[DOCID: f:s1720rs.txt]

                                                       Calendar No. 670

105th CONGRESS

  2d Session

                                S. 1720

_______________________________________________________________________

                                 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.

_______________________________________________________________________

            October 1 (legislative day, September 29), 1998

                       Reported with an amendment

                                                       Calendar No. 670
105th CONGRESS
  2d Session
                                S. 1720

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 SENATE OF THE UNITED STATES

                             March 5, 1998

    Mr. Hatch (for himself, Mr. Leahy, Mr. Kohl, and Mr. Jeffords),
introduced the following bill; which was read twice and referred to the
                       Committee on the Judiciary

            October 1 (legislative day, September 29), 1998

                Reported by Mr. Hatch, with an amendment
 [Strike out all after the enacting clause and insert the part printed
                               in italic]

_______________________________________________________________________

                                 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,

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Copyright Compulsory
License Improvement Act''.</DELETED>

<DELETED>SEC. 2. SECONDARY TRANSMISSIONS BY SATELLITE
              CARRIERS.</DELETED>

<DELETED>    Section 119 of title 17, United States Code, is amended--
</DELETED>
        <DELETED>    (1) by amending the section heading to read as
        follows:</DELETED>
<DELETED>``Sec. 119. Limitations on exclusive rights: Secondary
              transmissions by satellite carriers'';</DELETED>
        <DELETED>and</DELETED>
        <DELETED>    (2) by striking subsection (a) and inserting the
        following:</DELETED>
<DELETED>    ``(a) Secondary Transmissions by Satellite Carriers for
Private Home Viewing.--</DELETED>
        <DELETED>    ``(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--</DELETED>
                <DELETED>    ``(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</DELETED>
                <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(2) Submission of subscriber lists to television
        broadcast stations.--</DELETED>
                <DELETED>    ``(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--</DELETED>
                        <DELETED>    ``(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</DELETED>
                        <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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--</DELETED>
                        <DELETED>    ``(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</DELETED>
                        <DELETED>    ``(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</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(ii) Each list of television broadcast
                stations under this paragraph shall include the
                station's call letters and community of
                license.</DELETED>
                <DELETED>    ``(iii) Subscriber information submitted
                under this paragraph may be used only for purposes of
                monitoring compliance by the satellite carrier with
                this section.</DELETED>
        <DELETED>    ``(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).</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.''.</DELETED>

<DELETED>SEC. 3. STATUTORY LICENSE FOR SATELLITE CARRIERS.</DELETED>

<DELETED>    Section 119 of title 17, United States Code, is amended by
striking subsection (b) and inserting the following:</DELETED>
<DELETED>    ``(b) Statutory License for Secondary Transmissions for
Private Home Viewing.--</DELETED>
        <DELETED>    ``(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--</DELETED>
                <DELETED>    ``(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</DELETED>
                <DELETED>    ``(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 as determined under chapter 8 of
                this title and section 8(c) of the Copyright Compulsory
                License Improvement Act.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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 Board under paragraph
        (4).</DELETED>
        <DELETED>    ``(4) Procedures for distribution.--The royalty
        fees deposited under paragraph (2) shall be distributed in
        accordance with the following procedures:</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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. 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.''.</DELETED>

<DELETED>SEC. 4. DEFINITIONS.</DELETED>

<DELETED>    Section 119 of title 17, United States Code, is amended by
striking subsection (d) and inserting the following:</DELETED>
<DELETED>    ``(d) Definitions.--As used in this section--</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(4) Primary transmission.--The term `primary
        transmission' has the meaning given that term in section 111(f)
        of this title.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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 holds national terrestrial broadcast
        rights.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(8) Secondary transmission.--The term `secondary
        transmission' means the further transmitting of a primary
        transmission simultaneously with the primary
        transmission.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.''.</DELETED>

<DELETED>SEC. 5. EXCLUSIVITY OF SECTION 119 OF TITLE 17, UNITED STATES
              CODE.</DELETED>

<DELETED>    Section 119 of title 17, United States Code, is amended by
adding at the end the following:</DELETED>
<DELETED>    ``(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.''.</DELETED>

