[House Report 116-354]
[From the U.S. Government Publishing Office]
116th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 116-354
======================================================================
SATELLITE TELEVISION COMMUNITY PROTECTION AND PROMOTION ACT OF 2019
_______
December 17, 2019.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Nadler, from the Committee on the Judiciary, submitted the
following
R E P O R T
[To accompany H.R. 5140]
The Committee on the Judiciary, to whom was referred the
bill (H.R. 5140) to amend title 17, United States Code, to
narrow the category of households eligible to receive signals
under a distant-signal satellite license, 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
Purpose and Summary.............................................. 4
Background and Need for the Legislation.......................... 4
Hearings......................................................... 7
Committee Consideration.......................................... 7
Committee Votes.................................................. 7
Committee Oversight Findings..................................... 7
New Budget Authority and Tax Expenditures and Congressional
Budget Office Cost Estimate.................................... 8
Duplication of Federal Programs.................................. 8
Performance Goals and Objectives................................. 8
Advisory on Earmarks............................................. 8
Section-by-Section Analysis...................................... 8
Changes in Existing Law Made by the Bill, as Reported............ 10
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Satellite Television Community
Protection and Promotion Act of 2019''.
SEC. 2. ELIGIBILITY TO RECEIVE SIGNALS UNDER A DISTANT-SIGNAL SATELLITE
LICENSE.
(a) In General.--Section 119 of title 17, United States Code, is
amended--
(1) in subsection (a)--
(A) in paragraph (2)--
(i) in subparagraph (A)--
(I) by striking ``signals, and'' and
inserting ``signals,'';
(II) by inserting ``, and the carrier
provides local-into-local service to
all DMAs'' after ``receiving the
secondary transmission''; and
(III) by adding at the end the
following new sentence: ``Failure to
reach an agreement with network
stations to retransmit their signals
shall not be construed to affect
compliance with providing local-into-
local service to all DMAs if the
satellite carrier has the capability to
retransmit such signals when an
agreement is reached.''; and
(ii) in subparagraph (B)--
(I) by striking clauses (ii) and
(iii); and
(II) by adding at the end the
following:
``(ii) Short markets.--In the case of
secondary transmissions to households located
in short markets, subject to clause (i), the
statutory license shall be further limited to
secondary transmissions of only those primary
transmissions of network stations that embody
the programming of networks not offered on the
primary stream or the multicast stream
transmitted by any network station in that
market.''; and
(iii) by adding at the end the following:
``(D) Temporary and limited use of license.--
``(i) In general.--Notwithstanding the
requirement under subparagraph (A) that a
satellite carrier provide local-into-local
service to all DMAs before making a secondary
transmission under the license under this
section, a satellite carrier that does not
provide local-into-local service to all DMAs
may make a covered transmission under such
license if not later than 180 days after the
date of the enactment of the Satellite
Television Community Protection and Promotion
Act of 2019 the satellite carrier--
``(I) demonstrates that it has acted
reasonably and made a good faith effort
to provide local-into-local service to
all DMAs and that it will continue to
make a good faith effort to provide
local-into-local service to all DMAs;
and
``(II) files a Notice of Temporary
Limited Use with the Copyright Office
in accordance with clause (ii).
``(ii) Notice of temporary limited use.--A
Notice of Temporary Limited Use filed with the
Copyright Office under this subparagraph shall
contain--
``(I) an affirmation that the carrier
intends to make covered transmissions
under the license under this section
despite not providing local-into-local
service to all DMAs;
``(II) a signed statement that the
satellite carrier acted reasonably and
made good faith efforts to provide
local-into-local service to all DMAs;
``(III) a list of the designated
market areas with respect to which no
local-into-local service is provided by
the satellite carrier; and
``(IV) a summary of actions taken by
the satellite carrier to make
arrangements to provide local-into-
local service to all DMAs.
``(iii) Period of temporary and limited
license.--
``(I) Initial 90-day period.--A
satellite carrier that meets the
requirements of this subparagraph may
use the license under this section to
make covered transmissions for a 90-day
period beginning on the date such
carrier files a Notice of Temporary
Limited Use with the Copyright Office.
``(II) Additional periods.--The
initial 90-day period described under
clause (I) may be extended for
additional periods of 90 days if the
satellite carrier files a new Notice of
Temporary Limited Use with the
Copyright Office on or before the last
day of such initial period, and each
successive 90-day period thereafter.
``(iv) Audit and verification of notices.--
The Register of Copyrights shall issue
regulations that are similar in nature to the
regulations issued under subsection (b)(2) to
permit interested parties to verify and audit
Notices of Temporary Limited Use filed by
satellite carriers under this subparagraph.
``(v) Challenge.--Any owner of a network
station for which the primary stream or
multicast stream of that network would have
been transmitted by a satellite carrier under
the license under this section but for the
failure of that satellite carrier to provide
local-into-local service to all DMAs may bring
a civil action to challenge the sufficiency of
the reasonable actions and good faith efforts
of that satellite carrier to provide local-
into-local service to all DMAs, as such actions
and efforts are described in the applicable
Notice of Temporary Limited Use.
``(vi) Covered transmission defined.--In this
subparagraph, the term `covered transmission'
means a secondary transmission of a primary
transmission made by a network station to an
unserved household.''.
(B) by striking paragraphs (3), (6)(E), (9), (10),
and (13); and
(C) by redesignating paragraphs (4), (5), (6), (7),
(8), (11), (12), and (14) as paragraphs (3) through
(10), respectively;
(2) in subsection (c)(1)(E)--
(A) by striking the comma after ``in the agreement'';
(B) by striking ``until December 31, 2019, or''; and
(C) by striking ``, whichever is later'' and
inserting ``until the subscriber for which the royalty
is payable is no longer eligible to receive a secondary
transmission pursuant to the license under this
section'';
(3) in subsection (d)--
(A) in paragraph (10)--
(i) in subparagraph (D), by striking
``subsection (a)(11)'' and inserting
``subsection (a)(8)'';
(ii) by striking subparagraphs (A), (B), (C),
and (E);
(iii) by redesignating subparagraph (D) as
subparagraph (A); and
(iv) by adding at the end the following:
``(B) is a subscriber located in a short market.'';
(B) by striking paragraph (13);
(C) by redesignating paragraphs (14) and (15) as
paragraphs (13) and (14), respectively; and
(D) by adding at the end the following:
``(15) Local-into-local service to all dmas.--The term
`local-into-local service to all DMAs' has the meaning given
such term in subsection (f)(7).
``(16) Short market.--The term `short market' means a local
market in which programming of one or more of the four most
widely viewed television networks nationwide is not offered on
either the primary stream or multicast stream transmitted by
any network station in that market.'';
(4) by striking subsections (e) and (h); and
(5) by redesignating subsections (f) and (g) as subsections
(e) and (f).
(b) Previously Covered Subscribers Under the STELA Reauthorization
Act of 2014.--
(1) In general.--A subscriber of a satellite carrier who
receives the secondary transmission of a network station under
the statutory license in section 119 of title 17, United States
Code, as in effect on the day before the date of the enactment
of this Act, and to whom subsection (a)(2)(B) of such section,
as amended by subsection (a), does not apply, shall continue to
be eligible to receive that secondary transmission from such
carrier under such license, and at the royalty rate established
for such license by the Copyright Royalty Board or voluntary
agreement, as applicable, until the date that is the earlier
of--
(A) 180 days after the date of the enactment of this
Act; or
(B) the date on which such carrier provides local-
into-local service to all DMAs.
(2) Definitions.--In this subsection, the terms ``satellite
carrier'', ``subscriber'', ``secondary transmission'',
``network station'', and ``local-into-local service to all
DMAs'' have the meaning given those terms in section 119 of
title 17, United States Code.
(c) Conforming Amendments.--Title 17, United States Code, is further
amended--
(1) in section 119, as amended by subsection (a)--
(A) in subsection (a)--
(i) in paragraph (1), by striking
``paragraphs (4), (5), and (7)'' and inserting
``paragraphs (3), (4), and (6)''; and
(ii) in paragraph (2), by striking
``paragraphs (4), (5), (6), and (7)'' and
inserting ``paragraphs (3), (4), (5), and
(6)''; and
(B) in subsection (g), by striking ``subsection
(a)(7)(B)'' each place it appears and inserting
``subsection (a)(5)(B)''; and
(2) in section 501(e), by striking ``section 119(a)(5)'' and
inserting ``section 119(a)(3)''.
Purpose and Summary
The compulsory license in section 119 of the Copyright Act,
17 U.S.C. Sec. 119, which allows a satellite carrier to
retransmit distant broadcast signals to an ``unserved
household,'' is set to expire on December 31, 2019.\1\ When
this statutory license was created in 1988, the satellite
television industry was in its infancy. Since then, technology
has developed to allow satellite carriers to more easily
retransmit local (instead of distant) television signals into
local markets. The television industry overall has also evolved
with the proliferation of ``over-the-top'' services that
deliver television through the Internet, which, since it is
generally unregulated, shows the marketplace's ability to
facilitate the licensing of rights to retransmit television
stations, including broadcast stations. In light of these
changed circumstances, several categories of viewers falling
within the definition of ``unserved household'' are no longer
appropriately considered unserved--instead, section 119 is
being used to provide them with distant broadcast signals when
local broadcast signals are available, the technology to
retransmit them exists, and either free market-based
negotiations or a separate statutory license under 17 U.S.C.
