[DOCID: f:s1948is.txt]

106th CONGRESS
  1st Session
                                 S. 1948

   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.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           November 17, 1999

   Mr. Lott introduced the following bill; which was read twice and
               referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


   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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Intellectual
Property and Communications Omnibus Reform Act of 1999''.
    (b) Table of Contents.--The table of contents of this Act is as
follows:

Sec.1.Short title; table of contents.
               TITLE I--SATELLITE HOME VIEWER IMPROVEMENT

Sec.1001.Short title.
Sec.1002.Limitations on exclusive rights; secondary transmissions by
                            satellite
                            carriers within local markets.
Sec.1003.Extension of effect of amendments to section 119 of title 17,
                            United States Code.
Sec.1004.Computation of royalty fees for satellite carriers.
Sec.1005.Distant signal eligibility for consumers.
Sec.1006.Public broadcasting service satellite feed.
Sec.1007.Application of Federal Communications Commission regulations.
Sec.1008.Rules for satellite carriers retransmitting television
                            broadcast signals.
Sec.1009.Retransmission consent.
Sec.1010.Severability.
Sec.1011.Technical amendments.
Sec.1012.Effective dates.
                TITLE II--RURAL LOCAL TELEVISION SIGNALS

Sec.2001.Short title.
Sec.2002.Local television service in unserved and underserved markets.
              TITLE III--TRADEMARK CYBERPIRACY PREVENTION

Sec.3001.Short title; references.
Sec.3002.Cyberpiracy prevention.
Sec.3003.Damages and remedies.
Sec.3004.Limitation on liability.
Sec.3005.Definitions.
Sec.3006.Study on abusive domain name registrations involving personal
                            names.
Sec.3007.Historic preservation.
Sec.3008.Savings clause.
Sec.3009.Technical and conforming amendments.
Sec.3010.Effective date.
                     TITLE IV--INVENTOR PROTECTION

Sec.4001.Short title.
                     Subtitle A--Inventors' Rights

Sec.4101.Short title.
Sec.4102.Integrity in invention promotion services.
Sec.4103.Effective date.
             Subtitle B--Patent and Trademark Fee Fairness

Sec.4201.Short title.
Sec.4202.Adjustment of patent fees.
Sec.4203.Adjustment of trademark fees.
Sec.4204.Study on alternative fee structures.
Sec.4205.Patent and Trademark Office Funding.
Sec.4206.Effective date.
                   Subtitle C--First Inventor Defense

Sec.4301.Short title.
Sec.4302.Defense to patent infringement based on earlier inventor.
Sec.4303.Effective date and applicability.
                   Subtitle D--Patent Term Guarantee

Sec.4401.Short title.
Sec.4402.Patent term guarantee authority.
Sec.4403.Continued examination of patent applications.
Sec.4404.Technical clarification.
Sec.4405.Effective date.
   Subtitle E--Domestic Publication of Patent Applications Published
                                 Abroad

Sec.4501.Short title.
Sec.4502.Publication.
Sec.4503.Time for claiming benefit of earlier filing date.
Sec.4504.Provisional rights.
Sec.4505.Prior art effect of published applications.
Sec.4506.Cost recovery for publication.
Sec.4507.Conforming amendments.
Sec.4508.Effective date.
       Subtitle F--Optional Inter Partes Reexamination Procedure

Sec.4601.Short title.
Sec.4602.Ex parte reexamination of patents.
Sec.4603.Definitions.
Sec.4604.Optional inter partes reexamination procedures.
Sec.4605.Conforming amendments.
Sec.4606.Report to Congress.
Sec.4607.Estoppel effect of reexamination.
Sec.4608.Effective date.
                Subtitle G--Patent and Trademark Office

Sec.4701.Short title.
          Chapter 1--United States Patent and Trademark Office

Sec.4711.Establishment of Patent and Trademark Office.
Sec.4712.Powers and duties.
Sec.4713.Organization and management.
Sec.4714.Public advisory committees.
Sec.4715.Conforming amendments.
Sec.4716.Trademark Trial and Appeal Board.
Sec.4717.Board of Patent Appeals and Interferences.
Sec.4718.Annual report of Director.
Sec.4719.Suspension or exclusion from practice.
Sec.4720.Pay of Director and Deputy Director.
            Chapter 2--Effective Date; Technical Amendments

Sec.4731.Effective date.
Sec.4732.Technical and conforming amendments.
                  Chapter 3--Miscellaneous Provisions

Sec.4741.References.
Sec.4742.Exercise of authorities.
Sec.4743.Savings provisions.
Sec.4744.Transfer of assets.
Sec.4745.Delegation and assignment.
Sec.4746.Authority of Director of the Office of Management and Budget
                            with
                            respect to functions transferred.
Sec.4747.Certain vesting of functions considered transfers.
Sec.4748.Availability of existing funds.
Sec.4749.Definitions.
              Subtitle H--Miscellaneous Patent Provisions

Sec.4801.Provisional applications.
Sec.4802.International applications.
Sec.4803.Certain limitations on damages for patent infringement not
                            applicable.
Sec.4804.Electronic filing and publications.
Sec.4805.Study and report on biological deposits in support of
                            biotechnology
                            patents.
Sec.4806.Prior invention.
Sec.4807.Prior art exclusion for certain commonly assigned patents.
Sec.4808.Exchange of copies of patents with foreign countries.
                   TITLE V--MISCELLANEOUS PROVISIONS

Sec.5001.Commission on online child protection.
Sec.5002.Privacy protection for donors to public broadcasting entities.
Sec.5003.Completion of biennial regulatory review.
Sec.5004.Public broadcasting entities.
Sec.5005.Technical amendments relating to vessel hull design
                            protection.
Sec.5006.Informal rulemaking of copyright determination.
Sec.5007.Service of process for surety corporations.
Sec.5008.Low-power television.
                  TITLE VI--SUPERFUND RECYCLING EQUITY

Sec.6001.Superfund recycling equity.

               TITLE I--SATELLITE HOME VIEWER IMPROVEMENT

SEC. 1001. SHORT TITLE.

    This title may be cited as the ``Satellite Home Viewer Improvement
Act of 1999''.

SEC. 1002. 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 performance or
display of a work embodied in 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) with regard to secondary transmissions, the satellite
        carrier is in compliance with the rules, regulations, or
        authorizations of the Federal Communications Commission
        governing the carriage of television broadcast station signals;
        and
            ``(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 makes secondary transmissions of
        that primary transmission under subsection (a).
            ``(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 networks.--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 of Copyrights 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 embodying a
performance or display of a work made by that television broadcast
station 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 performance or
display of a work embodied in a primary transmission made by that
television broadcast station is actionable as an act of infringement
under section 501, and is fully subject to the remedies provided by
sections 502 through 506 and 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 embodying a performance or display of a
        work made by a television broadcast station 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
        embodying a performance or display of a work made by a
        television broadcast station to subscribers who do not reside
        in that station's local market, and are not subject to
        statutory licensing under section 119 or a private licensing
        agreement, 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--
                            ``(i) 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
                            ``(ii) 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, the court--
                            ``(i) 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
                            ``(ii) 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 (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 or a private licensing agreement.
    ``(h) Geographic Limitations on Secondary Transmissions.--The
statutory license created by this section shall apply to secondary
transmissions to locations in 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.--
                    ``(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 1999-2000
                Nielsen Station Index Directory and Nielsen Station
                Index United States Television Household Estimates or
                any successor publication.
            ``(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 who
        receives a secondary transmission service from a satellite
        carrier and pays a fee for the service, directly or indirectly,
        to the satellite carrier or to a distributor.
            ``(5) Television broadcast station.--The term `television
        broadcast station'--
                    ``(A) 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,
                except that such term does not include a low-power or
                translator television station; and
                    ``(B) includes a television broadcast station
                licensed by an appropriate governmental authority of
                Canada or Mexico if the station broadcasts primarily in
                the English language and is a network station as
                defined in section 119(d)(2)(A).''.
    (b) Infringement of Copyright.--Section 501 of title 17, United
States Code, is amended by adding at the end the following new
subsection:
    ``(f)(1) With respect to any secondary transmission that is made by
a satellite carrier of a performance or display of a work embodied in a
primary transmission and is actionable as an act of infringement under
section 122, a television broadcast station holding a copyright or
other license to transmit or perform the same version of that work
shall, for purposes of subsection (b) of this section, be treated as a
legal or beneficial owner if such secondary transmission occurs within
the local market of that station.
    ``(2) A television broadcast station may file a civil action
against any satellite carrier that has refused to carry television
broadcast signals, as required under section 122(a)(2), to enforce that
television broadcast station's rights under section 338(a) of the
Communications Act of 1934.''.
    (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. 1003. 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. 1004. 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 and public broadcasting satellite
                feed.--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. 1005. DISTANT SIGNAL ELIGIBILITY FOR CONSUMERS.

    (a) Unserved Household.--
            (1) In general.--Section 119(d) of title 17, United States
        Code, is amended 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--
                    ``(A) cannot receive, through the use of a
                conventional, stationary, outdoor rooftop receiving
                antenna, an over-the-air signal of a primary network
                station affiliated with that network of Grade B
                intensity as defined by the Federal Communications
                Commission under section 73.683(a) of title 47 of the
                Code of Federal Regulations, as in effect on January 1,
                1999;
                    ``(B) is subject to a waiver granted under
                regulations established under section 339(c)(2) of the
                Communications Act of 1934;
                    ``(C) is a subscriber to whom subsection (e)
                applies;
                    ``(D) is a subscriber to whom subsection (a)(11)
                applies; or
                    ``(E) is a subscriber to whom the exemption under
                subsection (a)(2)(B)(iii) applies.''.
            (2) Conforming amendment.--Section 119(a)(2)(B) of title
        17, United States Code, is amended to read as follows:
                    ``(B) Secondary transmissions to unserved
                households.--
                            ``(i) In general.--The statutory license
                        provided for in subparagraph (A) shall be
                        limited to secondary transmissions of the
                        signals of no more than two network stations in
                        a single day for each television network to
                        persons who reside in unserved households.
                            ``(ii) Accurate determinations of
                        eligibility.--
                                    ``(I) Accurate predictive model.--
                                In determining presumptively whether a
                                person resides in an unserved household
                                under subsection (d)(10)(A), a court
                                shall rely on the Individual Location
                                Longley-Rice model set forth by the
                                Federal Communications Commission in
                                Docket No. 98-201, as that model may be
                                amended by the Commission over time
                                under section 339(c)(3) of the
                                Communications Act of 1934 to increase
                                the accuracy of that model.
                                    ``(II) Accurate measurements.--For
                                purposes of site measurements to
                                determine whether a person resides in
                                an unserved household under subsection
                                (d)(10)(A), a court shall rely on
                                section 339(c)(4) of the Communications
                                Act of 1934.
                            ``(iii) C-band exemption to unserved
                        households.--
                                    ``(I) In general.--The limitations
                                of clause (i) shall not apply to any
                                secondary transmissions by C-band
                                services of network stations that a
                                subscriber to C-band service received
                                before any termination of such
                                secondary transmissions before October
                                31, 1999.
                                    ``(II) Definition.--In this clause
                                the term `C-band service' means a
                                service that is licensed by the Federal
                                Communications Commission and operates
                                in the Fixed Satellite Service under
                                part 25 of title 47 of the Code of
                                Federal Regulations.''.
    (b) Exception to Limitation on Secondary Transmissions.--Section
119(a)(5) of title 17, United States Code, is amended by adding at the
end the following:
                    ``(E) Exception.--The secondary transmission by a
                satellite carrier of a performance or display of a work
                embodied in a primary transmission made by a network
                station to subscribers who do not reside in unserved
                households shall not be an act of infringement if--
                            ``(i) the station on May 1, 1991, was
                        retransmitted by a satellite carrier and was
                        not on that date owned or operated by or
                        affiliated with a television network that
                        offered interconnected program service on a
                        regular basis for 15 or more hours per week to
                        at least 25 affiliated television licensees in
                        10 or more States;
                            ``(ii) as of July 1, 1998, such station was
                        retransmitted by a satellite carrier under the
                        statutory license of this section; and
                            ``(iii) the station is not owned or
                        operated by or affiliated with a television
                        network that, as of January 1, 1995, offered
                        interconnected program service on a regular
                        basis for 15 or more hours per week to at least
                        25 affiliated television licensees in 10 or
                        more States.''.
    (c) Moratorium on Copyright Liability.--Section 119(e) of title 17,
United States Code, is amended to read as follows:
    ``(e) Moratorium on Copyright Liability.--Until December 31, 2004,
a subscriber who does not receive a signal of Grade A intensity (as
defined in the regulations of the Federal Communications Commission
under section 73.683(a) of title 47 of the Code of Federal Regulations,
as in effect on January 1, 1999, or predicted by the Federal
Communications Commission using the Individual Location Longley-Rice
methodology described by the Federal Communications Commission in
Docket No. 98-201) of a local network television broadcast station
shall remain eligible to receive signals of network stations affiliated
with the same network, if that subscriber had satellite service of such
network signal terminated after July 11, 1998, and before October 31,
1999, as required by this section, or received such service on October
31, 1999.''.
    (d) Recreational Vehicle and Commercial Truck Exemption.--Section
119(a) of title 17, United States Code, is amended by adding at the end
the following:
            ``(11) Service to recreational vehicles and commercial
        trucks.--
                    ``(A) Exemption.--
                            ``(i) In general.--For purposes of this
                        subsection, and subject to clauses (ii) and
                        (iii), the term `unserved household' shall
                        include--
                                    ``(I) recreational vehicles as
                                defined in regulations of the Secretary
                                of Housing and Urban Development under
                                section 3282.8 of title 24 of the Code
                                of Federal Regulations; and
                                    ``(II) commercial trucks that
                                qualify as commercial motor vehicles
                                under regulations of the Secretary of
                                Transportation under section 383.5 of
                                title 49 of the Code of Federal
                                Regulations.
                            ``(ii) Limitation.--Clause (i) shall apply
                        only to a recreational vehicle or commercial
                        truck if any satellite carrier that proposes to
                        make a secondary transmission of a network
                        station to the operator of such a recreational
                        vehicle or commercial truck complies with the
                        documentation requirements under subparagraphs
                        (B) and (C).
                            ``(iii) Exclusion.--For purposes of this
                        subparagraph, the terms `recreational vehicle'
                        and `commercial truck' shall not include any
                        fixed dwelling, whether a mobile home or
                        otherwise.
                    ``(B) Documentation requirements.--A recreational
                vehicle or commercial truck shall be deemed to be an
                unserved household beginning 10 days after the relevant
                satellite carrier provides to the network that owns or
                is affiliated with the network station that will be
                secondarily transmitted to the recreational vehicle or
                commercial truck the following documents:
                            ``(i) Declaration.--A signed declaration by
                        the operator of the recreational vehicle or
                        commercial truck that the satellite dish is
                        permanently attached to the recreational
                        vehicle or commercial truck, and will not be
                        used to receive satellite programming at any
                        fixed dwelling.
                            ``(ii) Registration.--In the case of a
                        recreational vehicle, a copy of the current
                        State vehicle registration for the recreational
                        vehicle.
                            ``(iii) Registration and license.--In the
                        case of a commercial truck, a copy of--
                                    ``(I) the current State vehicle
                                registration for the truck; and
                                    ``(II) a copy of a valid, current
                                commercial driver's license, as defined
                                in regulations of the Secretary of
                                Transportation under section 383 of
                                title 49 of the Code of Federal
                                Regulations, issued to the operator.
                    ``(C) Updated documentation requirements.--If a
                satellite carrier wishes to continue to make secondary
                transmissions to a recreational vehicle or commercial
                truck for more than a 2-year period, that carrier shall
                provide each network, upon request, with updated
                documentation in the form described under subparagraph
                (B) during the 90 days before expiration of that 2-year
                period.''.
    (e) Conforming Amendment.--Section 119(d)(11) of title 17, United
States Code, is amended to read as follows:
            ``(11) Local market.--The term `local market' has the
        meaning given such term under section 122(j).''.

SEC. 1006. 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, the statutory
        license shall be effective until January 1, 2002.''.
    (b) Royalty Fees.--Section 119(b)(1)(B)(iii) of title 17, United
States Code, is amended by inserting ``or the Public Broadcasting
Service satellite feed'' after ``network station''.
    (c) Definitions.--Section 119(d) of title 17, United States Code,
is amended--
            (1) by amending paragraph (9) to read as follows:
            ``(9) Superstation.--The term `superstation'--
                    ``(A) means a television broadcast station, other
                than a network station, licensed by the Federal
                Communications Commission that is secondarily
                transmitted by a satellite carrier; and
                    ``(B) except for purposes of computing the royalty
                fee, includes the Public Broadcasting Service satellite
                feed.''; and
            (2) 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 and designated for purposes
        of this section 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. 1007. APPLICATION OF FEDERAL COMMUNICATIONS COMMISSION
              REGULATIONS.

    Section 119(a) of title 17, United States Code, is amended--
            (1) in paragraph (1), by inserting ``with regard to
        secondary transmissions the satellite carrier is in compliance
        with the rules, regulations, or authorizations of the Federal
        Communications Commission governing the carriage of television
        broadcast station signals,'' after ``satellite carrier to the
        public for private home viewing,'';
            (2) in paragraph (2), by inserting ``with regard to
        secondary transmissions the satellite carrier is in compliance
        with the rules, regulations, or authorizations of the Federal
        Communications Commission governing the carriage of television
        broadcast station signals,'' after ``satellite carrier to the
        public for private home viewing,''; and
            (3) by adding at the end of such subsection (as amended by
        section 1005(e) of this Act) the following new paragraph:
            ``(12) Statutory license contingent on compliance with fcc
        rules and remedial steps.--Notwithstanding any other provision
        of this section, the willful or repeated secondary transmission
        to the public by a satellite carrier of a primary transmission
        embodying a performance or display of a work made by a
        broadcast station licensed by the Federal Communications
        Commission is actionable as an act of infringement under
        section 501, and is fully subject to the remedies provided by
        sections 502 through 506 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. 1008. RULES FOR SATELLITE CARRIERS RETRANSMITTING TELEVISION
              BROADCAST SIGNALS.

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

``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, under section 122 of
        title 17, United States Code, 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 the signals of all television
        broadcast stations located within that local market, subject to
        section 325(b).
            ``(2) Remedies for failure to carry.--The remedies for any
        failure to meet the obligations under this subsection shall be
        available exclusively under section 501(f) of title 17, United
        States Code.
            ``(3) 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 one
        local commercial television broadcast station in a single local
        market that is affiliated with a particular television network
        unless such stations are licensed to communities in different
        States.
            ``(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 subsections (b)
        through (e) of this section, such station shall notify the
        carrier, in writing, of the alleged failure and identify its
        reasons for believing that the satellite carrier failed to
        comply with such obligations. The satellite carrier shall,
        within 30 days after such written notification, respond in
        writing to such notification and comply with such obligations
        or state its reasons for believing that it is in compliance
        with such obligations. A local television broadcast station
        that disputes a response by a satellite carrier that it is in
        compliance with such obligations 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 subsections (b) through (e). If the
        Commission determines that the satellite carrier has failed to
        meet such obligations, the Commission shall order the satellite
        carrier to take appropriate remedial action. If the Commission
        determines that the satellite carrier has fully met the
        requirements of such subsections, the Commission shall dismiss
        the complaint.
    ``(g) Regulations by Commission.--Within 1 year after the date of
the enactment of this section, the Commission shall issue regulations
implementing this section following a rulemaking proceeding. The
regulations prescribed under this section shall include requirements on
satellite carriers that are comparable to the requirements on cable
operators under sections 614(b)(3) and (4) and 615(g)(1) and (2).
    ``(h) Definitions.--As used 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 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.
            ``(3) Local market.--The term `local market' has the
        meaning given that term under section 122(j) of title 17,
        United States Code.
            ``(4) Satellite carrier.--The term `satellite carrier' has
        the meaning given such term under section 119(d) of title 17,
        United States Code.
            ``(5) Secondary transmission.--The term `secondary
        transmission' has the meaning given such term in section 119(d)
        of title 17, United States Code.
            ``(6) Subscriber.--The term `subscriber' has the meaning
        given that term under section 122(j) of title 17, United States
        Code.
            ``(7) Television broadcast station.--The term `television
        broadcast station' has the meaning given such term in section
        325(b)(7).

``SEC. 339. CARRIAGE OF DISTANT TELEVISION STATIONS BY SATELLITE
              CARRIERS.