<DELETED>SEC. 6. CONFORMING AMENDMENT.</DELETED>

<DELETED>    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:</DELETED>

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

<DELETED>SEC. 7. COPYRIGHT ROYALTY ADJUDICATION BOARD.</DELETED>

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

  <DELETED>``CHAPTER 8--COPYRIGHT ROYALTY ADJUDICATION BOARD</DELETED>

<DELETED>``Sec.
<DELETED>``801. Copyright Royalty Adjudication Board: establishment.
<DELETED>``802. Membership and qualifications of the Board.
<DELETED>``803. Selection of administrative copyright judges.
<DELETED>``804. Independence of the Board.
<DELETED>``805. Removal and sanction of administrative copyright
                            judges.
<DELETED>``806. Functions.
<DELETED>``807. Factors for determining royalty fees.
<DELETED>``808. Institution of proceedings.
<DELETED>``809. Conduct of proceedings.
<DELETED>``810. Judicial review.
<DELETED>``811. Administrative matters.
<DELETED>``812. Rule of construction.
<DELETED>``Sec. 801. Copyright Royalty Adjudication Board:
              establishment</DELETED>
<DELETED>    ``There is hereby established within the Copyright Office
the Copyright Royalty Adjudication Board (hereinafter referred to in
this chapter as the `Board').</DELETED>
<DELETED>``Sec. 802. Membership and qualifications of the
              Board</DELETED>
<DELETED>    ``(a) Membership.--</DELETED>
        <DELETED>    ``(1) In general.--The Board shall consist of 1
        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 3 or
        more than 5.</DELETED>
        <DELETED>    ``(2) Part-time administrative copyright judges.--
        Chapter 34 of title 5 shall not apply to a part-time
        administrative copyright judge. For purposes of this subsection
        the Librarian of Congress shall promulgate regulations relating
        to part-time employment of administrative copyright
        judges.</DELETED>
<DELETED>    ``(b) Qualifications.--</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>``Sec. 803. Selection of administrative copyright
              judges</DELETED>
<DELETED>    ``(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)
who meet the financial conflict of interest under section 805(a).
Notwithstanding any other provision of law and at the discretion of the
Librarian, the Librarian shall determine the method of selecting the
members.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(b) Effect of Vacancy.--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.</DELETED>
<DELETED>``Sec. 804. Independence of the Board</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>``Sec. 805. Removal and sanction of administrative copyright
              judges</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>``Sec. 806. Functions</DELETED>
<DELETED>    ``Subject to the provisions of this chapter, the functions
of the Board shall be--</DELETED>
        <DELETED>    ``(1) to make determinations concerning the
        adjustment of reasonable copyright royalty rates for--
        </DELETED>
                <DELETED>    ``(A) secondary transmissions to the
                public by a cable system of a primary transmission as
                provided in section 111;</DELETED>
                <DELETED>    ``(B) the making and distributing of
                phonorecords by means other than digital phonorecord
                delivery, as provided in section 115;</DELETED>
                <DELETED>    ``(C) secondary transmissions to the
                public by a satellite carrier of a primary transmission
                made by a television broadcast station and the Public
                Broadcasting Service satellite feed as provided in
                section 119; and</DELETED>
                <DELETED>    ``(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;</DELETED>
        <DELETED>    ``(2) to make determinations as to reasonable
        rates and terms of royalty payments for--</DELETED>
                <DELETED>    ``(A) the public performance of a sound
                recording by means of a digital audio transmission as
                provided in section 114;</DELETED>
                <DELETED>    ``(B) the making and distribution of
                phonorecords by means of a digital phonorecord delivery
                as provided in section 115;</DELETED>
                <DELETED>    ``(C) the public performance of
                nondramatic musical works by means of coin-operated
                phonorecord players as provided in section 116;
                and</DELETED>
                <DELETED>    ``(D) the use of nondramatic musical works
                and pictorial, graphic, and sculptural works by public
                broadcasting entities as provided in section
                118;</DELETED>
        <DELETED>    ``(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;</DELETED>
        <DELETED>    ``(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;</DELETED>
        <DELETED>    ``(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</DELETED>
        <DELETED>    ``(6) to engage in such rulemaking as is expressly
        provided in sections 111, 114, 115, 118, and 119.</DELETED>
<DELETED>``Sec. 807. Factors for determining royalty fees</DELETED>
<DELETED>    ``(a) For Cable Rates.--The rates applicable under section
111 shall be calculated solely in accordance with the following
provisions:</DELETED>
        <DELETED>    ``(1) The rates established by section
        111(d)(1)(B) may be adjusted to reflect--</DELETED>
                <DELETED>    ``(A) national monetary inflation or
                deflation, or</DELETED>
                <DELETED>    ``(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--</DELETED>
                        <DELETED>    ``(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</DELETED>
                        <DELETED>    ``(ii) no increase in the royalty
                        fee shall be permitted based on any reduction
                        in the average number of distant signal
                        equivalents per subscriber.</DELETED>
        <DELETED>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.</DELETED>
        <DELETED>    ``(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--</DELETED>
                <DELETED>    ``(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</DELETED>
                <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(b) For Rates Other Than Cable or Satellite Carriers.--
The rates applicable under sections 114, 115, and 116 shall be
calculated to achieve the following objectives:</DELETED>
        <DELETED>    ``(1) To maximize the availability of creative
        works to the public.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(4) To minimize any disruptive impact on the
        structure of the industries involved and on generally
        prevailing industry practices.</DELETED>
<DELETED>    ``(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--</DELETED>
        <DELETED>    ``(1) assure a fair return to copyright
        owners;</DELETED>
        <DELETED>    ``(2) encourage the growth and development of
        public broadcasting; and</DELETED>
        <DELETED>    ``(3) encourage musical and artistic
        creation.</DELETED>
<DELETED>    ``(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--</DELETED>
        <DELETED>    ``(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;</DELETED>
        <DELETED>    ``(2) the economic impact of such fees on
        copyright owners and satellite carriers; and</DELETED>
        <DELETED>    ``(3) the impact on the continued availability of
        secondary transmissions to the public.</DELETED>
<DELETED>``Sec. 808. Institution of proceedings</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(c) Schedule of Proceedings.--</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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).</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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).</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>``Sec. 809. Conduct of proceedings</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(b) Procedures.--Subject to the approval of the Register
of Copyrights, 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--</DELETED>
        <DELETED>    ``(1) public access to and inspection of the
        records of the Board pursuant to section 706;</DELETED>
        <DELETED>    ``(2) the right of the public to attend the
        proceedings of the Board;</DELETED>
        <DELETED>    ``(3) the procedures to apply when formal hearings
        are conducted; and</DELETED>
        <DELETED>    ``(4) the procedures to apply and the basis upon
        which distribution or royalty controversies may be decided on
        the basis of written pleadings.</DELETED>
<DELETED>    ``(c) Participation of Copyright Office.--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.</DELETED>
<DELETED>    ``(d) Majority Rule.--The Board shall act in all
procedural and substantive matters on the basis of majority
rule.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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, as adopted or modified by the Librarian of Congress, 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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>``Sec. 810. Judicial review</DELETED>
<DELETED>    ``(a) Appeals.--Within 1 week after the Board issues a
final decision under section 809, or, if there are no petitions for
reconsideration, within 1 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 which shall have the authority to represent the Board under
section 516 of title 28. 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 subsection shall not relieve persons who would be
affected by the determinations on appeal under section 111, 114, 115,
116, 118, 119, or 1003, of the obligation to deposit the statement of
account or to pay royalty fees specified in those sections.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>``Sec. 811. Administrative matters</DELETED>
<DELETED>    ``(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 personnel
related to proceedings under this title.</DELETED>
<DELETED>    ``(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--</DELETED>
        <DELETED>    ``(1) actions of the Board required to be
        published in the Federal Register under this title;</DELETED>
        <DELETED>    ``(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</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(c) Collection and Use of Fees.--</DELETED>
        <DELETED>    ``(1) Deduction of costs from fees.--The Librarian
        of Congress and the Register of Copyrights may, to the extent
        not otherwise provided under this title, deduct from the
        royalty fees deposited or fees collected under this title the
        reasonable costs incurred by the Library of Congress and the
        Copyright Office under this chapter. Such deduction may be made
        before the fees are distributed to any copyright
        owner.</DELETED>
        <DELETED>    ``(2) Collection of fees.--The Register of
        Copyrights may impose and collect fees in advance to carry out
        the ratemaking proceedings. All fees received under this
        section shall be deposited by the Register of Copyrights in the
        Treasury of the United States and shall be credited to the
        appropriations for necessary expenses of the Copyright Office.
        Such fees that are collected shall remain available until
        expended. The Register may refund any sum paid by mistake or in
        excess of the fee required under this section.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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).</DELETED>
<DELETED>``Sec. 812. Rule of construction</DELETED>
<DELETED>    ``Nothing in this chapter shall be construed to affect the
authority of the Register of Copyrights to establish regulations under
sections 701 and 702.''.</DELETED>
<DELETED>    (b) Technical and Conforming Amendments.--</DELETED>
        <DELETED>    (1) Table of chapters.--The item relating to
        chapter 8 in the table of chapters for title 17, United States
        Code, is amended to read as follows:</DELETED>

