[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2921 Reported in House (RH)]



                                                 Union Calendar No. 398

105th CONGRESS

  2d Session

                               H. R. 2921

                  [Report No. 105-661, Parts I and II]

_______________________________________________________________________

                                 A BILL

    To amend the Communications Act of 1934 to require the Federal 
Communications Commission to conduct an inquiry into the impediments to 
  the development of competition in the market for multichannel video 
                       programming distribution.

_______________________________________________________________________

                           September 10, 1998

Reported from the Committee on the Judiciary with amendments, committed 
  to the Committee of the Whole House on the State of the Union, and 
                         ordered to be printed
                                                 Union Calendar No. 398
105th CONGRESS
  2d Session
                                H. R. 2921

                  [Report No. 105-661, Parts I and II]

    To amend the Communications Act of 1934 to require the Federal 
Communications Commission to conduct an inquiry into the impediments to 
  the development of competition in the market for multichannel video 
                       programming distribution.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            November 7, 1997

 Mr. Tauzin (for himself, Mr. Markey, and Mr. Boucher) introduced the 
following bill; which was referred to the Committee on Commerce, and in 
    addition to the Committee on the Judiciary, 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

                             July 30, 1998

       Reported from the Committee on Commerce with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

                             July 30, 1998

Referral to the Committee on the Judiciary extended for a period ending 
                   not later than September 11, 1998

                           September 10, 1998

Additional sponsors: Mr. Whitfield, Mr. Shimkus, Mr. Norwood, Mr. Hall 
    of Texas, Mr. Greenwood, Mr. Stearns, Mr. Hill, Mr. McHugh, Mr. 
Packard, Mr. Bonilla, Mr. Hinchey, Mr. John, Mr. Miller of Florida, Mr. 
Burr of North Carolina, Mr. Deal of Georgia, Mr. Sessions, Mr. LaFalce, 
  Mr. Rahall, Mr. Walsh, Mr. Skelton, Mr. Callahan, Mr. Barcia, Mrs. 
 Cubin, Mr. Burton of Indiana, Mr. Stenholm, Mr. Smith of Oregon, Mr. 
   McInnis, Mr. Hamilton, Mrs. Thurman, Mr. Spratt, Mr. Bishop, Mr. 
     Boehner, Mr. Boswell, Mr. DeFazio, Mr. Petri, Mr. Nussle, Mr. 
   Ballenger, Mr. Latham, Mr. Jones, Mr. Thornberry, Ms. Danner, Mr. 
  Crapo, Mr. Largent, Mr. Clyburn, Mr. LaTourette, Mr. Bereuter, Mr. 
   Dickey, Mr. Camp, Mr. Coburn, Mr. Frank of Massachusetts, Mr. Dan 
 Schaefer of Colorado, Mr. Poshard, Mr. Klink, Mr. Gillmor, Mr. Berry, 
  Mrs. Emerson, Mr. Barrett of Nebraska, Mr. Tanner, Mrs. Kelly, Mr. 
  Solomon, Mr. Peterson of Minnesota, Mr. Stump, Mr. Nethercutt, Mr. 
Boyd, Mr. Goss, Mr. Taylor of North Carolina, Mr. Skeen, Mr. Rogan, Mr. 
 Maloney of Connecticut, Mr. Upton, Mr. Young of Alaska, Mr. Combest, 
Mr. Oxley, Mr. Christensen, Mr. Wise, Mr. Hutchinson, Mrs. Morella, Mr. 
Horn, Mr. Parker, Mrs. Myrick, Ms. Eshoo, Mrs. Chenoweth, Mr. Kind, Mr. 
Clement, Mr. Cook, Mr. Knollenberg, Mr. Moran of Kansas, Mr. Gejdenson, 
Mr. Traficant, Mr. Peterson of Pennsylvania, Mr. Lewis of Kentucky, Mr. 
   Wolf, Mr. Hastert, Mr. Gutknecht, Mr. Bilbray, Mr. Pickering, Mr. 
Hilleary, Mr. Lucas of Oklahoma, Ms. Stabenow, Mr. Minge, Mr. McGovern, 
 Mr. Stupak, Mr. Shays, Mr. Murtha, Mr. Kennedy of Massachusetts, Mr. 
Goodling, Mrs. Linda Smith of Washington, Mr. Cannon, Mr. Boehlert, Mr. 
    Gilchrest, Mr. Weldon of Pennsylvania, Mr. Hefner, Mr. Davis of 
   Florida, Mr. Collins, Mr. Lantos, Mr. Etheridge, Mrs. Fowler, Mr. 
 Turner, Mr. Sandlin, Mr. Quinn, Mr. Ney, Mr. Hastings of Washington, 
   Mr. Bateman, Ms. Eddie Bernice Johnson of Texas, Ms. Rivers, Mr. 
 Aderholt, Mr. Kildee, Mr. Smith of Texas, Mr. Reyes, Mr. Ensign, Mr. 
 Olver, Mr. Ewing, Mr. Pickett, Mr. Hayworth, Mr. Strickland, Mr. Sam 
Johnson of Texas, Mr. Neal of Massachusetts, Mr. Miller of California, 
   Mr. Gilman, Mr. Thompson, Mr. Hulshof, Mr. Ganske, Mr. Klug, Mr. 
McIntyre, Mr. Blunt, Mr. Engel, Mr. Chambliss, Mr. Sanders, Ms. Kaptur, 
 Mr. Lampson, Mr. Farr of California, Mr. Pomeroy, Ms. Slaughter, Mr. 
                         Deutsch, and Mr. Evans

