[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 1948 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                 S. 1948

   To amend the provisions of title 17, United States Code, and the 
    Communications Act of 1934, relating to copyright licensing and 
              carriage of broadcast signals by satellite.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           November 17, 1999

   Mr. Lott introduced the following bill; which was read twice and 
               referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
   To amend the provisions of title 17, United States Code, and the 
    Communications Act of 1934, relating to copyright licensing and 
              carriage of broadcast signals by satellite.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Intellectual 
Property and Communications Omnibus Reform Act of 1999''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec.1.Short title; table of contents.
               TITLE I--SATELLITE HOME VIEWER IMPROVEMENT

Sec.1001.Short title.
Sec.1002.Limitations on exclusive rights; secondary transmissions by 
                            satellite 
                            carriers within local markets.
Sec.1003.Extension of effect of amendments to section 119 of title 17, 
                            United States Code.
Sec.1004.Computation of royalty fees for satellite carriers.
Sec.1005.Distant signal eligibility for consumers.
Sec.1006.Public broadcasting service satellite feed.
Sec.1007.Application of Federal Communications Commission regulations.
Sec.1008.Rules for satellite carriers retransmitting television 
                            broadcast signals.
Sec.1009.Retransmission consent.
Sec.1010.Severability.
Sec.1011.Technical amendments.
Sec.1012.Effective dates.
                TITLE II--RURAL LOCAL TELEVISION SIGNALS

Sec.2001.Short title.
Sec.2002.Local television service in unserved and underserved markets.
              TITLE III--TRADEMARK CYBERPIRACY PREVENTION

Sec.3001.Short title; references.
Sec.3002.Cyberpiracy prevention.
Sec.3003.Damages and remedies.
Sec.3004.Limitation on liability.
Sec.3005.Definitions.
Sec.3006.Study on abusive domain name registrations involving personal 
                            names.
Sec.3007.Historic preservation.
Sec.3008.Savings clause.
Sec.3009.Technical and conforming amendments.
Sec.3010.Effective date.
                     TITLE IV--INVENTOR PROTECTION

Sec.4001.Short title.
                     Subtitle A--Inventors' Rights

Sec.4101.Short title.
Sec.4102.Integrity in invention promotion services.
Sec.4103.Effective date.
             Subtitle B--Patent and Trademark Fee Fairness

Sec.4201.Short title.
Sec.4202.Adjustment of patent fees.
Sec.4203.Adjustment of trademark fees.
Sec.4204.Study on alternative fee structures.
Sec.4205.Patent and Trademark Office Funding.
Sec.4206.Effective date.
                   Subtitle C--First Inventor Defense

Sec.4301.Short title.
Sec.4302.Defense to patent infringement based on earlier inventor.
Sec.4303.Effective date and applicability.
                   Subtitle D--Patent Term Guarantee

Sec.4401.Short title.
Sec.4402.Patent term guarantee authority.
Sec.4403.Continued examination of patent applications.
Sec.4404.Technical clarification.
Sec.4405.Effective date.
   Subtitle E--Domestic Publication of Patent Applications Published 
                                 Abroad

Sec.4501.Short title.
Sec.4502.Publication.
Sec.4503.Time for claiming benefit of earlier filing date.
Sec.4504.Provisional rights.
Sec.4505.Prior art effect of published applications.
Sec.4506.Cost recovery for publication.
Sec.4507.Conforming amendments.
Sec.4508.Effective date.
       Subtitle F--Optional Inter Partes Reexamination Procedure

Sec.4601.Short title.
Sec.4602.Ex parte reexamination of patents.
Sec.4603.Definitions.
Sec.4604.Optional inter partes reexamination procedures.
Sec.4605.Conforming amendments.
Sec.4606.Report to Congress.
Sec.4607.Estoppel effect of reexamination.
Sec.4608.Effective date.
                Subtitle G--Patent and Trademark Office

Sec.4701.Short title.
          Chapter 1--United States Patent and Trademark Office

Sec.4711.Establishment of Patent and Trademark Office.
Sec.4712.Powers and duties.
Sec.4713.Organization and management.
Sec.4714.Public advisory committees.
Sec.4715.Conforming amendments.
Sec.4716.Trademark Trial and Appeal Board.
Sec.4717.Board of Patent Appeals and Interferences.
Sec.4718.Annual report of Director.
Sec.4719.Suspension or exclusion from practice.
Sec.4720.Pay of Director and Deputy Director.
            Chapter 2--Effective Date; Technical Amendments

Sec.4731.Effective date.
Sec.4732.Technical and conforming amendments.
                  Chapter 3--Miscellaneous Provisions

Sec.4741.References.
Sec.4742.Exercise of authorities.
Sec.4743.Savings provisions.
Sec.4744.Transfer of assets.
Sec.4745.Delegation and assignment.
Sec.4746.Authority of Director of the Office of Management and Budget 
                            with 
                            respect to functions transferred.
Sec.4747.Certain vesting of functions considered transfers.
Sec.4748.Availability of existing funds.
Sec.4749.Definitions.
              Subtitle H--Miscellaneous Patent Provisions

Sec.4801.Provisional applications.
Sec.4802.International applications.
Sec.4803.Certain limitations on damages for patent infringement not 
                            applicable.
Sec.4804.Electronic filing and publications.
Sec.4805.Study and report on biological deposits in support of 
                            biotechnology 
                            patents.
Sec.4806.Prior invention.
Sec.4807.Prior art exclusion for certain commonly assigned patents.
Sec.4808.Exchange of copies of patents with foreign countries.
                   TITLE V--MISCELLANEOUS PROVISIONS

Sec.5001.Commission on online child protection.
Sec.5002.Privacy protection for donors to public broadcasting entities.
Sec.5003.Completion of biennial regulatory review.
Sec.5004.Public broadcasting entities.
Sec.5005.Technical amendments relating to vessel hull design 
                            protection.
Sec.5006.Informal rulemaking of copyright determination.
Sec.5007.Service of process for surety corporations.
Sec.5008.Low-power television.
                  TITLE VI--SUPERFUND RECYCLING EQUITY

Sec.6001.Superfund recycling equity.

               TITLE I--SATELLITE HOME VIEWER IMPROVEMENT

SEC. 1001. SHORT TITLE.

    This title may be cited as the ``Satellite Home Viewer Improvement 
Act of 1999''.

SEC. 1002. 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 performance or 
display of a work embodied in 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) with regard to secondary transmissions, 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 the 
        network that owns or is affiliated with the network station a 
        list identifying (by name in alphabetical order and street 
        address, including county and zip code) all subscribers to 
        which the satellite carrier makes secondary transmissions of 
        that primary transmission under subsection (a).
            ``(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 in 
        alphabetical order 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 which 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 of Copyrights 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 and Regulatory 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 embodying a 
performance or display of a work made by that television broadcast 
station 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) or with the rules, 
regulations, and authorizations of the Federal Communications 
Commission concerning the carriage of television broadcast signals.
    ``(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 performance or 
display of a work embodied in a primary transmission made by that 
television broadcast station 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 embodying a performance or display of a 
        work made by a television broadcast station to a subscriber who 
        does not reside in that station's local market, and is not 
        subject to statutory licensing under section 119 or a private 
        licensing agreement, 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 
        embodying a performance or display of a work made by a 
        television broadcast station to subscribers who do not reside 
        in that station's local market, and are not subject to 
        statutory licensing under section 119 or a private licensing 
        agreement, 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--
                            ``(i) 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
                            ``(ii) 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--
                            ``(i) 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
                            ``(ii) 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 (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 or subscribers being served in compliance with 
section 119 or a private licensing agreement.
    ``(h) Geographic Limitations on Secondary Transmissions.--The 
statutory license created by this section shall apply 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) 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.--
                    ``(A) In general.--The term `local market', in the 
                case of both commercial and noncommercial television 
                broadcast stations, means the designated market area in 
                which a station is located, and--
                            ``(i) 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; and
                            ``(ii) in the case of a noncommercial 
                        educational television broadcast station, the 
                        market includes any station that is licensed to 
                        a community within the same designated market 
                        area as the noncommercial educational 
                        television broadcast station.
                    ``(B) County of license.--In addition to the area 
                described in subparagraph (A), a station's local market 
                includes the county in which the station's community of 
                license is located.
                    ``(C) Designated market area.--For purposes of 
                subparagraph (A), the term `designated market area' 
                means a designated market area, as determined by 
                Nielsen Media Research and published in the 1999-2000 
                Nielsen Station Index Directory and Nielsen Station 
                Index United States Television Household Estimates or 
                any successor publication.
            ``(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 a person who 
        receives a secondary transmission service from a satellite 
        carrier 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'--
                    ``(A) 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, 
                except that such term does not include a low-power or 
                translator television station; and
                    ``(B) includes a television broadcast station 
                licensed by an appropriate governmental authority of 
                Canada or Mexico if the station broadcasts primarily in 
                the English language and is a network station as 
                defined in section 119(d)(2)(A).''.
    (b) Infringement of Copyright.--Section 501 of title 17, United 
States Code, is amended by adding at the end the following new 
subsection:
    ``(f)(1) With respect to any secondary transmission that is made by 
a satellite carrier of a performance or display of a work embodied in a 
primary transmission 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.
    ``(2) A television broadcast station may file a civil action 
against any satellite carrier that has refused to carry television 
broadcast signals, as required under section 122(a)(2), to enforce that 
television broadcast station's rights under section 338(a) of the 
Communications Act of 1934.''.
    (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. 1003. 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. 1004. 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 and public broadcasting satellite 
                feed.--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. 1005. DISTANT SIGNAL ELIGIBILITY FOR CONSUMERS.

