[House Report 106-86]
[From the U.S. Government Publishing Office]
106th Congress Rept. 106-86
1st Session HOUSE OF REPRESENTATIVES Part 1
=======================================================================
COPYRIGHT COMPULSORY LICENSE IMPROVEMENT ACT
_______
April 12, 1999.--Ordered to be printed
_______
Mr. Coble, from the Committee on the Judiciary, submitted the following
R E P O R T
[To accompany H.R. 1027]
The Committee on the Judiciary, to whom was referred the
bill (H.R. 1027) to provide for the carriage by satellite
carriers of local broadcast station signals, and for other
purposes, having considered the same, report favorably thereon
with an amendment and recommend that the bill as amended do
pass.
CONTENTS
Page
The Amendment.................................................... 1
Purpose and Summary.............................................. 9
Background and Need for the Legislation.......................... 9
Hearings......................................................... 10
Committee Consideration.......................................... 11
Vote of the Committee............................................ 11
Committee Oversight Findings..................................... 11
Committee on Government Reform and Oversight Findings............ 11
New Budget Authority and Tax Expenditures........................ 11
Committee Cost Estimate.......................................... 11
Constitutional Authority Statement............................... 11
Section-by-Section Analysis...................................... 12
Changes in Existing Law Made by the Bill, as Reported............ 18
The amendment is as follows:
Strike out all after the enacting clause and insert in lieu
thereof the following:
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:
``Sec. 122. Limitations on exclusive rights; secondary transmissions by
satellite carriers within local markets
``(a) Secondary Transmissions of Television Broadcast Stations by
Satellite Carriers.--A secondary transmission of a primary transmission
of a television 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 Federal Communications
Commission governing the carriage of television broadcast
station signals; and
``(3) the satellite carrier makes a direct or indirect charge
for the secondary transmission to--
``(A) each subscriber receiving the secondary
transmission; or
``(B) a distributor that has contracted with the
satellite carrier for direct or indirect delivery of
the secondary transmission to the public.
``(b) Reporting Requirements.--
``(1) Initial lists.--A satellite carrier that makes
secondary transmissions of a primary transmission made by a
network station under subsection (a) shall, within 90 days
after commencing such secondary transmissions, submit to that
station a list identifying (by name in alphabetical order and
street address, including county and zip code) only those
subscribers located in that station's local market to which the
satellite carrier currently makes secondary transmissions of
that primary transmission.
``(2) Subsequent lists.--After the list is submitted under
paragraph (1), the satellite carrier shall, on the 15th of each
month, submit to the station 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.--Subscriber information
submitted by a satellite carrier under this subsection may be
used only for the purposes of monitoring compliance by the
satellite carrier with this section.
``(4) Requirements of stations.--The submission 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 submissions are to
be made. The Register shall maintain for public inspection a
file of all such documents.
``(c) No Royalty Fee Required.--A satellite carrier whose secondary
transmissions are subject to statutory licensing under subsection (a)
shall have no royalty obligation for such secondary transmissions.
``(d) Noncompliance With Reporting Requirements.--Notwithstanding
subsection (a), the willful or repeated 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 provided under sections 502 through 506 and
509, if the satellite carrier has not complied with the reporting
requirements of subsection (b).
``(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
provided 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 advertising or station announcement
transmitted by the primary 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 Stations.--
``(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 performance 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, 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 service from the
ineligible subscriber; and
``(B) any statutory damages shall not exceed $5 for
such subscriber for each month during 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
station'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 satellite carrier of the primary
transmissions of that television broadcast station (and
if such television broadcast station is a network
station, all other television broadcast stations
affiliated 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 respect to more than
one television broadcast station (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 region by the satellite carrier of the
primary transmissions of any television broadcast
station, 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.
``(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, exemption, or
license through which secondary transmissions by satellite carriers of
programming contained in a primary transmission made by a television
broadcast station may be made without obtaining the consent of the
copyright owner.
``(j) Definitions.--In this section--
``(1) Distributor.--The term `distributor' means an entity
which contracts to distribute secondary transmissions from a
satellite carrier and, either 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 authorizations 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 transmission' have the meanings given such terms
under section 119(d).
``(4) Subscriber.--The term `subscriber' means an entity that
receives a secondary transmission service by means of a
secondary transmission from a satellite and pays a fee for the
service, 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 Communications 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 station.''.
(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 carriers within local market.''.
SEC. 3. EXTENSION OF EFFECT OF AMENDMENTS TO SECTION 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 paragraph:
``(4) Reduction.--
``(A) Superstation.--The rate of the royalty fee in
effect on January 1, 1998, payable 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 retransmitting the Public Broadcasting Service
satellite feed, the Public Broadcasting Service shall be the
agent for all public television copyright claimants and all
Public Broadcasting Service member stations.''.
SEC. 5. 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 inserting ``(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 subscribers to
satellite carriers are able to receive the signal of at
least one noncommercial educational television
broadcast station from their satellite carrier within
such stations' local market, or
``(B) 2 years after the effective date of the
Copyright Compulsory License Improvement Act,
whichever is earlier, the statutory license created by this
section shall be conditioned 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 certification.''.
(b) Definitions.--Section 119(d) of title 17, United States Code, is
amended by adding at the end the following:
``(12) Public broadcasting service satellite feed.--The term
`Public Broadcasting Service satellite feed' means the national
satellite feed distributed by the Public Broadcasting Service
consisting of educational and informational programming
intended for private home viewing, to which the Public
Broadcasting Service holds national terrestrial broadcast
rights.
``(13) Local market.--The term `local market' 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. 6. LOCAL TO LOCAL RETRANSMISSIONS.
Section 119 of title 17, United States Code, is amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``(6)'' and
inserting ``(5)'';
(B) in paragraph (2)--
(i) by striking
``(2) Network stations.--
``(A) In general.--Subject to the provisions of
subparagraphs (B) and (C) of this paragraph and
paragraphs (3), (4), (5), and (6)''
and inserting
``(2) Network stations.--Subject to the provisions of
paragraphs (3), (4), and (5)'' and running in the remaining
text of the subparagraph;
(ii) by adding at the end of paragraph (2)
the following: ``Notwithstanding the preceding
provisions of this paragraph, secondary
transmissions of programming contained in a
primary transmission made by a network station
and embodying a performance or display of a
work shall not be subject to statutory
licensing under this section in a local market
in which the satellite carrier, or another
satellite carrier, is serving subscribers in
that market with 2 or more television broadcast
stations located in that market pursuant to
section 122.''; and
(iii) by striking subparagraphs (B) and (C);
(C) in paragraph (3), by striking ``, or has failed
to make the submissions to networks required by
paragraph (2)(C)''; and
(D) by striking paragraphs (5), (8), (9), and (10)
and redesignating paragraphs (6) and (7) as paragraphs
(5) and (6), respectively; and
(2) in subsection (d), by striking paragraphs (10) and (11).
SEC. 7. 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. 8. RETRANSMISSION CONSENT.
Section 325(b) of the Communications Act of 1934 (47 U.S.C. 325(b))
is amended--
(1) by striking paragraphs (1) and (2) and inserting the
following:
``(b)(1) No cable system or other multichannel video programming
distributor shall retransmit the signal of a broadcasting station, or
any part thereof, except--
``(A) with the express authority of the 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 337, 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 to--
``(A) retransmission of the signal of a noncommercial
broadcasting station;
``(B) retransmission of the signal of a television broadcast
station outside the station's local market by a satellite
carrier directly to its subscribers, if--
``(i) such station was a superstation on May 1, 1991;
and
``(ii) as of July 1, 1998, such station was
retransmitted by a satellite carrier under the
statutory license provided in section 119 of title 17,
United States Code;
``(C) retransmission of the signal of a broadcasting station
that is owned or operated by, or affiliated with, a
broadcasting network directly to a home satellite antenna, if
the household receiving the signal is located in an area in
which such station may not assert its rights not to have its
signal duplicated under the Commission's network nonduplication
regulations; or
``(D) retransmission by a cable operator or other
multichannel video provider of the signal of a television
broadcast station outside the station's local market if such
signal was obtained from a satellite carrier and--
``(i) the originating station was a superstation on
May 1, 1991; and
``(ii) as of July 1, 1998, such station was
retransmitted by a satellite carrier under the
statutory license provided in 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 effective date of the Satellite
Television Improvement Act, the Commission shall commence a rulemaking
proceeding to revise the regulations governing the exercise by
television broadcast stations of the right to grant retransmission
consent under this subsection, and such other regulations as are
necessary to administer the limitation contained in paragraph (2). Such
regulations shall establish election time periods that correspond with
those regulations adopted under subparagraph (B). The rulemaking shall
be completed within 180 days after the effective date of the Satellite
Television Improvement Act.''; and
(3) by adding at the end the following new paragraph:
``(7) For purposes of this subsection:
``(A) The term `superstation' means a television broadcast
station, other than a network station, licensed by the
Commission that is secondarily transmitted by a satellite
carrier.