<DELETED>``8. Copyright Royalty Adjudication Board..........     801''.
        <DELETED>    (2) Jurisdiction of federal circuit.--Section
        1295(a) of title 28, United States Code, is amended--</DELETED>
                <DELETED>    (A) in paragraph (13) by striking ``and''
                after the semicolon;</DELETED>
                <DELETED>    (B) in paragraph (14) by striking the
                period and inserting a semicolon and ``and '';
                and</DELETED>
                <DELETED>    (C) by adding at the end the following new
                paragraph:</DELETED>
        <DELETED>    ``(15) of an appeal from a final decision of the
        Copyright Royalty Adjudication Board under sections 809(i) and
        810 of title 17.''.</DELETED>

<DELETED>SEC. 8. TRANSITION PROVISIONS.</DELETED>

<DELETED>    (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.</DELETED>
<DELETED>    (b) Proceedings in Progress.--</DELETED>
        <DELETED>    (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, and 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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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. If
        the case is remanded by the court after the enactment date of
        this Act but before the effective date of this Act, the
        Librarian of Congress shall have the discretion to reconvene
        the copyright arbitration royalty panel which rendered the
        determination, or direct the Copyright Royalty Adjudication
        Board when constituted, to conduct proceedings in accordance
        with the directions of the court.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (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 except that, in the event that any copyright
arbitration royalty panels continue to operate after the effective date
of this Act, the Register of Copyrights shall retain such portions of
the unexpended balances of appropriations as are necessary to support
the continuing copyright arbitration royalty panels.</DELETED>

<DELETED>SEC. 9. AMENDMENTS TO OTHER PROVISIONS OF TITLE 17, UNITED
              STATES CODE.</DELETED>

<DELETED>    (a) Secondary Transmissions by Cable Systems.--Section
111(d) of title 17, United States Code, is amended--</DELETED>
        <DELETED>    (1) in paragraph (2) 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 the such account and any subsequent deposits
        that would otherwise be attributable to that calendar year as
        attributable to the succeeding calendar year.''; and</DELETED>
        <DELETED>    (2) in paragraph (4)--</DELETED>
                <DELETED>    (A) in subparagraph (A)--</DELETED>
                        <DELETED>    (i) by striking ``Librarian of
                        Congress'' the first place it appears and
                        inserting ``Copyright Royalty Adjudication
                        Board''; and</DELETED>
                        <DELETED>    (ii) by striking ``Librarian of
                        Congress'' the second place it appears and
                        inserting ``Board'';</DELETED>
                <DELETED>    (B) in subparagraph (B)--</DELETED>
                        <DELETED>    (i) by striking ``Librarian of
                        Congress shall, upon the recommendation of the
                        Register of Copyrights'' and inserting
                        ``Copyright Royalty Adjudication Board
                        shall'';</DELETED>
                        <DELETED>    (ii) by striking ``Librarian''
                        each subsequent place it appears and inserting
                        ``Board''; and</DELETED>
                        <DELETED>    (iii) in the last sentence by
                        striking ``convene a copyright royalty
                        arbitration panel'' and inserting ``conduct a
                        proceeding''; and</DELETED>
                <DELETED>    (C) in subparagraph (C)--</DELETED>
                        <DELETED>    (i) by striking ``Librarian of
                        Congress'' and inserting ``Copyright Royalty
                        Adjudication Board''; and</DELETED>
                        <DELETED>    (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.''.</DELETED>
<DELETED>    (b) Scope of Exclusive Rights in Sound Recordings.--
Section 114(f) of title 17, United States Code, is amended--</DELETED>
        <DELETED>    (1) in paragraph (1)--</DELETED>
                <DELETED>    (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</DELETED>
                <DELETED>    (B) in the third sentence by striking
                ``Librarian of Congress'' and inserting ``Copyright
                Royalty Adjudication Board'';</DELETED>
        <DELETED>    (2) by striking paragraphs (2), (3), and (4) and
        inserting the following:</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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--</DELETED>
                <DELETED>    ``(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</DELETED>
                <DELETED>    ``(B) during the first week of January
                2005 and at 5-year intervals thereafter.'';
                and</DELETED>
        <DELETED>    (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,''.</DELETED>
<DELETED>    (c) Compulsory License for Making and Distributing
Phonorecords.--Section 115(c)(3) of title 17, United States Code, is
amended--</DELETED>
        <DELETED>    (1) in subparagraph (C)--</DELETED>
                <DELETED>    (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.'';</DELETED>
                <DELETED>    (B) in the third sentence by striking
                ``Librarian of Congress'' and inserting ``Copyright
                Royalty Adjudication Board'';</DELETED>
        <DELETED>    (2) by amending subparagraph (D) to read as
        follows:</DELETED>
        <DELETED>    ``(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--</DELETED>
                <DELETED>    ``(i) digital phonorecord deliveries where
                the reproduction or distribution of a phonorecord is
                incidental to the transmission which constitute the
                digital phonorecord delivery, and</DELETED>
                <DELETED>    ``(ii) digital phonorecord deliveries in
                general.</DELETED>
<DELETED>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.'';</DELETED>
        <DELETED>    (3) in subparagraph (E)(i) in the first sentence
        by striking ``Librarian of Congress'' and inserting ``Copyright
        Royalty Adjudication Board''; and</DELETED>
        <DELETED>    (4) in subparagraph (F) by striking ``Librarian of
        Congress'' and inserting `` Copyright Royalty Adjudication
        Board, upon the approval of the Register of
        Copyrights,''.</DELETED>
<DELETED>    (d) Negotiated Licenses for Public Performances by Means
of Coin-Operated Phonorecord Players.--Section 116 of title 17, United
States Code, is amended--</DELETED>
        <DELETED>    (1) by amending subsection (b)(2) to read as
        follows:</DELETED>
        <DELETED>    ``(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</DELETED>
                <DELETED>    (2) in subsection (c)--</DELETED>
                        <DELETED>    (A) in the subsection heading by
                        striking ``Copyright Royalty Arbitration
                        Panel'' and inserting ``Copyright Royalty
                        Adjudication Board''; and</DELETED>
                <DELETED>    (B) by striking ``a copyright arbitration
                royalty panel and inserting ``the Copyright Royalty
                Adjudication Board''.</DELETED>
<DELETED>    (e) Use of Certain Works in Connection With Noncommercial
Broadcasting.--Section 118 of title 17, United States Code, is
amended--</DELETED>
        <DELETED>    (1) in subsection (b)--</DELETED>
                <DELETED>    (A) by striking paragraph (1) and
                redesignating paragraphs (2) and (3) as paragraphs (1)
                and (2), respectively;</DELETED>
                <DELETED>    (B) in paragraph (1), as so redesignated,
                by striking ``Librarian of Congress'' and inserting
                ``Copyright Royalty Adjudication Board'';</DELETED>