Sec. 122 would permit their retransmission. This has the effect
of denying viewers access to local news, weather, and emergency
alerts. In contrast, other categories of viewers covered by the
definition of ``unserved household'' may still need the
statutory license provided by section 119 to ensure access to
broadcast network television. These categories include viewers
in television markets lacking one or more local broadcasters--
``short markets''--and viewers without a fixed location--those
in recreational vehicles or commercial trucks.
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\1\Satellite Television Extension and Localism Act Reauthorization
Act of 2014 Sec. Sec. 201, 202, Pub. L. No. 113-200, 128 Stat. 2059
(2014).
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In light of these competing considerations, H.R. 5140, the
``Satellite Television Community Protection and Promotion Act
of 2019,'' narrows the households eligible to receive out-of-
state programming under the license to these final two
categories of viewers and makes this reauthorization permanent.
In addition, to promote the retransmission of local broadcast
signals, the Act conditions satellite carriers' use of the new,
more narrow section 119 statutory license on providing access
to local broadcast programming nationwide where it is
available.
Background and Need for the Legislation
Most satellite television subscribers receive local
broadcast programming that is retransmitted from their local
network stations. When a satellite carrier provides such
``local service,'' subscribers have access to important local
news, local weather, and local emergency information. For some
(typically rural) subscribers, instead of seeing news, weather,
or emergency information from their own towns, they get
retransmissions of ``distant'' programming from outside of
their local market. Those subscribers see network programming
from a larger, sometimes much farther, market like New York or
Los Angeles instead.
The subscribers subject to ``distant'' programming are in
households covered by section 119 of the Copyright Act. Section
119 establishes a compulsory license that allows satellite
carriers to retransmit to ``unserved households'' broadcast
television programming from television stations located outside
of the unserved household's local market.\2\ Enacted as a
temporary provision in 1988,\3\ section 119 has required
reauthorization approximately every five years. Congress's
latest reauthorization, the Satellite Television Extension and
Localism Act Reauthorization Act (``STELAR'') of 2014, is set
to expire on December 31, 2019.\4\
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\2\17 U.S.C. Sec. 119(a)(2)(A)-(B) (2019).
\3\Satellite Home Viewer Act of 1988, Pub. L. No. 100-667, 102
Stat. 3949 (1988).
\4\Satellite Television Extension and Localism Act Reauthorization
Act of 2014, Pub. L. No. 113-200, 128 Stat. 2059 (2014).
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The section 119 license is an exception to the general
copyright principle that copyright owners control the
distribution and dissemination of their works. Under the
license, satellite carriers pay government-set royalty rates
for the distant programming, and they are relieved from needing
to negotiate licenses with individual copyright owners.\5\
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\5\The Copyright Office has administered the compulsory license
since it was established in 1988, which has included collecting
statements of account and royalties from satellite carriers and
distributing them to the appropriate rights holders. Licensing, U.S.
Copyright Office, https://www.copyright.gov/licensing/ (last visited
Dec. 3, 2019).
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Congress created the section 119 license during the
satellite industry's nascency to allow satellite television to
better compete with cable. Since then, the satellite industry
has matured with two major players, DISH Network and AT&T's
DirecTV. Technological limitations have likewise dissolved such
that ``local service''--where subscribers receive local
programming via satellite transmission--is pervasive and
technologically feasible in all 210 geographic television
markets (known as ``designated market areas''). DISH Network
provides local service in all 210 designated market areas;
DirecTV offers local service in 198.\6\
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\6\The designated market areas to which DirecTV does not provide
local service include: Alpena, MI; Bowling Green, KY; Casper-Riverton,
WY; Cheyenne, WY-Scottsbluff, NE; Glendive, MT; Grand Junction-
Montrose, CO; Helena, MT; North Platte, NE; Ottumwa, IA-Kirksville, MO;
Presque Isle, ME; San Angelo, TX; and Victoria, TX. See John Eggerton,
Senators Press AT&T/DirecTV for Small-Market, Remote Area TV Signals,
Broadcasting & Cable (Mar. 14, 2019), https://
www.broadcastingcable.com/news/senators-press-at-t-directv-for-small-
market-remote-area-tv-signals.
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Under section 119, ``unserved households'' that are
eligible for the license include households that do not receive
sufficiently strong over-the-air signals; recreational vehicles
and commercial trucks; households that receive a waiver from a
local network affiliate to receive a distant signal; and
households that are in markets where local service is available
but that have been ``grandfathered'' into eligibility.\7\
Households in seven ``short markets''--that is, markets where
one or more of the four broadcast networks is not offered
locally--also receive distant broadcast programming under the
section 119 license.\8\ DISH and AT&T estimate that
approximately 870,000 subscribers receive one or more stations
through the section 119 license.\9\ When asked by Chairman
Nadler and Ranking Member Collins in a letter last spring,
neither carrier provided a breakdown of the number of
subscribers per category, citing concerns that such information
was competitively sensitive.\10\
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\7\17 U.S.C. Sec. 119(d)(10)(B)-(E), (g)(2)(E).
\8\The seven ``short markets'' are: Alpena, MI; Glendive, MT;
Harrisonburg, VA/WV; Mankato, MN; Parkersburg, OH/WV; Presque Isle, ME;
and Zanesville, OH. See Letter from Jeffrey H. Blum, Senior Vice
President, DISH Network Corp., to Jerrold Nadler, Chairman, & Doug
Collins, Ranking Member, U.S. House of Representatives Comm. on the
Judiciary (Apr. 19, 2019).
\9\Id.; Letter from Timothy P. McKone, Exec. Vice President, AT&T
Services, Inc., to Jerrold Nadler, Chairman, & Doug Collins, Ranking
Member, U.S. House of Representatives Comm. on the Judiciary 1 (Apr.
19, 2019).
\10\Letter from Jeffrey H. Blum, supra note 8; Letter from Timothy
P. McKone, supra note 9.
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The Copyright Office has reported a decline in section 119
royalties reported by satellite carriers of between 85% and
99.5% since 2014.\11\ The television marketplace also has
transformed since section 119's last reauthorization in 2014,
including the proliferation of ``over-the-top'' services that
deliver television through the Internet, such as Hulu and
Netflix, which operate absent any statutory license.\12\ It is
the Copyright Office's view that the section 119 license should
sunset as intended and allow free-market negotiations take
place.
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\11\Letter from Karyn A. Temple, Register of Copyrights, U.S.
Copyright Office, to Jerrold Nadler, Chairman, & Doug Collins, Ranking
Member, U.S. House of Representatives Comm. on the Judiciary 2 (June 3,
2019).
\12\Id. at 3.
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Broadcasters, some rural groups, and some Members of
Congress who represent areas subject to the license have also
urged Congress not to reauthorize section 119 so that
subscribers can get satellite access to their local stations.
For example, in a letter to the House Committee on the
Judiciary and the House Committee on Energy and Commerce, Rep.
David Loebsack (D-IA), wrote:
It is apparent that the existence of the distant
signal license creates a disincentive for DIRECTV to
offer my constituents the broadcast channels from their
local DMA. . . . I'd ask that you keep in mind how this
law impacts viewers in my district, as well as viewers
in the 11 other neglected markets across the country,
from accessing important local broadcast programming
via satellite.\13\
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\13\ Letter from Dave Loebsack, Member of Congress, to Frank
Pallone, Jr., Chairman, & Greg Walden, Ranking Member, H. Comm. on
Energy & Commerce, and Jerrold Nadler, Chairman, & Doug Collins,
Ranking Member, H. Comm. on the Judiciary (May 30, 2019).
The Rural and Agriculture Council of America raised similar
localism concerns in its outreach to Congress this summer,
---------------------------------------------------------------------------
stating:
The policies of STELAR--first enacted before the rise
of even the early Internet--have been surpassed by
technological advances and now cause definite harm to
our rural communities. Rural Americans rely on local
broadcasting for critical information and news about
our local communities and, especially when we are out
in the field, up-to-the minute weather and emergency
information. This is critical local information not
only for the productivity of our lands, but also for
the safety of our livestock and families. Yet, because
of STELAR, major satellite television providers are
carrying television stations from outside these rural
areas rather than the local stations themselves.\14\
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\14\ Letter from Rural & Agriculture Council of America et al., to
Frank Pallone, Jr., Chairman, & Greg Walden, Ranking Member, H. Comm.
on Energy & Commerce, and Roger Wicker, Chairman, & Maria Cantwell,
Ranking Member, S. Comm. on Commerce, Sci., & Transp. (June 3, 2019).
H.R. 5140 accounts for the need to prioritize access to
local programming and acknowledges the vulnerabilities that
some households might face in a purely market-based system.
H.R. 5140 does so by first conditioning a satellite carrier's
use of the license on the carrier's provision of local service
in all 210 designated market areas. The bill then lets the
license expire for almost all covered households, with two
exceptions: (1) recreational vehicles and commercial trucks,
whose subscriber size may not be large enough to make free-
market negotiations worth the effort, and (2) households in
short markets that by definition do not have local alternatives
for at least one network. The license would be permanent for
these two groups.
For households no longer covered by section 119, the
narrowed license would likely mean that these viewers would get
local broadcast signals instead of imported, distant signals. A
local-signal satellite license is available to satellite
carriers under section 122 of the Copyright Act,\15\ which DISH
already uses in all 210 markets and which DirecTV uses in 198
markets.
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\15\ 17 U.S.C. Sec. 122.
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To address concerns that a year-end expiration of the
section 119 license might be disruptive in the short-term, H.R.
5140 provides a 180-day transition period during which a
satellite carrier can continue to use the license for
households no longer covered under the bill, giving the carrier
time to transition to offering local service in all designated
market areas. If a satellite carrier is unable to offer the
requisite local service within that 180-day period, but it has
acted reasonably and made good faith efforts to do so, the
carrier may temporarily use the license for covered households
for a 90-day period after filing a notice with the Copyright
Office that, among other things, outlines its efforts to
provide local service. The carrier can file for subsequent
temporary 90-day licenses by filing further notices.
