[DOCID: f:s1720rs.txt]
Calendar No. 670
105th CONGRESS
2d Session
S. 1720
_______________________________________________________________________
A BILL
To amend title 17, United States Code, to reform the copyright law with
respect to satellite retransmissions of broadcast signals, and for
other purposes.
_______________________________________________________________________
October 1 (legislative day, September 29), 1998
Reported with an amendment
Calendar No. 670
105th CONGRESS
2d Session
S. 1720
To amend title 17, United States Code, to reform the copyright law with
respect to satellite retransmissions of broadcast signals, and for
other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 5, 1998
Mr. Hatch (for himself, Mr. Leahy, Mr. Kohl, and Mr. Jeffords),
introduced the following bill; which was read twice and referred to the
Committee on the Judiciary
October 1 (legislative day, September 29), 1998
Reported by Mr. Hatch, with an amendment
[Strike out all after the enacting clause and insert the part printed
in italic]
_______________________________________________________________________
A BILL
To amend title 17, United States Code, to reform the copyright law with
respect to satellite retransmissions of broadcast signals, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
<DELETED>SECTION 1. SHORT TITLE.</DELETED>
<DELETED> This Act may be cited as the ``Copyright Compulsory
License Improvement Act''.</DELETED>
<DELETED>SEC. 2. SECONDARY TRANSMISSIONS BY SATELLITE
CARRIERS.</DELETED>
<DELETED> Section 119 of title 17, United States Code, is amended--
</DELETED>
<DELETED> (1) by amending the section heading to read as
follows:</DELETED>
<DELETED>``Sec. 119. Limitations on exclusive rights: Secondary
transmissions by satellite carriers'';</DELETED>
<DELETED>and</DELETED>
<DELETED> (2) by striking subsection (a) and inserting the
following:</DELETED>
<DELETED> ``(a) Secondary Transmissions by Satellite Carriers for
Private Home Viewing.--</DELETED>
<DELETED> ``(1) Secondary transmissions of distant and local
broadcast signals subject to statutory licensing.--Subject to
the provisions of subsections (b) and (c) of this section and
section 114(d), a secondary transmission of a primary
transmission made by a television broadcast station licensed by
the Federal Communications Commission or by the Public
Broadcasting Service satellite feed and embodying a performance
or display of a work shall be subject to statutory licensing
under this section if--</DELETED>
<DELETED> ``(A) the secondary transmission is
permissible under the rules, regulations, and
authorizations of the Federal Communications Commission
and is made by a satellite carrier to the public for
private home viewing; and</DELETED>
<DELETED> ``(B) the carrier makes a direct or
indirect charge for each retransmission service to each
household receiving the secondary transmission or to a
distributor that has contracted with the carrier for
direct or indirect delivery of the secondary
transmission to the public for private home
viewing.</DELETED>
<DELETED> ``(2) Submission of subscriber lists to television
broadcast stations.--</DELETED>
<DELETED> ``(A) Initial lists.--A satellite carrier
that makes secondary transmissions of a primary
transmission of a television broadcast station pursuant
to paragraph (1) shall, within 90 days after commencing
such secondary transmissions, submit to that television
broadcast station--</DELETED>
<DELETED> ``(i) a list identifying all
subscribers within the designated market area
of that television broadcast station to whom
the satellite carrier has made such secondary
transmissions; and</DELETED>
<DELETED> ``(ii) a list of all television
broadcast stations whose primary transmissions
have been transmitted by the satellite carrier
to those subscribers during that 90-day
period.</DELETED>
<DELETED> ``(B) Subsequent lists.--After the
submission of the lists under subparagraph (A), the
satellite carrier shall, on the 15th day of each month,
submit to each television broadcast station--</DELETED>
<DELETED> ``(i) a list, which shall be
dated, that identifies the name of any
subscriber described in subparagraph (A) who
has been added or dropped since the last
submission under this paragraph; and</DELETED>
<DELETED> ``(ii) a list of all television
broadcast stations whose primary transmissions
have been added or dropped by the satellite
carrier since the last submission under this
paragraph</DELETED>
<DELETED> ``(C) Identifying information.--(i) Each
list of subscribers under this paragraph shall include
the name of each subscriber, together with the
subscriber's home address, which shall include the
street address or rural route as the case may be, city,
county, State, and zip code and, if different from the
subscriber's home address, the location of the
subscriber's satellite receiving dish to which the
secondary transmissions are made, identified by street
address or rural route as the case may be, city,
county, State, and zip code.</DELETED>
<DELETED> ``(ii) Each list of television broadcast
stations under this paragraph shall include the
station's call letters and community of
license.</DELETED>
<DELETED> ``(iii) Subscriber information submitted
under this paragraph may be used only for purposes of
monitoring compliance by the satellite carrier with
this section.</DELETED>
<DELETED> ``(3) Penalties for noncompliance with accounting
and royalty requirements.--Notwithstanding the provisions of
paragraph (1), the willful or repeated secondary transmission
to the public by a satellite carrier of a primary transmission
made by a television broadcast station licensed by the Federal
Communications Commission or by the Public Broadcasting Service
satellite feed and embodying a performance or display of a work
is actionable as an act of infringement under section 501, and
is fully subject to the remedies provided by sections 502
through 506 and 509, if the satellite carrier has not deposited
the statement of account and royalties fees required by
subsection (b), or has failed to make the submissions to
networks required by paragraph (2).</DELETED>
<DELETED> ``(4) Penalties for willful alterations of
programming.--Notwithstanding the provisions of paragraph (1),
the secondary transmission to the public by a satellite carrier
of a primary transmission made by a television broadcast
station licensed by the Federal Communications Commission or by
the Public Broadcasting Service satellite feed and embodying a
performance or display of a work is actionable as an act of
infringement under section 501, and is fully subject to the
remedies provided by section 502 through 506 and sections 509
and 510, if the content of the particular program in which the
performance or display is embodied, or any commercial
advertising or station announcement transmitted by the primary
transmitter during, or immediately before or after, the
transmission of such program, is in any way willfully altered
by the satellite carrier through changes, deletions, or
additions, or is combined with programming from any other
broadcast signal.</DELETED>
<DELETED> ``(5) Penalties for discrimination against
distributor.--Notwithstanding the provisions of paragraph (1),
the willful or repeated secondary transmission to the public by
a satellite carrier of a primary transmission made by a television
broadcast station licensed by the Federal Communications Commission or
by the Public Broadcasting Service satellite feed and embodying the
performance or display of a work is actionable as an act of
infringement under section 501, and is fully subject to the remedies
provided by sections 502 through 506 and 509, if the satellite carrier
unlawfully discriminates against a distributor.</DELETED>
<DELETED> ``(6) License limited to secondary transmissions
to households in the united states.--The statutory license
created by this section shall apply only to secondary
transmissions to households located in the United
States.''.</DELETED>
<DELETED>SEC. 3. STATUTORY LICENSE FOR SATELLITE CARRIERS.</DELETED>
<DELETED> Section 119 of title 17, United States Code, is amended by
striking subsection (b) and inserting the following:</DELETED>
<DELETED> ``(b) Statutory License for Secondary Transmissions for
Private Home Viewing.--</DELETED>
<DELETED> ``(1) Deposit of accounts and fees with register
of copyrights.--A satellite carrier whose secondary
transmissions are subject to statutory licensing under
subsection (a) shall, on a semiannual basis, deposit with the
Register of Copyrights, in accordance with requirements that
the Register shall prescribe by regulation--</DELETED>
<DELETED> ``(A) a statement of account, covering the
preceding 6-month period, specifying the names and
locations of all television broadcast stations whose
signals were retransmitted, and listing the Public
Broadcasting Service satellite feed, if carried, at any
time during that period, to subscribers for private
home viewing, the total number of subscribers that
received such retransmissions, and other such data as
the Register of Copyrights may from time to time
prescribe by regulation; and</DELETED>
<DELETED> ``(B) a royalty fee for that 6-month
period for each television broadcast station whose
primary transmission was retransmitted beyond the local
market of the station, and for the Public Broadcasting
Service satellite feed, if carried, computed by
multiplying the total number of subscribers receiving
the secondary transmission, and the number of
subscribers receiving a secondary transmission of the
Public Broadcasting Service satellite feed, during each
calendar month by the rate in effect for television
broadcast stations as determined under chapter 8 of
this title and section 8(c) of the Copyright Compulsory
License Improvement Act.</DELETED>
<DELETED> ``(2) Investment of fees.--The Register of
Copyrights shall receive all fees deposited under this section
and, after deducting the reasonable costs incurred by the
Copyright Office under this section (other than the costs
deducted under paragraph (4)), shall deposit the balance in the
Treasury of the United States, in such manner as the Secretary
of the Treasury directs. All funds held by the Secretary of the
Treasury shall be invested in interest-bearing securities of
the United States for later distribution with interest by the
Copyright Royalty Adjudication Board as provided in this title.
