undefined business model referred to in sub-
paragraph (A). 
(3) The rights signaling system— 
(A) may not be encoded so as to numeri-
cally limit copying as permitted under title II of 
a non-conditional access broadcast transmission 
and undefined business models that are com-
parable to a non-conditional access broadcast 
transmission; but 
(B) may be encoded so as to prevent redis-
tribution of any such non-conditional access 
broadcast transmission and comparable unde-
fined business models. 
(4)(A) During the 12-month period beginning 
on the effective date set forth in section 109, the 
VEIL portion of the rights signaling system may 
only be encoded in program formats described in 
paragraph (1). 
(B) After the end of that 12-month period, the 
VEIL portion of the rights signaling system may be 
encoded in any program format, except that, in any 
case in which a person encodes a program or causes 
a program to be encoded with the VEIL portion of 
the rights signaling system, that person shall also 
encode the program or cause the program to be en-
coded with the CGMS–A portion of the rights sig-
naling system. 
SEC. 104. TRANSMISSION OF RIGHTS SIGNALING SYSTEM. 
Any person making a transmission of a live event or 
an audiovisual work protected by copyright shall, upon the 
request of an owner or authorized licensee of the live event 
or copyrighted work, include in its transmission the rights 
signaling system for the transmission and shall not, with-
out the authorization of such owner or licensee, deactivate 
or alter the rights signaling system. The rights signaling 
system shall be applied in accordance with the request, 
but in no case with encoding restrictions in addition to 
those required by section 103. 
SEC. 105. IMPROVEMENTS TO VEIL. 
(a) ADOPTION
OF IMPROVEMENTS
TO VEIL.—If, 
upon the petition of any interested party, the Director of 
the Patent and Trademark Office determines that the 
VEIL portion of the rights signaling system has become 
materially ineffective in a way that cannot be adequately 
remedied by existing technical flexibility in the embedding 
function of the VEIL portion of the rights signaling sys-
tem, then the Director may by rule adopt commercially 
reasonable improvements to the detection function of the 
VEIL portion of the rights signaling system in order to 
maintain the functionality of the rights signaling system
under this Act. Any such improvements shall be limited 
to adjustments or upgrades solely to the same underlying 
VEIL technology of the existing rights signaling system. 
The Director shall conduct the rulemaking proceeding 
under this subsection on an expedited basis. 
(b) PARTICIPANTS.—In a rulemaking conducted 
under subsection (a), the Director of the Patent and 
Trademark Office shall encourage representatives of the 
film industry, the broadcast, cable, and satellite industry, 
the information technology industry, and the consumer 
electronics industry to negotiate in good faith in an effort 
to reach agreement on the commercially reasonable im-
provements to the detection function of the VEIL portion 
of the rights signaling system to be adopted in the rule. 
The Director shall ensure that such negotiation process 
is open and public and that all potentially affected parties 
are invited to participate in the process through public no-
tice. The Director shall cause any agreement for which 
there is substantial consensus of the parties on all material 
points to be published and shall take such agreement into 
account in any final rule adopted. 
(c) FACTORS.— 
(1) IN GENERAL.—In determining whether or 
not to adopt commercially reasonable improvements 
to the detection function of the VEIL portion of the