    (a) Unserved Household.--
            (1) In general.--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--
                    ``(A) cannot receive, through the use of a 
                conventional, stationary, outdoor rooftop receiving 
                antenna, an over-the-air signal of a primary network 
                station affiliated with that network of Grade B 
                intensity as defined by the Federal Communications 
                Commission under section 73.683(a) of title 47 of the 
                Code of Federal Regulations, as in effect on January 1, 
                1999;
                    ``(B) is subject to a waiver granted under 
                regulations established under section 339(c)(2) of the 
                Communications Act of 1934;
                    ``(C) is a subscriber to whom subsection (e) 
                applies;
                    ``(D) is a subscriber to whom subsection (a)(11) 
                applies; or
                    ``(E) is a subscriber to whom the exemption under 
                subsection (a)(2)(B)(iii) applies.''.
            (2) Conforming amendment.--Section 119(a)(2)(B) of title 
        17, United States Code, is amended to read as follows:
                    ``(B) Secondary transmissions to unserved 
                households.--
                            ``(i) In general.--The statutory license 
                        provided for in subparagraph (A) shall be 
                        limited to secondary transmissions of the 
                        signals of no more than two network stations in 
                        a single day for each television network to 
                        persons who reside in unserved households.
                            ``(ii) Accurate determinations of 
                        eligibility.--
                                    ``(I) Accurate predictive model.--
                                In determining presumptively whether a 
                                person resides in an unserved household 
                                under subsection (d)(10)(A), a court 
                                shall rely on the Individual Location 
                                Longley-Rice model set forth by the 
                                Federal Communications Commission in 
                                Docket No. 98-201, as that model may be 
                                amended by the Commission over time 
                                under section 339(c)(3) of the 
                                Communications Act of 1934 to increase 
                                the accuracy of that model.
                                    ``(II) Accurate measurements.--For 
                                purposes of site measurements to 
                                determine whether a person resides in 
                                an unserved household under subsection 
                                (d)(10)(A), a court shall rely on 
                                section 339(c)(4) of the Communications 
                                Act of 1934.
                            ``(iii) C-band exemption to unserved 
                        households.--
                                    ``(I) In general.--The limitations 
                                of clause (i) shall not apply to any 
                                secondary transmissions by C-band 
                                services of network stations that a 
                                subscriber to C-band service received 
                                before any termination of such 
                                secondary transmissions before October 
                                31, 1999.
                                    ``(II) Definition.--In this clause 
                                the term `C-band service' means a 
                                service that is licensed by the Federal 
                                Communications Commission and operates 
                                in the Fixed Satellite Service under 
                                part 25 of title 47 of the Code of 
                                Federal Regulations.''.
    (b) Exception to Limitation on Secondary Transmissions.--Section 
119(a)(5) of title 17, United States Code, is amended by adding at the 
end the following:
                    ``(E) Exception.--The secondary transmission by a 
                satellite carrier of a performance or display of a work 
                embodied in a primary transmission made by a network 
                station to subscribers who do not reside in unserved 
                households shall not be an act of infringement if--
                            ``(i) the station on May 1, 1991, was 
                        retransmitted by a satellite carrier and was 
                        not on that date owned or operated by or 
                        affiliated with a television network that 
                        offered interconnected program service on a 
                        regular basis for 15 or more hours per week to 
                        at least 25 affiliated television licensees in 
                        10 or more States;
                            ``(ii) as of July 1, 1998, such station was 
                        retransmitted by a satellite carrier under the 
                        statutory license of this section; and
                            ``(iii) the station is not owned or 
                        operated by or affiliated with a television 
                        network that, as of January 1, 1995, offered 
                        interconnected program service on a regular 
                        basis for 15 or more hours per week to at least 
                        25 affiliated television licensees in 10 or 
                        more States.''.
    (c) Moratorium on Copyright Liability.--Section 119(e) of title 17, 
United States Code, is amended to read as follows:
    ``(e) Moratorium on Copyright Liability.--Until December 31, 2004, 
a subscriber who does not receive a signal of Grade A intensity (as 
defined in the regulations of the Federal Communications Commission 
under section 73.683(a) of title 47 of the Code of Federal Regulations, 
as in effect on January 1, 1999, or predicted by the Federal 
Communications Commission using the Individual Location Longley-Rice 
methodology described by the Federal Communications Commission in 
Docket No. 98-201) of a local network television broadcast station 
shall remain eligible to receive signals of network stations affiliated 
with the same network, if that subscriber had satellite service of such 
network signal terminated after July 11, 1998, and before October 31, 
1999, as required by this section, or received such service on October 
31, 1999.''.
    (d) Recreational Vehicle and Commercial Truck Exemption.--Section 
119(a) of title 17, United States Code, is amended by adding at the end 
the following:
            ``(11) Service to recreational vehicles and commercial 
        trucks.--
                    ``(A) Exemption.--
                            ``(i) In general.--For purposes of this 
                        subsection, and subject to clauses (ii) and 
                        (iii), the term `unserved household' shall 
                        include--
                                    ``(I) recreational vehicles as 
                                defined in regulations of the Secretary 
                                of Housing and Urban Development under 
                                section 3282.8 of title 24 of the Code 
                                of Federal Regulations; and
                                    ``(II) commercial trucks that 
                                qualify as commercial motor vehicles 
                                under regulations of the Secretary of 
                                Transportation under section 383.5 of 
                                title 49 of the Code of Federal 
                                Regulations.
                            ``(ii) Limitation.--Clause (i) shall apply 
                        only to a recreational vehicle or commercial 
                        truck if any satellite carrier that proposes to 
                        make a secondary transmission of a network 
                        station to the operator of such a recreational 
                        vehicle or commercial truck complies with the 
                        documentation requirements under subparagraphs 
                        (B) and (C).
                            ``(iii) Exclusion.--For purposes of this 
                        subparagraph, the terms `recreational vehicle' 
                        and `commercial truck' shall not include any 
                        fixed dwelling, whether a mobile home or 
                        otherwise.
                    ``(B) Documentation requirements.--A recreational 
                vehicle or commercial truck shall be deemed to be an 
                unserved household beginning 10 days after the relevant 
                satellite carrier provides to the network that owns or 
                is affiliated with the network station that will be 
                secondarily transmitted to the recreational vehicle or 
                commercial truck the following documents:
                            ``(i) Declaration.--A signed declaration by 
                        the operator of the recreational vehicle or 
                        commercial truck that the satellite dish is 
                        permanently attached to the recreational 
                        vehicle or commercial truck, and will not be 
                        used to receive satellite programming at any 
                        fixed dwelling.
                            ``(ii) Registration.--In the case of a 
                        recreational vehicle, a copy of the current 
                        State vehicle registration for the recreational 
                        vehicle.
                            ``(iii) Registration and license.--In the 
                        case of a commercial truck, a copy of--
                                    ``(I) the current State vehicle 
                                registration for the truck; and
                                    ``(II) a copy of a valid, current 
                                commercial driver's license, as defined 
                                in regulations of the Secretary of 
                                Transportation under section 383 of 
                                title 49 of the Code of Federal 
                                Regulations, issued to the operator.
                    ``(C) Updated documentation requirements.--If a 
                satellite carrier wishes to continue to make secondary 
                transmissions to a recreational vehicle or commercial 
                truck for more than a 2-year period, that carrier shall 
                provide each network, upon request, with updated 
                documentation in the form described under subparagraph 
                (B) during the 90 days before expiration of that 2-year 
                period.''.
    (e) Conforming Amendment.--Section 119(d)(11) of title 17, United 
States Code, is amended to read as follows:
            ``(11) Local market.--The term `local market' has the 
        meaning given such term under section 122(j).''.

SEC. 1006. 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, the statutory 
        license shall be effective until January 1, 2002.''.
    (b) Royalty Fees.--Section 119(b)(1)(B)(iii) of title 17, United 
States Code, is amended by inserting ``or the Public Broadcasting 
Service satellite feed'' after ``network station''.
    (c) Definitions.--Section 119(d) of title 17, United States Code, 
is amended--
            (1) by amending paragraph (9) to read as follows:
            ``(9) Superstation.--The term `superstation'--
                    ``(A) means a television broadcast station, other 
                than a network station, licensed by the Federal 
                Communications Commission that is secondarily 
                transmitted by a satellite carrier; and
                    ``(B) except for purposes of computing the royalty 
                fee, includes the Public Broadcasting Service satellite 
                feed.''; and
            (2) 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 and designated for purposes 
        of this section 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. 1007. APPLICATION OF FEDERAL COMMUNICATIONS COMMISSION 
              REGULATIONS.

    Section 119(a) of title 17, United States Code, is amended--
            (1) in paragraph (1), by inserting ``with regard to 
        secondary transmissions 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,'';
            (2) in paragraph (2), by inserting ``with regard to 
        secondary transmissions 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
            (3) by adding at the end of such subsection (as amended by 
        section 1005(e) of this Act) the following new paragraph:
            ``(12) Statutory license contingent on compliance with fcc 
        rules and remedial steps.--Notwithstanding any other provision 
        of this section, the willful or repeated secondary transmission 
        to the public by a satellite carrier of a primary transmission 
        embodying a performance or display of a work made by a 
        broadcast station licensed by the Federal Communications 
        Commission 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 rules, regulations, and authorizations of the Federal 
        Communications Commission concerning the carriage of television 
        broadcast station signals.''.

