IB 
Union Calendar No. 402 
108TH CONGRESS 
2D SESSION 
H. R. 4518 
[Report No. 108–660] 
To extend the statutory license for secondary transmissions under section 
119 of title 17, United States Code. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 4, 2004 
Mr. SMITH of Texas (for himself, Mr. CONYERS, and Mr. BERMAN) introduced 
the following bill; which was referred to the Committee on the Judiciary 
SEPTEMBER 7, 2004 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on June 4, 2004] 
A BILL 
To extend the statutory license for secondary transmissions 
under section 119 of title 17, United States Code. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the ‘‘Sat-
ellite Home Viewer Extension and Reauthorization Act of 
2004’’. 
(b) TABLE OF CONTENTS.— 
Sec. 1. Short title; table of contents. 
TITLE I—STATUTORY LICENSE FOR SATELLITE CARRIERS 
Sec. 101. Extension of authority. 
Sec. 102. Reporting of subscribers; significantly viewed and other signals; tech-
nical amendments. 
Sec. 103. Statutory license for satellite carriers outside local markets. 
Sec. 104. Waivers. 
Sec. 105. Study. 
Sec. 106. Effect on certain proceedings. 
Sec. 107. Expedited consideration of voluntary agreements to provide satellite sec-
ondary transmissions to local markets. 
TITLE I—STATUTORY LICENSE 
FOR SATELLITE CARRIERS 
SEC. 101. EXTENSION OF AUTHORITY. 
(a) IN GENERAL.— Section 4(a) of the Satellite Home 
Viewer Act of 1994 (17 U.S.C. 119 note; Public Law 103– 
369; 108 Stat. 3481) is amended by striking ‘‘December 31, 
2004’’ and inserting ‘‘December 31, 2009’’. 
(b) EXTENSION FOR CERTAIN SUBSCRIBERS.—Section 
119(e) of title 17, United States Code, is amended by strik-
ing ‘‘December 31, 2004’’ and inserting ‘‘December 31, 
2009’’.
SEC. 102. REPORTING OF SUBSCRIBERS; SIGNIFICANTLY 
VIEWED AND OTHER SIGNALS; TECHNICAL 
AMENDMENTS. 
Section 119(a) of title 17, United States Code, is 
amended— 
(1) in paragraph (1)— 
(A) in the paragraph heading, by striking 
‘‘AND PBS SATELLITE FEED’’; 
(B) in the first sentence, by striking ‘‘(3), 
(4), and (6)’’ and inserting ‘‘(5), (6), and (8)’’; 
(C) in the first sentence, by striking ‘‘or by 
the Public Broadcasting Service satellite feed’’; 
and 
(D) by striking the second sentence; 
(2) in paragraph (2)— 
(A) in subparagraph (A), by striking ‘‘(3), 
(4), (5), and (6)’’ and inserting ‘‘(5), (6), (7), 
and (8)’’; and 
(B) by striking subparagraph (C) and in-
serting the following: 
‘‘(C) EXCEPTIONS.— 
‘‘(i) STATES
WITH
SINGLE
FULL- 
POWER NETWORK STATION.—In a State in 
which there is licensed by the Federal Com-
munications Commission a single full- 
power station that was a network station on
January 1, 1995, the statutory license pro-
vided for in subparagraph (A) shall apply 
to the secondary transmission by a satellite 
carrier of the signal of that station to any 
subscriber in a community that is located 
within that State and that is not within the 
first 50 television markets as listed in the 
regulations of the Commission as in effect 
on such date (47 C.F.R. 76.51). 
‘‘(ii) 
CERTAIN
ADDITIONAL
STA-
TIONS.—The statutory license provided for 
in subparagraph (A) shall apply to the sec-
ondary transmission, by a satellite carrier 
to subscribers in no more than two counties 
in a State that are in local market prin-
cipally comprised of counties in another 
State, of the signals of any network station 
located in the capital of the State in which 
such counties are located, if the total num-
ber of television households in the two coun-
ties combined did not exceed 10,000 for the 
year 2003 according to Nielsen Media Re-
search. 
‘‘(D) SUBMISSION OF SUBSCRIBER LISTS TO 
NETWORKS.—
‘‘(i) INITIAL LISTS.—A satellite carrier 
that makes secondary transmissions of a 
primary transmission made by a network 
station pursuant to subparagraph (A) shall, 
90 days after commencing such secondary 
transmissions, submit to the network that 
owns or is affiliated with the network sta-
tion— 
‘‘(I) a list identifying (by name 
and street address, including county 
and zip code) all subscribers to which 
the satellite carrier makes secondary 
transmissions of that primary trans-
mission to subscribers in unserved 
households; and 
‘‘(II) a separate list, aggregated 
by designated market area (as defined 
in section 122(j)) (by name and street 
address, including county and zip 
code), which shall indicate those sub-
scribers being served pursuant to sub-
section (a)(3), relating to significantly 
viewed stations. 
