(A) by striking ‘‘The Register of Copy-
rights’’ and inserting the following ‘‘HANDLING 
OF FEES.—The Register of Copyrights’’; and 
(B) by inserting ‘‘(including the filing fee 
specified in paragraph (1)(G))’’ after ‘‘shall re-
ceive’’; 
(3) in paragraph (3)— 
(A) by striking ‘‘The royalty fees’’ and in-
serting the following: ‘‘DISTRIBUTION OF ROY-
ALTY FEES TO COPYRIGHT OWNERS.—The roy-
alty fees’’; 
(B) in subparagraph (A)— 
(i) by striking ‘‘any such’’ and insert-
ing ‘‘Any such’’; and 
(ii) by striking ‘‘; and’’ and inserting 
a period; 
(C) in subparagraph (B)— 
(i) by striking ‘‘any such’’ and insert-
ing ‘‘Any such’’; and 
(ii) by striking ‘‘; and’’ the semicolon 
and inserting a period; and 
(D) in subparagraph (C), by striking ‘‘any 
such’’ and inserting ‘‘Any such’’; 
(4) in paragraph (4), by striking ‘‘The royalty 
fees’’ and inserting the following: ‘‘PROCEDURES 
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FOR
ROYALTY
FEE
DISTRIBUTION.—The royalty 
fees’’; and 
(5) by adding at the end the following new 
paragraphs: 
‘‘(5) VERIFICATION
OF
ACCOUNTS
AND
FEE 
PAYMENTS.—The Register of Copyrights shall issue 
regulations 
to 
provide 
for 
the 
confidential 
verification and audit of the information reported on 
the semi-annual statement of account filed after the 
date of the enactment of the Satellite Home Viewer 
Update and Reauthorization Act of 2009. The regu-
lations shall provide for a single verification proce-
dure, with respect to the semi-annual statements of 
account filed by a cable system, to be conducted by 
a qualified independent auditor on behalf of all copy-
right owners whose works were the subject of a sec-
ondary transmission to the public by a cable system 
of a performance or display of a work embodied in 
a primary transmission and for a mechanism to re-
view and cure defects identified by any such audit. 
‘‘(6) ACCEPTANCE OF ADDITIONAL DEPOSITS.— 
Any royalty fee payments received by the Copyright 
Office from cable systems for the secondary trans-
mission of primary transmissions that are in addi-
tion to the payments calculated and deposited in ac-
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cordance with this subsection shall be deemed to 
have been deposited for the particular accounting pe-
riod during for which they are received and shall be 
distributed as specified under this subsection.’’. 
(d) EFFECTIVE
DATE
OF
NEW
ROYALTY
FEE 
RATES.—The royalty fee rates established in section 
111(d)(1)(B) of title 17, United States Code, as amended 
by subsection (c)(1)(C) of this section, shall take effect com-
mencing with the first accounting period occurring in 2010. 
(d) (e) DEFINITIONS.—Section 111(f) is amended— 
(1) in the first undesignated paragraph, by 
striking ‘‘A ‘primary transmission’ is a trans-
mission’’ and inserting the following: 
‘‘(1) PRIMARY
TRANSMISSION.—A ‘primary 
transmission’ 
is 
a 
transmission, 
including 
a 
multicast transmission,’’; 
(2) in the second undesignated paragraph— 
(A) by striking ‘‘A ‘secondary trans-
mission’ ’’ and inserting the following: 
‘‘(2) SECONDARY TRANSMISSION.—A ‘secondary 
transmission’ ’’; and 
(B) by striking ‘‘ ‘cable system’ ’’ and in-
serting ‘‘cable system’’; 
(3) in the third undesignated paragraph— 
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(A) by striking ‘‘A ‘cable system’ ’’ and in-
serting the following: 
‘‘(3) CABLE SYSTEM.—A ‘cable system’ ’’; and 
(B) by striking ‘‘Territory, Trust Terri-
tory, or Possession’’ and inserting ‘‘territory, 
trust territory, or possession of the United 
States’’; 
(4) in the fourth undesignated paragraph— 
(A) in the first sentence, by striking ‘‘The 
‘local service area of a primary transmitter’ ’’ 
and inserting the following: 
‘‘(4) LOCAL
SERVICE
AREA
OF
A
PRIMARY 
TRANSMITTER.—The ‘local service area of a primary 
transmitter’ ’’; 
(B) by striking ‘‘76.59 of title 47 of the 
Code of Federal Regulations’’ and inserting the 
following: ‘‘76.59 of title 47, Code of Federal 
Regulations, or within the noise-limited contour 
as defined in 73.622(e)(1) of title 47, Code of 
Federal Regulations’’; and 
(C) by striking ‘‘as defined by the rules 
and regulations of the Federal Communications 
Commission,’’; 
(5) by amending the fifth undesignated para-
graph to read as follows: 
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‘‘(5) DISTANT SIGNAL EQUIVALENT.— 
‘‘(A) IN
GENERAL.—Except as provided 
under subparagraph (B), a ‘distant signal 
equivalent’— 
‘‘(i) is the value assigned to the sec-
ondary transmission of any non-network 
television programming carried by a cable 
system in whole or in part beyond the local 
service area of the primary transmitter of 
such programming; and 
‘‘(ii) is computed by assigning a value 
of one to each channel or digital steam 
stream carrying independent television pro-
gramming, and a value of one-quarter to 
each channel or digital stream carrying 
network television programming or non-
commercial educational television program-
ming transmitted by a television broadcast 
station pursuant to the rules, regulations, 
and authorizations of the Federal Commu-
nications Commission. 
‘‘(B) EXCEPTIONS.—The values for inde-
pendent, network, and noncommercial edu-
cational programming specified in subparagraph 
(A) are subject to the following: 
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‘‘(i) Where the rules and regulations 
of the Federal Communications Commis-
sion require a cable system to omit the fur-
ther transmission of a particular program 
and such rules and regulations also permit 
the substitution of another program em-
bodying a performance or display of a 
work in place of the omitted transmission, 
or where such rules and regulations in ef-
fect on the date of enactment of the Copy-
right Act of 1976 permit a cable system, 
at its election, to effect such omission and 
substitution of a nonlive program or to 
carry additional programs not transmitted 
by primary transmitters within whose local 
service area the cable system is located, no 
value shall be assigned for the substituted 
or additional program. 
‘‘(ii) Where the rules, regulations, or 
authorizations of the Federal Communica-
tions Commission in effect on the date of 
enactment of the Copyright Act of 1976 
permit a cable system, at its election, to 
omit the further transmission of a par-
ticular program and such rules, regula-
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tions, or authorizations also permit the 
substitution of another program embodying 
a performance or display of a work in 
place of the omitted transmission, the 
value assigned for the substituted or addi-
tional program shall be, in the case of a 
live program, the value of one full distant 
signal equivalent multiplied by a fraction 
that has as its numerator the number of 
days in the year in which such substitution 
occurs and as its denominator the number 
of days in the year. 
‘‘(iii) In the case of a channel or dig-
ital stream carried pursuant to the late- 
night or specialty programming rules of 
the Federal Communications Commission, 
or a channel or digital stream carried on a 
part-time basis where full-time carriage is 
not possible because the cable system lacks 
the activated channel capacity to re-
transmit on a full-time basis all signals 
that it is authorized to carry, the values 
for independent, network, and noncommer-
cial educational programming set forth in 
subparagraph (A), as the case may be, 
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shall be multiplied by a fraction that is 
equal to the ratio of the broadcast hours of 
such channel or digital stream carried by 
the cable system to the total broadcast 
hours of the channel or digital stream.’’; 
(6) in the sixth undesignated paragraph— 
(A) by striking ‘‘A ‘network station’ ’’ and 
inserting the following: 
‘‘(6) NETWORK STATION.— 
‘‘(A) IN GENERAL.—A ‘network station’ ’’; 
and 
(B) by adding at the end the following: 
‘‘(B) NETWORK PROGRAMMING.—The term 
‘network television programming’ means pro-
gramming that is transmitted by a network sta-
tion.’’; 
(7) by striking the seventh undesignated para-
graph and inserting the following: 
‘‘(7) INDEPENDENT STATION.— 
‘‘(A) IN GENERAL.—An ‘independent sta-
tion’ is a commercial television broadcast sta-
tion other than a network station. 
‘‘(B) INDEPENDENT PROGRAMMING.—The 
term 
‘independent 
television 
programming’ 
means all programming other than ‘network tel-
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evision programming’ or ‘noncommercial edu-
cational television programming’.’’; 
(8) by striking the eighth undesignated para-
graph and inserting the following: 
‘‘(8) 
NONCOMMERCIAL
EDUCATIONAL
STA-
TION.— 
‘‘(A) IN
GENERAL.—A ‘noncommercial 
educational station’ is a television or radio 
broadcast station that— 
‘‘(i) under the rules and regulations of 
the Federal Communications Commission 
in effect on November 2, 1978, is eligible 
to be licensed by the Federal Communica-
tions Commission as a noncommercial edu-
cational radio or television broadcast sta-
tion and that is owned and operated by a 
public agency or nonprofit private founda-
tion, corporation, or association; or 
‘‘(ii) is owned and operated by a mu-
nicipality and that transmits only non-
commercial programs for education pur-
poses. 
‘‘(B) NONCOMMERCIAL EDUCATIONAL PRO-
GRAMMING.—The term ‘noncommercial edu-
cational television programming’ means pro-
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gramming that is transmitted by a noncommer-
cial educational station.’’; and 
(9) by adding at the end the following: 
‘‘(9) MULTICAST TRANSMISSION.—A ‘multicast 
transmission’ is a transmission by a television sta-
tion that contains more than one channel or digital 
stream, each containing its own distinct program-
ming. 
‘‘(10) SUBSCRIBER.—The term ‘subscriber’ 
means a person or entity that receives a secondary 
transmission service from a cable system and pays 
a fee for the service, directly or indirectly, to the 
cable system.’’. 
(e) (f) TIMING OF SECTION 111 PROCEEDINGS.— 
Section 804(b)(1) is amended by striking ‘‘2005’’ each 
place it appears and inserting ‘‘2015’’. 
(f)
(g) TECHNICAL
AND
CONFORMING
AMEND-
MENTS.— 
(1) CORRECTIONS
TO
FIX
LEVEL
DESIGNA-
TIONS.—Section 111 is amended— 
(A) in subsections (a), (c), and (e), by 
striking ‘‘clause’’ each place it appears and in-
serting ‘‘paragraph’’; 
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(B) in subsection (c) subsection (c)(1), by 
striking ‘‘clauses’’ and inserting ‘‘paragraphs’’; 
and 
(C) in subsection (e)(1)(F), by striking 
‘‘subclause’’ each place it appears and inserting 
‘‘subparagraph’’. 
(2) CONFORMING AMENDMENT TO HYPHENATE 
NONNETWORK.—Section 111 is amended by striking 
‘‘nonnetwork’’ each place it appears and inserting 
‘‘non-network’’. 
(3) 
PREVIOUSLY
UNDESIGNATED
PARA-
GRAPH.—Section 111(e)(1) is amended by striking 
‘‘second paragraph of subsection (f)’’ and inserting 
‘‘subsection (f)(2)’’. 
(4) REMOVAL
OF
SUPERFLUOUS
ANDS.—Sec-
tion 111(e) is amended— 
(A) in paragraph (1)(A), by striking ‘‘and’’ 
at the end; 
(B) in paragraph (1)(B), by striking 
‘‘and’’ at the end; 
(C) in paragraph (1)(C), by striking ‘‘and’’ 
at the end; 
(D) in paragraph (1)(D), by striking 
‘‘and’’ at the end; and 
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(E) in paragraph (2)(A), by striking ‘‘and’’ 
at the end; 
(5) 
REMOVAL
OF
VARIANT
FORMS
REF-
ERENCES.—Section 111 is amended— 
(A) in subsection (e)(4), by striking ‘‘, and 
each of its variant forms,’’; and 
(B) in subsection (f), by striking ‘‘and 
their variant forms’’. 
(6) CORRECTION TO TERRITORY REFERENCE.— 
Section 111(e)(2) is amended in the matter pre-
ceding subparagraph (A) by striking ‘‘three terri-
tories’’ and inserting ‘‘five entities’’. 
SEC. 6. CERTAIN WAIVERS GRANTED TO PROVIDERS OF 
LOCAL-INTO-LOCAL SERVICE FOR ALL DMAS. 
Section 119 is amended by adding at the end the fol-
lowing new subsection: 
‘‘(g) CERTAIN WAIVERS GRANTED TO PROVIDERS OF 
LOCAL-INTO-LOCAL SERVICE TO ALL DMAS.— 
‘‘(1) INJUNCTION WAIVER.—A court that issued 
an injunction pursuant to subsection (a)(7)(B) be-
fore the date of the enactment of this subsection 
shall waive such injunction if the court recognizes 
the entity against which the injunction was issued as 
a qualified carrier. 
‘‘(2) LIMITED TEMPORARY WAIVER.— 
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‘‘(A) IN GENERAL.—Upon a request made 
by a satellite carrier, a court that issued an in-
junction against such carrier under subsection 
(a)(7)(B) before the date of the enactment of 
this subsection shall waive such injunction with 
respect to the statutory license provided under 
subsection (a)(2) to the extent necessary to 
allow such carrier to retransmit distant network 
signals to unserved households located in short 
markets in which such carrier was not pro-
viding local service pursuant to the license 
under section 122 as of December 31, 2009. 
‘‘(B) EXPIRATION OF TEMPORARY WAIV-
ER.—A temporary waiver of an injunction 
under subparagraph (A) shall expire after the 
end of the 120-day period beginning on the 
date such temporary waiver is made unless ex-
tended for good cause by the court making the 
temporary waiver. 
‘‘(C) FAILURE TO MAKE GOOD FAITH EF-
FORT TO PROVIDE LOCAL-INTO-LOCAL SERVICE 
TO ALL DMAS.— 
‘‘(i) WILLFUL FAILURE.—If the court 
making a temporary waiver under subpara-
graph (A) determines that the satellite car-
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rier that made the request for such waiver 
has failed to make a good faith effort to 
provide local-into-local service to all DMAs 
and determines that such failure was will-
ful, such failure— 
‘‘(I) is actionable as an act of in-
fringement under section 501 and the 
court may in its discretion impose the 
remedies provided for in section 502 
through 506 and subsection (a)(6)(B) 
of this section; and 
‘‘(II) shall result in the termi-
nation of the waiver provided under 
subparagraph (A). 
‘‘(ii) NONWILLFUL FAILURE.—If the 
court making a temporary waiver under 
subparagraph (A) determines that the sat-
ellite carrier that made the request for 
such waiver has failed to make a good 
faith effort to provide local-into-local serv-
ice to all DMAs and determines that such 
failure was nonwillful, the court may in its 
discretion impose financial penalties that 
reflect— 
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‘‘(I) the degree of control the 
carrier had over the circumstances 
that resulted in the failure; 
‘‘(II) the quality of the carrier’s 
efforts to remedy the failure; and 
‘‘(III) the severity and duration 
of the service interruption. 
‘‘(D) SINGLE TEMPORARY WAIVER AVAIL-
ABLE.—An entity may only receive one tem-
porary waiver under this paragraph. 
‘‘(E) SHORT MARKET DEFINED.—For pur-
poses of this paragraph, the term ‘short mar-
ket’ means a local market in which program-
ming of one or more of the four most widely 
viewed television networks nationwide as meas-
ured on the date of enactment of this sub-
section is not offered on the primary signal of 
any local television broadcast station. 
‘‘(3) ESTABLISHMENT OF QUALIFIED CARRIER 
RECOGNITION.— 
‘‘(A) STATEMENT
OF
ELIGIBILITY.—An 
entity seeking to be recognized as a qualified 
carrier under this subsection shall file a state-
ment of eligibility with the court that imposed 
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the injunction. A statement of eligibility must 
include— 
‘‘(i) an affidavit that the entity is pro-
viding local-into-local service to all DMAs; 
‘‘(ii) a request for a waiver of the in-
junction; and 
‘‘(iii) a certification issued pursuant 
to section øX¿ of øE&C Act¿. 
‘‘(B) GRANT OF RECOGNITION AS A QUALI-
FIED CARRIER.—Upon receipt of a statement of 
eligibility, the court shall recognize the entity as 
a qualified carrier and issue the waiver under 
paragraph (1). 
‘‘(C) VOLUNTARY TERMINATION.—At any 
time, an entity recognized as a qualified carrier 
may file a statement of voluntary termination 
with the court certifying that it no longer wish-
es to be recognized as a qualified carrier. Upon 
receipt of such statement, the court shall rein-
state the injunction waived under paragraph 
(1). 
‘‘(D) LOSS
OF
RECOGNITION
PREVENTS 
FUTURE RECOGNITION.—No entity may be rec-
ognized as a qualified carrier if such entity had 
previously been recognized as a qualified carrier 
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and subsequently lost such recognition or volun-
tarily terminated such recognition under sub-
paragraph (C). 
‘‘(4) QUALIFIED
CARRIER
OBLIGATIONS
AND 
COMPLIANCE.— 
‘‘(A) IN GENERAL.—An entity recognized 
as a qualified carrier shall continue to provide 
local-into-local service to all DMAs. 
‘‘(B) 
COMPLIANCE
DETERMINATION.— 
Upon the motion of an aggrieved television 
broadcast station, the court recognizing an enti-
ty as a qualified carrier may make a determina-
tion of whether the entity is providing local- 
into-local service to all DMAs. 
‘‘(C) PLEADING
REQUIREMENT.—In any 
motion brought under subparagraph (B), the 
party making such motion shall specify one or 
more designated market areas (as such term is 
defined in section 122(j)(2)(C)) for which the 
failure to provide service is being alleged, and, 
for each such designated market area, shall 
plead with particularity the circumstances of 
the alleged failure. 
‘‘(D) BURDEN
OF
PROOF.—In any pro-
ceeding to make a determination under sub-
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paragraph (B), and with respect to a des-
ignated market area for which failure to provide 
service is alleged, the entity recognized as a 
qualified carrier shall have the burden of prov-
ing that the entity provided local-into-local serv-
ice with a good quality satellite signal to 90 
percent of the households in such designated 
market area at the time and place alleged. 
‘‘(5) FAILURE TO PROVIDE SERVICE.— 
‘‘(A) PENALTIES.—If the court recognizing 
an entity as a qualified carrier finds that such 
entity has willfully failed to provide local-into- 
local service to all DMAs, such finding shall re-
sult in the loss of recognition of the entity as 
a qualified carrier and the termination of the 
waiver provided under paragraph (1), and the 
court may, in its discretion— 
‘‘(i) treat such failure as an act of in-
fringement under section 501, and subject 
such infringement to the remedies provided 
for in sections 502 through 506 and sub-
section (a)(6)(B) of this section; and 
‘‘(ii) impose a fine of no greater than 
$250,000. 
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‘‘(B) EXCEPTION FOR NONWILLFUL VIOLA-
TION.—If the court determines that the failure 
to provide local-into-local service to all DMAs is 
nonwillful, the court may in its discretion im-
pose financial penalties for noncompliance that 
reflect— 
‘‘(i) the degree of control the entity 
had over the circumstances that resulted in 
the failure; 
‘‘(ii) the quality of the entity’s efforts 
to remedy the failure and restore service; 
and 
‘‘(iii) the severity and duration of the 
service interruption. 
‘‘(6) PENALTIES
FOR
VIOLATIONS
OF
LI-
CENSE.—A court that finds, under subsection 
(a)(6)(A), that an entity recognized as a qualified 
carrier has willfully made a secondary transmission 
of a primary transmission made by a network sta-
tion and embodying a performance or display of a 
work to a subscriber who is not eligible to receive 
the transmission under this section shall reinstate 
the injunction waived under paragraph (1), and the 
court may order statutory damages of not to exceed 
$2,500,000. 
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‘‘(7) LOCAL-INTO-LOCAL SERVICE TO ALL DMAS 
DEFINED.—For purposes of this subsection: 
‘‘(A) IN
GENERAL.—An entity provides 
‘local-into-local service to all DMAs’ if the enti-
ty provides local service in all designated mar-
ket areas (as such term is defined in section 
122(j)(2)(C)) pursuant to the license under sec-
tion 122. 
‘‘(B) HOUSEHOLD
COVERAGE.—For pur-
poses of subparagraph (A), an entity that 
makes available local-into-local service with a 
good quality satellite signal to 90 percent of the 
households in a designated market area based 
on the most recent census data shall be consid-
ered to be providing local service to such des-
ignated market area. 
‘‘(C) GOOD
QUALITY
SATELLITE
SIGNAL 
DEFINED.—The term ‘good quality signal’ has 
the meaning given such term under section øX¿ 
of øE&C Act¿.’’. 
SEC. 7. TERMINATION OF LICENSE. 
Section 119, as amended by this Act, shall cease to 
be effective on December 31, 2014. 
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Union Calendar No. 182 
111TH CONGRESS 
1ST SESSION 
H. R. 3570 
[Report No. 111–319] 
A BILL 
To amend title 17, United States Code, to reau-
thorize the satellite statutory license, to conform 
the satellite and cable statutory licenses to all- 
digital transmissions, and for other purposes. 
OCTOBER 28, 2009 
Reported with technical amendments, committed to the 
Committee of the Whole House on the State of the 
Union, and ordered to be printed 
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