SEC. 1008. RULES FOR SATELLITE CARRIERS RETRANSMITTING TELEVISION 
              BROADCAST SIGNALS.

    (a) Amendments to Communications Act of 1934.--Title III of the 
Communications Act of 1934 is amended by inserting after section 337 
(47 U.S.C. 337) the following new sections:

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

    ``(a) Carriage Obligations.--
            ``(1) In general.--Subject to the limitations of paragraph 
        (2), each satellite carrier providing, under section 122 of 
        title 17, United States Code, 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 the signals of all television 
        broadcast stations located within that local market, subject to 
        section 325(b).
            ``(2) Remedies for failure to carry.--The remedies for any 
        failure to meet the obligations under this subsection shall be 
        available exclusively under section 501(f) of title 17, United 
        States Code.
            ``(3) Effective date.--No satellite carrier shall be 
        required to carry local television broadcast stations under 
        paragraph (1) until January 1, 2002.
    ``(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 or to another facility that is acceptable to at least 
        one-half the stations asserting the right to carriage in the 
        local market.
            ``(2) Regulations.--The regulations issued under subsection 
        (g) shall set forth the obligations necessary to carry out this 
        subsection.
    ``(c) Duplication Not Required.--
            ``(1) Commercial stations.--Notwithstanding subsection (a), 
        a satellite carrier shall not be required to carry upon request 
        the signal of any local commercial television broadcast station 
        that substantially duplicates the signal of another local 
        commercial television broadcast station which is secondarily 
        transmitted by the satellite carrier within the same local 
        market, or to carry upon request the signals of more than one 
        local commercial television broadcast station in a single local 
        market that is affiliated with a particular television network 
        unless such stations are licensed to communities in different 
        States.
            ``(2) Noncommercial stations.--The Commission shall 
        prescribe regulations limiting the carriage requirements under 
        subsection (a) of satellite carriers with respect to the 
        carriage of multiple local noncommercial television broadcast 
        stations. To the extent possible, such regulations shall 
        provide the same degree of carriage by satellite carriers of 
        such multiple stations as is provided by cable systems under 
        section 615.
    ``(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 stations to subscribers in the stations' local 
market on contiguous channels and provide access to such station's 
signals at a nondiscriminatory price 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 subsections (b) 
        through (e) of this section, such station shall notify the 
        carrier, in writing, of the alleged failure and identify its 
        reasons for believing that the satellite carrier failed to 
        comply with such obligations. The satellite carrier shall, 
        within 30 days after such written notification, respond in 
        writing to such notification and comply with such obligations 
        or state its reasons for believing that it is in compliance 
        with such obligations. A local television broadcast station 
        that disputes a response by a satellite carrier that it is in 
        compliance with such obligations may obtain review of such 
        denial or response 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 
        the satellite carrier against which a complaint is filed under 
        paragraph (1) an 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 under paragraph (1), the 
        Commission shall determine whether the satellite carrier has 
        met its obligations under subsections (b) through (e). If the 
        Commission determines that the satellite carrier has failed to 
        meet such obligations, the Commission shall order the satellite 
        carrier to take appropriate remedial action. If the Commission 
        determines that the satellite carrier has fully met the 
        requirements of such subsections, the Commission shall dismiss 
        the complaint.
    ``(g) Regulations by Commission.--Within 1 year after the date of 
the enactment of this section, the Commission shall issue regulations 
implementing this section following a rulemaking proceeding. The 
regulations prescribed under this section shall include requirements on 
satellite carriers that are comparable to the requirements on cable 
operators under sections 614(b)(3) and (4) and 615(g)(1) and (2).
    ``(h) Definitions.--As used 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 receive facility.--The term `local receive 
        facility' means the reception point in each local market which 
        a satellite carrier designates for delivery of the signal of 
        the station for purposes of retransmission.
            ``(3) Local market.--The term `local market' has the 
        meaning given that term under section 122(j) of title 17, 
        United States Code.
            ``(4) Satellite carrier.--The term `satellite carrier' has 
        the meaning given such term under section 119(d) of title 17, 
        United States Code.
            ``(5) Secondary transmission.--The term `secondary 
        transmission' has the meaning given such term in section 119(d) 
        of title 17, United States Code.
            ``(6) Subscriber.--The term `subscriber' has the meaning 
        given that term under section 122(j) of title 17, United States 
        Code.
            ``(7) Television broadcast station.--The term `television 
        broadcast station' has the meaning given such term in section 
        325(b)(7).

``SEC. 339. CARRIAGE OF DISTANT TELEVISION STATIONS BY SATELLITE 
              CARRIERS.

    ``(a) Provisions Relating to Carriage of Distant Signals.--
            ``(1) Carriage permitted.--
                    ``(A) In general.--Subject to section 119 of title 
                17, United States Code, any satellite carrier shall be 
                permitted to provide the signals of no more than two 
                network stations in a single day for each television 
                network to any household not located within the local 
                markets of those network stations.
                    ``(B) Additional service.--In addition to signals 
                provided under subparagraph (A), any satellite carrier 
                may also provide service under the statutory license of 
                section 122 of title 17, United States Code, to the 
                local market within which such household is located. 
                The service provided under section 122 of such title 
                may be in addition to the two signals provided under 
                section 119 of such title.
            ``(2) Penalty for violation.--Any satellite carrier that 
        knowingly and willfully provides the signals of television 
        stations to subscribers in violation of this subsection shall 
        be liable for a forfeiture penalty under section 503 in the 
        amount of $50,000 for each violation or each day of a 
        continuing violation.
    ``(b) Extension of Network Nonduplication, Syndicated Exclusivity, 
and Sports Blackout to Satellite Retransmission.--
            ``(1) Extension of protections.--Within 45 days after the 
        date of the enactment of the Satellite Home Viewer Improvement 
        Act of 1999, the Commission shall commence a single rulemaking 
        proceeding to establish regulations that--
                    ``(A) apply network nonduplication protection (47 
                CFR 76.92) syndicated exclusivity protection (47 CFR 
                76.151), and sports blackout protection (47 CFR 76.67) 
                to the retransmission of the signals of nationally 
                distributed superstations by satellite carriers to 
                subscribers; and
                    ``(B) to the extent technically feasible and not 
                economically prohibitive, apply sports blackout 
                protection (47 CFR 76.67) to the retransmission of the 
                signals of network stations by satellite carriers to 
                subscribers.
            ``(2) Deadline for action.--The Commission shall complete 
        all actions necessary to prescribe regulations required by this 
        section so that the regulations shall become effective within 1 
        year after such date of enactment.
    ``(c) Eligibility for Retransmission.--
            ``(1) Signal standard for satellite carrier purposes.--For 
        the purposes of identifying an unserved household under section 
        119(d)(10) of title 17, United States Code, within 1 year after 
        the date of the enactment of the Satellite Home Viewer 
        Improvement Act of 1999, the Commission shall conclude an 
        inquiry to evaluate all possible standards and factors for 
        determining eligibility for retransmissions of the signals of 
        network stations, and, if appropriate--
                    ``(A) recommend modifications to the Grade B 
                intensity standard for analog signals set forth in 
                section 73.683(a) of its regulations (47 CFR 
                73.683(a)), or recommend alternative standards or 
                factors for purposes of determining such eligibility; 
                and
                    ``(B) make a further recommendation relating to an 
                appropriate standard for digital signals.
            ``(2) Waivers.--A subscriber who is denied the 
        retransmission of a signal of a network station under section 
        119 of title 17, United States Code, may request a waiver from 
        such denial by submitting a request, through such subscriber's 
        satellite carrier, to the network station asserting that the 
        retransmission is prohibited. The network station shall accept 
        or reject a subscriber's request for a waiver within 30 days 
        after receipt of the request. The subscriber shall be permitted 
        to receive such retransmission under section 119(d)(10)(B) of 
        title 17, United States Code, if such station agrees to the 
        waiver request and files with the satellite carrier a written 
        waiver with respect to that subscriber allowing the subscriber 
        to receive such retransmission. If a television network station 
        fails to accept or reject a subscriber's request for a waiver 
        within the 30-day period after receipt of the request, that 
        station shall be deemed to agree to the waiver request and have 
        filed such written waiver.
            ``(3) Establishment of improved predictive model 
        required.--Within 180 days after the date of the enactment of 
        the Satellite Home Viewer Improvement Act of 1999, the 
        Commission shall take all actions necessary, including any 
        reconsideration, to develop and prescribe by rule a point-to-
        point predictive model for reliably and presumptively 
        determining the ability of individual locations to receive 
        signals in accordance with the signal intensity standard in 
        effect under section 119(d)(10)(A) of title 17, United States 
        Code. In prescribing such model, the Commission shall rely on 
        the Individual Location Longley-Rice model set forth by the 
        Federal Communications Commission in Docket No. 98-201 and 
        ensure that such model takes into account terrain, building 
        structures, and other land cover variations. The Commission 
        shall establish procedures for the continued refinement in the 
        application of the model by the use of additional data as it 
        becomes available.
            ``(4) Objective verification.--
                    ``(A) In general.--If a subscriber's request for a 
                waiver under paragraph (2) is rejected and the 
                subscriber submits to the subscriber's satellite 
                carrier a request for a test verifying the subscriber's 
                inability to receive a signal that meets the signal 
                intensity standard in effect under section 
                119(d)(10)(A) of title 17, United States Code, the 
                satellite carrier and the network station or stations 
                asserting that the retransmission is prohibited with 
                respect to that subscriber shall select a qualified and 
                independent person to conduct a test in accordance with 
                section 73.686(d) of its regulations (47 CFR 
                73.686(d)), or any successor regulation. Such test 
                shall be conducted within 30 days after the date the 
                subscriber submits a request for the test. If the 
                written findings and conclusions of a test conducted in 
                accordance with such section (or any successor 
                regulation) demonstrate that the subscriber does not 
                receive a signal that meets or exceeds the signal 
                intensity standard in effect under section 
                119(d)(10)(A) of title 17, United States Code, the 
                subscriber shall not be denied the retransmission of a 
                signal of a network station under section 119 of title 
                17, United States Code.
                    ``(B) Designation of tester and allocation of 
                costs.--If the satellite carrier and the network 
                station or stations asserting that the retransmission 
                is prohibited are unable to agree on such a person to 
                conduct the test, the person shall be designated by an 
                independent and neutral entity designated by the 
                Commission by rule. Unless the satellite carrier and 
                the network station or stations otherwise agree, the 
                costs of conducting the test under this paragraph shall 
                be borne by the satellite carrier, if the station's 
                signal meets or exceeds the signal intensity standard 
                in effect under section 119(d)(10)(A) of title 17, 
                United States Code, or by the network station, if its 
                signal fails to meet or exceed such standard.
                    ``(C) Avoidance of undue burden.-- Commission 
                regulations prescribed under this paragraph shall seek 
                to avoid any undue burden on any party.
    ``(d) Definitions.--For the purposes of this section:
            ``(1) Local market.--The term `local market' has the 
        meaning given that term under section 122(j) of title 17, 
        United States Code.
            ``(2) Nationally distributed superstation.--The term 
        `nationally distributed superstation' means a television 
        broadcast station, licensed by the Commission, that--
                    ``(A) is not owned or operated by or affiliated 
                with a television network that, as of January 1, 1995, 
                offered interconnected program service on a regular 
                basis for 15 or more hours per week to at least 25 
                affiliated television licensees in 10 or more States;
                    ``(B) on May 1, 1991, was retransmitted by a 
                satellite carrier and was not a network station at that 
                time; and
                    ``(C) was, as of July 1, 1998, retransmitted by a 
                satellite carrier under the statutory license of 
                section 119 of title 17, United States Code.
            ``(3) Network station.--The term `network station' has the 
        meaning given such term under section 119(d) of title 17, 
        United States Code.
            ``(4) Satellite carrier.--The term `satellite carrier' has 
        the meaning given such term under section 119(d) of title 17, 
        United States Code.
            ``(5) Television network.--The term `television network' 
        means a television network in the United States which offers an 
        interconnected program service on a regular basis for 15 or 
        more hours per week to at least 25 affiliated broadcast 
        stations in 10 or more States.''.
    (b) Network Station Definition.--Section 119(d)(2) of title 17, 
United States Code, is amended--
            (1) in subparagraph (B) by striking the period and 
        inserting a semicolon; and
            (2) by adding after subparagraph (B) the following:
``except that the term does not include the signal of the Alaska Rural 
Communications Service, or any successor entity to that service.''.

