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Union Calendar No. 52
106th CONGRESS
1st Session
H. R. 1027
[Report No. 106-86, Part I]
_______________________________________________________________________
A BILL
To provide for the carriage by satellite carriers of local broadcast
station signals, and for other purposes.
_______________________________________________________________________
April 16, 1999
Committee on Commerce discharged; committed to the Committee of the
Whole House on the State of the Union and ordered to be printed
Union Calendar No. 52
106th CONGRESS
1st Session
H. R. 1027
[Report No. 106-86, Part I]
To provide for the carriage by satellite carriers of local broadcast
station signals, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 8, 1999
Mr. Coble introduced the following bill; which was referred to the
Committee on the Judiciary, and in addition to the Committee on
Commerce, for a period to be subsequently determined by the Speaker, in
each case for consideration of such provisions as fall within the
jurisdiction of the committee concerned
April 12, 1999
Reported from the Committee on the Judiciary with an amendment
[Strike out all after the enacting clause and insert the part printed
in italic]
April 12, 1999
Referral to the Committee on Commerce extended for a period ending not
later than April 16, 1999
April 16, 1999
Committee on Commerce discharged; committed to the Committee of the
Whole House on the State of the Union and ordered to be printed
[For text of introduced bill, see copy of bill as introduced on March
8, 1999]
_______________________________________________________________________
A BILL
To provide for the carriage by satellite carriers of local broadcast
station signals, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Copyright Compulsory License
Improvement Act''.
SEC. 2. LIMITATIONS ON EXCLUSIVE RIGHTS; SECONDARY TRANSMISSIONS BY
SATELLITE CARRIERS WITHIN LOCAL MARKETS.
(a) In General.--Chapter 1 of title 17, United States Code, is
amended by adding after section 121 the following new section:
``Sec. 122. Limitations on exclusive rights; secondary transmissions by
satellite carriers within local markets
``(a) Secondary Transmissions of Television Broadcast Stations by
Satellite Carriers.--A secondary transmission of a primary transmission
of a television broadcast station into the station's local market shall
be subject to statutory licensing under this section if--
``(1) the secondary transmission is made by a satellite
carrier to the public;
``(2) the satellite carrier is in compliance with the
rules, regulations, or authorizations of the Federal
Communications Commission governing the carriage of television
broadcast station signals; and
``(3) the satellite carrier makes a direct or indirect
charge for the secondary transmission to--
``(A) each subscriber receiving the secondary
transmission; or
``(B) a distributor that has contracted with the
satellite carrier for direct or indirect delivery of
the secondary transmission to the public.
``(b) Reporting Requirements.--
``(1) Initial lists.--A satellite carrier that makes
secondary transmissions of a primary transmission made by a
network station under subsection (a) shall, within 90 days
after commencing such secondary transmissions, submit to that
station a list identifying (by name in alphabetical order and
street address, including county and zip code) only those
subscribers located in that station's local market 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 into the local market of a television
broadcast station of a primary transmission made by that television
broadcast station and embodying a performance or display of a work is
actionable as an act of infringement under section 501, and is fully
subject to the remedies provided under sections 502 through 506 and
509, if the satellite carrier has not complied with the reporting
requirements of subsection (b).
``(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) Distributor.--The term `distributor' means an entity
which contracts to distribute secondary transmissions from a
satellite carrier and, either as a single channel or in a
package with other programming, provides the secondary
transmission either directly to individual subscribers or
indirectly through other program distribution entities.
``(2) Local market.--The `local market' of a television
broadcast station has the meaning given that term under rules,
regulations, and authorizations of the Federal Communications
Commission relating to carriage of television broadcast signals
by satellite carriers.
``(3) Network station; satellite carrier; secondary
transmission.--The terms `network station', `satellite carrier'
and `secondary transmission' have the meanings given such terms
under section 119(d).
``(4) Subscriber.--The term `subscriber' means 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) Television broadcast station.--The term `television
broadcast station' means an over-the-air, commercial or
noncommercial television broadcast station licensed by the
Federal Communications Commission under subpart E of part 73 of
title 47, Code of Federal Regulations.''.
(b) Infringement of Copyright.--Section 501 of title 17, United
States Code, is amended by adding at the end the following new
subsection:
``(f) With respect to any secondary transmission that is made by a
satellite carrier of a primary transmission embodying the performance
or display of a work and is actionable as an act of infringement under
section 122, a television broadcast station holding a copyright or
other license to transmit or perform the same version of that work
shall, for purposes of subsection (b) of this section, be treated as a
legal or beneficial owner if such secondary transmission occurs within
the local market of that station.''.
(c) Technical and Conforming Amendments.--The table of sections for
chapter 1 of title 17, United States Code, is amended by adding after
the item relating to section 121 the following:
``122. Limitations on exclusive rights; secondary transmissions by
satellite carriers within local market.''.
SEC. 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, 2004''.
SEC. 4. COMPUTATION OF ROYALTY FEES FOR SATELLITE CARRIERS.
Section 119(c) of title 17, United States Code, is amended by
adding at the end the following new paragraph:
``(4) Reduction.--
``(A) Superstation.--The rate of the royalty fee in
effect on January 1, 1998, payable in each case under
subsection (b)(1)(B)(i) shall be reduced by 30 percent.
``(B) Network.--The rate of the royalty fee in
effect on January 1, 1998, payable under subsection
(b)(1)(B)(ii) shall be reduced by 45 percent.
``(5) Public broadcasting service as agent.--For purposes
of section 802, with respect to royalty fees paid by satellite
carriers for retransmitting the Public Broadcasting Service
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