[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 768 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 768

To amend title 17, United States Code, to reform the copyright law with 
  respect to satellite retransmissions of broadcast signals, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 23, 1999

 Mr. Coble (for himself and Mr. Cannon) introduced the following bill; 
          which was referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
To amend title 17, United States Code, to reform the copyright law with 
  respect to satellite retransmissions of broadcast signals, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

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 and street address, 
        including county and zip code) all subscribers to which the 
        satellite carrier currently makes secondary transmissions of 
        that primary transmission.
            ``(2) Subsequent lists.--After the list is submitted under 
        paragraph (1), the satellite carrier shall, on the 15th of each 
        month, submit to the station a list identifying (by name and 
        street address, including county and zip code) any subscribers 
        who have been added or dropped as subscribers since the last 
        submission under this subsection.
            ``(3) Use of subscriber information.--Subscriber 
        information submitted by a satellite carrier under this 
        subsection may be used only for the purposes of monitoring 
        compliance by the satellite carrier with this section.
            ``(4) Requirements of stations.--The submission 
        requirements of this subsection shall apply to a satellite 
        carrier only if the station to whom the submissions are to be 
        made places on file with the Register of Copyrights a document 
        identifying the name and address of the person to whom such 
        submissions are to be made. The Register shall maintain for 
        public inspection a file of all such documents.
    ``(c) No Royalty Fee Required.--A satellite carrier whose secondary 
transmissions are subject to statutory licensing under subsection (a) 
shall have no royalty obligation for such secondary transmissions.
    ``(d) Noncompliance With Reporting Requirements.--Notwithstanding 
subsection (a), the willful or repeated secondary transmission to the 
public by a satellite carrier 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) 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. DEFINITIONS.

    Section 119(d) of title 17, United States Code, is amended by 
striking paragraph (10) and inserting the following:
            ``(10) Unserved household.--The term `unserved household', 
        with respect to a particular television network, means a 
        household that 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. 6. PUBLIC BROADCASTING SERVICE SATELLITE FEED.

    (a) Secondary Transmissions.--Section 119(a)(1) of title 17, United 
States Code, is amended--
            (1) by striking the paragraph heading and inserting ``(1) 
        Superstations and pbs satellite feed.--'';
            (2) by inserting ``or by the Public Broadcasting Service 
        satellite feed'' after ``superstation''; and
            (3) by adding at the end the following: ``In the case of 
        the Public Broadcasting Service satellite feed, subsequent to 
        January 1, 2001, or the date on which local retransmissions of 
        broadcast signals are offered to the public, whichever is 
        earlier, the statutory license created by this section shall be 
        conditioned on the Public Broadcasting Service certifying to 
        the Copyright Office on an annual basis that its membership 
        supports the secondary transmission of the Public Broadcasting 
        Service satellite feed, and providing notice to the satellite 
        carrier of such certification.''.
    (b) Definition.--Section 119(d) of title 17, United States Code, is 
amended by adding at the end the following:
            ``(12) Public broadcasting service satellite feed.--The 
        term `Public Broadcasting Service satellite feed' means the 
        national satellite feed distributed by the Public Broadcasting 
        Service consisting of educational and informational programming 
        intended for private home viewing, to which the Public 
        Broadcasting Service holds national terrestrial broadcast 
        rights.''.

SEC. 7. NOTICE TO SUBSCRIBERS.

    Section 119(a)(2) of title 17, United States Code, is amended by 
adding at the end the following:
                    ``(D) Notice to subscribers.--A satellite carrier 
                that makes secondary transmissions of a primary 
                transmission made by a network station pursuant to 
                subparagraph (A) shall, prior to providing service of 
                broadcast signals under this title to a subscriber, 
                provide the subscriber with a written statement 
                describing and quoting the network territorial 
                restrictions of subparagraph (B) of this paragraph and 
                describing and quoting the related provisions of 
                paragraphs (5), (9), and (10). Such statement shall 
                describe the circumstances under which a subscriber may 
                not be eligible for satellite service of a particular 
                network station. With respect to subscribers currently 
                receiving broadcast signals under this title, the 
                satellite carrier shall provide the written statement 
                described in this subparagraph to such subscribers no 
                later than 60 days after the enactment of this 
                subparagraph.''.

SEC. 8. APPLICATION OF FEDERAL COMMUNICATIONS COMMISSION REGULATIONS.

    Section 119(a) of title 17, United States Code, is amended--
            (1) in paragraph (1), by inserting `` 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. 9. EFFECTIVE DATE.

    This Act and the amendments made by this Act shall take effect on 
January 1, 2000, except that the amendments made by section 4 shall 
take effect on July 1, 1999.
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