[DOCID: f:h1554eh.txt]
106th CONGRESS

  1st Session

                               H. R. 1554

_______________________________________________________________________

                                 AN ACT

   To amend the provisions of title 17, United States Code, and the
    Communications Act of 1934, relating to copyright licensing and
              carriage of broadcast signals by satellite.




























106th CONGRESS
  1st Session
                                H. R. 1554

_______________________________________________________________________

                                 AN ACT


   To amend the provisions of title 17, United States Code, and the
    Communications Act of 1934, relating to copyright licensing and
              carriage of broadcast signals by satellite.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Satellite Copyright, Competition,
and Consumer Protection Act of 1999''.

         TITLE I--SATELLITE COMPETITION AND CONSUMER PROTECTION

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Satellite Competition and Consumer
Protection Act''.

SEC. 102. RETRANSMISSION CONSENT.

    Section 325(b) of the Communications Act of 1934 (47 U.S.C. 325(b))
is amended--
            (1) by amending paragraphs (1) and (2) to read as follows:
    ``(b)(1) No cable system or other multichannel video programming
distributor shall retransmit the signal of a television broadcast
station, or any part thereof, except--
            ``(A) with the express authority of the originating
        station;
            ``(B) pursuant to section 614, in the case of a station
        electing, in accordance with this subsection, to assert the
        right to carriage under such section; or
            ``(C) pursuant to section 338, in the case of a station
        electing, in accordance with this subsection, to assert the
        right to carriage under such section.
    ``(2) The provisions of this subsection shall not apply--
            ``(A) to retransmission of the signal of a noncommercial
        television broadcast station;
            ``(B) to retransmission of the signal of a television
        broadcast station outside the station's local market by a
        satellite carrier directly to its subscribers, if--
                    ``(i) such station was a superstation on May 1,
                1991;
                    ``(ii) as of July 1, 1998, such station was
                retransmitted by a satellite carrier under the
                statutory license of section 119 of title 17, United
                States Code; and
                    ``(iii) the satellite carrier complies with all
                network nonduplication, syndicated exclusivity, and
                sports blackout rules adopted by the Commission
                pursuant to section 712 of this Act;
            ``(C) until 7 months after the date of enactment of the
        Satellite Competition and Consumer Protection Act, to
        retransmission of the signal of a television network station
        directly to a satellite antenna, if the subscriber receiving
        the signal is located in an area outside the local market of
        such station; or
            ``(D) to retransmission by a cable operator or other
        multichannel video provider, other than a satellite carrier, of
        the signal of a television broadcast station outside the
        station's local market if such signal was obtained from a
        satellite carrier and--
                    ``(i) the originating station was a superstation on
                May 1, 1991; and
                    ``(ii) as of July 1, 1998, such station was
                retransmitted by a satellite carrier under the
                statutory license of section 119 of title 17, United
                States Code.'';
            (2) by adding at the end of paragraph (3) the following new
        subparagraph:
    ``(C) Within 45 days after the date of enactment of the Satellite
Competition and Consumer Protection 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 limitations contained in
paragraph (2). The Commission shall complete all actions necessary to
prescribe such regulations within one year after such date of
enactment. Such regulations shall--
            ``(i) establish election time periods that correspond with
        those regulations adopted under subparagraph (B) of this
        paragraph; and
            ``(ii) until January 1, 2006, prohibit television broadcast
        stations that provide retransmission consent from engaging in
        discriminatory practices, understandings, arrangements, and
        activities, including exclusive contracts for carriage, that
        prevent a multichannel video programming distributor from
        obtaining retransmission consent from such stations.'';
            (3) in paragraph (4), by adding at the end the following
        new sentence: ``If an originating television station elects
        under paragraph (3)(C) to exercise its right to grant
        retransmission consent under this subsection with respect to a
        satellite carrier, the provisions of section 338 shall not
        apply to the carriage of the signal of such station by such
        satellite carrier.'';
            (4) in paragraph (5), by striking ``614 or 615'' and
        inserting ``338, 614, or 615''; and
            (5) by adding at the end the following new paragraph:
    ``(7) For purposes of this subsection, the term `television
broadcast station' means an over-the-air commercial or noncommercial
television broadcast station licensed by the Commission under subpart E
of part 73 of title 47, Code of Federal Regulations, except that such
term does not include a low-power or translator television station.''.

