under sections 502 through 506 and 509, if the satellite car-
rier has not complied with the reporting requirements of
subsection (b).
‘‘(e) WILLFUL ALTERATIONS.—Notwithstanding sub-
section (a), the secondary transmission to the public by a
satellite carrier into the local market of a television broad-
cast station of a primary transmission made by that tele-
vision broadcast station and embodying a performance or
display of a work is actionable as an act of infringement
under section 501, and is fully subject to the remedies pro-
vided by sections 502 through 506 and sections 509 and
510, if the content of the particular program in which the
performance or display is embodied, or any commercial ad-
vertising or station announcement transmitted by the pri-
mary transmitter during, or immediately before or after,
the transmission of such program, is in any way willfully
altered by the satellite carrier through changes, deletions,
or additions, or is combined with programming from any
other broadcast signal.
‘‘(f) VIOLATION OF TERRITORIAL RESTRICTIONS ON
STATUTORY LICENSE FOR TELEVISION BROADCAST STA-
TIONS.—
‘‘(1) INDIVIDUAL VIOLATIONS.—The willful or re-
peated secondary transmission to the public by a sat-
ellite carrier of a primary transmission made by a
television broadcast station and embodying a per-
formance or display of a work to a subscriber who
does not reside in that station’s local market, and is
not subject to statutory licensing under section 119,
is actionable as an act of infringement under section
501 and is fully subject to the remedies provided by
sections 502 through 506 and 509, except that—
‘‘(A) no damages shall be awarded for such
act of infringement if the satellite carrier took
corrective action by promptly withdrawing serv-
ice from the ineligible subscriber; and
‘‘(B) any statutory damages shall not exceed
$5 for such subscriber for each month during
which the violation occurred.
‘‘(2) PATTERN
OF
VIOLATIONS.—If a satellite
carrier engages in a willful or repeated pattern or
practice of secondarily transmitting to the public a
primary transmission made by a television broadcast
station and embodying a performance or display of a
work to subscribers who do not reside in that station’s
local market, and are not subject to statutory licens-
ing under section 119, then in addition to the rem-
edies under paragraph (1)—
‘‘(A) if the pattern or practice has been car-
ried out on a substantially nationwide basis, the
court shall order a permanent injunction barring
the secondary transmission by the satellite car-
rier of the primary transmissions of that tele-
vision broadcast station (and if such television
broadcast station is a network station, all other
television broadcast stations affiliated with such
network), and the court may order statutory
damages not exceeding $250,000 for each 6-
month period during which the pattern or prac-
tice was carried out; and
‘‘(B) if the pattern or practice has been car-
ried out on a local or regional basis with respect
to more than one television broadcast station
(and if such television broadcast station is a net-
work station, all other television broadcast sta-
tions affiliated with such network), the court
shall order a permanent injunction barring the
secondary transmission in that locality or region
by the satellite carrier of the primary trans-
missions of any television broadcast station, and
the court may order statutory damages not ex-
ceeding $250,000 for each 6-month period during
which the pattern or practice was carried out.
‘‘(g) BURDEN
OF PROOF.—In any action brought
under subsection (d), (e), or (f), the satellite carrier shall
have the burden of proving that its secondary transmission
of a primary transmission by a television broadcast station
is made only to subscribers located within that station’s
local market.
‘‘(h) GEOGRAPHIC
LIMITATIONS
ON
SECONDARY
TRANSMISSIONS.—The statutory license created by this sec-
tion shall apply to secondary transmissions to locations in
the United States, and any commonwealth, territory, or
possession of the United States.
‘‘(i) EXCLUSIVITY WITH RESPECT
TO SECONDARY
TRANSMISSIONS OF BROADCAST STATIONS BY SATELLITE
TO MEMBERS OF THE PUBLIC.—No provision of section 111
or any other law (other than this section and section 119)
shall be construed to contain any authorization, exemption,
or license through which secondary transmissions by sat-
ellite carriers of programming contained in a primary
transmission made by a television broadcast station may
be made without obtaining the consent of the copyright
owner.