‘‘(ii) MONTHLY LISTS.—After the sub-
mission of the initial lists under clause (i),
on the 15th of each month, the satellite car-
rier shall submit to the network— 
‘‘(I) a list identifying (by name 
and street address, including county 
and zip code) any persons who have 
been added or dropped as subscribers 
under clause (i)(I) since the last sub-
mission under clause (i); and 
‘‘(II) a separate list, aggregated 
by designated market area (by name 
and street address, including county 
and zip code), identifying those sub-
scribers whose service pursuant to sub-
section (a)(3), relating to significantly 
viewed stations, has been added or 
dropped. 
‘‘(iii) USE OF SUBSCRIBER INFORMA-
TION.—Subscriber information submitted by 
a satellite carrier under this subparagraph 
may be used only for purposes of moni-
toring compliance by the satellite carrier 
with this subsection. 
‘‘(iv) APPLICABILITY.—The submission 
requirements of this subparagraph shall 
apply to a satellite carrier only if the net-
work to whom the submissions are to be 
made places on file with the Register of 
Copyrights a document identifying the 
name and address of the person to whom 
such submissions are to be made. The Reg-
ister shall maintain for public inspection a 
file of all such documents.’’; 
(3) by striking paragraph (8); 
(4) by redesignating paragraphs (9) through (12) 
as paragraphs (10) through (13), respectively; 
(5) by redesignating paragraphs (3) through (7) 
as paragraphs (5) through (9), respectively; 
(6) by inserting after paragraph (2) the fol-
lowing: 
‘‘(3) SECONDARY
TRANSMISSIONS
OF
SIGNIFI-
CANTLY VIEWED SIGNALS.— 
‘‘(A) IN
GENERAL.—Notwithstanding the 
provisions of paragraph (2)(B), and subject to 
subparagraph (B) of this paragraph, the statu-
tory license provided for in paragraphs (1) and 
(2) shall apply to the secondary transmission of 
the signal of a network station or a superstation 
to a subscriber who resides outside the station’s 
local market (as defined in section 122(j)) but 
within a community in which the signal of that
station was determined by the Federal Commu-
nications Commission, on or before the date of 
the enactment of the Satellite Home Viewer Ex-
tension and Reauthorization Act of 2004, to be 
significantly viewed in accordance with the pro-
visions of section 76.54 of title 47, Code of Fed-
eral Regulations, as in effect on such date of en-
actment. 
‘‘(B) LIMITATION.—Subparagraph (A) shall 
apply only to secondary transmissions of net-
work stations and superstations to subscribers 
who receive secondary transmissions from a sat-
ellite carrier pursuant to the statutory license 
under section 122.’’; and 
(7) in paragraph (2)(B)(i), by adding at the end 
the following new sentence: ‘‘The limitation in this 
clause shall not apply to secondary transmissions 
under paragraph (3).’’. 
SEC. 103. STATUTORY LICENSE FOR SATELLITE CARRIERS 
OUTSIDE LOCAL MARKETS. 
Section 119 of title 17, United States Code, is amended 
as follows: 
(1) Subsection (a) is amended by inserting after 
paragraph (3), as added by section 102 of this Act, 
the following:
‘‘(4) STATUTORY
LICENSE
WHERE
RETRANS-
MISSIONS INTO LOCAL MARKET AVAILABLE.— 
‘‘(A) RULES FOR SUBSCRIBERS UNDER SUB-
SECTION (e).— 
‘‘(i) FOR THOSE RECEIVING DISTANT 
SIGNALS.—In the case of a subscriber of a 
satellite carrier who is eligible to receive the 
signal of a network station solely by reason 
of subsection (e) (in this subparagraph re-
ferred to as a ‘distant signal’), and who is 
receiving the distant signal of a network 
station on the date of the enactment of the 
Satellite Home Viewer Extension and Reau-
thorization Act of 2004, the following shall 
apply: 
‘‘(I) In a case in which the signal 
of a local network station affiliated 
with the same television network is 
made available by that satellite carrier 
to the subscriber pursuant to the statu-
tory license under section 122, the stat-
utory license under paragraph (2) 
shall apply only to secondary trans-
missions by that satellite carrier to 
that subscriber of the distant signal of
a station affiliated with the same tele-
vision network— 
‘‘(aa) if, within 60 days after 
receiving the notice of the satellite 
carrier under section 338(h) of the 
Communications Act of 1934, the 
subscriber elects to retain the dis-
tant signal; but 
‘‘(bb) only until such time as 
the subscriber elects to receive such 
local signal. 