SEC. 103. MUST-CARRY FOR SATELLITE CARRIERS RETRANSMITTING TELEVISION
              BROADCAST SIGNALS.

    Title III of the Communications Act of 1934 is amended by inserting
after section 337 (47 U.S.C. 337) the following new section:

``SEC. 338. CARRIAGE OF LOCAL TELEVISION SIGNALS BY SATELLITE CARRIERS.

    ``(a) Carriage Obligations.--
            ``(1) In general.--Subject to the limitations of paragraph
        (2), each satellite carrier providing secondary transmissions
        to subscribers located within the local market of a television
        broadcast station of a primary transmission made by that
        station shall carry upon request all television broadcast
        stations located within that local market, subject to section
        325(b), by retransmitting the signal or signals of such
        stations that are identified by Commission regulations for
        purposes of this section.
            ``(2) Effective date.--No satellite carrier shall be
        required to carry local television broadcast stations under
        paragraph (1) until January 1, 2002.
    ``(b) Good Signal Required.--
            ``(1) Costs.--A television broadcast station asserting its
        right to carriage under subsection (a) shall be required to
        bear the costs associated with delivering a good quality signal
        to the designated local receive facility of the satellite
        carrier or to another facility that is acceptable to at least
        one-half the stations asserting the right to carriage in the
        local market.
            ``(2) Regulations.--The regulations issued under subsection
        (g) shall set forth the obligations necessary to carry out this
        subsection.
    ``(c) Duplication Not Required.--
            ``(1) Commercial stations.--Notwithstanding subsection (a),
        a satellite carrier shall not be required to carry upon request
        the signal of any local commercial television broadcast station
        that substantially duplicates the signal of another local
        commercial television broadcast station which is secondarily
        transmitted by the satellite carrier within the same local
        market, or to carry upon request the signals of more than 1
        local commercial television broadcast station in a single local
        market that is affiliated with a particular television network.
            ``(2) Noncommercial stations.--The Commission shall
        prescribe regulations limiting the carriage requirements under
        subsection (a) of satellite carriers with respect to the
        carriage of multiple local noncommercial television broadcast
        stations. To the extent possible, such regulations shall
        provide the same degree of carriage by satellite carriers of
        such multiple stations as is provided by cable systems under
        section 615.
    ``(d) Channel Positioning.--No satellite carrier shall be required
to provide the signal of a local television broadcast station to
subscribers in that station's local market on any particular channel
number or to provide the signals in any particular order, except that
the satellite carrier shall retransmit the signal of the local
television broadcast stations to subscribers in the stations' local
market on contiguous channels and provide access to such station's
signals at a nondiscriminatory price and in a nondiscriminatory manner
on any navigational device, on-screen program guide, or menu.
    ``(e) Compensation for Carriage.--A satellite carrier shall not
accept or request monetary payment or other valuable consideration in
exchange either for carriage of local television broadcast stations in
fulfillment of the requirements of this section or for channel
positioning rights provided to such stations under this section, except
that any such station may be required to bear the costs associated with
delivering a good quality signal to the local receive facility of the
satellite carrier.
    ``(f) Remedies.--
            ``(1) Complaints by broadcast stations.--Whenever a local
        television broadcast station believes that a satellite carrier
        has failed to meet its obligations under this section, such
        station shall notify the carrier, in writing, of the alleged
        failure and identify its reasons for believing that the
        satellite carrier is obligated to carry upon request the signal
        of such station or has otherwise failed to comply with other
        requirements of this section. The satellite carrier shall,
        within 30 days of such written notification, respond in writing
        to such notification and either begin carrying 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 other requirements of this
        section, as the case may be. A local television broadcast
        station that is denied carriage in accordance with this section
        by a satellite carrier or is otherwise harmed by a response by
        a satellite carrier that it is in compliance with other
        requirements of this section may obtain review of such denial
        or response by filing a complaint with the Commission. Such
        complaint shall allege the manner in which such satellite
        carrier has failed to meet its obligations and the basis for
        such allegations.
            ``(2) Opportunity to respond.--The Commission shall afford
        the satellite carrier against which a complaint is filed under
        paragraph (1) an opportunity to present data and arguments to
        establish that there has been no failure to meet its
        obligations under this section.
            ``(3) Remedial actions; dismissal.--Within 120 days after
        the date a complaint is filed under paragraph (1), the
        Commission shall determine whether the satellite carrier has
        met its obligations under this chapter. If the Commission
        determines that the satellite carrier has failed to meet such
        obligations, the Commission shall order the satellite carrier,
        in the case of an obligation to carry a station, to begin
        carriage of the station and to continue such carriage for at
        least 12 months, or, in the case of the failure to meet other
        obligations under this section, shall take other appropriate
        remedial action. If the Commission determines that the
        satellite carrier has fully met the requirements of this
        chapter, the Commission shall dismiss the complaint.
    ``(g) Regulations by Commission.--Within 180 days after the date of
enactment of this section, the Commission shall, following a rulemaking
proceeding, issue regulations implementing this section.
    ``(h) Definitions.--As used in this section:
            ``(1) Subscriber.--The term `subscriber' means a person
        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.
            ``(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 or
        indirectly through other program distribution entities.
            ``(3) Local receive facility.--The term `local receive
        facility' means the reception point in each local market which
        a satellite carrier designates for delivery of the signal of
        the station for purposes of retransmission.
            ``(4) Television broadcast station.--The term `television
        broadcast station' has the meaning given such term in section
        325(b)(7).
            ``(5) Secondary transmission.--The term `secondary
        transmission' has the meaning given such term in section 119(d)
        of title 17, United States Code.''.

