I
106TH CONGRESS
1ST SESSION
H. R. 768
To amend title 17, United States Code, to reform the copyright law with
respect to satellite retransmissions of broadcast signals, and for other
purposes.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 23, 1999
Mr. COBLE (for himself and Mr. CANNON) introduced the following bill; which
was referred to the Committee on the Judiciary
A BILL
To amend title 17, United States Code, to reform the copy-
right law with respect to satellite retransmissions of
broadcast signals, and for other purposes.
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 ‘‘Copyright Compulsory
License Improvement Act’’.
SEC. 2. LIMITATIONS ON EXCLUSIVE RIGHTS; SECONDARY
TRANSMISSIONS BY SATELLITE CARRIERS
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 second-
ary 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 that station a list
identifying (by name and street address, including
county and zip code) all subscribers to which the
satellite carrier currently makes secondary trans-
missions of that primary transmission.
‘‘(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 sta-
tion a list identifying (by name 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 station to whom 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 REQUIRE-
MENTS.—Notwithstanding subsection (a), the willful or
repeated secondary transmission to the public by a sat-
ellite 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 provided
under sections 502 through 506 and 509, if the satellite
carrier has not complied with the reporting requirements
of subsection (b).
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 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.
‘‘(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 rules, regulations, and authoriza-
tions 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
station’, ‘satellite carrier’ and ‘secondary trans-
mission’ have the meanings given such terms under
section 119(d).’’.
‘‘(4) 
SUBSCRIBER.—The 
term 
‘subscriber’
means an entity 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) 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. 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 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. 5. DEFINITIONS.
Section 119(d) of title 17, United States Code, is
amended by striking paragraph (10) and inserting the fol-
lowing:
‘‘(10) 
UNSERVED
HOUSEHOLD.—The 
term
‘unserved household’, with respect to a particular
television network, means a household that cannot
receive, through the use of a conventional outdoor
rooftop receiving antenna, an over-the-air signal of
grade B intensity (as defined by the Federal Com-
munications Commission) of a primary network sta-
tion affiliated with that network.’’.
SEC. 6. PUBLIC BROADCASTING SERVICE SATELLITE FEED.
(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 January 1, 2001, or the date on
which local retransmissions of broadcast signals are
offered to the public, whichever is earlier, the statu-
tory license created by this section shall be condi-
tioned on the Public Broadcasting Service certifying
to the Copyright Office on an annual basis that its
membership supports the secondary transmission of
the Public Broadcasting Service satellite feed, and
providing notice to the satellite carrier of such cer-
tification.’’.
(b) DEFINITION.—Section 119(d) of title 17, United
States Code, is amended by adding at the end the follow-
ing:
‘‘(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.’’.
SEC. 7. NOTICE TO SUBSCRIBERS.
Section 119(a)(2) of title 17, United States Code, is
amended by adding at the end the following:
‘‘(D) NOTICE
TO
SUBSCRIBERS.—A sat-
ellite carrier that makes secondary trans-
missions of a primary transmission made by a
network station pursuant to subparagraph (A)
shall, prior to providing service of broadcast
signals under this title to a subscriber, provide
the subscriber with a written statement describ-
ing and quoting the network territorial restric-
tions of subparagraph (B) of this paragraph
and describing and quoting the related provi-
sions of paragraphs (5), (9), and (10). Such
statement shall describe the circumstances
under which a subscriber may not be eligible for
satellite service of a particular network station.
With respect to subscribers currently receiving
broadcast signals under this title, the satellite
carrier shall provide the written statement de-
scribed in this subparagraph to such subscrib-
ers no later than 60 days after the enactment
of this subparagraph.’’.
SEC. 8. 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,’’; 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. 9. EFFECTIVE DATE.
This Act and the amendments made by this Act shall
take effect on January 1, 2000, except that the amend-
ments made by section 4 shall take effect on July 1, 1999.
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