                <DELETED>    (C) in paragraph (2), as so redesignated--
                </DELETED>
                        <DELETED>    (i) by striking ``paragraph (2)''
                        each place it appears and inserting ``paragraph
                        (1)'';</DELETED>
                        <DELETED>    (ii) by striking ``Librarian of
                        Congress'' the first place it appears and
                        inserting ``Copyright Royalty Adjudication
                        Board'';</DELETED>
                        <DELETED>    (iii) by striking ``Librarian of
                        Congress'' the second and third places it
                        appears and inserting ``Board''; and</DELETED>
                        <DELETED>    (iv) by striking ``Librarian of
                        Congress'' the last place it appears and
                        inserting ``Board, upon the approval of the
                        Register of Copyrights,'';</DELETED>
        <DELETED>    (2) in subsection (c)--</DELETED>
                <DELETED>    (A) by striking ``1997'' and inserting
                ``2002''; and</DELETED>
                <DELETED>    (B) by striking ``Librarian of Congress''
                and inserting ``Copyright Royalty Adjudication Board,
                upon the approval of the Register of
                Copyrights,'';</DELETED>
        <DELETED>    (3) in subsection (d)--</DELETED>
                <DELETED>    (A) by striking ``(b)(2)'' and inserting
                ``(b)(1)''; and</DELETED>
                <DELETED>    (B) by striking ``a copyright arbitration
                royalty panel under subsection (b)(3)'' and inserting
                ``the Copyright Royalty Adjudication Board under
                subsection (b)(2)''; and</DELETED>
        <DELETED>    (4) in subsection (e), by striking paragraphs (1)
        and (2).</DELETED>
<DELETED>    (f) Digital Audio Recording Devices and Media.--</DELETED>
        <DELETED>    (1) Royalty payments.--Section 1004(a)(3) of title
        17, United States Code, is amended in the third sentence--
        </DELETED>
                <DELETED>    (A) by striking ``the 6th year after the
                effective date of this chapter'' and inserting
                ``1998'';</DELETED>
                <DELETED>    (B) by striking ``Librarian of Congress''
                the first place it appears and inserting ``Copyright
                Royalty Adjudication Board''; and</DELETED>
                <DELETED>    (C) by striking ``Librarian of Congress''
                the second place it appears and inserting
                ``Board''.</DELETED>
        <DELETED>    (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''.</DELETED>
        <DELETED>    (3) Procedures for distributing royalty
        payments.--Section 1007 of title 17, United States Code, is
        amended--</DELETED>
                <DELETED>    (A) in subsection (a)(1)--</DELETED>
                        <DELETED>    (i) by striking ``after the
                        calendar year in which this chapter takes
                        effect'';</DELETED>
                        <DELETED>    (ii) by striking ``Librarian of
                        Congress'' the first place it appears and
                        inserting ``Copyright Royalty Adjudication
                        Board''; and</DELETED>
                        <DELETED>    (iii) by striking ``Librarian of
                        Congress'' the second place it appears and
                        inserting ``Board'';</DELETED>
                <DELETED>    (B) in subsection (b)--</DELETED>
                        <DELETED>    (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</DELETED>
                        <DELETED>    (ii) by striking ``Librarian of
                        Congress'' each place it appears and inserting
                        ``Board''; and</DELETED>
                <DELETED>    (C) in subsection (c)--</DELETED>
                        <DELETED>    (i) 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.'';</DELETED>
                        <DELETED>    (ii) by striking ``Librarian of
                        Congress'' each place it appears and inserting
                        ``Board''; and</DELETED>
                        <DELETED>    (iii) 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.''.</DELETED>
                <DELETED>    (4) Adjudication of certain disputes.--
                Section 1010 of title 17, United States Code, is
                amended--</DELETED>
                        <DELETED>    (A) by amending the section
                        heading to read as follows:</DELETED>
<DELETED>``Sec. 1010. Adjudication of certain disputes'';</DELETED>
                        <DELETED>    (B) in subsection (a)--</DELETED>
                                <DELETED>    (i) in the subsection
                                heading by striking ``Arbitration'' and
                                inserting ``Adjudication'';
                                and</DELETED>
                                <DELETED>    (ii) by striking
                                ``mutually agree to binding arbitration
                                for the purpose of determining'' and
                                inserting ``petition the Copyright
                                Royalty Adjudication Board to
                                determine'';</DELETED>
                        <DELETED>    (C) by striking subsection (b) and
                        redesignating subsections (c) and (d) as
                        subsections (b) and (c),
                        respectively;</DELETED>
                        <DELETED>    (D) in subsection (b), as so
                        redesignated, by striking ``arbitration'' each
                        place it appears and inserting
                        ``adjudication'';</DELETED>
                        <DELETED>    (E) by amending subsection (c), as
                        so redesignated, to read as follows:</DELETED>
<DELETED>    ``(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</DELETED>
                        <DELETED>    (F) by striking subsections (e),
                        (f), and (g).</DELETED>

<DELETED>SEC. 10. TECHNICAL AMENDMENTS.</DELETED>

<DELETED>    (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:</DELETED>

<DELETED>``1010. Adjudication of certain disputes.''.
<DELETED>    (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:</DELETED>

<DELETED>``903. Ownership, transfer, licensing, and recordation.''.
<DELETED>    (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:</DELETED>

<DELETED>``6. Manufacturing Requirements and Importation....     601''.

<DELETED>SEC. 11. RETRANSMISSION CONSENT.</DELETED>

<DELETED>    Section 325(b) of the Communications Act of 1934 (47
U.S.C. 325(b)) is amended--</DELETED>
        <DELETED>    (1) by striking paragraphs (1) and (2) and
        inserting the following:</DELETED>
<DELETED>    ``(b)(1) No cable system or other multichannel video
programming distributor shall retransmit the signal of a broadcasting
station, or any part thereof, except--</DELETED>
        <DELETED>    ``(A) with the express authority of the
        station;</DELETED>
        <DELETED>    ``(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</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(2) The provisions of this subsection shall not apply
to--</DELETED>
        <DELETED>    ``(A) retransmission of the signal of a
        noncommercial broadcasting station;</DELETED>
        <DELETED>    ``(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;</DELETED>
        <DELETED>    ``(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</DELETED>
        <DELETED>    ``(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.'';</DELETED>
        <DELETED>    (2) by adding at the end of paragraph (3) the
        following new subparagraph:</DELETED>
<DELETED>    ``(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</DELETED>
        <DELETED>    (3) by adding at the end the following new
        paragraph:</DELETED>
<DELETED>    ``(7) For purposes of this subsection:</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(B) The term `satellite carrier' has the meaning
        given that term in section 119(d) of title 17, United States
        Code.''.</DELETED>

<DELETED>SEC. 12. MUST-CARRY FOR SATELLITE CARRIERS RETRANSMITTING
              TELEVISION BROADCAST SIGNALS.</DELETED>

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

<DELETED>``SEC. 337. CARRIAGE OF LOCAL TELEVISION SIGNALS BY SATELLITE
              CARRIERS.</DELETED>

<DELETED>    ``(a) Carriage Obligations.--Each satellite carrier
providing direct to home service of a network station to subscribers
located within the local market of such station shall offer to carry
all television broadcast stations located within that local market,
subject to section 325(b). Carriage of additional television broadcast
stations within the local market shall be at the discretion of the
satellite carrier, subject to section 325(b).</DELETED>
<DELETED>    ``(b) Duplication Not Required.--Notwithstanding
subsection (a), a satellite carrier shall not be required to offer 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 offer 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).</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(e) Remedies.--</DELETED>
        <DELETED>    ``(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 offer 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.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(g) Definitions.--As used in this section:</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(2) Local market.--The term `local market' means
        the designated market area in which a station is located and--
        </DELETED>
                <DELETED>    ``(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;</DELETED>
                <DELETED>    ``(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</DELETED>
                <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.''.</DELETED>

<DELETED>SEC. 13. NETWORK NONDUPLICATION; SYNDICATED EXCLUSIVITY AND
              SPORTS BLACKOUT.</DELETED>

<DELETED>    (a) Regulations.--</DELETED>
        <DELETED>    (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).</DELETED>
        <DELETED>    (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--</DELETED>
                <DELETED>    (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</DELETED>
                <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (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).</DELETED>

<DELETED>SEC. 14. EFFECTIVE DATE.</DELETED>

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

SECTION 1. SHORT TITLE.

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

SEC. 2. LIMITATIONS ON EXCLUSIVE RIGHTS; SECONDARY TRANSMISSIONS BY
              SATELLITE CARRIERS WITHIN LOCAL MARKETS.

