H. R. 4818—594
‘‘(II) Upon receiving a request under subclause (I),
the Librarian of Congress shall immediately provide public
notice of the royalty fees from the voluntary agreement
and afford parties an opportunity to state that they object
to those fees.
‘‘(III) The Librarian shall adopt the royalty fees from
the voluntary agreement for all satellite carriers, distribu-
tors, and copyright owners without convening an arbitra-
tion proceeding unless a party with an intent to participate
in the arbitration proceeding and a significant interest
in the outcome of that proceeding objects under subclause
(II).
‘‘(E) PERIOD AGREEMENT IS IN EFFECT.—The obligation
to pay the royalty fees established under a voluntary agree-
ment which has been filed with the Copyright Office in
accordance with this paragraph shall become effective on
the date specified in the agreement, and shall remain in
effect until December 31, 2009, or in accordance with the
terms of the agreement, whichever is later.
‘‘(F) FEE SET BY COMPULSORY ARBITRATION.—
‘‘(i) NOTICE OF INITIATION OF PROCEEDINGS.—On
or before May 1, 2005, the Librarian of Congress shall
cause notice to be published in the Federal Register
of the initiation of arbitration proceedings for the pur-
pose of determining the royalty fee to be paid for
the secondary transmission of primary analog trans-
mission of network stations and superstations under
subsection (b)(1)(B) by satellite carriers and distribu-
tors
‘‘(I) in the absence of a voluntary agreement
filed in accordance with subparagraph (D) that
establishes royalty fees to be paid by all satellite
carriers and distributors; or
‘‘(II) if an objection to the fees from a voluntary
agreement submitted for adoption by the Librarian
of Congress to apply to all satellite carriers,
distributors, and copyright owners is received
under subparagraph (D) from a party with an
intent to participate in the arbitration proceeding
and a significant interest in the outcome of that
proceeding.
Such arbitrary proceeding shall be conducted under
chapter 8 as in effect on the day before the date of
the enactment of the Copyright Royalty and Distribu-
tion Act of 2004.
‘‘(ii) ESTABLISHMENT OF ROYALTY FEES.—In deter-
mining royalty fees under this subparagraph, the copy-
right arbitration royalty panel appointed under chapter
8, as in effect on the day before the date of the enact-
ment of the Copyright Royalty and Distribution Act
of 2004 shall establish fees for the secondary trans-
missions of the primary analog transmission of network
stations and superstations that most clearly represent
the fair market value of secondary transmissions,
except that the Librarian of Congress and any copy-
right arbitration royalty panel shall adjust those fees
to account for the obligations of the parties under
H. R. 4818—595
any applicable voluntary agreement filed with the
Copyright Office pursuant to subparagraph (D). In
determining the fair market value, the panel shall
base its decision on economic, competitive, and
programming information presented by the parties,
including—
‘‘(I) the competitive environment in which such
programming is distributed, the cost of similar
signals in similar private and compulsory license
marketplaces, and any special features and condi-
tions of the retransmission marketplace;
‘‘(II) the economic impact of such fees on copy-
right owners and satellite carriers; and
‘‘(III) the impact on the continued availability
of secondary transmissions to the public.
‘‘(iii) PERIOD DURING WHICH DECISION OF ARBITRA-
TION PANEL OR ORDER OF LIBRARIAN EFFECTIVE.—The
obligation to pay the royalty fee established under
a determination which—
‘‘(I) is made by a copyright arbitration royalty
panel in an arbitration proceeding under this para-
graph and is adopted by the Librarian of Congress
under section 802(f), as in effect on the day before
the date of the enactment of the Copyright Royalty
and Distribution Act of 2004; or
‘‘(II) is established by the Librarian under sec-
tion 802(f) as in effect on the day before such
date of enactment shall be effective as of January
1, 2005.
‘‘(iv) PERSONS SUBJECT TO ROYALTY FEE.—The roy-
alty fee referred to in (iii) shall be binding on all
satellite carriers, distributors and copyright owners,
who are not party to a voluntary agreement filed with
the Copyright Office under subparagraph (D).
‘‘(2) APPLICABILITY AND DETERMINATION OF ROYALTY FEES
FOR DIGITAL SIGNALS.—The process and requirements for estab-
lishing the royalty fee payable under subsection (b)(1)(B) for
the secondary transmission of the primary digital transmissions
of network stations and superstations shall be the same as
that set forth in paragraph (1) for the secondary transmission
of the primary analog transmission of network stations and
superstations, except that—
‘‘(A) the initial fee under paragraph (1)(A) shall be
the rates set forth in section 298.3(b)(1) and (2) of title
37, Code of Federal Regulations, as in effect on the date
of the enactment of the Satellite Home Viewer Extension
and Reauthorization Act of 2004, reduced by 22.5 percent;
‘‘(B) the notice of initiation of arbitration proceedings
required in paragraph (1)(F)(i) shall be published on or
before December 31, 2005; and
‘‘(C) the royalty fees that are established for the sec-
ondary transmission of the primary digital transmission
of network stations and superstations in accordance with
to the procedures set forth in paragraph (1)(F)(iii) and
are payable under subsection (b)(1)(B)—
‘‘(i) shall be reduced by 22.5 percent; and
H. R. 4818—596
‘‘(ii) shall be adjusted by the Librarian of Congress
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 (for all con-
sumers and items) published by the Secretary of
Labor.’’.