The Register may, four or more years after the close of any
calendar year, close out the account for royalty payments made
under this section for that calendar year (including payments
made under this section as in effect before the effective date
of the Copyright Compulsory License Improvement Act), and may
treat any funds remaining in such account and any subsequent
deposits that would otherwise be attributable to that calendar
year as attributable to the calendar year in which the account
is closed.</DELETED>
<DELETED> ``(3) Persons to whom fees are distributed.--The
royalty fees deposited under paragraph (2) shall, in accordance
with the procedures provided in paragraph (4), be distributed
to those copyright owners whose works were included in a
secondary transmission for private home viewing made by a
satellite carrier during the applicable 6-month accounting
period and who file a claim with the Board under paragraph
(4).</DELETED>
<DELETED> ``(4) Procedures for distribution.--The royalty
fees deposited under paragraph (2) shall be distributed in
accordance with the following procedures:</DELETED>
<DELETED> ``(A) Filing of claims for fees.--During
the month of July in each year, each person claiming to
be entitled to statutory license fees for secondary
transmissions for private home viewing shall file a
claim with the Copyright Royalty Adjudication Board, in
accordance with requirements that the Board shall
prescribe by regulation. For purposes of this
paragraph, any claimants may agree among themselves as
to the proportionate division of statutory license fees
among them, may lump their claims together and file them jointly or as
a single claim, or may designate a common agent to receive payment on
their behalf.</DELETED>
<DELETED> ``(B) Determination of controversy;
distributions.--After the first day of August of each
year, the Copyright Royalty Adjudication Board shall
determine whether there exists a controversy concerning
the distribution of royalty fees. If the Board
determines that no such controversy exists, the Board
shall, after deducting reasonable administrative costs
under this paragraph, distribute such fees to the
copyright owners entitled to receive them, or to their
designated agents. If the Board finds the existence of
a controversy, the Board shall, pursuant to chapter 8
of this title, conduct a proceeding to determine the
distribution of royalty fees.</DELETED>
<DELETED> ``(C) Withholding of fees during
controversy.--During the pendency of any proceeding
under this subsection, the Copyright Royalty
Adjudication Board shall withhold from distribution an
amount sufficient to satisfy all claims with respect to
which a controversy exists, but shall have discretion
to proceed to distribute any amounts that are not in
controversy. The action of the Board to distribute
royalty fees may precede the declaration of a
controversy if all parties to the proceeding file a
petition with the Board requesting such distribution,
except that such amount may not exceed 50 percent of
the amounts on hand at the time of the
request.''.</DELETED>
<DELETED>SEC. 4. DEFINITIONS.</DELETED>
<DELETED> Section 119 of title 17, United States Code, is amended by
striking subsection (d) and inserting the following:</DELETED>
<DELETED> ``(d) Definitions.--As used in this section--</DELETED>
<DELETED> ``(1) Designated market area.--The term
`designated market area' has the meaning given that term in
section 337(g) of the Communications Act of 1934.</DELETED>
<DELETED> ``(2) Distributor.--The term `distributor' means
an entity which contracts to distribute secondary transmissions
from a satellite carrier and, either as a single channel or in
a package with other programming, provides the secondary
transmission either directly to individual subscribers for
private home viewing or indirectly through other program
distribution entities.</DELETED>
<DELETED> ``(3) Local market.--The `local market' for a
television broadcast station has the meaning given that term in
section 337(g) of the Communications Act of 1934.</DELETED>
<DELETED> ``(4) Primary transmission.--The term `primary
transmission' has the meaning given that term in section 111(f)
of this title.</DELETED>
<DELETED> ``(5) Private home viewing.--The term `private
home viewing' means the viewing, for private use in a household
by means of satellite reception equipment which is operated by
an individual in that household and which serves only such
household, of a secondary transmission delivered by a satellite
carrier of a primary transmission of a television station
licensed by the Federal Communications Commission or of the
Public Broadcasting Service satellite feed.</DELETED>
<DELETED> ``(6) Public broadcasting service satellite
feed.--The term `Public Broadcasting Service satellite feed'
means the national satellite feed distributed by the Public
Broadcasting Service (other than the transmissions that may not
be encrypted under section 705(c) of the Communications Act of
1934), consisting of educational and informational programming
intended for private home viewing, to which the Public
Broadcasting Service holds national terrestrial broadcast
rights.</DELETED>
<DELETED> ``(7) Satellite carrier.--The term `satellite
carrier' means an entity that uses the facilities of a
satellite or satellite service licensed by the Federal
Communications Commission, and operates in the Fixed-Satellite
Service under part 25 of title 47, Code of Federal Regulations
(as in effect on February 1, 1998), or the Direct Broadcast
Satellite Service under part 100 of title 47, Code of Federal
Regulations (as in effect on February 1, 1998), to establish
and operate a channel of communications for point-to-multipoint
distribution of television station signals, and that owns or
leases a capacity or service on a satellite in order to provide
such point-to-multipoint distribution, except to the extent
that such entity provides such distribution pursuant to tariff
under the Communications Act of 1934, other than for private
home viewing.</DELETED>
<DELETED> ``(8) Secondary transmission.--The term `secondary
transmission' means the further transmitting of a primary
transmission simultaneously with the primary
transmission.</DELETED>
<DELETED> ``(9) Subscriber.--The term `subscriber' means an
individual who receives a secondary transmission service for
private home viewing by means of a secondary transmission from
a satellite carrier and pays a fee for the service, directly or
indirectly, to the satellite carrier or to a
distributor.</DELETED>
<DELETED> ``(10) Television broadcast station.--The term
`television broadcast station' means an over-the-air,
commercial or noncommercial television broadcast station
licensed by the Federal Communications Commission under subpart
E of part 73 of title 47, Code of Federal
Regulations.''.</DELETED>
<DELETED>SEC. 5. EXCLUSIVITY OF SECTION 119 OF TITLE 17, UNITED STATES
CODE.</DELETED>
<DELETED> Section 119 of title 17, United States Code, is amended by
adding at the end the following:</DELETED>
<DELETED> ``(e) Exclusivity for This Section With Respect to
Secondary Transmissions of Television Stations by Satellite to Members
of the Public.--No provision of section 111 of this title or any other
law (other than this section) shall be construed to contain any
authorization, exemption, or license through which secondary
transmissions by satellite carriers for private home viewing of
programming contained in a primary transmission may be made without
obtaining the consent of the copyright owner.''.</DELETED>
<DELETED>SEC. 6. CONFORMING AMENDMENT.</DELETED>
<DELETED> The table of contents for chapter 1 of title 17, United
States Code, is amended by striking the item relating to section 119
and inserting the following:</DELETED>
<DELETED>``119. Limitations on exclusive rights: Secondary
transmissions by satellite carriers.''.
<DELETED>SEC. 7. COPYRIGHT ROYALTY ADJUDICATION BOARD.</DELETED>
<DELETED> (a) Establishment and Functions.--Chapter 8 of title 17,
United States Code, is amended to read as follows:</DELETED>
<DELETED>``CHAPTER 8--COPYRIGHT ROYALTY ADJUDICATION BOARD</DELETED>
<DELETED>``Sec.
<DELETED>``801. Copyright Royalty Adjudication Board: establishment.
<DELETED>``802. Membership and qualifications of the Board.
<DELETED>``803. Selection of administrative copyright judges.
<DELETED>``804. Independence of the Board.
<DELETED>``805. Removal and sanction of administrative copyright
judges.
<DELETED>``806. Functions.
<DELETED>``807. Factors for determining royalty fees.
<DELETED>``808. Institution of proceedings.
<DELETED>``809. Conduct of proceedings.
<DELETED>``810. Judicial review.
<DELETED>``811. Administrative matters.
<DELETED>``812. Rule of construction.
<DELETED>``Sec. 801. Copyright Royalty Adjudication Board:
establishment</DELETED>
<DELETED> ``There is hereby established within the Copyright Office
the Copyright Royalty Adjudication Board (hereinafter referred to in
this chapter as the `Board').</DELETED>
<DELETED>``Sec. 802. Membership and qualifications of the
Board</DELETED>
<DELETED> ``(a) Membership.--</DELETED>
<DELETED> ``(1) In general.--The Board shall consist of 1
full-time chief administrative copyright judge, and such part-
time administrative copyright judges as the Librarian of
Congress, upon the recommendation of the Register of
Copyrights, finds necessary to conduct the business of the
Board in a timely manner. At no time shall the number of
authorized administrative copyright judges be less than 3 or
more than 5.</DELETED>
<DELETED> ``(2) Part-time administrative copyright judges.--
Chapter 34 of title 5 shall not apply to a part-time
administrative copyright judge. For purposes of this subsection
the Librarian of Congress shall promulgate regulations relating
to part-time employment of administrative copyright
judges.</DELETED>
<DELETED> ``(b) Qualifications.--</DELETED>
<DELETED> ``(1) Chief administrative copyright judge.--The
chief administrative copyright judge shall be an attorney with
10 or more years of legal practice with demonstrated experience
in administrative hearings or court trials and demonstrated
knowledge of copyright law.</DELETED>
<DELETED> ``(2) Other administrative copyright judges.--Each
administrative copyright judge, other than the chief
administrative copyright judge, shall be an individual with
expertise in the business and economics of industries affected
by the actions taken by the Board to carry out its
functions.</DELETED>
<DELETED> ``(c) Terms.--(1) The term of each administrative
copyright judge (including the chief administrative copyright judge)
shall be 5 years, except that, of the first administrative copyright
judges appointed, the Librarian of Congress, upon the recommendation of
the Register of Copyrights, shall appoint all but one of them to lesser
terms to establish a staggering of terms such that in any calendar year
no more than one term is due to expire.</DELETED>
<DELETED> ``(2) The term of each administrative copyright judge
(including the chief administrative copyright judge) shall begin when
the term of the predecessor of that member ends. An individual
appointed to fill the vacancy occurring before the expiration of the
term for which the predecessor of that individual was appointed shall
be appointed for the remainder of that term. When the term of office of
a member ends, the member may continue to serve until a successor is
selected.</DELETED>
<DELETED> ``(d) Compensation.--The compensation of the
administrative copyright judges shall be governed solely by the
provisions of section 5376 of title 5 and such regulations as the
Librarian of Congress may adopt that are not inconsistent with that
section. The compensation of the administrative copyright judges shall
not be subject to any regulations adopted by the Office of Personnel
Management pursuant to its authority under section 5376(b)(1) of title
5.</DELETED>
<DELETED>``Sec. 803. Selection of administrative copyright
judges</DELETED>
<DELETED> ``(a) Selection.--(1) The Librarian of Congress, upon the
recommendation of the Register of Copyrights, shall select the
administrative copyright judges (including the chief administrative
copyright judge) among individuals found qualified under section 802(b)
who meet the financial conflict of interest under section 805(a).
Notwithstanding any other provision of law and at the discretion of the
Librarian, the Librarian shall determine the method of selecting the
members.</DELETED>
<DELETED> ``(2) Administrative copyright judges previously selected
by the Librarian of Congress may be selected to serve additional terms.