SEC. 1009. RETRANSMISSION CONSENT.

    (a) In General.--Section 325(b) of the Communications Act of 1934 
(47 U.S.C. 325(b)) is amended--
            (1) by amending paragraphs (1) and (2) to read as follows:
    ``(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 originating 
        station;
            ``(B) under 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) under section 338, in the case of a station electing, 
        in accordance with this subsection, to assert the right to 
        carriage under such section.
    ``(2) This subsection shall not apply--
            ``(A) to retransmission of the signal of a noncommercial 
        television broadcast station;
            ``(B) to 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;
                    ``(ii) as of July 1, 1998, such station was 
                retransmitted by a satellite carrier under the 
                statutory license of section 119 of title 17, United 
                States Code; and
                    ``(iii) the satellite carrier complies with any 
                network nonduplication, syndicated exclusivity, and 
                sports blackout rules adopted by the Commission under 
                section 339(b) of this Act;
            ``(C) until December 31, 2004, to retransmission of the 
        signals of network stations directly to a home satellite 
        antenna, if the subscriber receiving the signal--
                    ``(i) is located in an area outside the local 
                market of such stations; and
                    ``(ii) resides in an unserved household;
            ``(D) to retransmission by a cable operator or other 
        multichannel video provider, other than a satellite carrier, 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 of section 119 of title 17, United 
                States Code; or
            ``(E) during the 6-month period beginning on the date of 
        the enactment of the Satellite Home Viewer Improvement Act of 
        1999, to the retransmission of the signal of a television 
        broadcast station within the station's local market by a 
        satellite carrier directly to its subscribers under the 
        statutory license of section 122 of title 17, United States 
        Code.
For purposes of this paragraph, the terms `satellite carrier' and 
`superstation' have the meanings given those terms, respectively, in 
section 119(d) of title 17, United States Code, as in effect on the 
date of the enactment of the Cable Television Consumer Protection and 
Competition Act of 1992, the term `unserved household' has the meaning 
given that term under section 119(d) of such title, and the term `local 
market' has the meaning given that term in section 122(j) of such 
title.'';
            (2) by adding at the end of paragraph (3) the following new 
        subparagraph:
    ``(C) Within 45 days after the date of the enactment of the 
Satellite Home Viewer Improvement Act of 1999, 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 limitations contained in 
paragraph (2). The Commission shall complete all actions necessary to 
prescribe such regulations within 1 year after such date of enactment. 
Such regulations shall--
            ``(i) establish election time periods that correspond with 
        those regulations adopted under subparagraph (B) of this 
        paragraph; and
            ``(ii) until January 1, 2006, prohibit a television 
        broadcast station that provides retransmission consent from 
        engaging in exclusive contracts for carriage or failing to 
        negotiate in good faith, and it shall not be a failure to 
        negotiate in good faith if the television broadcast station 
        enters into retransmission consent agreements containing 
        different terms and conditions, including price terms, with 
        different multichannel video programming distributors if such 
        different terms and conditions are based on competitive 
        marketplace considerations.'';
            (3) in paragraph (4), by adding at the end the following 
        new sentence: ``If an originating television station elects 
        under paragraph (3)(C) to exercise its right to grant 
        retransmission consent under this subsection with respect to a 
        satellite carrier, section 338 shall not apply to the carriage 
        of the signal of such station by such satellite carrier.'';
            (4) in paragraph (5), by striking ``614 or 615'' and 
        inserting ``338, 614, or 615''; and
            (5) by adding at the end the following new paragraph:
            ``(7) For purposes of this subsection, the term--
                    ``(A) `network station' has the meaning given such 
                term under section 119(d) of title 17, United States 
                Code; and
                    ``(B) `television broadcast station' means an over-
                the-air commercial or noncommercial television 
                broadcast station licensed by the Commission under 
                subpart E of part 73 of title 47, Code of Federal 
                Regulations, except that such term does not include a 
                low-power or translator television station.''.
    (b) Enforcement Provisions for Consent for Retransmissions.--
Section 325 of the Communications Act of 1934 (47 U.S.C. 325) is 
amended by adding at the end the following new subsection:
    ``(e) Enforcement Proceedings Against Satellite Carriers Concerning 
Retransmissions of Television Broadcast Stations in the Respective 
Local Markets of Such Carriers.--
            ``(1) Complaints by television broadcast stations.--If 
        after the expiration of the 6-month period described under 
        subsection (b)(2)(E) a television broadcast station believes 
        that a satellite carrier has retransmitted its signal to any 
        person in the local market of such station in violation of 
        subsection (b)(1), the station may file with the Commission a 
        complaint providing--
                    ``(A) the name, address, and call letters of the 
                station;
                    ``(B) the name and address of the satellite 
                carrier;
                    ``(C) the dates on which the alleged retransmission 
                occurred;
                    ``(D) the street address of at least one person in 
                the local market of the station to whom the alleged 
                retransmission was made;
                    ``(E) a statement that the retransmission was not 
                expressly authorized by the television broadcast 
                station; and
                    ``(F) the name and address of counsel for the 
                station.
            ``(2) Service of complaints on satellite carriers.--For 
        purposes of any proceeding under this subsection, any satellite 
        carrier that retransmits the signal of any broadcast station 
        shall be deemed to designate the Secretary of the Commission as 
        its agent for service of process. A television broadcast 
        station may serve a satellite carrier with a complaint 
        concerning an alleged violation of subsection (b)(1) through 
        retransmission of a station within the local market of such 
        station by filing the original and two copies of the complaint 
        with the Secretary of the Commission and serving a copy of the 
        complaint on the satellite carrier by means of two commonly 
        used overnight delivery services, each addressed to the chief 
        executive officer of the satellite carrier at its principal 
        place of business, and each marked `URGENT LITIGATION MATTER' 
        on the outer packaging. Service shall be deemed complete one 
        business day after a copy of the complaint is provided to the 
        delivery services for overnight delivery. On receipt of a 
        complaint filed by a television broadcast station under this 
        subsection, the Secretary of the Commission shall send the 
        original complaint by United States mail, postage prepaid, 
        receipt requested, addressed to the chief executive officer of 
        the satellite carrier at its principal place of business.
            ``(3) Answers by satellite carriers.--Within five business 
        days after the date of service, the satellite carrier shall 
        file an answer with the Commission and shall serve the answer 
        by a commonly used overnight delivery service and by United 
        States mail, on the counsel designated in the complaint at the 
        address listed for such counsel in the complaint.
            ``(4) Defenses.--
                    ``(A) Exclusive defenses.--The defenses under this 
                paragraph are the exclusive defenses available to a 
                satellite carrier against which a complaint under this 
                subsection is filed.
                    ``(B) Defenses.--The defenses referred to under 
                subparagraph (A) are the defenses that--
                            ``(i) the satellite carrier did not 
                        retransmit the television broadcast station to 
                        any person in the local market of the station 
                        during the time period specified in the 
                        complaint;
                            ``(ii) the television broadcast station 
                        had, in a writing signed by an officer of the 
                        television broadcast station, expressly 
                        authorized the retransmission of the station by 
                        the satellite carrier to each person in the 
                        local market of the television broadcast 
                        station to which the satellite carrier made 
                        such retransmissions for the entire time period 
                        during which it is alleged that a violation of 
                        subsection (b)(1) has occurred;
                            ``(iii) the retransmission was made after 
                        January 1, 2002, and the television broadcast 
                        station had elected to assert the right to 
                        carriage under section 338 as against the 
                        satellite carrier for the relevant period; or
                            ``(iv) the station being retransmitted is a 
                        noncommercial television broadcast station.
            ``(5) Counting of violations.--The retransmission without 
        consent of a particular television broadcast station on a 
        particular day to one or more persons in the local market of 
        the station shall be considered a separate violation of 
        subsection (b)(1).
            ``(6) Burden of proof.--With respect to each alleged 
        violation, the burden of proof shall be on a television 