Hearings
The Committee on the Judiciary held no hearings on H.R.
5140 in the 116th Congress, but received testimony on the
upcoming expiration of the section 119 license from the
Register of Copyrights, Karyn A. Temple, on June 26, 2019.
Committee Consideration
On November 20, 2019, the Committee met in open session and
ordered the bill, H.R. 5140, favorably reported as amended, by
a voice vote, a quorum being present.
Committee Votes
In compliance with clause 3(b) of rule XIII of the Rules of
the House of Representatives, the Committee advises that no
rollcall votes occurred during the Committee's consideration of
H.R. 5140.
Committee Oversight Findings
In compliance with clause 3(c)(1) of rule XIII of the Rules
of the House of Representatives, the Committee advises 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.
New Budget Authority and Tax Expenditures and Congressional Budget
Office Cost Estimate
With respect to the requirements of clause 3(c)(2) of rule
XIII of the Rules of the House of Representatives and section
308(a) of the Congressional Budget Act of 1974 and with respect
to requirements of clause (3)(c)(3) of rule XIII of the Rules
of the House of Representatives and section 402 of the
Congressional Budget Act of 1974, the Committee has requested
but not received a cost estimate for this bill from the
Director of Congressional Budget Office. The Committee has
requested but not received from the Director of the
Congressional Budget Office a statement as to whether this bill
contains any new budget authority, spending authority, credit
authority, or an increase or decrease in revenues or tax
expenditures.
Duplication of Federal Programs
No provision of H.R. 5140 establishes or reauthorizes a
program of the federal government known to be duplicative of
another federal program, a program that was included in any
report from the Government Accountability Office to Congress
pursuant to section 21 of Public Law 111-139, or a program
related to a program identified in the most recent Catalog of
Federal Domestic Assistance.
Performance Goals and Objectives
The Committee states that pursuant to clause 3(c)(4) of
rule XIII of the Rules of the House of Representatives, H.R.
5140 would modify the compulsory license in section 119 of the
Copyright Act by conditioning satellite carriers' use of the
license on providing access to local broadcast programming
nationwide and narrowing the households eligible to receive
out-of-state programming under the license.
Advisory on Earmarks
In accordance with clause 9 of rule XXI of the Rules of the
House of Representatives, H.R. 5140 does not contain any
congressional earmarks, limited tax benefits, or limited tariff
benefits as defined in clause 9(d), 9(e), or 9(f) of rule XXI.
Section-by-Section Analysis
The following discussion describes the bill as reported by
the Committee.
Sec. 1. Short Title. Section 1 sets forth the short title
of the bill as the ``Satellite Television Community Protection
and Promotion Act of 2019''.
Sec. 2. Eligibility to Receive Signals Under a Distant-
Signal Satellite License. Section 2 makes several amendments to
17 U.S.C. Sec. 119.
Section 2(a)(1)(A)(i) amends 17 U.S.C. Sec. 119(a)(2) to
condition a satellite carrier's eligibility to use the section
119 license to carry distant signals to ``unserved households''
(as subsequently redefined) on the carrier's retransmission of
local television broadcast stations (i.e., providing ``local
service'') in all 210 designated market areas. This clause
notes that a carrier's failure to reach a retransmission
consent agreement with a broadcast station does not affect the
carrier's compliance with the local service requirement if the
carrier has the technical capability to provide local service
once such an agreement is reached.
Section(a)(1)(A)(ii) removes language related to the
eligibility of households no longer covered under the bill--
namely, households that did not receive sufficiently strong
over-the-air signals and households under the C-band exemption.
This clause also clarifies that use of the license for
subscribers in short markets is limited to secondary
transmissions of only those networks that are not offered in
the local market.
Section (a)(1)(A)(iii) establishes a mechanism by which a
satellite carrier that has not implemented local service in all
designated market areas can temporarily continue to carry
distant signals to ``unserved households.'' Under this
provision, to temporarily use the license, the carrier must
demonstrate that it has acted reasonably and made good faith
efforts to provide the requisite local service and file a
Notice of Temporary Limited Use with the Copyright Office
within 180 days following the enactment of the bill. The
carrier's notice must include an affirmation that it intends to
provide distant signals under the section 119 license; a signed
statement that it has acted reasonably and made good faith
efforts to provide the requisite local service; a list of the
designated market areas to which it does not provide local
service; and a summary of the actions it has taken to provide
local service to all designated market areas. The temporary
license lasts 90 days and can be extended for additional 90-day
periods if the carrier files a new notice. An owner of a
network station that could have been retransmitted but for the
carrier's failure to provide local service may challenge the
sufficiency of the carrier's efforts in a civil action.
Section 2(a)(1)(B)-(C) strikes certain language no longer
applicable under the narrowed license--namely, language related
to subscribers previously eligible despite the availability of
local service (Sec. 119(a)(3), (13)) and language related to
signal measurements, which are no longer needed because there
are no ``unserved households'' that are defined solely in
relation to broadcast signal strength (Sec. 119(a)(9)-(10)).
Section 2(a)(2) amends 17 U.S.C. Sec. 119(c)(1)(E) to state
that voluntary agreements that were entered into under the
license are in effect under the terms of those agreements until
the subscriber is no longer eligible to receive secondary
transmissions under the bill.
Section 2(a)(3) amends the definition of ``unserved
household'' to be limited to subscribers in short markets and
RVs/commercial trucks while removing other categories that are
no longer needed. The term ``local-into-local service to all
DMAs'' is defined via a cross-reference to the same requirement
in (redesignated) subsection (f), where providing local-into-
local service was previously required for certain satellite
carriers to continue to use the section 119 license under the
Satellite Television Extension and Localism Act of 2010, Pub.
L. 111-175. The term ``short market'' is defined as a market
missing one or more local broadcast networks, where
availability of a local broadcast network is defined with
reference to the broadcast being offered on the primary stream
or multicast stream, reflecting the current practice of which
types of local broadcast stations are carried under the
statutory license for local-into-local carriage under 17 U.S.C.
Sec. 122.
Section 2(a)(4)-(5) strikes 17 U.S.C. Sec. 119(e) and 17
U.S.C. Sec. 119(h). Subsection (e) refers to households no
longer covered under the bill, while subsection (h) contains
the license's expiration date. The removal of subsection (h)
makes the modified section 119 license for RVs/commercial
trucks and households in short markets permanent.
Section 2(b)(1) establishes a 180-day transition period
during which a household that is not covered under the bill's
narrowed license remains eligible to receive retransmissions
under the distant-signal license regardless of the status of
the satellite carrier's provision of local service in all
designated market areas. The household's eligibility would
expire after those 180 days or once the satellite carrier
provides local service in all 210 designated market areas,
whichever is sooner.
Section 2(b)(2) incorporates several definitions by
reference from section 119, since section 2(b) of the bill is
uncodified.
Section 2(c) provides several conforming amendments.
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, and 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. 119. Limitations on exclusive rights: Secondary transmissions of
distant television programming by satellite
(a) Secondary Transmissions by Satellite Carriers.--
(1) Non-network stations.--Subject to the provisions
of [paragraphs (4), (5), and (7)] paragraphs (3), (4),
and (6) of this subsection and section 114(d),
secondary transmissions of a performance or display of
a work embodied in a primary transmission made by a
non-network station 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 or for viewing in a
commercial establishment, with regard to secondary
transmissions 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 subscriber 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 or for viewing in a commercial
establishment.
(2) Network stations.--
(A) In general.--Subject to the provisions of
subparagraph (B) of this paragraph and
[paragraphs (4), (5), (6), and (7)] paragraphs
(3), (4), (5), and (6) of this subsection and
section 114(d), secondary transmissions of a
performance or display of a work embodied in a
primary transmission made by a network station
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, with regard to secondary
transmissions 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] signals, the
carrier makes a direct or indirect charge for
such retransmission service to each subscriber
receiving the secondary transmission, and the
carrier provides local-into-local service to
all DMAs. Failure to reach an agreement with
network stations to retransmit their signals
shall not be construed to affect compliance
with providing local-into-local service to all
DMAs if the satellite carrier has the
capability to retransmit such signals when an
agreement is reached.
(B) Secondary transmissions to unserved
households.--
(i) In general.--The statutory
license provided for in subparagraph
(A) shall be limited to secondary
transmissions of the signals of no more
than two network stations in a single
day for each television network to
persons who reside in unserved
households.
[(ii) Accurate determinations of
eligibility.--
[(I) Accurate predictive
model.--In determining
presumptively whether a person
resides in an unserved
household under subsection
(d)(10)(A), a court shall rely
on the Individual Location
Longley-Rice model set forth by
the Federal Communications
Commission in Docket No. 98-
201, as that model may be
amended by the Commission over
time under section 339(c)(3) of
the Communications Act of 1934
to increase the accuracy of
that model.
[(II) Accurate
measurements.--For purposes of
site measurements to determine
whether a person resides in an
unserved household under
subsection (d)(10)(A), a court
shall rely on section 339(c)(4)
of the Communications Act of
1934.
[(III) Accurate predictive
model with respect to digital
signals.--Notwithstanding
subclause (I), in determining
presumptively whether a person
resides in an unserved
household under subsection
(d)(10)(A) with respect to
digital signals, a court shall
rely on a predictive model set
forth by the Federal
Communications Commission
pursuant to a rulemaking as
provided in section 339(c)(3)
of the Communications Act of
1934 (47 U.S.C. 339(c)(3)), as
that model may be amended by
the Commission over time under
such section to increase the
accuracy of that model. Until
such time as the Commission
sets forth such model, a court
shall rely on the predictive
model as recommended by the
Commission with respect to
digital signals in its Report
to Congress in ET Docket No.