                           September 10, 1998

Reported from the Committee on the Judiciary with amendments, committed 
  to the Committee of the Whole House on the State of the Union, and 
                         ordered to be printed
    [Omit the part in black brackets and insert the part printed in 
                            boldface roman]

_______________________________________________________________________

                                 A BILL


 
    To amend the Communications Act of 1934 to require the Federal 
Communications Commission to conduct an inquiry into the impediments to 
  the development of competition in the market for multichannel video 
                       programming distribution.

    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 ``Multichannel Video 
Competition and Consumer Protection Act of 1997''.</DELETED>

<DELETED>SEC. 2. INQUIRY REQUIRED.</DELETED>

<DELETED>    Section 623 of the Communications Act of 1934 (47 U.S.C. 
623) is amended by adding at the end the following new 
subsection:</DELETED>
<DELETED>    ``(o) Inquiry on Impediments to Development of Effective 
Competition.--</DELETED>
        <DELETED>    ``(1) Inquiry required.--Within 30 days after the 
        date of enactment of this subsection, the Commission shall 
        initiate an inquiry on the extent to which the differential fee 
        decision constitutes an impediment to the development of 
        effective competition in the market for multichannel video 
        programming distribution from multichannel video programming 
        distributors described in subsection (l)(1)(B).</DELETED>
        <DELETED>    ``(2) Report required.--Within 90 days after the 
        date of enactment of this subsection, the Commission shall 
        submit a report on the results of the inquiry to the Committee 
        on Commerce and the Committee on the Judiciary of the House of 
        Representatives and the Committee on Commerce, Science, and 
        Transportation and the Committee on the Judiciary of the 
        Senate.</DELETED>
        <DELETED>    ``(3) Rulemaking.--Within 180 days after the date 
        of enactment of this subsection, the Commission shall complete 
        any actions necessary (including any reconsideration) to make 
        such changes as the Commission may determine to be necessary to 
        its regulations on the basis of the inquiry required by this 
        subsection.</DELETED>
        <DELETED>    ``(4) Definition.--For the purposes of this 
        subsection, the term `differential fee decision' means the 
        decision of the Librarian of Congress on October 27, 1997, 
        relating to the per subscriber per month royalty fee for the 
        retransmission of superstation and distant network signals by 
        direct-to-home satellite service providers.''.</DELETED>

