[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1027 Reported in House (RH)]





                                                  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 
        satellite feed, the Public Broadcasting Service shall be the 
        agent for all public television copyright claimants and all 
        Public Broadcasting Service member stations.''.

SEC. 5. PUBLIC BROADCASTING SERVICE SATELLITE FEED; DEFINITIONS.

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

SEC. 6. LOCAL TO LOCAL RETRANSMISSIONS.

    Section 119 of title 17, United States Code, is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``(6)'' and 
                inserting ``(5)'';
                    (B) in paragraph (2)--
                            (i) by striking
            ``(2) Network stations.--
                    ``(A) In general.--Subject to the provisions of 
                subparagraphs (B) and (C) of this paragraph and 
                paragraphs (3), (4), (5), and (6)''
                         and inserting
            ``(2) Network stations.--Subject to the provisions of 
        paragraphs (3), (4), and (5)'' and running in the remaining 
        text of the subparagraph;
                            (ii) by adding at the end of paragraph (2) 
                        the following: ``Notwithstanding the preceding 
                        provisions of this paragraph, secondary 
                        transmissions of programming contained in a 
                        primary transmission made by a network station 
                        and embodying a performance or display of a 
                        work shall not be subject to statutory 
                        licensing under this section in a local market 
                        in which the satellite carrier, or another 
                        satellite carrier, is serving subscribers in 
                        that market with 2 or more television broadcast 
                        stations located in that market pursuant to 
                        section 122.''; and
                            (iii) by striking subparagraphs (B) and 
                        (C);
                    (C) in paragraph (3), by striking ``, or has failed 
                to make the submissions to networks required by 
                paragraph (2)(C)''; and
                    (D) by striking paragraphs (5), (8), (9), and (10) 
                and redesignating paragraphs (6) and (7) as paragraphs 
                (5) and (6), respectively; and
            (2) in subsection (d), by striking paragraphs (10) and 
        (11).

SEC. 7. APPLICATION OF FEDERAL COMMUNICATIONS COMMISSION REGULATIONS.

    Section 119(a) of title 17, United States Code, is amended--
            (1) in paragraph (1), by inserting ``the satellite carrier 
        is in compliance with the rules, regulations, or authorizations 
        of the Federal Communications Commission governing the carriage 
        of television broadcast station signals,'' after ``satellite 
        carrier to the public for private home viewing,''; and
            (2) in paragraph (2), by inserting ``the satellite carrier 
        is in compliance with the rules, regulations, or authorizations 
        of the Federal Communications Commission governing the carriage 
        of television broadcast station signals,'' after ``satellite 
        carrier to the public for private home viewing,''.

SEC. 8. RETRANSMISSION CONSENT.

    Section 325(b) of the Communications Act of 1934 (47 U.S.C. 325(b)) 
is amended--
            (1) by striking paragraphs (1) and (2) and inserting the 
        following:
    ``(b)(1) No cable system or other multichannel video programming 
distributor shall retransmit the signal of a broadcasting station, or 
any part thereof, except--
            ``(A) with the express authority of the station;
            ``(B) pursuant to section 614, in the case of a station 
        electing, in accordance with this subsection, to assert the 
        right to carriage under such section; or
            ``(C) pursuant to section 337, in the case of a station 
        electing, in accordance with this subsection, to assert the 
        right to carriage under such section.
    ``(2) The provisions of this subsection shall not apply to--
            ``(A) retransmission of the signal of a noncommercial 
        broadcasting station;
            ``(B) retransmission of the signal of a television 
        broadcast station outside the station's local market by a 
        satellite carrier directly to its subscribers, if--
                    ``(i) such station was a superstation on May 1, 
                1991; and
                    ``(ii) as of July 1, 1998, such station was 
                retransmitted by a satellite carrier under the 
                statutory license provided in section 119 of title 17, 
                United States Code;
            ``(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
            ``(D) retransmission by a cable operator or other 
        multichannel video provider of the signal of a television 
        broadcast station outside the station's local market if such 
        signal was obtained from a satellite carrier and--
                    ``(i) the originating station was a superstation on 
                May 1, 1991; and
                    ``(ii) as of July 1, 1998, such station was 
                retransmitted by a satellite carrier under the 
                statutory license provided in section 119 of title 17, 
                United States Code.'';
            (2) by adding at the end of paragraph (3) the following new 
        subparagraph:
    ``(C) Within 45 days after the effective date of the Satellite 
Television 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 Satellite 
Television Improvement Act.''; and
            (3) by adding at the end the following new paragraph:
    ``(7) For purposes of this subsection:
            ``(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.
            ``(B) The term `satellite carrier' has the meaning given 
        that term in section 119(d) of title 17, United States Code.''.