‘‘(II) Notwithstanding subclause 
(I), the statutory license under para-
graph (2) shall not apply with respect 
to any subscriber who is eligible to re-
ceive the distant signal of a television 
network station solely by reason of sub-
section (e) and to whom subclause (I) 
applies unless the satellite carrier, 
within 60 days after the date of the en-
actment of the Satellite Home Viewer 
Extension and Reauthorization Act of 
2004, submits to that television net-
work a list, aggregated by designated
market area (as defined in section 
122(j)(2)(C)), that— 
‘‘(aa) identifies that sub-
scriber by name and address 
(street or RFD number, city, 
State, and zip code) and specifies 
the distant signals received by the 
subscriber; and 
‘‘(bb) states, to the best of the 
satellite carrier’s knowledge and 
belief, after having made diligent 
and good faith inquiries, that the 
subscriber is eligible under sub-
section (e) to receive the distant 
signals. 
‘‘(ii) FOR THOSE NOT RECEIVING DIS-
TANT
SIGNALS.—In the case of any sub-
scriber of a satellite carrier who is eligible 
to receive the distant signal of a network 
station solely by reason of subsection (e) 
and who did not receive a distant signal of 
a station affiliated with the same network 
on July 1, 2004, the statutory license under 
paragraph (2) shall not apply to secondary
transmissions by that satellite carrier to that 
subscriber of that distant signal. 
‘‘(B) RULES FOR OTHER SUBSCRIBERS.—In 
the case of a subscriber of a satellite carrier who 
is eligible to receive the signal of a network sta-
tion under the statutory license under paragraph 
(2) (in this subparagraph referred to as a ‘dis-
tant signal’), other than subscribers to whom 
subparagraph (A) applies, the following shall 
apply: 
‘‘(i) In a case in which the signal of a 
local network station affiliated with the 
same television network is made available 
by that satellite carrier, on January 1, 
2005, to the subscriber pursuant to the stat-
utory license under section 122, the statu-
tory license under paragraph (2) shall 
apply only to secondary transmissions by 
that satellite carrier to that subscriber of the 
distant signal of a station affiliated with 
the same television network if the sub-
scriber’s satellite carrier, within 60 days 
after such date, submits to that television 
network a list, aggregated by designated 
market 
area 
(as 
defined 
in 
section
122(j)(2)(C)), that identifies that subscriber 
by name and address (street or RFD num-
ber, city, State, and zip code) and specifies 
the distant signals received by the sub-
scriber. 
‘‘(ii) In a case in which the signal of 
a local network station affiliated with the 
same television network is not made avail-
able by that satellite carrier, on January 1, 
2005, to a subscriber pursuant to the statu-
tory license under section 122, the statutory 
license under paragraph (2) shall apply 
only to secondary transmissions by that sat-
ellite carrier of the distant signal of a sta-
tion affiliated with the same network to any 
person— 
‘‘(I) who is a subscriber of that 
satellite carrier on such date, or 
‘‘(II) who becomes a subscriber of 
that satellite carrier after such date but 
before the local signal is available, 
but only until such time as the subscriber 
elects to receive the local signal from that 
satellite carrier.
‘‘(C) FUTURE
APPLICABILITY.—The statu-
tory license under paragraph (2) shall not apply 
to the secondary transmission by a satellite car-
rier of a primary transmission of a network sta-
tion to a subscriber who— 
‘‘(i) does not receive such secondary 
transmission as of the date of the enactment 
of the Satellite Home Viewer Extension and 
Reauthorization Act of 2004; and 
‘‘(ii) resides in a local market where 
the satellite carrier makes available a net-
work station affiliated with the same tele-
vision network pursuant to the statutory li-
cense under section 122. 
‘‘(D) OTHER PROVISIONS NOT AFFECTED.— 
This paragraph shall not affect the applicability 
of the statutory license to secondary trans-
missions under paragraph (3) or to unserved 
households included under paragraph (12). 
‘‘(E) AVAILABLE
DEFINED.—For purposes 
of this paragraph, a local signal has been made 
available by a satellite carrier to a subscriber or 
person if the satellite carrier offers that local sig-
nal to other subscribers who reside in the same 
zipcode as that subscriber or person.’’.