    ``(a) Provisions Relating to Carriage of Distant Signals.--
            ``(1) Carriage permitted.--
                    ``(A) In general.--Subject to section 119 of title
                17, United States Code, any satellite carrier shall be
                permitted to provide the signals of no more than two
                network stations in a single day for each television
                network to any household not located within the local
                markets of those network stations.
                    ``(B) Additional service.--In addition to signals
                provided under subparagraph (A), any satellite carrier
                may also provide service under the statutory license of
                section 122 of title 17, United States Code, to the
                local market within which such household is located.
                The service provided under section 122 of such title
                may be in addition to the two signals provided under
                section 119 of such title.
            ``(2) Penalty for violation.--Any satellite carrier that
        knowingly and willfully provides the signals of television
        stations to subscribers in violation of this subsection shall
        be liable for a forfeiture penalty under section 503 in the
        amount of $50,000 for each violation or each day of a
        continuing violation.
    ``(b) Extension of Network Nonduplication, Syndicated Exclusivity,
and Sports Blackout to Satellite Retransmission.--
            ``(1) Extension of protections.--Within 45 days after the
        date of the enactment of the Satellite Home Viewer Improvement
        Act of 1999, the Commission shall commence a single rulemaking
        proceeding to establish regulations that--
                    ``(A) apply network nonduplication protection (47
                CFR 76.92) syndicated exclusivity protection (47 CFR
                76.151), and sports blackout protection (47 CFR 76.67)
                to the retransmission of the signals of nationally
                distributed superstations by satellite carriers to
                subscribers; and
                    ``(B) to the extent technically feasible and not
                economically prohibitive, apply sports blackout
                protection (47 CFR 76.67) to the retransmission of the
                signals of network stations by satellite carriers to
                subscribers.
            ``(2) Deadline for action.--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.
    ``(c) Eligibility for Retransmission.--
            ``(1) Signal standard for satellite carrier purposes.--For
        the purposes of identifying an unserved household under section
        119(d)(10) of title 17, United States Code, within 1 year after
        the date of the enactment of the Satellite Home Viewer
        Improvement Act of 1999, the Commission shall conclude an
        inquiry to evaluate all possible standards and factors for
        determining eligibility for retransmissions of the signals of
        network stations, and, if appropriate--
                    ``(A) recommend modifications to the Grade B
                intensity standard for analog signals set forth in
                section 73.683(a) of its regulations (47 CFR
                73.683(a)), or recommend alternative standards or
                factors for purposes of determining such eligibility;
                and
                    ``(B) make a further recommendation relating to an
                appropriate standard for digital signals.
            ``(2) Waivers.--A subscriber who is denied the
        retransmission of a signal of a network station under section
        119 of title 17, United States Code, may request a waiver from
        such denial by submitting a request, through such subscriber's
        satellite carrier, to the network station asserting that the
        retransmission is prohibited. The network station shall accept
        or reject a subscriber's request for a waiver within 30 days
        after receipt of the request. The subscriber shall be permitted
        to receive such retransmission under section 119(d)(10)(B) of
        title 17, United States Code, 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 such retransmission. If a television network station
        fails to accept or reject a subscriber's request for a waiver
        within the 30-day period after receipt of the request, that
        station shall be deemed to agree to the waiver request and have
        filed such written waiver.
            ``(3) Establishment of improved predictive model
        required.--Within 180 days after the date of the enactment of
        the Satellite Home Viewer Improvement Act of 1999, 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 signal intensity standard in
        effect under section 119(d)(10)(A) of title 17, United States
        Code. In prescribing such model, the Commission shall rely on
        the Individual Location Longley-Rice model set forth by the
        Federal Communications Commission in Docket No. 98-201 and
        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.
            ``(4) Objective verification.--
                    ``(A) In general.--If a subscriber's request for a
                waiver under paragraph (2) 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 signal
                intensity standard in effect under section
                119(d)(10)(A) of title 17, United States Code, the
                satellite carrier and the network station or stations
                asserting that the retransmission is prohibited with
                respect to that subscriber shall select a qualified and
                independent person to conduct a test in accordance with
                section 73.686(d) of its regulations (47 CFR
                73.686(d)), 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 such section (or any successor
                regulation) demonstrate that the subscriber does not
                receive a signal that meets or exceeds the signal
                intensity standard in effect under section
                119(d)(10)(A) of title 17, United States Code, the
                subscriber shall not be denied the retransmission of a
                signal of a network station under section 119 of title
                17, United States Code.
                    ``(B) Designation of tester and allocation of
                costs.--If the satellite carrier and the network
                station or stations asserting that the retransmission
                is prohibited 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 network station or stations otherwise agree, the
                costs of conducting the test under this paragraph shall
                be borne by the satellite carrier, if the station's
                signal meets or exceeds the signal intensity standard
                in effect under section 119(d)(10)(A) of title 17,
                United States Code, or by the network station, if its
                signal fails to meet or exceed such standard.
                    ``(C) Avoidance of undue burden.-- Commission
                regulations prescribed under this paragraph shall seek
                to avoid any undue burden on any party.
    ``(d) Definitions.--For the purposes of this section:
            ``(1) Local market.--The term `local market' has the
        meaning given that term under section 122(j) of title 17,
        United States Code.
            ``(2) Nationally distributed superstation.--The term
        `nationally distributed superstation' means a television
        broadcast station, licensed by the Commission, that--
                    ``(A) is not owned or operated by or affiliated
                with a television network that, as of January 1, 1995,
                offered interconnected program service on a regular
                basis for 15 or more hours per week to at least 25
                affiliated television licensees in 10 or more States;
                    ``(B) on May 1, 1991, was retransmitted by a
                satellite carrier and was not a network station at that
                time; and
                    ``(C) was, as of July 1, 1998, retransmitted by a
                satellite carrier under the statutory license of
                section 119 of title 17, United States Code.
            ``(3) Network station.--The term `network station' has the
        meaning given such term under section 119(d) of title 17,
        United States Code.
            ``(4) Satellite carrier.--The term `satellite carrier' has
        the meaning given such term under section 119(d) of title 17,
        United States Code.
            ``(5) 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) Network Station Definition.--Section 119(d)(2) of title 17,
United States Code, is amended--
            (1) in subparagraph (B) by striking the period and
        inserting a semicolon; and
            (2) by adding after subparagraph (B) the following:
``except that the term does not include the signal of the Alaska Rural
Communications Service, or any successor entity to that service.''.

SEC. 1009. RETRANSMISSION CONSENT.

    (a) In General.--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 broadcasting station, or
any part thereof, except--
            ``(A) with the express authority of the originating
        station;
            ``(B) under 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) under section 338, in the case of a station electing,
        in accordance with this subsection, to assert the right to
        carriage under such section.
    ``(2) 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 any
                network nonduplication, syndicated exclusivity, and
                sports blackout rules adopted by the Commission under
                section 339(b) of this Act;
            ``(C) until December 31, 2004, to retransmission of the
        signals of network stations directly to a home satellite
        antenna, if the subscriber receiving the signal--
                    ``(i) is located in an area outside the local
                market of such stations; and
                    ``(ii) resides in an unserved household;
            ``(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; or
            ``(E) during the 6-month period beginning on the date of
        the enactment of the Satellite Home Viewer Improvement Act of
        1999, to the retransmission of the signal of a television
        broadcast station within the station's local market by a
        satellite carrier directly to its subscribers under the
        statutory license of section 122 of title 17, United States
        Code.
For purposes of this paragraph, the terms `satellite carrier' and
`superstation' have the meanings given those terms, respectively, in
section 119(d) of title 17, United States Code, as in effect on the
date of the enactment of the Cable Television Consumer Protection and
Competition Act of 1992, the term `unserved household' has the meaning
given that term under section 119(d) of such title, and the term `local
market' has the meaning given that term in section 122(j) of such
title.'';
            (2) by adding at the end of paragraph (3) the following new
        subparagraph:
    ``(C) Within 45 days after the date of the enactment of the
Satellite Home Viewer Improvement Act of 1999, 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 1 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 a television
        broadcast station that provides retransmission consent from
        engaging in exclusive contracts for carriage or failing to
        negotiate in good faith, and it shall not be a failure to
        negotiate in good faith if the television broadcast station
        enters into retransmission consent agreements containing
        different terms and conditions, including price terms, with
        different multichannel video programming distributors if such
        different terms and conditions are based on competitive
        marketplace considerations.'';
            (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, 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--
                    ``(A) `network station' has the meaning given such
                term under section 119(d) of title 17, United States
                Code; and
                    ``(B) `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.''.
    (b) Enforcement Provisions for Consent for Retransmissions.--
Section 325 of the Communications Act of 1934 (47 U.S.C. 325) is
amended by adding at the end the following new subsection:
    ``(e) Enforcement Proceedings Against Satellite Carriers Concerning
Retransmissions of Television Broadcast Stations in the Respective
Local Markets of Such Carriers.--
            ``(1) Complaints by television broadcast stations.--If
        after the expiration of the 6-month period described under
        subsection (b)(2)(E) a television broadcast station believes
        that a satellite carrier has retransmitted its signal to any
        person in the local market of such station in violation of
        subsection (b)(1), the station may file with the Commission a
        complaint providing--
                    ``(A) the name, address, and call letters of the
                station;
                    ``(B) the name and address of the satellite
                carrier;
                    ``(C) the dates on which the alleged retransmission
                occurred;
                    ``(D) the street address of at least one person in
                the local market of the station to whom the alleged
                retransmission was made;
                    ``(E) a statement that the retransmission was not
                expressly authorized by the television broadcast
                station; and
                    ``(F) the name and address of counsel for the
                station.
            ``(2) Service of complaints on satellite carriers.--For
        purposes of any proceeding under this subsection, any satellite
        carrier that retransmits the signal of any broadcast station
        shall be deemed to designate the Secretary of the Commission as
        its agent for service of process. A television broadcast
        station may serve a satellite carrier with a complaint
        concerning an alleged violation of subsection (b)(1) through
        retransmission of a station within the local market of such
        station by filing the original and two copies of the complaint
        with the Secretary of the Commission and serving a copy of the
        complaint on the satellite carrier by means of two commonly
        used overnight delivery services, each addressed to the chief
        executive officer of the satellite carrier at its principal
        place of business, and each marked `URGENT LITIGATION MATTER'
        on the outer packaging. Service shall be deemed complete one
        business day after a copy of the complaint is provided to the
        delivery services for overnight delivery. On receipt of a
        complaint filed by a television broadcast station under this
        subsection, the Secretary of the Commission shall send the
        original complaint by United States mail, postage prepaid,
        receipt requested, addressed to the chief executive officer of
        the satellite carrier at its principal place of business.
            ``(3) Answers by satellite carriers.--Within five business
        days after the date of service, the satellite carrier shall
        file an answer with the Commission and shall serve the answer
        by a commonly used overnight delivery service and by United
        States mail, on the counsel designated in the complaint at the
        address listed for such counsel in the complaint.
            ``(4) Defenses.--
                    ``(A) Exclusive defenses.--The defenses under this
                paragraph are the exclusive defenses available to a
                satellite carrier against which a complaint under this
                subsection is filed.
                    ``(B) Defenses.--The defenses referred to under
                subparagraph (A) are the defenses that--
                            ``(i) the satellite carrier did not
                        retransmit the television broadcast station to
                        any person in the local market of the station
                        during the time period specified in the
                        complaint;
                            ``(ii) the television broadcast station
                        had, in a writing signed by an officer of the
                        television broadcast station, expressly
                        authorized the retransmission of the station by
                        the satellite carrier to each person in the
                        local market of the television broadcast
                        station to which the satellite carrier made
                        such retransmissions for the entire time period
                        during which it is alleged that a violation of
                        subsection (b)(1) has occurred;
                            ``(iii) the retransmission was made after
                        January 1, 2002, and the television broadcast
                        station had elected to assert the right to
                        carriage under section 338 as against the
                        satellite carrier for the relevant period; or
                            ``(iv) the station being retransmitted is a
                        noncommercial television broadcast station.
            ``(5) Counting of violations.--The retransmission without
        consent of a particular television broadcast station on a
        particular day to one or more persons in the local market of
        the station shall be considered a separate violation of
        subsection (b)(1).
            ``(6) Burden of proof.--With respect to each alleged
        violation, the burden of proof shall be on a television
        broadcast station to establish that the satellite carrier
        retransmitted the station to at least one person in the local
        market of the station on the day in question. The burden of
        proof shall be on the satellite carrier with respect to all
        defenses other than the defense under paragraph (4)(B)(i).
            ``(7) Procedures.--
                    ``(A) Regulations.--Within 60 days after the date
                of the enactment of the Satellite Home Viewer
                Improvement Act of 1999, the Commission shall issue
                procedural regulations implementing this subsection
                which shall supersede procedures under section 312.
                    ``(B) Determinations.--
                            ``(i) In general.--Within 45 days after the
                        filing of a complaint, the Commission shall
                        issue a final determination in any proceeding
                        brought under this subsection. The Commission's
                        final determination shall specify the number of
                        violations committed by the satellite carrier.
                        The Commission shall hear witnesses only if it
                        clearly appears, based on written filings by
                        the parties, that there is a genuine dispute
                        about material facts. Except as provided in the
                        preceding sentence, the Commission may issue a
                        final ruling based on written filings by the
                        parties.
                            ``(ii) Discovery.--The Commission may
                        direct the parties to exchange pertinent
                        documents, and if necessary to take prehearing
                        depositions, on such schedule as the Commission
                        may approve, but only if the Commission first
                        determines that such discovery is necessary to
                        resolve a genuine dispute about material facts,
                        consistent with the obligation to make a final
                        determination within 45 days.
            ``(8) Relief.--If the Commission determines that a
        satellite carrier has retransmitted the television broadcast
        station to at least one person in the local market of such
        station and has failed to meet its burden of proving one of the
        defenses under paragraph (4) with respect to such
        retransmission, the Commission shall be required to--
                    ``(A) make a finding that the satellite carrier
                violated subsection (b)(1) with respect to that
                station; and
                    ``(B) issue an order, within 45 days after the
                filing of the complaint, containing--
                            ``(i) a cease-and-desist order directing
                        the satellite carrier immediately to stop
                        making any further retransmissions of the
                        television broadcast station to any person
                        within the local market of such station until
                        such time as the Commission determines that the
                        satellite carrier is in compliance with
                        subsection (b)(1) with respect to such station;
                            ``(ii) if the satellite carrier is found to
                        have violated subsection (b)(1) with respect to
                        more than two television broadcast stations, a
                        cease-and-desist order directing the satellite
                        carrier to stop making any further
                        retransmission of any television broadcast
                        station to any person within the local market
                        of such station, until such time as the
                        Commission, after giving notice to the station,
                        that the satellite carrier is in compliance
                        with subsection (b)(1) with respect to such
                        stations; and
                            ``(iii) an award to the complainant of that
                        complainant's costs and reasonable attorney's
                        fees.
            ``(9) Court proceedings on enforcement of commission
        order.--
                    ``(A) In general.--On entry by the Commission of a
                final order granting relief under this subsection--
                            ``(i) a television broadcast station may
                        apply within 30 days after such entry to the
                        United States District Court for the Eastern
                        District of Virginia for a final judgment
                        enforcing all relief granted by the Commission;
                        and
                            ``(ii) the satellite carrier may apply
                        within 30 days after such entry to the United
                        States District Court for the Eastern District
                        of Virginia for a judgment reversing the
                        Commission's order.
                    ``(B) Appeal.--The procedure for an appeal under
                this paragraph by the satellite carrier shall supersede
                any other appeal rights under Federal or State law. A
                United States district court shall be deemed to have
                personal jurisdiction over the satellite carrier if the
                carrier, or a company under common control with the
                satellite carrier, has delivered television programming
                by satellite to more than 30 customers in that district
                during the preceding 4-year period. If the United
                States District Court for the Eastern District of
                Virginia does not have personal jurisdiction over the
                satellite carrier, an enforcement action or appeal
                shall be brought in the United States District Court
                for the District of Columbia, which may find personal
                jurisdiction based on the satellite carrier's ownership
                of licenses issued by the Commission. An application by
                a television broadcast station for an order enforcing
                any cease-and-desist relief granted by the Commission
                shall be resolved on a highly expedited schedule. No
                discovery may be conducted by the parties in any such
                proceeding. The district court shall enforce the
                Commission order unless the Commission record reflects
                manifest error and an abuse of discretion by the
                Commission.
            ``(10) Civil action for statutory damages.--Within 6 months
        after issuance of an order by the Commission under this
        subsection, a television broadcast station may file a civil
        action in any United States district court that has personal
        jurisdiction over the satellite carrier for an award of
        statutory damages for any violation that the Commission has
        determined to have been committed by a satellite carrier under
        this subsection. Such action shall not be subject to transfer
        under section 1404(a) of title 28, United States Code. On
        finding that the satellite carrier has committed one or more
        violations of subsection (b), the District Court shall be
        required to award the television broadcast station statutory
        damages of $25,000 per violation, in accordance with paragraph
        (5), and the costs and attorney's fees incurred by the station.
        Such statutory damages shall be awarded only if the television
        broadcast station has filed a binding stipulation with the
        court that such station will donate the full amount in excess
        of $1,000 of any statutory damage award to the United States
        Treasury for public purposes. Notwithstanding any other
        provision of law, a station shall incur no tax liability of any
        kind with respect to any amounts so donated. Discovery may be
        conducted by the parties in any proceeding under this paragraph
        only if and to the extent necessary to resolve a genuinely
        disputed issue of fact concerning one of the defenses under
        paragraph (4). In any such action, the defenses under paragraph
        (4) shall be exclusive, and the burden of proof shall be on the
        satellite carrier with respect to all defenses other than the
        defense under paragraph (4)(B)(i). A judgment under this
        paragraph may be enforced in any manner permissible under
        Federal or State law.
            ``(11) Appeals.--
                    ``(A) In general.--The nonprevailing party before a
                United States district court may appeal a decision
                under this subsection to the United States Court of
                Appeals with jurisdiction over that district court. The
                Court of Appeals shall not issue any stay of the
                effectiveness of any decision granting relief against a
                satellite carrier unless the carrier presents clear and
                convincing evidence that it is highly likely to prevail
                on appeal and only after posting a bond for the full
                amount of any monetary award assessed against it and
                for such further amount as the Court of Appeals may
                believe appropriate.
                    ``(B) Appeal.--If the Commission denies relief in
                response to a complaint filed by a television broadcast
                station under this subsection, the television broadcast
                station filing the complaint may file an appeal with
                the United States Court of Appeals for the District of
                Columbia Circuit.
            ``(12) Sunset.--No complaint or civil action may be filed
        under this subsection after December 31, 2001. This subsection
        shall continue to apply to any complaint or civil action filed
        on or before such date.''.

SEC. 1010. SEVERABILITY.

    If any provision of section 325(b) of the Communications Act of
1934 (47 U.S.C. 325(b)), or the application of that provision to any
person or circumstance, is held by a court of competent jurisdiction to
violate any provision of the Constitution of the United States, then
the other provisions of that section, and the application of that
provision to other persons and circumstances, shall not be affected.

SEC. 1011. TECHNICAL AMENDMENTS.

    (a) Technical Amendments Relating to Cable Systems.--Title 17,
United States Code, is amended as follows:
            (1) Such title is amended by striking ``programing'' each
        place it appears and inserting ``programming''.
            (2) Section 111 is amended by striking ``compulsory'' each
        place it appears and inserting ``statutory''.
            (3) Section 510(b) is amended by striking ``compulsory''
        and inserting ``statutory''.
    (b) Technical Amendments Relating to Performance or Displays Of
Works.--
            (1) Section 111 of title 17, United States Code, is
        amended--
                    (A) in subsection (a), in the matter preceding
                paragraph (1), by striking ``primary transmission
                embodying a performance or display of a work'' and
                inserting ``performance or display of a work embodied
                in a primary transmission'';
                    (B) in subsection (b), in the matter preceding
                paragraph (1), by striking ``primary transmission
                embodying a performance or display of a work'' and
                inserting ``performance or display of a work embodied
                in a primary transmission''; and
                    (C) in subsection (c)--
                            (i) in paragraph (1)--
                                    (I) by inserting ``a performance or
                                display of a work embodied in'' after
                                ``by a cable system of''; and
                                    (II) by striking ``and embodying a
                                performance or display of a work''; and
                            (ii) in paragraphs (3) and (4)--
                                    (I) by striking ``a primary
                                transmission'' and inserting ``a
                                performance or display of a work
                                embodied in a primary transmission'';
                                and
                                    (II) by striking ``and embodying a
                                performance or display of a work''.
            (2) Section 119(a) of title 17, United States Code, is
        amended--
                    (A) in paragraph (1), by striking ``primary
                transmission made by a superstation and embodying a
                performance or display of a work'' and inserting
                ``performance or display of a work embodied in a
                primary transmission made by a superstation'';
                    (B) in paragraph (2)(A), by striking
                ``programming'' and all that follows through ``a work''
                and inserting ``a performance or display of a work
                embodied in a primary transmission made by a network
                station'';
                    (C) in paragraph (4)--
                            (i) by inserting ``a performance or display
                        of a work embodied in'' after ``by a satellite
                        carrier of''; and
                            (ii) by striking ``and embodying a
                        performance or display of a work''; and
                    (D) in paragraph (6)--
                            (i) by inserting ``performance or display
                        of a work embodied in'' after ``by a satellite
                        carrier of''; and
                            (ii) by striking ``and embodying a
                        performance or display of a work''.
            (3) Section 501(e) of title 17, United States Code, is
        amended by striking ``primary transmission embodying the
        performance or display of a work'' and inserting ``performance
        or display of a work embodied in a primary transmission''.
    (c) Conforming Amendment.--Section 119(a)(2)(C) of title 17, United
States Code, is amended in the first sentence by striking
``currently''.
    (d) Work Made for Hire.--Section 101 of title 17, United States
Code, is amended in the definition relating to work for hire in
paragraph (2) by inserting ``as a sound recording,'' after
``audiovisual work''.

SEC. 1012. EFFECTIVE DATES.

    Sections 1001, 1003, 1005, 1007, 1008, 1009, 1010, and 1011 (and
the amendments made by such sections) shall take effect on the date of
the enactment of this Act. The amendments made by sections 1002, 1004,
and 1006 shall be effective as of July 1, 1999.

                TITLE II--RURAL LOCAL TELEVISION SIGNALS

SEC. 2001. SHORT TITLE.

    This title may be cited as the ``Rural Local Broadcast Signal
Act''.

SEC. 2002. LOCAL TELEVISION SERVICE IN UNSERVED AND UNDERSERVED
              MARKETS.

    (a) In General.--Not later than 1 year after the date of the
enactment of this Act, the Federal Communications Commission (``the
Commission'') shall take all actions necessary to make a determination
regarding licenses or other authorizations for facilities that will
utilize, for delivering local broadcast television station signals to
satellite television subscribers in unserved and underserved local
television markets, spectrum otherwise allocated to commercial use.
    (b) Rules.--
            (1) Form of business.--To the extent not inconsistent with
        the Communications Act of 1934 and the Commission's rules, the
        Commission shall permit applicants under subsection (a) to
        engage in partnerships, joint ventures, and similar operating
        arrangements for the purpose of carrying out subsection (a).
            (2) Harmful interference.--The Commission shall ensure that
        no facility licensed or authorized under subsection (a) causes
        harmful interference to the primary users of that spectrum or
        to public safety spectrum use.
            (3) Limitation on commission.--Except as provided in
        paragraphs (1) and (2), the Commission may not restrict any
        entity granted a license or other authorization under
        subsection (a) from using any reasonable compression,
        reformatting, or other technology.
    (c) Report.--Not later than January 1, 2001, the Commission shall
report to the Agriculture, Appropriations, and the Judiciary Committees
of the Senate and the House of Representatives, the Senate Committee on
Commerce, Science, and Transportation, and the House of Representatives
Committee on Commerce, on the extent to which licenses and other
authorizations under subsection (a) have facilitated the delivery of
local signals to satellite television subscribers in unserved and
underserved local television markets. The report shall include--
            (1) an analysis of the extent to which local signals are
        being provided by direct-to-home satellite television providers
        and by other multichannel video program distributors;
            (2) an enumeration of the technical, economic, and other
        impediments each type of multichannel video programming
        distributor has encountered; and
            (3) recommendations for specific measures to facilitate the
        provision of local signals to subscribers in unserved and
        underserved markets by direct-to-home satellite television
        providers and by other distributors of multichannel video
        programming service.

              TITLE III--TRADEMARK CYBERPIRACY PREVENTION

SEC. 3001. SHORT TITLE; REFERENCES.

    (a) Short Title.--This title may be cited as the
``Anticybersquatting Consumer Protection Act''.
    (b) References to the Trademark Act of 1946.--Any reference in this
title to the Trademark Act of 1946 shall be a reference to the Act
entitled ``An Act to provide for the registration and protection of
trademarks used in commerce, to carry out the provisions of certain
international conventions, and for other purposes'', approved July 5,
1946 (15 U.S.C. 1051 et seq.).

SEC. 3002. CYBERPIRACY PREVENTION.