    (a) In General.--Chapter 1 of title 17, United States Code, is
amended by adding after section 121 the following new section:
``Sec. 122. Limitations on exclusive rights; secondary transmissions by
              satellite carriers within local markets
    ``(a) Secondary Transmissions of Television Broadcast Stations by
Satellite Carriers.--A secondary transmission of a primary transmission
of a television broadcast station into the station's local market shall
be subject to statutory licensing under this section if--
            ``(1) the secondary transmission is made by a satellite
        carrier to the public;
            ``(2) the secondary transmission is permissible under the
        rules, regulations, or authorizations of the Federal
        Communications Commission; and
            ``(3) the satellite carrier makes a direct or indirect
        charge for the secondary transmission to--
                    ``(A) each subscriber receiving the secondary
                transmission; or
                    ``(B) a distributor that has contracted with the
                satellite carrier for direct or indirect delivery of
                the secondary transmission to the public.
    ``(b) Reporting Requirements.--
            ``(1) Initial lists.--A satellite carrier that makes
        secondary transmissions of a primary transmission made by a
        network station under subsection (a) shall, within 90 days
        after commencing such secondary transmissions, submit to that
        station a list identifying (by name and street address,
        including county and zip code) all subscribers to which the
        satellite carrier currently makes secondary transmissions of
        that primary transmission.
            ``(2) Subsequent lists.--After the list is submitted under
        paragraph (1), the satellite carrier shall, on the 15th of each
        month, submit to the station a list identifying (by name and
        street address, including county and zip code) any subscribers
        who have been added or dropped as subscribers since the last
        submission under this subsection.
            ``(3) Use of subscriber information.--Subscriber
        information submitted by a satellite carrier under this
        subsection may be used only for the purposes of monitoring
        compliance by the satellite carrier with this section.
            ``(4) Requirements of stations.--The submission
        requirements of this subsection shall apply to a satellite
        carrier only if the station to whom the submissions are to be
        made places on file with the Register of Copyrights a document
        identifying the name and address of the person to whom such
        submissions are to be made. The Register shall maintain for
        public inspection a file of all such documents.
    ``(c) No Royalty Fee Required.--A satellite carrier whose secondary
transmissions are subject to statutory licensing under subsection (a)
shall have no royalty obligation for such secondary transmissions.
    ``(d) Noncompliance With Reporting Requirements.--Notwithstanding
subsection (a), the willful or repeated secondary transmission to the
public by a satellite carrier of a television broadcast station and
embodying a performance or display of a work is actionable as an act of
infringement under section 501, and is fully subject to the remedies
provided under sections 502 through 506 and 509, if the satellite
carrier has not complied with the reporting requirements of subsection
(b).
    ``(e) Willful Alterations.--Notwithstanding subsection (a), the
secondary transmission to the public by a satellite carrier into the
local market of a television broadcast station of a primary
transmission made by that television broadcast station and embodying a
performance or display of a work is actionable as an act of
infringement under section 501, and is fully subject to the remedies
provided by sections 502 through 506 and sections 509 and 510, if the
content of the particular program in which the performance or display
is embodied, or any commercial advertising or station announcement
transmitted by the primary transmitter during, or immediately before or
after, the transmission of such program, is in any way willfully
altered by the satellite carrier through changes, deletions, or
additions, or is combined with programming from any other broadcast
signal.
    ``(f) Violation of Territorial Restrictions on Statutory License
for Television Broadcast Stations.--
            ``(1) Individual violations.--The willful or repeated
        secondary transmission to the public by a satellite carrier of
        a primary transmission made by a television broadcast station
        and embodying a performance or display of a work to a
        subscriber who does not reside in that station's local market,
        and is not subject to statutory licensing under section 119, is
        actionable as an act of infringement under section 501 and is
        fully subject to the remedies provided by sections 502 through
        506 and 509, except that--
                    ``(A) no damages shall be awarded for such act of
                infringement if the satellite carrier took corrective
                action by promptly withdrawing service from the
                ineligible subscriber; and
                    ``(B) any statutory damages shall not exceed $5 for
                such subscriber for each month during which the
                violation occurred.
            ``(2) Pattern of violations.--If a satellite carrier
        engages in a willful or repeated pattern or practice of
        secondarily transmitting to the public a primary transmission
        made by a television broadcast station and embodying a
        performance or display of a work to subscribers who do not
        reside in that station's local market, and are not subject to
        statutory licensing under section 119, then in addition to the
        remedies under paragraph (1)--
                    ``(A) if the pattern or practice has been carried
                out on a substantially nationwide basis, the court
                shall order a permanent injunction barring the
                secondary transmission by the satellite carrier of the
                primary transmissions of that television broadcast
                station (and if such television broadcast station is a
                network station, all other television broadcast
                stations affiliated with such network), and the court
                may order statutory damages not exceeding $250,000 for
                each 6-month period during which the pattern or
                practice was carried out; and
                    ``(B) if the pattern or practice has been carried
                out on a local or regional basis with respect to more
                than one television broadcast station (and if such
                television broadcast station is a network station, all
                other television broadcast stations affiliated with
                such network), the court shall order a permanent
                injunction barring the secondary transmission in that
                locality or region by the satellite carrier of the
                primary transmissions of any television broadcast
                station, and the court may order statutory damages not
                exceeding $250,000 for each 6-month period during which
                the pattern or practice was carried out.
    ``(g) Burden of Proof.--In any action brought under subsection (d),
(e), or (f), the satellite carrier shall have the burden of proving
that its secondary transmission of a primary transmission by a
television broadcast station is made only to subscribers located within
that station's local market.
    ``(h) Geographic Limitations on Secondary Transmissions.--The
statutory license created by this section shall apply to secondary
transmissions to locations in the United States, and any commonwealth,
territory, or possession of the United States.
    ``(i) Exclusivity With Respect to Secondary Transmissions of
Broadcast Stations by Satellite to Members of the Public.--No provision
of section 111 or any other law (other than this section and section
119) shall be construed to contain any authorization, exemption, or
license through which secondary transmissions by satellite carriers of
programming contained in a primary transmission made by a television
broadcast station may be made without obtaining the consent of the
copyright owner.
    ``(j) Definitions.--In this section--
            ``(1) The term `distributor' means an entity which
        contracts to distribute secondary transmissions from a
        satellite carrier and, either as a single channel or in a
        package with other programming, provides the secondary
        transmission either directly to individual subscribers or
        indirectly through other program distribution entities.
            ``(2) The term `local market' for a television broadcast
        station has the meaning given that term in section 337(h)(2) of
the Communications Act of 1934.
            ``(3) The terms `network station', `satellite carrier' and
        `secondary transmission' have the meaning given such terms
        under section 119(d).''.
            ``(4) The term `subscriber' means an entity that receives a
        secondary transmission service by means of a secondary
        transmission from a satellite and pays a fee for the service,
        directly or indirectly, to the satellite carrier or to a
        distributor.
            ``(5) The term `television broadcast station' means an
        over-the-air, commercial or noncommercial television broadcast
        station licensed by the Federal Communications Commission under
        subpart E of part 73 of title 47, Code of Federal
        Regulations.''.
    (b) Technical and Conforming Amendments.--The table of sections for
chapter 1 of title 17, United States Code, is amended by adding after
the item relating to section 121 the following:

``122. Limitations on exclusive rights; secondary transmissions by
                            satellite carriers within local market.''.