05-182, FCC 05-199 (released
December 9, 2005).
[(iii) C-band exemption to unserved
households.--
[(I) In general.--The
limitations of clause (i) shall
not apply to any secondary
transmissions by C-band
services of network stations
that a subscriber to C-band
service received before any
termination of such secondary
transmissions before October
31, 1999.
[(II) Definition.--In this
clause, the term ``C-band
service'' means a service that
is licensed by the Federal
Communications Commission and
operates in the Fixed Satellite
Service under part 25 of title
47, Code of Federal
Regulations.]
(ii) Short markets.--In the case of
secondary transmissions to households
located in short markets, subject to
clause (i), the statutory license shall
be further limited to secondary
transmissions of only those primary
transmissions of network stations that
embody the programming of networks not
offered on the primary stream or the
multicast stream transmitted by any
network station in that market.
(C) Submission of subscriber lists to
networks.--
(i) Initial lists.--A satellite
carrier that makes secondary
transmissions of a primary transmission
made by a network station pursuant to
subparagraph (A) shall, not later than
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 address, including street or
rural route number, city, State, and 9-
digit zip code) all subscribers to
which the satellite carrier makes
secondary transmissions of that primary
transmission to subscribers in unserved
households.
(ii) Monthly lists.--After the
submission of the initial lists under
clause (i), the satellite carrier
shall, not later than the 15th of each
month, submit to the network a list,
aggregated by designated market area,
identifying (by name and address,
including street or rural route number,
city, State, and 9-digit zip code) any
persons who have been added or dropped
as subscribers under clause (i) since
the last submission under this
subparagraph.
(iii) Use of subscriber
information.--Subscriber information
submitted by a satellite carrier under
this subparagraph may be used only for
purposes of monitoring compliance by
the satellite carrier with this
subsection.
(iv) Applicability.--The submission
requirements of this subparagraph shall
apply to a satellite carrier only if
the network to which the submissions
are to be made places on file with the
Register of Copyrights a document
identifying the name and address of the
person to whom such submissions are to
be made. The Register shall maintain
for public inspection a file of all
such documents.
(D) Temporary and limited use of license.--
(i) In general.--Notwithstanding the
requirement under subparagraph (A) that
a satellite carrier provide local-into-
local service to all DMAs before making
a secondary transmission under the
license under this section, a satellite
carrier that does not provide local-
into-local service to all DMAs may make
a covered transmission under such
license if not later than 180 days
after the date of the enactment of the
Satellite Television Community
Protection and Promotion Act of 2019
the satellite carrier--
(I) demonstrates that it has
acted reasonably and made a
good faith effort to provide
local-into-local service to all
DMAs and that it will continue
to make a good faith effort to
provide local-into-local
service to all DMAs; and
(II) files a Notice of
Temporary Limited Use with the
Copyright Office in accordance
with clause (ii).
(ii) Notice of temporary limited
use.--A Notice of Temporary Limited Use
filed with the Copyright Office under
this subparagraph shall contain--
(I) an affirmation that the
carrier intends to make covered
transmissions under the license
under this section despite not
providing local-into-local
service to all DMAs;
(II) a signed statement that
the satellite carrier acted
reasonably and made good faith
efforts to provide local-into-
local service to all DMAs;
(III) a list of the
designated market areas with
respect to which no local-into-
local service is provided by
the satellite carrier; and
(IV) a summary of actions
taken by the satellite carrier
to make arrangements to provide
local-into-local service to all
DMAs.
(iii) Period of temporary and limited
license.--
(I) Initial 90-day period.--A
satellite carrier that meets
the requirements of this
subparagraph may use the
license under this section to
make covered transmissions for
a 90-day period beginning on
the date such carrier files a
Notice of Temporary Limited Use
with the Copyright Office.
(II) Additional periods.--The
initial 90-day period described
under clause (I) may be
extended for additional periods
of 90 days if the satellite
carrier files a new Notice of
Temporary Limited Use with the
Copyright Office on or before
the last day of such initial
period, and each successive 90-
day period thereafter.
(iv) Audit and verification of
notices.--The Register of Copyrights
shall issue regulations that are
similar in nature to the regulations
issued under subsection (b)(2) to
permit interested parties to verify and
audit Notices of Temporary Limited Use
filed by satellite carriers under this
subparagraph.
(v) Challenge.--Any owner of a
network station for which the primary
stream or multicast stream of that
network would have been transmitted by
a satellite carrier under the license
under this section but for the failure
of that satellite carrier to provide
local-into-local service to all DMAs
may bring a civil action to challenge
the sufficiency of the reasonable
actions and good faith efforts of that
satellite carrier to provide local-
into-local service to all DMAs, as such
actions and efforts are described in
the applicable Notice of Temporary
Limited Use.
(vi) Covered transmission defined.--
In this subparagraph, the term
``covered transmission'' means a
secondary transmission of a primary
transmission made by a network station
to an unserved household.
[(3) Statutory license where retransmissions into
local market available.--
[(A) Rules for subscribers to signals under
subsection (e).--
[(i) For those receiving distant
signals.--In the case of a subscriber
of a satellite carrier who is eligible
to receive the secondary transmission
of the primary transmission of a
network station solely by reason of
subsection (e) (in this subparagraph
referred to as a ``distant signal''),
and who, as of October 1, 2004, is
receiving the distant signal of that
network station, the following shall
apply:
[(I) In a case in which the
satellite carrier makes
available to the subscriber the
secondary transmission of the
primary transmission of a local
network station affiliated with
the same television network
pursuant to the statutory
license under section 122, the
statutory license under
paragraph (2) shall apply only
to secondary transmissions by
that satellite carrier to that
subscriber of the distant
signal of a station affiliated
with the same television
network--
[(aa) if, within 60
days after receiving
the notice of the
satellite carrier under
section 338(h)(1) of
the Communications Act
of 1934, the subscriber
elects to retain the
distant signal; but
[(bb) only until such
time as the subscriber
elects to receive such
local signal.
[(II) Notwithstanding
subclause (I), the statutory
license under paragraph (2)
shall not apply with respect to
any subscriber who is eligible
to receive the distant signal
of a television network station
solely by reason of subsection
(e), unless the satellite
carrier, within 60 days after
the date of the enactment of
the Satellite Home Viewer
Extension and Reauthorization
Act of 2004, submits to that
television network a list,
aggregated by designated market
area (as defined in section
122(j)(2)(C)), that--
[(aa) identifies that
subscriber by name and
address (street or
rural route number,
city, State, and zip
code) and specifies the
distant signals
received by the
subscriber; and
[(bb) states, to the
best of the satellite
carrier's knowledge and
belief, after having
made diligent and good
faith inquiries, that
the subscriber is
eligible under
subsection (e) to
receive the distant
signals.
[(ii) For those not receiving distant
signals.--In the case of any subscriber
of a satellite carrier who is eligible
to receive the distant signal of a
network station solely by reason of
subsection (e) and who did not receive
a distant signal of a station
affiliated with the same network on
October 1, 2004, the statutory license
under paragraph (2) shall not apply to
secondary transmissions by that
satellite carrier to that subscriber of
the distant signal of a station
affiliated with the same network.
[(B) Rules for lawful subscribers as of date
of enactment of 2010 act.--In the case of a
subscriber of a satellite carrier who, on the
day before the date of the enactment of the
Satellite Television Extension and Localism Act
of 2010, was lawfully receiving the secondary
transmission of the primary transmission of a
network station under the statutory license
under paragraph (2) (in this subparagraph
referred to as the ``distant signal''), other
than subscribers to whom subparagraph (A)
applies, the statutory license under paragraph
(2) shall apply to secondary transmissions by
that satellite carrier to that subscriber of
the distant signal of a station affiliated with
the same television network, and the
subscriber's household shall continue to be
considered to be an unserved household with
respect to such network, until such time as the
subscriber elects to terminate such secondary
transmissions, whether or not the subscriber
elects to subscribe to receive the secondary
transmission of the primary transmission of a
local network station affiliated with the same
network pursuant to the statutory license under
section 122.
[(C) Future applicability.--
[(i) When local signal available at
time of subscription.--The statutory
license under paragraph (2) shall not
apply to the secondary transmission by
a satellite carrier of the primary
transmission of a network station to a
person who is not a subscriber lawfully
receiving such secondary transmission
as of the date of the enactment of the
Satellite Television Extension and
Localism Act of 2010 and, at the time
such person seeks to subscribe to
receive such secondary transmission,
resides in a local market where the
satellite carrier makes available to
that person the secondary transmission
of the primary transmission of a local
network station affiliated with the
same network pursuant to the statutory
license under section 122.
[(ii) When local signal available
after subscription.--In the case of a
subscriber who lawfully subscribes to
and receives the secondary transmission
by a satellite carrier of the primary
transmission of a network station under
the statutory license under paragraph
(2) (in this clause referred to as the
``distant signal'') on or after the
date of the enactment of the Satellite
Television Extension and Localism Act
of 2010, the statutory license under
paragraph (2) shall apply to secondary
transmissions by that satellite carrier
to that subscriber of the distant
signal of a station affiliated with the
same television network, and the
subscriber's household shall continue
to be considered to be an unserved
household with respect to such network,
until such time as the subscriber
elects to terminate such secondary
transmissions, but only if such
subscriber subscribes to the secondary
transmission of the primary
transmission of a local network station
affiliated with the same network within
60 days after the satellite carrier
makes available to the subscriber such
secondary transmission of the primary
transmission of such local network
station.