SEC. 104. NONDUPLICATION OF PROGRAMMING BROADCAST BY LOCAL STATIONS.

    Section 712 of the Communications Act of 1934 (47 U.S.C. 612) is
amended to read as follows:

``SEC. 712. NONDUPLICATION OF PROGRAMMING BROADCAST BY LOCAL STATIONS.

    ``(a) Extension of Network Nonduplication, Syndicated Exclusivity,
and Sports Blackout to Satellite Retransmission.--Within 45 days after
the date of enactment of the Satellite Competition and Consumer
Protection Act, the Commission shall commence a single rulemaking
proceeding to establish regulations that apply network nonduplication
protection, syndicated exclusivity protection, and sports blackout
protection to the retransmission of broadcast signals by satellite
carriers to subscribers. To the extent possible consistent with
subsection (b), such regulations shall provide the same degree of
protection against retransmission of broadcast signals as is provided
by the network nonduplication (47 C.F.R. 76.92), syndicated exclusivity
(47 C.F.R. 151), and sports blackout (47 C.F.R. 76.67) rules applicable
to cable television systems. The Commission shall complete all actions
necessary to prescribe regulations required by this section so that the
regulations shall become effective within 1 year after such date of
enactment.
    ``(b) Establishment of Network Nonduplication Boundaries.--
            ``(1) Establishment of signal standard for network
        nonduplication required.--The Commission shall establish a
        signal intensity standard for purposes of determining the
        network nonduplication rights of local television broadcast
        stations. Until revised pursuant to subsection (c), such
        standard shall be the Grade B field strength standard
        prescribed by the Commission in section 73.683 of the
        Commission's regulations (47 C.F.R. 73.683). For purposes of
        this section, the standard established under this paragraph is
        referred to as the `Network Nonduplication Signal Standard'.
            ``(2) Establishment of improved predictive model
        required.--Within 180 days after the date of enactment of the
        Satellite Competition and Consumer Protection Act, the
        Commission shall take all actions necessary, including any
        reconsideration, to develop and prescribe by rule a point-to-
        point predictive model for reliably and presumptively
        determining the ability of individual locations to receive
        signals in accordance with the Network Nonduplication Signal
        Standard. In prescribing such model, the Commission shall
        ensure that such model takes into account terrain, building
        structures, and other land cover variations. The Commission
        shall establish procedures for the continued refinement in the
        application of the model by the use of additional data as it
        becomes available. For purposes of this section, such model is
        referred to as the `Network Nonduplication Reception Model',
        and the area encompassing locations that are predicted to have
        the ability to receive such a signal of a particular broadcast
        station is referred to as that station's `Reception Model
        Area'.
            ``(3) Network nonduplication.--The network nonduplication
        regulations required under subsection (a) shall allow a
        television network station to assert nonduplication rights as
        follows:
                    ``(A) If a satellite carrier is retransmitting that
                station, or any other television broadcast stations
                located in the same local market, to subscribers
                located in that station's local market, the television
                network station may assert nonduplication rights
                against the satellite carrier throughout the area
                within which that station may assert such rights under
                the rules applicable to cable television systems (47
                C.F.R. 76.92).
                    ``(B) If a satellite carrier is not retransmitting
                any television broadcast stations located in the
                television network station's local market to
                subscribers located in such market, the television
                network station may assert nonduplication rights
                against the satellite carrier in the geographic area
                that is within such station's Reception Model Area, but
                such geographic area shall not extend beyond the local
                market of such station.
            ``(4) Waivers.--A subscriber may request a waiver from
        network nonduplication by submitting a request, through such
        subscriber's satellite carrier, to the television network
        station asserting nonduplication rights. The television network
        station shall accept or reject a subscriber's request for a
        waiver within 30 days after receipt of the request. The network
        nonduplication protection described in paragraph (3)(B) shall
        not apply to a subscriber if such station agrees to the waiver
        request and files with the satellite carrier a written waiver
        with respect to that subscriber allowing the subscriber to
        receive satellite retransmission of another network station
affiliated with that same network. The television network station and
the satellite carrier shall maintain a file available to the public
that contains such waiver requests and the acceptances and rejections