SEC. 3. EXTENSION OF EFFECT OF AMENDMENTS TO SECTION 119 OF TITLE 17,
              UNITED STATES CODE.

    Section 4(a) of the Satellite Home Viewer Act of 1994 (17 U.S.C.
119 note; Public Law 103-369; 108 Stat. 3481) is amended by striking
``December 31, 1999'' and inserting ``December 31, 2003''.

SEC. 4. TRANSITION.

    Section 119(a)(5) of title 17, United States Code, is amended by
adding at the end the following:
                    ``(E) Transition.--Notwithstanding subparagraphs
                (A) and (B), a satellite carrier shall not be required
                to terminate service of a network station to a
                subscriber until February 28, 1999.''.

SEC. 5. COMPUTATION OF ROYALTY FEES FOR SATELLITE CARRIERS.

    Section 119(c) of title 17, United States Code, is amended by
adding at the end the following new paragraph:
            ``(4) Reduction.--
                    ``(A) Superstation.--The rate of the royalty fee
                payable in each case under subsection (b)(1)(B)(i) as
                adjusted by a royalty fee established under paragraph
                (2) or (3) of this subsection shall be reduced by 30
                percent.
                    ``(B) Network.--The rate of the royalty fee payable
                under subsection (b)(1)(B)(ii) as adjusted by a royalty
                fee established under paragraph (2) or (3) of this
                subsection shall be reduced by 45 percent.
            ``(5) Public broadcasting service as agent.--For purposes
        of section 802, with respect to royalty fees paid by satellite
        carriers for retransmitting the Public Broadcasting Service
        satellite feed, the Public Broadcasting Service shall be the
        agent for all public television copyright claimants and all
        Public Broadcasting Service member stations.''.

SEC. 6. DEFINITIONS.

    Section 119(d) of title 17, United States Code, is amended--
            (1) by striking paragraph (10) and inserting the following:
            ``(10) Unserved household.--The term `unserved household',
        with respect to a particular television network, means a
        household that cannot receive, through the use of a
        conventional outdoor rooftop receiving antenna, an over-the-air
        signal of grade B intensity (as defined by the Federal
        Communications Commission) of a primary network station
        affiliated with that network.''; and
            (2) by adding at the end the following:
            ``(12) Local network station.--The term `local network
        station' means a network station that is secondarily
        transmitted to subscribers who reside within the local market
        in which the network station is located.''.

SEC. 7. PUBLIC BROADCASTING SERVICE SATELLITE FEED.

    (a) Secondary Transmissions.--Section 119(a)(1) of title 17, United
States Code, is amended--
            (1) by striking the paragraph heading and inserting ``(1)
        Superstations and pbs satellite feed.--'';
            (2) by inserting ``or by the Public Broadcasting Service
        satellite feed'' after ``superstation''; and
            (3) by adding at the end the following: ``In the case of
        the Public Broadcasting Service satellite feed, subsequent to
        January 1, 2001, or the date on which local retransmissions of
        broadcast signals are offered to the public, whichever is
        earlier, the statutory license created by this section shall be
        conditioned on the Public Broadcasting Service certifying to
        the Copyright Office on an annual basis that its membership
        supports the secondary transmission of the Public Broadcasting
        Service satellite feed, and providing notice to the satellite
        carrier of such certification.''.
    (b) Definition.--Section 119(d) of title 17, United States Code, is
amended by adding at the end the following:
            ``(12) Public broadcasting service satellite feed.--The
        term `Public Broadcasting Service satellite feed' means the
        national satellite feed distributed by the Public Broadcasting
        Service consisting of educational and informational programming
        intended for private home viewing, to which the Public
        Broadcasting Service holds national terrestrial broadcast
        rights.''.

SEC. 8. APPLICATION OF FEDERAL COMMUNICATIONS COMMISSION REGULATIONS.

    Section 119(a) of title 17, United States Code, is amended--
            (1) in paragraph (1), by inserting ``is permissible under
        the rules, regulations, and authorizations of the Federal
        Communications Commission,'' after ``satellite carrier to the
        public for private home viewing,''; and
            (2) in paragraph (2), by inserting ``is permissible under
        the rules, regulations, and authorizations of the Federal
        Communications Commission,'' after ``satellite carrier to the
        public for private home viewing,''.

SEC. 9. EFFECTIVE DATE.

    This Act and the amendments made by this Act shall take effect on
January 1, 1999, except section 4 shall take effect on the date of
enactment of this Act.