<DELETED>SEC. 3. DIRECT-TO-HOME SATELLITE PIRACY PREVENTION.</DELETED>

<DELETED>    Section 705(d)(6) of the Communications Act of 1934 (47 
U.S.C. 605(d)(6)) is amended by inserting ``or direct-to-home satellite 
services (as defined in section 303(v))'' after ``satellite cable 
programming''.</DELETED>

<DELETED>SEC. 4. STAY PENDING COMPLETION OF INQUIRY.</DELETED>

<DELETED>    Until 120 days after the submission of the report required 
by section 623(o) of the Communications Act of 1934 (as added by 
section 2 of this Act), no officer or employee of the United States 
shall take any action to implement or enforce, and no obligation or 
liability shall accrue pursuant to, the differential fee decision 
described in paragraph (4) of such section.</DELETED>

[SECTION 1. SHORT TITLE.

    [This Act may be cited as the ``Multichannel Video Competition and 
Consumer Protection Act of 1998''.

[SEC. 2. INQUIRY REQUIRED.

    [Section 623 of the Communications Act of 1934 (47 U.S.C. 543) is 
amended by adding at the end the following new subsection:
    [``(o) Inquiry on Impediments to Development of Effective 
Competition.--
            [``(1) Inquiry required.--Within 30 days after the date of 
        enactment of this subsection, the Commission shall initiate an 
        inquiry on the extent to which the differential fee decision 
        constitutes an impediment to the development of effective 
        competition in the market for multichannel video programming 
        distribution from multichannel video programming distributors 
        described in subsection (l)(1)(B).
            [``(2) Report required.--Within 90 days after the date of 
        enactment of this subsection, the Commission shall submit a 
        report on the results of the inquiry to the Committee on 
        Commerce and the Committee on the Judiciary of the House of 
        Representatives and the Committee on Commerce, Science, and 
        Transportation and the Committee on the Judiciary of the 
        Senate.
            [``(3) Rulemaking.--Within 180 days after the date of 
        enactment of this subsection, the Commission shall complete any 
        actions necessary (including any reconsideration) to make such 
        changes as the Commission may determine to be necessary to its 
        regulations on the basis of the inquiry required by this 
        subsection.
            [``(4) Definition.--For the purposes of this subsection, 
        the term `differential fee decision' means the decision of the 
        Librarian of Congress on October 27, 1997, relating to the per 
        subscriber per month royalty fee for the retransmission of 
        superstation and distant network signals by direct-to-home 
        satellite service providers.''.]

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Copyright Compulsory License 
Improvement Act of 1998.''

