[DOCID: f:h3210ih.txt]

105th CONGRESS
  2d Session
                                H. R. 3210

To amend title 17, United States Code, to reform the copyright law with
  respect to satellite retransmissions of broadcast signals, and for
                            other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           February 12, 1998

  Mr. Coble introduced the following bill; which was referred to the
    Committee on the Judiciary, and in addition to the Committee on
Commerce, for a period to be subsequently determined by the Speaker, in
   each case for consideration of such provisions as fall within the
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


To amend title 17, United States Code, to reform the copyright law with
  respect to satellite retransmissions of broadcast signals, and for
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Copyright Compulsory License
Improvement Act''.

SEC. 2. SECONDARY TRANSMISSIONS BY SATELLITE CARRIERS.

    Section 119 of title 17, United States Code, is amended--
            (1) by amending the section heading to read as follows:
``Sec. 119. Limitations on exclusive rights: Secondary transmissions by
              satellite carriers'';
        and
            (2) by striking subsection (a) and inserting the following:
    ``(a) Secondary Transmissions by Satellite Carriers for Private
Home Viewing.--
            ``(1) Secondary transmissions of distant and local
        broadcast signals subject to statutory licensing.--Subject to
        the provisions of subsections (b) and (c) of this section and
        section 114(d), a secondary transmission of a primary
        transmission made by a television broadcast station licensed by
        the Federal Communications Commission or by the Public
        Broadcasting Service satellite feed and embodying a performance
        or display of a work shall be subject to statutory licensing
        under this section if--
                    ``(A) the secondary transmission is permissible
                under the rules, regulations, and authorizations of the
                Federal Communications Commission and is made by a
                satellite carrier to the public for private home
                viewing; and
                    ``(B) the carrier makes a direct or indirect charge
                for each retransmission service to each household
                receiving the secondary transmission or to a
                distributor that has contracted with the carrier for
                direct or indirect delivery of the secondary
                transmission to the public for private home viewing.
            ``(2) Submission of subscriber lists to television
        broadcast stations.--
                    ``(A) Initial lists.--A satellite carrier that
                makes secondary transmissions of a primary transmission
                of a television broadcast station pursuant to paragraph
                (1) shall, within 90 days after commencing such
                secondary transmissions, submit to that television
                broadcast station--
                            ``(i) a list identifying all subscribers
                        within the designated market area of that
                        television broadcast station to whom the
                        satellite carrier has made such secondary
                        transmissions; and
                            ``(ii) a list of all television broadcast
                        stations whose primary transmissions have been
                        transmitted by the satellite carrier to those
subscribers during that 90-day period.
                    ``(B) Subsequent lists.--After the submission of
                the lists under subparagraph (A), the satellite carrier
                shall, on the 15th day of each month, submit to each
                television broadcast station--
                            ``(i) a list, which shall be dated, that
                        identifies the name of any subscriber described
                        in subparagraph (A) who has been added or
                        dropped since the last submission under this
                        paragraph; and
                            ``(ii) a list of all television broadcast
                        stations whose primary transmissions have been
                        added or dropped by the satellite carrier since
                        the last submission under this paragraph
                    ``(C) Identifying information.--(i) Each list of
                subscribers under this paragraph shall include the name
                of each subscriber, together with the subscriber's home
                address, which shall include the street address or
                rural route as the case may be, city, county, State,
                and zip code and, if different from the subscriber's
                home address, the location of the subscriber's
                satellite receiving dish to which the secondary
                transmissions are made, identified by street address or
                rural route as the case may be, city, county, State,
                and zip code.
                    ``(ii) Each list of television broadcast stations
                under this paragraph shall include the station's call
                letters and community of license.
                    ``(iii) Subscriber information submitted under this
                paragraph may be used only for purposes of monitoring
                compliance by the satellite carrier with this section.
                    ``(iv) The requirements of this paragraph shall
                apply to a satellite carrier only if the television
                broadcast station 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.
            ``(3) Penalties for noncompliance with accounting and
        royalty requirements.--Notwithstanding the provisions of
        paragraph (1), the willful or repeated secondary transmission
        to the public by a satellite carrier of a primary transmission
        made by a television broadcast station licensed by the Federal
        Communications Commission or by the Public Broadcasting Service
        satellite feed and embodying a performance or display of a work
        is actionable as an act of infringement under section 501, and
        is fully subject to the remedies provided by sections 502
        through 506 and 509, if the satellite carrier has not deposited
        the statement of account and royalties fees required by
        subsection (b), or has failed to make the submissions to
        networks required by paragraph (2).
            ``(4) Penalties for willful alterations of programming.--
        Notwithstanding the provisions of paragraph (1), the secondary
        transmission to the public by a satellite carrier of a primary
        transmission made by a television broadcast station licensed by
        the Federal Communications Commission or by the Public
        Broadcasting Service satellite feed 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 section 502 through 506 and sections 509 and 510,
        if the content of the particular program in which the
        performance or display is embodied, or any commercial
        advertising or station announcement transmitted by the primary
        transmitter during, or immediately before or after, the
        transmission of such program, is in any way willfully altered
        by the satellite carrier through changes, deletions, or
        additions, or is combined with programming from any other
        broadcast signal.
            ``(5) Penalties for discrimination against distributor.--
        Notwithstanding the provisions of paragraph (1), the willful or
        repeated secondary transmission to the public by a satellite
        carrier of a primary transmission made by a television
        broadcast station licensed by the Federal Communications
        Commission or by the Public Broadcasting Service satellite feed
        and embodying the performance or display of a work is
        actionable as an act of infringement under section 501, and is
        fully subject to the remedies provided by sections 502 through
        506 and 509, if the satellite carrier unlawfully discriminates
        against a distributor.
            ``(6) License limited to secondary transmissions to
        households in the United States.--The statutory license created
        by this section shall apply only to secondary transmissions to
        households located in the United States.''.

SEC. 3. STATUTORY LICENSE FOR SATELLITE CARRIERS.

    Section 119 of title 17, United States Code, is amended by striking
subsection (b) and inserting the following:
    ``(b) Statutory License for Secondary Transmissions for Private
Home Viewing.--
            ``(1) Deposit of accounts and fees with 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 television broadcast stations whose
                signals were retransmitted, and listing the Public
                Broadcasting Service satellite feed, if carried, at any
                time during that period, to subscribers for private
                home viewing, the total number of subscribers that
                received such retransmissions, and other such data as
                the Register of Copyrights may from time to time
                prescribe by regulation; and
                    ``(B) a royalty fee for that 6-month period for
                each television broadcast station whose primary
                transmission was retransmitted beyond the local market
                of the station, and for the Public Broadcasting Service
                satellite feed, if carried, computed by multiplying the
                total number of subscribers receiving the secondary
                transmission, and the number of subscribers receiving a
                secondary transmission of the Public Broadcasting
                Service satellite feed, during each calendar month by
                the rate in effect for television broadcast stations on
                the day before the effective date of the Copyright
                Compulsory License Improvement Act.
            ``(2) Investment of fees.--The Register of Copyrights shall
        receive all fees 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 (4)), 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
        Copyright Royalty Adjudication Board as provided in this title.
        The Register may, four or more years after the close of any
        calendar year, close out the account for royalty payments made
        under this section for that calendar year (including payments
        made under this section as in effect before the effective date
        of the Copyright Compulsory License Improvement Act), and may
        treat any funds remaining in such account and any subsequent
        deposits that would otherwise be attributable to that calendar
        year as attributable to the calendar year in which the account
        is closed.
            ``(3) Persons to whom fees are distributed.--The royalty
        fees deposited under paragraph (2) shall, in accordance with
        the procedures provided in paragraph (4), be distributed to
        those copyright owners whose works were included in a secondary
        transmission for private home viewing made by a satellite
        carrier during the applicable 6-month accounting period and who
        file a claim with the Librarian of Congress under paragraph
        (4).
            ``(4) Procedures for distribution.--The royalty fees
        deposited under paragraph (2) 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 for private home viewing shall file a
                claim with the Copyright Royalty Adjudication Board, in
                accordance with requirements that the Board 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 Adjudication Board shall
                determine whether there exists a controversy concerning
                the distribution of royalty fees. If the Board
                determines that no such controversy exists, the Board
                shall, after deducting reasonable administrative costs
                under this paragraph, distribute such fees to the
                copyright owners entitled to receive them, or to their
                designated agents. If the Board finds the existence of
                a controversy, the Board 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 Adjudication Board
                shall withhold from distribution an amount sufficient
                to satisfy all claims with respect to which a
                controversy exists, but shall have discretion to
                proceed to distribute any amounts that are not in
                controversy.''.