(2) Subsection (b)(1) is amended by striking sub-
paragraph (B) and inserting the following: 
‘‘(B) a royalty fee for that 6-month period, 
computed by multiplying the total number of 
subscribers receiving each secondary trans-
mission of each superstation or network station 
during each calendar month by the appropriate 
rate in effect under this section.’’. 
(3) Subsection (b)(1) is further amended by add-
ing at the end the following flush sentence: 
‘‘Notwithstanding the provisions of subparagraph (B), 
a satellite carrier whose secondary transmissions are 
subject to statutory licensing under paragraph (1) or 
(2) of subsection (a) shall have no royalty obligation 
for secondary transmissions to a subscriber who re-
sides outside the station’s local market (as defined in 
section 122(j)(2)) but within a community in which 
the signal of that station was determined by the Fed-
eral Communications Commission, on or before the 
date of the enactment of the Satellite Home Viewer 
Extension and Reauthorization Act of 2004, to be sig-
nificantly viewed in accordance with the provisions of 
section 76.54 of title 47, Code of Federal Regulations, 
as in effect on such date of enactment.’’. 
(4) Subsection (c) is amended—
(A) by amending paragraph (1) to read as 
follows: 
‘‘(1) APPLICABILITY
AND
DETERMINATION
OF 
ROYALTY FEES.—The appropriate rate for purposes of 
determining the royalty fee under subsection (b)(1)(B) 
shall be the appropriate rate set forth in part 258 of 
title 37, Code of Federal Regulations, as in effect on 
the date of the enactment of the Satellite Home View-
er Extension and Reauthorization Act of 2004, as 
modified under this subsection.’’; 
(B) by striking paragraph (2); 
(C) in paragraph (3)— 
(i) by redesignating that paragraph as 
paragraph (2); 
(ii) in subparagraph (A)— 
(I) by striking ‘‘January 1, 
1997,’’ and inserting ‘‘January 1, 
2005,’’; and 
(II) by striking ‘‘who are not par-
ties to a voluntary agreement filed 
with the Copyright Office in accord-
ance with paragraph (2)’’; 
(iii) in subparagraph (C), by striking 
‘‘as provided’’ and all that follows through
‘‘later’’ and inserting ‘‘on January 1, 
2006’’; and 
(iv) by striking subparagraph (D); and 
(D) by striking paragraphs (4) and (5) and 
inserting the following: 
‘‘(3) COST OF LIVING ADJUSTMENT.—The royalty 
rates set forth in subsection (b)(1)(B), as adjusted 
under paragraph (2) of this subsection, shall be ad-
justed by the Librarian of Congress— 
‘‘(A) on January 1, 2005, to reflect any 
changes occurring during the period beginning 
on January 1, 2000, and ending on November 
30, 2004, in the cost of living as determined by 
the most recent Consumer Price Index (for all 
consumers and items) published by the Secretary 
of Labor during that period; and 
‘‘(B) on January 1, 2007, and on January 
1 of each year thereafter, to reflect any changes 
occurring during the preceding 12 months in the 
cost of living as determined by the most recent 
Consumer Price Index so published. 
‘‘(4) REDUCTIONS.—The rate of the royalty fee 
determined under paragraph (2)— 
‘‘(A) for superstations shall be reduced by 
30 percent; and
‘‘(B) for network stations shall be reduced 
by 45 percent.’’. 
(5) Subsection (d) is amended— 
(A) by amending paragraph (9) to read as 
follows: 
‘‘(9) SUPERSTATION.—The term ‘superstation’ 
means a television broadcast station, other than a 
network station, licensed by the Federal Communica-
tions Commission that is secondarily transmitted by 
a satellite carrier.’’; 
(B) in paragraph (10)(D), by striking 
‘‘(a)(11)’’ and inserting ‘‘(a)(12)’’; and 
(C) by striking paragraph (12). 
(6) Subsection (a)(7), as redesignated by section 
102(5) of this Act, is amended— 
(A) in subparagraph (A), by striking ‘‘who 
does not reside in an unserved household’’ and 
inserting ‘‘who is not eligible to receive the 
transmission under this section’’; 
(B) in subparagraph (B), by striking ‘‘who 
do not reside in unserved households’’ and insert-
ing ‘‘who are not eligible to receive the trans-
mission under this section’’; and 
(C) in subparagraph (D), by striking ‘‘is 
for private home viewing to an unserved house-
hold’’ and inserting ‘‘is to a subscriber who is el-
igible to receive the transmission under this sec-
tion’’. 
SEC. 104. WAIVERS. 