There shall be no limit on the number of terms any individual may
serve.</DELETED>
<DELETED> ``(b) Effect of Vacancy.--In no event shall a vacancy in
the Board impair the right of the remaining administrative copyright
judges to exercise all of the powers of the Board.</DELETED>
<DELETED>``Sec. 804. Independence of the Board</DELETED>
<DELETED> ``(a) In General.--The Board shall have independence in
reaching its determinations concerning the adjustment of copyright
royalty rates, the distribution of copyright royalties, the acceptance
or rejection of royalty claims and rate adjustment petitions, and such
rulemaking functions as are delegated to it under this title.</DELETED>
<DELETED> ``(b) Performance Appraisals.--Notwithstanding any other
provision of law or any regulation of the Library of Congress, no
administrative copyright judge shall receive an annual performance
appraisal.</DELETED>
<DELETED> ``(c) Inconsistent Duties Barred.--No administrative
copyright judge may be assigned duties inconsistent with his or her
duties and responsibilities as a administrative copyright
judge.</DELETED>
<DELETED>``Sec. 805. Removal and sanction of administrative copyright
judges</DELETED>
<DELETED> ``(a) Standards of Conduct.--The Librarian of Congress,
upon the recommendation of the Register of Copyrights, shall adopt
regulations regarding the standards of conduct, including financial
conflict of interest and restrictions against ex parte communications,
which shall govern the administrative copyright judges and the
proceedings under this chapter.</DELETED>
<DELETED> ``(b) Removal or Sanction.--The Librarian of Congress,
upon the recommendation of the Register of Copyrights, may remove or
sanction an administrative copyright judge for violation of the
standards of conduct adopted under subsection (a), misconduct, neglect
of duty, or any disqualifying physical or mental disability. Any such
removal or sanction may be made only after notice and opportunity for
hearing, but the Librarian of Congress, upon the recommendation of the
Register of Copyrights, may suspend the administrative copyright judge
during the pendency of such hearing.</DELETED>
<DELETED>``Sec. 806. Functions</DELETED>
<DELETED> ``Subject to the provisions of this chapter, the functions
of the Board shall be--</DELETED>
<DELETED> ``(1) to make determinations concerning the
adjustment of reasonable copyright royalty rates for--
</DELETED>
<DELETED> ``(A) secondary transmissions to the
public by a cable system of a primary transmission as
provided in section 111;</DELETED>
<DELETED> ``(B) the making and distributing of
phonorecords by means other than digital phonorecord
delivery, as provided in section 115;</DELETED>
<DELETED> ``(C) secondary transmissions to the
public by a satellite carrier of a primary transmission
made by a television broadcast station and the Public
Broadcasting Service satellite feed as provided in
section 119; and</DELETED>
<DELETED> ``(D) each digital audio recording device
imported into and distributed in the United States or
manufactured and distributed into the United States as
provided in section 1004;</DELETED>
<DELETED> ``(2) to make determinations as to reasonable
rates and terms of royalty payments for--</DELETED>
<DELETED> ``(A) the public performance of a sound
recording by means of a digital audio transmission as
provided in section 114;</DELETED>
<DELETED> ``(B) the making and distribution of
phonorecords by means of a digital phonorecord delivery
as provided in section 115;</DELETED>
<DELETED> ``(C) the public performance of
nondramatic musical works by means of coin-operated
phonorecord players as provided in section 116;
and</DELETED>
<DELETED> ``(D) the use of nondramatic musical works
and pictorial, graphic, and sculptural works by public
broadcasting entities as provided in section
118;</DELETED>
<DELETED> ``(3) to accept or reject royalty claims filed
under sections 111, 119, and 1007, on the basis of timeliness
or the failure to establish the basis for a claim;</DELETED>
<DELETED> ``(4) to determine, in cases where controversy
exists, the distribution of royalty fees deposited with the
Register of Copyrights under sections 111, 119, and
1003;</DELETED>
<DELETED> ``(5) to determine the status of a digital audio
recording device or a digital audio interface device under
sections 1002 and 1003, as provided in section 1010;
and</DELETED>
<DELETED> ``(6) to engage in such rulemaking as is expressly
provided in sections 111, 114, 115, 118, and 119.</DELETED>
<DELETED>``Sec. 807. Factors for determining royalty fees</DELETED>
<DELETED> ``(a) For Cable Rates.--The rates applicable under section
111 shall be calculated solely in accordance with the following
provisions:</DELETED>
<DELETED> ``(1) The rates established by section
111(d)(1)(B) may be adjusted to reflect--</DELETED>
<DELETED> ``(A) national monetary inflation or
deflation, or</DELETED>
<DELETED> ``(B) changes in the average rates charged
cable subscribers for the basic service of providing
secondary transmissions to maintain the real constant
dollar level of the royalty fee per subscriber which
existed as of October 19, 1976, except that--</DELETED>
<DELETED> ``(i) if the average rates charged
cable system subscribers for the basic service
of providing secondary transmissions are
changed so that the average rates exceed
national monetary inflation, no change in the
rates established by section 111(d)(1)(B) shall
be permitted; and</DELETED>
<DELETED> ``(ii) no increase in the royalty
fee shall be permitted based on any reduction
in the average number of distant signal
equivalents per subscriber.</DELETED>
<DELETED>The Board may consider all factors relating to the
maintenance of such level of payments including, as an
extenuating factor, whether the cable industry has been
restrained by subscriber rate regulating authorities from
increasing the rates for the basic service of providing
secondary transmissions.</DELETED>
<DELETED> ``(2) In the event that the rules and regulations
of the Federal Communications Commission are amended at any
time after April 15, 1976, to permit the carriage by cable
systems of additional television broadcasting signals beyond
the local service area of the primary transmitters of such
signals, the royalty rates established by section 111(d)(1)(B)
may be adjusted to insure that the rates for the additional
distant signal equivalents resulting from such carriage are
reasonable in light of the changes effected by the amendment to
such rules and regulations. In determining the reasonableness of rates
proposed following an amendment of Federal Communications Commission
rules and regulations, the Board shall consider, among other factors,
the economic impact on copyright owners and users, except that no
adjustment in royalty rates shall be made under this paragraph with
respect to any distant signal equivalent or fraction thereof
represented by--</DELETED>
<DELETED> ``(A) carriage of any signal permitted
under the rules and regulations of the Federal
Communications Commission in effect on April 15, 1976,
or the carriage of a signal of the same type (that is,
independent, network, or noncommercial educational)
substituted for such permitted signal, or</DELETED>
<DELETED> ``(B) a television broadcast signal first
carried after April 15 1976, pursuant to an individual
waiver of the rules and regulations of the Federal
Communications Commission, as such rules and
regulations were in effect on April 15, 1976.</DELETED>
<DELETED> ``(3) In the event of any change in the rules and
regulations of the Federal Communications Commission with
respect to syndicated and sport program exclusivity after April
15, 1976, the rates established by section 111(d)(1)(B) may be
adjusted to assure that such rates are reasonable in light of
the changes to such rules and regulations, but any such
adjustment shall apply only to the affected television
broadcast signals carried on those systems affected by the
change.</DELETED>
<DELETED> ``(4) The gross receipts limitations established
by section 111(d)(1)(C) and (D) shall be adjusted to reflect
national monetary inflation or deflation or changes in the
average rates charged cable system subscribers for the basic
service of providing secondary transmissions to maintain the
real constant dollar value of the exemption provided by such
section, and the royalty rate specified therein shall not be
subject to adjustment.</DELETED>
<DELETED> ``(b) For Rates Other Than Cable or Satellite Carriers.--
The rates applicable under sections 114, 115, and 116 shall be
calculated to achieve the following objectives:</DELETED>
<DELETED> ``(1) To maximize the availability of creative
works to the public.</DELETED>
<DELETED> ``(2) To afford the copyright owner a fair return
for his or her creative work and the copyright user a fair
income under existing economic conditions.</DELETED>
<DELETED> ``(3) To reflect the relative roles of the
copyright owner and the copyright user in the product made
available to the public with respect to relative creative
contribution, technological contribution, capital investment,
cost, risk, and contribution to the opening of new markets for
creative expression and media for their
communications.</DELETED>
<DELETED> ``(4) To minimize any disruptive impact on the
structure of the industries involved and on generally
prevailing industry practices.</DELETED>
<DELETED> ``(c) For Rates for Noncommercial Broadcasting.--The rates
applicable under section 118 shall be calculated to achieve reasonable
rates. In determining reasonable rates, the Board shall base its
decision so as to--</DELETED>
<DELETED> ``(1) assure a fair return to copyright
owners;</DELETED>
<DELETED> ``(2) encourage the growth and development of
public broadcasting; and</DELETED>
<DELETED> ``(3) encourage musical and artistic
creation.</DELETED>
<DELETED> ``(d) Rates for Satellite Carriers.--The rates applicable
under section 119 shall be calculated to represent most clearly the
fair market value of secondary transmissions. In determining the fair
market value, the Board shall base its decision on economic,
competitive, and programming information presented by the parties,
including--</DELETED>
<DELETED> ``(1) the competitive environment in which such
programming is distributed, the cost for similar signals in
similar private and compulsory license marketplaces, and any
special features and conditions of the retransmission
marketplace;</DELETED>
<DELETED> ``(2) the economic impact of such fees on
copyright owners and satellite carriers; and</DELETED>
<DELETED> ``(3) the impact on the continued availability of
secondary transmissions to the public.</DELETED>
<DELETED>``Sec. 808. Institution of proceedings</DELETED>
<DELETED> ``(a) Petition Required To Institute Proceedings.--With
respect to proceedings concerning the adjustment of royalty rates as
provided in sections 111, 114, 115, 116, and 119, during the calendar
years or under the circumstances specified in the schedule set forth in
subsection (c), any owner or user of a copyrighted work whose royalty
rates are to be established or adjusted by the Board may file a
petition with the Board declaring that the petitioner requests an
adjustment of the rate. The Board shall make a determination as to
whether the petitioner has a significant interest in the royalty rate
in which an adjustment is requested. If the Board determines that the
petitioner has a significant interest, the Board shall cause notice of
this determination, with the reasons therefor, to be published in the
Federal Register, together with the notice of commencement of
proceedings under this chapter. With respect to proceedings concerning
the adjustment of royalty rates under section 1004, any interested
copyright party may petition the Board as provided in that
section.</DELETED>
<DELETED> ``(b) Petition Not Required To Institute Proceedings.--
With respect to proceedings concerning the adjustment of royalty rates
as provided in section 118 and the distribution of royalties as
provided in section 111, 119, and 1007, no petition is required to
institute proceedings. All proceedings concerning the adjustment of
rates under section 118 shall commence as provided in section 118(c) of
this title. All proceedings concerning the distribution of royalties
under section 111, 119, or 1007 shall commence as provided in such
sections and in subsection (c)(8) of this section.</DELETED>
<DELETED> ``(c) Schedule of Proceedings.--</DELETED>
<DELETED> ``(1) Section 111 proceedings.--In proceedings
concerning the adjustment of royalty rates as provided in
section 111, a petition described in subsection (a) may be
filed during the year 2000 and in each subsequent fifth
calendar year, except that in the event that the rules and
regulations of the Federal Communications Commission are
amended with respect to distant signal importation, or to
syndicated and sports program exclusivity, any owner or user of