SEC. 4. DEFINITIONS.

    Section 119 of title 17, United States Code, is amended by striking
subsection (d) and inserting the following:
    ``(d) Definitions.--As used in this section--
            ``(1) Designated market area.--The term `designated market
        area' has the meaning given that term in section 337(g) of the
        Communications Act of 1934.
            ``(2) Distributor.--The term `distributor' means an entity
        which contracts to distribute secondary transmissions from a
        satellite carrier and, either as a single channel or in a
        package with other programming, provides the secondary
        transmission either directly to individual subscribers for
        private home viewing or indirectly through other program
        distribution entities.
            ``(3) Local market.--The `local market' for a television
        broadcast station has the meaning given that term in section
        337(g) of the Communications Act of 1934.
            ``(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 which is operated by an
        individual in that household and which 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 or of the
        Public Broadcasting Service satellite feed.
            ``(6) Public broadcasting service satellite feed.--The term
        `Public Broadcasting Service satellite feed' means the national
        satellite feed distributed by the Public Broadcasting Service
        (other than the transmissions that may not be encrypted under
        section 705(c) of the Communications Act of 1934), consisting
        of educational and informational programming intended for
        private home viewing, to which the Public Broadcasting Service
        has obtained national terrestrial broadcast rights.
            ``(7) 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 (as in effect
        on February 1, 1998), or the Direct Broadcast Satellite Service
        under part 100 of title 47, Code of Federal Regulations (as in
        effect on February 1, 1998), 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.
            ``(8) Secondary transmission.--The term `secondary
        transmission' means the further transmitting of a primary
        transmission simultaneously with the primary transmission.
            ``(9) Subscriber.--The term `subscriber' means an
        individual who receives a secondary transmission service for
        private home viewing by means of a secondary transmission from
        a satellite carrier and pays a fee for the service, directly or
        indirectly, to the satellite carrier or to a distributor.
            ``(10) Television broadcast station.--The term `television
        broadcast station' means an over-the-air, commercial or
        noncommercial television broadcast station licensed by the
        Federal Communications Commission under subpart E of part 73 of
        title 47, Code of Federal Regulations.''.

SEC. 5. EXCLUSIVITY OF SECTION 119 OF TITLE 17, UNITED STATES CODE.

    Section 119 of title 17, United States Code, is amended by adding
at the end the following:
    ``(e) Exclusivity for This Section With Respect to Secondary
Transmissions of Television Stations by Satellite to Members of the
Public.--No provision of section 111 of this title or any other law
(other than this section) shall be construed to contain any
authorization, exemption, or license through which secondary
transmissions by satellite carriers for private home viewing of
programming contained in a primary transmission may be made without
obtaining the consent of the copyright owner.''.

SEC. 6. CONFORMING AMENDMENT.

    The table of contents for chapter 1 of title 17, United States
Code, is amended by striking the item relating to section 119 and
inserting the following:

``119. Limitations on exclusive rights: Secondary transmissions by
                            satellite carriers.''.

SEC. 7. COPYRIGHT ROYALTY ADJUDICATION BOARD.

    (a) Establishment and Functions.--Chapter 8 of title 17, United
States Code, is amended to read as follows:

           ``CHAPTER 8--COPYRIGHT ROYALTY ADJUDICATION BOARD

``Sec.
``801. Copyright Royalty Adjudication Board: establishment.
``802. Membership and qualifications of the Board.
``803. Selection of administrative copyright judges.
``804. Independence of the Board.
``805. Removal and sanction of administrative copyright judges.
``806. Functions.
``807. Factors for determining royalty fees.
``808. Institution of proceedings.
``809. Conduct of proceedings.
``810. Judicial review.
``811. Administrative matters.
``Sec. 801. Copyright Royalty Adjudication Board: establishment
    ``There is hereby established within the Copyright Office the
Copyright Royalty Adjudication Board (hereinafter referred to in this
chapter as the `Board').
``Sec. 802. Membership and qualifications of the Board
    ``(a) Membership.--The Board shall consist of one full-time chief
administrative copyright judge, and such part-time administrative
copyright judges as the Librarian of Congress, upon the recommendation
of the Register of Copyrights, finds necessary to conduct the business
of the Board in a timely manner. At no time shall the number of
authorized administrative copyright judges be less than three or more
than five.
    ``(b) Qualifications.--
            ``(1) Chief administrative copyright judge.--The chief
        administrative copyright judge shall be an attorney with 10 or
        more years of legal practice with demonstrated experience in
        administrative hearings or court trials and demonstrated
        knowledge of copyright law.
            ``(2) Other administrative copyright judges.--Each
        administrative copyright judge, other than the chief
        administrative copyright judge, shall be an individual with
        expertise in the business and economics of industries affected
        by the actions taken by the Board to carry out its functions.
    ``(c) Terms.--(1) The term of each administrative copyright judge
(including the chief administrative copyright judge) shall be 5 years,
except that, of the first administrative copyright judges appointed,
the Librarian of Congress, upon the recommendation of the Register of
Copyrights, shall appoint all but one of them to lesser terms to
establish a staggering of terms such that in any calendar year no more
than one term is due to expire.
    ``(2) The term of each administrative copyright judge (including
the chief administrative copyright judge) shall begin when the term of
the predecessor of that member ends. An individual appointed to fill
the vacancy occurring before the expiration of the term for which the
predecessor of that individual was appointed shall be appointed for the
remainder of that term. When the term of office of a member ends, the
member may continue to serve until a successor is selected.
    ``(d) Compensation.--The compensation of the administrative
copyright judges shall be governed solely by the provisions of section
5376 of title 5 and such regulations as the Librarian of Congress may
adopt that are not inconsistent with that section. The compensation of
the administrative copyright judges shall not be subject to any
regulations adopted by the Office of Personnel Management pursuant to
its authority under section 5376(b)(1) of title 5.
``Sec. 803. Selection of administrative copyright judges
    ``(a) Selection.--(1) The Librarian of Congress, upon the
recommendation of the Register of Copyrights, shall select the
administrative copyright judges (including the chief administrative
copyright judge) among individuals found qualified under section 802(b)
and free of any financial conflict of interest under section 805(a).
    ``(2) Administrative copyright judges previously selected by the
Librarian of Congress may be selected to serve additional terms. There
shall be no limit on the number of terms any individual may serve.
    ``(b) Effect of Vacancy.--If any vacancy should occur among the
administrative copyright judges, the Librarian of Congress shall act
expeditiously to fill the vacancy, but in no event shall a vacancy in
the Board impair the right of the remaining administrative copyright
judges to exercise all of the powers of the Board.
``Sec. 804. Independence of the Board
    ``(a) In General.--The Board shall have independence in reaching
its determinations concerning the adjustment of copyright royalty
rates, the distribution of copyright royalties, the acceptance or
rejection of royalty claims and rate adjustment petitions, and such
rulemaking functions as are delegated to it under this title.
    ``(b) Performance Appraisals.--Notwithstanding any other provision
of law or any regulation of the Library of Congress, no administrative
copyright judge shall receive an annual performance appraisal. To the
extent that such removal or sanction regulations as the Librarian of
Congress may adopt pursuant to section 805 requires documentation to
establish the cause of such removal or sanction, the administrative
copyright judge may receive an appraisal related specifically to the
cause of the removal or sanction.
    ``(c) Inconsistent Duties Barred.--No administrative copyright
judge may be assigned duties inconsistent with his or her duties and
responsibilities as a administrative copyright judge.
``Sec. 805. Removal and sanction of administrative copyright judges
    ``(a) Standards of Conduct.--The Librarian of Congress, upon the
recommendation of the Register of Copyrights, shall adopt regulations
regarding the standards of conduct, including financial conflict of
interest and restrictions against ex parte communications, which shall
govern the administrative copyright judges and the proceedings under
this chapter.
    ``(b) Removal or Sanction.--The Librarian of Congress, upon the
recommendation of the Register of Copyrights, may remove or sanction an
administrative copyright judge for violation of the standards of
conduct adopted under subsection (a), misconduct, neglect of duty, or
any disqualifying physical or mental disability. Any such removal or
sanction may be made only after notice and opportunity for hearing, but
the Librarian of Congress, upon the recommendation of the Register of
Copyrights, may suspend the administrative copyright judge during the
pendency of such hearing.
``Sec. 806. Functions
    ``Subject to the provisions of this chapter, the functions of the
Board shall be--
            ``(1) to make determinations concerning the adjustment of
        reasonable copyright royalty rates for--
                    ``(A) secondary transmissions to the public by a
                cable system of a primary transmission as provided in
                section 111;
                    ``(B) the making and distributing of phonorecords
                by means other than digital phonorecord delivery, as
                provided in section 115;
                    ``(C) secondary transmissions to the public by a
                satellite carrier of a primary transmission as provided
                in section 119; and
                    ``(D) each digital audio recording device imported
                into and distributed in the United States or
                manufactured and distributed into the United States as
                provided in section 1004; and
            ``(2) to make determinations as to reasonable rates and
        terms of royalty payments for--
                    ``(A) the public performance of a sound recording
                by means of a digital audio transmission as provided in
                section 114;
                    ``(B) the making and distribution of phonorecords
                by means of a digital phonorecord delivery as provided
                in section 115;
                    ``(C) the public performance of nondramatic musical
                works by means of coin-operated phonorecord players as
                provided in section 116;
                    ``(D) the use of nondramatic musical works and
                pictorial, graphic, and sculptural works by public
                broadcasting entities as provided in section 118; and
                    ``(E) secondary transmissions to the public by a
                satellite carrier of a primary transmission of a public
                telecommunications signal as provided in section 119;
            ``(3) to accept or reject royalty claims filed under
        sections 111, 119, and 1007, on the basis of timeliness or the
        failure to establish the basis for a claim;
            ``(4) to determine, in cases where controversy exists, the
        distribution of royalty fees deposited with the Register of
        Copyrights under sections 111, 119, and 1003;
            ``(5) to determine the status of a digital audio recording
        device or a digital audio interface device under sections 1002
        and 1003, as provided in section 1010; and
            ``(6) to engage in such rulemaking as is expressly provided
        in sections 111, 114, 115, 118, and 119.
``Sec. 807. Factors for determining royalty fees
    ``(a) For Cable Rates.--The rates applicable under section 111
shall be calculated solely in accordance with the following provisions:
            ``(1) The rates established by section 111(d)(1)(B) may be
        adjusted to reflect--
                    ``(A) national monetary inflation or deflation, or
                    ``(B) changes in the average rates charged cable
                subscribers for the basic service of providing
                secondary transmissions to maintain the real constant
                dollar level of the royalty fee per subscriber which
                existed as of October 19, 1976, except that--
                            ``(i) if the average rates charged cable
                        system subscribers for the basic service of
                        providing secondary transmissions are changed
                        so that the average rates exceed national
monetary inflation, no change in the rates established by section
111(d)(1)(B) shall be permitted; and
                            ``(ii) no increase in the royalty fee shall
                        be permitted based on any reduction in the
                        average number of distant signal equivalents
                        per subscriber.
        The Board may consider all factors relating to the maintenance
        of such level of payments including, as an extenuating factor,
        whether the cable industry has been restrained by subscriber
        rate regulating authorities from increasing the rates for the
        basic service of providing secondary transmissions.
            ``(2) In the event that the rules and regulations of the
        Federal Communications Commission are amended at any time after
        April 15, 1976, to permit the carriage by cable systems of
        additional television broadcasting signals beyond the local
        service area of the primary transmitters of such signals, the
        royalty rates established by section 111(d)(1)(B) may be
        adjusted to insure that the rates for the additional distant
        signal equivalents resulting from such carriage are reasonable
        in light of the changes effected by the amendment to such rules
        and regulations. In determining the reasonableness of rates
        proposed following an amendment of Federal Communications
        Commission rules and regulations, the Board shall consider,
        among other factors, the economic impact on copyright owners
        and users, except that no adjustment in royalty rates shall be
        made under this paragraph with respect to any distant signal
        equivalent or fraction thereof represented by--
                    ``(A) carriage of any signal permitted under the
                rules and regulations of the Federal Communications
                Commission in effect on April 15, 1976, or the carriage
                of a signal of the same type (that is, independent,
                network, or noncommercial educational) substituted for
                such permitted signal, or
                    ``(B) a television broadcast signal first carried
                after April 15, 1976, pursuant to an individual waiver
                of the rules and regulations of the Federal
                Communications Commission, as such rules and
                regulations were in effect on April 15, 1976.
            ``(3) In the event of any change in the rules and
        regulations of the Federal Communications Commission with
        respect to syndicated and sport program exclusivity after April
        15, 1976, the rates established by section 111(d)(1)(B) may be
        adjusted to assure that such rates are reasonable in light of
        the changes to such rules and regulations, but any such
        adjustment shall apply only to the affected television
        broadcast signals carried on those systems affected by the
        change.
            ``(4) The gross receipts limitations established by section
        111(d)(1) (C) and (D) shall be adjusted to reflect national
        monetary inflation or deflation or changes in the average rates
        charged cable system subscribers for the basic service of
        providing secondary transmissions to maintain the real constant
        dollar value of the exemption provided by such section, and the
        royalty rate specified therein shall not be subject to
        adjustment.
    ``(b) For Rates Other Than Cable or Satellite Carriers.--The rates
applicable under sections 114, 115, 116, and 118 shall be calculated to
achieve the following objectives:
            ``(1) To maximize the availability of creative works to the
        public.
            ``(2) To afford the copyright owner a fair return for his
        or her creative work and the copyright user a fair income under
        existing economic conditions.
            ``(3) To reflect the relative roles of the copyright owner
        and the copyright user in the product made available to the
        public with respect to relative creative contribution,
        technological contribution, capital investment, cost, risk, and
        contribution to the opening of new markets for creative
        expression and media for their communications.
            ``(4) To minimize any disruptive impact on the structure of
        the industries involved and on generally prevailing industry
        practices.
    ``(c) For Rates for Noncommercial Broadcasting.--The rates
applicable under section 118 shall be calculated to achieve reasonable
rates. In determining reasonable rates, the Board shall base its
decision so as to--
            ``(1) assure a fair return to copyright owners;
            ``(2) encourage the growth and development of public
        broadcasting; and
            ``(3) encourage musical and artistic creation.
    ``(d) Rates for Satellite Carriers.--The rates applicable under
section 119 shall be calculated to represent most clearly the fair
market value of secondary transmissions. In determining the fair market
value, the Board shall base its decision on economic, competitive, and
programming information presented by the parties, including--