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 into the local market of 
a television broadcast station of a primary transmission made by that 
station and embodying the performance or display of a work 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 pursuant to subsection (a) shall, within 90 
        days after commencing such secondary transmissions, submit to 
        the network that owns or is affiliated with the network station 
        a list identifying (by name 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 network 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 networks.--The submission 
        requirements of this subsection shall apply to a satellite 
        carrier only if the network 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 obligation to pay royalties under this 
title 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 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 on 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 set forth in 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 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; and
                    ``(B) if the pattern or practice has been carried 
                out on a local or regional basis with respect to more 
                than one television broadcast station, the court 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 Limitation on Secondary Transmissions.--The 
statutory license created by this section shall apply only to secondary 
transmissions to locations in the United States.
    ``(i) Exclusivity With Respect to Secondary Transmissions of 
Broadcast Stations by Satellite to Members of the Public.--No provision 
of section 111 or any other law (other than this section and section 
119) shall be construed to contain any authorization, exemption, or 
license through which secondary transmissions by satellite carriers of 
programming contained in a primary transmission made by a television 
broadcast station may be made without obtaining the consent of the 
copyright owner.
    ``(j) Statutory License Contingent on Compliance With Satellite 
Must-Carry Requirements.--Notwithstanding subsection (a), the willful 
or repeated secondary transmission to the public into the local market 
of a television broadcast station by a satellite carrier of a primary 
transmission made by that 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 509, if at the time of such transmission the satellite 
carrier is not in compliance with the requirements of subsection (k) to 
carry television stations.
    ``(k) Carriage Obligations.--
            ``(1) In general.--Each satellite carrier providing 
        secondary transmissions to subscribers located within the local 
        market of a television broadcast station of a primary 
        transmission made by that station shall carry upon request all 
        television broadcast stations located within that local market, 
        subject to subsection (l), except that the carriage obligations 
        of this subsection shall apply only to satellite carriers that 
        retransmit the signals of broadcast television stations 
        pursuant to the statutory license under this section. Carriage 
        of additional broadcast stations within that local market shall 
        be at the discretion of the satellite carrier, subject to 
        subsection (l). The satellite carrier shall carry the entire 
        signal of each local television station carried pursuant to 
        this subsection.
            ``(2) Duplication not required.--Notwithstanding paragraph 
        (1), a satellite carrier shall not be required to carry upon 
        request the signal of any local television broadcast station 
        that substantially duplicates the signal of another television 
        broadcast station within the same local market which is 
        secondarily transmitted by the satellite carrier, or to carry 
        upon request the signals of more than one local television 
        broadcast station in a single local market that is affiliated 
with a particular broadcast network (as the term `broadcast network' is 
defined by the Register of Copyrights by regulation).
            ``(3) Carriage of all local television stations on 
        contiguous channels.--All local television broadcast stations 
        retransmitted by a satellite carrier to subscribers in the 
        stations' local markets shall be made available to subscribers 
        in their local markets on contiguous channels and in a 
        nondiscriminatory manner on any navigational device, on-screen 
        program guide, or menu.
            ``(4) 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 subsection or for channel positioning 
        rights provided to such stations under this subsection, except 
        that any such station may be required to bear the costs 
        associated with delivering a good quality signal to the 
        designated local receive facility of the satellite carrier.
            ``(5) Remedies.--
                    ``(A) Complaints by broadcast stations.--Whenever a 
                local television broadcast station believes that a 
                satellite carrier has failed to meet its obligations 
                under this subsection, such station shall notify the 
                carrier, in writing, of the alleged failure and 
                identify its reasons for believing that the satellite 
                carrier is obligated to carry upon request the signal 
                of such station or has otherwise failed to comply with 
                other requirements of this subsection. The satellite 
                carrier shall, within 30 days of such written 
                notification, respond in writing to such notification 
                and either begin carrying the signal of such station in 
                accordance with the terms requested or state its 
                reasons for believing that it is not obligated to carry 
                such signal or is in compliance with other requirements 
                of this subsection, as the case may be. A local 
                television broadcast station that is denied carriage in 
                accordance with this subsection by a satellite carrier 
                or is otherwise harmed by a response by a satellite 
                carrier that it is in compliance with other 
                requirements of this subsection may obtain review of 
                such denial or response by filing a complaint with the 
                Register of Copyrights. Such complaint shall allege the 
                manner in which such satellite carrier has failed to 
                meet its obligations and the basis for such 
                allegations.
                    ``(B) Opportunity to respond.--The Register shall 
                afford the satellite carrier against which a complaint 
                is filed under subparagraph (A) an opportunity to 
                present data and arguments to establish that there has 
                been no failure to meet its obligations under this 
                subsection.
                    ``(C) Remedial actions; dismissal.--Within 120 days 
                after the date a complaint is filed under subparagraph 
                (A), the Register shall determine whether the satellite 
                carrier has met its obligations under this chapter. If 
                the Register determines that the satellite carrier has 
                failed to meet such obligations, the Register shall 
                order the satellite carrier, in the case of an 
                obligation to carry a station, to begin carriage of the 
                station and to continue such carriage for at least 12 
                months, or, in the case of the failure to meet other 