thereof.
            ``(5) Objective verification.--
                    ``(A) In general.--If a subscriber's request for a
                waiver under paragraph (4) is rejected and the
                subscriber submits to the subscriber's satellite
                carrier a request for a test verifying the subscriber's
                inability to receive a signal that meets the Network
                Nonduplication Signal Standard, the satellite carrier
                and the television network station or stations
                asserting nonduplication rights with respect to that
                subscriber shall select a qualified and independent
                person to conduct a test in accordance with the
                provisions of section 73.686(d) of title 47, Code of
                Federal Regulations, or any successor regulation. Such
                test shall be conducted within 30 days after the date
                the subscriber submits a request for the test. If the
                written findings and conclusions of a test conducted in
                accordance with the provisions of such section (or any
                successor regulation) demonstrate that the subscriber
                does not receive a signal that meets or exceeds the
                Network Nonduplication Signal Standard, the network
                nonduplication rights described in paragraph (3)(B)
                shall not apply to that subscriber.
                    ``(B) Designation of testor and allocation of
                costs.--If the satellite carrier and the television
                network station or stations asserting nonduplication
                rights are unable to agree on such a person to conduct
                the test, the person shall be designated by an
                independent and neutral entity designated by the
                Commission by rule. Unless the satellite carrier and
                the television network station or stations asserting
                nonduplication rights otherwise agree, the costs of
                conducting the test under this paragraph shall be borne
                equally by the satellite carrier and the television
                network station or stations asserting nonduplication
                rights. A subscriber may not be required to bear any
                portion of the cost of such test.
            ``(6) Recreational vehicle location.--In the case of a
        subscriber to a satellite carrier who has installed satellite
        reception equipment in a recreational vehicle, and who has
        permitted any television network station seeking to assert
        network nonduplication rights to verify the motor vehicle
        registration, license, and proof of ownership of such vehicle,
        the subscriber shall be considered to be outside the local
        market and Reception Model Area of such station. For purposes
        of this paragraph, the term `recreational vehicle' does not
        include any residential manufactured home, as defined in
        section 603(6) of the National Manufactured Housing
        Construction and Safety Standards Act of 1974 (42 U.S.C.
        5402(6)).
    ``(c) Review and Revision of Standards and Model.--
            ``(1) Ongoing inquiry required.--Not later than 2 years
        after the date of enactment of the Satellite Competition and
        Consumer Protection Act, the Commission shall conduct an
        inquiry of the extent to which the Network Nonduplication
        Signal Standard, the Network Nonduplication Reception Model,
        and the Reception Model Areas of television stations are
        adequate to reliably measure the ability of consumers to
        receive an acceptable over-the-air television broadcast signal.
            ``(2) Data to be considered.--In conducting the inquiry
        required by paragraph (1), the Commission shall consider--
                    ``(A) the number of subscribers requesting waivers
                under subsection (b)(4), and the number of waivers that
                are denied;
                    ``(B) the number of subscribers submitting
                petitions under subsection (b)(5), and the number of
                such petitions that are granted;
                    ``(C) the results of any consumer research study
                that may be undertaken to carry out the purposes of
                this section; and
                    ``(D) the extent to which consumers are not legally
                entitled to install broadcast reception devices assumed
                in the Commission's standard.
            ``(3) Report and action.--The Commission shall submit to
        the Congress a report on the inquiry required by this
        subsection not later than the end of the 2-year period
        described in paragraph (1). The Commission shall complete any
        actions necessary to revise the Network Nonduplication Signal
        Standard, the Network Nonduplication Reception Model, and the
        Reception Model Areas of television stations in accordance with
        the findings of such inquiry not later than 6 months after the
        end of such 2-year period.
            ``(4) Data submission.--The Commission shall prescribe by
        rule the data required to be submitted by television broadcast
        stations and by satellite carriers to the Commission or such
        designated entity to carry out this subsection, and the format
        for submission of such data.''.