``(B) The term `satellite carrier' has the meaning given that
term in section 119(d) of title 17, United States Code.''.
SEC. 9. MUST-CARRY FOR SATELLITE CARRIERS RETRANSMITTING TELEVISION
BROADCAST SIGNALS.
Title III of the Communications Act of 1934 is amended by inserting
after section 337 the following new section:
``SEC. 338. CARRIAGE OF LOCAL TELEVISION SIGNALS BY SATELLITE CARRIERS.
``(a) Carriage Obligations.--Each satellite carrier providing direct
to home service of a television broadcast station to subscribers
located within the local market of such station pursuant to section 122
of title 17, United States Code, shall, not later than January 1, 2002,
carry all television broadcast stations located within that local
market. Carriage of additional television broadcast stations within the
local market shall be at the discretion of the satellite carrier,
subject to section 325(b).
``(b) Good Signal Required.--
``(1) Costs.--A television broadcast station asserting 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. The selection of a local receive facility by a
satellite carrier shall not be made in a manner that frustrates
the purposes of this section.
``(2) Regulations.--The regulations issued under subsection
(g) shall set forth the obligations necessary to carry out this
subsection.
``(c) Duplication Not Required.--Notwithstanding subsection (a), a
satellite carrier shall not be required to carry the signal of any
local television broadcast station that substantially duplicates the
signal of another local television broadcast station which is
secondarily transmitted by the satellite carrier, or to carry the
signals of more that one local television broadcast station affiliated
with a particular broadcast network (as the term is defined by
regulation).
``(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 station to subscribers in that station's local
market on contiguous channels 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 carriage of local television broadcast stations in
fulfillment of the requirements of this section or for channel
positioning 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 obligations 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 the signal of such
station or has otherwise failed to comply with the channel
positioning or repositioning or other requirements of this
section. The satellite carrier shall, within 30 days of such
written notification, respond in writing to such notification
and either commence to carry the signal of such station in
accordance with the terms requested or state its reasons for
believing that it is not obligated to carry such signal or is
in compliance with the channel positioning and repositioning or
other requirements of this section. A local television
broadcast station that is denied carriage or channel
positioning or repositioning in accordance with this section by
a satellite carrier may obtain review of such denial by filing
a complaint with the Commission. Such complaint shall allege
the manner in which such satellite carrier has failed to meet
its obligations and the basis for such allegations.
``(2) Opportunity to respond.--The Commission shall afford
such satellite carrier and opportunity to present data and
arguments to establish that there has been no failure to meet
its obligations under this section.
``(3) Remedial actions; dismissal.--Within 120 days after the
date a complaint is filed, the Commission shall determine
whether the satellite carrier has met its obligations under
this section. If the Commission determines that the satellite
carrier has failed to meet such obligations, the Commission
shall order the satellite carrier to reposition the complaining
station or, in the case of an obligation to carry a station, to
commence carriage of the station and to continue such carriage
for at least 12 months. If the Commission determines that the
satellite carrier has fully met the requirements of this
section, it shall dismiss the complaint.
``(g) Regulations by Commission.--Within 180 days after the effective
date of this section, the Commission shall, following a rulemaking
proceeding, issue regulations implementing the requirements imposed by
this section.
``(h) Definitions.--As used in this section:
``(1) Television broadcast station.--The term `television
broadcast station' means a full-power television broadcast
station, and does not include a low-power or translator
television broadcast station.
``(2) Local market.--The term `local market' means the
designated market area in which a station is located.
``(3) Designated market area.--The term `designated market
area' means a designated market area, as determined by the
Nielsen Media Research and published in the DMA Market and
Demographic Report or, if no longer published, as determined by
another commercial publication that delineates television
markets based on viewing patterns.
``(4) Local receive facility.--The term local receive
facility means the reception point in the local market of a
television broadcast station or in a market contiguous to the
local market of a television broadcast station at which a
satellite carrier initially receives the signal of the station
for purposes of transmission of such signals to the facility
which uplinks the signals to the carrier's satellites for
secondary transmission to the satellite carrier's subscribers.
The designation of a local receive facility by a satellite
carrier shall not be used to undermine or evade the carriage
requirements imposed by this section.''.
SEC. 10. NETWORK NONDUPLICATION; SYNDICATED EXCLUSIVITY AND SPORTS
BLACKOUT.
(a) Regulations.--
(1) In general.--Within 45 days after the effective date of
this Act, the Federal Communications Commission shall commence
a rulemaking to establish regulations that apply network
nonduplication protection, syndicated exclusivity protection,
and sports blackout protection to the retransmission of
broadcast signals by satellite carriers to subscribers. To the
extent possible, and where technologically feasible and
economically reasonable, such regulations shall, subject to
paragraph (2), include the same level of protection accorded
retransmissions of television broadcast signals by cable
systems for network nonduplication (47 C.F.R. 76.92),
syndicated exclusivity (47 C.F.R. 151), and sports blackout (47
C.F.R. 76.67). The Commission shall complete all action
necessary to prescribe the regulations required by this section
so that the regulations shall become effective within 1 year
after the date of the enactment of this Act.
(2) Network nonduplication.--The network nonduplication
regulations required under paragraph (1) shall allow a network
television broadcast station to assert nonduplication rights--
(A) against a satellite carrier throughout that
station's local market if that satellite carrier is
retransmitting that station pursuant to section 122 of
title 17, United States Code, or other television
broadcast stations located in the same local market
pursuant to section 122 of title 17, United States
Code, except for television broadcast stations located
in that same market that are affiliated with the same
network as the station, to subscribers located in that
station's local market; or
(B) against a satellite carrier retransmitting
television broadcast stations pursuant to section 119
of title 17, United States Code, in the geographic area
in which the signal of that television broadcast
station is of Grade B intensity as defined by the
Federal Communications Commission on March 1, 1999, in
section 73.683(a) of title 47, Code of Federal
Regulations, based upon the Individually Located
Longley-Rice methodology described by the Federal
Communications Commission in its Docket No. 98-201, but
such geographic area shall not extend beyond the local
market of such station.
If a subscriber's network service is terminated as a result of
network nonduplication protection asserted by a local network
television broadcast station under subparagraph (B), or as a
result of the provisions of section 119 of title 17, United
States Code, the satellite carrier shall provide to the
subscriber 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 subparagraph (B).
(3) Waivers.--(A) The network nonduplication protection
described in paragraph (2)(b) shall not apply to a subscriber
located in the geographic area that is identified by the
Individually Located Longley-Rice methodology described bythe
Federal Communications Commission in its Docket No. 98-201 who files
with the satellite carrier a written waiver with respect to that
subscriber's household obtained from the network station whose local
market is in that geographic area, allowing the subscriber to receive
satellite service of another network station affiliated with that same
network. The local network station and the satellite carrier shall
maintain a file available to the public that contains such waiver.
(B) If a subscriber within the local market of a network
station petitions the Federal Communications Commission with
the written findings and conclusions of a test conducted in
accordance with the provisions of section 73.686(d) of title
47, Code of Federal Regulations, as in effect on March 1, 1999,
demonstrating that the household in which the subscriber
resides does not receive an over-the-air signal of the network
station of Grade B intensity, the network station shall have 30
days in which to file with the Commission an objection to the
petition. If the network station does not file a timely
objection, then the station may not assert network
nonduplication protection described in paragraph (2)(B) with
respect to that subscriber's household. If the station does
file a timely objection, then the Commission shall have 120
days in which to determine the sufficiency of the subscriber's
petition. If the Commission determines that the petition is
sufficient, then The network nonduplication protection
described in paragraph (2)(B) shall not apply to that
subscriber's household.
(4) Interim provisions.--Until the Federal Communications
Commission issues regulations under paragraphs (1) and (3), no
subscriber whose household is located outside the Grade A
contour of a network station shall have his or her satellite
service of another network station affiliated with that same
network terminated as a result of the provisions of section 119
of title 17, United States Code.
(5) Local market defined.--The term ``local market'' has the
meaning provided in section 337(h) of the Communications Act of
1934, as added by section 3 of this Act.
(b) Deferred Applicability of Amendments to Section 119 of Title 17,
United States Code.--Notwithstanding the amendments to section 119 of
title 17, United States Code, made by this Act, until the regulations
regarding network nonduplication protection are established under
subsection (a), the statutory license under subsection (a) of such
section 119 for secondary transmissions of primary transmissions of
programming contained in a primary transmission made by a network
station (as defined in section 119(d) of title 17, United States Code,
as in effect on the day before the effective date of this Act) shall be
limited to secondary transmissions to persons who reside in unserved
households (as defined in section 119(d) of title 17, United States
Code, as in effect on the day before the effective date of this Act).
SEC. 11. STUDY ON TECHNICAL AND ECONOMIC IMPACT OF MUST-CARRY ON
DELIVERY OF LOCAL SIGNALS.
Not later than July 1, 2000, the Register of Copyrights and the
Federal Communications Commission shall submit to the Congress a joint
report that sets forth in detail their findings and conclusions with
respect to the technical feasibility of imposing the requirements of
section 337 of the Communications Act of 1934 on satellite carriers
that deliver local signals, and the technical and economic impact of
such section on the ability of satellite carriers to serve multiple
television markets with retransmission of local television broadcast
stations. In preparing this report, the Register of Copyrights and the
Commission shall give particular consideration to how section 337 of
the Communications Act of 1934 affects the technical limitations and
economic incentives for satellite retransmissions of local television
broadcast signals in television markets other than the 100 largest
television markets in the United States (as determined by the Nielsen
Media Research and published in the DMA Market and Demographic Report).
SEC. 12. EFFECTIVE DATE.
This Act and the amendments made by this Act shall take effect on
July 1, 1999, except that--
(1) the amendments made by section 5 shall take effect on the
date of the enactment of this Act; and
(2) the amendment made by section 6(1)(B)(ii) shall take
effect on the date that is 1 year after the date of the
enactment of this Act.
Purpose and Summary
H.R. 1027, the ``Copyright Compulsory License Improvement
Act,'' extends and enhances the statutory framework for the
retransmission of television broadcast signals by satellite
carriers to their subscribers. H.R. 1027: (1) creates a new
copyright statutory license for the retransmission of local
television broadcast stations; (2) extends the expiration date
of the section 119 copyright compulsory license for the
retransmission of distant television broadcast stations, and
reduces the royalty fee for that license; (3) creates full
must-carry rights for all television broadcast stations in a
local market once a satellite carrier begins local service in
that market, and prohibits the importation of distant signals
in that market that duplicate the network programming of a
local station as conditions of the copyright license; and (4)
protects local broadcaster programming exclusivity rights
through imposition of network nonduplication, syndicated
exclusivity and sports blackout modeled after the rules
applicable to the cable industry, making the protection of such
rights a condition of the copyright license.
Background and Need for the Legislation
When Congress passed the Satellite Home Viewer Act in 1988,
few Americans were familiar with satellite television. Those
who were typically resided in rural areas of the country where
the only means of receiving television programming was through
use of a large, backyard C-band satellite dish. Congress
recognized the importance of providing these people with access
to broadcast programming and created a compulsory copyright
license in the Satellite Home Viewer Act that enabled satellite
carriers to easily license the copyrights to the broadcast
programming that they retransmitted to their subscribers.
The 1988 Act fostered a boom in the satellite television
industry. Coupled with the development of high-powered digital
satellite service, or DBS, which delivers programming to a
satellite dish practically the size of a dinner plate, the
satellite industry now serves homes nationwide with a wide
range of high quality programming. Satellite is no longer a
rural service, and it offers a competitive alternative to other
providers of multichannel video programming; in particular,
cable television. Because satellite can provide direct
competition with the cable industry, it is in the interest of
Congress to ensure that satellite operates under a copyright
framework that permits it to be an effective competitor.
The compulsory copyright license created by the 1988 Act
was limited to a five-year period to enable Congress to
consider its effectiveness and renew it where necessary. The
license was renewed in 1994 for an additional five years and
amendments made that were intended to increase the enforcement
of the network territorial restrictions of the compulsory
license. Two-year transitional provisions were created to
enable local network broadcasters to challenge satellite
subscribers' receipt of satellite network service where the
local network broadcaster had reason to believe that these
subscribers received an adequate off-the-air signal from the
broadcaster.
The satellite license is slated to expire at the end of
this year, requiring Congress to again consider the copyright
licensing regime for satellite retransmission of over-the-air
television broadcast stations. In passing this legislation, the
Committee was guided by several principles. First, the
Committee believes that promotion of competition in the
marketplace for delivery of multichannel video programming is
an effective policy to reduce costs to consumers. To that end,
it is important that the satellite industry be afforded a
statutory scheme for licensing television broadcast programming
similar to that of the cable industry. At the same time, the
practical differences between the two industries must be
recognized and accounted for.
Second, the Committee reasserts the importance of
protecting and fostering the system of television networks as
they relate to the concept of localism. It is well recognized
that television broadcast stations provide valuable programming
tailored to local needs, such as news, weather, special
announcements and information related to local activities. To
that end, the Committee has adopted provisions that grant local
broadcast stations retransmission rights in their signals;
must-carry rights to assure that when one local station is
being retransmitted in a market by a satellite carrier, then
all must be carried; and network nonduplication, syndicated
exclusivity and sports blackout provisions to protect local
broadcasters' program exclusivity rights.
Finally, the Committee has structured the legislation in an
effort to encourage satellite carriers to offer their
subscribers local television signals and eliminate the
satellite industry's reliance upon retransmission of distant
signals. Although the legislation promotes satellite
retransmission of local stations, the Committee recognizes the
continued need to monitor the effects of distant signal
importation by satellite. To that end, the compulsory license
for retransmission of distant signals is extended for a period
of five years, to afford Congress the opportunity to evaluate
the effectiveness and continuing need for that license at the
end of the five-year period.
Hearings
On Thursday, February 25, 1999, the Committee held a
legislative hearing on H.R. 768, the ``Copyright Compulsory
License Improvement Act.'' The provisions of H.R. 768 were
incorporated by amendment into H.R. 1027 during consideration
by the Subcommittee on Courts and Intellectual Property on
March 18, 1999. The following individuals testified at the
hearing: Williams J. Roberts, Senior Attorney for Compulsory
Licenses, Copyright Office of the United States; Cullie
Tarleton, General Manager of WCCB-TV on behalf of the National
Association of Broadcasters; David Moskowitz, Senior Vice
President and General Counsel for Echostar Communications;
Michael R. Mountford, Executive Vice President for DSI Systems,
Incorporated; John H. Hutchinson, Executive Vice President and
Chief Operating Officer for Local TV on Satellite; Fritz E.
Attaway, Senior Vice President for Congressional Affairs and
General Counsel for the Motion Picture Association of America;
and Thomas J. Ostertag, General Counsel of the Office of the
Commissioner of Major League Baseball.
Committee Consideration
On March 18, 1999, the Subcommittee on Courts and
Intellectual Property met in open session and ordered reported
the bill H.R. 1027 with an amendment in the nature of a
substitute, and one amendment to the amendment in the nature of
a substitute, by a voice vote, a quorum being present. On March
24, 1999, the Committee met in open session and ordered
reported favorably the bill H.R. 1027 with an en bloc
amendment, by a voice vote, a quorum being present.
Vote of the Committee
H.R. 1027 was reported by voice vote on March 24, 1999,
with no objection heard.
Committee Oversight Findings
In compliance with clause 3(c)(1) of rule XI of the Rules
of the House of Representatives, the Committee reports that the
findings and recommendations of the Committee, based on
oversight activities under clause 2(b)(1) of rule X of the
Rules of the House of Representatives, are incorporated in the
descriptive portions of this report.
Committee on Government Reform and Oversight Findings
No findings or recommendations of the Committee on
Government Reform and Oversight were received as referred to in
clause 3(c)(4) of rule XIII of the Rules of the House of
Representatives.
New Budget Authority and Tax Expenditures
Clause 3(c)(2) of House rule XIII is inapplicable because
this legislation does not provide new budgetary authority or
increased tax expenditures.
Committee Cost Estimate
In compliance with clause 3(d)(2) of rule XIII of the Rules
of the House of Representatives, the Committee believes that
the bill will have no cost for the current fiscal year 2000,
and that there will be no cost incurred in carrying out H.R.
1027 for the next five fiscal years.
Constitutional Authority Statement
Pursuant to clause 3(d)(1) of rule XIII of the Rules of the
House of Representatives, the Committee finds the authority for
this legislation in Article 1, section 8, clause 8 of the
Constitution.
Section-by-Section Analysis
Section 1--Title
The title of the bill is the ``Copyright Compulsory License
Improvement Act.''
Section 2--Limitations on exclusive rights; secondary transmissions by
satellite carriers within local markets
Section 2 of the bill creates a new, permanent compulsory
license, found at section 122 of the Copyright Act of 1976, for
the retransmission of television broadcast stations by
satellite carriers to subscribers located within the local
markets of those stations.
Creation of a new compulsory license for retransmission of
local signals is necessary because the current section 119
license is limited to the retransmission of distant signals by
satellite. The section 122 license allows satellite carriers
for the first time to provide their subscribers with the TV
signals they want most: their local stations. A carrier may
retransmit the signal of a network station (or superstation) to
all subscribers who reside within the local market of that
station, without the burden of determining whether the
subscriber resides in an unserved household. The local market
for a television station will be determined by the Federal
Communications Commission and will correspond to the zone
established by the Commission for mandatory carriage by
satellite of local signals.
Because the section 122 license is permanent, subscribers
may obtain their local networks and superstations without fear
that their broadcast service may be turned off at a future
date. In addition, satellite carriers may deliver local
stations to commercial establishments as well as homes, as the
cable industry does under its license. These amendments create
parity between the satellite and cable industries in the
provision of television broadcast stations.
In order for a satellite carrier to be eligible for this
license, the carrier must be in full compliance with all
applicable rules and regulations of the Federal Communications
Commission, including any must-carry or programming exclusivity
requirements that the Commission may adopt by regulation or
law. Failure to fully comply with Commission rules with respect
to retransmission of one or more stations in the local market
precludes the carrier from making use of the section 122
license for all local retransmission in that market. Thus, for
example, if a satellite carrier fails to carry a local station
as required by Commission rule or regulation, then the carrier
loses the section 122 license for the stations that it is
retransmitting in the local market of those stations.
Because the copyrighted programming contained on local
broadcast programming is already licensed with the expectation
that all viewers in the local market will be able to view the
programming, the section 122 license is a royalty-free license.
Satellite carriers must, however, provide local broadcasters
with lists of their subscribers receiving local stations so
that broadcasters may verify that satellite carriers are making
proper use of the license. For each television broadcast
station that the satellite carrier retransmits locally, the
satellite carrier must send a list of only those subscribers,
listed alphabetically including their street address, county
and zip code, in the market that are receiving the station. The
subscriber information supplied to broadcasters is for
verification purposes only and may not be used by broadcasters
for other reasons.
Satellite carriers are liable for copyright infringement,
and subject to the full remedies of the Copyright Act, if they
violate one or more of the following requirements of the
section 122 license. First, satellite carriers may not in any
way willfully alter the programming contained on a local
broadcast station.
Second, satellite carriers may not use the section 122
license to retransmit a television broadcast station to a
subscriber located outside the local market of the station.
Retransmission of a station to a subscriber located outside the
station's local market is covered by section 119, provided that
all conditions of that license are satisfied. If a carrier
willfully or repeatedly violates this limitation on a
nationwide basis, then the carrier may be enjoined from
retransmitting that signal. If the broadcast station involved
is a network station, then the carrier could lose the right to
retransmit any network stations affiliated with that same
network. If the willful or repeated violation of the
restriction is performed on a local or regional basis, then the
right to retransmit the station (or, if a network station, then
all other stations affiliated with that network) can be
enjoined on a local or regional basis, depending upon the
circumstances. In addition to termination of service on a
nationwide or local or regional basis, statutory damages are
available up to $250,000 for each 6-month period during which
the pattern or practice of violations was carried out.
Satellite carriers have the burden of proving that they are not
improperly making use of the section 122 license to serve
subscribers outside the local markets of the television
broadcast stations they are providing. Local broadcasters are
given standing to sue for infringement of the section 122
license by amendment of chapter 501 of the Copyright Act.
The section 122 license is limited in geographic scope to
locations in the United States, including any commonwealth,
territory or possession of the United States. In addition, the
bill makes it clear that local retransmission of television
broadcast stations to subscribers for viewing is governed
solely by the section 122 license and that no provision of the
section 111 cable compulsory license should be interpreted to
allow satellite carriers to make local retransmission of
television broadcast stations under that license. Likewise, no
provision of the section 119 license (or any other law) should
be interpreted as authorizing local-into-local retransmission
by satellite, since the section 119 license is limited to
retransmission by satellite of distant television broadcast
signals.
The Committee acknowledges that authorization and
encouragement of local signals on satellite will result in a
proliferation of the number of television stations that will be
uplinked and available on satellites that serve the United
States. The Committee does not intend, however, that the
section 122 license be construed in such a way as to prevent
stations that are uplinked principally for delivery as local
signals under section 122 be prohibited from also being
delivered as distant signals under section 119, provided that
all the requirements of section 119 are met. If a satellite
carrier uplinks a station and delivers it to a subscriber
located in that station's local market, then the carrier may
make use of the section 122 license. The carrier may also
retransmit that same station to subscribers in distant markets
under the section 119 license, provided that all the
requirements of section 119 are met.
Section 3--Extension of effect of amendments to section 119 of title
17, United States Code.
The section 119 satellite compulsory license is extended
for a period of five years by changing the expiration date of
the legislation from December 31, 1999, to December 31, 2004.
It is understood that should the section 119 license be allowed
to expire in 2004, it shall do so at midnight on December 31,
2004, so that the license will cover the entire period of the
second accounting period of 2004.
Section 4--Computation of royalty fees for satellite carriers
H.R. 1027 reduces the royalty fees currently paid by
satellite carriers for the retransmission of network and
superstations by 45 percent and 30 percent, respectively. These
are reductions of the 27-cent royalty fees made effective by
the Librarian of Congress on January 1, 1998. The reductions
take effect on July 1, 1999, which is the beginning of the
second accounting period for 1999, and apply to all accounting
periods for the five-year extension of the section 119 license.
In addition, section 119(c) of title 17 is amended to
clarify that in royalty distribution proceedings conducted
under section 802 of the Copyright Act, the Public Broadcasting
Service may act as agent for all public television copyright
claimants and all Public Broadcasting Service member stations.
Section 5--Public Broadcasting Service satellite feed
H.R. 1027 extends the section 119 license to cover the
copyrighted programming carried on the Public Broadcasting
Service's national satellite feed. The national satellite feed
is treated as a superstation for compulsory license purposes,
thereby avoiding the unserved householdrestriction applicable
to network signals. Also, the bill requires that PBS must certify to
the Copyright Office on an annual basis--subsequent to the date on
which a majority of satellite subscribers are able to receive at least
one noncommercial educational television broadcast station located in
their local market, or two years after the effective date of H.R. 1027,
whichever is earlier--that the PBS membership continues to support
retransmission of the national satellite feed under the section 119
compulsory license.
Section 6--Local to local limitations retransmission
The ``unserved household'' limitation of the section 119
license, is removed from the Copyright Act and contained under
the rubric of network nonduplication protection. Network
nonduplication protection is established in section 10 of the
bill.
In addition to creating network nonduplication protection,
the Committee is making another significant amendment to the
section 119 compulsory license in an effort to encourage the
satellite industry to provide their subscribers with their
local network signals and reduce the reliance upon distant
signals. In those circumstances where a satellite carrier
begins local service of two or more network stations in a
television market, no distant signals of those networks that
the carrier is providing locally may be imported into the
market. This provision applies to both the satellite carrier
providing the local service--such that the carrier cannot
provide both the local and a distant affiliate of the same
network--as well as other satellite carriers operating in the
market, who would be prohibited from importing a distant signal
of the same network that another carrier is providing locally
in the market. The Committee believes that the provision will
create a strong incentive for all satellite carriers to offer
local network signals and will reduce the satellite industry's
reliance on distant network signals.
Section 7--Application of Federal Communications Commission regulations
The section 119 license is amended to clarify that
satellite carriers must comply with all rules, regulations, and
authorizations of the Federal Communications Commission in
order to obtain the benefits of the section 119 license. This
would include any programming exclusivity provisions that the
Commission may adopt by law or regulation. Thus, for example,
if a satellite carrier retransmitted a network station to a
subscriber or subscribers in violation of FCC network
nonduplication rules, then the carrier could not claim that it
had a copyright compulsory license to make such retransmission
and would be subject to an action for infringement if it
distributed programming without authorization from the owner.
Section 8--Retransmission consent
H.R. 1027 amends the retransmission consent provisions of
section 325(b) of the Communications Act to account for changes
in the satellite delivery of television broadcast stations. As
a general rule, a satellite carrier must obtain retransmission
consent from every television broadcast station that it
retransmits to its subscribers. Two exemptions to
retransmission consent are created for certain satellite
retransmission. First, a satellite carrier need not obtain
retransmission consent to retransmit a distant television
broadcast station to its subscribers if the station was a
superstation, as defined under section 119 of the Copyright
Act, on May 1, 1991, and was retransmitted under the section
119 license as of July 1, 1998. This exemption from
retransmission consent is intended to apply to television
broadcast stations such as WGN, Chicago, Illinois, that were
previously considered exempt from retransmission consent but,
because of their change in status to a network station under
the Copyright Act, lost that exemption under current law.
Second, retransmission consent does not apply to a network
station that is retransmitted to subscribers who are outside
the area of nonduplication protection that may be asserted by
the local affiliate of the same network. This exemption allows
satellite carriers to retransmit distant network signals to
subscribers who previously resided in ``unserved households.''
Third, a more general exemption to retransmission consent
is created that applies to cable operators, satellite carriers,
and other multichannel video providers. Retransmission consent
need not be obtained for a television broadcast station that
was a superstation, as defined under section 119 of the
Copyright Act, on May 1, 1991, and was retransmitted by a
satellite carrier under the section 119 license as of July 1,
1998. The intention of this exemption is to grant superstations
that have become cable networks, such as WTBS, retransmission
consent rights to prohibit a satellite carrier from
retransmitting the stations without their permission.
The Federal Communications Commission is directed to
commence a rulemaking proceeding within 45 days of enactment of
H.R. 1027 to establish procedures for the exercise of
retransmission consent rights. The rulemaking must be completed
no later than 180 days from date of enactment.
Section 9--Must-carry for satellite carriers retransmitting television
broadcast signals
H.R. 1027 creates must-carry obligations for satellite
carriers retransmitting television broadcast signals as a
condition of the copyright license. The provisions are similar
to those applicable to the cable industry. Any satellite
carrier that retransmits a television broadcast signal to
subscribers residing within the local market of that signal
must carry all the television stations in the local market to
subscribers residing in the local market. This approach of
``carry one, then carry all'' is subject to the retransmission
consent election of section 8 of the bill. Thus, a satellite
carrier does not have to carry a local television broadcast
station if the station elects retransmission consent rather
than must-carry. The ``local market'' of a broadcast station is
defined as the station's Designated Market Area, as determined
by Nielsen Media Research.
The legislation tracks the cable must-carry provisions of
the 1992 Cable Act by relieving satellite carriers from the
burden of having to carry more than one affiliate of the same
network if both of the affiliates are located in the same local
market. Local broadcasters are also afforded some channel
positioning rights and are required to provide a good quality
signal to the satellite carrier's local receive facility in
order to assert must-carry rights. Satellite carriers are
forbidden from obtaining compensation from local broadcasters
in exchange for carriage. The bill also provides a means for
broadcasters to seek redress from the Federal Communications
Commission for violations of the must-carry obligations.
The Federal Communications Commission is directed to adopt
regulations within 6 months of enactment of the legislation to
implement the must-carry obligations for satellite. In no event
shall the Commission impose less than full must-carry on
satellite carriers that make local retransmission of television
broadcast stations later than January 1, 2002.
Section 10--Network nonduplication; syndicated exclusivity and sports
blackout
The Federal Communications Commission is directed to adopt
network nonduplication, syndicated exclusivity and sports
blackout rules applicable to satellite retransmission of
television broadcast signals. To the extent possible, the
Commission should model its new regulations after those that
currently apply to the cable industry.
The bill sets forth express network nonduplication
provisions that will solve the problems associated with
satellite delivery of network signals and the recent shut-offs
of network signals that have occurred as the result of federal
court injunctions. Local network broadcasters are granted
network nonduplication protection against satellite carriers
under two circumstances. First, for the satellite carrier that
provides local retransmission, the local network broadcaster
can assert nonduplication protection throughout its local
market to insure that the satellite carrier offering local
retransmission carries only the local network broadcaster, and
does not provide a distant network station affiliated with that
same network. Thus, satellite subscribers who reside within the
local market of a network affiliate will receive only the local
affiliate and not distant affiliates, which is the same
restriction that applies to the cable industry.
Second, the bill provides network nonduplication protection
for the local broadcaster against a satellite carrier that does
not offer local retransmission and is importing distant network
signals. The local network station will receive nonduplication
protection for all areas within its local market where the
Individually Located Longley-Rice (ILLR) maps, recently adopted
by the Federal Communications Commission, predicts that an
over-the-air signal of Grade B intensity can be received. A
satellite carrier would be prohibited from providing
subscribers located in these areas with distant network
stations unless one of two things occurs. First, if a
subscriber located in such an area has obtained a written
waiver from the local network broadcaster, then nonduplication
protection would not apply. Second, if a subscriber conducts a
signal intensity measurement at his or her household that is in
accordance with FCC-prescribed standards, then the subscriber
may petition the Commission to waive nonduplication protection
and allow the subscriber to receive distant network signals.
Any discrepancies regarding the sufficiency of the test will be
resolved by the Commission.
If a satellite subscriber's network service is terminated
as a result of nonduplication protection asserted by a local
affiliate, or as a result of the provisions of section 119 of
the Copyright Act, then the satellite carrier must provide the
subscriber with a free 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.
The network nonduplication provisions of the bill will
protect local broadcasters in addition to assuring that every
consumer will have access to network broadcast stations. During
the period in which the Federal Communications Commission
adopts its network nonduplication regulations, the unserved
household limitation in section 119 of the Copyright Act shall
remain in place.
Section 11--Study on technical and economic impact of must-carry on
delivery of local signals
The Federal Communications Commission and the Copyright
Office are directed to report jointly to Congress on the
effects of full must-carry for the retransmission of local
signals by satellite, particularly in smaller television
markets throughout the country.
Section 12--Effective date
The amendments made by the bill take effect on July 1,
1999, the first day of a new copyright accounting period for
satellite carriers, except the amendments made by section 5,
which take effect on date of enactment, and section 6(l)(B)(ii)
which takes effect one year after date of enactment.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
TITLE 17, UNITED STATES CODE
* * * * * * *
CHAPTER 1--SUBJECT MATTER AND SCOPE OF COPYRIGHT
Sec.
101. Definitions.
* * * * * * *
122. Limitations on exclusive rights; secondary transmissions by
satellite carriers within local market.
* * * * * * *
Sec. 119. Limitations on exclusive rights: Secondary transmissions of
superstations and network stations for private home
viewing
(a) Secondary Transmissions by Satellite Carriers.--
[(1) Superstations.--] (1) Superstations and pbs
satellite feed.--Subject to the provisions of
paragraphs (3), (4), and [(6)] (5) of this subsection
and section 114(d), secondary transmissions of a
primary transmission made by a superstation or by the
Public Broadcasting Service satellite feed and
embodying a performance or display of a work shall be
subject to statutory licensing under this section if
the secondary transmission is made by a satellite
carrier to the public for private home viewing, 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, and the carrier
makes a direct or indirect charge for each
retransmission service to each household receiving the
secondary transmission or to a distributor that has
contracted with the carrier for direct or indirect
delivery of the secondary transmission to the public
for private home viewing. In the case of the Public
Broadcasting Service satellite feed, subsequent to--
(A) the date when a majority of subscribers
to satellite carriers are able to receive the
signal of at least one noncommercial
educational television broadcast station from
their satellite carrier within such stations'
local market, or
(B) 2 years after the effective date of the
Copyright Compulsory License Improvement Act,
whichever is earlier, the statutory license created by
this section shall be conditioned 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 certification.
[(2) Network stations.--
[(A) In general.--Subject to the provisions
of subparagraphs (B) and (C) of this paragraph
and paragraphs (3), (4), (5), and (6).
[(B) Secondary transmissions to unserved
households.--The statutory license provided for
in subparagraph (A) shall be limited to
secondary transmissions to persons who reside
in unserved households.
[(C) Submission of subscriber lists to
networks.--A satellite carrier that makes
secondary transmissions of a primary
transmission made by a network station pursuant
to subparagraph (A) shall, 90 days after
commencing such secondary transmissions, submit
to the network that owns or is affiliated with
the network station a list identifying (by name
and street address, including county and zip
code) all subscribers to which the satellite
carrier currently makes secondary transmissions
of that primary transmission. Thereafter, on
the 15th of each month, the satellite carrier
shall submit to the network a list identifying
(by name and street address, including county
and zip code) any persons who have been added
or dropped as such subscribers since the last
submission under this subparagraph. Such
subscriber information submitted by a satellite
carrier may be used only for purposes of
monitoring compliance by the satellite carrier
with this subsection. The submission
requirements of this subparagraph shall apply
to a satellite carrier only if the network to
whom the submissions are to be made places on
file with the Register of Copyrights a document
identifying thename and address of the person
to whom such submissions are to be made. The Register shall maintain
for public inspection a file of all such documents.]
(2) Network stations.--Subject to the provisions of
paragraphs (3), (4), and (5) of this subsection and
section 114(d), secondary transmissions of programming
contained in a primary transmission made by a network
station and embodying a performance or display of a
work shall be subject to statutory licensing under this
section if the secondary transmission is made by a
satellite carrier to the public for private home
viewing, 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, and
the carrier makes a direct or indirect charge for such
retransmission service to each subscriber receiving the
secondary transmission. Notwithstanding the preceding
provisions of this paragraph, secondary transmissions
of programming contained in a primary transmission made
by a network station and embodying a performance or
display of a work shall not be subject to statutory
licensing under this section in a local market in which
the satellite carrier, or another satellite carrier, is
serving subscribers in that market with 2 or more
television broadcast stations located in that market
pursuant to section 122.
(3) Noncompliance with reporting and payment
requirements.--Notwithstanding the provisions of
paragraphs (1) and (2), the willful or repeated
secondary transmission to the public by a satellite
carrier of a primary transmission made by a
superstation or a network 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 by sections 502
through 506 and 509, where the satellite carrier has
not deposited the statement of account and royalty fee
required by subsection (b)[, or has failed to make the
submissions to networks required by paragraph (2)(C)].
(4) Willful alterations.--Notwithstanding the
provisions of paragraphs (1) and (2), the secondary
transmission to the public by a satellite carrier of a
primary transmission made by a superstation or a
network 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 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 advertising or station announcement
transmitted by the primary 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.
[(5) Violation of territorial restrictions on
statutory license for network stations.--
[(A) Individual violations.--The willful or
repeated secondary transmission by a satellite
carrier of a primary transmission made by a
network station and embodying a performance or
display of a work to a subscriber who does not
reside in an unserved household 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--
[(i) no damages shall be awarded for
such act of infringement if the
satellite carrier took corrective
action by promptly withdrawing service
from the ineligible subscriber, and
[(ii) any statutory damages shall not
exceed $5 for such subscriber for each
month during which the violation
occurred.
[(B) Pattern of violations.--If a satellite
carrier engages in a willful or repeated
pattern or practice of delivering a primary
transmission made by a network station and
embodying a performance or display of a work to
sub-
scribers who do not reside in unserved
households, then in addition to the remedies
set forth in subparagraph (A)--
[(i) 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 satellite
carrier, for private home viewing, of
the primary transmissions of any
primary network station affiliated with
the same network, and the court may
order statutory damages of not to
exceed $250,000 for each 6-month period
during which the pattern or practice
was carried out; and
[(ii) if the pattern or practice has
been carried out on a local or regional
basis, the court shall order a
permanent injunction barring the
secondary transmission, for private
home viewing in that locality or
region, by the satellite carrier of the
primary transmissions of any primary
network station affiliated with the
same network, and the court may order
statutory damages of not to exceed
$250,000 for each 6-month period during
which the pattern or practice was
carried out.
[(C) Previous subscribers excluded.--
Subparagraphs (A) and (B) do not apply to
secondary transmissions by a satellite carrier
to persons who subscribed to receive such
secondary transmissions from the satellite
carrier or a distributor before November 16,
1988.
[(D) Burden of proof.--In any action brought
under this paragraph, the satellite carrier
shall have the burden of proving that its
secondary transmission of a primary
transmission by a network station is for
private home viewing to an unserved household.]
[(6)] (5) Discrimination by a satellite carrier.--
Notwithstanding the provisions of paragraph (1), the
willful or repeated secondary transmission to the
public by a satellite carrier of a primary transmission
made by a superstation or a network 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 by
sections 502 through 506 and 509, if the satellite
carrier unlawfully discriminates against a distributor.
[(7)] (6) Geographic limitation on secondary
transmissions.--The statutory license created by this
section shall apply only to secondary transmissions to
households located in the United States.
[(8) Transitional signal intensity measurement
procedures.--
[(A) In general.--Subject to subparagraph
(C), upon a challenge by a network station
regarding whether a subscriber is an unserved
household within the predicted Grade B Contour
of the station, the satellite carrier shall,
within 60 days after the receipt of the
challenge--
[(i) terminate service to that
household of the signal that is the
subject of the challenge, and within 30
days thereafter notify the network
station that made the challenge that
service to that household has been
terminated; or
[(ii) conduct a measurement of the
signal intensity of the subscriber's
household to determine whether the
household is an unserved household
after givingreasonable notice to the
network station of the satellite carrier's intent to conduct the
measurement.
[(B) Effect of measurement.--If the satellite
carrier conducts a signal intensity measurement
under subparagraph (A) and the measurement
indicates that--
[(i) the household is not an unserved
household, the satellite carrier shall,
within 60 days after the measurement is
conducted, terminate the service to
that household of the signal that is
the subject of the challenge, and
within 30 days thereafter notify the
network station that made the challenge
that service to that household has been
terminated; or
[(ii) the household is an unserved
household, the station challenging the
service shall reimburse the satellite
carrier for the costs of the signal
measurement within 60 days after
receipt of the measurement results and
a statement of the costs of the
measurement.
[(C) Limitation on measurements.--(i)
Notwithstanding subparagraph (A), a satellite
carrier may not be required to conduct signal
intensity measurements during any calendar year
in excess of 5 percent of the number of
subscribers within the network station's local
market that have subscribed to the service as
of the effective date of the Satellite Home
Viewer Act of 1994.
[(ii) If a network station challenges whether
a subscriber is an unserved household in excess
of 5 percent of the subscribers within the
network's station local market within a
calendar year, subparagraph (A) shall not apply
to challenges in excess of such 5 percent, but
the station may conduct its own signal
intensity measurement of the subscriber's
household after giving reasonable notice to the
satellite carrier of the network station's
intent to conduct the measurement. If such
measurement indicates that the household is not
an unserved household, the carrier shall,
within 60 days after receipt of the
measurement, terminate service to the household
of the signal that is the subject of the
challenge and within 30 days thereafter notify
the network station that made the challenge
that service has been terminated. The carrier
shall also, within 60 days after receipt of the
measurement and a statement of the costs of the
measurement, reimburse the network station for
the cost it incurred in conducting the
measurement.
[(D) Outside the predicted grade b contour.--
(i) If a network station challenges whether a
subscriber is an unserved household outside the
predicted Grade B Contour of the station, the
station may conduct a measurement of the signal
intensity of the subscriber's household to
determine whether the household is an unserved
household after giving reasonable notice to the
satellite carrier of the network station's
intent to conduct the measurement.
[(ii) If the network station conducts a
signal intensity measurement under clause (i)
and the measurement indicates that--
[(I) the household is not an unserved
household, the station shall forward
the results to the satellite carrier
who shall, within 60 days after receipt
of the measurement, terminate the
service to the household of the signal
that is the subject of the challenge,
and shall reimburse the station for the
costs of the measurement within 60 days
after receipt of the measurement
results and a statement of such costs;
or
[(II) the household is an unserved
household, the station shall pay the
costs of the measurement.
[(9) Loser pays for signal intensity measurement;
recovery of measurement costs in a civil action.--In
any civil action filed relating to the eligibility of
subscribing households as unserved households--
[(A) a network station challenging such
eligibility shall, within 60 days after receipt
of the measurement results and a statement of
such costs, reimburse the satellite carrier for
any signal intensity measurement that is
conducted by that carrier in response to a
challenge by the network station nd that
establishes the household is an unserved
household; and
[(B) a satellite carrier shall, within 60
days after receipt of the measurement results
and a statement of such costs, reimburse the
network station challenging such eligibility
for any signal intensity measurement that is
conducted by that station and that establishes
the household is not an unserved household.
[(10) Inability to conduct measurement.--If a network
station makes a reasonable attempt to conduct a site
measurement of its signal at a subscriber's household
and is denied access for the purpose of conducting the
measurement, and is otherwise unable to conduct a
measurement, the satellite carrier shall within 60 days
notice thereof, terminate service of the station's
network to that household.]
* * * * * * *
(c) Adjustment of Royalty Fees.--
(1) * * *
* * * * * * *
(4) Reduction.--
(A) Superstation.--The rate of the royalty
fee in effect on January 1, 1998, payable 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 retransmitting the
Public Broadcasting Service satellite feed, the Public
Broadcasting Service shall be the agent for all public
television copyright claimants and all Public
Broadcasting Service member stations.
(d) Definitions.--As used in this section--
(1) * * *
* * * * * * *
[(10) Unserved household.--The term ``unserved
household'', with respect to a particular television
network, means a household that--
[(A) 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 Communications
Commission) of a primary network station
affiliated with that network, and
[(B) has not, within 90 days before the date
on which that household subscribes, either
initially or on renewal, to receive secondary
transmissions by a satellite carrier of a
network station affiliated with that network,
subscribed to a cable system that provides the
signal of a primary network station affiliated
with that network.
[(11) Local market.--The term ``local market'' means
the area encompassed within a network station's
predicted Grade B contour as that contour is defined by
the Federal Communications Commission.]
(12) Public broadcasting service satellite feed.--The
term ``Public Broadcasting Service satellite feed''
means the national satellite feed distributed by the
Public Broadcasting Service consisting of educational
and informational programming intended for private home
viewing, to which the Public Broadcasting Service holds
national terrestrial broadcast rights.
(13) Local market.--The term ``local market'' 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. 122. Limitations on exclusive rights; secondary transmissions by
satellite carriers within local markets
(a) Secondary Transmissions of Television Broadcast Stations
by Satellite Carriers.--A secondary transmission of a primary
transmission of a television 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 Federal
Communications Commission governing the carriage of
television broadcast station signals; and
(3) the satellite carrier makes a direct or indirect
charge for the secondary transmission to--
(A) each subscriber receiving the secondary
transmission; or
(B) a distributor that has contracted with
the satellite carrier for direct or indirect
delivery of the secondary transmission to the
public.
(b) Reporting Requirements.--
(1) Initial lists.--A satellite carrier that makes
secondary transmissions of a primary transmission made
by a network station under subsection (a) shall, within
90 days after commencing such secondary transmissions,
submit to that station a list identifying (by name in
alphabetical order and street address, including county
and zip code) only those subscribers located in that
station's local market to which the satellite carrier
currently makes secondary transmissions of that primary
transmission.
(2) Subsequent lists.--After the list is submitted
under paragraph (1), the satellite carrier shall, on
the 15th of each month, submit to the station 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.--Subscriber
information submitted by a satellite carrier under this
subsection may be used only for the purposes of
monitoring compliance by the satellite carrier with
this section.
(4) Requirements of stations.--The submission
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 submissions are
to be made. The Register shall maintain for public
inspection a file of all such documents.
(c) No Royalty Fee Required.--A satellite carrier whose
secondary transmissions are subject to statutory licensing
under subsection (a) shall have no royalty obligation for such
secondary transmissions.
(d) Noncompliance With Reporting Requirements.--
Notwithstanding subsection (a), the willful or repeated
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 provided under sections 502 through 506
and 509, if the satellite carrier has not complied with the
reporting requirements of subsection (b).
(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 provided 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 advertising or station announcement transmitted by
the primary transmitter during, or immediately before or after,
the transmission of such program, is inany 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 Stations.--
(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 performance 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, 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
service from the ineligible subscriber; and
(B) any statutory damages shall not exceed $5
for such subscriber for each month during 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 station'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 satellite carrier of the primary
transmissions of that television broadcast
station (and if such television broadcast
station is a network station, all other
television broadcast stations affiliated 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
respect to more than one television broadcast
station (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 region by the
satellite carrier of the primary transmissions
of any television broadcast station, 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.
(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, exemption, or license through which secondary
transmissions by satellite carriers of programming contained in
a primary transmission made by a television broadcast station
may be made without obtaining the consent of the copyright
owner.
(j) Definitions.--In this section--
(1) Distributor.--The term ``distributor'' means an
entity which contracts to distribute secondary
transmissions from a satellite carrier and, either 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 authorizations 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 transmission''
have the meanings given such terms under section
119(d).
(4) Subscriber.--The term ``subscriber'' means an
entity that receives a secondary transmission service
by means of a secondary transmission from a satellite
and pays a fee for the service, 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 Communications
Commission under subpart E of part 73 of title 47, Code
of Federal Regulations.
* * * * * * *
CHAPTER 5--COPYRIGHT INFRINGEMENT AND REMEDIES
* * * * * * *
Sec. 501. Infringement of copyright
(a) * * *
* * * * * * *
(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
station.