(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 inserting ‘‘who are not eligible
to receive the transmission under this section’’; and
(C) in subparagraph (D), by striking ‘‘is for private
home viewing to an unserved household’’ and inserting
‘‘is to a subscriber who is eligible to receive the secondary
transmission under this section’’.
SEC. 104. STATUTORY LICENSE FOR SATELLITE RETRANSMISSION OF
LOW POWER TELEVISION STATIONS.
(a) IN GENERAL.—Section 119(a) of title 17, United States Code
(as amended by sections 102 and 103 of this Act), is further amended
by adding at the end the following:
‘‘(15) CARRIAGE OF LOW POWER TELEVISION STATIONS.—
‘‘(A) IN GENERAL.—Notwithstanding paragraph (2)(B),
and subject to subparagraphs (B) through (F) of this para-
graph, the statutory license provided for in paragraphs
(1) and (2) shall apply to the secondary transmission of
the primary transmission of a network station or a super-
station that is licensed as a low power television station,
to a subscriber who resides within the same local market.
‘‘(B) GEOGRAPHIC LIMITATION.—
‘‘(i) NETWORK STATIONS.—With respect to network
stations, secondary transmissions provided for in
subparagraph (A) shall be limited to secondary trans-
missions to subscribers who—
‘‘(I) reside in the same local market as the
station originating the signal; and
‘‘(II) reside within 35 miles of the transmitter
site of such station, except that in the case of
such a station located in a standard metropolitan
statistical area which has 1 of the 50 largest popu-
lations of all standard metropolitan statistical
areas (based on the 1980 decennial census of popu-
lation taken by the Secretary of Commerce), the
number of miles shall be 20.
‘‘(ii) SUPERSTATIONS.—With respect to supersta-
tions, secondary transmissions provided for in subpara-
graph (A) shall be limited to secondary transmissions
to subscribers who reside in the same local market
as the station originating the signal.
H. R. 4818—597
‘‘(C) NO
APPLICABILITY
TO
REPEATERS
AND
TRANS-
LATORS.—Secondary transmissions provided for in subpara-
graph (A) shall not apply to any low power television sta-
tion that retransmits the programs and signals of another
television station for more than 2 hours each day.
‘‘(D) 
ROYALTY
FEES.—Notwithstanding 
subsection
(b)(1)(B), a satellite carrier whose secondary transmissions
of the primary transmissions of a low power television
station are subject to statutory licensing under this section
shall have no royalty obligation for secondary transmissions
to a subscriber who resides within 35 miles of the trans-
mitter site of such station, except that in the case of such
a station located in a standard metropolitan statistical
area which has 1 of the 50 largest populations of all
standard metropolitan statistical areas (based on the 1980
decennial census of population taken by the Secretary of
Commerce), the number of miles shall be 20. Carriage
of a superstation that is a low power television station
within the station’s local market, but outside of the 35-
mile or 20-mile radius described in the preceding sentence,
shall be subject to royalty payments under subsection
(b)(1)(B).
‘‘(E) LIMITATION TO SUBSCRIBERS TAKING LOCAL-INTO-
LOCAL SERVICE.—Secondary transmissions provided for in
subparagraph (A) may be made only to subscribers who
receive secondary transmissions of primary transmissions
from that satellite carrier pursuant to the statutory license
under section 122, and only in conformity with the require-
ments under 340(b) of the Communications Act of 1934,
as in effect on the date of the enactment of the Satellite
Home Viewer Extension and Reauthorization Act of 2004.’’.
SEC. 105. DEFINITIONS.
Section 119(d) of title 17, United States Code, is amended—
(1) in paragraph (2)(A), by striking ‘‘a television broadcast
station’’ and inserting ‘‘a television station licensed by the Fed-
eral Communications Commission’’;
(2) by amending paragraph (9) to read as follows:
‘‘(9) SUPERSTATION.—The term ‘superstation’ means a tele-
vision station, other than a network station, licensed by the
Federal Communications Commission, that is secondarily trans-
mitted by a satellite carrier.’’;
(3) in paragraph (10)—
(A) in subparagraph (B), by striking ‘‘granted under
regulations established under section 339(c)(2) of the
Communications Act of 1934’’ and inserting ‘‘that meets
the standards of subsection (a)(14) whether or not the
waiver was granted before the date of the enactment of
the Satellite Home Viewer Extension and Reauthorization
Act of 2004’’; and
(B) in subparagraph (D), by striking ‘‘(a)(11)’’ and
inserting ‘‘(a)(12)’’; and
(4) by striking paragraphs (11) and (12) and inserting the
following:
‘‘(11) LOCAL
MARKET.—The term ‘local market’ has the
meaning given such term under section 122(j), except that
with respect to a low power television station, the term ‘local