SEC. 105. CONSENT OF MEMBERSHIP TO RETRANSMISSION OF PUBLIC
              BROADCASTING SERVICE SATELLITE FEED.

    Section 396 of the Communications Act of 1934 (47 U.S.C. 396) is
amended by adding at the end the following new subsection:
    ``(n) The Public Broadcasting Service shall certify to the Board on
an annual basis that a majority of its membership supports or does not
support the secondary transmission of the Public Broadcasting Service
satellite feed, and provide notice to each satellite carrier carrying
such feed of such certification.''.

SEC. 106. DEFINITIONS.

    Section 3 of the Communications Act of 1934 (47 U.S.C. 153) is
amended--
            (1) by redesignating--
                    (A) paragraphs (49) through (52) as paragraphs (52)
                through (55), respectively;
                    (B) paragraphs (39) through (48) as paragraphs (41)
                through (50), respectively; and
                    (C) paragraphs (27) through (38) as paragraph (28)
                through (39), respectively;
            (2) by inserting after paragraph (26) the following new
        paragraph:
            ``(27) Local market.--
                    ``(A) In general.--The term `local market', in the
                case of both commercial and noncommercial television
                broadcast stations, means the designated market area in
                which a station is located, and--
                            ``(i) in the case of a commercial
                        television broadcast station, all commercial
                        television broadcast stations licensed to a
                        community within the same designated market
                        area are within the same local market; and
                            ``(ii) in the case of a noncommercial
                        educational television broadcast station, the
                        market includes any station that is licensed to
                        a community within the same designated market
                        area as the noncommercial educational
                        television broadcast station.
                    ``(B) County of license.--In addition to the area
                described in subparagraph (A), a station's local market
                includes the county in which the station's community of
                license is located.
                    ``(C) Designated market area.--For purposes of
                subparagraph (A), the term `designated market area'
                means a designated market area, as determined by
                Nielsen Media Research and published in the DMA Market
                and Demographic Report.'';
            (3) by inserting after paragraph (39) (as redesignated by
        paragraph (1) of this section) the following new paragraph:
            ``(40) Satellite carrier.--The term `satellite carrier'
        means an entity that uses the facilities of a satellite or
        satellite service licensed by the Commission, and operates in
        the Fixed-Satellite Service under part 25 of title 47 of the
        Code of Federal Regulations or the Direct Broadcast Satellite
        Service under part 100 of title 47 of the Code of Federal
        Regulations, to establish and operate a channel of
        communications for point-to-multipoint distribution of
        television station signals, and that owns or leases a capacity
        or service on a satellite in order to provide such point-to-
        multipoint distribution, except to the extent that such entity
        provides such distribution pursuant to tariff under this
        Act.''; and
            (3) by inserting after paragraph (50) (as redesignated by
        paragraph (1) of this section) the following new paragraph:
            ``(51) Television network; television network station.--
                    ``(A) Television network.--The term `television
                network' means a television network in the United
                States which offers an interconnected program service
                on a regular basis for 15 or more hours per week to at
                least 25 affiliated broadcast stations in 10 or more
                States.
                    ``(B) Television network station.--The term
                `television network station' means a television
                broadcast station that is owned or operated by, or
                affiliated with, a television network.''.

SEC. 107. COMPLETION OF BIENNIAL REGULATORY REVIEW.

    Within 180 days after the date of enactment of this Act, the
Commission shall complete the biennial review required by section
202(h) of the Telecommunications Act of 1996.

SEC. 108. RESULT OF LOSS OF NETWORK SERVICE.

    Until the Federal Communications Commission issues regulations
under section 712(b)(2) of the Communications Act of 1934, if a
subscriber's network service is terminated as a result of the
provisions of section 119 of title 17, United States Code, the
satellite carrier shall, upon the request of the subscriber, provide to
the subscriber free of charge an over-the-air television broadcast
receiving antenna that will provide the subscriber with an over-the-air
signal of Grade B intensity for those network stations that were
terminated as a result of such section 119.