a copyrighted work subject to the royalty rates established or
adjusted pursuant to section 111 may, within 12 months after
such amendments take effect, file a petition with the Board to
institute proceedings to insure that the rates are reasonable
in light of the changes to such rules and regulations. Any such
adjustments shall apply only to the affected television
broadcast signals carried on those systems affected by the
change. Any change in royalty rates made pursuant to this
subsection may be reconsidered in the year 2000, and each fifth
calendar year thereafter, as the case may be.</DELETED>
<DELETED> ``(2) Section 114 proceedings.--In proceedings
concerning the adjustment of royalty rates and terms as
provided in section 114, the Board shall proceed when and as
provided by that section.</DELETED>
<DELETED> ``(3) Section 115 proceedings.--In proceedings
concerning the adjustment of royalty rates and terms as
provided in section 115, a petition described in subsection (a)
may be filed in the year 2007 and in each subsequent tenth
calendar year or as prescribed in section 115(c)(3).</DELETED>
<DELETED> ``(4) Section 116 proceedings.--(A) In proceedings
concerning the adjustment of royalty rates as provided in
section 116, a petition described in subsection (a) may be
filed at any time within 1 year after negotiated licenses
authorized by section 116 are terminated or expire or are not
replaced by subsequent agreements.</DELETED>
<DELETED> ``(B) If a negotiated license authorized by
section 116 is terminated or expires and is not replaced by
another such license agreement which provides permission to use
a quantity of musical works not substantially smaller than the
quantity of such works performed on coin-operated phonorecord
players during the 1-year period ending March 1, 1989, the
Board, upon petition filed under subsection (a) within 1 year
after such termination or expiration, shall promptly establish
an interim royalty rate or rates for the public performance by
means of a coin-operated phonorecord player of nondramatic
musical works embodied in phonorecords which had been subject
to the terminated or expired negotiated license agreement. Such
rate or rates shall be the same as the last such rate or rates
and shall remain in force until the conclusion of the
proceedings to adjust the royalty rates applicable to such
works, or until superseded by a new negotiated license
agreement, as provided in section 116(b).</DELETED>
<DELETED> ``(5) Section 118 proceedings.--In proceedings
concerning the adjustment of royalty rates and terms as
provided in section 118, the Board shall proceed when and as
provided by that section.</DELETED>
<DELETED> ``(6) Section 119 proceedings.--In proceedings
concerning the adjustment of royalty rates governing secondary
transmissions of as provided in section 119, a petition
described in subsection (a) may be filed during the year 2001
and in each subsequent fifth calendar year.</DELETED>
<DELETED> ``(7) Proceedings concerning distribution of
royalty fees.--In proceedings concerning the distribution of
royalty fees under section 111, 119, or 1007, the Board shall,
upon a determination that a controversy exists concerning such
distribution, cause to be published in the Federal Register
notice of commencement of proceedings under this
chapter.</DELETED>
<DELETED>``Sec. 809. Conduct of proceedings</DELETED>
<DELETED> ``(a) Board Proceedings.--The Board shall, for the
purposes of making its determinations in carrying out the functions set
forth in section 806, conduct proceedings subject to subchapter II of
chapter 5 of title 5.</DELETED>
<DELETED> ``(b) Procedures.--Subject to the approval of the Register
of Copyrights, the Board, shall adopt regulations to govern the conduct
of the proceedings of the Board. The regulations shall include, but not
be limited to, provisions for--</DELETED>
<DELETED> ``(1) public access to and inspection of the
records of the Board pursuant to section 706;</DELETED>
<DELETED> ``(2) the right of the public to attend the
proceedings of the Board;</DELETED>
<DELETED> ``(3) the procedures to apply when formal hearings
are conducted; and</DELETED>
<DELETED> ``(4) the procedures to apply and the basis upon
which distribution or royalty controversies may be decided on
the basis of written pleadings.</DELETED>
<DELETED> ``(c) Participation of Copyright Office.--During the
conduct of proceedings, the Register of Copyrights may file formally
with the Board the position of the Copyright Office on any matter
before the Board. Such filings shall be served on all parties to the
proceeding. The Board may accept or reject the position of the
Copyright Office.</DELETED>
<DELETED> ``(d) Majority Rule.--The Board shall act in all
procedural and substantive matters on the basis of majority
rule.</DELETED>
<DELETED> ``(e) Number of Presiding Judges.--The Board shall decide,
in its discretion, whether 1 or 3 administrative copyright judges shall
preside in a royalty distribution or rate adjustment proceeding. In no
event shall the number of presiding administrative copyright judges be
more than 3.</DELETED>
<DELETED> ``(f) Participation of Parties.--Any copyright owner who
has filed an acceptable claim claiming entitlement to the distribution
of royalties, or any copyright owner or user who would be affected by a
royalty rate to be established or adjusted by the Board, may submit
relevant information and proposals to the Board in proceedings
applicable to the interest of the copyright owner or user.</DELETED>
<DELETED> ``(g) Time Limits for Initial Decision.--Proceedings under
section 118 operate under the time limits established in that section.
For all other proceedings, if 1 administrative copyright judge is
presiding in a proceeding, the Board shall issue its initial decision
to the parties to the proceeding and the Register of Copyrights within
6 months after the declaration of a controversy in the proceeding. If
more than 1 administrative copyright judge is presiding in a
proceeding, the Board shall issue its initial decision to the parties
to the proceeding and the Register of Copyrights within 1 year after
the declaration of a controversy in the proceeding.</DELETED>
<DELETED> ``(h) Requirements for Initial Decisions.--The initial
decision under subsection (g) shall include a statement of findings and
conclusions and the reasons or basis therefor, on all the material
issues of fact, law, or discretion presented on the record. The initial
decision shall take into account prior decisions of the Copyright
Royalty Tribunal, prior decisions of copyright arbitration royalty
panels, as adopted or modified by the Librarian of Congress, and the
procedural and evidentiary rulings the Librarian of Congress made that
were applicable to the proceedings of the copyright arbitration royalty
panels. Notwithstanding any provision of section 603 or 604 of title 5,
neither the initial decision nor the final decision is required to
include a regulatory flexibility analysis.</DELETED>
<DELETED> ``(i) Petitions for Reconsideration and Final Agency
Action.--Any party to the proceeding concerned or the Register of
Copyrights may petition the Board to reconsider its initial decision in
the proceeding. If there are no petitions for reconsideration, the
initial decision becomes the final decision of the Board without
further proceedings. If there are petitions for reconsideration, the
Board shall issue a final decision to the parties to the proceeding and
the Register of Copyrights which shall constitute final agency action.
The time period by which parties to the proceeding or the Register of
Copyrights may file a petition for reconsideration and the time period
by which the Board shall render its final decision shall be established
by regulation by the Board, subject to the approval of the Register of
Copyrights.</DELETED>
<DELETED>``Sec. 810. Judicial review</DELETED>
<DELETED> ``(a) Appeals.--Within 1 week after the Board issues a
final decision under section 809, or, if there are no petitions for
reconsideration, within 1 week after the time the initial decision of
the Board under section 809 becomes the final decision, the Board shall
cause to be published in the Federal Register the decision of the rate
adjustment or the royalty distribution, as the case may be. Any
aggrieved party who would be bound by the final decision may appeal the
decision to the United States Court of Appeals for the Federal Circuit
within 30 days after the publication of the decision in the Federal
Register. In any appeal to which the Board is a party, the chief
administrative copyright judge shall refer the conduct of the
litigation in defense of the Board's decision to the Department of
Justice which shall have the authority to represent the Board under
section 516 of title 28. If no appeal is brought within such 30-day
period, the decision of the Board is final, and the royalty fee or
determination with respect to the distribution of fees, as the case may
be, shall take effect as set forth in the decision. The pendency of an
appeal under this subsection shall not relieve persons who would be
affected by the determinations on appeal under section 111, 114, 115,
116, 118, 119, or 1003, of the obligation to deposit the statement of
account or to pay royalty fees specified in those sections.</DELETED>
<DELETED> ``(b) Review Subject to Chapter 7 of Title 5.--The
judicial review of the Board's final decision shall be had, in
accordance with chapter 7 of title 5, on the basis of the record before
the Board.</DELETED>
<DELETED>``Sec. 811. Administrative matters</DELETED>
<DELETED> ``(a) Administrative Support.--The Library of Congress,
upon the recommendation of the Register of Copyrights, shall provide
the Board with the necessary administrative services and personnel
related to proceedings under this title.</DELETED>
<DELETED> ``(b) Authority To Publish in Federal Register.--The
actions of the Board which may be published in the Federal Register by
and under the authority of the Board include--</DELETED>
<DELETED> ``(1) actions of the Board required to be
published in the Federal Register under this title;</DELETED>
<DELETED> ``(2) actions of the Board required to be
published in the Federal Register under regulations adopted by
the Board upon the approval of the Register of Copyrights;
and</DELETED>
<DELETED> ``(3) regulations of the Board required to be
published in the Federal Register to which the Board has been
delegated the exclusive right to adopt.</DELETED>
<DELETED> ``(c) Collection and Use of Fees.--</DELETED>
<DELETED> ``(1) Deduction of costs from fees.--The Librarian
of Congress and the Register of Copyrights may, to the extent
not otherwise provided under this title, deduct from the
royalty fees deposited or fees collected under this title the
reasonable costs incurred by the Library of Congress and the
Copyright Office under this chapter. Such deduction may be made
before the fees are distributed to any copyright
owner.</DELETED>
<DELETED> ``(2) Collection of fees.--The Register of
Copyrights may impose and collect fees in advance to carry out
the ratemaking proceedings. All fees received under this
section shall be deposited by the Register of Copyrights in the
Treasury of the United States and shall be credited to the
appropriations for necessary expenses of the Copyright Office.
Such fees that are collected shall remain available until
expended. The Register may refund any sum paid by mistake or in
excess of the fee required under this section.</DELETED>
<DELETED> ``(d) Positions Required for Administration of Compulsory
Licensing.--Section 307 of the Legislative Branch Appropriations Act of
1994 shall not apply to the members of the Board, employee positions in
the Board, or employee positions in the Library of Congress that are
required to be filled in order to carry out section 111, 114, 115, 116,
118, or 119 or chapter 10.</DELETED>
<DELETED> ``(e) Budget.--In each annual request for appropriations,
the Register of Copyrights shall identify the portion thereof intended
for the support of the Board and a statement which shall include an
assessment of the budgetary needs of the Board.</DELETED>
<DELETED> ``(f) Annual Report.--The Board shall prepare an annual
report of its work and accomplishments during each fiscal year, which
the Register of Copyrights shall include in the annual report required
under section 701(c).</DELETED>
<DELETED>``Sec. 812. Rule of construction</DELETED>
<DELETED> ``Nothing in this chapter shall be construed to affect the
authority of the Register of Copyrights to establish regulations under
sections 701 and 702.''.</DELETED>
<DELETED> (b) Technical and Conforming Amendments.--</DELETED>
<DELETED> (1) Table of chapters.--The item relating to
chapter 8 in the table of chapters for title 17, United States
Code, is amended to read as follows:</DELETED>
<DELETED>``8. Copyright Royalty Adjudication Board.......... 801''.