    (a) In General.--Section 43 of the Trademark Act of 1946 (15 U.S.C.
1125) is amended by inserting at the end the following:
    ``(d)(1)(A) A person shall be liable in a civil action by the owner
of a mark, including a personal name which is protected as a mark under
this section, if, without regard to the goods or services of the
parties, that person--
            ``(i) has a bad faith intent to profit from that mark,
        including a personal name which is protected as a mark under
        this section; and
            ``(ii) registers, traffics in, or uses a domain name that--
                    ``(I) in the case of a mark that is distinctive at
                the time of registration of the domain name, is
                identical or confusingly similar to that mark;
                    ``(II) in the case of a famous mark that is famous
                at the time of registration of the domain name, is
                identical or confusingly similar to or dilutive of that
                mark; or
                    ``(III) is a trademark, word, or name protected by
                reason of section 706 of title 18, United States Code,
                or section 220506 of title 36, United States Code.
    ``(B)(i) In determining whether a person has a bad faith intent
described under subparagraph (A), a court may consider factors such as,
but not limited to--
            ``(I) the trademark or other intellectual property rights
        of the person, if any, in the domain name;
            ``(II) the extent to which the domain name consists of the
        legal name of the person or a name that is otherwise commonly
        used to identify that person;
            ``(III) the person's prior use, if any, of the domain name
        in connection with the bona fide offering of any goods or
        services;
            ``(IV) the person's bona fide noncommercial or fair use of
        the mark in a site accessible under the domain name;
            ``(V) the person's intent to divert consumers from the mark
        owner's online location to a site accessible under the domain
        name that could harm the goodwill represented by the mark,
        either for commercial gain or with the intent to tarnish or
        disparage the mark, by creating a likelihood of confusion as to
        the source, sponsorship, affiliation, or endorsement of the
        site;
            ``(VI) the person's offer to transfer, sell, or otherwise
        assign the domain name to the mark owner or any third party for
        financial gain without having used, or having an intent to use,
        the domain name in the bona fide offering of any goods or
        services, or the person's prior conduct indicating a pattern of
        such conduct;
            ``(VII) the person's provision of material and misleading
        false contact information when applying for the registration of
        the domain name, the person's intentional failure to maintain
        accurate contact information, or the person's prior conduct
        indicating a pattern of such conduct;
            ``(VIII) the person's registration or acquisition of
        multiple domain names which the person knows are identical or
        confusingly similar to marks of others that are distinctive at
        the time of registration of such domain names, or dilutive of
        famous marks of others that are famous at the time of
        registration of such domain names, without regard to the goods
        or services of the parties; and
            ``(IX) the extent to which the mark incorporated in the
        person's domain name registration is or is not distinctive and
        famous within the meaning of subsection (c)(1) of section 43.
    ``(ii) Bad faith intent described under subparagraph (A) shall not
be found in any case in which the court determines that the person
believed and had reasonable grounds to believe that the use of the
domain name was a fair use or otherwise lawful.
    ``(C) In any civil action involving the registration, trafficking,
or use of a domain name under this paragraph, a court may order the
forfeiture or cancellation of the domain name or the transfer of the
domain name to the owner of the mark.
    ``(D) A person shall be liable for using a domain name under
subparagraph (A) only if that person is the domain name registrant or
that registrant's authorized licensee.
    ``(E) As used in this paragraph, the term `traffics in' refers to
transactions that include, but are not limited to, sales, purchases,
loans, pledges, licenses, exchanges of currency, and any other transfer
for consideration or receipt in exchange for consideration.
    ``(2)(A) The owner of a mark may file an in rem civil action
against a domain name in the judicial district in which the domain name
registrar, domain name registry, or other domain name authority that
registered or assigned the domain name is located if--
            ``(i) the domain name violates any right of the owner of a
        mark registered in the Patent and Trademark Office, or
        protected under subsection (a) or (c); and
            ``(ii) the court finds that the owner--
                    ``(I) is not able to obtain in personam
                jurisdiction over a person who would have been a
                defendant in a civil action under paragraph (1); or
                    ``(II) through due diligence was not able to find a
                person who would have been a defendant in a civil
                action under paragraph (1) by--
                            ``(aa) sending a notice of the alleged
                        violation and intent to proceed under this
                        paragraph to the registrant of the domain name
                        at the postal and e-mail address provided by
                        the registrant to the registrar; and
                            ``(bb) publishing notice of the action as
                        the court may direct promptly after filing the
                        action.
    ``(B) The actions under subparagraph (A)(ii) shall constitute
service of process.
    ``(C) In an in rem action under this paragraph, a domain name shall
be deemed to have its situs in the judicial district in which--
            ``(i) the domain name registrar, registry, or other domain
        name authority that registered or assigned the domain name is
        located; or
            ``(ii) documents sufficient to establish control and
        authority regarding the disposition of the registration and use
        of the domain name are deposited with the court.
    ``(D)(i) The remedies in an in rem action under this paragraph
shall be limited to a court order for the forfeiture or cancellation of
the domain name or the transfer of the domain name to the owner of the
mark. Upon receipt of written notification of a filed, stamped copy of
a complaint filed by the owner of a mark in a United States district
court under this paragraph, the domain name registrar, domain name
registry, or other domain name authority shall--
            ``(I) expeditiously deposit with the court documents
        sufficient to establish the court's control and authority
        regarding the disposition of the registration and use of the
        domain name to the court; and
            ``(II) not transfer, suspend, or otherwise modify the
        domain name during the pendency of the action, except upon
        order of the court.
    ``(ii) The domain name registrar or registry or other domain name
authority shall not be liable for injunctive or monetary relief under
this paragraph except in the case of bad faith or reckless disregard,
which includes a willful failure to comply with any such court order.
    ``(3) The civil action established under paragraph (1) and the in
rem action established under paragraph (2), and any remedy available
under either such action, shall be in addition to any other civil
action or remedy otherwise applicable.
    ``(4) The in rem jurisdiction established under paragraph (2) shall
be in addition to any other jurisdiction that otherwise exists, whether
in rem or in personam.''.
    (b) Cyberpiracy Protections for Individuals.--
            (1) In general.--
                    (A) Civil liability.--Any person who registers a
                domain name that consists of the name of another living
                person, or a name substantially and confusingly similar
                thereto, without that person's consent, with the
                specific intent to profit from such name by selling the
                domain name for financial gain to that person or any
                third party, shall be liable in a civil action by such
                person.
                    (B) Exception.--A person who in good faith
                registers a domain name consisting of the name of
                another living person, or a name substantially and
                confusingly similar thereto, shall not be liable under
                this paragraph if such name is used in, affiliated
                with, or related to a work of authorship protected
                under title 17, United States Code, including a work
                made for hire as defined in section 101 of title 17,
                United States Code, and if the person registering the
                domain name is the copyright owner or licensee of the
                work, the person intends to sell the domain name in
                conjunction with the lawful exploitation of the work,
                and such registration is not prohibited by a contract
                between the registrant and the named person. The
                exception under this subparagraph shall apply only to a
                civil action brought under paragraph (1) and shall in
                no manner limit the protections afforded under the
                Trademark Act of 1946 (15 U.S.C. 1051 et seq.) or other
                provision of Federal or State law.
            (2) Remedies.--In any civil action brought under paragraph
        (1), a court may award injunctive relief, including the
        forfeiture or cancellation of the domain name or the transfer
        of the domain name to the plaintiff. The court may also, in its
        discretion, award costs and attorneys fees to the prevailing
        party.
            (3) Definition.--In this subsection, the term ``domain
        name'' has the meaning given that term in section 45 of the
        Trademark Act of 1946 (15 U.S.C. 1127).
            (4) Effective date.--This subsection shall apply to domain
        names registered on or after the date of the enactment of this
        Act.

SEC. 3003. DAMAGES AND REMEDIES.

    (a) Remedies in Cases of Domain Name Piracy.--
            (1) Injunctions.--Section 34(a) of the Trademark Act of
        1946 (15 U.S.C. 1116(a)) is amended in the first sentence by
        striking ``(a) or (c)'' and inserting ``(a), (c), or (d)''.
            (2) Damages.--Section 35(a) of the Trademark Act of 1946
        (15 U.S.C. 1117(a)) is amended in the first sentence by
        inserting ``, (c), or (d)'' after ``section 43(a)''.
    (b) Statutory Damages.--Section 35 of the Trademark Act of 1946 (15
U.S.C. 1117) is amended by adding at the end the following:
    ``(d) In a case involving a violation of section 43(d)(1), the
plaintiff may elect, at any time before final judgment is rendered by
the trial court, to recover, instead of actual damages and profits, an
award of statutory damages in the amount of not less than $1,000 and
not more than $100,000 per domain name, as the court considers just.

SEC. 3004. LIMITATION ON LIABILITY.

    Section 32(2) of the Trademark Act of 1946 (15 U.S.C. 1114) is
amended--
            (1) in the matter preceding subparagraph (A) by striking
        ``under section 43(a)'' and inserting ``under section 43(a) or
        (d)''; and
            (2) by redesignating subparagraph (D) as subparagraph (E)
        and inserting after subparagraph (C) the following:
            ``(D)(i)(I) A domain name registrar, a domain name
        registry, or other domain name registration authority that
        takes any action described under clause (ii) affecting a domain
        name shall not be liable for monetary relief or, except as
        provided in subclause (II), for injunctive relief, to any
        person for such action, regardless of whether the domain name
        is finally determined to infringe or dilute the mark.
            ``(II) A domain name registrar, domain name registry, or
        other domain name registration authority described in subclause
        (I) may be subject to injunctive relief only if such registrar,
        registry, or other registration authority has--
                    ``(aa) not expeditiously deposited with a court, in
                which an action has been filed regarding the
                disposition of the domain name, documents sufficient
                for the court to establish the court's control and
                authority regarding the disposition of the registration
                and use of the domain name;
                    ``(bb) transferred, suspended, or otherwise
                modified the domain name during the pendency of the
                action, except upon order of the court; or
                    ``(cc) willfully failed to comply with any such
                court order.
            ``(ii) An action referred to under clause (i)(I) is any
        action of refusing to register, removing from registration,
        transferring, temporarily disabling, or permanently canceling a
        domain name--
                    ``(I) in compliance with a court order under
                section 43(d); or
                    ``(II) in the implementation of a reasonable policy
                by such registrar, registry, or authority prohibiting
                the registration of a domain name that is identical to,
                confusingly similar to, or dilutive of another's mark.
            ``(iii) A domain name registrar, a domain name registry, or
        other domain name registration authority shall not be liable
        for damages under this section for the registration or
        maintenance of a domain name for another absent a showing of
        bad faith intent to profit from such registration or
        maintenance of the domain name.
            ``(iv) If a registrar, registry, or other registration
        authority takes an action described under clause (ii) based on
        a knowing and material misrepresentation by any other person
        that a domain name is identical to, confusingly similar to, or
        dilutive of a mark, the person making the knowing and material
        misrepresentation shall be liable for any damages, including
        costs and attorney's fees, incurred by the domain name
        registrant as a result of such action. The court may also grant
        injunctive relief to the domain name registrant, including the
        reactivation of the domain name or the transfer of the domain
        name to the domain name registrant.
            ``(v) A domain name registrant whose domain name has been
        suspended, disabled, or transferred under a policy described
        under clause (ii)(II) may, upon notice to the mark owner, file
        a civil action to establish that the registration or use of the
        domain name by such registrant is not unlawful under this Act.
        The court may grant injunctive relief to the domain name
        registrant, including the reactivation of the domain name or
        transfer of the domain name to the domain name registrant.''.

SEC. 3005. DEFINITIONS.

    Section 45 of the Trademark Act of 1946 (15 U.S.C. 1127) is amended
by inserting after the undesignated paragraph defining the term
``counterfeit'' the following:
    ``The term `domain name' means any alphanumeric designation which
is registered with or assigned by any domain name registrar, domain
name registry, or other domain name registration authority as part of
an electronic address on the Internet.
    ``The term `Internet' has the meaning given that term in section
230(f)(1) of the Communications Act of 1934 (47 U.S.C. 230(f)(1)).''.

SEC. 3006. STUDY ON ABUSIVE DOMAIN NAME REGISTRATIONS INVOLVING
              PERSONAL NAMES.

    (a) In General.--Not later than 180 days after the date of the
enactment of this Act, the Secretary of Commerce, in consultation with
the Patent and Trademark Office and the Federal Election Commission,
shall conduct a study and report to Congress with recommendations on
guidelines and procedures for resolving disputes involving the
registration or use by a person of a domain name that includes the
personal name of another person, in whole or in part, or a name
confusingly similar thereto, including consideration of and
recommendations for--
            (1) protecting personal names from registration by another
        person as a second level domain name for purposes of selling or
        otherwise transferring such domain name to such other person or
        any third party for financial gain;
            (2) protecting individuals from bad faith uses of their
        personal names as second level domain names by others with
        malicious intent to harm the reputation of the individual or
        the goodwill associated with that individual's name;
            (3) protecting consumers from the registration and use of
        domain names that include personal names in the second level
        domain in manners which are intended or are likely to confuse
        or deceive the public as to the affiliation, connection, or
        association of the domain name registrant, or a site accessible
        under the domain name, with such other person, or as to the
        origin, sponsorship, or approval of the goods, services, or
        commercial activities of the domain name registrant;
            (4) protecting the public from registration of domain names
        that include the personal names of government officials,
        official candidates, and potential official candidates for
        Federal, State, or local political office in the United States,
        and the use of such domain names in a manner that disrupts the
        electoral process or the public's ability to access accurate
        and reliable information regarding such individuals;
            (5) existing remedies, whether under State law or
        otherwise, and the extent to which such remedies are sufficient
        to address the considerations described in paragraphs (1)
        through (4); and
            (6) the guidelines, procedures, and policies of the
        Internet Corporation for Assigned Names and Numbers and the
        extent to which they address the considerations described in
        paragraphs (1) through (4).
    (b) Guidelines and Procedures.--The Secretary of Commerce shall,
under its Memorandum of Understanding with the Internet Corporation for
Assigned Names and Numbers, collaborate to develop guidelines and
procedures for resolving disputes involving the registration or use by
a person of a domain name that includes the personal name of another
person, in whole or in part, or a name confusingly similar thereto.

SEC. 3007. HISTORIC PRESERVATION.

    Section 101(a)(1)(A) of the National Historic Preservation Act (16
U.S.C. 470a(a)(1)(A)) is amended by adding at the end the following:
``Notwithstanding section 43(c) of the Act entitled `An Act to provide
for the registration and protection of trademarks used in commerce, to
carry out the provisions of certain international conventions, and for
other purposes', approved July 5, 1946 (commonly known as the
`Trademark Act of 1946' (15 U.S.C. 1125(c))), buildings and structures
on or eligible for inclusion on the National Register of Historic
Places (either individually or as part of a historic district), or
designated as an individual landmark or as a contributing building in a
historic district by a unit of State or local government, may retain
the name historically associated with the building or structure.''.

SEC. 3008. SAVINGS CLAUSE.

    Nothing in this title shall affect any defense available to a
defendant under the Trademark Act of 1946 (including any defense under
section 43(c)(4) of such Act or relating to fair use) or a person's
right of free speech or expression under the first amendment of the
United States Constitution.

SEC. 3009. TECHNICAL AND CONFORMING AMENDMENTS.

    Chapter 85 of title 28, United States Code, is amended as follows:
            (1) Section 1338 of title 28, United States Codes, is
        amended--
                    (A) in the section heading by striking ``trade-
                marks'' and inserting ``trademarks'';
                    (B) in subsection (a) by striking ``trade-marks''
                and inserting ``trademarks''; and
                    (C) in subsection (b) by striking ``trade-mark''
                and inserting ``trademark''.
            (2) The item relating to section 1338 in the table of
        sections for chapter 85 of title 28, United States Code, is
        amended by striking ``trade-marks'' and inserting
        ``trademarks''.

SEC. 3010. EFFECTIVE DATE.

    Sections 3002(a), 3003, 3004, 3005, and 3008 of this title shall
apply to all domain names registered before, on, or after the date of
the enactment of this Act, except that damages under subsection (a) or
(d) of section 35 of the Trademark Act of 1946 (15 U.S.C. 1117), as
amended by section 3003 of this title, shall not be available with
respect to the registration, trafficking, or use of a domain name that
occurs before the date of the enactment of this Act.

                     TITLE IV--INVENTOR PROTECTION

SEC. 4001. SHORT TITLE.

    This title may be cited as the ``American Inventors Protection Act
of 1999''.

                     Subtitle A--Inventors' Rights

SEC. 4101. SHORT TITLE.

    This subtitle may be cited as the ``Inventors' Rights Act of
1999''.

SEC. 4102. INTEGRITY IN INVENTION PROMOTION SERVICES.

    (a) In General.--Chapter 29 of title 35, United States Code, is
amended by adding at the end the following new section:
``Sec. 297. Improper and deceptive invention promotion
    ``(a) In General.--An invention promoter shall have a duty to
disclose the following information to a customer in writing, prior to
entering into a contract for invention promotion services:
            ``(1) the total number of inventions evaluated by the
        invention promoter for commercial potential in the past 5
        years, as well as the number of those inventions that received
        positive evaluations, and the number of those inventions that
        received negative evaluations;
            ``(2) the total number of customers who have contracted
        with the invention promoter in the past 5 years, not including
        customers who have purchased trade show services, research,
        advertising, or other nonmarketing services from the invention
        promoter, or who have defaulted in their payment to the
        invention promoter;
            ``(3) the total number of customers known by the invention
        promoter to have received a net financial profit as a direct
        result of the invention promotion services provided by such
        invention promoter;
            ``(4) the total number of customers known by the invention
        promoter to have received license agreements for their
        inventions as a direct result of the invention promotion
        services provided by such invention promoter; and
            ``(5) the names and addresses of all previous invention
        promotion companies with which the invention promoter or its
        officers have collectively or individually been affiliated in
        the previous 10 years.
    ``(b) Civil Action.--(1) Any customer who enters into a contract
with an invention promoter and who is found by a court to have been
injured by any material false or fraudulent statement or
representation, or any omission of material fact, by that invention
promoter (or any agent, employee, director, officer, partner, or
independent contractor of such invention promoter), or by the failure
of that invention promoter to disclose such information as required
under subsection (a), may recover in a civil action against the
invention promoter (or the officers, directors, or partners of such
invention promoter), in addition to reasonable costs and attorneys'
fees--
            ``(A) the amount of actual damages incurred by the
        customer; or
            ``(B) at the election of the customer at any time before
        final judgment is rendered, statutory damages in a sum of not
        more than $5,000, as the court considers just.
    ``(2) Notwithstanding paragraph (1), in a case where the customer
sustains the burden of proof, and the court finds, that the invention
promoter intentionally misrepresented or omitted a material fact to
such customer, or willfully failed to disclose such information as
required under subsection (a), with the purpose of deceiving that
customer, the court may increase damages to not more than three times
the amount awarded, taking into account past complaints made against
the invention promoter that resulted in regulatory sanctions or other
corrective actions based on those records compiled by the Commissioner
of Patents under subsection (d).
    ``(c) Definitions.--For purposes of this section--
            ``(1) a `contract for invention promotion services' means a
        contract by which an invention promoter undertakes invention
        promotion services for a customer;
            ``(2) a `customer' is any individual who enters into a
        contract with an invention promoter for invention promotion
        services;
            ``(3) the term `invention promoter' means any person, firm,
        partnership, corporation, or other entity who offers to perform
        or performs invention promotion services for, or on behalf of,
        a customer, and who holds itself out through advertising in any
        mass media as providing such services, but does not include--
                    ``(A) any department or agency of the Federal
                Government or of a State or local government;
                    ``(B) any nonprofit, charitable, scientific, or
                educational organization, qualified under applicable
                State law or described under section 170(b)(1)(A) of
                the Internal Revenue Code of 1986;
                    ``(C) any person or entity involved in the
                evaluation to determine commercial potential of, or
                offering to license or sell, a utility patent or a
                previously filed nonprovisional utility patent
                application;
                    ``(D) any party participating in a transaction
                involving the sale of the stock or assets of a
                business; or
                    ``(E) any party who directly engages in the
                business of retail sales of products or the
                distribution of products; and
            ``(4) the term `invention promotion services' means the
        procurement or attempted procurement for a customer of a firm,
        corporation, or other entity to develop and market products or
        services that include the invention of the customer.
    ``(d) Records of Complaints.--
            ``(1) Release of complaints.--The Commissioner of Patents
        shall make all complaints received by the Patent and Trademark
        Office involving invention promoters publicly available,
        together with any response of the invention promoters. The
        Commissioner of Patents shall notify the invention promoter of
        a complaint and provide a reasonable opportunity to reply prior
        to making such complaint publicly available.
            ``(2) Request for complaints.--The Commissioner of Patents
        may request complaints relating to invention promotion services
        from any Federal or State agency and include such complaints in
        the records maintained under paragraph (1), together with any
        response of the invention promoters.''.
    (b) Conforming Amendment.--The table of sections at the beginning
of chapter 29 of title 35, United States Code, is amended by adding at
the end the following new item:

``297. Improper and deceptive invention promotion.''.

SEC. 4103. EFFECTIVE DATE.

    This subtitle and the amendments made by this subtitle shall take
effect 60 days after the date of the enactment of this Act.

             Subtitle B--Patent and Trademark Fee Fairness

SEC. 4201. SHORT TITLE.

    This subtitle may be cited as the ``Patent and Trademark Fee
Fairness Act of 1999''.

SEC. 4202. ADJUSTMENT OF PATENT FEES.

    (a) Original Filing Fee.--Section 41(a)(1)(A) of title 35, United
States Code, relating to the fee for filing an original patent
application, is amended by striking ``$760'' and inserting ``$690''.
    (b) Reissue Fee.--Section 41(a)(4)(A) of title 35, United States
Code, relating to the fee for filing for a reissue of a patent, is
amended by striking ``$760'' and inserting ``$690''.
    (c) National Fee for Certain International Applications.--Section
41(a)(10) of title 35, United States Code, relating to the national fee
for certain international applications, is amended by striking ``$760''
and inserting ``$690''.
    (d) Maintenance Fees.--Section 41(b)(1) of title 35, United States
Code, relating to certain maintenance fees, is amended by striking
``$940'' and inserting ``$830''.

SEC. 4203. ADJUSTMENT OF TRADEMARK FEES.

    Notwithstanding the second sentence of section 31(a) of the
Trademark Act of 1946 (15 U.S.C. 111(a)), the Under Secretary of
Commerce for Intellectual Property and Director of the United States
Patent and Trademark Office is authorized in fiscal year 2000 to adjust
trademark fees without regard to fluctuations in the Consumer Price
Index during the preceding 12 months.

SEC. 4204. STUDY ON ALTERNATIVE FEE STRUCTURES.

    The Under Secretary of Commerce for Intellectual Property and
Director of the United States Patent and Trademark Office shall conduct
a study of alternative fee structures that could be adopted by the
United States Patent and Trademark Office to encourage maximum
participation by the inventor community in the United States. The
Director shall submit such study to the Committees on the Judiciary of
the House of Representatives and the Senate not later than 1 year after
the date of the enactment of this Act.

SEC. 4205. PATENT AND TRADEMARK OFFICE FUNDING.

    Section 42(c) of title 35, United States Code, is amended in the
second sentence--
            (1) by striking ``Fees available'' and inserting ``All fees
        available''; and
            (2) by striking ``may'' and inserting ``shall''.

SEC. 4206. EFFECTIVE DATE.

    (a) In General.--Except as provided in subsection (b), the
amendments made by this subtitle shall take effect on the date of the
enactment of this Act.
    (b) Section 4202.--The amendments made by section 4202 of this
subtitle shall take effect 30 days after the date of the enactment of
this Act.

                   Subtitle C--First Inventor Defense

SEC. 4301. SHORT TITLE.

    This subtitle may be cited as the ``First Inventor Defense Act of
1999''.

SEC. 4302. DEFENSE TO PATENT INFRINGEMENT BASED ON EARLIER INVENTOR.