                obligations under this subsection, shall take other 
                appropriate remedial action. If the Register determines 
                that the satellite carrier has fully met the 
                requirements of this chapter, the Register shall 
                dismiss the complaint.
            ``(6) Regulations by register of copyrights.--Within 180 
        days after the effective date of this section, the Register of 
        Copyrights shall, following a rulemaking proceeding, issue 
        regulations implementing the requirements imposed by this 
        subsection.
    ``(l) Retransmission Consent.--
            ``(1) Retransmission consent required.--No satellite 
        carrier shall retransmit the signal of a television broadcast 
        station, or any part thereof, except--
                    ``(A) with the express authority of the station; or
                    ``(B) pursuant to subsection (k) of this section, 
                in the case of a station electing, in accordance with 
                this subsection, to assert the right to carriage under 
                such subsection.
            ``(2) Exclusions.--The provisions of this subsection shall 
        not apply to--
                    ``(A) retransmission of the signal of a 
                noncommercial television broadcast station;
                    ``(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 May 1, 1991, and on December 31, 1997, 
                such station was a network station and its signal was 
                retransmitted by a satellite carrier directly to at 
                least 500,000 subscribers for private home viewing; or
                    ``(C) retransmission of the signal of a television 
                broadcast 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 an unserved household.
            ``(3) Promulgation of regulations.--Within 45 days after 
        the effective date of the Copyright Compulsory License 
        Improvement Act of 1998, the Register of Copyrights shall 
        commence a rulemaking proceeding to promulgate 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) of section 325(b)(3) 
        of the Communications Act of 1934. The rulemaking shall be 
        completed within 180 days after the effective date of the 
        Copyright Compulsory License Improvement Act of 1998.
    ``(m) Definitions.-- In this section:
            ``(1) 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.
            ``(2) Distributor.--The term `distributor' means an entity 
        which contracts to distribute secondary transmissions from a 
        satellite carrier and, either as a single channel or in a 
        package with other programming, provides the secondary 
        transmission either directly to individual subscribers or 
        indirectly through other program distribution entities.
            ``(3) Local market.--(A) In the case of both commercial and 
        noncommercial television broadcast stations, the term `local 
        market' means the designated market area in which a station is 
        located.
            ``(B) In the case of a commercial television broadcast 
        station, all commercial television broadcast stations licensed 
        to a community within the same designated market area are 
        within the same local market.
            ``(C) Following a written request, the Register of 
        Copyrights may, with respect to a particular local market, 
        include additional commercial television broadcast stations to 
        better effectuate the purposes of this section. In considering 
        such a request, the Register shall primarily consider evidence 
        of historic viewing patterns within the local market concerned. 
        The Register may determine that particular commercial 
        television broadcast stations serve more than one local market
            ``(D) In the case of 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.
            ``(4) Local receive facility.--The term `local receive 
        facility' means the reception point in the local market of a 
        television broadcast station or in a market contiguous to the 
        local market of a television broadcast station at which a 
        satellite carrier initially receives the signal of the station 
        for purposes of transmission of such signals to the facility 
        which uplinks the signals to the carrier's satellites for 
        secondary transmission to the satellite carrier's subscribers. 
        The designation of a local receive facility by a satellite 
        carrier shall not be used to undermine or evade the carriage 
        requirements imposed by this chapter.
            ``(5) 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.
            ``(6) 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, as such regulations are 
        in effect on August 4, 1998, and as they may be amended 
        thereafter.
            ``(7) Satellite carrier, etc.--The terms `private home 
        viewing', `satellite carrier', `secondary transmission', 
        `superstation', and `unserved household' have the meanings 
        given such terms in section 119(d).''.
    (b) Standing To Sue for Satellite Carrier Failure To Carry All 
Local Television Broadcast Stations.--Section 501 of title 17, United 
States Code, is amended by adding at the end the following:
    ``(f) With respect to any satellite carrier making a secondary 
transmission of a primary transmission made by a television broadcast 
station to subscribers located within the local market of such station 
that fails to carry all television broadcast stations located within 
that market as required by section 122, any station that has not given 
retransmission consent and is improperly denied carriage shall have 
standing to bring a copyright infringement action with respect to the 
unauthorized performance or display of works embodied in the secondary 
transmission.
    ``(g) 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 that 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 of that work if such secondary transmission 
occurs within the local market of that station. For purposes of this 
subsection and subsection (f), the definitions contained in section 122 
of this title apply.''.
    (c) Additional Remedies for Failure by Satellite Carriers To Carry 
All Local Television Broadcast Stations.--Chapter 5 of title 17, United 
States Code, is amended by adding at the end the following:
``Sec. 512. Remedies for failure by satellite carriers to carry all 
              local broadcast stations
    ``(a) In any action filed pursuant to section 122(j), the following 
remedies shall be available:
            ``(1) If the action is brought by a party identified in 
        subsection (b) of section 501, the remedies provided by 
        sections 502 through 505, and the remedy provided by subsection 
        (b) of this section.
            ``(2) If an action is brought by a television broadcast 
        station identified in subsection (f) of section 501, the 
        remedies provided by sections 502 and 505, together with any 
        actual damages suffered by such station as a result of the 
        infringement, and the remedy provided by subsection (b) of this 
        section.
    ``(b) In any action filed pursuant to section 122(j) of this title 
in which carriage of a television broadcast station has been improperly 
denied, the court shall decree that the satellite carrier is deprived 
of the statutory license under section 122 of this title until carriage 
of such station has been restored.''.
    (d) Technical and Conforming Amendments.--(1) 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 markets.''.
    (2) The table of sections for chapter 5 of title 17, United States 
Code, is amended by adding after the item relating to section 511 the 
following:

``512. Remedies for failure by satellite carriers to carry all local 
                            broadcast stations.''.

SEC. 3. EXTENSION OF APPLICABILITY OF 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) is amended by striking ``December 31, 
1999'' and inserting ``December 31, 2004''.

SEC. 4. UNSERVED HOUSEHOLDS.

    Section 119(d)(10) of title 17, United States Code, is amended to 
read as follows:
            ``(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.''.

SEC. 5. PUBLIC BROADCASTING SERVICE SATELLITE FEED; APPLICATION OF 
              FEDERAL COMMUNICATIONS COMMISSION REGULATIONS.

    (a) Secondary Transmissions.--Section 119(a) of title 17, United 
States Code, is amended--
            (1) in paragraph (1)--
                    (A) by striking the paragraph heading and inserting 
                ``(1) Superstations and pbs satellite feed.--'';
                    (B) by inserting ``or by the Public Broadcasting 
                Service satellite feed'' after ``superstation''; and
                    (C) by inserting ``is permissible under the rules, 
                regulations, or 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, or authorizations of the Federal 
        Communications Commission,'' after ``satellite carrier to the 
        public for private home viewing,''.
    (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. 6. TEMPORARY STAY OF SATELLITE ROYALTY FEE INCREASE.

    Notwithstanding any other provision of law, the Copyright Office 
shall not before December 31, 1999, implement, enforce, collect, or 
award copyright royalty fees pursuant to the decision of the Librarian 
of Congress on October 28, 1997, which established a royalty fee of 
$0.27 per subscriber per month for the retransmission of distant 
broadcast signals by satellite carriers, and no obligation or liability 
for copyright royalty fees shall accrue before December 31, 1999, 
pursuant to that decision. This section shall not affect implementing, 
enforcing, collecting, or awarding copyright royalty fees pursuant to 
the royalty fee structure affected by the decision, as it existed prior 
to October 28, 1997.

SEC. [3.] 7. DIRECT-TO-HOME SATELLITE PIRACY PREVENTION.

    Section 705(d)(6) of the Communications Act of 1934 (47 U.S.C. 
605(d)(6)) is amended by inserting ``or direct-to-home satellite 
services (as defined in section 303(v))'' after ``satellite cable 
programming''.

[SEC. 4. STAY PENDING COMPLETION OF INQUIRY.

    [During the period beginning January 1, 1998, and ending 275 days 
after the submission of the report required by section 623(o) of the 
Communications Act of 1934 (as added by section 2 of this Act), no 
officer or employee of the United States shall take any action to 
implement or enforce, and no obligation or liability shall accrue 
pursuant to, the differential fee decision described in paragraph (4) 
of such section.]
            Amend the title so as to read ``A bill to provide for 
        statutory copyright licensing of secondary transmissions by 
        satellite carriers of primary transmissions of television 
        broadcast stations within the local markets of such stations, 
        and for other purposes.''.