SEC. 109. INTERIM PROVISIONS.

    Until the Federal Communications Commission issues and implements
regulations under section 712(b)(2) of the Communications Act of 1934,
no subscriber whose household is located outside the Grade A contour of
a network station shall have his or her satellite service of another
network station affiliated with that same network terminated as a
result of the provisions of section 119 of title 17, United States
Code.

 TITLE II--SECONDARY TRANSMISSIONS BY SATELLITE CARRIERS WITHIN LOCAL
                                MARKETS

SEC. 201. SHORT TITLE.

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

SEC. 202. LIMITATIONS ON EXCLUSIVE RIGHTS; SECONDARY TRANSMISSIONS BY
              SATELLITE CARRIERS WITHIN LOCAL MARKETS.

    (a) In General.--Chapter 1 of title 17, United States Code, is
amended by adding after section 121 the following new section:
``Sec. 122. Limitations on exclusive rights; secondary transmissions by
              satellite carriers within local markets
    ``(a) Secondary Transmissions of Television Broadcast Stations by
Satellite Carriers.--A secondary transmission of a primary transmission
of a television broadcast station into the station's local market shall
be subject to statutory licensing under this section if--
            ``(1) the secondary transmission is made by a satellite
        carrier to the public;
            ``(2) the satellite carrier is in compliance with the
        rules, regulations, or authorizations of the Federal
        Communications Commission governing the carriage of television
        broadcast station signals; and
            ``(3) the satellite carrier makes a direct or indirect
        charge for the secondary transmission to--
                    ``(A) each subscriber receiving the secondary
                transmission; or
                    ``(B) a distributor that has contracted with the
                satellite carrier for direct or indirect delivery of
                the secondary transmission to the public.
    ``(b) Reporting Requirements.--
            ``(1) Initial lists.--A satellite carrier that makes
        secondary transmissions of a primary transmission made by a
        network station under subsection (a) shall, within 90 days
        after commencing such secondary transmissions, submit to the
        network that owns or is affiliated with the network station a
        list identifying (by name in alphabetical order and street
        address, including county and zip code) all subscribers to
        which the satellite carrier currently makes secondary
        transmissions of that primary transmission pursuant to this
        section.
            ``(2) Subsequent lists.--After the list is submitted under
        paragraph (1), the satellite carrier shall, on the 15th of each
        month, submit to the network a list identifying (by name in
        alphabetical order 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 network to which the submissions are to be
        made places on file with the Register of Copyrights a document
        identifying the name and address of the person to whom such
        submissions are to be made. The Register shall maintain for
        public inspection a file of all such documents.
    ``(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 and Regulatory Requirements.--
Notwithstanding subsection (a), the willful or repeated secondary
transmission to the public by a satellite carrier into the local market
of a television broadcast station of a primary transmission made by
that television broadcast station and embodying a performance or
display of a work is actionable as an act of infringement under section
501, and is fully subject to the remedies provided under sections 502
through 506 and 509, if the satellite carrier has not complied with the
reporting requirements of subsection (b) or with the rules,
regulations, and authorizations of the Federal Communications
Commission concerning the carriage of television broadcast signals.
    ``(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, or
        a private licensing agreement, 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 or subscribers being served in compliance
with section 119.
    ``(h) Geographic Limitations on Secondary Transmissions.--The
statutory license created by this section shall apply to secondary
transmissions to locations in the United States, and any commonwealth,
territory, or possession of the United States.
    ``(i) Exclusivity With Respect to Secondary Transmissions of
Broadcast Stations by Satellite to Members of the Public.--No provision
of section 111 or any other law (other than this section and section
119) shall be construed to contain any authorization, exemption, or
license through which secondary transmissions by satellite carriers of
programming contained in a primary transmission made by a television
broadcast station may be made without obtaining the consent of the
copyright owner.
    ``(j) Definitions.--In this section--
            ``(1) Distributor.--The term `distributor' means an entity
        which contracts to distribute secondary transmissions from a
        satellite carrier and, either as a single channel or in a
        package with other programming, provides the secondary
        transmission either directly to individual subscribers or
        indirectly through other program distribution entities.
            ``(2) Local market.--The `local market' of a television
        broadcast station has the meaning given that term under section
        3 of the Communications Act of 1934.
            ``(3) Network station; satellite carrier; secondary
        transmission.--The terms `network station', `satellite carrier'
        and `secondary transmission' have the meanings given such terms
        under section 119(d).
            ``(4) Subscriber.--The term `subscriber' means a person
        that receives a secondary transmission service by means of a
        secondary transmission from a satellite and pays a fee for the
        service, directly or indirectly, to the satellite carrier or to
        a distributor.
            ``(5) Television broadcast station.--The term `television
        broadcast station' means an over-the-air, commercial or
        noncommercial television broadcast station licensed by the
        Federal Communications Commission under subpart E of part 73 of
        title 47, Code of Federal Regulations.''.
    (b) Infringement of Copyright.--Section 501 of title 17, United
States Code, is amended by adding at the end the following new
subsection:
    ``(f) With respect to any secondary transmission that is made by a
satellite carrier of a primary transmission embodying the performance
or display of a work and is actionable as an act of infringement under
section 122, a television broadcast station holding a copyright or
other license to transmit or perform the same version of that work
shall, for purposes of subsection (b) of this section, be treated as a
legal or beneficial owner if such secondary transmission occurs within
the local market of that station.''.
    (c) Technical and Conforming Amendments.--The table of sections for
chapter 1 of title 17, United States Code, is amended by adding after
the item relating to section 121 the following:

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

SEC. 203. EXTENSION OF EFFECT OF AMENDMENTS TO SECTION 119 OF TITLE 17,
              UNITED STATES CODE.

    Section 4(a) of the Satellite Home Viewer Act of 1994 (17 U.S.C.
119 note; Public Law 103-369; 108 Stat. 3481) is amended by striking
``December 31, 1999'' and inserting ``December 31, 2004''.

SEC. 204. COMPUTATION OF ROYALTY FEES FOR SATELLITE CARRIERS.

    Section 119(c) of title 17, United States Code, is amended by
adding at the end the following new paragraph:
            ``(4) Reduction.--
                    ``(A) Superstation.--The rate of the royalty fee in
                effect on January 1, 1998, payable in each case under
                subsection (b)(1)(B)(i) shall be reduced by 30 percent.
                    ``(B) Network.--The rate of the royalty fee in
                effect on January 1, 1998, payable under subsection
                (b)(1)(B)(ii) shall be reduced by 45 percent.
            ``(5) Public broadcasting service as agent.--For purposes
        of section 802, with respect to royalty fees paid by satellite
        carriers for retransmitting the Public Broadcasting Service
        satellite feed, the Public Broadcasting Service shall be the
        agent for all public television copyright claimants and all
        Public Broadcasting Service member stations.''.

SEC. 205. PUBLIC BROADCASTING SERVICE SATELLITE FEED; DEFINITIONS.

    (a) Secondary Transmissions.--Section 119(a)(1) of title 17, United
States Code, is amended--
            (1) by striking the paragraph heading and inserting ``(1)
        Superstations and pbs satellite feed.--'';
            (2) by inserting ``or by the Public Broadcasting Service
        satellite feed'' after ``superstation''; and
            (3) by adding at the end the following: ``In the case of
        the Public Broadcasting Service satellite feed, subsequent to--
                    ``(A) the date when a majority of subscribers to
                satellite carriers are able to receive the signal of at
                least one noncommercial educational television
                broadcast station from their satellite carrier within
                such stations' local market; or
                    ``(B) 2 years after the effective date of the
                Satellite Copyright Compulsory License Improvement Act,
        whichever is earlier, the statutory license created by this
        section shall be conditioned on certification of support
        pursuant to section 396(n) of the Communications Act of
        1934.''.
    (b) Definitions.--Section 119(d) of title 17, United States Code,
is amended by adding at the end the following:
            ``(12) Public broadcasting service satellite feed.--The
        term `Public Broadcasting Service satellite feed' means the
        national satellite feed distributed by the Public Broadcasting
        Service consisting of educational and informational programming
        intended for private home viewing, to which the Public
        Broadcasting Service holds national terrestrial broadcast
        rights.
            ``(13) Local market.--The term `local market' has the
        meaning given that term in section 122(j)(2).
            ``(14) Television broadcast station.--The term `television
        broadcast station' has the meaning given that term in section
        122(j)(5).''.

SEC. 206. DISTANT SIGNAL RETRANSMISSIONS.