        broadcast station to establish that the satellite carrier 
        retransmitted the station to at least one person in the local 
        market of the station on the day in question. The burden of 
        proof shall be on the satellite carrier with respect to all 
        defenses other than the defense under paragraph (4)(B)(i).
            ``(7) Procedures.--
                    ``(A) Regulations.--Within 60 days after the date 
                of the enactment of the Satellite Home Viewer 
                Improvement Act of 1999, the Commission shall issue 
                procedural regulations implementing this subsection 
                which shall supersede procedures under section 312.
                    ``(B) Determinations.--
                            ``(i) In general.--Within 45 days after the 
                        filing of a complaint, the Commission shall 
                        issue a final determination in any proceeding 
                        brought under this subsection. The Commission's 
                        final determination shall specify the number of 
                        violations committed by the satellite carrier. 
                        The Commission shall hear witnesses only if it 
                        clearly appears, based on written filings by 
                        the parties, that there is a genuine dispute 
                        about material facts. Except as provided in the 
                        preceding sentence, the Commission may issue a 
                        final ruling based on written filings by the 
                        parties.
                            ``(ii) Discovery.--The Commission may 
                        direct the parties to exchange pertinent 
                        documents, and if necessary to take prehearing 
                        depositions, on such schedule as the Commission 
                        may approve, but only if the Commission first 
                        determines that such discovery is necessary to 
                        resolve a genuine dispute about material facts, 
                        consistent with the obligation to make a final 
                        determination within 45 days.
            ``(8) Relief.--If the Commission determines that a 
        satellite carrier has retransmitted the television broadcast 
        station to at least one person in the local market of such 
        station and has failed to meet its burden of proving one of the 
        defenses under paragraph (4) with respect to such 
        retransmission, the Commission shall be required to--
                    ``(A) make a finding that the satellite carrier 
                violated subsection (b)(1) with respect to that 
                station; and
                    ``(B) issue an order, within 45 days after the 
                filing of the complaint, containing--
                            ``(i) a cease-and-desist order directing 
                        the satellite carrier immediately to stop 
                        making any further retransmissions of the 
                        television broadcast station to any person 
                        within the local market of such station until 
                        such time as the Commission determines that the 
                        satellite carrier is in compliance with 
                        subsection (b)(1) with respect to such station;
                            ``(ii) if the satellite carrier is found to 
                        have violated subsection (b)(1) with respect to 
                        more than two television broadcast stations, a 
                        cease-and-desist order directing the satellite 
                        carrier to stop making any further 
                        retransmission of any television broadcast 
                        station to any person within the local market 
                        of such station, until such time as the 
                        Commission, after giving notice to the station, 
                        that the satellite carrier is in compliance 
                        with subsection (b)(1) with respect to such 
                        stations; and
                            ``(iii) an award to the complainant of that 
                        complainant's costs and reasonable attorney's 
                        fees.
            ``(9) Court proceedings on enforcement of commission 
        order.--
                    ``(A) In general.--On entry by the Commission of a 
                final order granting relief under this subsection--
                            ``(i) a television broadcast station may 
                        apply within 30 days after such entry to the 
                        United States District Court for the Eastern 
                        District of Virginia for a final judgment 
                        enforcing all relief granted by the Commission; 
                        and
                            ``(ii) the satellite carrier may apply 
                        within 30 days after such entry to the United 
                        States District Court for the Eastern District 
                        of Virginia for a judgment reversing the 
                        Commission's order.
                    ``(B) Appeal.--The procedure for an appeal under 
                this paragraph by the satellite carrier shall supersede 
                any other appeal rights under Federal or State law. A 
                United States district court shall be deemed to have 
                personal jurisdiction over the satellite carrier if the 
                carrier, or a company under common control with the 
                satellite carrier, has delivered television programming 
                by satellite to more than 30 customers in that district 
                during the preceding 4-year period. If the United 
                States District Court for the Eastern District of 
                Virginia does not have personal jurisdiction over the 
                satellite carrier, an enforcement action or appeal 
                shall be brought in the United States District Court 
                for the District of Columbia, which may find personal 
                jurisdiction based on the satellite carrier's ownership 
                of licenses issued by the Commission. An application by 
                a television broadcast station for an order enforcing 
                any cease-and-desist relief granted by the Commission 
                shall be resolved on a highly expedited schedule. No 
                discovery may be conducted by the parties in any such 
                proceeding. The district court shall enforce the 
                Commission order unless the Commission record reflects 
                manifest error and an abuse of discretion by the 
                Commission.
            ``(10) Civil action for statutory damages.--Within 6 months 
        after issuance of an order by the Commission under this 
        subsection, a television broadcast station may file a civil 
        action in any United States district court that has personal 
        jurisdiction over the satellite carrier for an award of 
        statutory damages for any violation that the Commission has 
        determined to have been committed by a satellite carrier under 
        this subsection. Such action shall not be subject to transfer 
        under section 1404(a) of title 28, United States Code. On 
        finding that the satellite carrier has committed one or more 
        violations of subsection (b), the District Court shall be 
        required to award the television broadcast station statutory 
        damages of $25,000 per violation, in accordance with paragraph 
        (5), and the costs and attorney's fees incurred by the station. 
        Such statutory damages shall be awarded only if the television 
        broadcast station has filed a binding stipulation with the 
        court that such station will donate the full amount in excess 
        of $1,000 of any statutory damage award to the United States 
        Treasury for public purposes. Notwithstanding any other 
        provision of law, a station shall incur no tax liability of any 
        kind with respect to any amounts so donated. Discovery may be 
        conducted by the parties in any proceeding under this paragraph 
        only if and to the extent necessary to resolve a genuinely 
        disputed issue of fact concerning one of the defenses under 
        paragraph (4). In any such action, the defenses under paragraph 
        (4) shall be exclusive, and the burden of proof shall be on the 
        satellite carrier with respect to all defenses other than the 
        defense under paragraph (4)(B)(i). A judgment under this 
        paragraph may be enforced in any manner permissible under 
        Federal or State law.
            ``(11) Appeals.--
                    ``(A) In general.--The nonprevailing party before a 
                United States district court may appeal a decision 
                under this subsection to the United States Court of 
                Appeals with jurisdiction over that district court. The 
                Court of Appeals shall not issue any stay of the 
                effectiveness of any decision granting relief against a 
                satellite carrier unless the carrier presents clear and 
                convincing evidence that it is highly likely to prevail 
                on appeal and only after posting a bond for the full 
                amount of any monetary award assessed against it and 
                for such further amount as the Court of Appeals may 
                believe appropriate.
                    ``(B) Appeal.--If the Commission denies relief in 
                response to a complaint filed by a television broadcast 
                station under this subsection, the television broadcast 
                station filing the complaint may file an appeal with 
                the United States Court of Appeals for the District of 
                Columbia Circuit.
            ``(12) Sunset.--No complaint or civil action may be filed 
        under this subsection after December 31, 2001. This subsection 
        shall continue to apply to any complaint or civil action filed 
        on or before such date.''.

SEC. 1010. SEVERABILITY.

    If any provision of section 325(b) of the Communications Act of 
1934 (47 U.S.C. 325(b)), or the application of that provision to any 
person or circumstance, is held by a court of competent jurisdiction to 
violate any provision of the Constitution of the United States, then 
the other provisions of that section, and the application of that 
provision to other persons and circumstances, shall not be affected.