‘‘(j) DEFINITIONS.—In this section—
‘‘(1) 
DISTRIBUTOR.—The 
term 
‘distributor’
means an entity which contracts to distribute sec-
ondary transmissions from a satellite carrier and, ei-
ther as a single channel or in a package with other
programming, provides the secondary transmission
either directly to individual subscribers or indirectly
through other program distribution entities.
‘‘(2) LOCAL MARKET.—The ‘local market’ of a
television broadcast station has the meaning given
that term under rules, regulations, and authorizations
of the Federal Communications Commission relating
to carriage of television broadcast signals by satellite
carriers.
‘‘(3) NETWORK
STATION; SATELLITE
CARRIER;
SECONDARY TRANSMISSION.—The terms ‘network sta-
tion’, ‘satellite carrier’ and ‘secondary transmission’
have the meanings given such terms under section
119(d).
‘‘(4) SUBSCRIBER.—The term ‘subscriber’ means
an entity that receives a secondary transmission serv-
ice by means of a secondary transmission from a sat-
ellite and pays a fee for the service, directly or indi-
rectly, to the satellite carrier or to a distributor.
‘‘(5) TELEVISION
BROADCAST
STATION.—The
term ‘television broadcast station’ means an over-the-
air, commercial or noncommercial television broad-
cast station licensed by the Federal Communications
Commission under subpart E of part 73 of title 47,
Code of Federal Regulations.’’.
(b) INFRINGEMENT OF COPYRIGHT.—Section 501 of
title 17, United States Code, is amended by adding at the
end the following new subsection:
‘‘(f) With respect to any secondary transmission that
is made by a satellite carrier of a primary transmission
embodying the performance or display of a work and is ac-
tionable as an act of infringement under section 122, a tele-
vision broadcast station holding a copyright or other license
to transmit or perform the same version of that work shall,
for purposes of subsection (b) of this section, be treated as
a legal or beneficial owner if such secondary transmission
occurs within the local market of that station.’’.
(c) TECHNICAL AND CONFORMING AMENDMENTS.—The
table of sections for chapter 1 of title 17, United States
Code, is amended by adding after the item relating to sec-
tion 121 the following:
‘‘122. Limitations on exclusive rights; secondary transmissions by satellite car-
riers within local market.’’.
SEC. 3. EXTENSION OF EFFECT OF AMENDMENTS TO SEC-
TION 119 OF TITLE 17, UNITED STATES CODE.
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, 1999’’ and inserting
‘‘December 31, 2004’’.
SEC. 4. COMPUTATION OF ROYALTY FEES FOR SATELLITE
CARRIERS.
Section 119(c) of title 17, United States Code, is
amended by adding at the end the following new paragraph:
‘‘(4) REDUCTION.—
‘‘(A) SUPERSTATION.—The rate of the roy-
alty fee in effect on January 1, 1998, payable in
each case under subsection (b)(1)(B)(i) shall be
reduced by 30 percent.
‘‘(B) NETWORK.—The rate of the royalty fee
in effect on January 1, 1998, payable under sub-
section (b)(1)(B)(ii) shall be reduced by 45 per-
cent.
‘‘(5) 
PUBLIC
BROADCASTING
SERVICE
AS
AGENT.—For purposes of section 802, with respect to
royalty fees paid by satellite carriers for retransmit-
ting the Public Broadcasting Service satellite feed, the
Public Broadcasting Service shall be the agent for all
public television copyright claimants and all Public
Broadcasting Service member stations.’’.
SEC. 5. PUBLIC BROADCASTING SERVICE SATELLITE FEED;
DEFINITIONS.
(a) SECONDARY TRANSMISSIONS.—Section 119(a)(1)
of title 17, United States Code, is amended—
(1) by striking the paragraph heading and in-
serting ‘‘(1) SUPERSTATIONS
AND
PBS
SATELLITE
FEED.—’’;
(2) by inserting ‘‘or by the Public Broadcasting
Service satellite feed’’ after ‘‘superstation’’; and
(3) by adding at the end the following: ‘‘In the
case of the Public Broadcasting Service satellite feed,
subsequent to—
‘‘(A) the date when a majority of sub-
scribers to satellite carriers are able to receive the
signal of at least one noncommercial educational
television broadcast station from their satellite
carrier within such stations’ local market, or
‘‘(B) 2 years after the effective date of the
Copyright Compulsory License Improvement Act,
whichever is earlier, the statutory license created by
this section shall be conditioned on the Public Broad-
casting Service certifying to the Copyright Office on
an annual basis that its membership supports the sec-
ondary transmission of the Public Broadcasting Serv-
ice satellite feed, and providing notice to the satellite
carrier of such certification.’’.