<DELETED> (2) Jurisdiction of federal circuit.--Section
1295(a) of title 28, United States Code, is amended--</DELETED>
<DELETED> (A) in paragraph (13) by striking ``and''
after the semicolon;</DELETED>
<DELETED> (B) in paragraph (14) by striking the
period and inserting a semicolon and ``and '';
and</DELETED>
<DELETED> (C) by adding at the end the following new
paragraph:</DELETED>
<DELETED> ``(15) of an appeal from a final decision of the
Copyright Royalty Adjudication Board under sections 809(i) and
810 of title 17.''.</DELETED>
<DELETED>SEC. 8. TRANSITION PROVISIONS.</DELETED>
<DELETED> (a) Transitional Procedures.--During the period beginning
on the date of the enactment of this Act and ending on the effective
date of this Act, the Register of Copyrights shall adopt regulations to
govern proceedings under chapter 8 of title 17, United States Code, as
amended by section 7 of this Act. Such regulations shall remain in
effect unless and until the Copyright Royalty Adjudication Board, upon
the approval of the Register of Copyrights, adopts supplemental or
superseding regulations pursuant to section 809(b) of title 17, United
States Code.</DELETED>
<DELETED> (b) Proceedings in Progress.--</DELETED>
<DELETED> (1) Copyright arbitration royalty panel
proceedings.--Unless the Register of Copyrights, for good
cause, finds otherwise, proceedings in which a copyright
arbitration royalty panel has been convened by the Librarian of
Congress under chapter 8 of title 17, United States Code, as in
effect before the effective date of this Act, shall continue in
effect and shall be governed under chapter 8 of such title, and
applicable regulations, as in effect prior to such effective
date, and proceedings in which a copyright arbitration royalty
panel has not been convened by the Librarian of Congress under
chapter 8 of title 17, United States Code, before the effective
date of this Act shall be suspended and recommenced under the
amendments made by section 7.</DELETED>
<DELETED> (2) Continued proceedings.--For those proceedings
continued under paragraph (1), the functions of the Librarian
of Congress and the Register of Copyrights relating to the
report of the copyright arbitration royalty panel under title
17, United States Code, as in effect before the effective date
of this Act, may, in the Librarian's discretion, upon the
recommendation of the Register of Copyrights, be delegated to
the Copyright Royalty Adjudication Board, when
constituted.</DELETED>
<DELETED> (3) Appeals.--In any appeal of a decision of the
Librarian of Congress adopting or rejecting a determination of
a copyright arbitration royalty panel which is pending in the
United States Court of Appeals for the District of Columbia
Circuit on or after the effective date of this Act, if such
case is remanded by the court, the Librarian of Congress shall
not reconvene the copyright arbitration royalty panel which
rendered the determination, but shall direct the Copyright
Royalty Adjudication Board, when constituted, to conduct
proceedings in accordance with the directions of the court. If
the case is remanded by the court after the enactment date of
this Act but before the effective date of this Act, the
Librarian of Congress shall have the discretion to reconvene
the copyright arbitration royalty panel which rendered the
determination, or direct the Copyright Royalty Adjudication
Board when constituted, to conduct proceedings in accordance
with the directions of the court.</DELETED>
<DELETED> (c) Effectiveness of Existing Rates and Distributions.--
All royalty rates and all determinations with respect to the
proportionate division of compulsory license fees among copyright
claimants, whether made by the Copyright Royalty Tribunal, copyright
arbitration royalty panels, or by voluntary agreement, before the
effective date of this Act, shall remain in effect until modified by
voluntary agreement or pursuant to the amendments made by this
Act.</DELETED>
<DELETED> (d) Transfer of Appropriations.--All unexpended balances
of appropriations made by the Copyright Office for the support of the
copyright arbitration royalty panels, as of the effective date of this
Act, are transferred on such effective date to the support of the
Copyright Royalty Arbitration Board for the purposes for which such
appropriations were made except that, in the event that any copyright
arbitration royalty panels continue to operate after the effective date
of this Act, the Register of Copyrights shall retain such portions of
the unexpended balances of appropriations as are necessary to support
the continuing copyright arbitration royalty panels.</DELETED>
<DELETED>SEC. 9. AMENDMENTS TO OTHER PROVISIONS OF TITLE 17, UNITED
STATES CODE.</DELETED>
<DELETED> (a) Secondary Transmissions by Cable Systems.--Section
111(d) of title 17, United States Code, is amended--</DELETED>
<DELETED> (1) in paragraph (2) in the last sentence by
striking ``Librarian of Congress'' and all that follows through
the end of the sentence and inserting the following:
``Copyright Royalty Adjudication Board as provided in this
title. The Register of Copyrights may, 4 or more years after
the close of any calendar year, close out the account for
royalty payments made for that calendar year, and may treat any
funds remaining the such account and any subsequent deposits
that would otherwise be attributable to that calendar year as
attributable to the succeeding calendar year.''; and</DELETED>
<DELETED> (2) in paragraph (4)--</DELETED>
<DELETED> (A) in subparagraph (A)--</DELETED>
<DELETED> (i) by striking ``Librarian of
Congress'' the first place it appears and
inserting ``Copyright Royalty Adjudication
Board''; and</DELETED>
<DELETED> (ii) by striking ``Librarian of
Congress'' the second place it appears and
inserting ``Board'';</DELETED>
<DELETED> (B) in subparagraph (B)--</DELETED>
<DELETED> (i) by striking ``Librarian of
Congress shall, upon the recommendation of the
Register of Copyrights'' and inserting
``Copyright Royalty Adjudication Board
shall'';</DELETED>
<DELETED> (ii) by striking ``Librarian''
each subsequent place it appears and inserting
``Board''; and</DELETED>
<DELETED> (iii) in the last sentence by
striking ``convene a copyright royalty
arbitration panel'' and inserting ``conduct a
proceeding''; and</DELETED>
<DELETED> (C) in subparagraph (C)--</DELETED>
<DELETED> (i) by striking ``Librarian of
Congress'' and inserting ``Copyright Royalty
Adjudication Board''; and</DELETED>
<DELETED> (ii) by adding at the end the
following: ``The action of the Board to
distribute royalty fees may precede the
declaration of a controversy if all parties to
the proceeding file a petition with the Board
requesting such distribution, except that such
amount may not exceed 50 percent of the amounts
on hand at the time of the
request.''.</DELETED>
<DELETED> (b) Scope of Exclusive Rights in Sound Recordings.--
Section 114(f) of title 17, United States Code, is amended--</DELETED>
<DELETED> (1) in paragraph (1)--</DELETED>
<DELETED> (A) by amending the first sentence to read
as follows: ``During the first week of January, 2000,
the Copyright Royalty Adjudication Board shall cause
notice to be published in the Federal Register of the
initiation of voluntary negotiation proceedings for the
purpose of determining or adjusting reasonable terms
and rates of royalty payments for the activities
specified in subsection (d)(2) of this section.'';
and</DELETED>
<DELETED> (B) in the third sentence by striking
``Librarian of Congress'' and inserting ``Copyright
Royalty Adjudication Board'';</DELETED>
<DELETED> (2) by striking paragraphs (2), (3), and (4) and
inserting the following:</DELETED>
<DELETED> ``(2) In the absence of license agreements
negotiated under paragraph (1), during the 60-day period
beginning 6 months after publication of the notice specified in
paragraph (1), and upon the filing of a petition in accordance
with section 808(a), the Copyright Royalty Adjudication Board
shall, pursuant to chapter 8, conduct a proceeding to determine
and publish in the Federal Register a schedule of rates and
terms. In addition to the objectives set forth in section
807(a) in establishing or adjusting such rates and terms, the
Board may consider the rates and terms for comparable types of
digital audio transmission services and comparable
circumstances under voluntary license agreements negotiated as
provided in paragraph (1). The Copyright Royalty Adjudication
Board, upon the approval of the Register of Copyrights, shall
also establish requirements by which copyright owners may
receive reasonable notice of the use of their sound recordings
under this section, and under which records of such use shall
be kept and made available by entities performing sound
recordings.</DELETED>
<DELETED> ``(3) License agreements voluntarily negotiated at
any time between 1 or more copyright owners of sound recordings
and 1 or more entities performing sound recordings shall be
given effect in lieu of any determination by the Copyright
Royalty Adjudication Board.</DELETED>
<DELETED> ``(4) Publication of a notice of the initiation of
voluntary negotiation proceedings as specified in paragraph (1)
and the procedures specified in paragraph (2) shall be
repeated, in accordance with regulations that the Copyright
Royalty Adjudication Board, upon the approval of the Register
of Copyrights, shall prescribe--</DELETED>
<DELETED> ``(A) no later than 30 days after a
petition is filed by any copyright owners of sound
recordings or any entities performing sound recordings
affected by this section indicating that a new type of
digital audio transmission service on which sound
recordings are performed is or is about to become
operational; and</DELETED>
<DELETED> ``(B) during the first week of January
2005 and at 5-year intervals thereafter.'';
and</DELETED>
<DELETED> (3) in paragraph (5)(A)(i) by striking ``Librarian
of Congress'' and inserting ``Copyright Royalty Adjudication
Board, upon the approval of the Register of
Copyrights,''.</DELETED>
<DELETED> (c) Compulsory License for Making and Distributing
Phonorecords.--Section 115(c)(3) of title 17, United States Code, is
amended--</DELETED>
<DELETED> (1) in subparagraph (C)--</DELETED>
<DELETED> (A) by amending the first sentence to read
as follows: ``At the times established in subparagraph
(F), the Copyright Royalty Adjudication Board shall
cause notice to be published in the Federal Register of
the initiation of voluntary negotiation proceedings for
the purpose of determining reasonable terms and rates
of royalty payments for the activities specified in
subparagraph (A) until the effective date of any new
terms and rates established pursuant to this
subparagraph or subparagraph (D) or (F), or such other
date (regarding digital phonorecord deliveries) as the
parties may agree.'';</DELETED>
<DELETED> (B) in the third sentence by striking
``Librarian of Congress'' and inserting ``Copyright
Royalty Adjudication Board'';</DELETED>
<DELETED> (2) by amending subparagraph (D) to read as
follows:</DELETED>
<DELETED> ``(D) In the absence of license agreements
negotiated under subparagraphs (B) and (C), upon the filing of
a petition in accordance with section 808(a), the Copyright
Royalty Adjudication Board shall, pursuant to chapter 8,
conduct a proceeding to determine and publish in the Federal
Register a schedule of rates and terms. Such rates and terms
shall distinguish between--</DELETED>
<DELETED> ``(i) digital phonorecord deliveries where
the reproduction or distribution of a phonorecord is
incidental to the transmission which constitute the
digital phonorecord delivery, and</DELETED>
<DELETED> ``(ii) digital phonorecord deliveries in
general.</DELETED>
<DELETED>In addition to the objectives set forth in section 807(a), in
establishing or adjusting rates and terms, the Board may consider rates
and terms under voluntary license agreements negotiated as provided in
subparagraphs (B) and (C). The Board, upon the approval of the Register
of Copyrights, shall also establish requirements by which copyright
owners may receive reasonable notice of the use of their works under
this section, and under which records of such use shall be kept and
made available by persons making digital phonorecord
deliveries.'';</DELETED>
<DELETED> (3) in subparagraph (E)(i) in the first sentence
by striking ``Librarian of Congress'' and inserting ``Copyright
Royalty Adjudication Board''; and</DELETED>
<DELETED> (4) in subparagraph (F) by striking ``Librarian of
Congress'' and inserting `` Copyright Royalty Adjudication
Board, upon the approval of the Register of
Copyrights,''.</DELETED>
<DELETED> (d) Negotiated Licenses for Public Performances by Means
of Coin-Operated Phonorecord Players.--Section 116 of title 17, United
States Code, is amended--</DELETED>
<DELETED> (1) by amending subsection (b)(2) to read as
follows:</DELETED>
<DELETED> ``(2) Rate adjustment proceeding.--Parties not
subject to such a negotiation may determine, by a rate
adjustment proceeding in accordance with the provisions of
chapter 8, the terms and rates and the division of fees
described in paragraph (1).''; and</DELETED>
<DELETED> (2) in subsection (c)--</DELETED>
<DELETED> (A) in the subsection heading by
striking ``Copyright Royalty Arbitration
Panel'' and inserting ``Copyright Royalty
Adjudication Board''; and</DELETED>
<DELETED> (B) by striking ``a copyright arbitration
royalty panel and inserting ``the Copyright Royalty
Adjudication Board''.</DELETED>
<DELETED> (e) Use of Certain Works in Connection With Noncommercial
Broadcasting.--Section 118 of title 17, United States Code, is
amended--</DELETED>
<DELETED> (1) in subsection (b)--</DELETED>
<DELETED> (A) by striking paragraph (1) and
redesignating paragraphs (2) and (3) as paragraphs (1)
and (2), respectively;</DELETED>
<DELETED> (B) in paragraph (1), as so redesignated,
by striking ``Librarian of Congress'' and inserting
``Copyright Royalty Adjudication Board'';</DELETED>
<DELETED> (C) in paragraph (2), as so redesignated--
</DELETED>
<DELETED> (i) by striking ``paragraph (2)''
each place it appears and inserting ``paragraph
(1)'';</DELETED>
<DELETED> (ii) by striking ``Librarian of
Congress'' the first place it appears and
inserting ``Copyright Royalty Adjudication
Board'';</DELETED>
<DELETED> (iii) by striking ``Librarian of
Congress'' the second and third places it
appears and inserting ``Board''; and</DELETED>
<DELETED> (iv) by striking ``Librarian of
Congress'' the last place it appears and
inserting ``Board, upon the approval of the
Register of Copyrights,'';</DELETED>
<DELETED> (2) in subsection (c)--</DELETED>
<DELETED> (A) by striking ``1997'' and inserting
``2002''; and</DELETED>
<DELETED> (B) by striking ``Librarian of Congress''
and inserting ``Copyright Royalty Adjudication Board,
upon the approval of the Register of
Copyrights,'';</DELETED>
<DELETED> (3) in subsection (d)--</DELETED>
<DELETED> (A) by striking ``(b)(2)'' and inserting
``(b)(1)''; and</DELETED>
<DELETED> (B) by striking ``a copyright arbitration
royalty panel under subsection (b)(3)'' and inserting
``the Copyright Royalty Adjudication Board under
subsection (b)(2)''; and</DELETED>
<DELETED> (4) in subsection (e), by striking paragraphs (1)
and (2).</DELETED>
<DELETED> (f) Digital Audio Recording Devices and Media.--</DELETED>
<DELETED> (1) Royalty payments.--Section 1004(a)(3) of title
17, United States Code, is amended in the third sentence--
</DELETED>
<DELETED> (A) by striking ``the 6th year after the
effective date of this chapter'' and inserting
``1998'';</DELETED>
<DELETED> (B) by striking ``Librarian of Congress''
the first place it appears and inserting ``Copyright
Royalty Adjudication Board''; and</DELETED>
<DELETED> (C) by striking ``Librarian of Congress''
the second place it appears and inserting
``Board''.</DELETED>
<DELETED> (2) Entitlement to royalty payments.--Section
1006(c) of title 17, United States Code, is amended by striking
``Librarian of Congress shall convene a copyright arbitration
royalty panel which'' and inserting ``Copyright Royalty
Adjudication Board''.</DELETED>
<DELETED> (3) Procedures for distributing royalty
payments.--Section 1007 of title 17, United States Code, is
amended--</DELETED>
<DELETED> (A) in subsection (a)(1)--</DELETED>
<DELETED> (i) by striking ``after the
calendar year in which this chapter takes
effect'';</DELETED>
<DELETED> (ii) by striking ``Librarian of
Congress'' the first place it appears and
inserting ``Copyright Royalty Adjudication
Board''; and</DELETED>
<DELETED> (iii) by striking ``Librarian of
Congress'' the second place it appears and
inserting ``Board'';</DELETED>
<DELETED> (B) in subsection (b)--</DELETED>
<DELETED> (i) by amending the first sentence
to read as follows: ``After the first day of
March of each year, the Copyright Royalty
Adjudication Board shall determine whether
there exists a controversy concerning the
distribution of royalty payments under section
1006(c).''; and</DELETED>
<DELETED> (ii) by striking ``Librarian of
Congress'' each place it appears and inserting
``Board''; and</DELETED>
<DELETED> (C) in subsection (c)--</DELETED>
<DELETED> (i) by amending the first sentence
to read as follows: ``If the Copyright Royalty
Adjudication Board finds the existence of a
controversy, the Board shall, pursuant to
chapter 8 of this title, conduct a proceeding
to determine the distribution of royalty
payments.'';</DELETED>
<DELETED> (ii) by striking ``Librarian of
Congress'' each place it appears and inserting
``Board''; and</DELETED>
<DELETED> (iii) by striking ``Librarian
under this section'' and inserting ``Board
under this section. The action of the Board to
distribute royalty fees may precede the
declaration of a controversy if all parties to
the proceeding file a petition with the Board
requesting such distribution, except that such
amount may not exceed 50 percent of the amounts
on hand at the time of the
request.''.</DELETED>
<DELETED> (4) Adjudication of certain disputes.--
Section 1010 of title 17, United States Code, is
amended--</DELETED>
<DELETED> (A) by amending the section
heading to read as follows:</DELETED>
<DELETED>``Sec. 1010. Adjudication of certain disputes'';</DELETED>
<DELETED> (B) in subsection (a)--</DELETED>
<DELETED> (i) in the subsection
heading by striking ``Arbitration'' and
inserting ``Adjudication'';
and</DELETED>
<DELETED> (ii) by striking
``mutually agree to binding arbitration
for the purpose of determining'' and
inserting ``petition the Copyright
Royalty Adjudication Board to
determine'';</DELETED>
<DELETED> (C) by striking subsection (b) and
redesignating subsections (c) and (d) as
subsections (b) and (c),
respectively;</DELETED>
<DELETED> (D) in subsection (b), as so
redesignated, by striking ``arbitration'' each
place it appears and inserting
``adjudication'';</DELETED>
<DELETED> (E) by amending subsection (c), as
so redesignated, to read as follows:</DELETED>
<DELETED> ``(c) Adjudication Proceeding.--The Copyright Royalty
Adjudication Board shall conduct an adjudication proceeding with
respect to the matter concerned, pursuant to chapter 8 of this title.
The parties to the proceeding shall bear the entire costs thereof in
such manner and proportion as the Board shall direct.''; and</DELETED>
<DELETED> (F) by striking subsections (e),
(f), and (g).</DELETED>
<DELETED>SEC. 10. TECHNICAL AMENDMENTS.</DELETED>
<DELETED> (a) Clerical Amendment to Chapter 10 of Title 17, United
States Code.--The item relating to section 1010 in the table of
contents for chapter 10 of title 17, United States Code, is amended to
read as follows:</DELETED>
<DELETED>``1010. Adjudication of certain disputes.''.
<DELETED> (b) Clerical Amendment to Chapter 9 of Title 17, United
States Code.--The item relating to section 903 in the table of contents
for chapter 9 of title 17, United States Code, is amended to read as
follows:</DELETED>
<DELETED>``903. Ownership, transfer, licensing, and recordation.''.
<DELETED> (c) Clerical Amendment to Table of Chapters.--The item
relating to chapter 6 in the table of chapters for title 17, United
States Code, is amended to read as follows:</DELETED>
<DELETED>``6. Manufacturing Requirements and Importation.... 601''.
<DELETED>SEC. 11. RETRANSMISSION CONSENT.</DELETED>
<DELETED> Section 325(b) of the Communications Act of 1934 (47
U.S.C. 325(b)) is amended--</DELETED>
<DELETED> (1) by striking paragraphs (1) and (2) and
inserting the following:</DELETED>
<DELETED> ``(b)(1) No cable system or other multichannel video
programming distributor shall retransmit the signal of a broadcasting
station, or any part thereof, except--</DELETED>
<DELETED> ``(A) with the express authority of the
station;</DELETED>
<DELETED> ``(B) pursuant to section 614, in the case of a
station electing, in accordance with this subsection, to assert
the right to carriage under such section; or</DELETED>
<DELETED> ``(C) pursuant to section 337, in the case of a
station electing, in accordance with this subsection, to assert
the right to carriage under such section.</DELETED>
<DELETED> ``(2) The provisions of this subsection shall not apply
to--</DELETED>
<DELETED> ``(A) retransmission of the signal of a
noncommercial broadcasting station;</DELETED>
<DELETED> ``(B) retransmission of the signal of a
superstation by a satellite carrier to subscribers for private
home viewing if the originating station was a superstation on
January 1, 1998;</DELETED>
<DELETED> ``(C) retransmission of the signal of a
broadcasting station that is owned or operated by, or
affiliated with, a broadcasting network directly to a home
satellite antenna, if the household receiving the signal is
located in an area in which such station may not assert its
rights not to have its signal duplicated under the Commission's
network nonduplication regulations; or</DELETED>
<DELETED> ``(D) retransmission by a cable operator or other
multichannel video programming distributor of the signal of a
superstation if such signal was obtained from a satellite
carrier and the originating station was a superstation on
January 1, 1998.'';</DELETED>
<DELETED> (2) by adding at the end of paragraph (3) the
following new subparagraph:</DELETED>
<DELETED> ``(C) Within 45 days after the effective date of the
Copyright Compulsory License Improvement Act, the Commission shall
commence a rulemaking proceeding to revise the regulations governing
the exercise by television broadcast stations of the right to grant
retransmission consent under this subsection, and such other
regulations as are necessary to administer the limitation contained in
paragraph (2). Such regulations shall establish election time periods
that correspond with those regulations adopted under subparagraph (B).
The rulemaking shall be completed within 180 days after the effective
date of the Copyright Compulsory License Improvement Act.'';
and</DELETED>
<DELETED> (3) by adding at the end the following new
paragraph:</DELETED>
<DELETED> ``(7) For purposes of this subsection:</DELETED>
<DELETED> ``(A) The term `superstation' means a television
broadcast station, other than a network station, licensed by
the Commission that is secondarily transmitted by a satellite
carrier.</DELETED>
<DELETED> ``(B) The term `satellite carrier' has the meaning
given that term in section 119(d) of title 17, United States
Code.''.</DELETED>
<DELETED>SEC. 12. MUST-CARRY FOR SATELLITE CARRIERS RETRANSMITTING
TELEVISION BROADCAST SIGNALS.</DELETED>
<DELETED> Title III of the Communications Act of 1934 is amended by
inserting after section 336 the following new section:</DELETED>
<DELETED>``SEC. 337. CARRIAGE OF LOCAL TELEVISION SIGNALS BY SATELLITE
CARRIERS.</DELETED>
<DELETED> ``(a) Carriage Obligations.--Each satellite carrier
providing direct to home service of a network station to subscribers
located within the local market of such station shall offer to carry
all television broadcast stations located within that local market,
subject to section 325(b). Carriage of additional television broadcast
stations within the local market shall be at the discretion of the
satellite carrier, subject to section 325(b).</DELETED>
<DELETED> ``(b) Duplication Not Required.--Notwithstanding
subsection (a), a satellite carrier shall not be required to offer to
carry the signal of any local television broadcast station that
substantially duplicates the signal of another local television
broadcast station which is secondarily transmitted by the satellite
carrier, or to offer to carry the signals of more that one local
television broadcast station affiliated with a particular broadcast
network (as the term is defined by regulation).</DELETED>
<DELETED> ``(c) Channel Positioning.--Each signal carried in
fulfillment of the carriage obligations of a satellite carrier under
this section shall be carried on the satellite carrier channel number
on which the local television broadcast station is broadcast over the
air, or on the channel on which it was broadcast on January 1, 1985, or
on the channel it was broadcast on January 1, 1998, at the election of
the station, or on such other channel number as is mutually agreed upon
by the station and the satellite carrier. Any dispute regarding the
positioning of local television broadcast stations shall be resolved by
the Commission.</DELETED>
<DELETED> ``(d) Compensation for Carriage.--A satellite carrier
shall not accept or request monetary payment or other valuable
consideration in exchange either for carriage of local television
broadcast stations in fulfillment of the requirements of this section
or for channel positioning rights provided to such stations under this
section, except that any such station may be required to bear the costs
associated with delivering a good quality signal to the principal
headend of the satellite carrier.</DELETED>
<DELETED> ``(e) Remedies.--</DELETED>
<DELETED> ``(1) Complaints by broadcast stations.--Whenever
a local television broadcast station believes that a satellite
carrier has failed to meet its obligations under this section,
such station shall notify the carrier, in writing, of the
alleged failure and identify its reasons for believing that the
satellite carrier is obligated to offer to carry the signal of
such station or has otherwise failed to comply with the channel
positioning or repositioning or other requirements of this
section. The satellite carrier shall, within 30 days of such
written notification, respond in writing to such notification
and either commence to carry the signal of such station in
accordance with the terms requested or state its reasons for
believing that it is not obligated to carry such signal or is
in compliance with the channel positioning and repositioning or
other requirements of this section. A local television
broadcast station that is denied carriage or channel
positioning or repositioning in accordance with this section by
a satellite carrier may obtain review of such denial by filing
a complaint with the Commission. Such complaint shall allege
the manner in which such satellite carrier has failed to meet
its obligations and the basis for such allegations.</DELETED>
<DELETED> ``(2) Opportunity to respond.--The Commission
shall afford such satellite carrier and opportunity to present
data and arguments to establish that there has been no failure
to meet its obligations under this section.</DELETED>
<DELETED> ``(3) Remedial actions; dismissal.--Within 120
days after the date a complaint is filed, the Commission shall
determine whether the satellite carrier has met its obligations
under this section. If the Commission determines that the
satellite carrier has failed to meet such obligations, the
Commission shall order the satellite carrier to reposition the
complaining station or, in the case of an obligation to carry a
station, to commence carriage of the station and to continue
such carriage for at least 12 months. If the Commission
determines that the satellite carrier has fully met the
requirements of this section, it shall dismiss the
complaint.</DELETED>
<DELETED> ``(f) Regulations by Commission.--Within 180 days after
the effective date of this section, the Commission shall, following a
rulemaking proceeding, issue regulations implementing the requirements
imposed by this section.</DELETED>
<DELETED> ``(g) Definitions.--As used in this section:</DELETED>
<DELETED> ``(1) Television broadcast station.--The term
`television broadcast station' means a full-power television
broadcast station, and does not include a low-power or
translator television broadcast station.</DELETED>
<DELETED> ``(2) Local market.--The term `local market' means
the designated market area in which a station is located and--
</DELETED>
<DELETED> ``(A) for a commercial television
broadcast station located in any of the 150 largest
designated market areas, all commercial television
broadcast stations licensed to a community within the
same designated market area are within the same local
market;</DELETED>
<DELETED> ``(B) for a commercial television
broadcast station that is located in a designated
market area that is not one of the 150 largest, the
local market includes, in addition to all commercial
television broadcast stations licensed to a community
within the same designated market area, any station
that is significantly viewed, as such term is defined
in section 76.54 of the Commission's regulations (47
C.F.R. 76.54); and</DELETED>
<DELETED> ``(C) for a noncommercial educational
television broadcast station, the local market includes
any station that is licensed to a community within the
same designated market area as the noncommercial
educational television broadcast station.</DELETED>
<DELETED> ``(3) Designated market area.--The term
`designated market area' means a designated market area, as
determined by the Nielsen Media Research and published in the
DMA Market and Demographic Report.''.</DELETED>
<DELETED>SEC. 13. NETWORK NONDUPLICATION; SYNDICATED EXCLUSIVITY AND
SPORTS BLACKOUT.</DELETED>
<DELETED> (a) Regulations.--</DELETED>
<DELETED> (1) In general.--Within 45 days after the
effective date of this Act, the Federal Communications
Commission shall commence a rulemaking to establish regulations
that apply network nonduplication protection, syndicated
exclusivity protection, and sports blackout protection to the
retransmission of broadcast signals by satellite carriers to
subscribers for private home viewing. To the extent possible,
such regulations shall, subject to paragraph (2), include the
same level of protection accorded retransmissions of television
broadcast signals by cable systems for network nonduplication
(47 C.F.R. 76.92), syndicated exclusivity (47 C.F.R. 151), and
sports blackout (47 C.F.R. 76.67).</DELETED>
<DELETED> (2) Network nonduplication.--The network
nonduplication regulations required under paragraph (1) shall
allow a television broadcast station in any local market to
assert nonduplication rights--</DELETED>
<DELETED> (A) against a satellite carrier throughout
such local market if that satellite carrier retransmits
to subscribers for private home viewing in such local
market the signal of another television broadcast
station located within such local market; or</DELETED>
<DELETED> (B) against all satellite carriers within
the zone in which the television broadcast station may
be received over-the-air, using conventional consumer
television receiving equipment, as determined under
regulations prescribed by the Federal Communications
Commission, but such zone shall not extend beyond such
local market of such station.</DELETED>
<DELETED> (3) Local market defined.--The term ``local
market'' has the meaning provided in section 337(g) of the
Communications Act of 1934, as added by section 12 of this
Act.</DELETED>
<DELETED> (b) Deferred Applicability of Amendments to Section 119 of
Title 17, United States Code.--Notwithstanding the amendments to
section 119 of title 17, United States Code, made by this Act, until
the regulations regarding network nonduplication protection are
established under subsection (a), the statutory license under
subsection (a) of such section 119 for secondary transmissions of
primary transmissions of programming contained in a primary
transmission made by a network station (as defined in section 119(d) of
title 17, United States Code, as in effect on the day before the
effective date of this Act) shall be limited to secondary transmissions
to persons who reside in unserved households (as defined in section
119(d) of title 17, United States Code, as in effect on the day before
the effective date of this Act).</DELETED>
<DELETED>SEC. 14. EFFECTIVE DATE.</DELETED>
<DELETED> This Act and the amendments made by this Act shall take
effect on January 1, 1999.</DELETED>
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Copyright Compulsory License
Improvement Act''.
SEC. 2. LIMITATIONS ON EXCLUSIVE RIGHTS; SECONDARY TRANSMISSIONS BY
SATELLITE CARRIERS WITHIN LOCAL MARKETS.
(a) In General.--Chapter 1 of title 17, United States Code, is
amended by adding after section 121 the following new section:
``Sec. 122. Limitations on exclusive rights; secondary transmissions by
satellite carriers within local markets
``(a) Secondary Transmissions of Television Broadcast Stations by
Satellite Carriers.--A secondary transmission of a primary transmission
of a television broadcast station into the station's local market shall
be subject to statutory licensing under this section if--
``(1) the secondary transmission is made by a satellite
carrier to the public;
``(2) the secondary transmission is permissible under the
rules, regulations, or authorizations of the Federal
Communications Commission; and
``(3) the satellite carrier makes a direct or indirect
charge for the secondary transmission to--
``(A) each subscriber receiving the secondary
transmission; or
``(B) a distributor that has contracted with the
satellite carrier for direct or indirect delivery of
the secondary transmission to the public.