[(D) Other provisions not affected.--This
paragraph shall not affect the applicability of
the statutory license to secondary
transmissions to unserved households included
under paragraph (11).
[(E) Waiver.--A subscriber who is denied the
secondary transmission of a network station
under subparagraph (B) or (C) may request a
waiver from such denial by submitting a
request, through the subscriber's satellite
carrier, to the network station in the local
market affiliated with the same network where
the subscriber is located. The network station
shall accept or reject the subscriber's request
for a waiver within 30 days after receipt of
the request. If the network station fails to
accept or reject the subscriber's request for a
waiver within that 30-day period, that network
station shall be deemed to agree to the waiver
request. Unless specifically stated by the
network station, a waiver that was granted
before the date of the enactment of the
Satellite Home Viewer Extension and
Reauthorization Act of 2004 under section
339(c)(2) of the Communications Act of 1934
shall not constitute a waiver for purposes of
this subparagraph.
[(F) Available defined.--For purposes of this
paragraph, a satellite carrier makes available
a secondary transmission of the primary
transmission of a local station to a subscriber
or person if the satellite carrier offers that
secondary transmission to other subscribers who
reside in the same 9-digit zip code as that
subscriber or person.]
[(4)] (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 non-network
station 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, 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).
[(5)] (4) Willful alterations.--Notwithstanding the
provisions of paragraphs (1) and (2), the secondary
transmission to the public by a satellite carrier of a
performance or display of a work embodied in a primary
transmission made by a non-network station or a network
station is actionable as an act of infringement under
section 501, and is fully subject to the remedies
provided by sections 502 through 506 and section 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.
[(6)] (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 is not
eligible to receive the transmission under this
section is actionable as an act of infringement
under section 501 and is fully subject to the
remedies provided by sections 502 through 506,
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 $250 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
subscribers who are not eligible to receive the
transmission under this section, 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 $2,500,000 for each 3-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
$2,500,000 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 to a
subscriber who is eligible to receive the
secondary transmission under this section.
[(E) Exception.--The secondary transmission
by a satellite carrier of a performance or
display of a work embodied in a primary
transmission made by a network station to
subscribers who do not reside in unserved
households shall not be an act of infringement
if--
[(i) the station on May 1, 1991, was
retransmitted by a satellite carrier
and was not on that date owned or
operated by or affiliated with a
television network that offered
interconnected program service on a
regular basis for 15 or more hours per
week to at least 25 affiliated
television licensees in 10 or more
States;
[(ii) as of July 1, 1998, such
station was retransmitted by a
satellite carrier under the statutory
license of this section; and
[(iii) the station is not owned or
operated by or affiliated with a
television network that, as of January
1, 1995, offered interconnected program
service on a regular basis for 15 or
more hours per week to at least 25
affiliated television licensees in 10
or more States.]
The court shall direct one half of any statutory
damages ordered under clause (i) to be deposited with
the Register of Copyrights for distribution to
copyright owners pursuant to subsection (b). The
Copyright Royalty Judges shall issue regulations
establishing procedures for distributing such funds, on
a proportional basis, to copyright owners whose works
were included in the secondary transmissions that were
the subject of the statutory damages.
[(7)] (6) 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 performance or
display of a work embodied in a primary transmission
made by a non-network station or a network station is
actionable as an act of infringement under section 501,
and is fully subject to the remedies provided by
sections 502 through 506, if the satellite carrier
unlawfully discriminates against a distributor.
[(8)] (7) 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.
[(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 and 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.]
[(11)] (8) Service to recreational vehicles and
commercial trucks.--
(A) Exemption.--
(i) In general.--For purposes of this
subsection, and subject to clauses (ii)
and (iii), the term ``unserved
household'' shall include--
(I) recreational vehicles as
defined in regulations of the
Secretary of Housing and Urban
Development under section
3282.8 of title 24, Code of
Federal Regulations; and
(II) commercial trucks that
qualify as commercial motor
vehicles under regulations of
the Secretary of Transportation
under section 383.5 of title
49, Code of Federal
Regulations.
(ii) Limitation.--Clause (i) shall
apply only to a recreational vehicle or
commercial truck if any satellite
carrier that proposes to make a
secondary transmission of a network
station to the operator of such a
recreational vehicle or commercial
truck complies with the documentation
requirements under subparagraphs (B)
and (C).
(iii) Exclusion.--For purposes of
this subparagraph, the terms
``recreational vehicle'' and
``commercial truck'' shall not include
any fixed dwelling, whether a mobile
home or otherwise.
(B) Documentation requirements.--A
recreational vehicle or commercial truck shall
be deemed to be an unserved household beginning
10 days after the relevant satellite carrier
provides to the network that owns or is
affiliated with the network station that will
be secondarily transmitted to the recreational
vehicle or commercial truck the following
documents:
(i) Declaration.--A signed
declaration by the operator of the
recreational vehicle or commercial
truck that the satellite dish is
permanently attached to the
recreational vehicle or commercial
truck, and will not be used to receive
satellite programming at any fixed
dwelling.
(ii) Registration.--In the case of a
recreational vehicle, a copy of the
current State vehicle registration for
the recreational vehicle.
(iii) Registration and license.--In
the case of a commercial truck, a copy
of--
(I) the current State vehicle
registration for the truck; and
(II) a copy of a valid,
current commercial driver's
license, as defined in
regulations of the Secretary of
Transportation under section
383 of title 49, Code of
Federal Regulations, issued to
the operator.
(C) Updated documentation requirements.--If a
satellite carrier wishes to continue to make
secondary transmissions to a recreational
vehicle or commercial truck for more than a 2-
year period, that carrier shall provide each
network, upon request, with updated
documentation in the form described under
subparagraph (B) during the 90 days before
expiration of that 2-year period.
[(12)] (9) Statutory license contingent on compliance
with fcc rules and remedial steps.--Notwithstanding any
other provision of this section, the willful or
repeated secondary transmission to the public by a
satellite carrier of a primary transmission embodying a
performance or display of a work made by a broadcast
station licensed by the Federal Communications
Commission is actionable as an act of infringement
under section 501, and is fully subject to the remedies
provided by sections 502 through 506, if, at the time
of such transmission, the satellite carrier is not in
compliance with the rules, regulations, and
authorizations of the Federal Communications Commission
concerning the carriage of television broadcast station
signals.
[(13) Waivers.--A subscriber who is denied the
secondary transmission of a signal of a network station
under subsection (a)(2)(B) may request a waiver from
such denial by submitting a request, through the
subscriber's satellite carrier, to the network station
asserting that the secondary transmission is
prohibited. The network station shall accept or reject
a subscriber's request for a waiver within 30 days
after receipt of the request. If a television network
station fails to accept or reject a subscriber's
request for a waiver within the 30-day period after
receipt of the request, that station shall be deemed to
agree to the waiver request and have filed such written
waiver. Unless specifically stated by the network
station, a waiver that was granted before the date of
the enactment of the Satellite Home Viewer Extension
and Reauthorization Act of 2004 under section 339(c)(2)
of the Communications Act of 1934, and that was in
effect on such date of enactment, shall constitute a
waiver for purposes of this paragraph.]
[(14)] (10) Restricted transmission of out-of-state
distant network signals into certain markets.--
(A) Out-of-state network affiliates.--
Notwithstanding any other provision of this
title, the statutory license in this subsection
and subsection (b) shall not apply to any
secondary transmission of the primary
transmission of a network station located
outside of the State of Alaska to any
subscriber in that State to whom the secondary
transmission of the primary transmission of a
television station located in that State is
made available by the satellite carrier
pursuant to section 122.
(B) Exception.--The limitation in
subparagraph (A) shall not apply to the
secondary transmission of the primary
transmission of a digital signal of a network
station located outside of the State of Alaska
if at the time that the secondary transmission
is made, no television station licensed to a
community in the State and affiliated with the
same network makes primary transmissions of a
digital signal.
(b) Deposit of Statements and Fees; Verification
Procedures.--
(1) Deposits with the register of copyrights.--A
satellite carrier whose secondary transmissions are
subject to statutory licensing under subsection (a)
shall, on a semiannual basis, deposit with the Register
of Copyrights, in accordance with requirements that the
Register shall prescribe by regulation--
(A) a statement of account, covering the
preceding 6-month period, specifying the names
and locations of all non-network stations and
network stations whose signals were
retransmitted, at any time during that period,
to subscribers as described in subsections
(a)(1) and (a)(2), the total number of
subscribers that received such retransmissions,
and such other data as the Register of
Copyrights may from time to time prescribe by
regulation;
(B) a royalty fee payable to copyright owners
pursuant to paragraph (4) for that 6-month
period, computed by multiplying the total
number of subscribers receiving each secondary
transmission of a primary stream or multicast
stream of each non-network station or network
station during each calendar year month by the
appropriate rate in effect under this
subsection; and
(C) a filing fee, as determined by the
Register of Copyrights pursuant to section
708(a).
(2) Verification of accounts and fee payments.--The
Register of Copyrights shall issue regulations to
permit interested parties to verify and audit the
statements of account and royalty fees submitted by
satellite carriers under this subsection.
(3) Investment of fees.--The Register of Copyrights
shall receive all fees (including the filing fee
specified in paragraph (1)(C)) deposited under this
section and, after deducting the reasonable costs
incurred by the Copyright Office under this section
(other than the costs deducted under paragraph (5)),
shall deposit the balance in the Treasury of the United
States, in such manner as the Secretary of the Treasury
directs. All funds held by the Secretary of the
Treasury shall be invested in interest-bearing
securities of the United States for later distribution
with interest by the Librarian of Congress as provided
by this title.