(b) DEFINITIONS.—Section 119(d) of title 17, United
States Code, is amended by adding at the end the following:
‘‘(12) PUBLIC
BROADCASTING
SERVICE
SAT-
ELLITE FEED.—The term ‘Public Broadcasting Serv-
ice satellite feed’ means the national satellite feed dis-
tributed by the Public Broadcasting Service con-
sisting of educational and informational program-
ming intended for private home viewing, to which the
Public Broadcasting Service holds national terrestrial
broadcast rights.
‘‘(13) LOCAL MARKET.—The term ‘local market’
has the meaning given that term in section 122(j)(2).
‘‘(14) TELEVISION
BROADCAST
STATION.—The
term ‘television broadcast station’ has the meaning
given that term in section 122(j)(5).’’.
SEC. 6. LOCAL TO LOCAL RETRANSMISSIONS.
Section 119 of title 17, United States Code, is
amended—
(1) in subsection (a)—
(A) in paragraph (1), by striking ‘‘(6)’’ and
inserting ‘‘(5)’’;
(B) in paragraph (2)—
(i) by striking
‘‘(2) NETWORK STATIONS.—
‘‘(A) IN GENERAL.—Subject to the provi-
sions of subparagraphs (B) and (C) of this para-
graph and paragraphs (3), (4), (5), and (6)’’
and inserting
‘‘(2) NETWORK STATIONS.—Subject to the provi-
sions of paragraphs (3), (4), and (5)’’ and running
in the remaining text of the subparagraph;
(ii) by adding at the end of paragraph
(2) the following: ‘‘Notwithstanding the pre-
ceding provisions of this paragraph, sec-
ondary transmissions of programming con-
tained in a primary transmission made by
a network station and embodying a per-
formance or display of a work shall not be
subject to statutory licensing under this sec-
tion in a local market in which the satellite
carrier, or another satellite carrier, is serv-
ing subscribers in that market with 2 or
more television broadcast stations located in
that market pursuant to section 122.’’; and
(iii) by striking subparagraphs (B)
and (C);
(C) in paragraph (3), by striking ‘‘, or has
failed to make the submissions to networks re-
quired by paragraph (2)(C)’’; and
(D) by striking paragraphs (5), (8), (9),
and (10) and redesignating paragraphs (6) and
(7) as paragraphs (5) and (6), respectively; and
(2) in subsection (d), by striking paragraphs
(10) and (11).
SEC. 7. APPLICATION OF FEDERAL COMMUNICATIONS COM-
MISSION REGULATIONS.
Section 119(a) of title 17, United States Code, is
amended—
(1) in paragraph (1), by inserting ‘‘the satellite
carrier is in compliance with the rules, regulations,
or authorizations of the Federal Communications
Commission governing the carriage of television
broadcast station signals,’’ after ‘‘satellite carrier to
the public for private home viewing,’’; and
(2) in paragraph (2), by inserting ‘‘the satellite
carrier is in compliance with the rules, regulations,
or authorizations of the Federal Communications
Commission governing the carriage of television
broadcast station signals,’’ after ‘‘satellite carrier to
the public for private home viewing,’’.
SEC. 8. 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 television
broadcast station outside the station’s local market by
a satellite carrier directly to its subscribers, if—
‘‘(i) such station was a superstation on May
1, 1991; and
‘‘(ii) as of July 1, 1998, such station was
retransmitted by a satellite carrier under the
statutory license provided in section 119 of title
17, United States Code;
‘‘(C) retransmission of the signal of a broad-
casting station that is owned or operated by, or affili-