    Section 119 of title 17, United States Code, is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``(6)'' and
                inserting ``(5)'';
                    (B) in paragraph (2)--
                            (i) by striking
            ``(2) Network stations.--
                    ``(A) In general.--Subject to the provisions of
                subparagraphs (B) and (C) of this paragraph and
                paragraphs (3), (4), (5), and (6)'' and inserting:
            ``(2) Network stations.--
                    ``(A) In general.--Subject to the provisions of
                subparagraph (B) of this paragraph and paragraphs (3),
                (4), and (5)''; and
                            (ii) by striking subparagraph (B) and
                        redesignating subparagraph (C) as subparagraph
                        (B);
                    (C) in paragraph (3), by striking ``(2)(C)'' and
                inserting ``(2)(B)''; and
                    (D) by striking paragraphs (5), (8), (9), and (10)
                and redesignating paragraphs (6) and (7) as paragraphs
                (5) and (6), respectively; and
            (2) in subsection (d), by striking paragraphs (10) and
        (11).

SEC. 207. APPLICATION OF FEDERAL COMMUNICATIONS COMMISSION REGULATIONS.

    Section 119(a) of title 17, United States Code, is amended--
            (1) in paragraph (1), by inserting ``the satellite carrier
        is in compliance with the rules, regulations, or authorizations
        of the Federal Communications Commission governing the carriage
        of television broadcast station signals,'' after ``satellite
        carrier to the public for private home viewing,'';
            (2) in paragraph (2), by inserting ``the satellite carrier
        is in compliance with the rules, regulations, or authorizations
        of the Federal Communications Commission governing the carriage
        of television broadcast station signals,'' after ``satellite
        carrier to the public for private home viewing,''; and
            (3) by adding at the end the following new paragraph:
            ``(10) Statutory license contingent on compliance with fcc
        rules and remedial steps.--Notwithstanding any other provision
        of this section, the willful or repeated secondary transmission
        to the public by a satellite carrier of a primary transmission
        made by a broadcast station licensed by the Federal
        Communications Commission is actionable as an act of
        infringement under section 501, and is fully subject to the
        remedies provided by sections 502 through 506 and 509, if, at
        the time of such transmission, the satellite carrier is not in
        compliance with the rules, regulations, and authorizations of
        the Federal Communications Commission concerning the carriage
        of television broadcast station signals.''.

SEC. 208. STUDY ON TECHNICAL AND ECONOMIC IMPACT OF MUST-CARRY ON
              DELIVERY OF LOCAL SIGNALS.

    Not later than July 1, 2000, the Register of Copyrights and the
Assistant Secretary of Commerce for Communications and Information
shall submit to the Congress a joint report that sets forth in detail
their findings and conclusions with respect to the following:
            (1) The availability of local television broadcast signals
        in small and rural markets as part of a service that competes
        with, or supplements, video programming containing copyrighted
        material delivered by satellite carriers or cable operators.
            (2) The technical feasibility of imposing the requirements
        of section 338 of the Communications Act of 1934 on satellite
        carriers that deliver local broadcast station signals
        containing copyrighted material pursuant to section 122 of
        title 17, United States Code, and the technical and economic
        impact of section 338 of the Communications Act of 1934 on the
        ability of satellite carriers to serve multiple television
        markets with retransmission of local television broadcast
        stations, with particular consideration given to the ability to
        serve television markets other than the 100 largest television
        markets in the United States (as determined by the Nielson
        Media Research and published in the DMA market and Demographic
        Report).
            (3) The technological capability of dual satellite dish
        technology to receive effectively over-the-air broadcast
        transmissions containing copyrighted material from the local
        market, the availability of such capability in small and rural
        markets, and the affordability of such capability.
            (4) The technological capability (including interference),
        availability, and affordability of wireless cable (or
        terrestrial wireless) delivery of local broadcast station
        signals containing copyrighted material pursuant to section 111
        of title 17, United States Code, including the feasibility and
        desirability of the expedited licensing of such competitive
        wireless technologies for rural and small markets.
            (5) The technological capability, availability, and
        affordability of a broadcast-only basic tier of cable service.

SEC. 209. EFFECTIVE DATE.

    This title and the amendments made by this title shall take effect
on July 1, 1999, except that section 208 and the amendments made by
section 205 shall take effect on the date of the enactment of this Act.

            Passed the House of Representatives April 27, 1999.

            Attest:

                                                                 Clerk.
