which a station
is located and—
‘‘(A) for a commercial television broadcast
station located in any of the 150 largest des-
ignated market areas, all commercial television
broadcast stations licensed to a community
within the same designated market area are
within the same local market;
‘‘(B) for a commercial television broadcast
station that is located in a designated market
area that is not one of the 150 largest, the local
market includes, in addition to all commercial
television broadcast stations licensed to a com-
munity within the same designated market
area, any station that is significantly viewed, as
such term is defined in section 76.54 of the
Commission’s regulations (47 C.F.R. 76.54);
and
‘‘(C) for a noncommercial educational tele-
vision broadcast station, the local market in-
cludes any station that is licensed to a commu-
nity within the same designated market area as
the noncommercial educational television broad-
cast station.
‘‘(3) DESIGNATED MARKET AREA.—The term
‘designated market area’ means a designated market
area, as determined by the Nielsen Media Research
and published in the DMA Market and Demographic
Report.’’.
SEC. 13. NETWORK NONDUPLICATION; SYNDICATED EXCLU-
SIVITY AND SPORTS BLACKOUT.
(a) REGULATIONS.—
(1) IN GENERAL.—Within 45 days after the ef-
fective date of this Act, the Federal Communications
Commission shall commence a rulemaking to estab-
lish regulations that apply network nonduplication
protection, syndicated exclusivity protection, and
sports blackout protection to the retransmission of
broadcast signals by satellite carriers to subscribers
for private home viewing. To the extent possible,
such regulations shall, subject to paragraph (2), in-
clude the same level of protection accorded retrans-
missions of television broadcast signals by cable sys-
tems for network nonduplication (47 C.F.R. 76.92),
syndicated exclusivity (47 C.F.R. 151), and sports
blackout (47 C.F.R. 76.67).
(2) NETWORK NONDUPLICATION.—The network
nonduplication regulations required under paragraph
(1) shall allow a television broadcast station in any
local market to assert nonduplication rights—
(A) against a satellite carrier throughout
such local market if that satellite carrier re-
transmits to subscribers for private home view-
ing in such local market the signal of another
television broadcast station located within such
local market; or
(B) against all satellite carriers within the
zone in which the television broadcast station
may be received over-the-air, using conventional
consumer television receiving equipment, as de-
termined under regulations prescribed by the
Federal Communications Commission, but such
zone shall not extend beyond such local market
of such station.
(3) LOCAL MARKET DEFINED.—The term ‘‘local
market’’ has the meaning provided in section 337(g)
of the Communications Act of 1934, as added by
section 12 of this Act.
(b) DEFERRED APPLICABILITY OF AMENDMENTS TO
SECTION 119 OF TITLE 17, UNITED STATES CODE.—
Notwithstanding the amendments to section 119 of title
17, United States Code, made by this Act, until the regu-
lations regarding network nonduplication protection are
established under subsection (a), the statutory license
under subsection (a) of such section 119 for secondary
transmissions of primary transmissions of programming
contained in a primary transmission made by a network
station (as defined in section 119(d) of title 17, United
States Code, as in effect on the day before the effective
date of this Act) shall be limited to secondary trans-
missions to persons who reside in unserved households (as
defined in section 119(d) of title 17, United States Code,
as in effect on the day before the effective date of this
Act).
SEC. 14. EFFECTIVE DATE.
This Act and the amendments made by this Act shall
take effect on January 1, 1999.
Æ