    (a) Defense.--Chapter 28 of title 35, United States Code, is
amended by adding at the end the following new section:
``Sec. 273. Defense to infringement based on earlier inventor
    ``(a) Definitions.--For purposes of this section--
            ``(1) the terms `commercially used' and `commercial use'
        mean use of a method in the United States, so long as such use
        is in connection with an internal commercial use or an actual
        arm's-length sale or other arm's-length commercial transfer of
        a useful end result, whether or not the subject matter at issue
        is accessible to or otherwise known to the public, except that
        the subject matter for which commercial marketing or use is
        subject to a premarketing regulatory review period during which
        the safety or efficacy of the subject matter is established,
        including any period specified in section 156(g), shall be
        deemed `commercially used' and in `commercial use' during such
        regulatory review period;
            ``(2) in the case of activities performed by a nonprofit
        research laboratory, or nonprofit entity such as a university,
        research center, or hospital, a use for which the public is the
        intended beneficiary shall be considered to be a use described
        in paragraph (1), except that the use--
                    ``(A) may be asserted as a defense under this
                section only for continued use by and in the laboratory
                or nonprofit entity; and
                    ``(B) may not be asserted as a defense with respect
                to any subsequent commercialization or use outside such
                laboratory or nonprofit entity;
            ``(3) the term `method' means a method of doing or
        conducting business; and
            ``(4) the `effective filing date' of a patent is the
        earlier of the actual filing date of the application for the
        patent or the filing date of any earlier United States,
        foreign, or international application to which the subject
        matter at issue is entitled under section 119, 120, or 365 of
        this title.
    ``(b) Defense to Infringement.--
            ``(1) In general.--It shall be a defense to an action for
        infringement under section 271 of this title with respect to
        any subject matter that would otherwise infringe one or more
        claims for a method in the patent being asserted against a
        person, if such person had, acting in good faith, actually
        reduced the subject matter to practice at least 1 year before
        the effective filing date of such patent, and commercially used
        the subject matter before the effective filing date of such
        patent.
            ``(2) Exhaustion of right.--The sale or other disposition
        of a useful end product produced by a patented method, by a
        person entitled to assert a defense under this section with
        respect to that useful end result shall exhaust the patent
        owner's rights under the patent to the extent such rights would
        have been exhausted had such sale or other disposition been
        made by the patent owner.
            ``(3) Limitations and qualifications of defense.--The
        defense to infringement under this section is subject to the
        following:
                    ``(A) Patent.--A person may not assert the defense
                under this section unless the invention for which the
                defense is asserted is for a method.
                    ``(B) Derivation.--A person may not assert the
                defense under this section if the subject matter on
                which the defense is based was derived from the
                patentee or persons in privity with the patentee.
                    ``(C) Not a general license.--The defense asserted
                by a person under this section is not a general license
                under all claims of the patent at issue, but extends
                only to the specific subject matter claimed in the
                patent with respect to which the person can assert a
                defense under this chapter, except that the defense
                shall also extend to variations in the quantity or
                volume of use of the claimed subject matter, and to
                improvements in the claimed subject matter that do not
                infringe additional specifically claimed subject matter
                of the patent.
            ``(4) Burden of proof.--A person asserting the defense
        under this section shall have the burden of establishing the
        defense by clear and convincing evidence.
            ``(5) Abandonment of use.--A person who has abandoned
        commercial use of subject matter may not rely on activities
        performed before the date of such abandonment in establishing a
        defense under this section with respect to actions taken after
        the date of such abandonment.
            ``(6) Personal defense.--The defense under this section may
        be asserted only by the person who performed the acts necessary
        to establish the defense and, except for any transfer to the
        patent owner, the right to assert the defense shall not be
        licensed or assigned or transferred to another person except as
        an ancillary and subordinate part of a good faith assignment or
        transfer for other reasons of the entire enterprise or line of
        business to which the defense relates.
            ``(7) Limitation on sites.--A defense under this section,
        when acquired as part of a good faith assignment or transfer of
        an entire enterprise or line of business to which the defense
        relates, may only be asserted for uses at sites where the
        subject matter that would otherwise infringe one or more of the
        claims is in use before the later of the effective filing date
        of the patent or the date of the assignment or transfer of such
        enterprise or line of business.
            ``(8) Unsuccessful assertion of defense.--If the defense
        under this section is pleaded by a person who is found to
        infringe the patent and who subsequently fails to demonstrate a
        reasonable basis for asserting the defense, the court shall
        find the case exceptional for the purpose of awarding attorney
        fees under section 285 of this title.
            ``(9) Invalidity.--A patent shall not be deemed to be
        invalid under section 102 or 103 of this title solely because a
        defense is raised or established under this section.''.
    (b) Conforming Amendment.--The table of sections at the beginning
of chapter 28 of title 35, United States Code, is amended by adding at
the end the following new item:

``273. Defense to infringement based on earlier inventor.''.

SEC. 4303. EFFECTIVE DATE AND APPLICABILITY.

    This subtitle and the amendments made by this subtitle shall take
effect on the date of the enactment of this Act, but shall not apply to
any action for infringement that is pending on such date of enactment
or with respect to any subject matter for which an adjudication of
infringement, including a consent judgment, has been made before such
date of enactment.

                   Subtitle D--Patent Term Guarantee

SEC. 4401. SHORT TITLE.

    This subtitle may be cited as the ``Patent Term Guarantee Act of
1999''.

SEC. 4402. PATENT TERM GUARANTEE AUTHORITY.

    (a) Adjustment of Patent Term.--Section 154(b) of title 35, United
States Code, is amended to read as follows:
    ``(b) Adjustment of Patent Term.--
            ``(1) Patent term guarantees.--
                    ``(A) Guarantee of prompt patent and trademark
                office responses.--Subject to the limitations under
                paragraph (2), if the issue of an original patent is
                delayed due to the failure of the Patent and Trademark
                Office to--
                            ``(i) provide at least one of the
                        notifications under section 132 of this title
                        or a notice of allowance under section 151 of
                        this title not later than 14 months after--
                                    ``(I) the date on which an
                                application was filed under section
                                111(a) of this title; or
                                    ``(II) the date on which an
                                international application fulfilled the
                                requirements of section 371 of this
                                title;
                            ``(ii) respond to a reply under section
                        132, or to an appeal taken under section 134,
                        within 4 months after the date on which the
                        reply was filed or the appeal was taken;
                            ``(iii) act on an application within 4
                        months after the date of a decision by the
                        Board of Patent Appeals and Interferences under
                        section 134 or 135 or a decision by a Federal
                        court under section 141, 145, or 146 in a case
                        in which allowable claims remain in the
                        application; or
                            ``(iv) issue a patent within 4 months after
                        the date on which the issue fee was paid under
                        section 151 and all outstanding requirements
                        were satisfied,
                the term of the patent shall be extended 1 day for each
                day after the end of the period specified in clause
                (i), (ii), (iii), or (iv), as the case may be, until
                the action described in such clause is taken.
                    ``(B) Guarantee of no more than 3-year application
                pendency.--Subject to the limitations under paragraph
                (2), if the issue of an original patent is delayed due
                to the failure of the United States Patent and
                Trademark Office to issue a patent within 3 years after
                the actual filing date of the application in the United
                States, not including--
                            ``(i) any time consumed by continued
                        examination of the application requested by the
                        applicant under section 132(b);
                            ``(ii) any time consumed by a proceeding
                        under section 135(a), any time consumed by the
                        imposition of an order under section 181, or
                        any time consumed by appellate review by the
                        Board of Patent Appeals and Interferences or by
                        a Federal court; or
                            ``(iii) any delay in the processing of the
                        application by the United States Patent and
                        Trademark Office requested by the applicant
                        except as permitted by paragraph (3)(C),
                the term of the patent shall be extended 1 day for each
                day after the end of that 3-year period until the
                patent is issued.
                    ``(C) Guarantee or adjustments for delays due to
                interferences, secrecy orders, and appeals.--Subject to
                the limitations under paragraph (2), if the issue of an
                original patent is delayed due to--
                            ``(i) a proceeding under section 135(a);
                            ``(ii) the imposition of an order under
                        section 181; or
                            ``(iii) appellate review by the Board of
                        Patent Appeals and Interferences or by a
                        Federal court in a case in which the patent was
                        issued under a decision in the review reversing
                        an adverse determination of patentability,
                the term of the patent shall be extended 1 day for each
                day of the pendency of the proceeding, order, or
                review, as the case may be.
            ``(2) Limitations.--
                    ``(A) In general.--To the extent that periods of
                delay attributable to grounds specified in paragraph
                (1) overlap, the period of any adjustment granted under
                this subsection shall not exceed the actual number of
                days the issuance of the patent was delayed.
                    ``(B) Disclaimed term.--No patent the term of which
                has been disclaimed beyond a specified date may be
                adjusted under this section beyond the expiration date
                specified in the disclaimer.
                    ``(C) Reduction of period of adjustment.--
                            ``(i) The period of adjustment of the term
                        of a patent under paragraph (1) shall be
                        reduced by a period equal to the period of time
                        during which the applicant failed to engage in
                        reasonable efforts to conclude prosecution of
                        the application.
                            ``(ii) With respect to adjustments to
                        patent term made under the authority of
                        paragraph (1)(B), an applicant shall be deemed
                        to have failed to engage in reasonable efforts
                        to conclude processing or examination of an
                        application for the cumulative total of any
                        periods of time in excess of 3 months that are
                        taken to respond to a notice from the Office
                        making any rejection, objection, argument, or
                        other request, measuring such 3-month period
                        from the date the notice was given or mailed to
                        the applicant.
                            ``(iii) The Director shall prescribe
                        regulations establishing the circumstances that
                        constitute a failure of an applicant to engage
                        in reasonable efforts to conclude processing or
                        examination of an application.
            ``(3) Procedures for patent term adjustment
        determination.--
                    ``(A) The Director shall prescribe regulations
                establishing procedures for the application for and
                determination of patent term adjustments under this
                subsection.
                    ``(B) Under the procedures established under
                subparagraph (A), the Director shall--
                            ``(i) make a determination of the period of
                        any patent term adjustment under this
                        subsection, and shall transmit a notice of that
                        determination with the written notice of
                        allowance of the application under section 151;
                        and
                            ``(ii) provide the applicant one
                        opportunity to request reconsideration of any
                        patent term adjustment determination made by
                        the Director.
                    ``(C) The Director shall reinstate all or part of
                the cumulative period of time of an adjustment under
                paragraph (2)(C) if the applicant, prior to the
                issuance of the patent, makes a showing that, in spite
                of all due care, the applicant was unable to respond
                within the 3-month period, but in no case shall more
                than three additional months for each such response
                beyond the original 3-month period be reinstated.
                    ``(D) The Director shall proceed to grant the
                patent after completion of the Director's determination
                of a patent term adjustment under the procedures
                established under this subsection, notwithstanding any
                appeal taken by the applicant of such determination.
            ``(4) Appeal of patent term adjustment determination.--
                    ``(A) An applicant dissatisfied with a
                determination made by the Director under paragraph (3)
                shall have remedy by a civil action against the
                Director filed in the United States District Court for
                the District of Columbia within 180 days after the
                grant of the patent. Chapter 7 of title 5, United
                States Code, shall apply to such action. Any final
                judgment resulting in a change to the period of
                adjustment of the patent term shall be served on the
                Director, and the Director shall thereafter alter the
                term of the patent to reflect such change.
                    ``(B) The determination of a patent term adjustment
                under this subsection shall not be subject to appeal or
                challenge by a third party prior to the grant of the
                patent.''.
    (b) Conforming Amendments.--
            (1) Section 282 of title 35, United States Code, is amended
        in the fourth paragraph by striking ``156 of this title'' and
        inserting ``154(b) or 156 of this title''.
            (2) Section 1295(a)(4)(C) of title 28, United States Code,
        is amended by striking ``145 or 146'' and inserting ``145, 146,
        or 154(b)''.

SEC. 4403. CONTINUED EXAMINATION OF PATENT APPLICATIONS.

    Section 132 of title 35, United States Code, is amended--
            (1) in the first sentence by striking ``Whenever'' and
        inserting ``(a) Whenever''; and
            (2) by adding at the end the following:
    ``(b) The Director shall prescribe regulations to provide for the
continued examination of applications for patent at the request of the
applicant. The Director may establish appropriate fees for such
continued examination and shall provide a 50 percent reduction in such
fees for small entities that qualify for reduced fees under section
41(h)(1) of this title.''.

SEC. 4404. TECHNICAL CLARIFICATION.

    Section 156(a) of title 35, United States Code, is amended in the
matter preceding paragraph (1) by inserting ``, which shall include any
patent term adjustment granted under section 154(b),'' after ``the
original expiration date of the patent''.

SEC. 4405. EFFECTIVE DATE.

    (a) Amendments Made by Sections 4402 and 4404.--The amendments made
by sections 4402 and 4404 shall take effect on the date that is 6
months after the date of the enactment of this Act and, except for a
design patent application filed under chapter 16 of title 35, United
States Code, shall apply to any application filed on or after the date
that is 6 months after the date of the enactment of this Act.
    (b) Amendments Made by Section 4403.--The amendments made by
section 4403--
            (1) shall take effect on the date that is 6 months after
        the date of the enactment of this Act, and shall apply to all
        applications filed under section 111(a) of title 35, United
        States Code, on or after June 8, 1995, and all applications
        complying with section 371 of title 35, United States Code,
        that resulted from international applications filed on or after
        June 8, 1995; and
            (2) do not apply to applications for design patents under
        chapter 16 of title 35, United States Code.

   Subtitle E--Domestic Publication of Patent Applications Published
                                 Abroad

SEC. 4501. SHORT TITLE.

    This subtitle may be cited as the ``Domestic Publication of Foreign
Filed Patent Applications Act of 1999''.

SEC. 4502. PUBLICATION.

    (a) Publication.--Section 122 of title 35, United States Code, is
amended to read as follows:
``Sec. 122. Confidential status of applications; publication of patent
              applications
    ``(a) Confidentiality.--Except as provided in subsection (b),
applications for patents shall be kept in confidence by the Patent and
Trademark Office and no information concerning the same given without
authority of the applicant or owner unless necessary to carry out the
provisions of an Act of Congress or in such special circumstances as
may be determined by the Director.
    ``(b) Publication.--
            ``(1) In general.--(A) Subject to paragraph (2), each
        application for a patent shall be published, in accordance with
        procedures determined by the Director, promptly after the
        expiration of a period of 18 months from the earliest filing
        date for which a benefit is sought under this title. At the
        request of the applicant, an application may be published
        earlier than the end of such 18-month period.
            ``(B) No information concerning published patent
        applications shall be made available to the public except as
        the Director determines.
            ``(C) Notwithstanding any other provision of law, a
        determination by the Director to release or not to release
        information concerning a published patent application shall be
        final and nonreviewable.
            ``(2) Exceptions.--(A) An application shall not be
        published if that application is--
                    ``(i) no longer pending;
                    ``(ii) subject to a secrecy order under section 181
                of this title;
                    ``(iii) a provisional application filed under
                section 111(b) of this title; or
                    ``(iv) an application for a design patent filed
                under chapter 16 of this title.
            ``(B)(i) If an applicant makes a request upon filing,
        certifying that the invention disclosed in the application has
        not and will not be the subject of an application filed in
        another country, or under a multilateral international
        agreement, that requires publication of applications 18 months
        after filing, the application shall not be published as
        provided in paragraph (1).
            ``(ii) An applicant may rescind a request made under clause
        (i) at any time.
            ``(iii) An applicant who has made a request under clause
        (i) but who subsequently files, in a foreign country or under a
        multilateral international agreement specified in clause (i),
        an application directed to the invention disclosed in the
        application filed in the Patent and Trademark Office, shall
        notify the Director of such filing not later than 45 days after
        the date of the filing of such foreign or international
        application. A failure of the applicant to provide such notice
        within the prescribed period shall result in the application
        being regarded as abandoned, unless it is shown to the
        satisfaction of the Director that the delay in submitting the
        notice was unintentional.
            ``(iv) If an applicant rescinds a request made under clause
        (i) or notifies the Director that an application was filed in a
        foreign country or under a multilateral international agreement
        specified in clause (i), the application shall be published in
        accordance with the provisions of paragraph (1) on or as soon
        as is practical after the date that is specified in clause (i).
            ``(v) If an applicant has filed applications in one or more
        foreign countries, directly or through a multilateral
        international agreement, and such foreign filed applications
        corresponding to an application filed in the Patent and
        Trademark Office or the description of the invention in such
        foreign filed applications is less extensive than the
        application or description of the invention in the application
        filed in the Patent and Trademark Office, the applicant may
        submit a redacted copy of the application filed in the Patent
        and Trademark Office eliminating any part or description of the
        invention in such application that is not also contained in any
        of the corresponding applications filed in a foreign country.
        The Director may only publish the redacted copy of the
        application unless the redacted copy of the application is not
        received within 16 months after the earliest effective filing
        date for which a benefit is sought under this title. The
        provisions of section 154(d) shall not apply to a claim if the
        description of the invention published in the redacted
        application filed under this clause with respect to the claim
        does not enable a person skilled in the art to make and use the
        subject matter of the claim.
    ``(c) Protest and Pre-Issuance Opposition.--The Director shall
establish appropriate procedures to ensure that no protest or other
form of pre-issuance opposition to the grant of a patent on an
application may be initiated after publication of the application
without the express written consent of the applicant.
    ``(d) National Security.--No application for patent shall be
published under subsection (b)(1) if the publication or disclosure of
such invention would be detrimental to the national security. The
Director shall establish appropriate procedures to ensure that such
applications are promptly identified and the secrecy of such inventions
is maintained in accordance with chapter 17 of this title.''.
    (b) Study.--
            (1) In general.--The Comptroller General shall conduct a 3-
        year study of the applicants who file only in the United States
        on or after the effective date of this subtitle and shall
        provide the results of such study to the Judiciary Committees
        of the House of Representatives and the Senate.
            (2) Contents.--The study conducted under paragraph (1)
        shall--
                    (A) consider the number of such applicants in
                relation to the number of applicants who file in the
                United States and outside of the United States;
                    (B) examine how many domestic-only filers request
                at the time of filing not to be published;
                    (C) examine how many such filers rescind that
                request or later choose to file abroad;
                    (D) examine the status of the entity seeking an
                application and any correlation that may exist between
                such status and the publication of patent applications;
                and
                    (E) examine the abandonment/issuance ratios and
                length of application pendency before patent issuance
                or abandonment for published versus unpublished
                applications.

SEC. 4503. TIME FOR CLAIMING BENEFIT OF EARLIER FILING DATE.

    (a) In a Foreign Country.--Section 119(b) of title 35, United
States Code, is amended to read as follows:
    ``(b)(1) No application for patent shall be entitled to this right
of priority unless a claim is filed in the Patent and Trademark Office,
identifying the foreign application by specifying the application
number on that foreign application, the intellectual property authority
or country in or for which the application was filed, and the date of
filing the application, at such time during the pendency of the
application as required by the Director.
    ``(2) The Director may consider the failure of the applicant to
file a timely claim for priority as a waiver of any such claim. The
Director may establish procedures, including the payment of a
surcharge, to accept an unintentionally delayed claim under this
section.
    ``(3) The Director may require a certified copy of the original
foreign application, specification, and drawings upon which it is
based, a translation if not in the English language, and such other
information as the Director considers necessary. Any such certification
shall be made by the foreign intellectual property authority in which
the foreign application was filed and show the date of the application
and of the filing of the specification and other papers.''.
    (b) In the United States.--
            (1) In general.--Section 120 of title 35, United States
        Code, is amended by adding at the end the following: ``No
        application shall be entitled to the benefit of an earlier
        filed application under this section unless an amendment
        containing the specific reference to the earlier filed
        application is submitted at such time during the pendency of
        the application as required by the Director. The Director may
        consider the failure to submit such an amendment within that
        time period as a waiver of any benefit under this section. The
        Director may establish procedures, including the payment of a
        surcharge, to accept an unintentionally delayed submission of
        an amendment under this section.''.
            (2) Right of priority.--Section 119(e)(1) of title 35,
        United States Code, is amended by adding at the end the
        following: ``No application shall be entitled to the benefit of
        an earlier filed provisional application under this subsection
        unless an amendment containing the specific reference to the
        earlier filed provisional application is submitted at such time
        during the pendency of the application as required by the
        Director. The Director may consider the failure to submit such
        an amendment within that time period as a waiver of any benefit
        under this subsection. The Director may establish procedures,
        including the payment of a surcharge, to accept an
        unintentionally delayed submission of an amendment under this
        subsection during the pendency of the application.''.

SEC. 4504. PROVISIONAL RIGHTS.

    Section 154 of title 35, United States Code, is amended--
            (1) in the section caption by inserting ``; provisional
        rights'' after ``patent''; and
            (2) by adding at the end the following new subsection:
    ``(d) Provisional Rights.--
            ``(1) In general.--In addition to other rights provided by
        this section, a patent shall include the right to obtain a
        reasonable royalty from any person who, during the period
        beginning on the date of publication of the application for
        such patent under section 122(b), or in the case of an
        international application filed under the treaty defined in
        section 351(a) designating the United States under Article
        21(2)(a) of such treaty, the date of publication of the
        application, and ending on the date the patent is issued--
                    ``(A)(i) makes, uses, offers for sale, or sells in
                the United States the invention as claimed in the
                published patent application or imports such an
                invention into the United States; or
                    ``(ii) if the invention as claimed in the published
                patent application is a process, uses, offers for sale,
                or sells in the United States or imports into the
                United States products made by that process as claimed
                in the published patent application; and
                    ``(B) had actual notice of the published patent
                application and, in a case in which the right arising
                under this paragraph is based upon an international
                application designating the United States that is
                published in a language other than English, had a
                translation of the international application into the
                English language.
            ``(2) Right based on substantially identical inventions.--
        The right under paragraph (1) to obtain a reasonable royalty
        shall not be available under this subsection unless the
        invention as claimed in the patent is substantially identical
        to the invention as claimed in the published patent
        application.
            ``(3) Time limitation on obtaining a reasonable royalty.--
        The right under paragraph (1) to obtain a reasonable royalty
        shall be available only in an action brought not later than 6
        years after the patent is issued. The right under paragraph (1)
        to obtain a reasonable royalty shall not be affected by the
        duration of the period described in paragraph (1).
            ``(4) Requirements for international applications.--
                    ``(A) Effective date.--The right under paragraph
                (1) to obtain a reasonable royalty based upon the
                publication under the treaty defined in section 351(a)
                of an international application designating the United
                States shall commence on the date on which the Patent
                and Trademark Office receives a copy of the publication
                under the treaty of the international application, or,
                if the publication under the treaty of the
                international application is in a language other than
                English, on the date on which the Patent and Trademark
                Office receives a translation of the international
                application in the English language.
                    ``(B) Copies.--The Director may require the
                applicant to provide a copy of the international
                application and a translation thereof.''.

SEC. 4505. PRIOR ART EFFECT OF PUBLISHED APPLICATIONS.

    Section 102(e) of title 35, United States Code, is amended to read
as follows:
    ``(e) The invention was described in--
            ``(1) an application for patent, published under section
        122(b), by another filed in the United States before the
        invention by the applicant for patent, except that an
        international application filed under the treaty defined in
        section 351(a) shall have the effect under this subsection of a
        national application published under section 122(b) only if the
        international application designating the United States was
        published under Article 21(2)(a) of such treaty in the English
        language; or
            ``(2) a patent granted on an application for patent by
        another filed in the United States before the invention by the
        applicant for patent, except that a patent shall not be deemed
        filed in the United States for the purposes of this subsection
        based on the filing of an international application filed under
        the treaty defined in section 351(a); or''.

SEC. 4506. COST RECOVERY FOR PUBLICATION.

    The Under Secretary of Commerce for Intellectual Property and
Director of the United States Patent and Trademark Office shall recover
the cost of early publication required by the amendment made by section
4502 by charging a separate publication fee after notice of allowance
is given under section 151 of title 35, United States Code.

