Opinion ID: 532957
Heading Depth: 3
Heading Rank: 1

Heading: The Text of the Copyright Act

Text: 41 An examination of the 1976 Act reveals a very different picture from that presented by the petitioners. Section 111 does not grant cable companies a blanket right to obtain a compulsory license to retransmit any and all programs transmitted by broadcast companies. Rather, the Act says: 42 secondary transmissions to the public by a cable system of a primary transmission made by a broadcast station licensed by the [FCC] ... shall be subject to compulsory licensing ... where the carriage of the signals comprising the secondary transmission is permissible under the rules, regulations, or authorizations of the [FCC]. 43 17 U.S.C. Sec. 111(c)(1) (emphasis added). The Act thus explicitly withholds a compulsory license from cable companies in cases where the FCC forbids the cable companies' transmissions. It is therefore no surprise that the FCC can affect the copyright liability of cable television companies. The balance struck between copyright owners and cable companies incorporates FCC regulations, showing that Congress intended the FCC to play a role in determining the extent to which compulsory licenses would be available. 44 Furthermore, the Act makes clear that the 1976 Congress was aware that syndex rules were part of the rules, regulations, and authorizations of the FCC. Section 801 of the Act establishes the Copyright Royalty Tribunal and gives it the power to set and periodically to adjust the fee that cable companies must pay for a compulsory license obtained pursuant to Sec. 111. In listing the factors the CRT may consider when setting and adjusting the fee, the Act says: 45 In the event of any change in the rules and regulations of the [FCC] with respect to syndicated and sports program exclusivity after April 15, 1976, the rates established by section 111(d)(2)(B) may be adjusted to assure that such rates are reasonable in light of the changes to such rules and regulations[.] 46 Section 801(b)(2)(C) (emphasis added). The emphasized phrase shows that Congress knew that passage of the Copyright Act might, but also might not, cause the FCC to alter its policy with respect to syndex. By instructing the CRT to adjust its rates in the event of any change in syndex rules by the Commission, Congress showed that it left the syndex question to the Commission's discretion.