SEC. 1011. TECHNICAL AMENDMENTS.

    (a) Technical Amendments Relating to Cable Systems.--Title 17, 
United States Code, is amended as follows:
            (1) Such title is amended by striking ``programing'' each 
        place it appears and inserting ``programming''.
            (2) Section 111 is amended by striking ``compulsory'' each 
        place it appears and inserting ``statutory''.
            (3) Section 510(b) is amended by striking ``compulsory'' 
        and inserting ``statutory''.
    (b) Technical Amendments Relating to Performance or Displays Of 
Works.--
            (1) Section 111 of title 17, United States Code, is 
        amended--
                    (A) in subsection (a), in the matter preceding 
                paragraph (1), by striking ``primary transmission 
                embodying a performance or display of a work'' and 
                inserting ``performance or display of a work embodied 
                in a primary transmission'';
                    (B) in subsection (b), in the matter preceding 
                paragraph (1), by striking ``primary transmission 
                embodying a performance or display of a work'' and 
                inserting ``performance or display of a work embodied 
                in a primary transmission''; and
                    (C) in subsection (c)--
                            (i) in paragraph (1)--
                                    (I) by inserting ``a performance or 
                                display of a work embodied in'' after 
                                ``by a cable system of''; and
                                    (II) by striking ``and embodying a 
                                performance or display of a work''; and
                            (ii) in paragraphs (3) and (4)--
                                    (I) by striking ``a primary 
                                transmission'' and inserting ``a 
                                performance or display of a work 
                                embodied in a primary transmission''; 
                                and
                                    (II) by striking ``and embodying a 
                                performance or display of a work''.
            (2) Section 119(a) of title 17, United States Code, is 
        amended--
                    (A) in paragraph (1), by striking ``primary 
                transmission made by a superstation and embodying a 
                performance or display of a work'' and inserting 
                ``performance or display of a work embodied in a 
                primary transmission made by a superstation'';
                    (B) in paragraph (2)(A), by striking 
                ``programming'' and all that follows through ``a work'' 
                and inserting ``a performance or display of a work 
                embodied in a primary transmission made by a network 
                station'';
                    (C) in paragraph (4)--
                            (i) by inserting ``a performance or display 
                        of a work embodied in'' after ``by a satellite 
                        carrier of''; and
                            (ii) by striking ``and embodying a 
                        performance or display of a work''; and
                    (D) in paragraph (6)--
                            (i) by inserting ``performance or display 
                        of a work embodied in'' after ``by a satellite 
                        carrier of''; and
                            (ii) by striking ``and embodying a 
                        performance or display of a work''.
            (3) Section 501(e) of title 17, United States Code, is 
        amended by striking ``primary transmission embodying the 
        performance or display of a work'' and inserting ``performance 
        or display of a work embodied in a primary transmission''.
    (c) Conforming Amendment.--Section 119(a)(2)(C) of title 17, United 
States Code, is amended in the first sentence by striking 
``currently''.
    (d) Work Made for Hire.--Section 101 of title 17, United States 
Code, is amended in the definition relating to work for hire in 
paragraph (2) by inserting ``as a sound recording,'' after 
``audiovisual work''.

SEC. 1012. EFFECTIVE DATES.

    Sections 1001, 1003, 1005, 1007, 1008, 1009, 1010, and 1011 (and 
the amendments made by such sections) shall take effect on the date of 
the enactment of this Act. The amendments made by sections 1002, 1004, 
and 1006 shall be effective as of July 1, 1999.

                TITLE II--RURAL LOCAL TELEVISION SIGNALS

SEC. 2001. SHORT TITLE.

    This title may be cited as the ``Rural Local Broadcast Signal 
Act''.

SEC. 2002. LOCAL TELEVISION SERVICE IN UNSERVED AND UNDERSERVED 
              MARKETS.

    (a) In General.--Not later than 1 year after the date of the 
enactment of this Act, the Federal Communications Commission (``the 
Commission'') shall take all actions necessary to make a determination 
regarding licenses or other authorizations for facilities that will 
utilize, for delivering local broadcast television station signals to 
satellite television subscribers in unserved and underserved local 
television markets, spectrum otherwise allocated to commercial use.
    (b) Rules.--
            (1) Form of business.--To the extent not inconsistent with 
        the Communications Act of 1934 and the Commission's rules, the 
        Commission shall permit applicants under subsection (a) to 
        engage in partnerships, joint ventures, and similar operating 
        arrangements for the purpose of carrying out subsection (a).
            (2) Harmful interference.--The Commission shall ensure that 
        no facility licensed or authorized under subsection (a) causes 
        harmful interference to the primary users of that spectrum or 
        to public safety spectrum use.
            (3) Limitation on commission.--Except as provided in 
        paragraphs (1) and (2), the Commission may not restrict any 
        entity granted a license or other authorization under 
        subsection (a) from using any reasonable compression, 
        reformatting, or other technology.
    (c) Report.--Not later than January 1, 2001, the Commission shall 
report to the Agriculture, Appropriations, and the Judiciary Committees 
of the Senate and the House of Representatives, the Senate Committee on 
Commerce, Science, and Transportation, and the House of Representatives 
Committee on Commerce, on the extent to which licenses and other 
authorizations under subsection (a) have facilitated the delivery of 
local signals to satellite television subscribers in unserved and 
underserved local television markets. The report shall include--
            (1) an analysis of the extent to which local signals are 
        being provided by direct-to-home satellite television providers 
        and by other multichannel video program distributors;
            (2) an enumeration of the technical, economic, and other 
        impediments each type of multichannel video programming 
        distributor has encountered; and
            (3) recommendations for specific measures to facilitate the 
        provision of local signals to subscribers in unserved and 
        underserved markets by direct-to-home satellite television 
        providers and by other distributors of multichannel video 
        programming service.

              TITLE III--TRADEMARK CYBERPIRACY PREVENTION

SEC. 3001. SHORT TITLE; REFERENCES.

    (a) Short Title.--This title may be cited as the 
``Anticybersquatting Consumer Protection Act''.
    (b) References to the Trademark Act of 1946.--Any reference in this 
title to the Trademark Act of 1946 shall be a reference to the Act 
entitled ``An Act to provide for the registration and protection of 
trademarks used in commerce, to carry out the provisions of certain 
international conventions, and for other purposes'', approved July 5, 
1946 (15 U.S.C. 1051 et seq.).

SEC. 3002. CYBERPIRACY PREVENTION.