Section 119(a) of title 17, United States Code, is 
amended by adding at the end the following new paragraph: 
‘‘(14) WAIVERS.—A subscriber who is denied the 
secondary transmission of a network station under 
paragraph (4)(C), or is denied the secondary trans-
mission of a network station or a superstation under 
paragraph (3)(B), may request a waiver from such 
denial by submitting a request, through the sub-
scriber’s satellite carrier, to the network station or 
superstation in the local market where the subscriber 
is located. The network station or superstation shall 
accept or reject the subscriber’s request for a waiver 
within 30 days after receipt of the request. If the net-
work station or superstation fails to accept or reject 
the subscriber’s request for a waiver within that 30- 
day period, that network station or superstation, as 
the case may be, shall be deemed to agree to the waiv-
er request. Unless specifically stated by the network 
station or superstation, a waiver under section 
339(c)(2) of the Communications Act shall not con-
stitute a waiver for purposes of this paragraph.’’.
SEC. 105. STUDY. 
No later than June 30, 2008, the Register of Copy-
rights shall report to the Committee on the Judiciary of 
the House of Representatives and the Committee on the Ju-
diciary of the Senate the Register’s findings and rec-
ommendations on the operation and revision of the statu-
tory licenses under sections 111, 119, and 122 of title 17, 
United States Code. The report should include, but not be 
limited to, the following: 
(1) A comparison of the royalties paid by licens-
ees under such sections, including historical rates of 
increases in these royalties, a comparison between the 
royalties under each such section and the prices paid 
in the marketplace for comparable programming. 
(2) An analysis of the differences in the terms 
and conditions of the licenses under such sections, an 
analysis of whether these differences are required or 
justified by historical, technological, or regulatory dif-
ferences that affect the satellite and cable industries, 
and an analysis of whether either the cable or satellite 
industry is placed in a competitive disadvantage due 
to these terms and conditions. 
(3) An analysis of whether the licenses under 
such sections are still justified by the bases upon 
which they were originally created.
(4) An analysis of the correlation, if any, be-
tween the royalties, or lack thereof, under such sec-
tions and the fees charged to cable and satellite sub-
scribers, addressing whether cable and satellite com-
panies have passed to subscribers any savings realized 
as a result of the royalty structure and amounts 
under such sections. 
SEC. 106. EFFECT ON CERTAIN PROCEEDINGS. 
Nothing in this title shall modify any remedy imposed 
on a party that is required by the judgment of a court in 
any action that was brought before May 1, 2004, against 
that party for a violation of section 119 of title 17, United 
States Code. 
SEC. 107. EXPEDITED CONSIDERATION OF VOLUNTARY 
AGREEMENTS TO PROVIDE SATELLITE SEC-
ONDARY TRANSMISSIONS TO LOCAL MAR-
KETS. 
Section 119 of title 17, United States Code, is amended 
by adding at the end the following: 
‘‘(f) EXPEDITED CONSIDERATION
BY JUSTICE DE-
PARTMENT OF VOLUNTARY AGREEMENTS TO PROVIDE SAT-
ELLITE
SECONDARY
TRANSMISSIONS
TO
LOCAL
MAR-
KETS.— 
‘‘(1) IN GENERAL.—In a case in which no sat-
ellite carrier makes available, to subscribers located in
a local market, as defined in section 122(j)(2), the 
secondary transmission into that market of a pri-
mary transmission of one or more television broadcast 
stations licensed by the Federal Communications 
Commission, and two or more satellite carriers re-
quest a business review letter in accordance with sec-
tion 50.6 of title 28, Code of Federal Regulations (as 
in effect on July 7, 2004), in order to assess the legal-
ity under the antitrust laws of proposed business con-
duct to make or carry out an agreement to provide 
such secondary transmission into such local market, 
the appropriate official of the Department of Justice 
shall respond to the request no later than 90 days 
after the date on which the request is received. 
‘‘(2) DEFINITION.—For purposes of this sub-
section, the term ‘antitrust laws’— 
‘‘(A) has the meaning given that term in 
subsection (a) of the first section of the Clayton 
Act (15 U.S.C. 12(a)), except that such term in-
cludes section 5 of the Federal Trade Commis-
sion Act (15 U.S.C. 45) to the extent such section 
5 applies to unfair methods of competition; and 
‘‘(B) includes any State law similar to the 
laws referred to in paragraph (1).’’.
Union Calendar No. 402 
108TH CONGRESS 
2D SESSION 
H. R. 4518 
[Report No. 108–660] 
A BILL 
To extend the statutory license for secondary trans-
missions under section 119 of title 17, United 
States Code. 
SEPTEMBER 7, 2004 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed