I
106TH CONGRESS
1ST SESSION
H. R. 1554
To amend the provisions of title 17, United States Code, and the Communica-
tions Act of 1934, relating to copyright licensing and carriage of broad-
cast signals by satellite.
IN THE HOUSE OF REPRESENTATIVES
APRIL 26, 1999
Mr. COBLE (for himself, Mr. TAUZIN, Mr. BERMAN, Mr. MARKEY, Mr. HYDE,
Mr. BLILEY, Mr. CONYERS, Mr. DINGELL, Mr. SENSENBRENNER, Mr.
OXLEY, Mr. DELAHUNT, Mr. RUSH, Mr. GOODLATTE, Mr. STEARNS, Mr.
WEXLER, Mr. BOUCHER, Mr. CANNON, Mr. PICKERING, Mr. MCCOLLUM,
Mr. SAWYER, Mr. GALLEGLY, Mr. UPTON, Mr. ROGAN, Mr. GILLMOR,
Mr. PEASE, Mr. STUPAK, Mr. JENKINS, and Mr. HILLEARY) introduced
the following bill; Title I, referred to the Committee on Commerce; Title
II, referred to the Committee on the Judiciary
A BILL
To amend the provisions of title 17, United States Code,
and the Communications Act of 1934, relating to copy-
right licensing and carriage of broadcast signals by sat-
ellite.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Satellite Copyright,
Competition, and Consumer Protection Act of 1999’’.
TITLE I—SATELLITE COMPETI-
TION AND CONSUMER PRO-
TECTION
SEC. 101. SHORT TITLE.
This title may be cited as the ‘‘Satellite Competition
and Consumer Protection Act’’.
SEC. 102. RETRANSMISSION CONSENT.
Section 325(b) of the Communications Act of 1934
(47 U.S.C. 325(b)) is amended—
(1) by amending paragraphs (1) and (2) to
read as follows:
‘‘(b)(1) No cable system or other multichannel video
programming distributor shall retransmit the signal of a
television broadcast station, or any part thereof, except—
‘‘(A) with the express authority of the origi-
nating 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 338, 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—
‘‘(A) to retransmission of the signal of a non-
commercial television broadcast station;
‘‘(B) to retransmission of the signal of a tele-
vision broadcast station outside the station’s local
market by a satellite carrier directly to its sub-
scribers, if—
‘‘(i) such station was a superstation on
May 1, 1991;
‘‘(ii) as of July 1, 1998, such station was
retransmitted by a satellite carrier under the
statutory license of section 119 of title 17,
United States Code; and
‘‘(iii) the satellite carrier complies with all
network nonduplication, syndicated exclusivity,
and sports blackout rules adopted by the Com-
mission pursuant to section 712 of this Act;
‘‘(C) until 7 months after the date of enactment
of the Satellite Competition and Consumer Protec-
tion Act, to retransmission of the signal of a tele-
vision network station directly to a satellite antenna,
if the subscriber receiving the signal is located in an
area outside the local market of such station; or
‘‘(D) to retransmission by a cable operator or
other multichannel video provider, other than a sat-
ellite carrier, of the signal of a television broadcast
station outside the station’s local market if such sig-
nal was obtained from a satellite carrier and—
‘‘(i) the originating station was a supersta-
tion on May 1, 1991; and
‘‘(ii) as of July 1, 1998, such station was
retransmitted by a satellite carrier under the
statutory license of section 119 of title 17,
United States Code.’’;
(2) by adding at the end of paragraph (3) the
following new subparagraph:
‘‘(C) Within 45 days after the date of enactment of
the Satellite Competition and Consumer Protection Act,
the Commission shall commence a rulemaking proceeding
to revise the regulations governing the exercise by tele-
vision broadcast stations of the right to grant retrans-
mission consent under this subsection, and such other reg-
ulations as are necessary to administer the limitations
contained in paragraph (2). The Commission shall com-
plete all actions necessary to prescribe such regulations
within one year after such date of enactment. Such regula-
tions shall—
‘‘(i) establish election time periods that cor-
respond with those regulations adopted under sub-
paragraph (B) of this paragraph; and
‘‘(ii) until January 1, 2006, prohibit television
broadcast stations that provide retransmission con-
sent from engaging in discriminatory practices, un-
derstandings, arrangements, and activities, including
exclusive contracts for carriage, that prevent a mul-
tichannel video programming distributor from ob-
taining retransmission consent from such stations.’’;
(3) in paragraph (4), by adding at the end the
following new sentence: ‘‘If an originating television
station elects under paragraph (3)(C) to exercise its
right to grant retransmission consent under this
subsection with respect to a satellite carrier, the pro-
visions of section 338 shall not apply to the carriage
of the signal of such station by such satellite car-
rier.’’;
(4) in paragraph (5), by striking ‘‘614 or 615’’
and inserting ‘‘338, 614, or 615’’; and
(5) by adding at the end the following new
paragraph:
‘‘(7) For purposes of this subsection, the term ‘tele-
vision broadcast station’ means an over-the-air commercial
or noncommercial television broadcast station licensed by
the Commission under subpart E of part 73 of title 47,
Code of Federal Regulations, except that such term does
not include a low-power or translator television station.’’.
SEC. 103. MUST-CARRY FOR SATELLITE CARRIERS RE-
TRANSMITTING TELEVISION BROADCAST SIG-
NALS.
Title III of the Communications Act of 1934 is
amended by inserting after section 337 (47 U.S.C. 337)
the following new section:
‘‘SEC. 338. CARRIAGE OF LOCAL TELEVISION SIGNALS BY
SATELLITE CARRIERS.
‘‘(a) CARRIAGE OBLIGATIONS.—
‘‘(1) IN GENERAL.—Subject to the limitations
of paragraph (2), each satellite carrier providing sec-
ondary transmissions to subscribers located within
the local market of a television broadcast station of
a primary transmission made by that station shall
carry upon request all television broadcast stations
located within that local market, subject to section
325(b), by retransmitting the signal or signals of
such stations that are identified by Commission reg-
ulations for purposes of this section.
‘‘(2) EFFECTIVE
DATE.—No satellite carrier
shall be required to carry local television broadcast
stations under paragraph (1) until January 1, 2002.
‘‘(b) GOOD SIGNAL REQUIRED.—
‘‘(1) COSTS.—A television broadcast station as-
serting its right to carriage under subsection (a)
shall be required to bear the costs associated with
delivering a good quality signal to the designated
local receive facility of the satellite carrier or to an-
other facility that is acceptable to at least one-half
the stations asserting the right to carriage in the
local market.
‘‘(2) REGULATIONS.—The regulations issued
under subsection (g) shall set forth the obligations
necessary to carry out this subsection.
‘‘(c) DUPLICATION NOT REQUIRED.—
‘‘(1) COMMERCIAL STATIONS.—Notwithstanding
subsection (a), a satellite carrier shall not be re-
quired to carry upon request the signal of any local
commercial television broadcast station that substan-
tially duplicates the signal of another local commer-
cial television broadcast station which is secondarily
transmitted by the satellite carrier within the same
local market, or to carry upon request the signals of
more than 1 local commercial television broadcast
station in a single local market that is affiliated with
a particular television network.
‘‘(2) NONCOMMERCIAL
STATIONS.—The Com-
mission shall prescribe regulations limiting the car-
riage requirements under subsection (a) of satellite
carriers with respect to the carriage of multiple local
noncommercial television broadcast stations. To the
extent possible, such regulations shall provide the
same degree of carriage by satellite carriers of such
multiple stations as is provided by cable systems
under section 615.
‘‘(d) CHANNEL POSITIONING.—No satellite carrier
shall be required to provide the signal of a local television
broadcast station to subscribers in that station’s local
market on any particular channel number or to provide
the signals in any particular order, except that the satellite
carrier shall retransmit the signal of the local television
broadcast stations to subscribers in the stations’ local
market on contiguous channels and provide access to such
station’s signals at a nondiscriminatory price and in a
nondiscriminatory manner on any navigational device, on-
screen program guide, or menu.
‘‘(e) COMPENSATION
FOR CARRIAGE.—A satellite
carrier shall not accept or request monetary payment or
other valuable consideration in exchange either for car-
riage of local television broadcast stations in fulfillment
of the requirements of this section or for channel posi-
tioning rights provided to such stations under this section,
except that any such station may be required to bear the
costs associated with delivering a good quality signal to
the local receive facility of the satellite carrier.
‘‘(f) REMEDIES.—
‘‘(1) COMPLAINTS BY BROADCAST STATIONS.—
Whenever a local television broadcast station believes
that a satellite carrier has failed to meet its obliga-
tions under this section, such station shall notify the
carrier, in writing, of the alleged failure and identify
its reasons for believing that the satellite carrier is
obligated to carry upon request the signal of such
station or has otherwise failed to comply with other
requirements of this section. The satellite carrier
shall, within 30 days of such written notification, re-
spond in writing to such notification and either
begin carrying the signal of such station in accord-
ance with the terms requested or state its reasons
for believing that it is not obligated to carry such
signal or is in compliance with other requirements of
this section, as the case may be. A local television
broadcast station that is denied carriage in accord-
ance with this section by a satellite carrier or is oth-
erwise harmed by a response by a satellite carrier
that it is in compliance with other requirements of
this section may obtain review of such denial or re-
sponse by filing a complaint with the Commission.
Such complaint shall allege the manner in which
such satellite carrier has failed to meet its obliga-
tions and the basis for such allegations.
‘‘(2) OPPORTUNITY TO RESPOND.—The Com-
mission shall afford the satellite carrier against
which a complaint is filed under paragraph (1) an
opportunity to present data and arguments to estab-
lish that there has been no failure to meet its obliga-
tions under this section.
‘‘(3) REMEDIAL ACTIONS; DISMISSAL.—Within
120 days after the date a complaint is filed under
paragraph (1), the Commission shall determine
whether the satellite carrier has met its obligations
under this chapter. If the Commission determines
that the satellite carrier has failed to meet such obli-
gations, the Commission shall order the satellite car-
rier, in the case of an obligation to carry a station,
to begin carriage of the station and to continue such
carriage for at least 12 months, or, in the case of
the failure to meet other obligations under this sec-
tion, shall take other appropriate remedial action. If
the Commission determines that the satellite carrier
has fully met the requirements of this chapter, the
Commission shall dismiss the complaint.
‘‘(g) REGULATIONS BY COMMISSION.—Within 180
days after the date of enactment of this section, the Com-
mission shall, following a rulemaking proceeding, issue
regulations implementing this section.
‘‘(h) DEFINITIONS.—As used in this section:
‘‘(1) 
SUBSCRIBER.—The 
term 
‘subscriber’
means a person that receives a secondary trans-
mission service by means of a secondary trans-
mission from a satellite and pays a fee for the serv-
ice, directly or indirectly, to the satellite carrier or
to a distributor.
‘‘(2) 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.
‘‘(3) LOCAL
RECEIVE
FACILITY.—The term
‘local receive facility’ means the reception point in
each local market which a satellite carrier designates
for delivery of the signal of the station for purposes
of retransmission.
‘‘(4) TELEVISION
BROADCAST
STATION.—The
term ‘television broadcast station’ has the meaning
given such term in section 325(b)(7).
‘‘(5) SECONDARY
TRANSMISSION.—The term
‘secondary transmission’ has the meaning given such
term in section 119(d) of title 17, United States
Code.’’.
SEC. 104. NONDUPLICATION OF PROGRAMMING BROAD-
CAST BY LOCAL STATIONS.
Section 712 of the Communications Act of 1934 (47
U.S.C. 612) is amended to read as follows:
‘‘SEC. 712. NONDUPLICATION OF PROGRAMMING BROAD-
CAST BY LOCAL STATIONS.
‘‘(a) EXTENSION OF NETWORK NONDUPLICATION,
SYNDICATED EXCLUSIVITY, AND SPORTS BLACKOUT TO
SATELLITE RETRANSMISSION.—Within 45 days after the
date of enactment of the Satellite Competition and Con-
sumer Protection Act, the Commission shall commence a
single rulemaking proceeding to establish regulations that
apply network nonduplication protection, syndicated exclu-
sivity protection, and sports blackout protection to the re-
transmission of broadcast signals by satellite carriers to
subscribers. To the extent possible consistent with sub-
section (b), such regulations shall provide the same degree
of protection against retransmission of broadcast signals
as is provided by the network nonduplication (47 C.F.R.
76.92), syndicated exclusivity (47 C.F.R. 151), and sports
blackout (47 C.F.R. 76.67) rules applicable to cable tele-
vision systems. The Commission shall complete all actions
necessary to prescribe regulations required by this section
so that the regulations shall become effective within 1 year
after such date of enactment.
‘‘(b) ESTABLISHMENT OF NETWORK NONDUPLICA-
TION BOUNDARIES.—
‘‘(1) ESTABLISHMENT
OF
SIGNAL
STANDARD
FOR NETWORK NONDUPLICATION REQUIRED.—The
Commission shall establish a signal intensity stand-
ard for purposes of determining the network non-
duplication rights of local television broadcast sta-
tions. Until revised pursuant to subsection (c), such
standard shall be the Grade B field strength stand-
ard prescribed by the Commission in section 73.683
of the Commission’s regulations (47 C.F.R. 73.683).
For purposes of this section, the standard estab-
lished under this paragraph is referred to as the
‘Network Nonduplication Signal Standard’.
‘‘(2) ESTABLISHMENT
OF
IMPROVED
PRE-
DICTIVE MODEL REQUIRED.—Within 180 days after
the date of enactment of the Satellite Competition
and Consumer Protection Act, the Commission shall
take all actions necessary, including any reconsider-
ation, to develop and prescribe by rule a point-to-
point predictive model for reliably and presumptively
determining the ability of individual locations to re-
ceive signals in accordance with the Network Non-
duplication Signal Standard. In prescribing such
model, the Commission shall ensure that such model
takes into account terrain, building structures, and
other land cover variations. The Commission shall
establish procedures for the continued refinement in
the application of the model by the use of additional
data as it becomes available. For purposes of this
section, such model is referred to as the ‘Network
Nonduplication Reception Model’, and the area en-
compassing locations that are predicted to have the
ability to receive such a signal of a particular broad-
cast station is referred to as that station’s ‘Recep-
tion Model Area’.
‘‘(3) NETWORK
NONDUPLICATION.—The net-
work nonduplication regulations required under sub-
section (a) shall allow a television network station to
assert nonduplication rights as follows:
‘‘(A) If a satellite carrier is retransmitting
that station, or any other television broadcast
stations located in the same local market, to
subscribers located in that station’s local mar-
ket, the television network station may assert
nonduplication rights against the satellite car-
rier throughout the area within which that sta-
tion may assert such rights under the rules ap-
plicable to cable television systems (47 C.F.R.
76.92).
‘‘(B) If a satellite carrier is not retransmit-
ting any television broadcast stations located in
the television network station’s local market to
subscribers located in such market, the tele-
vision network station may assert nonduplica-
tion rights against the satellite carrier in the
geographic area that is within such station’s
Reception Model Area, but such geographic
area shall not extend beyond the local market
of such station.
‘‘(4) WAIVERS.—A subscriber may request a
waiver from network nonduplication by submitting a
request, through such subscriber’s satellite carrier,
to the television network station asserting non-
duplication rights. The television network station
shall accept or reject a subscriber’s request for a
waiver within 30 days after receipt of the request.
The network nonduplication protection described in
paragraph (3)(B) shall not apply to a subscriber if
such station agrees to the waiver request and files
with the satellite carrier a written waiver with re-
spect to that subscriber allowing the subscriber to
receive satellite retransmission of another network
station affiliated with that same network. The tele-
vision network station and the satellite carrier shall
maintain a file available to the public that contains
such waiver requests and the acceptances and rejec-
tions thereof.
‘‘(5) OBJECTIVE VERIFICATION.—
‘‘(A) IN GENERAL.—If a subscriber’s re-
quest for a waiver under paragraph (4) is re-
jected and the subscriber submits to the sub-
scriber’s satellite carrier a request for a test
verifying the subscriber’s inability to receive a
signal that meets the Network Nonduplication
Signal Standard, the satellite carrier and the
television network station or stations asserting
nonduplication rights with respect to that sub-
scriber shall select a qualified and independent
person to conduct a test in accordance with the
provisions of section 73.686(d) of title 47, Code
of Federal Regulations, or any successor regula-
tion. Such test shall be conducted within 30
days after the date the subscriber submits a re-
quest for the test. If the written findings and
conclusions of a test conducted in accordance
with the provisions of such section (or any suc-
cessor regulation) demonstrate that the sub-
scriber does not receive a signal that meets or
exceeds the Network Nonduplication Signal
Standard, the network nonduplication rights de-
scribed in paragraph (3)(B) shall not apply to
that subscriber.
‘‘(B) DESIGNATION OF TESTOR AND ALLO-
CATION OF COSTS.—If the satellite carrier and
the television network station or stations assert-
ing nonduplication rights are unable to agree on
such a person to conduct the test, the person
shall be designated by an independent and neu-
tral entity designated by the Commission by
rule. Unless the satellite carrier and the tele-
vision network station or stations asserting non-
duplication rights otherwise agree, the costs of
conducting the test under this paragraph shall
be borne equally by the satellite carrier and the
television network station or stations asserting
nonduplication rights. A subscriber may not be
required to bear any portion of the cost of such
test.
‘‘(6) RECREATIONAL
VEHICLE
LOCATION.—In
the case of a subscriber to a satellite carrier who has
installed satellite reception equipment in a rec-
reational vehicle, and who has permitted any tele-
vision network station seeking to assert network
nonduplication rights to verify the motor vehicle reg-
istration, license, and proof of ownership of such ve-
hicle, the subscriber shall be considered to be outside
the local market and Reception Model Area of such
station. For purposes of this paragraph, the term
‘recreational vehicle’ does not include any residential
manufactured home, as defined in section 603(6) of
the National Manufactured Housing Construction
and Safety Standards Act of 1974 (42 U.S.C.
5402(6)).
‘‘(c) REVIEW AND REVISION OF STANDARDS AND
MODEL.—
‘‘(1) ONGOING INQUIRY REQUIRED.—Not later
than 2 years after the date of enactment of the Sat-
ellite Competition and Consumer Protection Act, the
Commission shall conduct an inquiry of the extent to
which the Network Nonduplication Signal Standard,
the Network Nonduplication Reception Model, and
the Reception Model Areas of television stations are
adequate to reliably measure the ability of con-
sumers to receive an acceptable over-the-air tele-
vision broadcast signal.
later than 6 months after the end of such 2-year pe-
riod.
‘‘(4) DATA
SUBMISSION.—The Commission
shall prescribe by rule the data required to be sub-
mitted by television broadcast stations and by sat-
ellite carriers to the Commission or such designated
entity to carry out this subsection, and the format
for submission of such data.’’.
SEC. 105. CONSENT OF MEMBERSHIP TO RETRANSMISSION
OF PUBLIC BROADCASTING SERVICE SAT-
ELLITE FEED.
Section 396 of the Communications Act of 1934 (47
U.S.C. 396) is amended by adding at the end the following
new subsection:
‘‘(n) The Public Broadcasting Service shall certify to
the Board on an annual basis that a majority of its mem-
bership supports or does not support the secondary trans-
mission of the Public Broadcasting Service satellite feed,
and provide notice to each satellite carrier carrying such
feed of such certification.’’.
SEC. 106. DEFINITIONS.
Section 3 of the Communications Act of 1934 (47
U.S.C. 153) is amended—
(1) by redesignating—
(A) paragraphs (49) through (52) as para-
graphs (52) through (55), respectively;
(B) paragraphs (39) through (48) as para-
graphs (41) through (50), respectively; and
(C) paragraphs (27) through (38) as para-
graph (28) through (39), respectively;
(2) by inserting after paragraph (26) the fol-
lowing new paragraph:
‘‘(27) LOCAL MARKET.—
‘‘(A) IN GENERAL.—The term ‘local mar-
ket’, in the case of both commercial and non-
commercial television broadcast stations, means
the designated market area in which a station
is located, and—
‘‘(i) in the case of a commercial tele-
vision broadcast station, all commercial tel-
evision broadcast stations licensed to a
community within the same designated
market area are within the same local mar-
ket; and
‘‘(ii) in the case of a noncommercial
educational television broadcast station,
the market includes any station that is li-
censed to a community within the same
designated market area as the noncommer-
cial educational television broadcast sta-
tion.
‘‘(B) COUNTY OF LICENSE.—In addition to
the area described in subparagraph (A), a sta-
tion’s local market includes the county in which
the station’s community of license is located.
‘‘(C) DESIGNATED
MARKET
AREA.—For
purposes of subparagraph (A), the term ‘des-
ignated market area’ means a designated mar-
ket area, as determined by Nielsen Media Re-
search and published in the DMA Market and
Demographic Report.’’;
(3) by inserting after paragraph (39) (as redes-
ignated by paragraph (1) of this section) the fol-
lowing new paragraph:
‘‘(40) SATELLITE
CARRIER.—The term ‘sat-
ellite carrier’ means an entity that uses the facilities
of a satellite or satellite service licensed by the Com-
mission, and operates in the Fixed-Satellite Service
under part 25 of title 47 of the Code of Federal
Regulations or the Direct Broadcast Satellite Service
under part 100 of title 47 of the Code of Federal
Regulations, to establish and operate a channel of
communications for point-to-multipoint distribution
of television station signals, and that owns or leases
a capacity or service on a satellite in order to pro-
vide such point-to-multipoint distribution, except to
the extent that such entity provides such distribution
pursuant to tariff under this Act.’’; and
(3) by inserting after paragraph (50) (as redes-
ignated by paragraph (1) of this section) the fol-
lowing new paragraph:
‘‘(51) TELEVISION NETWORK; TELEVISION NET-
WORK STATION.—
‘‘(A) TELEVISION
NETWORK.—The term
‘television network’ means a television network
in the United States which offers an inter-
connected program service on a regular basis
for 15 or more hours per week to at least 25
affiliated broadcast stations in 10 or more
States.
‘‘(B) TELEVISION
NETWORK
STATION.—
The term ‘television network station’ means a
television broadcast station that is owned or op-
erated by, or affiliated with, a television net-
work.’’.
SEC. 107. COMPLETION OF BIENNIAL REGULATORY RE-
VIEW.
Within 180 days after the date of enactment of this
Act, the Commission shall complete the biennial review re-
quired by section 202(h) of the Telecommunications Act
of 1996.
SEC. 108. RESULT OF LOSS OF NETWORK SERVICE.
Until the Federal Communications Commission
issues regulations under section 712(b)(2) of the Commu-
nications Act of 1934, if a subscriber’s network service
is terminated as a result of the provisions of section 119
of title 17, United States Code, the satellite carrier shall,
upon the request of the subscriber, provide to the sub-
scriber free of charge an over-the-air television broadcast
receiving antenna that will provide the subscriber with an
over-the-air signal of Grade B intensity for those network
stations that were terminated as a result of such section
119.
SEC. 109. INTERIM PROVISIONS.
Until the Federal Communications Commission
issues and implements regulations under section 712(b)(2)
of the Communications Act of 1934, no subscriber whose
household is located outside the Grade A contour of a net-
work station shall have his or her satellite service of an-
other network station affiliated with that same network
terminated as a result of the provisions of section 119 of
title 17, United States Code.
TITLE 
II—SECONDARY 
TRANS-
MISSIONS BY SATELLITE CAR-
RIERS WITHIN LOCAL MAR-
KETS
SEC. 201. SHORT TITLE.
This title may be cited as the ‘‘Satellite Copyright
Compulsory License Improvement Act’’.
SEC. 202. LIMITATIONS ON EXCLUSIVE RIGHTS; SEC-
ONDARY TRANSMISSIONS BY SATELLITE CAR-
RIERS WITHIN LOCAL MARKETS.
(a) IN GENERAL.—Chapter 1 of title 17, United
States Code, is amended by adding after section 121 the
following new section:
‘‘§ 122. Limitations on exclusive rights; secondary
transmissions by satellite carriers within
local markets
‘‘(a) SECONDARY TRANSMISSIONS
OF TELEVISION
BROADCAST STATIONS BY SATELLITE CARRIERS.—A sec-
ondary transmission of a primary transmission of a tele-
vision broadcast station into the station’s local market
shall be subject to statutory licensing under this section
if—
‘‘(1) the secondary transmission is made by a
satellite carrier to the public;
‘‘(2) the satellite carrier is in compliance with
the rules, regulations, or authorizations of the Fed-
eral Communications Commission governing the car-
riage of television broadcast station signals; and
‘‘(3) the satellite carrier makes a direct or indi-
rect charge for the secondary transmission to—
‘‘(A) each subscriber receiving the sec-
ondary transmission; or
‘‘(B) a distributor that has contracted with
the satellite carrier for direct or indirect deliv-
ery of the secondary transmission to the public.
‘‘(b) REPORTING REQUIREMENTS.—
‘‘(1) INITIAL
LISTS.—A satellite carrier that
makes secondary transmissions of a primary trans-
mission made by a network station under subsection
(a) shall, within 90 days after commencing such sec-
ondary transmissions, submit to the network that
owns or is affiliated with the network station a list
identifying (by name in alphabetical order and street
address, including county and zip code) all sub-
scribers to which the satellite carrier currently
makes secondary transmissions of that primary
transmission pursuant to this section.
‘‘(2) SUBSEQUENT LISTS.—After the list is sub-
mitted under paragraph (1), the satellite carrier
shall, on the 15th of each month, submit to the net-
work a list identifying (by name in alphabetical
order and street address, including county and zip
code) any subscribers who have been added or
dropped as subscribers since the last submission
under this subsection.
‘‘(3) USE OF SUBSCRIBER INFORMATION.—Sub-
scriber information submitted by a satellite carrier
under this subsection may be used only for the pur-
poses of monitoring compliance by the satellite car-
rier with this section.
‘‘(4) REQUIREMENTS OF STATIONS.—The sub-
mission requirements of this subsection shall apply
to a satellite carrier only if the network to which 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 sub-
missions are to be made. The Register shall main-
tain for public inspection a file of all such docu-
ments.
‘‘(c) NO ROYALTY FEE REQUIRED.—A satellite car-
rier whose secondary transmissions are subject to statu-
tory licensing under subsection (a) shall have no royalty
obligation for such secondary transmissions.
‘‘(d) NONCOMPLIANCE WITH REPORTING AND REGU-
LATORY
REQUIREMENTS.—Notwithstanding subsection
(a), the willful or repeated secondary transmission to the
public by a satellite carrier into the local market of a tele-
vision broadcast station of a primary transmission made
by that television broadcast station and embodying a per-
formance or display of a work is actionable as an act of
infringement under section 501, and is fully subject to the
remedies provided under sections 502 through 506 and
509, if the satellite carrier has not complied with the re-
porting requirements of subsection (b) or with the rules,
regulations, and authorizations of the Federal Commu-
nications Commission concerning the carriage of television
broadcast signals.
‘‘(e) 
WILLFUL
ALTERATIONS.—Notwithstanding
subsection (a), the secondary transmission to the public
by a satellite carrier into the local market of a television
broadcast station of a primary transmission made by that
television 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
repeated secondary transmission to the public by a
satellite 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,
or a private licensing agreement, 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 ex-
ceed $5 for such subscriber for each month dur-
ing 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 sta-
tion’s local market, and are not subject to statutory
licensing under section 119, then in addition to the
remedies under paragraph (1)—
‘‘(A) if the pattern or practice has been
carried out on a substantially nationwide basis,
the court shall order a permanent injunction
barring the secondary transmission by the sat-
ellite carrier of the primary transmissions of
that television broadcast station (and if such
television broadcast station is a network sta-
tion, all other television broadcast stations af-
filiated with such network), and the court may
order 
statutory 
damages 
not 
exceeding
$250,000 for each 6-month period during which
the pattern or practice was carried out; and
‘‘(B) if the pattern or practice has been
carried out on a local or regional basis with re-
spect to more than one television broadcast sta-
tion (and if such television broadcast station is
a network station, all other television broadcast
stations affiliated with such network), the court
shall order a permanent injunction barring the
secondary transmission in that locality or re-
gion by the satellite carrier of the primary
transmissions of any television broadcast sta-
tion, and the court may order statutory dam-
ages not exceeding $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 or subscribers being served in compliance
with section 119.
‘‘(h) GEOGRAPHIC
LIMITATIONS
ON
SECONDARY
TRANSMISSIONS.—The statutory license created by this
section 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, ex-
emption, or license through which secondary transmissions
by satellite carriers of programming contained in a pri-
mary transmission made by a television broadcast station
may be made without obtaining the consent of the copy-
right 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 section 3 of the Communications
Act of 1934.
‘‘(3) NETWORK STATION; SATELLITE CARRIER;
SECONDARY
TRANSMISSION.—The terms ‘network
station’, ‘satellite carrier’ and ‘secondary trans-
mission’ have the meanings given such terms under
section 119(d).