            ``(1) the competitive environment in which such programming
        is distributed, the cost for similar signals in similar private
        and compulsory license marketplaces, and any special features
        and conditions of the retransmission marketplace;
            ``(2) the economic impact of such fees on copyright owners
        and satellite carriers; and
            ``(3) the impact on the continued availability of secondary
        transmissions to the public.
``Sec. 808. Institution of proceedings
    ``(a) Petition Required To Institute Proceedings.--With respect to
proceedings concerning the adjustment of royalty rates as provided in
sections 111, 114, 115, 116, and 119, during the calendar years or
under the circumstances specified in the schedule set forth in
subsection (c), any owner or user of a copyrighted work whose royalty
rates are to be established or adjusted by the Board may file a
petition with the Board declaring that the petitioner requests an
adjustment of the rate. The Board shall make a determination as to
whether the petitioner has a significant interest in the royalty rate
in which an adjustment is requested. If the Board determines that the
petitioner has a significant interest, the Board shall cause notice of
this determination, with the reasons therefor, to be published in the
Federal Register, together with the notice of commencement of
proceedings under this chapter. With respect to proceedings concerning
the adjustment of royalty rates under section 1004, any interested
copyright party may petition the Board as provided in that section.
    ``(b) Petition Not Required To Institute Proceedings.--With respect
to proceedings concerning the adjustment of royalty rates as provided
in section 118 and the distribution of royalties as provided in section
111, 119, and 1007, no petition is required to institute proceedings.
All proceedings concerning the adjustment of rates under section 118
shall commence as provided in section 118(c) of this title. All
proceedings concerning the distribution of royalties under section 111,
119, or 1007 shall commence as provided in such sections and in
subsection (c)(8) of this section.
    ``(c) Schedule of Proceedings.--
            ``(1) Section 111 proceedings.--In proceedings concerning
        the adjustment of royalty rates as provided in section 111, a
        petition described in subsection (a) may be filed during the
        year 2000 and in each subsequent fifth calendar year, except
        that in the event that the rules and regulations of the Federal
        Communications Commission are amended with respect to distant
        signal importation, or to syndicated and sports program
        exclusivity, any owner or user of a copyrighted work subject to
        the royalty rates established or adjusted pursuant to section
        111 may, within 12 months after such amendments take effect,
        file a petition with the Board to institute proceedings to
        insure that the rates are reasonable in light of the changes to
        such rules and regulations. Any such adjustments shall apply
        only to the affected television broadcast signals carried on
        those systems affected by the change. Any change in royalty
        rates made pursuant to this subsection may be reconsidered in
        the year 2000, and each fifth calendar year thereafter, as the
        case may be.
            ``(2) Section 114 proceedings.--In proceedings concerning
        the adjustment of royalty rates and terms as provided in
        section 114, the Board shall proceed when and as provided by
        that section.
            ``(3) Section 115 proceedings.--In proceedings concerning
        the adjustment of royalty rates and terms as provided in
        section 115, a petition described in subsection (a) may be
        filed in the year 2007 and in each subsequent tenth calendar
        year or as prescribed in section 115(c)(3).
            ``(4) Section 116 proceedings.--(A) In proceedings
        concerning the adjustment of royalty rates as provided in
        section 116, a petition described in subsection (a) may be
        filed at any time within 1 year after negotiated licenses
        authorized by section 116 are terminated or expire or are not
        replaced by subsequent agreements.
            ``(B) If a negotiated license authorized by section 116 is
        terminated or expires and is not replaced by another such
        license agreement which provides permission to use a quantity
        of musical works not substantially smaller than the quantity of
        such works performed on coin-operated phonorecord players
        during the 1-year period ending March 1, 1989, the Board, upon
        petition filed under subsection (a) within 1 year after such
        termination or expiration, shall promptly establish an interim
        royalty rate or rates for the public performance by means of a
        coin-operated phonorecord player of nondramatic musical works
        embodied in phonorecords which had been subject to the
        terminated or expired negotiated license agreement. Such rate
        or rates shall be the same as the last such rate or rates and
        shall remain in force until the conclusion of the proceedings
        to adjust the royalty rates applicable to such works, or until
        superseded by a new negotiated license agreement, as provided
        in section 116(b).
            ``(5) Section 118 proceedings.--In proceedings concerning
        the adjustment of royalty rates and terms as provided in
        section 118, the Board shall proceed when and as provided by
        that section.
            ``(6) Section 119 proceedings.--In proceedings concerning
        the adjustment of royalty rates governing secondary
        transmissions of as provided in section 119, a petition
        described in subsection (a) may be filed during the year 2001
        and in each subsequent fifth calendar year.
            ``(7) Proceedings concerning distribution of royalty
        fees.--In proceedings concerning the distribution of royalty
        fees under section 111, 119, or 1007, the Board shall, upon a
        determination that a controversy exists concerning such
        distribution, cause to be published in the Federal Register
        notice of commencement of proceedings under this chapter.
``Sec. 809. Conduct of proceedings
    ``(a) Board Proceedings.--The Board shall, for the purposes of
making its determinations in carrying out the functions set forth in
section 806, conduct proceedings subject to subchapter II of chapter 5
of title 5.
    ``(b) Procedures.--The Librarian of Congress, upon the
recommendation of the Register of Copyrights, and in consultation with
the Board, shall adopt regulations to govern the conduct of the
proceedings of the Board. The regulations shall include, but not be
limited to, provisions for--
            ``(1) public access to and inspection of the records of the
        Board pursuant to section 706;
            ``(2) the right of the public to attend the proceedings of
        the Board;
            ``(3) the procedures to apply when formal hearings are
        conducted; and
            ``(4) the procedures to apply and the basis upon which
        distribution or royalty controversies may be decided on the
        basis of written pleadings.
    ``(c) Participation of Copyright Office.--Notwithstanding any
regulations adopted under subsection (b)(3), during the conduct of
proceedings, the Register of Copyrights may file formally with the
Board the position of the Copyright Office on any matter before the
Board. Such filings shall be served on all parties to the proceeding.
The Board may accept or reject the position of the Copyright Office.
    ``(d) Majority Rule.--The Board shall act in all procedural and
substantive matters on the basis of majority rule.
    ``(e) Number of Presiding Judges.--The Board shall decide, in its
discretion, whether 1 or 3 administrative copyright judges shall
preside in a royalty distribution or rate adjustment proceeding. In no
event shall the number of presiding administrative copyright judges be
more than 3.
    ``(f) Participation of Parties.--Any copyright owner who has filed
an acceptable claim claiming entitlement to the distribution of
royalties, or any copyright owner or user who would be affected by a
royalty rate to be established or adjusted by the Board, may submit
relevant information and proposals to the Board in proceedings
applicable to the interest of the copyright owner or user.
    ``(g) Time Limits for Initial Decision.--Proceedings under section
118 operate under the time limits established in that section. For all
other proceedings, if 1 administrative copyright judge is presiding in
a proceeding, the Board shall issue its initial decision to the parties
to the proceeding and the Register of Copyrights within 6 months after
the declaration of a controversy in the proceeding. If more than 1
administrative copyright judge is presiding in a proceeding, the Board
shall issue its initial decision to the parties to the proceeding and
the Register of Copyrights within 1 year after the declaration of a
controversy in the proceeding.
    ``(h) Requirements for Initial Decisions.--The initial decision
under subsection (g) shall include a statement of findings and
conclusions and the reasons or basis therefor, on all the material
issues of fact, law, or discretion presented on the record. The initial
decision shall take into account prior decisions of the Copyright
Royalty Tribunal, prior decisions of copyright arbitration royalty
panels, and the procedural and evidentiary rulings the Librarian of
Congress made that were applicable to the proceedings of the copyright
arbitration royalty panels. Notwithstanding any provision of section
603 or 604 of title 5, neither the initial decision nor the final
decision is required to include a regulatory flexibility analysis.
    ``(i) Petitions for Reconsideration and Final Agency Action.--Any
party to the proceeding concerned or the Register of Copyrights may
petition the Board to reconsider its initial decision in the
proceeding. If there are no petitions for reconsideration, the initial
decision becomes the final decision of the Board without further
proceedings. If there are petitions for reconsideration, the Board
shall issue a final decision to the parties to the proceeding and the
Register of Copyrights which shall constitute final agency action. The
time period by which parties to the proceeding or the Register of
Copyrights may file a petition for reconsideration and the time period
by which the Board shall render its final decision shall be established
by regulation by the Board, subject to the approval of the Register of
Copyrights.
``Sec. 810. Judicial review
    ``(a) Appeals.--Within 1 week after the Board issues a final
decision under section 809, or, if there are no petitions for
reconsideration, within one week after the time the initial decision of
the Board under section 809 becomes the final decision, the Board shall
cause to be published in the Federal Register the decision of the rate
adjustment or the royalty distribution, as the case may be. Any
aggrieved party who would be bound by the final decision may appeal the
decision to the United States Court of Appeals for the Federal Circuit
within 30 days after the publication of the decision in the Federal
Register. In any appeal to which the Board is a party, the chief
administrative copyright judge shall refer the conduct of the
litigation in defense of the Board's decision to the Department of
Justice. If no appeal is brought within such 30-day period, the
decision of the Board is final, and the royalty fee or determination
with respect to the distribution of fees, as the case may be, shall
take effect as set forth in the decision. The pendency of an appeal
under this paragraph shall not relieve persons obligated to make
royalty payments under section 111, 114, 115, 116, 118, 119, or 1003
who would be affected by the determination on appeal to deposit the
statement of account and royalty fees specified in those sections.
    ``(b) Review Subject to Chapter 7 of Title 5.--The judicial review
of the Board's final decision shall be had, in accordance with chapter
7 of title 5, on the basis of the record before the Board.
``Sec. 811. Administrative matters
    ``(a) Administrative Support.--The Library of Congress, upon the
recommendation of the Register of Copyrights, shall provide the Board
with the necessary administrative services and permanent personnel
related to proceedings under this title. The Board may procure
temporary and intermittent services to the same extent as is authorized
by sections 3109 and 5376 of title 5.
    ``(b) Authority To Publish in Federal Register.--The actions of the
Board which may be published in the Federal Register by and under the
authority of the Board include--
            ``(1) actions of the Board required to be published in the
        Federal Register under this title;
            ``(2) actions of the Board required to be published in the
        Federal Register under regulations adopted by the Board upon
        the approval of the Register of Copyrights; and
            ``(3) regulations of the Board required to be published in
        the Federal Register to which the Board has been delegated the
        exclusive right to adopt.
    ``(c) Deduction of Costs From Royalty Fees.--The Register of
Copyrights may, to the extent not otherwise provided under this title,
deduct from royalty fees deposited or collected under this title the
reasonable costs incurred by the Copyright Office and the Board under
this chapter. Such deduction may be made before the fees are
distributed to any copyright claimants. In addition, all funds made
available by an appropriations Act as offsetting collections and
available for decisions under this subsection shall remain available
until expended. In ratemaking proceedings, the reasonable costs of the
Copyright Office and the Board shall be borne by the parties in such
manner and proportion as the Board shall direct.
    ``(d) Positions Required for Administration of Compulsory
Licensing.--Section 307 of the Legislative Branch Appropriations Act of
1994 shall not apply to the members of the Board, employee positions in
the Board, or employee positions in the Library of Congress that are
required to be filled in order to carry out section 111, 114, 115, 116,
118, or 119 or chapter 10.
    ``(e) Budget.--In each annual request for appropriations, the
Register of Copyrights shall identify the portion thereof intended for
the support of the Board and a statement which shall include an
assessment of the budgetary needs of the Board.
    ``(f) Annual Report.--The Board shall prepare an annual report of
its work and accomplishments during each fiscal year, which the
Register of Copyrights shall include in the annual report required
under section 701(c).''.
    (b) Conforming Amendment.--The item relating to chapter 8 in the
table of chapters for title 17, United States Code, is amended to read
as follows:

``8. Copyright Royalty Adjudication Board...................     801''.

SEC. 8. TRANSITION PROVISIONS.

    (a) Transitional Procedures.--During the period beginning on the
date of the enactment of this Act and ending on the effective date of
this Act, the Register of Copyrights shall adopt regulations to govern
proceedings under chapter 8 of title 17, United States Code, as amended
by section 7 of this Act. Such regulations shall remain in effect
unless and until the Copyright Royalty Adjudication Board, upon the
approval of the Register of Copyrights, adopts supplemental or
superseding regulations pursuant to section 809(b) of title 17, United
States Code.
    (b) Proceedings in Progress.--
            (1) Copyright arbitration royalty panel proceedings.--
        Unless the Register of Copyrights, for good cause, finds
        otherwise, proceedings in which a copyright arbitration royalty
        panel has been convened by the Librarian of Congress under
        chapter 8 of title 17, United States Code, as in effect before
        the effective date of this Act, shall continue in effect and
        shall be governed under chapter 8 of such title, and applicable
        regulations, as in effect prior to such effective date.
        Proceedings in which a copyright arbitration royalty panel has
        not been convened by the Librarian of Congress under chapter 8
        of title 17, United States Code, before the effective date of
        this Act shall be suspended and recommenced under the
        amendments made by section 7.
            (2) Continued proceedings.--For those proceedings continued
        under paragraph (1), the functions of the Librarian of Congress
        and the Register of Copyrights relating to the report of the
        copyright arbitration royalty panel under title 17, United
        States Code, as in effect before the effective date of this
        Act, may, in the Librarian's discretion, upon the
        recommendation of the Register of Copyrights, be delegated to
        the Copyright Royalty Adjudication Board, when constituted.
            (3) Appeals.--In any appeal of a decision of the Librarian
        of Congress adopting or rejecting a determination of a
        copyright arbitration royalty panel which is pending in the
        United States Court of Appeals for the District of Columbia
        Circuit on or after the effective date of this Act, if such
        case is remanded by the court, the Librarian of Congress shall
        not reconvene the copyright arbitration royalty panel which
        rendered the determination, but shall direct the Copyright
        Royalty Adjudication Board, when constituted, to conduct
        proceedings in accordance with the directions of the court.
    (c) Effectiveness of Existing Rates and Distributions.--All royalty
rates and all determinations with respect to the proportionate division
of compulsory license fees among copyright claimants, whether made by
the Copyright Royalty Tribunal, copyright arbitration royalty panels,
or by voluntary agreement, before the effective date of this Act, shall
remain in effect until modified by voluntary agreement or pursuant to
the amendments made by this Act.
    (d) Transfer of Appropriations.--All unexpended balances of
appropriations made by the Copyright Office for the support of the
copyright arbitration royalty panels, as of the effective date of this
Act, are transferred on such effective date to the support of the
Copyright Royalty Arbitration Board for the purposes for which such
appropriations were made.

SEC. 9. AMENDMENTS TO OTHER PROVISIONS OF TITLE 17, UNITED STATES CODE.