    (a) In General.--Section 43 of the Trademark Act of 1946 (15 U.S.C. 
1125) is amended by inserting at the end the following:
    ``(d)(1)(A) A person shall be liable in a civil action by the owner 
of a mark, including a personal name which is protected as a mark under 
this section, if, without regard to the goods or services of the 
parties, that person--
            ``(i) has a bad faith intent to profit from that mark, 
        including a personal name which is protected as a mark under 
        this section; and
            ``(ii) registers, traffics in, or uses a domain name that--
                    ``(I) in the case of a mark that is distinctive at 
                the time of registration of the domain name, is 
                identical or confusingly similar to that mark;
                    ``(II) in the case of a famous mark that is famous 
                at the time of registration of the domain name, is 
                identical or confusingly similar to or dilutive of that 
                mark; or
                    ``(III) is a trademark, word, or name protected by 
                reason of section 706 of title 18, United States Code, 
                or section 220506 of title 36, United States Code.
    ``(B)(i) In determining whether a person has a bad faith intent 
described under subparagraph (A), a court may consider factors such as, 
but not limited to--
            ``(I) the trademark or other intellectual property rights 
        of the person, if any, in the domain name;
            ``(II) the extent to which the domain name consists of the 
        legal name of the person or a name that is otherwise commonly 
        used to identify that person;
            ``(III) the person's prior use, if any, of the domain name 
        in connection with the bona fide offering of any goods or 
        services;
            ``(IV) the person's bona fide noncommercial or fair use of 
        the mark in a site accessible under the domain name;
            ``(V) the person's intent to divert consumers from the mark 
        owner's online location to a site accessible under the domain 
        name that could harm the goodwill represented by the mark, 
        either for commercial gain or with the intent to tarnish or 
        disparage the mark, by creating a likelihood of confusion as to 
        the source, sponsorship, affiliation, or endorsement of the 
        site;
            ``(VI) the person's offer to transfer, sell, or otherwise 
        assign the domain name to the mark owner or any third party for 
        financial gain without having used, or having an intent to use, 
        the domain name in the bona fide offering of any goods or 
        services, or the person's prior conduct indicating a pattern of 
        such conduct;
            ``(VII) the person's provision of material and misleading 
        false contact information when applying for the registration of 
        the domain name, the person's intentional failure to maintain 
        accurate contact information, or the person's prior conduct 
        indicating a pattern of such conduct;
            ``(VIII) the person's registration or acquisition of 
        multiple domain names which the person knows are identical or 
        confusingly similar to marks of others that are distinctive at 
        the time of registration of such domain names, or dilutive of 
        famous marks of others that are famous at the time of 
        registration of such domain names, without regard to the goods 
        or services of the parties; and
            ``(IX) the extent to which the mark incorporated in the 
        person's domain name registration is or is not distinctive and 
        famous within the meaning of subsection (c)(1) of section 43.
    ``(ii) Bad faith intent described under subparagraph (A) shall not 
be found in any case in which the court determines that the person 
believed and had reasonable grounds to believe that the use of the 
domain name was a fair use or otherwise lawful.
    ``(C) In any civil action involving the registration, trafficking, 
or use of a domain name under this paragraph, a court may order the 
forfeiture or cancellation of the domain name or the transfer of the 
domain name to the owner of the mark.
    ``(D) A person shall be liable for using a domain name under 
subparagraph (A) only if that person is the domain name registrant or 
that registrant's authorized licensee.
    ``(E) As used in this paragraph, the term `traffics in' refers to 
transactions that include, but are not limited to, sales, purchases, 
loans, pledges, licenses, exchanges of currency, and any other transfer 
for consideration or receipt in exchange for consideration.
    ``(2)(A) The owner of a mark may file an in rem civil action 
against a domain name in the judicial district in which the domain name 
registrar, domain name registry, or other domain name authority that 
registered or assigned the domain name is located if--
            ``(i) the domain name violates any right of the owner of a 
        mark registered in the Patent and Trademark Office, or 
        protected under subsection (a) or (c); and
            ``(ii) the court finds that the owner--
                    ``(I) is not able to obtain in personam 
                jurisdiction over a person who would have been a 
                defendant in a civil action under paragraph (1); or
                    ``(II) through due diligence was not able to find a 
                person who would have been a defendant in a civil 
                action under paragraph (1) by--
                            ``(aa) sending a notice of the alleged 
                        violation and intent to proceed under this 
                        paragraph to the registrant of the domain name 
                        at the postal and e-mail address provided by 
                        the registrant to the registrar; and
                            ``(bb) publishing notice of the action as 
                        the court may direct promptly after filing the 
                        action.
    ``(B) The actions under subparagraph (A)(ii) shall constitute 
service of process.
    ``(C) In an in rem action under this paragraph, a domain name shall 
be deemed to have its situs in the judicial district in which--
            ``(i) the domain name registrar, registry, or other domain 
        name authority that registered or assigned the domain name is 
        located; or
            ``(ii) documents sufficient to establish control and 
        authority regarding the disposition of the registration and use 
        of the domain name are deposited with the court.
    ``(D)(i) The remedies in an in rem action under this paragraph 
shall be limited to a court order for the forfeiture or cancellation of 
the domain name or the transfer of the domain name to the owner of the 
mark. Upon receipt of written notification of a filed, stamped copy of 
a complaint filed by the owner of a mark in a United States district 
court under this paragraph, the domain name registrar, domain name 
registry, or other domain name authority shall--
            ``(I) expeditiously deposit with the court documents 
        sufficient to establish the court's control and authority 
        regarding the disposition of the registration and use of the 
        domain name to the court; and
            ``(II) not transfer, suspend, or otherwise modify the 
        domain name during the pendency of the action, except upon 
        order of the court.
    ``(ii) The domain name registrar or registry or other domain name 
authority shall not be liable for injunctive or monetary relief under 
this paragraph except in the case of bad faith or reckless disregard, 
which includes a willful failure to comply with any such court order.
    ``(3) The civil action established under paragraph (1) and the in 
rem action established under paragraph (2), and any remedy available 
under either such action, shall be in addition to any other civil 
action or remedy otherwise applicable.
    ``(4) The in rem jurisdiction established under paragraph (2) shall 
be in addition to any other jurisdiction that otherwise exists, whether 
in rem or in personam.''.
    (b) Cyberpiracy Protections for Individuals.--
            (1) In general.--
                    (A) Civil liability.--Any person who registers a 
                domain name that consists of the name of another living 
                person, or a name substantially and confusingly similar 
                thereto, without that person's consent, with the 
                specific intent to profit from such name by selling the 
                domain name for financial gain to that person or any 
                third party, shall be liable in a civil action by such 
                person.
                    (B) Exception.--A person who in good faith 
                registers a domain name consisting of the name of 
                another living person, or a name substantially and 
                confusingly similar thereto, shall not be liable under 
                this paragraph if such name is used in, affiliated 
                with, or related to a work of authorship protected 
                under title 17, United States Code, including a work 
                made for hire as defined in section 101 of title 17, 
                United States Code, and if the person registering the 
                domain name is the copyright owner or licensee of the 
                work, the person intends to sell the domain name in 
                conjunction with the lawful exploitation of the work, 
                and such registration is not prohibited by a contract 
                between the registrant and the named person. The 
                exception under this subparagraph shall apply only to a 
                civil action brought under paragraph (1) and shall in 
                no manner limit the protections afforded under the 
                Trademark Act of 1946 (15 U.S.C. 1051 et seq.) or other 
                provision of Federal or State law.
            (2) Remedies.--In any civil action brought under paragraph 
        (1), a court may award injunctive relief, including the 
        forfeiture or cancellation of the domain name or the transfer 
        of the domain name to the plaintiff. The court may also, in its 
        discretion, award costs and attorneys fees to the prevailing 
        party.
            (3) Definition.--In this subsection, the term ``domain 
        name'' has the meaning given that term in section 45 of the 
        Trademark Act of 1946 (15 U.S.C. 1127).
            (4) Effective date.--This subsection shall apply to domain 
        names registered on or after the date of the enactment of this 
        Act.

SEC. 3003. DAMAGES AND REMEDIES.

    (a) Remedies in Cases of Domain Name Piracy.--
            (1) Injunctions.--Section 34(a) of the Trademark Act of 
        1946 (15 U.S.C. 1116(a)) is amended in the first sentence by 
        striking ``(a) or (c)'' and inserting ``(a), (c), or (d)''.
            (2) Damages.--Section 35(a) of the Trademark Act of 1946 
        (15 U.S.C. 1117(a)) is amended in the first sentence by 
        inserting ``, (c), or (d)'' after ``section 43(a)''.
    (b) Statutory Damages.--Section 35 of the Trademark Act of 1946 (15 
U.S.C. 1117) is amended by adding at the end the following:
    ``(d) In a case involving a violation of section 43(d)(1), the 
plaintiff may elect, at any time before final judgment is rendered by 
the trial court, to recover, instead of actual damages and profits, an 
award of statutory damages in the amount of not less than $1,000 and 
not more than $100,000 per domain name, as the court considers just.

SEC. 3004. LIMITATION ON LIABILITY.

    Section 32(2) of the Trademark Act of 1946 (15 U.S.C. 1114) is 
amended--
            (1) in the matter preceding subparagraph (A) by striking 
        ``under section 43(a)'' and inserting ``under section 43(a) or 
        (d)''; and
            (2) by redesignating subparagraph (D) as subparagraph (E) 
        and inserting after subparagraph (C) the following:
            ``(D)(i)(I) A domain name registrar, a domain name 
        registry, or other domain name registration authority that 
        takes any action described under clause (ii) affecting a domain 
        name shall not be liable for monetary relief or, except as 
        provided in subclause (II), for injunctive relief, to any 
        person for such action, regardless of whether the domain name 
        is finally determined to infringe or dilute the mark.
            ``(II) A domain name registrar, domain name registry, or 
        other domain name registration authority described in subclause 
        (I) may be subject to injunctive relief only if such registrar, 
        registry, or other registration authority has--
                    ``(aa) not expeditiously deposited with a court, in 
                which an action has been filed regarding the 
                disposition of the domain name, documents sufficient 
                for the court to establish the court's control and 
                authority regarding the disposition of the registration 
                and use of the domain name;
                    ``(bb) transferred, suspended, or otherwise 
                modified the domain name during the pendency of the 
                action, except upon order of the court; or
                    ``(cc) willfully failed to comply with any such 
                court order.
            ``(ii) An action referred to under clause (i)(I) is any 
        action of refusing to register, removing from registration, 
        transferring, temporarily disabling, or permanently canceling a 
        domain name--
                    ``(I) in compliance with a court order under 
                section 43(d); or
                    ``(II) in the implementation of a reasonable policy 
                by such registrar, registry, or authority prohibiting 
                the registration of a domain name that is identical to, 
                confusingly similar to, or dilutive of another's mark.
            ``(iii) A domain name registrar, a domain name registry, or 
        other domain name registration authority shall not be liable 
        for damages under this section for the registration or 
        maintenance of a domain name for another absent a showing of 
        bad faith intent to profit from such registration or 
        maintenance of the domain name.
            ``(iv) If a registrar, registry, or other registration 
        authority takes an action described under clause (ii) based on 
        a knowing and material misrepresentation by any other person 
        that a domain name is identical to, confusingly similar to, or 
        dilutive of a mark, the person making the knowing and material 
        misrepresentation shall be liable for any damages, including 
        costs and attorney's fees, incurred by the domain name 
        registrant as a result of such action. The court may also grant 
        injunctive relief to the domain name registrant, including the 
        reactivation of the domain name or the transfer of the domain 
        name to the domain name registrant.
            ``(v) A domain name registrant whose domain name has been 
        suspended, disabled, or transferred under a policy described 
        under clause (ii)(II) may, upon notice to the mark owner, file 
        a civil action to establish that the registration or use of the 
        domain name by such registrant is not unlawful under this Act. 
        The court may grant injunctive relief to the domain name 
        registrant, including the reactivation of the domain name or 
        transfer of the domain name to the domain name registrant.''.

SEC. 3005. DEFINITIONS.