‘‘(4) 
SUBSCRIBER.—The 
term 
‘subscriber’
means a person that receives a secondary trans-
mission service by means of a secondary trans-
mission from a satellite and pays a fee for the serv-
ice, directly or indirectly, 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
broadcast station licensed by the Federal Commu-
nications 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
actionable as an act of infringement under section 122,
a television 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 sta-
tion.’’.
(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 section 121 the following:
‘‘122. Limitations on exclusive rights; secondary transmissions by satellite car-
riers within local market.’’.
SEC. 203. 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. 204. COMPUTATION OF ROYALTY FEES FOR SAT-
ELLITE CARRIERS.
Section 119(c) of title 17, United States Code, is
amended by adding at the end the following new para-
graph:
‘‘(4) REDUCTION.—
‘‘(A) SUPERSTATION.—The rate of the
royalty fee in effect on January 1, 1998, pay-
able 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
subsection (b)(1)(B)(ii) shall be reduced by 45
percent.
‘‘(5) 
PUBLIC
BROADCASTING
SERVICE
AS
AGENT.—For purposes of section 802, with respect
to royalty fees paid by satellite carriers for re-
transmitting the Public Broadcasting Service sat-
ellite feed, the Public Broadcasting Service shall be
the agent for all public television copyright claimants
and all Public Broadcasting Service member sta-
tions.’’.
SEC. 205. 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 edu-
cational television broadcast station from their
satellite carrier within such stations’ local mar-
ket, or
‘‘(B) 2 years after the effective date of the
Satellite Copyright Compulsory License Im-
provement Act,
whichever is earlier, the statutory license created by
this section shall be conditioned on certification of
support pursuant to section 396(n) of the Commu-
nications Act of 1934.’’.
(b) DEFINITIONS.—Section 119(d) of title 17, United
States Code, is amended by adding at the end the fol-
lowing:
‘‘(12) PUBLIC
BROADCASTING
SERVICE
SAT-
ELLITE
FEED.—The term ‘Public Broadcasting
Service satellite feed’ means the national satellite
feed distributed by the Public Broadcasting Service
consisting of educational and informational program-
ming intended for private home viewing, to which
the Public Broadcasting Service holds national ter-
restrial broadcast rights.
‘‘(13) LOCAL MARKET.—The term ‘local mar-
ket’ 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. 206. DISTANT SIGNAL RETRANSMISSIONS.
Section 119 of title 17, United States Code, is
amended—
(1) in subsection (a)—
(A) in paragraph (2)—
(i) by striking subparagraph (B) and
inserting the following:
‘‘(B) SECONDARY TRANSMISSIONS OF NET-
WORK
STATIONS.—The statutory license pro-
vided for in subparagraph (A) shall be limited
to secondary transmissions to persons who are
unable to receive a signal of the intensity speci-
fied as the Network Nonduplication Signal
Standard pursuant to section 712(b) of the
Communications Act of 1934.’’;
(ii) in paragraph (5)—
(I) in subparagraph (A) by strik-
ing ‘‘an unserved household’’ and in-
serting ‘‘a household permitted to re-
ceive 
the 
secondary 
transmission
under paragraph (2)(B).’’;
(II) in subparagraph (B) by
striking ‘‘unserved households’’ and
inserting ‘‘households permitted to re-
ceive 
the 
secondary 
transmission
under paragraph (2)(B).’’; and
(III) in subparagraph (D) by
striking ‘‘to an unserved household’’
and inserting ‘‘to a household per-
mitted to receive the secondary trans-
mission under paragraph (2)(B).’’;
and
(B) by striking paragraph (8) and redesig-
nating paragraphs (9) and (10) as paragraphs
(8) and (9), respectively; and
(2) in subsection (d), by striking paragraphs
(10) and (11).
SEC. 207. APPLICATION OF FEDERAL COMMUNICATIONS
COMMISSION 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,’’;
(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,’’; and
(3) by adding at the end the following new
paragraph:
‘‘(10) STATUTORY
LICENSE
CONTINGENT
ON
COMPLIANCE
WITH
FCC
RULES
AND
REMEDIAL
STEPS.—Notwithstanding any other provision of this
section, the willful or repeated secondary trans-
mission to the public by a satellite carrier of a pri-
mary transmission made by a broadcast station li-
censed by the Federal Communications Commission
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, if, at the time
of such transmission, the satellite carrier is not in