SEC. 9. MUST-CARRY FOR SATELLITE CARRIERS RETRANSMITTING TELEVISION 
              BROADCAST SIGNALS.

    Title III of the Communications Act of 1934 is amended by inserting 
after section 337 the following new section:

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

    ``(a) Carriage Obligations.--Each satellite carrier providing 
direct to home service of a television broadcast station to subscribers 
located within the local market of such station pursuant to section 122 
of title 17, United States Code, shall, not later than January 1, 2002, 
carry all television broadcast stations located within that local 
market. Carriage of additional television broadcast stations within the 
local market shall be at the discretion of the satellite carrier, 
subject to section 325(b).
    ``(b) Good Signal Required.--
            ``(1) Costs.--A television broadcast station asserting its 
        right to carriage under subsection (a) shall be required to 
        bear the costs associated with delivering a good quality signal 
        to the designated local receive facility of the satellite 
        carrier. The selection of a local receive facility by a 
        satellite carrier shall not be made in a manner that frustrates 
        the purposes of this section.
            ``(2) Regulations.--The regulations issued under subsection 
        (g) shall set forth the obligations necessary to carry out this 
        subsection.
    ``(c) Duplication Not Required.--Notwithstanding subsection (a), a 
satellite carrier shall not be required 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 carry the 
signals of more that one local television broadcast station affiliated 
with a particular broadcast network (as the term is defined by 
regulation).
    ``(d) Channel Positioning.--No satellite carrier shall be required 
to provide the signal of a local television broadcast station to 
subscribers in that station's local market on any particular channel 
number or to provide the signals in any particular order, except that 
the satellite carrier shall retransmit the signal of the local 
television broadcast station to subscribers in that station's local 
market on contiguous channels and in a nondiscriminatory manner on any 
navigational device, on-screen program guide, or menu.
    ``(e) Compensation for Carriage.--A satellite carrier shall not 
accept or request monetary payment or other valuable consideration in 
exchange either for carriage of local television broadcast stations in 
fulfillment of the requirements of this section or for channel 
positioning rights provided to such stations under this section, except 
that any such station may be required to bear the costs associated with 
delivering a good quality signal to the local receive facility of the 
satellite carrier.
    ``(f) Remedies.--
            ``(1) Complaints by broadcast stations.--Whenever a local 
        television broadcast station believes that a satellite carrier 
        has failed to meet its obligations under this section, such 
        station shall notify the carrier, in writing, of the alleged 
        failure and identify its reasons for believing that the 
        satellite carrier is obligated to carry 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.
            ``(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.
            ``(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.
    ``(g) 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.
    ``(h) Definitions.--As used in this section:
            ``(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.
            ``(2) Local market.--The term `local market' means the 
        designated market area in which a station is located.
            ``(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 or, if no longer published, as determined by 
        another commercial publication that delineates television 
        markets based on viewing patterns.
            ``(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 section.''.

SEC. 10. NETWORK NONDUPLICATION; SYNDICATED EXCLUSIVITY AND SPORTS 
              BLACKOUT.