SEC. 4507. CONFORMING AMENDMENTS.

    The following provisions of title 35, United States Code, are
amended:
            (1) Section 11 is amended in paragraph 1 of subsection (a)
        by inserting ``and published applications for patents'' after
        ``Patents''.
            (2) Section 12 is amended--
                    (A) in the section caption by inserting ``and
                applications'' after ``patents''; and
                    (B) by inserting ``and published applications for
                patents'' after ``patents''.
            (3) Section 13 is amended--
                    (A) in the section caption by inserting ``and
                applications'' after ``patents''; and
                    (B) by inserting ``and published applications for
                patents'' after ``patents''.
            (4) The items relating to sections 12 and 13 in the table
        of sections for chapter 1 are each amended by inserting ``and
        applications'' after ``patents''.
            (5) The item relating to section 122 in the table of
        sections for chapter 11 is amended by inserting ``; publication
        of patent applications'' after ``applications''.
            (6) The item relating to section 154 in the table of
        sections for chapter 14 is amended by inserting ``; provisional
        rights'' after ``patent''.
            (7) Section 181 is amended--
                    (A) in the first undesignated paragraph--
                            (i) by inserting ``by the publication of an
                        application or'' after ``disclosure''; and
                            (ii) by inserting ``the publication of the
                        application or'' after ``withhold'';
                    (B) in the second undesignated paragraph by
                inserting ``by the publication of an application or''
                after ``disclosure of an invention'';
                    (C) in the third undesignated paragraph--
                            (i) by inserting ``by the publication of
                        the application or'' after ``disclosure of the
                        invention''; and
                            (ii) by inserting ``the publication of the
                        application or'' after ``withhold''; and
                    (D) in the fourth undesignated paragraph by
                inserting ``the publication of an application or''
                after ``and'' in the first sentence.
            (8) Section 252 is amended in the first undesignated
        paragraph by inserting ``substantially'' before ``identical''
        each place it appears.
            (9) Section 284 is amended by adding at the end of the
        second undesignated paragraph the following: ``Increased
        damages under this paragraph shall not apply to provisional
        rights under section 154(d) of this title.''.
            (10) Section 374 is amended to read as follows:
``Sec. 374. Publication of international application
    ``The publication under the treaty defined in section 351(a) of
this title, of an international application designating the United
States shall confer the same rights and shall have the same effect
under this title as an application for patent published under section
122(b), except as provided in sections 102(e) and 154(d) of this
title.''.
            (11) Section 135(b) is amended--
                    (A) by inserting ``(1)'' after ``(b)''; and
                    (B) by adding at the end the following:
    ``(2) A claim which is the same as, or for the same or
substantially the same subject matter as, a claim of an application
published under section 122(b) of this title may be made in an
application filed after the application is published only if the claim
is made before 1 year after the date on which the application is
published.''.

SEC. 4508. EFFECTIVE DATE.

    Sections 4502 through 4507, and the amendments made by such
sections, shall take effect on the date that is 1 year after the date
of the enactment of this Act and shall apply to all applications filed
under section 111 of title 35, United States Code, on or after that
date, and all applications complying with section 371 of title 35,
United States Code, that resulted from international applications filed
on or after that date. The amendments made by sections 4504 and 4505
shall apply to any such application voluntarily published by the
applicant under procedures established under this subtitle that is
pending on the date that is 1 year after the date of the enactment of
this Act. The amendment made by section 4504 shall also apply to
international applications designating the United States that are filed
on or after the date that is 1 year after the date of the enactment of
this Act.

       Subtitle F--Optional Inter Partes Reexamination Procedure

SEC. 4601. SHORT TITLE.

    This subtitle may be cited as the ``Optional Inter Partes
Reexamination Procedure Act of 1999''.

SEC. 4602. EX PARTE REEXAMINATION OF PATENTS.

    The chapter heading for chapter 30 of title 35, United States Code,
is amended by inserting ``EX PARTE'' before ``REEXAMINATION OF
PATENTS''.

SEC. 4603. DEFINITIONS.

    Section 100 of title 35, United States Code, is amended by adding
at the end the following new subsection:
    ``(e) The term `third-party requester' means a person requesting ex
parte reexamination under section 302 or inter partes reexamination
under section 311 who is not the patent owner.''.

SEC. 4604. OPTIONAL INTER PARTES REEXAMINATION PROCEDURES.

    (a) In General.--Part 3 of title 35, United States Code, is amended
by adding after chapter 30 the following new chapter:

      ``CHAPTER 31--OPTIONAL INTER PARTES REEXAMINATION PROCEDURES

``Sec.
``311. Request for inter partes reexamination.
``312. Determination of issue by Director.
``313. Inter partes reexamination order by Director.
``314. Conduct of inter partes reexamination proceedings.
``315. Appeal.
``316. Certificate of patentability, unpatentability, and claim
                            cancellation.
``317. Inter partes reexamination prohibited.
``318. Stay of litigation.

``Sec. 311. Request for inter partes reexamination
    ``(a) In General.--Any person at any time may file a request for
inter partes reexamination by the Office of a patent on the basis of
any prior art cited under the provisions of section 301.
    ``(b) Requirements.--The request shall--
            ``(1) be in writing, include the identity of the real party
        in interest, and be accompanied by payment of an inter partes
        reexamination fee established by the Director under section 41;
        and
            ``(2) set forth the pertinency and manner of applying cited
        prior art to every claim for which reexamination is requested.
            ``(c) Copy.--Unless the requesting person is the owner of
        the patent, the Director promptly shall send a copy of the
        request to the owner of record of the patent.
``Sec. 312. Determination of issue by Director
    ``(a) Reexamination.--Not later than 3 months after the filing of a
request for inter partes reexamination under section 311, the Director
shall determine whether a substantial new question of patentability
affecting any claim of the patent concerned is raised by the request,
with or without consideration of other patents or printed publications.
On the Director's initiative, and at any time, the Director may
determine whether a substantial new question of patentability is raised
by patents and publications.
    ``(b) Record.--A record of the Director's determination under
subsection (a) shall be placed in the official file of the patent, and
a copy shall be promptly given or mailed to the owner of record of the
patent and to the third-party requester, if any.
    ``(c) Final Decision.--A determination by the Director under
subsection (a) shall be final and non-appealable. Upon a determination
that no substantial new question of patentability has been raised, the
Director may refund a portion of the inter partes reexamination fee
required under section 311.
``Sec. 313. Inter partes reexamination order by Director
    ``If, in a determination made under section 312(a), the Director
finds that a substantial new question of patentability affecting a
claim of a patent is raised, the determination shall include an order
for inter partes reexamination of the patent for resolution of the
question. The order may be accompanied by the initial action of the
Patent and Trademark Office on the merits of the inter partes
reexamination conducted in accordance with section 314.
``Sec. 314. Conduct of inter partes reexamination proceedings
    ``(a) In General.--Except as otherwise provided in this section,
reexamination shall be conducted according to the procedures
established for initial examination under the provisions of sections
132 and 133. In any inter partes reexamination proceeding under this
chapter, the patent owner shall be permitted to propose any amendment
to the patent and a new claim or claims, except that no proposed
amended or new claim enlarging the scope of the claims of the patent
shall be permitted.
    ``(b) Response.--(1) This subsection shall apply to any inter
partes reexamination proceeding in which the order for inter partes
reexamination is based upon a request by a third-party requester.
    ``(2) With the exception of the inter partes reexamination request,
any document filed by either the patent owner or the third-party
requester shall be served on the other party. In addition, the third-
party requester shall receive a copy of any communication sent by the
Office to the patent owner concerning the patent subject to the inter
partes reexamination proceeding.
    ``(3) Each time that the patent owner files a response to an action
on the merits from the Patent and Trademark Office, the third-party
requester shall have one opportunity to file written comments
addressing issues raised by the action of the Office or the patent
owner's response thereto, if those written comments are received by the
Office within 30 days after the date of service of the patent owner's
response.
    ``(c) Special Dispatch.--Unless otherwise provided by the Director
for good cause, all inter partes reexamination proceedings under this
section, including any appeal to the Board of Patent Appeals and
Interferences, shall be conducted with special dispatch within the
Office.
``Sec. 315. Appeal
    ``(a) Patent Owner.--The patent owner involved in an inter partes
reexamination proceeding under this chapter--
            ``(1) may appeal under the provisions of section 134 and
        may appeal under the provisions of sections 141 through 144,
        with respect to any decision adverse to the patentability of
        any original or proposed amended or new claim of the patent;
        and
            ``(2) may be a party to any appeal taken by a third-party
        requester under subsection (b).
    ``(b) Third-Party Requester.--A third-party requester may--
            ``(1) appeal under the provisions of section 134 with
        respect to any final decision favorable to the patentability of
        any original or proposed amended or new claim of the patent; or
            ``(2) be a party to any appeal taken by the patent owner
        under the provisions of section 134, subject to subsection (c).
    ``(c) Civil Action.--A third-party requester whose request for an
inter partes reexamination results in an order under section 313 is
estopped from asserting at a later time, in any civil action arising in
whole or in part under section 1338 of title 28, United States Code,
the invalidity of any claim finally determined to be valid and
patentable on any ground which the third-party requester raised or
could have raised during the inter partes reexamination proceedings.
This subsection does not prevent the assertion of invalidity based on
newly discovered prior art unavailable to the third-party requester and
the Patent and Trademark Office at the time of the inter partes
reexamination proceedings.
``Sec. 316. Certificate of patentability, unpatentability, and claim
              cancellation
    ``(a) In General.--In an inter partes reexamination proceeding
under this chapter, when the time for appeal has expired or any appeal
proceeding has terminated, the Director shall issue and publish a
certificate canceling any claim of the patent finally determined to be
unpatentable, confirming any claim of the patent determined to be
patentable, and incorporating in the patent any proposed amended or new
claim determined to be patentable.
    ``(b) Amended or New Claim.--Any proposed amended or new claim
determined to be patentable and incorporated into a patent following an
inter partes reexamination proceeding shall have the same effect as
that specified in section 252 of this title for reissued patents on the
right of any person who made, purchased, or used within the United
States, or imported into the United States, anything patented by such
proposed amended or new claim, or who made substantial preparation
therefor, prior to issuance of a certificate under the provisions of
subsection (a) of this section.
``Sec. 317. Inter partes reexamination prohibited
    ``(a) Order for Reexamination.--Notwithstanding any provision of
this chapter, once an order for inter partes reexamination of a patent
has been issued under section 313, neither the patent owner nor the
third-party requester, if any, nor privies of either, may file a
subsequent request for inter partes reexamination of the patent until
an inter partes reexamination certificate is issued and published under
section 316, unless authorized by the Director.
    ``(b) Final Decision.--Once a final decision has been entered
against a party in a civil action arising in whole or in part under
section 1338 of title 28, United States Code, that the party has not
sustained its burden of proving the invalidity of any patent claim in
suit or if a final decision in an inter partes reexamination proceeding
instituted by a third-party requester is favorable to the patentability
of any original or proposed amended or new claim of the patent, then
neither that party nor its privies may thereafter request an inter
partes reexamination of any such patent claim on the basis of issues
which that party or its privies raised or could have raised in such
civil action or inter partes reexamination proceeding, and an inter
partes reexamination requested by that party or its privies on the
basis of such issues may not thereafter be maintained by the Office,
notwithstanding any other provision of this chapter. This subsection
does not prevent the assertion of invalidity based on newly discovered
prior art unavailable to the third-party requester and the Patent and
Trademark Office at the time of the inter partes reexamination
proceedings.
``Sec. 318. Stay of litigation
    ``Once an order for inter partes reexamination of a patent has been
issued under section 313, the patent owner may obtain a stay of any
pending litigation which involves an issue of patentability of any
claims of the patent which are the subject of the inter partes
reexamination order, unless the court before which such litigation is
pending determines that a stay would not serve the interests of
justice.''.
    (b) Conforming Amendment.--The table of chapters for part III of
title 25, United States Code, is amended by striking the item relating
to chapter 30 and inserting the following:

``30. Prior Art Citations to Office and Ex Parte                    301
                            Reexamination of Patents.
``31. Optional Inter Partes Reexamination of Patents........     311''.

SEC. 4605. CONFORMING AMENDMENTS.

    (a) Patent Fees; Patent Search Systems.--Section 41(a)(7) of title
35, United States Code, is amended to read as follows:
            ``(7) On filing each petition for the revival of an
        unintentionally abandoned application for a patent, for the
        unintentionally delayed payment of the fee for issuing each
        patent, or for an unintentionally delayed response by the
        patent owner in any reexamination proceeding, $1,210, unless
        the petition is filed under section 133 or 151 of this title,
        in which case the fee shall be $110.''.
    (b) Appeal to the Board of Patents Appeals and Interferences.--
Section 134 of title 35, United States Code, is amended to read as
follows:
``Sec. 134. Appeal to the Board of Patent Appeals and Interferences
    ``(a) Patent Applicant.--An applicant for a patent, any of whose
claims has been twice rejected, may appeal from the decision of the
administrative patent judge to the Board of Patent Appeals and
Interferences, having once paid the fee for such appeal.
    ``(b) Patent Owner.--A patent owner in any reexamination proceeding
may appeal from the final rejection of any claim by the administrative
patent judge to the Board of Patent Appeals and Interferences, having
once paid the fee for such appeal.
    ``(c) Third-Party.--A third-party requester in an inter partes
proceeding may appeal to the Board of Patent Appeals and Interferences
from the final decision of the administrative patent judge favorable to
the patentability of any original or proposed amended or new claim of a
patent, having once paid the fee for such appeal. The third-party
requester may not appeal the decision of the Board of Patent Appeals
and Interferences.''.
    (c) Appeal to Court of Appeals for the Federal Circuit.--Section
141 of title 35, United States Code, is amended by adding the following
after the second sentence: ``A patent owner in any reexamination
proceeding dissatisfied with the final decision in an appeal to the
Board of Patent Appeals and Interferences under section 134 may appeal
the decision only to the United States Court of Appeals for the Federal
Circuit.''.
    (d) Proceedings on Appeal.--Section 143 of title 35, United States
Code, is amended by amending the third sentence to read as follows:
``In any reexamination case, the Director shall submit to the court in
writing the grounds for the decision of the Patent and Trademark
Office, addressing all the issues involved in the appeal.''.
    (e) Civil Action To Obtain Patent.--Section 145 of title 35, United
States Code, is amended in the first sentence by inserting ``(a)''
after ``section 134''.

SEC. 4606. REPORT TO CONGRESS.

    Not later than 5 years after the date of the enactment of this Act,
the Under Secretary of Commerce for Intellectual Property and Director
of the United States Patent and Trademark Office shall submit to the
Congress a report evaluating whether the inter partes reexamination
proceedings established under the amendments made by this subtitle are
inequitable to any of the parties in interest and, if so, the report
shall contain recommendations for changes to the amendments made by
this subtitle to remove such inequity.

SEC. 4607. ESTOPPEL EFFECT OF REEXAMINATION.

    Any party who requests an inter partes reexamination under section
311 of title 35, United States Code, is estopped from challenging at a
later time, in any civil action, any fact determined during the process
of such reexamination, except with respect to a fact determination
later proved to be erroneous based on information unavailable at the
time of the inter partes reexamination decision. If this section is
held to be unenforceable, the enforceability of the remainder of this
subtitle or of this title shall not be denied as a result.

SEC. 4608. EFFECTIVE DATE.

    (a) In General.--Subject to subsection (b), this subtitle and the
amendments made by this subtitle shall take effect on the date of the
enactment of this Act and shall apply to any patent that issues from an
original application filed in the United States on or after that date.
    (b) Section 4605(a).--The amendments made by section 4605(a) shall
take effect on the date that is 1 year after the date of the enactment
of this Act.

                Subtitle G--Patent and Trademark Office

SEC. 4701. SHORT TITLE.

    This subtitle may be cited as the ``Patent and Trademark Office
Efficiency Act''.

          CHAPTER 1--UNITED STATES PATENT AND TRADEMARK OFFICE

SEC. 4711. ESTABLISHMENT OF PATENT AND TRADEMARK OFFICE.

    Section 1 of title 35, United States Code, is amended to read as
follows:
``Sec. 1. Establishment
    ``(a) Establishment.--The United States Patent and Trademark Office
is established as an agency of the United States, within the Department
of Commerce. In carrying out its functions, the United States Patent
and Trademark Office shall be subject to the policy direction of the
Secretary of Commerce, but otherwise shall retain responsibility for
decisions regarding the management and administration of its operations
and shall exercise independent control of its budget allocations and
expenditures, personnel decisions and processes, procurements, and
other administrative and management functions in accordance with this
title and applicable provisions of law. Those operations designed to
grant and issue patents and those operations which are designed to
facilitate the registration of trademarks shall be treated as separate
operating units within the Office.
    ``(b) Offices.--The United States Patent and Trademark Office shall
maintain its principal office in the metropolitan Washington, D.C.,
area, for the service of process and papers and for the purpose of
carrying out its functions. The United States Patent and Trademark
Office shall be deemed, for purposes of venue in civil actions, to be a
resident of the district in which its principal office is located,
except where jurisdiction is otherwise provided by law. The United
States Patent and Trademark Office may establish satellite offices in
such other places in the United States as it considers necessary and
appropriate in the conduct of its business.
    ``(c) Reference.--For purposes of this title, the United States
Patent and Trademark Office shall also be referred to as the `Office'
and the `Patent and Trademark Office'.''.

SEC. 4712. POWERS AND DUTIES.

    Section 2 of title 35, United States Code, is amended to read as
follows:
``Sec. 2. Powers and duties
    ``(a) In General.--The United States Patent and Trademark Office,
subject to the policy direction of the Secretary of Commerce--
            ``(1) shall be responsible for the granting and issuing of
        patents and the registration of trademarks; and
            ``(2) shall be responsible for disseminating to the public
        information with respect to patents and trademarks.
    ``(b) Specific Powers.--The Office--
            ``(1) shall adopt and use a seal of the Office, which shall
        be judicially noticed and with which letters patent,
        certificates of trademark registrations, and papers issued by
        the Office shall be authenticated;
            ``(2) may establish regulations, not inconsistent with law,
        which--
                    ``(A) shall govern the conduct of proceedings in
                the Office;
                    ``(B) shall be made in accordance with section 553
                of title 5, United States Code;
                    ``(C) shall facilitate and expedite the processing
                of patent applications, particularly those which can be
                filed, stored, processed, searched, and retrieved
                electronically, subject to the provisions of section
                122 relating to the confidential status of
                applications;
                    ``(D) may govern the recognition and conduct of
                agents, attorneys, or other persons representing
                applicants or other parties before the Office, and may
                require them, before being recognized as
                representatives of applicants or other persons, to show
                that they are of good moral character and reputation
                and are possessed of the necessary qualifications to
                render to applicants or other persons valuable service,
                advice, and assistance in the presentation or
                prosecution of their applications or other business
                before the Office;
                    ``(E) shall recognize the public interest in
                continuing to safeguard broad access to the United
                States patent system through the reduced fee structure
                for small entities under section 41(h)(1) of this
                title; and
                    ``(F) provide for the development of a performance-
                based process that includes quantitative and
                qualitative measures and standards for evaluating cost-
                effectiveness and is consistent with the principles of
                impartiality and competitiveness;
            ``(3) may acquire, construct, purchase, lease, hold,
        manage, operate, improve, alter, and renovate any real,
        personal, or mixed property, or any interest therein, as it
        considers necessary to carry out its functions;
            ``(4)(A) may make such purchases, contracts for the
        construction, maintenance, or management and operation of
        facilities, and contracts for supplies or services, without
        regard to the provisions of the Federal Property and
        Administrative Services Act of 1949 (40 U.S.C. 471 et seq.),
        the Public Buildings Act (40 U.S.C. 601 et seq.), and the
        Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11301 et
        seq.); and
            ``(B) may enter into and perform such purchases and
        contracts for printing services, including the process of
        composition, platemaking, presswork, silk screen processes,
        binding, microform, and the products of such processes, as it
        considers necessary to carry out the functions of the Office,
        without regard to sections 501 through 517 and 1101 through
        1123 of title 44, United States Code;
            ``(5) may use, with their consent, services, equipment,
        personnel, and facilities of other departments, agencies, and
        instrumentalities of the Federal Government, on a reimbursable
        basis, and cooperate with such other departments, agencies, and
        instrumentalities in the establishment and use of services,
        equipment, and facilities of the Office;
            ``(6) may, when the Director determines that it is
        practicable, efficient, and cost-effective to do so, use, with
        the consent of the United States and the agency,
        instrumentality, Patent and Trademark Office, or international
        organization concerned, the services, records, facilities, or
        personnel of any State or local government agency or
        instrumentality or foreign patent and trademark office or
        international organization to perform functions on its behalf;
            ``(7) may retain and use all of its revenues and receipts,
        including revenues from the sale, lease, or disposal of any
        real, personal, or mixed property, or any interest therein, of
        the Office;
            ``(8) shall advise the President, through the Secretary of
        Commerce, on national and certain international intellectual
        property policy issues;
            ``(9) shall advise Federal departments and agencies on
        matters of intellectual property policy in the United States
        and intellectual property protection in other countries;
            ``(10) shall provide guidance, as appropriate, with respect
        to proposals by agencies to assist foreign governments and
        international intergovernmental organizations on matters of
        intellectual property protection;
            ``(11) may conduct programs, studies, or exchanges of items
        or services regarding domestic and international intellectual
        property law and the effectiveness of intellectual property
        protection domestically and throughout the world;
            ``(12)(A) shall advise the Secretary of Commerce on
        programs and studies relating to intellectual property policy
        that are conducted, or authorized to be conducted,
        cooperatively with foreign intellectual property offices and
        international intergovernmental organizations; and
            ``(B) may conduct programs and studies described in
        subparagraph (A); and
            ``(13)(A) in coordination with the Department of State, may
        conduct programs and studies cooperatively with foreign
        intellectual property offices and international
        intergovernmental organizations; and
            ``(B) with the concurrence of the Secretary of State, may
        authorize the transfer of not to exceed $100,000 in any year to
        the Department of State for the purpose of making special
        payments to international intergovernmental organizations for
        studies and programs for advancing international cooperation
        concerning patents, trademarks, and other matters.
    ``(c) Clarification of Specific Powers.--(1) The special payments
under subsection (b)(13)(B) shall be in addition to any other payments
or contributions to international organizations described in subsection
(b)(13)(B) and shall not be subject to any limitations imposed by law
on the amounts of such other payments or contributions by the United
States Government.
    ``(2) Nothing in subsection (b) shall derogate from the duties of
the Secretary of State or from the duties of the United States Trade
Representative as set forth in section 141 of the Trade Act of 1974 (19
U.S.C. 2171).
    ``(3) Nothing in subsection (b) shall derogate from the duties and
functions of the Register of Copyrights or otherwise alter current
authorities relating to copyright matters.
    ``(4) In exercising the Director's powers under paragraphs (3) and
(4)(A) of subsection (b), the Director shall consult with the
Administrator of General Services.
    ``(5) In exercising the Director's powers and duties under this
section, the Director shall consult with the Register of Copyrights on
all copyright and related matters.
    ``(d) Construction.--Nothing in this section shall be construed to
nullify, void, cancel, or interrupt any pending request-for-proposal
let or contract issued by the General Services Administration for the
specific purpose of relocating or leasing space to the United States
Patent and Trademark Office.''.