(4) Persons to whom fees are distributed.--The
royalty fees deposited under paragraph (3) shall, in
accordance with the procedures provided by paragraph
(5), be distributed to those copyright owners whose
works were included in a secondary transmission made by
a satellite carrier during the applicable 6-month
accounting period and who file a claim with the
Copyright Royalty Judges under paragraph (5).
(5) Procedures for distribution.--The royalty fees
deposited under paragraph (3) shall be distributed in
accordance with the following procedures:
(A) Filing of claims for fees.--During the
month of July in each year, each person
claiming to be entitled to statutory license
fees for secondary transmissions shall file a
claim with the Copyright Royalty Judges, in
accordance with requirements that the Copyright
Royalty Judges shall prescribe by regulation.
For purposes of this paragraph, any claimants
may agree among themselves as to the
proportionate division of statutory license
fees among them, may lump their claims together
and file them jointly or as a single claim, or
may designate a common agent to receive payment
on their behalf.
(B) Determination of controversy;
distributions.--After the first day of August
of each year, the Copyright Royalty Judges
shall determine whether there exists a
controversy concerning the distribution of
royalty fees. If the Copyright Royalty Judges
determine that no such controversy exists, the
Copyright Royalty Judges shall authorize the
Librarian of Congress to proceed to distribute
such fees to the copyright owners entitled to
receive them, or to their designated agents,
subject to the deduction of reasonable
administrative costs under this section. If the
Copyright Royalty Judges find the existence of
a controversy, the Copyright Royalty Judges
shall, pursuant to chapter 8 of this title,
conduct a proceeding to determine the
distribution of royalty fees.
(C) Withholding of fees during controversy.--
During the pendency of any proceeding under
this subsection, the Copyright Royalty Judges
shall have the discretion to authorize the
Librarian of Congress to proceed to distribute
any amounts that are not in controversy.
(c) Adjustment of Royalty Fees.--
(1) Applicability and determination of royalty fees
for signals.--
(A) Initial fee.--The appropriate fee for
purposes of determining the royalty fee under
subsection (b)(1)(B) for the secondary
transmission of the primary transmissions of
network stations and non-network stations shall
be the appropriate fee set forth in part 258 of
title 37, Code of Federal Regulations, as in
effect on July 1, 2009, as modified under this
paragraph.
(B) Fee set by voluntary negotiation.--On or
before June 1, 2010, the Copyright Royalty
Judges shall cause to be published in the
Federal Register of the initiation of voluntary
negotiation proceedings for the purpose of
determining the royalty fee to be paid by
satellite carriers for the secondary
transmission of the primary transmissions of
network stations and non-network stations under
subsection (b)(1)(B).
(C) Negotiations.--Satellite carriers,
distributors, and copyright owners entitled to
royalty fees under this section shall negotiate
in good faith in an effort to reach a voluntary
agreement or agreements for the payment of
royalty fees. Any such satellite carriers,
distributors and copyright owners may at any
time negotiate and agree to the royalty fee,
and may designate common agents to negotiate,
agree to, or pay such fees. If the parties fail
to identify common agents, the Copyright
Royalty Judges shall do so, after requesting
recommendations from the parties to the
negotiation proceeding. The parties to each
negotiation proceeding shall bear the cost
thereof.
(D) Agreements binding on parties; filing of
agreements; public notice.--
(i) Voluntary agreements; filing.--
Voluntary agreements negotiated at any
time in accordance with this paragraph
shall be binding upon all satellite
carriers, distributors, and copyright
owners that are parties thereto. Copies
of such agreements shall be filed with
the Copyright Office within 30 days
after execution in accordance with
regulations that the Register of
Copyrights shall prescribe.
(ii) Procedure for adoption of
fees.--
(I) Publication of notice.--
Within 10 days after
publication in the Federal
Register of a notice of the
initiation of voluntary
negotiation proceedings,
parties who have reached a
voluntary agreement may request
that the royalty fees in that
agreement be applied to all
satellite carriers,
distributors, and copyright
owners without convening a
proceeding under subparagraph
(F).
(II) Public notice of fees.--
Upon receiving a request under
subclause (I), the Copyright
Royalty Judges shall
immediately provide public
notice of the royalty fees from
the voluntary agreement and
afford parties an opportunity
to state that they object to
those fees.
(III) Adoption of fees.--The
Copyright Royalty Judges shall
adopt the royalty fees from the
voluntary agreement for all
satellite carriers,
distributors, and copyright
owners without convening the
proceeding under subparagraph
(F) unless a party with an
intent to participate in that
proceeding and a significant
interest in the outcome of that
proceeding objects under
subclause (II).
(E) Period agreement is in effect.--The
obligation to pay the royalty fees established
under a voluntary agreement which has been
filed with the Copyright Royalty Judges in
accordance with this paragraph shall become
effective on the date specified in the
agreement[,] and shall remain in effect [until
December 31, 2019, or] in accordance with the
terms of the agreement[, whichever is later]
until the subscriber for which the royalty is
payable is no longer eligible to receive a
secondary transmission pursuant to the license
under this section.
(F) Fee set by copyright royalty judges
proceeding.--
(i) Notice of initiation of the
proceeding.--On or before September 1,
2010, the Copyright Royalty Judges
shall cause notice to be published in
the Federal Register of the initiation
of a proceeding for the purpose of
determining the royalty fees to be paid
for the secondary transmission of the
primary transmissions of network
stations and non-network stations under
subsection (b)(1)(B) by satellite
carriers and distributors--
(I) in the absence of a
voluntary agreement filed in
accordance with subparagraph
(D) that establishes royalty
fees to be paid by all
satellite carriers and
distributors; or
(II) if an objection to the
fees from a voluntary agreement
submitted for adoption by the
Copyright Royalty Judges to
apply to all satellite
carriers, distributors, and
copyright owners is received
under subparagraph (D) from a
party with an intent to
participate in the proceeding
and a significant interest in
the outcome of that proceeding.
Such proceeding shall be conducted under
chapter 8.
(ii) Establishment of royalty fees.--
In determining royalty fees under this
subparagraph, the Copyright Royalty
Judges shall establish fees for the
secondary transmissions of the primary
transmissions of network stations and
non-network stations that most clearly
represent the fair market value of
secondary transmissions, except that
the Copyright Royalty Judges shall
adjust royalty fees to account for the
obligations of the parties under any
applicable voluntary agreement filed
with the Copyright Royalty Judges in
accordance with subparagraph (D). In
determining the fair market value, the
Judges shall base their decision on
economic, competitive, and programming
information presented by the parties,
including--
(I) the competitive
environment in which such
programming is distributed, the
cost of similar signals in
similar private and compulsory
license marketplaces, and any
special features and conditions
of the retransmission
marketplace;
(II) the economic impact of
such fees on copyright owners
and satellite carriers; and
(III) the impact on the
continued availability of
secondary transmissions to the
public.
(iii) Effective date for decision of
copyright royalty judges.--The
obligation to pay the royalty fees
established under a determination that
is made by the Copyright Royalty Judges
in a proceeding under this paragraph
shall be effective as of January 1,
2010.
(iv) Persons subject to royalty
fees.--The royalty fees referred to in
clause (iii) shall be binding on all
satellite carriers, distributors and
copyright owners, who are not party to
a voluntary agreement filed with the
Copyright Office under subparagraph
(D).
(2) Annual royalty fee adjustment.--Effective January
1 of each year, the royalty fee payable under
subsection (b)(1)(B) for the secondary transmission of
the primary transmissions of network stations and non-
network stations shall be adjusted by the Copyright
Royalty Judges to reflect any changes occurring in the
cost of living as determined by the most recent
Consumer Price Index (for all consumers and for all
items) published by the Secretary of Labor before
December 1 of the preceding year. Notification of the
adjusted fees shall be published in the Federal
Register at least 25 days before January 1.
(d) Definitions.--As used in this section--
(1) Distributor.--The term ``distributor'' means an
entity that 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 in accordance with the
provisions of this section.
(2) Network station.--The term ``network station''
means--
(A) a television station licensed by the
Federal Communications Commission, including
any translator station or terrestrial satellite
station that rebroadcasts all or substantially
all of the programming broadcast by a network
station, that is owned or operated by, or
affiliated with, one or more of the television
networks in the United States that offer an
interconnected program service on a regular
basis for 15 or more hours per week to at least
25 of its affiliated television licensees in 10
or more States; or
(B) a noncommercial educational broadcast
station (as defined in section 397 of the
Communications Act of 1934);
except that the term does not include the signal of the
Alaska Rural Communications Service, or any successor
entity to that service.
(3) Primary network station.--The term ``primary
network station'' means a network station that
broadcasts or rebroadcasts the basic programming
service of a particular national network.
(4) Primary transmission.--The term ``primary
transmission'' has the meaning given that term in
section 111(f) of this title.
(5) Private home viewing.--The term ``private home
viewing'' means the viewing, for private use in a
household by means of satellite reception equipment
that is operated by an individual in that household and
that serves only such household, of a secondary
transmission delivered by a satellite carrier of a
primary transmission of a television station licensed
by the Federal Communications Commission.