    (a) Secondary Transmissions by Cable Systems.--Section 111(d) of
title 17, United States Code, is amended--
            (1) in paragraph (2)--
                    (A) in the last sentence by striking ``Librarian of
                Congress'' and all that follows through the end of the
                sentence and inserting the following: ``Copyright
                Royalty Adjudication Board as provided in this title.
                The Register of Copyrights may, 4 or more years after
                the close of any calendar year, close out the account
                for royalty payments made for that calendar year, and
                may treat any funds remaining in such account and any
                subsequent deposits that would otherwise be
                attributable to that calendar year as attributable to
                the succeeding calendar year.'';
            (2) in paragraph (3)(A), by striking ``nonnetwork'';
            (3) in paragraph (4)--
                    (A) in subparagraph (A)--
                            (i) by striking ``Librarian of Congress''
                        the first place it appears and inserting
                        ``Copyright Royalty Adjudication Board''; and
                            (ii) by striking ``Librarian of Congress''
                        the second place it appears and inserting
                        ``Board'';
                    (B) in subparagraph (B)--
                            (i) by striking ``Librarian of Congress
                        shall, upon the recommendation of the Register
                        of Copyrights'' and inserting ``Copyright
                        Royalty Adjudication Board shall'';
                            (ii) by striking ``Librarian'' each
                        subsequent place it appears and inserting
                        ``Board''; and
                            (iii) in the last sentence by striking
                        ``convene a copyright royalty arbitration
                        panel'' and inserting ``conduct a proceeding'';
                        and
                    (C) in subparagraph (C)--
                            (i) by striking ``Librarian of Congress''
                        and inserting ``Copyright Royalty Adjudication
                        Board''; and
                            (ii) by adding at the end the following:
                        ``The action of the Board to distribute royalty
                        fees may precede the declaration of a
                        controversy if all parties to the proceeding
                        file a petition with the Board requesting such
                        distribution, except that such amount may not
                        exceed 50 percent of the amounts on hand at the
                        time of the request.''.
    (b) Scope of Exclusive Rights in Sound Recordings.--Section 114(f)
of title 17, United States Code, is amended--
            (1) in paragraph (1)--
                    (A) by amending the first sentence to read as
                follows: ``During the first week of January, 2000, the
                Copyright Royalty Adjudication Board shall cause notice
                to be published in the Federal Register of the
                initiation of voluntary negotiation proceedings for the
                purpose of determining or adjusting reasonable terms
                and rates of royalty payments for the activities
                specified in subsection (d)(2) of this section.''; and
                    (B) in the third sentence by striking ``Librarian
                of Congress'' and inserting ``Copyright Royalty
                Adjudication Board'';
            (2) by striking paragraphs (2), (3), and (4) and inserting
        the following:
            ``(2) In the absence of license agreements negotiated under
        paragraph (1), during the 60-day period beginning 6 months
        after publication of the notice specified in paragraph (1), and
        upon the filing of a petition in accordance with section
        808(a), the Copyright Royalty Adjudication Board shall,
        pursuant to chapter 8, conduct a proceeding to determine and
        publish in the Federal Register a schedule of rates and terms.
        In addition to the objectives set forth in section 807(a) in
        establishing or adjusting such rates and terms, the Board may
        consider the rates and terms for comparable types of digital
        audio transmission services and comparable circumstances under
        voluntary license agreements negotiated as provided in
        paragraph (1). The Copyright Royalty Adjudication Board, upon
        the approval of the Register of Copyrights, shall also
        establish requirements by which copyright owners may receive
        reasonable notice of the use of their sound recordings under
        this section, and under which records of such use shall be kept
        and made available by entities performing sound recordings.
            ``(3) License agreements voluntarily negotiated at any time
        between 1 or more copyright owners of sound recordings and 1 or
        more entities performing sound recordings shall be given effect
        in lieu of any determination by the Copyright Royalty
        Adjudication Board.
            ``(4) Publication of a notice of the initiation of
        voluntary negotiation proceedings as specified in paragraph (1)
        and the procedures specified in paragraph (2) shall be
        repeated, in accordance with regulations that the Copyright
        Royalty Adjudication Board, upon the approval of the Register
        of Copyrights, shall prescribe--
                    ``(A) no later than 30 days after a petition is
                filed by any copyright owners of sound recordings or
                any entities performing sound recordings affected by
                this section indicating that a new type of digital
                audio transmission service on which sound recordings
                are performed is or is about to become operational; and
                    ``(B) during the first week of January 2005 and at
                5-year intervals thereafter.''; and
            (3) in paragraph (5)(A)(i) by striking ``Librarian of
        Congress'' and inserting ``Copyright Royalty Adjudication
        Board, upon the approval of the Register of Copyrights,''.
    (c) Compulsory License for Making and Distributing Phonorecords.--
Section 115(c)(3) of title 17, United States Code, is amended--
            (1) in subparagraph (C)--
                    (A) by amending the first sentence to read as
                follows: ``At the times established in subparagraph
                (F), the Copyright Royalty Adjudication Board shall
                cause notice to be published in the Federal Register of
                the initiation of voluntary negotiation proceedings for
                the purpose of determining reasonable terms and rates
                of royalty payments for the activities specified in
                subparagraph (A) until the effective date of any new
                terms and rates established pursuant to this
                subparagraph or subparagraph (D) or (F), or such other
                date (regarding digital phonorecord deliveries) as the
                parties may agree.'';
                    (B) in the third sentence by striking ``Librarian
                of Congress'' and inserting ``Copyright Royalty
                Adjudication Board'';
            (2) by amending subparagraph (D) to read as follows:
            ``(D) In the absence of license agreements negotiated under
        subparagraphs (B) and (C), upon the filing of a petition in
        accordance with section 808(a), the Copyright Royalty
        Adjudication Board shall, pursuant to chapter 8, conduct a
        proceeding to determine and publish in the Federal Register a
        schedule of rates and terms. Such rates and terms shall
        distinguish between--
                    ``(i) digital phonorecord deliveries where the
                reproduction or distribution of a phonorecord is
                incidental to the transmission which constitute the
                digital phonorecord delivery, and
                    ``(ii) digital phonorecord deliveries in general.
         In addition to the objectives set forth in section 807(a), in
        establishing or adjusting rates and terms, the Board may
        consider rates and terms under voluntary license agreements
        negotiated as provided in subparagraphs (B) and (C). The Board,
        upon the approval of the Register of Copyrights, shall also
        establish requirements by which copyright owners may receive
        reasonable notice of the use of their works under this section,
        and under which records of such use shall be kept and made
        available by persons making digital phonorecord deliveries.'';
            (3) in subparagraph (E)(i) in the first sentence by
        striking ``Librarian of Congress'' and inserting ``Copyright
        Royalty Adjudication Board''; and
            (4) in subparagraph (F) by striking ``Librarian of
        Congress'' and inserting `` Copyright Royalty Adjudication
        Board, upon the approval of the Register of Copyrights,''.
    (d) Negotiated Licenses for Public Performances by Means of Coin-
Operated Phonorecord Players.--Section 116 of title 17, United States
Code, is amended--
            (1) by amending subsection (b)(2) to read as follows:
            ``(2) Rate adjustment proceeding.--Parties not subject to
        such a negotiation may determine, by a rate adjustment
        proceeding in accordance with the provisions of chapter 8, the
        terms and rates and the division of fees described in paragraph
        (1).''; and
                    (2) in subsection (c)--
                            (A) in the subsection heading by striking
                        ``Copyright Royalty Arbitration Panel'' and
                        inserting ``Copyright Royalty Adjudication
                        Board''; and
                    (B) by striking ``a copyright arbitration royalty
                panel'' and inserting ``the Copyright Royalty
                Adjudication Board''.
    (e) Use of Certain Works in Connection With Noncommercial
Broadcasting.--Section 118 of title 17, United States Code, is
amended--
            (1) in subsection (b)--
                    (A) by striking paragraph (1) and redesignating
                paragraphs (2) and (3) as paragraphs (1) and (2),
                respectively;
                    (B) in paragraph (1), as so redesignated, by
                striking ``Librarian of Congress'' and inserting
                ``Copyright Royalty Adjudication Board'';
                    (C) in paragraph (2), as so redesignated--
                            (i) by striking ``paragraph (2)'' each
                        place it appears and inserting ``paragraph
                        (1)'';
                            (ii) by striking ``Librarian of Congress''
                        the first place it appears and inserting
                        ``Copyright Royalty Adjudication Board'';
                            (iii) by striking ``Librarian of Congress''
                        the second and third places it appears and
                        inserting ``Board''; and
                            (iv) by striking ``Librarian of Congress''
                        the last place it appears and inserting
                        ``Board, upon the approval of the Register of
                        Copyrights,'';
            (2) in subsection (c)--
                    (A) by striking ``1997'' and inserting ``2002'';
                and
                    (B) by striking ``Librarian of Congress'' and
                inserting ``Copyright Royalty Adjudication Board, upon
                the approval of the Register of Copyrights,'';
            (3) in subsection (d)--
                    (A) by striking ``(b)(2)'' and inserting
                ``(b)(1)''; and
                    (B) by striking ``a copyright arbitration royalty
                panel under subsection (b)(3)'' and inserting ``the
                Copyright Royalty Adjudication Board under subsection
                (b)(2)''; and
            (4) in subsection (e), by striking paragraphs (1) and (2).
    (f) Digital Audio Recording Devices and Media.--
            (1) Royalty payments.--Section 1004(a)(3) of title 17,
        United States Code, is amended in the third sentence--
                    (A) by striking ``the 6th year after the effective
                date of this chapter'' and inserting ``1998'';
                    (B) by striking ``Librarian of Congress'' the first
                place it appears and inserting ``Copyright Royalty
                Adjudication Board''; and
                    (C) by striking ``Librarian of Congress'' the
                second place it appears and inserting ``Board''.
            (2) Entitlement to royalty payments.--Section 1006(c) of
        title 17, United States Code, is amended by striking
        ``Librarian of Congress shall convene a copyright arbitration
        royalty panel which'' and inserting ``Copyright Royalty
        Adjudication Board''.
            (3) Procedures for distributing royalty payments.--Section
        1007 of title 17, United States Code, is amended--
                    (A) in subsection (a)(1)--
                            (i) by striking ``after the calendar year
                        in which this chapter takes effect'';
                            (ii) by striking ``Librarian of Congress''
                        the first place it appears and inserting
                        ``Copyright Royalty Adjudication Board''; and
                            (iii) by striking ``Librarian of Congress''
                        the second place it appears and inserting
                        ``Board'';
                    (B) in subsection (b)--
                            (i) by amending the first sentence to read
                        as follows: ``After the first day of March of
                        each year, the Copyright Royalty Adjudication
                        Board shall determine whether there exists a
                        controversy concerning the distribution of
                        royalty payments under section 1006(c).''; and
                            (ii) by striking ``Librarian of Congress''
                        each place it appears and inserting ``Board'';
                        and
                    (C) in subsection (c)--
                            (A) by amending the first sentence to read
                        as follows: ``If the Copyright Royalty
                        Adjudication Board finds the existence of a
                        controversy, the Board shall, pursuant to
                        chapter 8 of this title, conduct a proceeding
                        to determine the distribution of royalty
                        payments.'';
                            (B) by striking ``Librarian of Congress''
                        each place it appears and inserting ``Board'';
                        and
                            (C) by striking ``Librarian under this
                        section'' and inserting ``Board under this
                        section. The action of the Board to distribute
                        royalty fees may precede the declaration of a
                        controversy if all parties to the proceeding
                        file a petition with the Board requesting such
                        distribution, except that such amount may not
                        exceed 50 percent of the amounts on hand at the
                        time of the request.''.
                    (4) Adjudication of certain disputes.--Section 1010
                of title 17, United States Code, is amended--
                            (A) by amending the section heading to read
                        as follows:
``Sec. 1010. Adjudication of certain disputes'';
                            (B) in subsection (a)--
                                    (i) in the subsection heading by
                                striking ``Arbitration'' and inserting
                                ``Adjudication''; and
                                    (ii) by striking ``mutually agree
                                to binding arbitration for the purpose
                                of determining'' and inserting
                                ``petition the Copyright Royalty
                                Adjudication Board to determine'';
                            (C) by striking subsection (b) and
                        redesignating subsections (c) and (d) as
                        subsections (b) and (c), respectively;
                            (D) in subsection (b), as so redesignated,
                        by striking ``arbitration'' each place it
                        appears and inserting ``adjudication'';
                            (E) by amending subsection (c), as so
                        redesignated, to read as follows:
    ``(c) Adjudication Proceeding.--The Copyright Royalty Adjudication
Board shall conduct an adjudication proceeding with respect to the
matter concerned, pursuant to chapter 8 of this title. The parties to
the proceeding shall bear the entire costs thereof in such manner and
proportion as the Board shall direct.''; and
                            (F) by striking subsections (e), (f), and
                        (g).