SEC. 4713. ORGANIZATION AND MANAGEMENT.

    Section 3 of title 35, United States Code, is amended to read as
follows:
``Sec. 3. Officers and employees
    ``(a) Under Secretary and Director.--
            ``(1) In general.--The powers and duties of the United
        States Patent and Trademark Office shall be vested in an Under
        Secretary of Commerce for Intellectual Property and Director of
        the United States Patent and Trademark Office (in this title
        referred to as the `Director'), who shall be a citizen of the
        United States and who shall be appointed by the President, by
        and with the advice and consent of the Senate. The Director
        shall be a person who has a professional background and
        experience in patent or trademark law.
            ``(2) Duties.--
                    ``(A) In general.--The Director shall be
                responsible for providing policy direction and
                management supervision for the Office and for the
                issuance of patents and the registration of trademarks.
                The Director shall perform these duties in a fair,
                impartial, and equitable manner.
                    ``(B) Consulting with the public advisory
                committees.--The Director shall consult with the Patent
                Public Advisory Committee established in section 5 on a
                regular basis on matters relating to the patent
                operations of the Office, shall consult with the
                Trademark Public Advisory Committee established in
                section 5 on a regular basis on matters relating to the
                trademark operations of the Office, and shall consult
                with the respective Public Advisory Committee before
                submitting budgetary proposals to the Office of
                Management and Budget or changing or proposing to
                change patent or trademark user fees or patent or
                trademark regulations which are subject to the
                requirement to provide notice and opportunity for
                public comment under section 553 of title 5, United
                States Code, as the case may be.
            ``(3) Oath.--The Director shall, before taking office, take
        an oath to discharge faithfully the duties of the Office.
            ``(4) Removal.--The Director may be removed from office by
        the President. The President shall provide notification of any
        such removal to both Houses of Congress.
    ``(b) Officers and Employees of the Office.--
            ``(1) Deputy under secretary and deputy director.--The
        Secretary of Commerce, upon nomination by the Director, shall
        appoint a Deputy Under Secretary of Commerce for Intellectual
        Property and Deputy Director of the United States Patent and
        Trademark Office who shall be vested with the authority to act
        in the capacity of the Director in the event of the absence or
        incapacity of the Director. The Deputy Director shall be a
        citizen of the United States who has a professional background
        and experience in patent or trademark law.
            ``(2) Commissioners.--
                    ``(A) Appointment and duties.--The Secretary of
                Commerce shall appoint a Commissioner for Patents and a
                Commissioner for Trademarks, without regard to chapter
                33, 51, or 53 of title 5, United States Code. The
                Commissioner for Patents shall be a citizen of the
                United States with demonstrated management ability and
                professional background and experience in patent law
                and serve for a term of 5 years. The Commissioner for
                Trademarks shall be a citizen of the United States with
                demonstrated management ability and professional
                background and experience in trademark law and serve
                for a term of 5 years. The Commissioner for Patents and
                the Commissioner for Trademarks shall serve as the
                chief operating officers for the operations of the
                Office relating to patents and trademarks,
                respectively, and shall be responsible for the
                management and direction of all aspects of the
                activities of the Office that affect the administration
                of patent and trademark operations, respectively. The
                Secretary may reappoint a Commissioner to subsequent
                terms of 5 years as long as the performance of the
                Commissioner as set forth in the performance agreement
                in subparagraph (B) is satisfactory.
                    ``(B) Salary and performance agreement.--The
                Commissioners shall be paid an annual rate of basic pay
                not to exceed the maximum rate of basic pay for the
                Senior Executive Service established under section 5382
                of title 5, United States Code, including any
                applicable locality-based comparability payment that
                may be authorized under section 5304(h)(2)(C) of title
                5, United States Code. The compensation of the
                Commissioners shall be considered, for purposes of
                section 207(c)(2)(A) of title 18, United States Code,
                to be the equivalent of that described under clause
                (ii) of section 207(c)(2)(A) of title 18, United States
                Code. In addition, the Commissioners may receive a
                bonus in an amount of up to, but not in excess of, 50
                percent of the Commissioners' annual rate of basic pay,
                based upon an evaluation by the Secretary of Commerce,
                acting through the Director, of the Commissioners'
                performance as defined in an annual performance
                agreement between the Commissioners and the Secretary.
                The annual performance agreements shall incorporate
                measurable organization and individual goals in key
                operational areas as delineated in an annual
                performance plan agreed to by the Commissioners and the
                Secretary. Payment of a bonus under this subparagraph
                may be made to the Commissioners only to the extent
                that such payment does not cause the Commissioners'
                total aggregate compensation in a calendar year to
                equal or exceed the amount of the salary of the Vice
                President under section 104 of title 3, United States
                Code.
                    ``(C) Removal.--The Commissioners may be removed
                from office by the Secretary for misconduct or
                nonsatisfactory performance under the performance
                agreement described in subparagraph (B), without regard
                to the provisions of title 5, United States Code. The
                Secretary shall provide notification of any such
                removal to both Houses of Congress.
            ``(3) Other officers and employees.--The Director shall--
                    ``(A) appoint such officers, employees (including
                attorneys), and agents of the Office as the Director
                considers necessary to carry out the functions of the
                Office; and
                    ``(B) define the title, authority, and duties of
                such officers and employees and delegate to them such
                of the powers vested in the Office as the Director may
                determine.
        The Office shall not be subject to any administratively or
        statutorily imposed limitation on positions or personnel, and
        no positions or personnel of the Office shall be taken into
        account for purposes of applying any such limitation.
            ``(4) Training of examiners.--The Office shall submit to
        the Congress a proposal to provide an incentive program to
        retain as employees patent and trademark examiners of the
        primary examiner grade or higher who are eligible for
        retirement, for the sole purpose of training patent and
        trademark examiners.
            ``(5) National security positions.--The Director, in
        consultation with the Director of the Office of Personnel
        Management, shall maintain a program for identifying national
        security positions and providing for appropriate security
        clearances, in order to maintain the secrecy of certain
        inventions, as described in section 181, and to prevent
        disclosure of sensitive and strategic information in the
        interest of national security.
    ``(c) Continued Applicability of Title 5, United States Code.--
Officers and employees of the Office shall be subject to the provisions
of title 5, United States Code, relating to Federal employees.
    ``(d) Adoption of Existing Labor Agreements.--The Office shall
adopt all labor agreements which are in effect, as of the day before
the effective date of the Patent and Trademark Office Efficiency Act,
with respect to such Office (as then in effect).
    ``(e) Carryover of Personnel.--
            ``(1) From pto.--Effective as of the effective date of the
        Patent and Trademark Office Efficiency Act, all officers and
        employees of the Patent and Trademark Office on the day before
        such effective date shall become officers and employees of the
        Office, without a break in service.
            ``(2) Other personnel.--Any individual who, on the day
        before the effective date of the Patent and Trademark Office
        Efficiency Act, is an officer or employee of the Department of
        Commerce (other than an officer or employee under paragraph
        (1)) shall be transferred to the Office, as necessary to carry
        out the purposes of this Act, if--
                    ``(A) such individual serves in a position for
                which a major function is the performance of work
                reimbursed by the Patent and Trademark Office, as
                determined by the Secretary of Commerce;
                    ``(B) such individual serves in a position that
                performed work in support of the Patent and Trademark
                Office during at least half of the incumbent's work
                time, as determined by the Secretary of Commerce; or
                    ``(C) such transfer would be in the interest of the
                Office, as determined by the Secretary of Commerce in
                consultation with the Director.
        Any transfer under this paragraph shall be effective as of the
        same effective date as referred to in paragraph (1), and shall
        be made without a break in service.
    ``(f) Transition Provisions.--
            ``(1) Interim appointment of director.--On or after the
        effective date of the Patent and Trademark Office Efficiency
        Act, the President shall appoint an individual to serve as the
        Director until the date on which a Director qualifies under
        subsection (a). The President shall not make more than one such
        appointment under this subsection.
            ``(2) Continuation in office of certain officers.--(A) The
        individual serving as the Assistant Commissioner for Patents on
        the day before the effective date of the Patent and Trademark
        Office Efficiency Act may serve as the Commissioner for Patents
        until the date on which a Commissioner for Patents is appointed
        under subsection (b).
            ``(B) The individual serving as the Assistant Commissioner
        for Trademarks on the day before the effective date of the
        Patent and Trademark Office Efficiency Act may serve as the
        Commissioner for Trademarks until the date on which a
        Commissioner for Trademarks is appointed under subsection
        (b).''.

SEC. 4714. PUBLIC ADVISORY COMMITTEES.

    Chapter 1 of part I of title 35, United States Code, is amended by
inserting after section 4 the following:
``Sec. 5. Patent and Trademark Office Public Advisory Committees
    ``(a) Establishment of Public Advisory Committees.--
            ``(1) Appointment.--The United States Patent and Trademark
        Office shall have a Patent Public Advisory Committee and a
        Trademark Public Advisory Committee, each of which shall have
        nine voting members who shall be appointed by the Secretary of
        Commerce and serve at the pleasure of the Secretary of
        Commerce. Members of each Public Advisory Committee shall be
        appointed for a term of 3 years, except that of the members
        first appointed, three shall be appointed for a term of 1 year,
        and three shall be appointed for a term of 2 years. In making
        appointments to each Committee, the Secretary of Commerce shall
        consider the risk of loss of competitive advantage in
        international commerce or other harm to United States companies
        as a result of such appointments.
            ``(2) Chair.--The Secretary shall designate a chair of each
        Advisory Committee, whose term as chair shall be for 3 years.
            ``(3) Timing of appointments.--Initial appointments to each
        Advisory Committee shall be made within 3 months after the
        effective date of the Patent and Trademark Office Efficiency
        Act. Vacancies shall be filled within 3 months after they
        occur.
    ``(b) Basis for Appointments.--Members of each Advisory Committee--
            ``(1) shall be citizens of the United States who shall be
        chosen so as to represent the interests of diverse users of the
        United States Patent and Trademark Office with respect to
        patents, in the case of the Patent Public Advisory Committee,
        and with respect to trademarks, in the case of the Trademark
        Public Advisory Committee;
            ``(2) shall include members who represent small and large
        entity applicants located in the United States in proportion to
        the number of applications filed by such applicants, but in no
        case shall members who represent small entity patent
        applicants, including small business concerns, independent
        inventors, and nonprofit organizations, constitute less than 25
        percent of the members of the Patent Public Advisory Committee,
        and such members shall include at least one independent
        inventor; and
            ``(3) shall include individuals with substantial background
        and achievement in finance, management, labor relations,
        science, technology, and office automation.
In addition to the voting members, each Advisory Committee shall
include a representative of each labor organization recognized by the
United States Patent and Trademark Office. Such representatives shall
be nonvoting members of the Advisory Committee to which they are
appointed.
    ``(c) Meetings.--Each Advisory Committee shall meet at the call of
the chair to consider an agenda set by the chair.
    ``(d) Duties.--Each Advisory Committee shall--
            ``(1) review the policies, goals, performance, budget, and
        user fees of the United States Patent and Trademark Office with
        respect to patents, in the case of the Patent Public Advisory
        Committee, and with respect to Trademarks, in the case of the
        Trademark Public Advisory Committee, and advise the Director on
        these matters;
            ``(2) within 60 days after the end of each fiscal year--
                    ``(A) prepare an annual report on the matters
                referred to in paragraph (1);
                    ``(B) transmit the report to the Secretary of
                Commerce, the President, and the Committees on the
                Judiciary of the Senate and the House of
                Representatives; and
                    ``(C) publish the report in the Official Gazette of
                the United States Patent and Trademark Office.
    ``(e) Compensation.--Each member of each Advisory Committee shall
be compensated for each day (including travel time) during which such
member is attending meetings or conferences of that Advisory Committee
or otherwise engaged in the business of that Advisory Committee, at the
rate which is the daily equivalent of the annual rate of basic pay in
effect for level III of the Executive Schedule under section 5314 of
title 5, United States Code. While away from such member's home or
regular place of business such member shall be allowed travel expenses,
including per diem in lieu of subsistence, as authorized by section
5703 of title 5, United States Code.
    ``(f) Access to Information.--Members of each Advisory Committee
shall be provided access to records and information in the United
States Patent and Trademark Office, except for personnel or other
privileged information and information concerning patent applications
required to be kept in confidence by section 122.
    ``(g) Applicability of Certain Ethics Laws.--Members of each
Advisory Committee shall be special Government employees within the
meaning of section 202 of title 18, United States Code.
    ``(h) Inapplicability of Federal Advisory Committee Act.--The
Federal Advisory Committee Act (5 U.S.C. App.) shall not apply to each
Advisory Committee.
    ``(i) Open Meetings.--The meetings of each Advisory Committee shall
be open to the public, except that each Advisory Committee may by
majority vote meet in executive session when considering personnel or
other confidential information.''.

SEC. 4715. CONFORMING AMENDMENTS.

    (a) Duties.--Chapter 1 of title 35, United States Code, is amended
by striking section 6.
    (b) Regulations for Agents and Attorneys.--Section 31 of title 35,
United States Code, and the item relating to such section in the table
of sections for chapter 3 of title 35, United States Code, are
repealed.
    (c) Suspension or Exclusion From Practice.--Section 32 of title 35,
United States Code, is amended by striking ``31'' and inserting
``2(b)(2)(D)''.

SEC. 4716. TRADEMARK TRIAL AND APPEAL BOARD.

    Section 17 of the Act of July 5, 1946 (commonly referred to as the
``Trademark Act of 1946'') (15 U.S.C. 1067) is amended to read as
follows:
    ``Sec. 17. (a) In every case of interference, opposition to
registration, application to register as a lawful concurrent user, or
application to cancel the registration of a mark, the Director shall
give notice to all parties and shall direct a Trademark Trial and
Appeal Board to determine and decide the respective rights of
registration.
    ``(b) The Trademark Trial and Appeal Board shall include the
Director, the Commissioner for Patents, the Commissioner for
Trademarks, and administrative trademark judges who are appointed by
the Director.''.

SEC. 4717. BOARD OF PATENT APPEALS AND INTERFERENCES.

    Chapter 1 of title 35, United States Code, is amended--
            (1) by striking section 7 and redesignating sections 8
        through 14 as sections 7 through 13, respectively; and
            (2) by inserting after section 5 the following:
``Sec. 6. Board of Patent Appeals and Interferences
    ``(a) Establishment and Composition.--There shall be in the United
States Patent and Trademark Office a Board of Patent Appeals and
Interferences. The Director, the Commissioner for Patents, the
Commissioner for Trademarks, and the administrative patent judges shall
constitute the Board. The administrative patent judges shall be persons
of competent legal knowledge and scientific ability who are appointed
by the Director.
    ``(b) Duties.--The Board of Patent Appeals and Interferences shall,
on written appeal of an applicant, review adverse decisions of
examiners upon applications for patents and shall determine priority
and patentability of invention in interferences declared under section
135(a). Each appeal and interference shall be heard by at least three
members of the Board, who shall be designated by the Director. Only the
Board of Patent Appeals and Interferences may grant rehearings.''.

SEC. 4718. ANNUAL REPORT OF DIRECTOR.

    Section 13 of title 35, United States Code, as redesignated by
section 4717 of this subtitle, is amended to read as follows:
``Sec. 13. Annual report to Congress
    ``The Director shall report to the Congress, not later than 180
days after the end of each fiscal year, the moneys received and
expended by the Office, the purposes for which the moneys were spent,
the quality and quantity of the work of the Office, the nature of
training provided to examiners, the evaluation of the Commissioner of
Patents and the Commissioner of Trademarks by the Secretary of
Commerce, the compensation of the Commissioners, and other information
relating to the Office.''.

SEC. 4719. SUSPENSION OR EXCLUSION FROM PRACTICE.

    Section 32 of title 35, United States Code, is amended by inserting
before the last sentence the following: ``The Director shall have the
discretion to designate any attorney who is an officer or employee of
the United States Patent and Trademark Office to conduct the hearing
required by this section.''.

SEC. 4720. PAY OF DIRECTOR AND DEPUTY DIRECTOR.

    (a) Pay of Director.--Section 5314 of title 5, United States Code,
is amended by striking:
            ``Assistant Secretary of Commerce and Commissioner of
        Patents and Trademarks.''.
and inserting:
            ``Under Secretary of Commerce for Intellectual Property and
        Director of the United States Patent and Trademark Office.''.
    (b) Pay of Deputy Director.--Section 5315 of title 5, United States
Code, is amended by adding at the end the following:
            ``Deputy Under Secretary of Commerce for Intellectual
        Property and Deputy Director of the United States Patent and
        Trademark Office.''.

            CHAPTER 2--EFFECTIVE DATE; TECHNICAL AMENDMENTS

SEC. 4731. EFFECTIVE DATE.

    This subtitle and the amendments made by this subtitle shall take
effect 4 months after the date of the enactment of this Act.

SEC. 4732. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Amendments to Title 35, United States Code.--
            (1) The item relating to part I in the table of parts for
        chapter 35, United States Code, is amended to read as follows:

``I. United States Patent and Trademark Office..............       1''.

            (2) The heading for part I of title 35, United States Code,
        is amended to read as follows:

         ``PART I--UNITED STATES PATENT AND TRADEMARK OFFICE''.

            (3) The table of chapters for part I of title 35, United
        States Code, is amended by amending the item relating to
        chapter 1 to read as follows:

``1. Establishment, Officers and Employees, Functions.......       1''.

            (4) The table of sections for chapter 1 of title 35, United
        States Code, is amended to read as follows:

     ``CHAPTER 1--ESTABLISHMENT, OFFICERS AND EMPLOYEES, FUNCTIONS

``Sec.
`` 1. Establishment.
`` 2. Powers and duties.
`` 3. Officers and employees.
`` 4. Restrictions on officers and employees as to interest in patents.
`` 5. Patent and Trademark Office Public Advisory Committees.
`` 6. Board of Patent Appeals and Interferences.
`` 7. Library.
`` 8. Classification of patents.
`` 9. Certified copies of records.
``10. Publications.
``11. Exchange of copies of patents and applications with foreign
                            countries.
``12. Copies of patents and applications for public libraries.
``13. Annual report to Congress.''.

            (5) Section 41(h) of title 35, United States Code, is
        amended by striking ``Commissioner of Patents and Trademarks''
        and inserting ``Director''.
            (6) Section 155 of title 35, United States Code, is amended
        by striking ``Commissioner of Patents and Trademarks'' and
        inserting ``Director''.
            (7) Section 155A(c) of title 35, United States Code, is
        amended by striking ``Commissioner of Patents and Trademarks''
        and inserting ``Director''.
            (8) Section 302 of title 35, United States Code, is amended
        by striking ``Commissioner of Patents'' and inserting
        ``Director''.
            (9)(A) Section 303 of title 35, United States Code, is
        amended--
                    (i) in the section heading by striking
                ``Commissioner'' and inserting ``Director''; and
                    (ii) by striking ``Commissioner's'' and inserting
                ``Director's''.
            (B) The item relating to section 303 in the table of
        sections for chapter 30 of title 35, United States Code, is
        amended by striking ``Commissioner'' and inserting
        ``Director''.
            (10)(A) Except as provided in subparagraph (B), title 35,
        United States Code, is amended by striking ``Commissioner''
        each place it appears and inserting ``Director''.
            (B) Chapter 17 of title 35, United States Code, is amended
        by striking ``Commissioner'' each place it appears and
        inserting ``Commissioner of Patents''.
            (11) Section 157(d) of title 35, United States Code, is
        amended by striking ``Secretary of Commerce'' and inserting
        ``Director''.
            (12) Section 202(a) of title 35, United States Code, is
        amended--
                    (A) by striking ``iv)'' and inserting ``(iv)''; and
                    (B) by striking the second period after
                ``Department of Energy'' at the end of the first
                sentence.
    (b) Other Provisions of Law.--
            (1)(A) Section 45 of the Act of July 5, 1946 (commonly
        referred to as the ``Trademark Act of 1946''; 15 U.S.C. 1127),
        is amended by striking ``The term `Commissioner' means the
        Commissioner of Patents and Trademarks.'' and inserting ``The
        term `Director' means the Under Secretary of Commerce for
        Intellectual Property and Director of the United States Patent
        and Trademark Office.''.
            (B) The Act of July 5, 1946 (commonly referred to as the
        ``Trademark Act of 1946''; 15 U.S.C. 1051 et seq.), except for
        section 17, as amended by 4716 of this subtitle, is amended by
        striking ``Commissioner'' each place it appears and inserting
        ``Director''.
            (C) Sections 8(e) and 9(b) of the Trademark Act of 1946 are
        each amended by striking ``Commissioner'' and inserting
        ``Director''.
            (2) Section 500(e) of title 5, United States Code, is
        amended by striking ``Patent Office'' and inserting ``United
        States Patent and Trademark Office''.
            (3) Section 5102(c)(23) of title 5, United States Code, is
        amended to read as follows:
            ``(23) administrative patent judges and designated
        administrative patent judges in the United States Patent and
        Trademark Office;''.
            (4) Section 5316 of title 5, United States Code (5 U.S.C.
        5316) is amended by striking ``Commissioner of Patents,
        Department of Commerce.'', ``Deputy Commissioner of Patents and
        Trademarks.'', ``Assistant Commissioner for Patents.'', and
        ``Assistant Commissioner for Trademarks.''.
            (5) Section 9(p)(1)(B) of the Small Business Act (15 U.S.C.
        638(p)(1)(B)) is amended to read as follows:
                    ``(B) the Under Secretary of Commerce for
                Intellectual Property and Director of the United States
                Patent and Trademark Office; and''.
            (6) Section 12 of the Act of February 14, 1903 (15 U.S.C.
        1511) is amended--
                    (A) by striking ``(d) Patent and Trademark
                Office;'' and inserting:
            ``(4) United States Patent and Trademark Office''; and
                    (B) by redesignating subsections (a), (b), (c),
                (e), (f), and (g) as paragraphs (1), (2), (3), (5),
                (6), and (7), respectively and indenting the paragraphs
                as so redesignated 2 ems to the right.
            (7) Section 19 of the Tennessee Valley Authority Act of
        1933 (16 U.S.C. 831r) is amended--
                    (A) by striking ``Patent Office of the United
                States'' and inserting ``United States Patent and
                Trademark Office''; and
                    (B) by striking ``Commissioner of Patents'' and
                inserting ``Under Secretary of Commerce for
                Intellectual Property and Director of the United States
                Patent and Trademark Office''.
            (8) Section 182(b)(2)(A) of the Trade Act of 1974 (19
        U.S.C. 2242(b)(2)(A)) is amended by striking ``Commissioner of
        Patents and Trademarks'' and inserting ``Under Secretary of
        Commerce for Intellectual Property and Director of the United
        States Patent and Trademark Office''.
            (9) Section 302(b)(2)(D) of the Trade Act of 1974 (19
        U.S.C. 2412(b)(2)(D)) is amended by striking ``Commissioner of
        Patents and Trademarks'' and inserting ``Under Secretary of
        Commerce for Intellectual Property and Director of the United
        States Patent and Trademark Office''.
            (10) The Act of April 12, 1892 (27 Stat. 395; 20 U.S.C. 91)
        is amended by striking ``Patent Office'' and inserting ``United
        States Patent and Trademark Office''.
            (11) Sections 505(m) and 512(o) of the Federal Food, Drug,
        and Cosmetic Act (21 U.S.C. 355(m) and 360b(o)) are each
        amended by striking ``Patent and Trademark Office of the
        Department of Commerce'' and inserting ``United States Patent
        and Trademark Office''.
            (12) Section 702(d) of the Federal Food, Drug, and Cosmetic
        Act (21 U.S.C. 372(d)) is amended by striking ``Commissioner of
        Patents'' and inserting ``Under Secretary of Commerce for
        Intellectual Property and Director of the United States Patent
        and Trademark Office'' and by striking ``Commissioner'' and
        inserting ``Director''.
            (13) Section 105(e) of the Federal Alcohol Administration
        Act (27 U.S.C. 205(e)) is amended by striking ``United States
        Patent Office'' and inserting ``United States Patent and
        Trademark Office''.
            (14) Section 1295(a)(4) of title 28, United States Code, is
        amended--
                    (A) in subparagraph (A) by inserting ``United
                States'' before ``Patent and Trademark''; and
                    (B) in subparagraph (B) by striking ``Commissioner
                of Patents and Trademarks'' and inserting ``Under
                Secretary of Commerce for Intellectual Property and
                Director of the United States Patent and Trademark
                Office''.
            (15) Chapter 115 of title 28, United States Code, is
        amended--
                    (A) in the item relating to section 1744 in the
                table of sections by striking ``Patent Office'' and
                inserting ``United States Patent and Trademark
                Office'';
                    (B) in section 1744--
                            (i) by striking ``Patent Office'' each
                        place it appears in the text and section
                        heading and inserting ``United States Patent
                        and Trademark Office''; and
                            (ii) by striking ``Commissioner of
                        Patents'' and inserting ``Under Secretary of
                        Commerce for Intellectual Property and Director
                        of the United States Patent and Trademark
                        Office''; and
                    (C) by striking ``Commissioner'' and inserting
                ``Director''.
            (16) Section 1745 of title 28, United States Code, is
        amended by striking ``United States Patent Office'' and
        inserting ``United States Patent and Trademark Office''.
            (17) Section 1928 of title 28, United States Code, is
        amended by striking ``Patent Office'' and inserting ``United
        States Patent and Trademark Office''.
            (18) Section 151 of the Atomic Energy Act of 1954 (42
        U.S.C. 2181) is amended in subsections c. and d. by striking
        ``Commissioner of Patents'' and inserting ``Under Secretary of
        Commerce for Intellectual Property and Director of the United
        States Patent and Trademark Office''.
            (19) Section 152 of the Atomic Energy Act of 1954 (42
        U.S.C. 2182) is amended by striking ``Commissioner of Patents''
        each place it appears and inserting ``Under Secretary of
        Commerce for Intellectual Property and Director of the United
        States Patent and Trademark Office''.
            (20) Section 305 of the National Aeronautics and Space Act
        of 1958 (42 U.S.C. 2457) is amended--
                    (A) in subsection (c) by striking ``Commissioner of
                Patents'' and inserting ``Under Secretary of Commerce
                for Intellectual Property and Director of the United
                States Patent and Trademark Office (hereafter in this
                section referred to as the `Director')''; and
                    (B) by striking ``Commissioner'' each subsequent
                place it appears and inserting ``Director''.
            (21) Section 12(a) of the Solar Heating and Cooling
        Demonstration Act of 1974 (42 U.S.C. 5510(a)) is amended by
        striking ``Commissioner of the Patent Office'' and inserting
        ``Under Secretary of Commerce for Intellectual Property and
        Director of the United States Patent and Trademark Office''.
            (22) Section 1111 of title 44, United States Code, is
        amended by striking ``the Commissioner of Patents,''.
            (23) Section 1114 of title 44, United States Code, is
        amended by striking ``the Commissioner of Patents,''.
            (24) Section 1123 of title 44, United States Code, is
        amended by striking ``the Patent Office,''.
            (25) Sections 1337 and 1338 of title 44, United States
        Code, and the items relating to those sections in the table of
        contents for chapter 13 of such title, are repealed.
            (26) Section 10(i) of the Trading with the enemy Act (50
        U.S.C. App. 10(i)) is amended by striking ``Commissioner of
        Patents'' and inserting ``Under Secretary of Commerce for
        Intellectual Property and Director of the United States Patent
        and Trademark Office''.