(6) Satellite carrier.--The term ``satellite
carrier'' means an entity that uses the facilities of a
satellite or satellite service licensed by the Federal
Communications Commission and operates in the Fixed-
Satellite Service under part 25 of title 47, Code of
Federal Regulations, or the Direct Broadcast Satellite
Service under part 100 of title 47, Code of Federal
Regulations, to establish and operate a channel of
communications for point-to-multipoint distribution of
television station signals, and that owns or leases a
capacity or service on a satellite in order to provide
such point-to-multipoint distribution, except to the
extent that such entity provides such distribution
pursuant to tariff under the Communications Act of
1934, other than for private home viewing pursuant to
this section.
(7) Secondary transmission.--The term ``secondary
transmission'' has the meaning given that term in
section 111(f) of this title.
(8) Subscriber; subscribe.--
(A) Subscriber.--The term ``subscriber''
means a person or entity that receives a
secondary transmission service from a satellite
carrier and pays a fee for the service,
directly or indirectly, to the satellite
carrier or to a distributor.
(B) Subscribe.--The term ``subscribe'' means
to elect to become a subscriber.
(9) Non-network station.--The term ``non-network
station'' means a television station, other than a
network station, licensed by the Federal Communications
Commission, that is secondarily transmitted by a
satellite carrier.
(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 an
antenna, an over-the-air signal containing the
primary stream, or, on or after the qualifying
date, the multicast stream, originating in that
household's local market and affiliated with
that network of--
[(i) if the signal originates as an
analog signal, Grade B intensity as
defined by the Federal Communications
Commission in section 73.683(a) of
title 47, Code of Federal Regulations,
as in effect on January 1, 1999; or
[(ii) if the signal originates as a
digital signal, intensity defined in
the values for the digital television
noise-limited service contour, as
defined in regulations issued by the
Federal Communications Commission
(section 73.622(e) of title 47, Code of
Federal Regulations), as such
regulations may be amended from time to
time;
[(B) is subject to a waiver that meets the
standards of subsection (a)(13), whether or not
the waiver was granted before the date of the
enactment of the Satellite Television Extension
and Localism Act of 2010;
[(C) is a subscriber to whom subsection (e)
applies;]
[(D)] (A) is a subscriber to whom [subsection
(a)(11)] subsection (a)(8) applies; or
[(E) is a subscriber to whom the exemption
under subsection (a)(2)(B)(iii) applies.]
(B) is a subscriber located in a short
market.
(11) Local market.--The term ``local market'' has the
meaning given such term under section 122(j).
(12) Commercial establishment.--The term ``commercial
establishment''--
(A) means an establishment used for
commercial purposes, such as a bar, restaurant,
private office, fitness club, oil rig, retail
store, bank or other financial institution,
supermarket, automobile or boat dealership, or
any other establishment with a common business
area; and
(B) does not include a multi-unit permanent
or temporary dwelling where private home
viewing occurs, such as a hotel, dormitory,
hospital, apartment, condominium, or prison.
[(13) Qualifying date.--The term ``qualifying date'',
for purposes of paragraph (10)(A), means--
[(A) October 1, 2010, for multicast streams
that exist on March 31, 2010; and
[(B) January 1, 2011, for all other multicast
streams.]
[(14)] (13) Multicast stream.--The term ``multicast
stream'' means a digital stream containing programming
and program-related material affiliated with a
television network, other than the primary stream.
[(15)] (14) Primary stream.--The term ``primary
stream'' means--
(A) the single digital stream of programming
as to which a television broadcast station has
the right to mandatory carriage with a
satellite carrier under the rules of the
Federal Communications Commission in effect on
July 1, 2009; or
(B) if there is no stream described in
subparagraph (A), then either--
(i) the single digital stream of
programming associated with the network
last transmitted by the station as an
analog signal; or
(ii) if there is no stream described
in clause (i), then the single digital
stream of programming affiliated with
the network that, as of July 1, 2009,
had been offered by the television
broadcast station for the longest
period of time.
(15) Local-into-local service to all dmas.--The term
``local-into-local service to all DMAs'' has the
meaning given such term in subsection (f)(7).
(16) Short market.--The term ``short market'' means a
local market in which programming of one or more of the
four most widely viewed television networks nationwide
is not offered on either the primary stream or
multicast stream transmitted by any network station in
that market.
[(e) Moratorium on Copyright Liability.--Until December 31,
2019, a subscriber who does not receive a signal of Grade A
intensity (as defined in the regulations of the Federal
Communications Commission under section 73.683(a) of title 47,
Code of Federal Regulations, as in effect on January 1, 1999,
or predicted by the Federal Communications Commission using the
Individual Location Longley-Rice methodology described by the
Federal Communications Commission in Docket No. 98-201) of a
local network television broadcast station shall remain
eligible to receive signals of network stations affiliated with
the same network, if that subscriber had satellite service of
such network signal terminated after July 11, 1998, and before
October 31, 1999, as required by this section, or received such
service on October 31, 1999.]
[(f)] (e) Expedited Consideration by Justice Department of
Voluntary Agreements to Provide Satellite Secondary
Transmissions to Local Markets.--
(1) In general.--In a case in which no satellite
carrier makes available, to subscribers located in a
local market, as defined in section 122(j)(2), the
secondary transmission into that market of a primary
transmission of one or more television broadcast
stations licensed by the Federal Communications
Commission, and two or more satellite carriers request
a business review letter in accordance with section
50.6 of title 28, Code of Federal Regulations (as in
effect on July 7, 2004), in order to assess the
legality under the antitrust laws of proposed business
conduct to make or carry out an agreement to provide
such secondary transmission into such local market, the
appropriate official of the Department of Justice shall
respond to the request no later than 90 days after the
date on which the request is received.
(2) Definition.--For purposes of this subsection, the
term ``antitrust laws''--
(A) has the meaning given that term in
subsection (a) of the first section of the
Clayton Act (15 U.S.C. 12(a)), except that such
term includes section 5 of the Federal Trade
Commission Act (15 U.S.C. 45) to the extent
such section 5 applies to unfair methods of
competition; and
(B) includes any State law similar to the
laws referred to in paragraph (1).
[(g)] (f) Certain Waivers Granted to Providers of Local-into-
local Service to All DMAs.--
(1) Injunction waiver.--A court that issued an
injunction pursuant to [subsection (a)(7)(B)]
subsection (a)(5)(B) before the date of the enactment
of this subsection shall waive such injunction if the
court recognizes the entity against which the
injunction was issued as a qualified carrier.
(2) Limited temporary waiver.--
(A) In general.--Upon a request made by a
satellite carrier, a court that issued an
injunction against such carrier under
[subsection (a)(7)(B)] subsection (a)(5)(B)
before the date of the enactment of this
subsection shall waive such injunction with
respect to the statutory license provided under
subsection (a)(2) to the extent necessary to
allow such carrier to make secondary
transmissions of primary transmissions made by
a network station to unserved households
located in short markets in which such carrier
was not providing local service pursuant to the
license under section 122 as of December 31,
2009.
(B) Expiration of temporary waiver.--A
temporary waiver of an injunction under
subparagraph (A) shall expire after the end of
the 120-day period beginning on the date such
temporary waiver is issued unless extended for
good cause by the court making the temporary
waiver.
(C) Failure to provide local-into-local
service to all dmas.--
(i) Failure to act reasonably and in
good faith.--If the court issuing a
temporary waiver under subparagraph (A)
determines that the satellite carrier
that made the request for such waiver
has failed to act reasonably or has
failed to make a good faith effort to
provide local-into-local service to all
DMAs, such failure--
(I) is actionable as an act
of infringement under section
501 and the court may in its
discretion impose the remedies
provided for in sections 502
through 506 and subsection
(a)(6)(B) of this section; and
(II) shall result in the
termination of the waiver
issued under subparagraph (A).
(ii) Failure to provide local-into-
local service.--If the court issuing a
temporary waiver under subparagraph (A)
determines that the satellite carrier
that made the request for such waiver
has failed to provide local-into-local
service to all DMAs, but determines
that the carrier acted reasonably and
in good faith, the court may in its
discretion impose financial penalties
that reflect--
(I) the degree of control the
carrier had over the
circumstances that resulted in
the failure;
(II) the quality of the
carrier's efforts to remedy the
failure; and
(III) the severity and
duration of any service
interruption.
(D) Single temporary waiver available.--An
entity may only receive one temporary waiver
under this paragraph.
(E) Short market defined.--For purposes of
this paragraph, the term ``short market'' means
a local market in which programming of one or
more of the four most widely viewed television
networks nationwide as measured on the date of
the enactment of this subsection is not offered
on the primary stream transmitted by any local
television broadcast station.
(3) Establishment of qualified carrier recognition.--
(A) Statement of eligibility.--An entity
seeking to be recognized as a qualified carrier
under this subsection shall file a statement of
eligibility with the court that imposed the
injunction. A statement of eligibility must
include--
(i) an affidavit that the entity is
providing local-into-local service to
all DMAs;
(ii) a motion for a waiver of the
injunction;
(iii) a motion that the court appoint
a special master under Rule 53 of the
Federal Rules of Civil Procedure;
(iv) an agreement by the carrier to
pay all expenses incurred by the
special master under paragraph
(4)(B)(ii); and
(v) a certification issued pursuant
to section 342(a) of Communications Act
of 1934.
(B) Grant of recognition as a qualified
carrier.--Upon receipt of a statement of
eligibility, the court shall recognize the
entity as a qualified carrier and issue the
waiver under paragraph (1). Upon motion
pursuant to subparagraph (A)(iii), the court
shall appoint a special master to conduct the
examination and provide a report to the court
as provided in paragraph (4)(B).
(C) Voluntary termination.--At any time, an
entity recognized as a qualified carrier may
file a statement of voluntary termination with
the court certifying that it no longer wishes
to be recognized as a qualified carrier. Upon
receipt of such statement, the court shall
reinstate the injunction waived under paragraph
(1).