SEC. 10. TECHNICAL AMENDMENTS.

    (a) Clerical Amendment to Chapter 10 of Title 17, United States
Code.--The item relating to section 1010 in the table of contents for
chapter 10 of title 17, United States Code, is amended to read as
follows:

``1010. Adjudication of certain disputes.''.
    (b) Clerical Amendment to Chapter 9 of Title 17, United States
Code.--The item relating to section 903 in the table of contents for
chapter 9 of title 17, United States Code, is amended to read as
follows:

``903. Ownership, transfer, licensing, and recordation.''.
    (c) Clerical Amendment to Table of Chapters.--The item relating to
chapter 6 in the table of chapters for title 17, United States Code, is
amended to read as follows:

``6. Manufacturing Requirements and Importation.............     601''.

SEC. 11. RETRANSMISSION CONSENT.

    Section 325(b) of the Communications Act of 1934 (47 U.S.C. 325(b))
is amended--
            (1) by striking paragraphs (1) and (2) and inserting the
        following:
    ``(b)(1) No cable system or other multichannel video programming
distributor shall retransmit the signal of a broadcasting station, or
any part thereof, except--
            ``(A) with the express authority of the station;
            ``(B) pursuant to section 614, in the case of a station
        electing, in accordance with this subsection, to assert the
        right to carriage under such section; or
            ``(C) pursuant to section 337, in the case of a station
        electing, in accordance with this subsection, to assert the
        right to carriage under such section.
    ``(2) The provisions of this subsection shall not apply to--
            ``(A) retransmission of the signal of a noncommercial
        broadcasting station;
            ``(B) retransmission of the signal of a superstation by a
        satellite carrier to subscribers for private home viewing if
        the originating station was a superstation on January 1, 1998;
            ``(C) retransmission of the signal of a broadcasting
        station that is owned or operated by, or affiliated with, a
        broadcasting network directly to a home satellite antenna, if
        the household receiving the signal is located in an area in
        which such station may not assert its rights not to have its
        signal duplicated under the Commission's network nonduplication
        regulations; or
            ``(D) retransmission by a cable operator or other
        multichannel video programming distributor of the signal of a
        superstation if such signal was obtained from a satellite
        carrier and the originating station was a superstation on
        January 1, 1998.'';
            (2) by adding at the end of paragraph (3) the following new
        subparagraph:
    ``(C) Within 45 days after the effective date of the Copyright
Compulsory License Improvement Act, the Commission shall commence a
rulemaking proceeding to revise the regulations governing the exercise
by television broadcast stations of the right to grant retransmission
consent under this subsection, and such other regulations as are
necessary to administer the limitation contained in paragraph (2). Such
regulations shall establish election time periods that correspond with
those regulations adopted under subparagraph (B). The rulemaking shall
be completed within 180 days after the effective date of the Copyright
Compulsory License Improvement Act.''; and
            (3) by adding at the end the following new paragraph:
    ``(7) For purposes of this subsection:
            ``(A) The term `superstation' means a television broadcast
        station, other than a network station, licensed by the
        Commission that is secondarily transmitted by a satellite
        carrier.
            ``(B) The term `satellite carrier' has the meaning given
        that term in section 119(d) of title 17, United States Code.''.