                  CHAPTER 3--MISCELLANEOUS PROVISIONS

SEC. 4741. REFERENCES.

    (a) In General.--Any reference in any other Federal law, Executive
order, rule, regulation, or delegation of authority, or any document of
or pertaining to a department or office from which a function is
transferred by this subtitle--
            (1) to the head of such department or office is deemed to
        refer to the head of the department or office to which such
        function is transferred; or
            (2) to such department or office is deemed to refer to the
        department or office to which such function is transferred.
    (b) Specific References.--Any reference in any other Federal law,
Executive order, rule, regulation, or delegation of authority, or any
document of or pertaining to the Patent and Trademark Office--
            (1) to the Commissioner of Patents and Trademarks is deemed
        to refer to the Under Secretary of Commerce for Intellectual
        Property and Director of the United States Patent and Trademark
        Office;
            (2) to the Assistant Commissioner for Patents is deemed to
        refer to the Commissioner for Patents; or
            (3) to the Assistant Commissioner for Trademarks is deemed
        to refer to the Commissioner for Trademarks.

SEC. 4742. EXERCISE OF AUTHORITIES.

    Except as otherwise provided by law, a Federal official to whom a
function is transferred by this subtitle may, for purposes of
performing the function, exercise all authorities under any other
provision of law that were available with respect to the performance of
that function to the official responsible for the performance of the
function immediately before the effective date of the transfer of the
function under this subtitle.

SEC. 4743. SAVINGS PROVISIONS.

    (a) Legal Documents.--All orders, determinations, rules,
regulations, permits, grants, loans, contracts, agreements,
certificates, licenses, and privileges--
            (1) that have been issued, made, granted, or allowed to
        become effective by the President, the Secretary of Commerce,
        any officer or employee of any office transferred by this
        subtitle, or any other Government official, or by a court of
        competent jurisdiction, in the performance of any function that
        is transferred by this subtitle; and
            (2) that are in effect on the effective date of such
        transfer (or become effective after such date pursuant to their
        terms as in effect on such effective date), shall continue in
        effect according to their terms until modified, terminated,
        superseded, set aside, or revoked in accordance with law by the
        President, any other authorized official, a court of competent
        jurisdiction, or operation of law.
    (b) Proceedings.--This subtitle shall not affect any proceedings or
any application for any benefits, service, license, permit,
certificate, or financial assistance pending on the effective date of
this subtitle before an office transferred by this subtitle, but such
proceedings and applications shall be continued. Orders shall be issued
in such proceedings, appeals shall be taken therefrom, and payments
shall be made pursuant to such orders, as if this subtitle had not been
enacted, and orders issued in any such proceeding shall continue in
effect until modified, terminated, superseded, or revoked by a duly
authorized official, by a court of competent jurisdiction, or by
operation of law. Nothing in this subsection shall be considered to
prohibit the discontinuance or modification of any such proceeding
under the same terms and conditions and to the same extent that such
proceeding could have been discontinued or modified if this subtitle
had not been enacted.
    (c) Suits.--This subtitle shall not affect suits commenced before
the effective date of this subtitle, and in all such suits, proceedings
shall be had, appeals taken, and judgments rendered in the same manner
and with the same effect as if this subtitle had not been enacted.
    (d) Nonabatement of Actions.--No suit, action, or other proceeding
commenced by or against the Department of Commerce or the Secretary of
Commerce, or by or against any individual in the official capacity of
such individual as an officer or employee of an office transferred by
this subtitle, shall abate by reason of the enactment of this subtitle.
    (e) Continuance of Suits.--If any Government officer in the
official capacity of such officer is party to a suit with respect to a
function of the officer, and under this subtitle such function is
transferred to any other officer or office, then such suit shall be
continued with the other officer or the head of such other office, as
applicable, substituted or added as a party.
    (f) Administrative Procedure and Judicial Review.--Except as
otherwise provided by this subtitle, any statutory requirements
relating to notice, hearings, action upon the record, or administrative
or judicial review that apply to any function transferred by this
subtitle shall apply to the exercise of such function by the head of
the Federal agency, and other officers of the agency, to which such
function is transferred by this subtitle.

SEC. 4744. TRANSFER OF ASSETS.

    Except as otherwise provided in this subtitle, so much of the
personnel, property, records, and unexpended balances of
appropriations, allocations, and other funds employed, used, held,
available, or to be made available in connection with a function
transferred to an official or agency by this subtitle shall be
available to the official or the head of that agency, respectively, at
such time or times as the Director of the Office of Management and
Budget directs for use in connection with the functions transferred.

SEC. 4745. DELEGATION AND ASSIGNMENT.

    Except as otherwise expressly prohibited by law or otherwise
provided in this subtitle, an official to whom functions are
transferred under this subtitle (including the head of any office to
which functions are transferred under this subtitle) may delegate any
of the functions so transferred to such officers and employees of the
office of the official as the official may designate, and may authorize
successive redelegations of such functions as may be necessary or
appropriate. No delegation of functions under this section or under any
other provision of this subtitle shall relieve the official to whom a
function is transferred under this subtitle of responsibility for the
administration of the function.

SEC. 4746. AUTHORITY OF DIRECTOR OF THE OFFICE OF MANAGEMENT AND BUDGET
              WITH RESPECT TO FUNCTIONS TRANSFERRED.

    (a) Determinations.--If necessary, the Director of the Office of
Management and Budget shall make any determination of the functions
that are transferred under this subtitle.
    (b) Incidental Transfers.--The Director of the Office of Management
and Budget, at such time or times as the Director shall provide, may
make such determinations as may be necessary with regard to the
functions transferred by this subtitle, and to make such additional
incidental dispositions of personnel, assets, liabilities, grants,
contracts, property, records, and unexpended balances of
appropriations, authorizations, allocations, and other funds held,
used, arising from, available to, or to be made available in connection
with such functions, as may be necessary to carry out the provisions of
this subtitle. The Director shall provide for the termination of the
affairs of all entities terminated by this subtitle and for such
further measures and dispositions as may be necessary to effectuate the
purposes of this subtitle.

SEC. 4747. CERTAIN VESTING OF FUNCTIONS CONSIDERED TRANSFERS.

    For purposes of this subtitle, the vesting of a function in a
department or office pursuant to reestablishment of an office shall be
considered to be the transfer of the function.

SEC. 4748. AVAILABILITY OF EXISTING FUNDS.

    Existing appropriations and funds available for the performance of
functions, programs, and activities terminated pursuant to this
subtitle shall remain available, for the duration of their period of
availability, for necessary expenses in connection with the termination
and resolution of such functions, programs, and activities, subject to
the submission of a plan to the Committees on Appropriations of the
House and Senate in accordance with the procedures set forth in section
605 of the Departments of Commerce, Justice, and State, the Judiciary,
and Related Agencies Appropriations Act, 1999, as contained in Public
Law 105-277.

SEC. 4749. DEFINITIONS.

    For purposes of this subtitle--
            (1) the term ``function'' includes any duty, obligation,
        power, authority, responsibility, right, privilege, activity,
        or program; and
            (2) the term ``office'' includes any office,
        administration, agency, bureau, institute, council, unit,
        organizational entity, or component thereof.

              Subtitle H--Miscellaneous Patent Provisions

SEC. 4801. PROVISIONAL APPLICATIONS.

    (a) Abandonment.--Section 111(b)(5) of title 35, United States
Code, is amended to read as follows:
            ``(5) Abandonment.--Notwithstanding the absence of a claim,
        upon timely request and as prescribed by the Director, a
        provisional application may be treated as an application filed
        under subsection (a). Subject to section 119(e)(3) of this
        title, if no such request is made, the provisional application
        shall be regarded as abandoned 12 months after the filing date
        of such application and shall not be subject to revival after
        such 12-month period.''.
    (b) Technical Amendment Relating to Weekends and Holidays.--Section
119(e) of title 35, United States Code, is amended by adding at the end
the following:
            ``(3) If the day that is 12 months after the filing date of
        a provisional application falls on a Saturday, Sunday, or
        Federal holiday within the District of Columbia, the period of
        pendency of the provisional application shall be extended to
        the next succeeding secular or business day.''.
    (c) Elimination of Copendency Requirement.--Section 119(e)(2) of
title 35, United States Code, is amended by striking ``and the
provisional application was pending on the filing date of the
application for patent under section 111(a) or section 363 of this
title''.
    (d) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this Act and shall apply to any
provisional application filed on or after June 8, 1995, except that the
amendments made by subsections (b) and (c) shall have no effect with
respect to any patent which is the subject of litigation in an action
commenced before such date of enactment.

SEC. 4802. INTERNATIONAL APPLICATIONS.

    Section 119 of title 35, United States Code, is amended as follows:
            (1) In subsection (a), insert ``or in a WTO member
        country,'' after ``or citizens of the United States,''.
            (2) At the end of section 119 add the following new
        subsections:
    ``(f) Applications for plant breeder's rights filed in a WTO member
country (or in a foreign UPOV Contracting Party) shall have the same
effect for the purpose of the right of priority under subsections (a)
through (c) of this section as applications for patents, subject to the
same conditions and requirements of this section as apply to
applications for patents.
    ``(g) As used in this section--
            ``(1) the term `WTO member country' has the same meaning as
        the term is defined in section 104(b)(2) of this title; and
            ``(2) the term `UPOV Contracting Party' means a member of
        the International Convention for the Protection of New
        Varieties of Plants.''.

SEC. 4803. CERTAIN LIMITATIONS ON DAMAGES FOR PATENT INFRINGEMENT NOT
              APPLICABLE.

    Section 287(c)(4) of title 35, United States Code, is amended by
striking ``before the date of enactment of this subsection'' and
inserting ``based on an application the earliest effective filing date
of which is prior to September 30, 1996''.

SEC. 4804. ELECTRONIC FILING AND PUBLICATIONS.

    (a) Printing of Papers Filed.--Section 22 of title 35, United
States Code, is amended by striking ``printed or typewritten'' and
inserting ``printed, typewritten, or on an electronic medium''.
    (b) Publications.--Section 11(a) of title 35, United States Code,
is amended by amending the matter preceding paragraph 1 to read as
follows:
    ``(a) The Director may publish in printed, typewritten, or
electronic form, the following:''.
    (c) Copies of Patents for Public Libraries.--Section 13 of title
35, United States Code, is amended by striking ``printed copies of
specifications and drawings of patents'' and inserting ``copies of
specifications and drawings of patents in printed or electronic form''.
    (d) Maintenance of Collections.--
            (1) Electronic collections.--Section 41(i)(1) of title 35,
        United States Code, is amended by striking ``paper or
        microform'' and inserting ``paper, microform, or electronic''.
            (2) Continuation of maintenance.--The Under Secretary of
        Commerce for Intellectual Property and Director of the United
        States Patent and Trademark Office shall not, pursuant to the
        amendment made by paragraph (1), cease to maintain, for use by
        the public, paper or microform collections of United States
        patents, foreign patent documents, and United States trademark
        registrations, except pursuant to notice and opportunity for
        public comment and except that the Director shall first submit
        a report to the Committees on the Judiciary of the Senate and
        the House of Representatives detailing such plan, including a
        description of the mechanisms in place to ensure the integrity
        of such collections and the data contained therein, as well as
        to ensure prompt public access to the most current available
        information, and certifying that the implementation of such
        plan will not negatively impact the public.

SEC. 4805. STUDY AND REPORT ON BIOLOGICAL DEPOSITS IN SUPPORT OF
              BIOTECHNOLOGY PATENTS.

    (a) In General.--Not later than 6 months after the date of the
enactment of this Act, the Comptroller General of the United States, in
consultation with the Under Secretary of Commerce for Intellectual
Property and Director of the United States Patent and Trademark Office,
shall conduct a study and submit a report to Congress on the potential
risks to the United States biotechnology industry relating to
biological deposits in support of biotechnology patents.
    (b) Contents.--The study conducted under this section shall
include--
            (1) an examination of the risk of export and the risk of
        transfers to third parties of biological deposits, and the
        risks posed by the change to 18-month publication requirements
        made by this subtitle;
            (2) an analysis of comparative legal and regulatory
        regimes; and
            (3) any related recommendations.
    (c) Consideration of Report.--In drafting regulations affecting
biological deposits (including any modification of title 37, Code of
Federal Regulations, section 1.801 et seq.), the United States Patent
and Trademark Office shall consider the recommendations of the study
conducted under this section.

SEC. 4806. PRIOR INVENTION.

    Section 102(g) of title 35, United States Code, is amended to read
as follows:
    ``(g)(1) during the course of an interference conducted under
section 135 or section 291, another inventor involved therein
establishes, to the extent permitted in section 104, that before such
person's invention thereof the invention was made by such other
inventor and not abandoned, suppressed, or concealed, or (2) before
such person's invention thereof, the invention was made in this country
by another inventor who had not abandoned, suppressed, or concealed it.
In determining priority of invention under this subsection, there shall
be considered not only the respective dates of conception and reduction
to practice of the invention, but also the reasonable diligence of one
who was first to conceive and last to reduce to practice, from a time
prior to conception by the other.''.

SEC. 4807. PRIOR ART EXCLUSION FOR CERTAIN COMMONLY ASSIGNED PATENTS.

    (a) Prior Art Exclusion.--Section 103(c) of title 35, United States
Code, is amended by striking ``subsection (f) or (g)'' and inserting
``one or more of subsections (e), (f), and (g)''.
    (b) Effective Date.--The amendment made by this section shall apply
to any application for patent filed on or after the date of the
enactment of this Act.

SEC. 4808. EXCHANGE OF COPIES OF PATENTS WITH FOREIGN COUNTRIES.

    Section 12 of title 35, United States Code, is amended by adding at
the end the following: ``The Director shall not enter into an agreement
to provide such copies of specifications and drawings of United States
patents and applications to a foreign country, other than a NAFTA
country or a WTO member country, without the express authorization of
the Secretary of Commerce. For purposes of this section, the terms
`NAFTA country' and `WTO member country' have the meanings given those
terms in section 104(b).''.

                   TITLE V--MISCELLANEOUS PROVISIONS

SEC. 5001. COMMISSION ON ONLINE CHILD PROTECTION.

    (a) References.--Wherever in this section an amendment is expressed
in terms of an amendment to any provision, the reference shall be
considered to be made to such provision of section 1405 of the Child
Online Protection Act (47 U.S.C. 231 note).
    (b) Membership.--Subsection (b) is amended--
            (1) by striking paragraph (1) and inserting the following
        new paragraph:
            ``(1) Industry members.--The Commission shall include 16
        members who shall consist of representatives of--
                    ``(A) providers of Internet filtering or blocking
                services or software;
                    ``(B) Internet access services;
                    ``(C) labeling or ratings services;
                    ``(D) Internet portal or search services;
                    ``(E) domain name registration services;
                    ``(F) academic experts; and
                    ``(G) providers that make content available over
                the Internet.
        Of the members of the Commission by reason of this paragraph,
        an equal number shall be appointed by the Speaker of the House
        of Representatives and by the Majority Leader of the Senate.
        Members of the Commission appointed on or before October 31,
        1999, shall remain members.''; and
            (2) by adding at the end the following new paragraph:
            ``(3) Prohibition of pay.--Members of the Commission shall
        not receive any pay by reason of their membership on the
        Commission.''.
    (c) Extension of Reporting Deadline.--The matter in subsection (d)
that precedes paragraph (1) is amended by striking ``1 year'' and
inserting ``2 years''.
    (d) Termination.--Subsection (f) is amended by inserting before the
period at the end the following: ``or November 30, 2000, whichever
occurs earlier''.
    (e) First Meeting and Chairperson.--Section 1405 is amended--
            (1) by striking subsection (e);
            (2) by redesignating subsections (f) (as amended by the
        preceding provisions of this section) and (g) as subsections
        (l) and (m), respectively;
            (3) by redesignating subsections (c) and (d) (as amended by
        the preceding provisions of this section) as subsections (e)
        and (f), respectively; and
            (4) by inserting after subsection (b) the following new
        subsections:
    ``(c) First Meeting.--The Commission shall hold its first meeting
not later than March 31, 2000.
    ``(d) Chairperson.--The chairperson of the Commission shall be
elected by a vote of a majority of the members, which shall take place
not later than 30 days after the first meeting of the Commission.''.
    (f) Rules of the Commission.--Section 1405 is amended by inserting
after subsection (f) (as so redesignated by subsection (e)(3) of this
section) the following new subsection:
    ``(g) Rules of the Commission.--
            ``(1) Quorum.--Nine members of the Commission shall
        constitute a quorum for conducting the business of the
        Commission.
            ``(2) Meetings.--Any meetings held by the Commission shall
        be duly noticed at least 14 days in advance and shall be open
        to the public.
            ``(3) Opportunities to testify.--The Commission shall
        provide opportunities for representatives of the general public
        to testify.
            ``(4) Additional rules.--The Commission may adopt other
        rules as necessary to carry out this section.''.

SEC. 5002. PRIVACY PROTECTION FOR DONORS TO PUBLIC BROADCASTING
              ENTITIES.

    (a) Amendment.--Section 396(k) of the Communications Act of 1934
(47 U.S.C. 396(k)) is amended by adding at the end the following new
paragraph:
    ``(12) Funds may not be distributed under this subsection to any
public broadcasting entity that directly or indirectly--
            ``(A) rents contributor or donor names (or other personally
        identifiable information) to or from, or exchanges such names
        or information with, any Federal, State, or local candidate,
        political party, or political committee; or
            ``(B) discloses contributor or donor names, or other
        personally identifiable information, to any nonaffiliated third
        party unless--
                    ``(i) such entity clearly and conspicuously
                discloses to the contributor or donor that such
                information may be disclosed to such third party;
                    ``(ii) the contributor or donor is given the
                opportunity, before the time that such information is
                initially disclosed, to direct that such information
                not be disclosed to such third party; and
                    ``(iii) the contributor or donor is given an
                explanation of how the contributor or donor may
                exercise that nondisclosure option.''.
    (b) Effective Date.--The amendment made by subsection (a) shall
apply with respect to funds distributed on or after 6 months after the
date of the enactment of this Act.

SEC. 5003. COMPLETION OF BIENNIAL REGULATORY REVIEW.

    Within 180 days after the date of the enactment of this Act, the
Federal Communications Commission shall complete the first biennial
review required by section 202(h) of the Telecommunications Act of 1996
(Public Law 104-104; 110 Stat. 111).

SEC. 5004. PUBLIC BROADCASTING ENTITIES.

    (a) Civil Remittance of Damages.--Section 1203(c)(5)(B) of title
17, United States Code, is amended to read as follows:
                    ``(B) Nonprofit library, archives, educational
                institutions, or public broadcasting entities.--
                            ``(i) Definition.--In this subparagraph,
                        the term `public broadcasting entity' has the
                        meaning given such term under section 118(g).
                            ``(ii) In general.--In the case of a
                        nonprofit library, archives, educational
                        institution, or public broadcasting entity, the
                        court shall remit damages in any case in which
                        the library, archives, educational institution,
                        or public broadcasting entity sustains the
                        burden of proving, and the court finds, that
                        the library, archives, educational institution,
                        or public broadcasting entity was not aware and
                        had no reason to believe that its acts
                        constituted a violation.''.
    (b) Criminal Offenses and Penalties.--Section 1204(b) of title 17,
United States Code, is amended to read as follows:
    ``(b) Limitation for Nonprofit Library, Archives, Educational
Institution, or Public Broadcasting Entity.--
Subsection (a) shall not apply to a nonprofit library, archives,
educational institution, or public broadcasting entity (as defined
under section 118(g).''.