``(b) Reporting Requirements.--
``(1) Initial lists.--A satellite carrier that makes
secondary transmissions of a primary transmission made by a
network station under subsection (a) shall, within 90 days
after commencing such secondary transmissions, submit to that
station a list identifying (by name and street address,
including county and zip code) all subscribers to which the
satellite carrier currently makes secondary transmissions of
that primary transmission.
``(2) Subsequent lists.--After the list is submitted under
paragraph (1), the satellite carrier shall, on the 15th of each
month, submit to the station a list identifying (by name and
street address, including county and zip code) any subscribers
who have been added or dropped as subscribers since the last
submission under this subsection.
``(3) Use of subscriber information.--Subscriber
information submitted by a satellite carrier under this
subsection may be used only for the purposes of monitoring
compliance by the satellite carrier with this section.
``(4) Requirements of stations.--The submission
requirements of this subsection shall apply to a satellite
carrier only if the station to whom the submissions are to be
made places on file with the Register of Copyrights a document
identifying the name and address of the person to whom such
submissions are to be made. The Register shall maintain for
public inspection a file of all such documents.
``(c) No Royalty Fee Required.--A satellite carrier whose secondary
transmissions are subject to statutory licensing under subsection (a)
shall have no royalty obligation for such secondary transmissions.
``(d) Noncompliance With Reporting Requirements.--Notwithstanding
subsection (a), the willful or repeated secondary transmission to the
public by a satellite carrier of a television broadcast station and
embodying a performance or display of a work is actionable as an act of
infringement under section 501, and is fully subject to the remedies
provided under sections 502 through 506 and 509, if the satellite
carrier has not complied with the reporting requirements of subsection
(b).
``(e) Willful Alterations.--Notwithstanding subsection (a), the
secondary transmission to the public by a satellite carrier into the
local market of a television broadcast station of a primary
transmission made by that television broadcast station and embodying a
performance or display of a work is actionable as an act of
infringement under section 501, and is fully subject to the remedies
provided by sections 502 through 506 and sections 509 and 510, if the
content of the particular program in which the performance or display
is embodied, or any commercial advertising or station announcement
transmitted by the primary transmitter during, or immediately before or
after, the transmission of such program, is in any way willfully
altered by the satellite carrier through changes, deletions, or
additions, or is combined with programming from any other broadcast
signal.
``(f) Violation of Territorial Restrictions on Statutory License
for Television Broadcast Stations.--
``(1) Individual violations.--The willful or repeated
secondary transmission to the public by a satellite carrier of
a primary transmission made by a television broadcast station
and embodying a performance or display of a work to a
subscriber who does not reside in that station's local market,
and is not subject to statutory licensing under section 119, is
actionable as an act of infringement under section 501 and is
fully subject to the remedies provided by sections 502 through
506 and 509, except that--
``(A) no damages shall be awarded for such act of
infringement if the satellite carrier took corrective
action by promptly withdrawing service from the
ineligible subscriber; and
``(B) any statutory damages shall not exceed $5 for
such subscriber for each month during which the
violation occurred.
``(2) Pattern of violations.--If a satellite carrier
engages in a willful or repeated pattern or practice of
secondarily transmitting to the public a primary transmission
made by a television broadcast station and embodying a
performance or display of a work to subscribers who do not
reside in that station's local market, and are not subject to
statutory licensing under section 119, then in addition to the
remedies under paragraph (1)--
``(A) if the pattern or practice has been carried
out on a substantially nationwide basis, the court
shall order a permanent injunction barring the
secondary transmission by the satellite carrier of the
primary transmissions of that television broadcast
station (and if such television broadcast station is a
network station, all other television broadcast
stations affiliated with such network), and the court
may order statutory damages not exceeding $250,000 for
each 6-month period during which the pattern or
practice was carried out; and
``(B) if the pattern or practice has been carried
out on a local or regional basis with respect to more
than one television broadcast station (and if such
television broadcast station is a network station, all
other television broadcast stations affiliated with
such network), the court shall order a permanent
injunction barring the secondary transmission in that
locality or region by the satellite carrier of the
primary transmissions of any television broadcast
station, and the court may order statutory damages not
exceeding $250,000 for each 6-month period during which
the pattern or practice was carried out.
``(g) Burden of Proof.--In any action brought under subsection (d),
(e), or (f), the satellite carrier shall have the burden of proving
that its secondary transmission of a primary transmission by a
television broadcast station is made only to subscribers located within
that station's local market.
``(h) Geographic Limitations on Secondary Transmissions.--The
statutory license created by this section shall apply to secondary
transmissions to locations in the United States, and any commonwealth,
territory, or possession of the United States.
``(i) Exclusivity With Respect to Secondary Transmissions of
Broadcast Stations by Satellite to Members of the Public.--No provision
of section 111 or any other law (other than this section and section
119) shall be construed to contain any authorization, exemption, or
license through which secondary transmissions by satellite carriers of
programming contained in a primary transmission made by a television
broadcast station may be made without obtaining the consent of the
copyright owner.
``(j) Definitions.--In this section--
``(1) The term `distributor' means an entity which
contracts to distribute secondary transmissions from a
satellite carrier and, either as a single channel or in a
package with other programming, provides the secondary
transmission either directly to individual subscribers or
indirectly through other program distribution entities.
``(2) The term `local market' for a television broadcast
station has the meaning given that term in section 337(h)(2) of
the Communications Act of 1934.
``(3) The terms `network station', `satellite carrier' and
`secondary transmission' have the meaning given such terms
under section 119(d).''.
``(4) The term `subscriber' means an entity that receives a
secondary transmission service by means of a secondary
transmission from a satellite and pays a fee for the service,
directly or indirectly, to the satellite carrier or to a
distributor.
``(5) The term `television broadcast station' means an
over-the-air, commercial or noncommercial television broadcast
station licensed by the Federal Communications Commission under
subpart E of part 73 of title 47, Code of Federal
Regulations.''.
(b) Technical and Conforming Amendments.--The table of sections for
chapter 1 of title 17, United States Code, is amended by adding after
the item relating to section 121 the following:
``122. Limitations on exclusive rights; secondary transmissions by
satellite carriers within local market.''.
SEC. 3. EXTENSION OF EFFECT OF AMENDMENTS TO SECTION 119 OF TITLE 17,
UNITED STATES CODE.
Section 4(a) of the Satellite Home Viewer Act of 1994 (17 U.S.C.
119 note; Public Law 103-369; 108 Stat. 3481) is amended by striking
``December 31, 1999'' and inserting ``December 31, 2003''.
SEC. 4. TRANSITION.
Section 119(a)(5) of title 17, United States Code, is amended by
adding at the end the following:
``(E) Transition.--Notwithstanding subparagraphs
(A) and (B), a satellite carrier shall not be required
to terminate service of a network station to a
subscriber until February 28, 1999.''.
SEC. 5. COMPUTATION OF ROYALTY FEES FOR SATELLITE CARRIERS.
Section 119(c) of title 17, United States Code, is amended by
adding at the end the following new paragraph:
``(4) Reduction.--
``(A) Superstation.--The rate of the royalty fee
payable in each case under subsection (b)(1)(B)(i) as
adjusted by a royalty fee established under paragraph
(2) or (3) of this subsection shall be reduced by 30
percent.
``(B) Network.--The rate of the royalty fee payable
under subsection (b)(1)(B)(ii) as adjusted by a royalty
fee established under paragraph (2) or (3) of this
subsection shall be reduced by 45 percent.
``(5) Public broadcasting service as agent.--For purposes
of section 802, with respect to royalty fees paid by satellite
carriers for retransmitting the Public Broadcasting Service
satellite feed, the Public Broadcasting Service shall be the
agent for all public television copyright claimants and all
Public Broadcasting Service member stations.''.
SEC. 6. DEFINITIONS.
Section 119(d) of title 17, United States Code, is amended--
(1) by striking paragraph (10) and inserting the following:
``(10) Unserved household.--The term `unserved household',
with respect to a particular television network, means a
household that cannot receive, through the use of a
conventional outdoor rooftop receiving antenna, an over-the-air
signal of grade B intensity (as defined by the Federal
Communications Commission) of a primary network station
affiliated with that network.''; and
(2) by adding at the end the following:
``(12) Local network station.--The term `local network
station' means a network station that is secondarily
transmitted to subscribers who reside within the local market
in which the network station is located.''.
SEC. 7. PUBLIC BROADCASTING SERVICE SATELLITE FEED.
(a) Secondary Transmissions.--Section 119(a)(1) of title 17, United
States Code, is amended--
(1) by striking the paragraph heading and inserting ``(1)
Superstations and pbs satellite feed.--'';
(2) by inserting ``or by the Public Broadcasting Service
satellite feed'' after ``superstation''; and
(3) by adding at the end the following: ``In the case of
the Public Broadcasting Service satellite feed, subsequent to
January 1, 2001, or the date on which local retransmissions of
broadcast signals are offered to the public, whichever is
earlier, the statutory license created by this section shall be
conditioned on the Public Broadcasting Service certifying to
the Copyright Office on an annual basis that its membership
supports the secondary transmission of the Public Broadcasting
Service satellite feed, and providing notice to the satellite
carrier of such certification.''.
(b) Definition.--Section 119(d) of title 17, United States Code, is
amended by adding at the end the following:
``(12) Public broadcasting service satellite feed.--The
term `Public Broadcasting Service satellite feed' means the
national satellite feed distributed by the Public Broadcasting
Service consisting of educational and informational programming
intended for private home viewing, to which the Public
Broadcasting Service holds national terrestrial broadcast
rights.''.
SEC. 8. APPLICATION OF FEDERAL COMMUNICATIONS COMMISSION REGULATIONS.
Section 119(a) of title 17, United States Code, is amended--
(1) in paragraph (1), by inserting ``is permissible under
the rules, regulations, and authorizations of the Federal
Communications Commission,'' after ``satellite carrier to the
public for private home viewing,''; and
(2) in paragraph (2), by inserting ``is permissible under
the rules, regulations, and authorizations of the Federal
Communications Commission,'' after ``satellite carrier to the
public for private home viewing,''.
SEC. 9. EFFECTIVE DATE.
This Act and the amendments made by this Act shall take effect on
January 1, 1999, except section 4 shall take effect on the date of
enactment of this Act.