SEC. 12. MUST-CARRY FOR SATELLITE CARRIERS RETRANSMITTING TELEVISION
              BROADCAST SIGNALS.

    Title III of the Communications Act of 1934 is amended by inserting
after section 336 the following new section:

``SEC. 337. CARRIAGE OF LOCAL TELEVISION SIGNALS BY SATELLITE CARRIERS.

    ``(a) Carriage Obligations.--Each satellite carrier providing
direct to home service of a television broadcast station to subscribers
located within the local market of such station shall carry all
television broadcast stations located within that local market.
Carriage of additional television broadcast stations within the local
market shall be at the discretion of the satellite carrier, subject to
section 325(b).
    ``(b) Duplication Not Required.--Notwithstanding subsection (a), a
satellite carrier shall not be required to carry the signal of any
local television broadcast station that substantially duplicates the
signal of another local television broadcast station which is
secondarily transmitted by the satellite carrier, or to carry the
signals of more that one local television broadcast station affiliated
with a particular broadcast network (as the term is defined by
regulation).
    ``(c) Channel Positioning.--Each signal carried in fulfillment of
the carriage obligations of a satellite carrier under this section
shall be carried on the satellite carrier channel number on which the
local television broadcast station is broadcast over the air, or on the
channel on which it was broadcast on January 1, 1985, or on the channel
it was broadcast on January 1, 1998, at the election of the station, or
on such other channel number as is mutually agreed upon by the station
and the satellite carrier. Any dispute regarding the positioning of
local television broadcast stations shall be resolved by the
Commission.
    ``(d) Compensation for Carriage.--A satellite carrier shall not
accept or request monetary payment or other valuable consideration in
exchange either for carriage of local television broadcast stations in
fulfillment of the requirements of this section or for channel
positioning rights provided to such stations under this section, except
that any such station may be required to bear the costs associated with
delivering a good quality signal to the principal headend of the
satellite carrier.
    ``(e) Remedies.--
            ``(1) Complaints by broadcast stations.--Whenever a local
        television broadcast station believes that a satellite carrier
        has failed to meet its obligations under this section, such
        station shall notify the carrier, in writing, of the alleged
        failure and identify its reasons for believing that the
        satellite carrier is obligated to carry the signal of such
        station or has otherwise failed to comply with the channel
        positioning or repositioning or other requirements of this
        section. The satellite carrier shall, within 30 days of such
written notification, respond in writing to such notification and
either commence to carry the signal of such station in accordance with
the terms requested or state its reasons for believing that it is not
obligated to carry such signal or is in compliance with the channel
positioning and repositioning or other requirements of this section. A
local television broadcast station that is denied carriage or channel
positioning or repositioning in accordance with this section by a
satellite carrier may obtain review of such denial by filing a
complaint with the Commission. Such complaint shall allege the manner
in which such satellite carrier has failed to meet its obligations and
the basis for such allegations.
            ``(2) Opportunity to respond.--The Commission shall afford
        such satellite carrier and opportunity to present data and
        arguments to establish that there has been no failure to meet
        its obligations under this section.
            ``(3) Remedial Actions; Dismissal.--Within 120 days after
        the date a complaint is filed, the Commission shall determine
        whether the satellite carrier has met its obligations under
        this section. If the Commission determines that the satellite
        carrier has failed to meet such obligations, the Commission
        shall order the satellite carrier to reposition the complaining
        station or, in the case of an obligation to carry a station, to
        commence carriage of the station and to continue such carriage
        for at least 12 months. If the Commission determines that the
        satellite carrier has fully met the requirements of this
        section, it shall dismiss the complaint.
    ``(f) Regulations by Commission.--Within 180 days after the
effective date of this section, the Commission shall, following a
rulemaking proceeding, issue regulations implementing the requirements
imposed by this section.
    ``(g) Definitions.--As used in this section:
            ``(1) Television broadcast station.--The term `television
        broadcast station' means a full-power television broadcast
        station, and does not include a low-power or translator
        television broadcast station.
            ``(2) Local market.--The term `local market' means the
        designated market area in which a station is located and--
                    ``(A) for a commercial television broadcast station
                located in any of the 150 largest designated market
                areas, all commercial television broadcast stations
                licensed to a community within the same designated
                market area are within the same local market;
                    ``(B) for a commercial television broadcast station
                that is located in a designated market area that is not
                one of the 150 largest, the local market includes, in
                addition to all commercial television broadcast
                stations licensed to a community within the same
                designated market area, any station that is
                significantly viewed, as such term is defined in
                section 76.54 of the Commission's regulations (47
                C.F.R. 76.54); and
                    ``(C) for a noncommercial educational television
                broadcast station, the local market includes any
                station that is licensed to a community within the same
                designated market area as the noncommercial educational
                television broadcast station.
            ``(3) Designated market area.--The term `designated market
        area' means a designated market area, as determined by the
        Nielsen Media Research and published in the DMA Market and
        Demographic Report.''.

SEC. 13. NETWORK NONDUPLICATION; SYNDICATED EXCLUSIVITY AND SPORTS
              BLACKOUT.

    (a) Regulations.--
            (1) In general.--Within 45 days after the effective date of
        this Act, the Federal Communications Commission shall commence
        a rulemaking to establish regulations that apply network
        nonduplication protection, syndicated exclusivity protection,
        and sports blackout protection to the retransmission of
        broadcast signals by satellite carriers to subscribers for
        private home viewing. To the extent possible, such regulations
        shall, subject to paragraph (2), include the same level of
        protection accorded retransmissions of television broadcast
        signals by cable systems for network nonduplication (47 C.F.R.
        76.92), syndicated exclusivity (47 C.F.R. 151), and sports
        blackout (47 C.F.R. 76.67).
            (2) Network nonduplication.--The network nonduplication
        regulations required under paragraph (1) shall allow a
        television broadcast station in any local market to assert
        nonduplication rights--
                    (A) against a satellite carrier throughout such
                local market if that satellite carrier retransmits to
                subscribers for private home viewing in such local
                market the signal of another television broadcast
                station located within such local market; or
                    (B) against all satellite carriers within the zone
                in which the television broadcast station may be
                received over-the-air, using conventional consumer
                television receiving equipment, as determined under
                regulations prescribed by the Federal Communications
                Commission, but such zone shall not extend beyond such
                local market of such station.
            (3) Local market defined.--The term ``local market'' has
        the meaning provided in section 337(g) of the Communications
        Act of 1934, as added by section 12 of this Act.
    (b) Deferred Applicability of Amendments to Section 119 of Title
17, United States Code.--Notwithstanding the amendments to section 119
of title 17, United States Code, made by this Act, until the
regulations regarding network nonduplication protection are established
under subsection (a), the statutory license under subsection (a) of
such section 119 for secondary transmissions of primary transmissions
of programming contained in a primary transmission made by a network
station (as defined in section 119(d) of title 17, United States Code,
as in effect on the day before the effective date of this Act) shall be
limited to secondary transmissions to persons who reside in unserved
households (as defined in section 119(d) of title 17, United States
Code, as in effect on the day before the effective date of this Act).

SEC. 14. EFFECTIVE DATE.

    This Act and the amendments made by this Act shall take effect on
January 1, 1999.
                                 <all>