(D) Loss of recognition prevents future
recognition.--No entity may be recognized as a
qualified carrier if such entity had previously
been recognized as a qualified carrier and
subsequently lost such recognition or
voluntarily terminated such recognition under
subparagraph (C).
(4) Qualified carrier obligations and compliance.--
(A) Continuing obligations.--
(i) In general.--An entity recognized
as a qualified carrier shall continue
to provide local-into-local service to
all DMAs.
(ii) Cooperation with compliance
examination.--An entity recognized as a
qualified carrier shall fully cooperate
with the special master appointed by
the court under paragraph (3)(B) in an
examination set forth in subparagraph
(B).
(B) Qualified carrier compliance
examination.--
(i) Examination and report.--A
special master appointed by the court
under paragraph (3)(B) shall conduct an
examination of, and file a report on,
the qualified carrier's compliance with
the royalty payment and household
eligibility requirements of the license
under this section. The report shall
address the qualified carrier's conduct
during the period beginning on the date
on which the qualified carrier is
recognized as such under paragraph
(3)(B) and ending on April 30, 2012.
(ii) Records of qualified carrier.--
Beginning on the date that is one year
after the date on which the qualified
carrier is recognized as such under
paragraph (3)(B), but not later than
December 1, 2011, the qualified carrier
shall provide the special master with
all records that the special master
considers to be directly pertinent to
the following requirements under this
section:
(I) Proper calculation and
payment of royalties under the
statutory license under this
section.
(II) Provision of service
under this license to eligible
subscribers only.
(iii) Submission of report.--The
special master shall file the report
required by clause (i) not later than
July 24, 2012, with the court referred
to in paragraph (1) that issued the
injunction, and the court shall
transmit a copy of the report to the
Register of Copyrights, the Committees
on the Judiciary and on Energy and
Commerce of the House of
Representatives, and the Committees on
the Judiciary and on Commerce, Science,
and Transportation of the Senate.
(iv) Evidence of infringement.--The
special master shall include in the
report a statement of whether the
examination by the special master
indicated that there is substantial
evidence that a copyright holder could
bring a successful action under this
section against the qualified carrier
for infringement.
(v) Subsequent examination.--If the
special master's report includes a
statement that its examination
indicated the existence of substantial
evidence that a copyright holder could
bring a successful action under this
section against the qualified carrier
for infringement, the special master
shall, not later than 6 months after
the report under clause (i) is filed,
initiate another examination of the
qualified carrier's compliance with the
royalty payment and household
eligibility requirements of the license
under this section since the last
report was filed under clause (iii).
The special master shall file a report
on the results of the examination
conducted under this clause with the
court referred to in paragraph (1) that
issued the injunction, and the court
shall transmit a copy to the Register
of Copyrights, the Committees on the
Judiciary and on Energy and Commerce of
the House of Representatives, and the
Committees on the Judiciary and on
Commerce, Science, and Transportation
of the Senate. The report shall include
a statement described in clause (iv).
(vi) Compliance.--Upon motion filed
by an aggrieved copyright owner, the
court recognizing an entity as a
qualified carrier shall terminate such
designation upon finding that the
entity has failed to cooperate with an
examination required by this
subparagraph.
(vii) Oversight.--During the period
of time that the special master is
conducting an examination under this
subparagraph, the Comptroller General
shall monitor the degree to which the
entity seeking to be recognized or
recognized as a qualified carrier under
paragraph (3) is complying with the
special master's examination. The
qualified carrier shall make available
to the Comptroller General all records
and individuals that the Comptroller
General considers necessary to meet the
Comptroller General's obligations under
this clause. The Comptroller General
shall report the results of the
monitoring required by this clause to
the Committees on the Judiciary and on
Energy and Commerce of the House of
Representatives and the Committees on
the Judiciary and on Commerce, Science,
and Transportation of the Senate at
intervals of not less than six months
during such period.
(C) Affirmation.--A qualified carrier shall
file an affidavit with the district court and
the Register of Copyrights 30 months after such
status was granted stating that, to the best of
the affiant's knowledge, it is in compliance
with the requirements for a qualified carrier.
The qualified carrier shall attach to its
affidavit copies of all reports or orders
issued by the court, the special master, and
the Comptroller General.
(D) Compliance determination.--Upon the
motion of an aggrieved television broadcast
station, the court recognizing an entity as a
qualified carrier may make a determination of
whether the entity is providing local-into-
local service to all DMAs.
(E) Pleading requirement.--In any motion
brought under subparagraph (D), the party
making such motion shall specify one or more
designated market areas (as such term is
defined in section 122(j)(2)(C)) for which the
failure to provide service is being alleged,
and, for each such designated market area,
shall plead with particularity the
circumstances of the alleged failure.
(F) Burden of proof.--In any proceeding to
make a determination under subparagraph (D),
and with respect to a designated market area
for which failure to provide service is
alleged, the entity recognized as a qualified
carrier shall have the burden of proving that
the entity provided local-into-local service
with a good quality satellite signal to at
least 90 percent of the households in such
designated market area (based on the most
recent census data released by the United
States Census Bureau) at the time and place
alleged.
(5) Failure to provide service.--
(A) Penalties.--If the court recognizing an
entity as a qualified carrier finds that such
entity has willfully failed to provide local-
into-local service to all DMAs, such finding
shall result in the loss of recognition of the
entity as a qualified carrier and the
termination of the waiver provided under
paragraph (1), and the court may, in its
discretion--
(i) treat such failure as an act of
infringement under section 501, and
subject such infringement to the
remedies provided for in sections 502
through 506 and subsection (a)(6)(B) of
this section; and
(ii) impose a fine of not less than
$250,000 and not more than $5,000,000.
(B) Exception for nonwillful violation.--If
the court determines that the failure to
provide local-into-local service to all DMAs is
nonwillful, the court may in its discretion
impose financial penalties for noncompliance
that reflect--
(i) the degree of control the entity
had over the circumstances that
resulted in the failure;
(ii) the quality of the entity's
efforts to remedy the failure and
restore service; and
(iii) the severity and duration of
any service interruption.
(6) Penalties for violations of license.--A court
that finds, under subsection (a)(6)(A), that an entity
recognized as a qualified carrier has willfully made a
secondary transmission of a primary transmission made
by a network station and embodying a performance or
display of a work to a subscriber who is not eligible
to receive the transmission under this section shall
reinstate the injunction waived under paragraph (1),
and the court may order statutory damages of not more
than $2,500,000.
(7) Local-into-local service to all dmas defined.--
For purposes of this subsection:
(A) In general.--An entity provides ``local-
into-local service to all DMAs'' if the entity
provides local service in all designated market
areas (as such term is defined in section
122(j)(2)(C)) pursuant to the license under
section 122.
(B) Household coverage.--For purposes of
subparagraph (A), an entity that makes
available local-into-local service with a good
quality satellite signal to at least 90 percent
of the households in a designated market area
based on the most recent census data released
by the United States Census Bureau shall be
considered to be providing local service to
such designated market area.
(C) Good quality satellite signal defined.--
The term ``good quality satellite signal'' has
the meaning given such term under section
342(e)(2) of Communications Act of 1934.
[(h) Termination of License.--This section shall cease to be
effective on December 31, 2019.]
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CHAPTER 5--COPYRIGHT INFRINGEMENT AND REMEDIES
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Sec. 501. Infringement of copyright
(a) Anyone who violates any of the exclusive rights of the
copyright owner as provided by sections 106 through 122 or of
the author as provided in section 106A(a), or who imports
copies or phonorecords into the United States in violation of
section 602, is an infringer of the copyright or right of the
author, as the case may be. For purposes of this chapter (other
than section 506), any reference to copyright shall be deemed
to include the rights conferred by section 106A(a). As used in
this subsection, the term ``anyone'' includes any State, any
instrumentality of a State, and any officer or employee of a
State or instrumentality of a State acting in his or her
official capacity. Any State, and any such instrumentality,
officer, or employee, shall be subject to the provisions of
this title in the same manner and to the same extent as any
nongovernmental entity.
(b) The legal or beneficial owner of an exclusive right under
a copyright is entitled, subject to the requirements of section
411, to institute an action for any infringement of that
particular right committed while he or she is the owner of it.
The court may require such owner to serve written notice of the
action with a copy of the complaint upon any person shown, by
the records of the Copyright Office or otherwise, to have or
claim an interest in the copyright, and shall require that such
notice be served upon any person whose interest is likely to be
affected by a decision in the case. The court may require the
joinder, and shall permit the intervention, of any person
having or claiming an interest in the copyright.
(c) For any secondary transmission by a cable system that
embodies a performance or a display of a work which is
actionable as an act of infringement under subsection (c) of
section 111, 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 service area of
that television station.
(d) For any secondary transmission by a cable system that is
actionable as an act of infringement pursuant to section
111(c)(3), the following shall also have standing to sue: (i)
the primary transmitter whose transmission has been altered by
the cable system; and (ii) any broadcast station within whose
local service area the secondary transmission occurs.
(e) With respect to any secondary transmission that is made
by a satellite carrier of a performance or display of a work
embodied in a primary transmission and is actionable as an act
of infringement under [section 119(a)(5)] section 119(a)(3), a
network 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 service area of that station.
(f)(1) With respect to any secondary transmission that is
made by a satellite carrier of a performance or display of a
work embodied in a primary transmission 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.
(2) A television broadcast station may file a civil action
against any satellite carrier that has refused to carry
television broadcast signals, as required under section
122(a)(2), to enforce that television broadcast station's
rights under section 338(a) of the Communications Act of 1934.
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