* * * * * * *
----------
SECTION 4 OF THE SATELLITE HOME VIEWER ACT OF 1994
SEC. 4. TERMINATION.
(a) Expiration of Amendments.--Section 119 of title 17,
United States Code, as amended by section 2 of this Act, ceases
to be effective on December 31, [1999] 2004.
* * * * * * *
----------
COMMUNICATIONS ACT OF 1934
* * * * * * *
TITLE III--PROVISIONS RELATING TO RADIO
PART I--GENERAL PROVISIONS
* * * * * * *
SEC. 325. FALSE DISTRESS SIGNALS; REBROADCASTING; STUDIOS OF FOREIGN
STATIONS.
(a) * * *
[(b)(1) Following the date that is one year after the date of
enactment of the Cable Television Consumer Protection and
Competition Act of 1992, no cable system or other multichannel
video programming distributor shall retransmit the signal of a
broadcasting station, or any part thereof, except--
[(A) with the express authority of the originating
station; or
[(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.
[(2) The provisions of this subsection shall not apply to--
[(A) retransmission of the signal of a noncommercial
broadcasting station;
[(B) retransmission directly to a home satellite
antenna of the signal of a broadcasting station that is
not owned or operated by, or affiliated with, a
broadcasting network, if such signal was retransmitted
by a satellite carrier on May 1, 1991;
[(C) retransmission of the signal of a broadcasting
station that is owned or operated by, or affiliated
with, a broadcasting network directly to a home
satellite antenna, if the household receiving the
signal is an unserved household; or
[(D) retransmission by a cable operator or other
multichannel video programming distributor of the
signal of a superstation if such signal was obtained
from a satellite carrier and the originating station
was a superstation on May 1, 1991.
For purposes of this paragraph, the terms ``satellite
carrier'', ``superstation'', and ``unserved household'' have
the meanings given those terms, respectively, in section 119(d)
of title 17, United States Code, as in effect on the date of
enactment of the Cable Television Consumer Protection and
Competition Act of 1992.]
(b)(1) No cable system or other multichannel video
programming distributor shall retransmit the signal of a
broadcasting station, or any part thereof, except--
(A) with the express authority of the 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 337, 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 to--
(A) retransmission of the signal of a noncommercial
broadcasting station;
(B) retransmission of the signal of a television
broadcast station outside the station's local market by
a satellite carrier directly to its subscribers, if--
(i) such station was a superstation on May 1,
1991; and
(ii) as of July 1, 1998, such station was
retransmitted by a satellite carrier under the
statutory license provided in section 119 of
title 17, United States Code;
(C) retransmission of the signal of a broadcasting
station that is owned or operated by, or affiliated
with, a broadcasting network directly to a home
satellite antenna, if the household receiving the
signal is located in an area in which such station may
not assert its rights not to have its signal duplicated
under the Commission's network nonduplication
regulations; or
(D) retransmission by a cable operator or other
multichannel video provider of the signal of a
television broadcast station outside the station's
local market if such signal was obtained from a
satellite carrier and--
(i) the originating station was a
superstation on May 1, 1991; and
(ii) as of July 1, 1998, such station was
retransmitted by a satellite carrier under the
statutory license provided in section 119 of
title 17, United States Code.
(3)(A) * * *
* * * * * * *
(C) Within 45 days after the effective date of the Satellite
Television Improvement Act, the Commission shall commence a
rulemaking proceeding to revise the regulations governing the
exercise by television broadcast stations of the right to grant
retransmission consent under this subsection, and such other
regulations as are necessary to administer the limitation
contained in paragraph (2). Such regulations shall establish
election time periods that correspond with those regulations
adopted under subparagraph (B). The rulemaking shall be
completed within 180 days after the effective date of the
Satellite Television Improvement Act.
* * * * * * *
(7) For purposes of this subsection:
(A) The term ``superstation'' means a television
broadcast station, other than a network station,
licensed by the Commission that is secondarily
transmitted by a satellite carrier.
(B) The term ``satellite carrier'' has the meaning
given that term in section 119(d) of title 17, United
States Code.
* * * * * * *
SEC. 338. CARRIAGE OF LOCAL TELEVISION SIGNALS BY SATELLITE CARRIERS.
(a) Carriage Obligations.--Each satellite carrier providing
direct to home service of a television broadcast station to
subscribers located within the local market of such station
pursuant to section 122 of title 17, United States Code, shall,
not later than January 1, 2002, carry all television broadcast
stations located within that local market. Carriage of
additional television broadcast stations within the local
market shall be at the discretion of the satellite carrier,
subject to section 325(b).
(b) Good Signal Required.--
(1) Costs.--A television broadcast station asserting
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. The selection of a
local receive facility by a satellite carrier shall not
be made in a manner that frustrates the purposes of
this section.
(2) Regulations.--The regulations issued under
subsection (g) shall set forth the obligations
necessary to carry out this subsection.
(c) Duplication Not Required.--Notwithstanding subsection
(a), a satellite carrier shall not be required to carry the
signal of any local television broadcast station that
substantially duplicates the signal of another local television
broadcast station which is secondarily transmitted by the
satellite carrier, or to carry the signals of more that one
local television broadcast station affiliated with a particular
broadcast network (as the term is defined by regulation).
(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 station
to subscribers in that station's local market on contiguous
channels 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 carriage of local
television broadcast stations in fulfillment of the
requirements of this section or for channel positioning rights
provided to such stations under this section, except that any
such station may be required to bear the costs associatedwith
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 obligations
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 the signal of such
station or has otherwise failed to comply with the
channel positioning or repositioning or other
requirements of this section. The satellite carrier
shall, within 30 days of such written notification,
respond in writing to such notification and either
commence to carry the signal of such station in
accordance with the terms requested or state its
reasons for believing that it is not obligated to carry
such signal or is in compliance with the channel
positioning and repositioning or other requirements of
this section. A local television broadcast station that
is denied carriage or channel positioning or
repositioning in accordance with this section by a
satellite carrier may obtain review of such denial by
filing a complaint with the Commission. Such complaint
shall allege the manner in which such satellite carrier
has failed to meet its obligations and the basis for
such allegations.
(2) Opportunity to respond.--The Commission shall
afford such satellite carrier and opportunity to
present data and arguments to establish that there has
been no failure to meet its obligations under this
section.
(3) Remedial actions; dismissal.--Within 120 days
after the date a complaint is filed, the Commission
shall determine whether the satellite carrier has met
its obligations under this section. If the Commission
determines that the satellite carrier has failed to
meet such obligations, the Commission shall order the
satellite carrier to reposition the complaining station
or, in the case of an obligation to carry a station, to
commence carriage of the station and to continue such
carriage for at least 12 months. If the Commission
determines that the satellite carrier has fully met the
requirements of this section, it shall dismiss the
complaint.
(g) Regulations by Commission.--Within 180 days after the
effective date of this section, the Commission shall, following
a rulemaking proceeding, issue regulations implementing the
requirements imposed by this section.
(h) Definitions.--As used in this section:
(1) Television broadcast station.--The term
``television broadcast station'' means a full-power
television broadcast station, and does not include a
low-power or translator television broadcast station.
(2) Local market.--The term ``local market'' means
the designated market area in which a station is
located.
(3) Designated market area.--The term ``designated
market area'' means a designated market area, as
determined by the Nielsen Media Research and published
in the DMA Market and Demographic Report or, if no
longer published, as determined by another commercial
publication that delineates television markets based on
viewing patterns.
(4) Local receive facility.--The term local receive
facility means the reception point in the local market
of a television broadcast station or in a market
contiguous to the local market of a television
broadcast station at which a satellite carrier
initially receives the signal of the station for
purposes of transmission of such signals to the
facility which uplinks the signals to the carrier's
satellites for secondary transmission to the satellite
carrier's subscribers. The designation of a local
receive facility by a satellite carrier shall not be
used to undermine or evade the carriage requirements
imposed by this section.
* * * * * * *