SEC. 5005. TECHNICAL AMENDMENTS RELATING TO VESSEL HULL DESIGN
              PROTECTION.

    (a) In General.--
            (1) Section 504(a) of the Digital Millennium Copyright Act
        (Public Law 105-304) is amended to read as follows:
    ``(a) In General.--Not later than November 1, 2003, the Register of
Copyrights and the Commissioner of Patents and Trademarks shall submit
to the Committees on the Judiciary of the Senate and the House of
Representatives a joint report evaluating the effect of the amendments
made by this title.''.
            (2) Section 505 of the Digital Millennium Copyright Act is
        amended by striking ``and shall remain in effect'' and all that
        follows through the end of the section and inserting a period.
            (3) Section 1301(b)(3) of title 17, United States Code, is
        amended to read as follows:
            ``(3) A `vessel' is a craft--
                    ``(A) that is designed and capable of independently
                steering a course on or through water through its own
                means of propulsion; and
                    ``(B) that is designed and capable of carrying and
                transporting one or more passengers.''.
            (4) Section 1313(c) of title 17, United States Code, is
        amended by adding at the end the following: ``Costs of the
        cancellation procedure under this subsection shall be borne by
        the nonprevailing party or parties, and the Administrator shall
        have the authority to assess and collect such costs.''.
    (b) Tariff Act of 1930.--Section 337 of the Tariff Act of 1930 (19
U.S.C. 1337) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (A), by striking ``and
                        (D)'' and inserting ``(D), and (E)''; and
                            (ii) by adding at the end the following:
                    ``(E) The importation into the United States, the
                sale for importation, or the sale within the United
                States after importation by the owner, importer, or
                consigner, of an article that constitutes infringement
                of the exclusive rights in a design protected under
                chapter 13 of title 17, United States Code.''; and
                    (B) in paragraphs (2) and (3), by striking ``or
                mask work'' and inserting ``mask work, or design''; and
            (2) in subsection (l), by striking ``or mask work'' each
        place it appears and inserting ``mask work, or design''.

SEC. 5006. INFORMAL RULEMAKING OF COPYRIGHT DETERMINATION.

    Section 1201(a)(1)(C) of title 17, United States Code, is amended
in the first sentence by striking ``on the record''.

SEC. 5007. SERVICE OF PROCESS FOR SURETY CORPORATIONS.

    Section 9306 of title 31, United States Code, is amended--
            (1) in subsection (a) by striking all beginning with
        ``designates a person by written power of attorney'' through
        the end of such subsection and inserting the following: ``has a
        resident agent for service of process for that district. The
        resident agent--
            ``(1) may be an official of the State, the District of
        Columbia, the territory or possession in which the court sits
        who is authorized or appointed under the law of the State,
        District, territory or possession to receive service of process
        on the corporation; or
            ``(2) may be an individual who resides in the jurisdiction
        of the district court for the district in which a surety bond
        is to be provided and who is appointed by the corporation as
        provided in subsection (b)''; and
            (2) in subsection (b) by striking ``The'' and inserting
        ``If the surety corporation meets the requirement of subsection
        (a) by appointing an individual under subsection (a)(2), the''.

SEC. 5008. LOW-POWER TELEVISION.

    (a) Short Title.--This section may be cited as the ``Community
Broadcasters Protection Act of 1999''.
    (b) Findings.--Congress finds the following:
            (1) Since the creation of low-power television licenses by
        the Federal Communications Commission, a small number of
        license holders have operated their stations in a manner
        beneficial to the public good providing broadcasting to their
        communities that would not otherwise be available.
            (2) These low-power broadcasters have operated their
        stations in a manner consistent with the programming objectives
        and hours of operation of full-power broadcasters providing
        worthwhile services to their respective communities while under
        severe license limitations compared to their full-power
        counterparts.
            (3) License limitations, particularly the temporary nature
        of the license, have blocked many low-power broadcasters from
        having access to capital, and have severely hampered their
        ability to continue to provide quality broadcasting,
        programming, or improvements.
            (4) The passage of the Telecommunications Act of 1996 has
        added to the uncertainty of the future status of these stations
        by the lack of specific provisions regarding the permanency of
        their licenses, or their treatment during the transition to
        high definition, digital television.
            (5) It is in the public interest to promote diversity in
        television programming such as that currently provided by low-
        power television stations to foreign-language communities.
    (c) Preservation of Low-Power Community Television Broadcasting.--
Section 336 of the Communications Act of 1934 (47 U.S.C. 336) is
amended--
            (1) by redesignating subsections (f) and (g) as subsections
        (g) and (h), respectively; and
            (2) by inserting after subsection (e) the following new
        subsection:
    ``(f) Preservation of Low-Power Community Television
Broadcasting.--
            ``(1) Creation of class a licenses.--
                    ``(A) Rulemaking Required.--Within 120 days after
                the date of the enactment of the Community Broadcasters
                Protection Act of 1999, the Commission shall prescribe
                regulations to establish a class A television license
                to be available to licensees of qualifying low-power
                television stations. Such regulations shall provide
                that--
                            ``(i) the license shall be subject to the
                        same license terms and renewal standards as the
                        licenses for full-power television stations
                        except as provided in this subsection; and
                            ``(ii) each such class A licensee shall be
                        accorded primary status as a television
                        broadcaster as long as the station continues to
                        meet the requirements for a qualifying low-
                        power station in paragraph (2).
                    ``(B) Notice to and certification by licensees.--
                Within 30 days after the date of the enactment of the
                Community Broadcasters Protection Act of 1999, the
                Commission shall send a notice to the licensees of all
                low-power televisions licenses that describes the
                requirements for class A designation. Within 60 days
                after such date of enactment, licensees intending to
                seek class A designation shall submit to the Commission
                a certification of eligibility based on the
                qualification requirements of this subsection. Absent a
                material deficiency, the Commission shall grant
                certification of eligibility to apply for class A
                status.
                    ``(C) Application for and award of licenses.--
                Consistent with the requirements set forth in paragraph
                (2)(A) of this subsection, a licensee may submit an
                application for class A designation under this
                paragraph within 30 days after final regulations are
                adopted under subparagraph (A) of this paragraph.
                Except as provided in paragraphs (6) and (7), the
                Commission shall, within 30 days after receipt of an
                application of a licensee of a qualifying low-power
                television station that is acceptable for filing, award
                such a class A television station license to such
                licensee.
                    ``(D) Resolution of technical problems.--The
                Commission shall act to preserve the service areas of
                low-power television licensees pending the final
                resolution of a class A application. If, after granting
                certification of eligibility for a class A license,
                technical problems arise requiring an engineering
                solution to a full-power station's allotted parameters
                or channel assignment in the digital television Table
                of Allotments, the Commission shall make such
                modifications as necessary--
                            ``(i) to ensure replication of the full-
                        power digital television applicant's service
                        area, as provided for in sections 73.622 and
                        73.623 of the Commission's regulations (47 CFR
                        73.622, 73.623); and
                            ``(ii) to permit maximization of a full-
                        power digital television applicant's service
                        area consistent with such sections 73.622 and
                        73.623,
                if such applicant has filed an application for
                maximization or a notice of its intent to seek such
                maximization by December 31, 1999, and filed a bona
                fide application for maximization by May 1, 2000. Any
                such applicant shall comply with all applicable
                Commission rules regarding the construction of digital
                television facilities.
                    ``(E) Change applications.--If a station that is
                awarded a construction permit to maximize or
                significantly enhance its digital television service
                area, later files a change application to reduce its
                digital television service area, the protected contour
                of that station shall be reduced in accordance with
                such change modification.
            ``(2) Qualifying low-power television stations.--For
        purposes of this subsection, a station is a qualifying low-
        power television station if--
                    ``(A)(i) during the 90 days preceding the date of
                the enactment of the Community Broadcasters Protection
                Act of 1999--
                            ``(I) such station broadcast a minimum of
                        18 hours per day;
                            ``(II) such station broadcast an average of
                        at least 3 hours per week of programming that
                        was produced within the market area served by
                        such station, or the market area served by a
                        group of commonly controlled low-power stations
                        that carry common local programming produced
                        within the market area served by such group;
                        and
                            ``(III) such station was in compliance with
                        the Commission's requirements applicable to
                        low-power television stations; and
                    ``(ii) from and after the date of its application
                for a class A license, the station is in compliance
                with the Commission's operating rules for full-power
                television stations; or
                    ``(B) the Commission determines that the public
                interest, convenience, and necessity would be served by
                treating the station as a qualifying low-power
                television station for purposes of this section, or for
                other reasons determined by the Commission.
            ``(3) Common ownership.--No low-power television station
        authorized as of the date of the enactment of the Community
        Broadcasters Protection Act of 1999 shall be disqualified for a
        class A license based on common ownership with any other medium
        of mass communication.
            ``(4) Issuance of licenses for advanced television services
        to television translator stations and qualifying low-power
        television stations.--The Commission is not required to issue
        any additional license for advanced television services to the
        licensee of a class A television station under this subsection,
        or to any licensee of any television translator station, but
        shall accept a license application for such services proposing
        facilities that will not cause interference to the service area
        of any other broadcast facility applied for, protected,
        permitted, or authorized on the date of filing of the advanced
        television application. Such new license or the original
        license of the applicant shall be forfeited after the end of
        the digital television service transition period, as determined
        by the Commission. A licensee of a low-power television station
        or television translator station may, at the option of
        licensee, elect to convert to the provision of advanced
        television services on its analog channel, but shall not be
        required to convert to digital operation until the end of such
        transition period.
            ``(5) No preemption of section 337.--Nothing in this
        subsection preempts or otherwise affects section 337 of this
        Act.
            ``(6) Interim qualification.--
                    ``(A) Stations operating within certain
                bandwidth.--The Commission may not grant a class A
                license to a low-power television station for operation
                between 698 and 806 megahertz, but the Commission shall
                provide to low-power television stations assigned to
                and temporarily operating in that bandwidth the
                opportunity to meet the qualification requirements for
                a class A license. If such a qualified applicant for a
                class A license is assigned a channel within the core
                spectrum (as such term is defined in MM Docket No. 87-
                286, February 17, 1998), the Commission shall issue a
                class A license simultaneously with the assignment of
                such channel.
                    ``(B) Certain channels off-limits.--The Commission
                may not grant under this subsection a class A license
                to a low-power television station operating on a
                channel within the core spectrum that includes any of
                the 175 additional channels referenced in paragraph 45
                of its February 23, 1998, Memorandum Opinion and Order
                on Reconsideration of the Sixth Report and Order (MM
                Docket No. 87-268). Within 18 months after the date of
                the enactment of the Community Broadcasters Protection
                Act of 1999, the Commission shall identify by channel,
                location, and applicable technical parameters those 175
                channels.
            ``(7) No interference requirement.--The Commission may not
        grant a class A license, nor approve a modification of a class
        A license, unless the applicant or licensee shows that the
        class A station for which the license or modification is sought
        will not cause--
                    ``(A) interference within--
                            ``(i) the predicted Grade B contour (as of
                        the date of the enactment of the Community
                        Broadcasters Protection Act of 1999, or
                        November 1, 1999, whichever is later, or as
                        proposed in a change application filed on or
                        before such date) of any television station
                        transmitting in analog format; or
                            ``(ii)(I) the digital television service
                        areas provided in the DTV Table of Allotments;
                        (II) the areas protected in the Commission's
                        digital television regulations (47 CFR
                        73.622(e) and (f)); (III) the digital
                        television service areas of stations
                        subsequently granted by the Commission prior to
                        the filing of a class A application; and (IV)
                        stations seeking to maximize power under the
                        Commission's rules, if such station has
                        complied with the notification requirements in
                        paragraph (1)(D);
                    ``(B) interference within the protected contour of
                any low-power television station or low-power
                television translator station that--
                            ``(i) was licensed prior to the date on
                        which the application for a class A license, or
                        for the modification of such a license, was
                        filed;
                            ``(ii) was authorized by construction
                        permit prior to such date; or
                            ``(iii) had a pending application that was
                        submitted prior to such date; or
                    ``(C) interference within the protected contour of
                80 miles from the geographic center of the areas listed
                in section 22.625(b)(1) or 90.303 of the Commission's
                regulations (47 CFR 22.625(b)(1) and 90.303) for
                frequencies in--
                            ``(i) the 470-512 megahertz band identified
                        in
                        section 22.621 or 90.303 of such regulations;
                        or
                            ``(ii) the 482-488 megahertz band in New
                        York.
            ``(8) Priority for displaced low-power stations.--Low-power
        stations that are displaced by an application filed under this
        section shall have priority over other low-power stations in
        the assignment of available channels.''.

                  TITLE VI--SUPERFUND RECYCLING EQUITY

SEC. 6001. SUPERFUND RECYCLING EQUITY.

    (a) Purposes.--The purposes of this section are--
            (1) to promote the reuse and recycling of scrap material in
        furtherance of the goals of waste minimization and natural
        resource conservation while protecting human health and the
        environment;
            (2) to create greater equity in the statutory treatment of
        recycled versus virgin materials; and
            (3) to remove the disincentives and impediments to
        recycling created as an unintended consequence of the 1980
        Superfund liability provisions.
    (b) Clarification of Liability Under CERCLA for Recycling
Transactions.--
            (1) Clarification.--Title I of the Comprehensive
        Environmental Response, Compensation, and Liability Act of 1980
        (42 U.S.C. 9601 et seq.) is amended by adding at the end the
        following new section:

``SEC. 127. RECYCLING TRANSACTIONS.

    ``(a) Liability Clarification.--
            ``(1) As provided in subsections (b), (c), (d), and (e), a
        person who arranged for recycling of recyclable material shall
        not be liable under sections 107(a)(3) and 107(a)(4) with
        respect to such material.
            ``(2) A determination whether or not any person shall be
        liable under section 107(a)(3) or section 107(a)(4) for any
        material that is not a recyclable material as that term is used
        in subsections (b) and (c), (d), or (e) of this section shall
        be made, without regard to subsections (b), (c), (d), or (e) of
        this section.
    ``(b) Recyclable Material Defined.--For purposes of this section,
the term `recyclable material' means scrap paper, scrap plastic, scrap
glass, scrap textiles, scrap rubber (other than whole tires), scrap
metal, or spent lead-acid, spent nickel-cadmium, and other spent
batteries, as well as minor amounts of material incident to or adhering
to the scrap material as a result of its normal and customary use prior
to becoming scrap; except that such term shall not include--
            ``(1) shipping containers of a capacity from 30 liters to
        3,000 liters, whether intact or not, having any hazardous
        substance (but not metal bits and pieces or hazardous substance
        that form an integral part of the container) contained in or
        adhering thereto; or
            ``(2) any item of material that contained polychlorinated
        biphenyls at a concentration in excess of 50 parts per million
        or any new standard promulgated pursuant to applicable Federal
        laws.
    ``(c) Transactions Involving Scrap Paper, Plastic, Glass, Textiles,
or Rubber.--Transactions involving scrap paper, scrap plastic, scrap
glass, scrap textiles, or scrap rubber (other than whole tires) shall
be deemed to be arranging for recycling if the person who arranged for
the transaction (by selling recyclable material or otherwise arranging
for the recycling of recyclable material) can demonstrate by a
preponderance of the evidence that all of the following criteria were
met at the time of the transaction:
            ``(1) The recyclable material met a commercial
        specification grade.
            ``(2) A market existed for the recyclable material.
            ``(3) A substantial portion of the recyclable material was
        made available for use as feedstock for the manufacture of a
        new saleable product.
            ``(4) The recyclable material could have been a replacement
        or substitute for a virgin raw material, or the product to be
        made from the recyclable material could have been a replacement
        or substitute for a product made, in whole or in part, from a
        virgin raw material.
            ``(5) For transactions occurring 90 days or more after the
        date of enactment of this section, the person exercised
        reasonable care to determine that the facility where the
        recyclable material was handled, processed, reclaimed, or
        otherwise managed by another person (hereinafter in this
        section referred to as a `consuming facility') was in
        compliance with substantive (not procedural or administrative)
        provisions of any Federal, State, or local environmental law or
        regulation, or compliance order or decree issued pursuant
        thereto, applicable to the handling, processing, reclamation,
        storage, or other management activities associated with
        recyclable material.
            ``(6) For purposes of this subsection, `reasonable care'
        shall be determined using criteria that include (but are not
        limited to)--
                    ``(A) the price paid in the recycling transaction;
                    ``(B) the ability of the person to detect the
                nature of the consuming facility's operations
                concerning its handling, processing, reclamation, or
                other management activities associated with recyclable
                material; and
                    ``(C) the result of inquiries made to the
                appropriate Federal, State, or local environmental
                agency (or agencies) regarding the consuming facility's
                past and current compliance with substantive (not
                procedural or administrative) provisions of any
                Federal, State, or local environmental law or
                regulation, or compliance order or decree issued
                pursuant thereto, applicable to the handling,
                processing, reclamation, storage, or other management
                activities associated with the recyclable material. For
                the purposes of this paragraph, a requirement to obtain
                a permit applicable to the handling, processing,
                reclamation, or other management activity associated
                with the recyclable materials shall be deemed to be a
                substantive provision.
    ``(d) Transactions Involving Scrap Metal.--
            ``(1) Transactions involving scrap metal shall be deemed to
        be arranging for recycling if the person who arranged for the
        transaction (by selling recyclable material or otherwise
        arranging for the recycling of recyclable material) can
        demonstrate by a preponderance of the evidence that at the time
        of the transaction--
                    ``(A) the person met the criteria set forth in
                subsection (c) with respect to the scrap metal;
                    ``(B) the person was in compliance with any
                applicable regulations or standards regarding the
                storage, transport, management, or other activities
                associated with the recycling of scrap metal that the
                Administrator promulgates under the Solid Waste
                Disposal Act subsequent to the enactment of this
                section and with regard to transactions occurring after
                the effective date of such regulations or standards;
                and
                    ``(C) the person did not melt the scrap metal prior
                to the transaction.
            ``(2) For purposes of paragraph (1)(C), melting of scrap
        metal does not include the thermal separation of 2 or more
        materials due to differences in their melting points (referred
        to as `sweating').
            ``(3) For purposes of this subsection, the term `scrap
        metal' means bits and pieces of metal parts (e.g., bars,
        turnings, rods, sheets, wire) or metal pieces that may be
        combined together with bolts or soldering (e.g., radiators,
        scrap automobiles, railroad box cars), which when worn or
        superfluous can be recycled, except for scrap metals that the
        Administrator excludes from this definition by regulation.
    ``(e) Transactions Involving Batteries.--Transactions involving
spent lead-acid batteries, spent nickel-cadmium batteries, or other
spent batteries shall be deemed to be arranging for recycling if the
person who arranged for the transaction (by selling recyclable material
or otherwise arranging for the recycling of recyclable material) can
demonstrate by a preponderance of the evidence that at the time of the
transaction--
            ``(1) the person met the criteria set forth in subsection
        (c) with respect to the spent lead-acid batteries, spent
        nickel-cadmium batteries, or other spent batteries, but the
        person did not recover the valuable components of such
        batteries; and
            ``(2)(A) with respect to transactions involving lead-acid
        batteries, the person was in compliance with applicable Federal
        environmental regulations or standards, and any amendments
        thereto, regarding the storage, transport, management, or other
        activities associated with the recycling of spent lead-acid
        batteries;
            ``(B) with respect to transactions involving nickel-cadmium
        batteries, Federal environmental regulations or standards are
        in effect regarding the storage, transport, management, or
        other activities associated with the recycling of spent nickel-
        cadmium batteries, and the person was in compliance with
        applicable regulations or standards or any amendments thereto;
        or
            ``(C) with respect to transactions involving other spent
        batteries, Federal environmental regulations or standards are
        in effect regarding the storage, transport, management, or
        other activities associated with the recycling of such
        batteries, and the person was in compliance with applicable
        regulations or standards or any amendments thereto.
    ``(f) Exclusions.--
            ``(1) The exemptions set forth in subsections (c), (d), and
        (e) shall not apply if--
                    ``(A) the person had an objectively reasonable
                basis to believe at the time of the recycling
                transaction--
                            ``(i) that the recyclable material would
                        not be recycled;
                            ``(ii) that the recyclable material would
                        be burned as fuel, or for energy recovery or
                        incineration; or
                            ``(iii) for transactions occurring before
                        90 days after the date of the enactment of this
                        section, that the consuming facility was not in
                        compliance with a substantive (not procedural
                        or administrative) provision of any Federal,
                        State, or local environmental law or
                        regulation, or compliance order or decree
                        issued pursuant thereto, applicable to the
                        handling, processing, reclamation, or other
                        management activities associated with the
                        recyclable material;
                    ``(B) the person had reason to believe that
                hazardous substances had been added to the recyclable
                material for purposes other than processing for
                recycling; or
                    ``(C) the person failed to exercise reasonable care
                with respect to the management and handling of the
                recyclable material (including adhering to customary
                industry practices current at the time of the recycling
                transaction designed to minimize, through source
                control, contamination of the recyclable material by
                hazardous substances).
            ``(2) For purposes of this subsection, an objectively
        reasonable basis for belief shall be determined using criteria
        that include (but are not limited to) the size of the person's
        business, customary industry practices (including customary
        industry practices current at the time of the recycling
        transaction designed to minimize, through source control,
        contamination of the recyclable material by hazardous
        substances), the price paid in the recycling transaction, and
        the ability of the person to detect the nature of the consuming
        facility's operations concerning its handling, processing,
        reclamation, or other management activities associated with the
        recyclable material.
            ``(3) For purposes of this subsection, a requirement to
        obtain a permit applicable to the handling, processing,
        reclamation, or other management activities associated with
        recyclable material shall be deemed to be a substantive
        provision.
    ``(g) Effect on Other Liability.--Nothing in this section shall be
deemed to affect the liability of a person under paragraph (1) or (2)
of section 107(a).
    ``(h) Regulations.--The Administrator has the authority, under
section 115, to promulgate additional regulations concerning this
section.
    ``(i) Effect on Pending or Concluded Actions.--The exemptions
provided in this section shall not affect any concluded judicial or
administrative action or any pending judicial action initiated by the
United States prior to enactment of this section.
    ``(j) Liability for Attorney's Fees for Certain Actions.--Any
person who commences an action in contribution against a person who is
not liable by operation of this section shall be liable to that person
for all reasonable costs of defending that action, including all
reasonable attorney's and expert witness fees.
    ``(k) Relationship to Liability Under Other Laws.--Nothing in this
section shall affect--
            ``(1) liability under any other Federal, State, or local
        statute or regulation promulgated pursuant to any such statute,
        including any requirements promulgated by the Administrator
        under the Solid Waste Disposal Act; or
            ``(2) the ability of the Administrator to promulgate
        regulations under any other statute, including the Solid Waste
        Disposal Act.
    ``(l) Limitation on Statutory Construction.--Nothing in this
section shall be construed to--
            ``(1) affect any defenses or liabilities of any person to
        whom subsection (a)(1) does not apply; or
            ``(2) create any presumption of liability against any
        person to whom subsection (a)(1) does not apply.''
            (2) Technical Amendment.--The table of contents for title I
        of such Act is amended by adding at the end the following item:

    ``Sec. 127. Recycling transactions.''.
                                 <all>