    (a) Regulations.--
            (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. To the 
extent possible, and where technologically feasible and economically 
reasonable, 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). The Commission shall complete all action 
necessary to prescribe the regulations required by this section so that 
the regulations shall become effective within 1 year after the date of 
the enactment of this Act.
            (2) Network nonduplication.--The network nonduplication 
        regulations required under paragraph (1) shall allow a network 
        television broadcast station to assert nonduplication rights--
                    (A) against a satellite carrier throughout that 
                station's local market if that satellite carrier is 
                retransmitting that station pursuant to section 122 of 
                title 17, United States Code, or other television 
                broadcast stations located in the same local market 
                pursuant to section 122 of title 17, United States 
                Code, except for television broadcast stations located 
                in that same market that are affiliated with the same 
                network as the station, to subscribers located in that 
                station's local market; or
                    (B) against a satellite carrier retransmitting 
                television broadcast stations pursuant to section 119 
                of title 17, United States Code, in the geographic area 
                in which the signal of that television broadcast 
                station is of Grade B intensity as defined by the 
                Federal Communications Commission on March 1, 1999, in 
                section 73.683(a) of title 47, Code of Federal 
                Regulations, based upon the Individually Located 
                Longley-Rice methodology described by the Federal 
                Communications Commission in its Docket No. 98-201, but 
                such geographic area shall not extend beyond the local 
                market of such station.
        If a subscriber's network service is terminated as a result of 
        network nonduplication protection asserted by a local network 
        television broadcast station under subparagraph (B), or as a 
        result of the provisions of section 119 of title 17, United 
        States Code, the satellite carrier shall provide to the 
        subscriber free of charge an over-the-air television broadcast 
        receiving antenna that will provide the subscriber with an 
        over-the-air signal of Grade B intensity for those network 
        stations that were terminated as a result of subparagraph (B).
            (3) Waivers.--(A) The network nonduplication protection 
        described in paragraph (2)(b) shall not apply to a subscriber 
        located in the geographic area that is identified by the 
        Individually Located Longley-Rice methodology described by the 
        Federal Communications Commission in its Docket No. 98-201 who 
        files with the satellite carrier a written waiver with respect 
        to that subscriber's household obtained from the network 
        station whose local market is in that geographic area, allowing 
        the subscriber to receive satellite service of another network 
        station affiliated with that same network. The local network 
        station and the satellite carrier shall maintain a file 
        available to the public that contains such waiver.
            (B) If a subscriber within the local market of a network 
        station petitions the Federal Communications Commission with 
        the written findings and conclusions of a test conducted in 
        accordance with the provisions of section 73.686(d) of title 
        47, Code of Federal Regulations, as in effect on March 1, 1999, 
        demonstrating that the household in which the subscriber 
        resides does not receive an over-the-air signal of the network 
        station of Grade B intensity, the network station shall have 30 
        days in which to file with the Commission an objection to the 
        petition. If the network station does not file a timely 
        objection, then the station may not assert network 
        nonduplication protection described in paragraph (2)(B) with 
        respect to that subscriber's household. If the station does 
        file a timely objection, then the Commission shall have 120 
        days in which to determine the sufficiency of the subscriber's 
        petition. If the Commission determines that the petition is 
        sufficient, then The network nonduplication protection 
        described in paragraph (2)(B) shall not apply to that 
        subscriber's household.
            (4) Interim provisions.--Until the Federal Communications 
        Commission issues regulations under paragraphs (1) and (3), no 
        subscriber whose household is located outside the Grade A 
        contour of a network station shall have his or her satellite 
        service of another network station affiliated with that same 
        network terminated as a result of the provisions of section 119 
        of title 17, United States Code.
            (5) Local market defined.--The term ``local market'' has 
        the meaning provided in section 337(h) of the Communications 
        Act of 1934, as added by section 3 of this Act.
    (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).

SEC. 11. STUDY ON TECHNICAL AND ECONOMIC IMPACT OF MUST-CARRY ON 
              DELIVERY OF LOCAL SIGNALS.

    Not later than July 1, 2000, the Register of Copyrights and the 
Federal Communications Commission shall submit to the Congress a joint 
report that sets forth in detail their findings and conclusions with 
respect to the technical feasibility of imposing the requirements of 
section 337 of the Communications Act of 1934 on satellite carriers 
that deliver local signals, and the technical and economic impact of 
such section on the ability of satellite carriers to serve multiple 
television markets with retransmission of local television broadcast 
stations. In preparing this report, the Register of Copyrights and the 
Commission shall give particular consideration to how section 337 of 
the Communications Act of 1934 affects the technical limitations and 
economic incentives for satellite retransmissions of local television 
broadcast signals in television markets other than the 100 largest 
television markets in the United States (as determined by the Nielsen 
Media Research and published in the DMA Market and Demographic Report).

SEC. 12. EFFECTIVE DATE.

    This Act and the amendments made by this Act shall take effect on 
July 1, 1999, except that--
            (1) the amendments made by section 5 shall take effect on 
        the date of the enactment of this Act; and
            (2) the amendment made by section 6(1)(B)(ii) shall take 
        effect on the date that is 1 year after the date of the 
        enactment of this Act.