    Section 45 of the Trademark Act of 1946 (15 U.S.C. 1127) is amended 
by inserting after the undesignated paragraph defining the term 
``counterfeit'' the following:
    ``The term `domain name' means any alphanumeric designation which 
is registered with or assigned by any domain name registrar, domain 
name registry, or other domain name registration authority as part of 
an electronic address on the Internet.
    ``The term `Internet' has the meaning given that term in section 
230(f)(1) of the Communications Act of 1934 (47 U.S.C. 230(f)(1)).''.

SEC. 3006. STUDY ON ABUSIVE DOMAIN NAME REGISTRATIONS INVOLVING 
              PERSONAL NAMES.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Commerce, in consultation with 
the Patent and Trademark Office and the Federal Election Commission, 
shall conduct a study and report to Congress with recommendations on 
guidelines and procedures for resolving disputes involving the 
registration or use by a person of a domain name that includes the 
personal name of another person, in whole or in part, or a name 
confusingly similar thereto, including consideration of and 
recommendations for--
            (1) protecting personal names from registration by another 
        person as a second level domain name for purposes of selling or 
        otherwise transferring such domain name to such other person or 
        any third party for financial gain;
            (2) protecting individuals from bad faith uses of their 
        personal names as second level domain names by others with 
        malicious intent to harm the reputation of the individual or 
        the goodwill associated with that individual's name;
            (3) protecting consumers from the registration and use of 
        domain names that include personal names in the second level 
        domain in manners which are intended or are likely to confuse 
        or deceive the public as to the affiliation, connection, or 
        association of the domain name registrant, or a site accessible 
        under the domain name, with such other person, or as to the 
        origin, sponsorship, or approval of the goods, services, or 
        commercial activities of the domain name registrant;
            (4) protecting the public from registration of domain names 
        that include the personal names of government officials, 
        official candidates, and potential official candidates for 
        Federal, State, or local political office in the United States, 
        and the use of such domain names in a manner that disrupts the 
        electoral process or the public's ability to access accurate 
        and reliable information regarding such individuals;
            (5) existing remedies, whether under State law or 
        otherwise, and the extent to which such remedies are sufficient 
        to address the considerations described in paragraphs (1) 
        through (4); and
            (6) the guidelines, procedures, and policies of the 
        Internet Corporation for Assigned Names and Numbers and the 
        extent to which they address the considerations described in 
        paragraphs (1) through (4).
    (b) Guidelines and Procedures.--The Secretary of Commerce shall, 
under its Memorandum of Understanding with the Internet Corporation for 
Assigned Names and Numbers, collaborate to develop guidelines and 
procedures for resolving disputes involving the registration or use by 
a person of a domain name that includes the personal name of another 
person, in whole or in part, or a name confusingly similar thereto.

SEC. 3007. HISTORIC PRESERVATION.

    Section 101(a)(1)(A) of the National Historic Preservation Act (16 
U.S.C. 470a(a)(1)(A)) is amended by adding at the end the following: 
``Notwithstanding section 43(c) of the Act entitled `An Act to provide 
for the registration and protection of trademarks used in commerce, to 
carry out the provisions of certain international conventions, and for 
other purposes', approved July 5, 1946 (commonly known as the 
`Trademark Act of 1946' (15 U.S.C. 1125(c))), buildings and structures 
on or eligible for inclusion on the National Register of Historic 
Places (either individually or as part of a historic district), or 
designated as an individual landmark or as a contributing building in a 
historic district by a unit of State or local government, may retain 
the name historically associated with the building or structure.''.

SEC. 3008. SAVINGS CLAUSE.

    Nothing in this title shall affect any defense available to a 
defendant under the Trademark Act of 1946 (including any defense under 
section 43(c)(4) of such Act or relating to fair use) or a person's 
right of free speech or expression under the first amendment of the 
United States Constitution.

SEC. 3009. TECHNICAL AND CONFORMING AMENDMENTS.

    Chapter 85 of title 28, United States Code, is amended as follows:
            (1) Section 1338 of title 28, United States Codes, is 
        amended--
                    (A) in the section heading by striking ``trade-
                marks'' and inserting ``trademarks'';
                    (B) in subsection (a) by striking ``trade-marks'' 
                and inserting ``trademarks''; and
                    (C) in subsection (b) by striking ``trade-mark'' 
                and inserting ``trademark''.
            (2) The item relating to section 1338 in the table of 
        sections for chapter 85 of title 28, United States Code, is 
        amended by striking ``trade-marks'' and inserting 
        ``trademarks''.

SEC. 3010. EFFECTIVE DATE.

    Sections 3002(a), 3003, 3004, 3005, and 3008 of this title shall 
apply to all domain names registered before, on, or after the date of 
the enactment of this Act, except that damages under subsection (a) or 
(d) of section 35 of the Trademark Act of 1946 (15 U.S.C. 1117), as 
amended by section 3003 of this title, shall not be available with 
respect to the registration, trafficking, or use of a domain name that 
occurs before the date of the enactment of this Act.

                     TITLE IV--INVENTOR PROTECTION

SEC. 4001. SHORT TITLE.

    This title may be cited as the ``American Inventors Protection Act 
of 1999''.

                     Subtitle A--Inventors' Rights

SEC. 4101. SHORT TITLE.

    This subtitle may be cited as the ``Inventors' Rights Act of 
1999''.

SEC. 4102. INTEGRITY IN INVENTION PROMOTION SERVICES.

    (a) In General.--Chapter 29 of title 35, United States Code, is 
amended by adding at the end the following new section:
``Sec. 297. Improper and deceptive invention promotion
    ``(a) In General.--An invention promoter shall have a duty to 
disclose the following information to a customer in writing, prior to 
entering into a contract for invention promotion services:
            ``(1) the total number of inventions evaluated by the 
        invention promoter for commercial potential in the past 5 
        years, as well as the number of those inventions that received 
        positive evaluations, and the number of those inventions that 
        received negative evaluations;
            ``(2) the total number of customers who have contracted 
        with the invention promoter in the past 5 years, not including 
        customers who have purchased trade show services, research, 
        advertising, or other nonmarketing services from the invention 
        promoter, or who have defaulted in their payment to the 
        invention promoter;
            ``(3) the total number of customers known by the invention 
        promoter to have received a net financial profit as a direct 
        result of the invention promotion services provided by such 
        invention promoter;
            ``(4) the total number of customers known by the invention 
        promoter to have received license agreements for their 
        inventions as a direct result of the invention promotion 
        services provided by such invention promoter; and
            ``(5) the names and addresses of all previous invention 
        promotion companies with which the invention promoter or its 
        officers have collectively or individually been affiliated in 
        the previous 10 years.
    ``(b) Civil Action.--(1) Any customer who enters into a contract 
with an invention promoter and who is found by a court to have been 
injured by any material false or fraudulent statement or 
representation, or any omission of material fact, by that invention 
promoter (or any agent, employee, director, officer, partner, or 
independent contractor of such invention promoter), or by the failure 
of that invention promoter to disclose such information as required 
under subsection (a), may recover in a civil action against the 
invention promoter (or the officers, directors, or partners of such 
invention promoter), in addition to reasonable costs and attorneys' 
fees--
            ``(A) the amount of actual damages incurred by the 
        customer; or
            ``(B) at the election of the customer at any time before 
        final judgment is rendered, statutory damages in a sum of not 
        more than $5,000, as the court considers just.
    ``(2) Notwithstanding paragraph (1), in a case where the customer 
sustains the burden of proof, and the court finds, that the invention 
promoter intentionally misrepresented or omitted a material fact to 
such customer, or willfully failed to disclose such information as 
required under subsection (a), with the purpose of deceiving that 
customer, the court may increase damages to not more than three times 
the amount awarded, taking into account past complaints made against 
the invention promoter that resulted in regulatory sanctions or other 
corrective actions based on those records compiled by the Commissioner 
of Patents under subsection (d).
    ``(c) Definitions.--For purposes of this section--
            ``(1) a `contract for invention promotion services' means a 
        contract by which an invention promoter undertakes invention 
        promotion services for a customer;
            ``(2) a `customer' is any individual who enters into a 
        contract with an invention promoter for invention promotion 
        services;
            ``(3) the term `invention promoter' means any person, firm, 
        partnership, corporation, or other entity who offers to perform 
        or performs invention promotion services for, or on behalf of, 
        a customer, and who holds itself out through advertising in any 
        mass media as providing such services, but does not include--
                    ``(A) any department or agency of the Federal 
                Government or of a State or local government;
                    ``(B) any nonprofit, charitable, scientific, or 
                educational organization, qualified under applicable 
                State law or described under section 170(b)(1)(A) of 
                the Internal Revenue Code of 1986;
                    ``(C) any person or entity involved in the 
                evaluation to determine commercial potential of, or 
                offering to license or sell, a utility patent or a 
                previously filed nonprovisional utility patent 
                application;
                    ``(D) any party participating in a transaction 
                involving the sale of the stock or assets of a 
                business; or
                    ``(E) any party who directly engages in the 
                business of retail sales of products or the 
                distribution of products; and
            ``(4) the term `invention promotion services' means the 
        procurement or attempted procurement for a customer of a firm, 
        corporation, or other entity to develop and market products or 
        services that include the invention of the customer.
    ``(d) Records of Complaints.--
            ``(1) Release of complaints.--The Commissioner of Patents 
        shall make all complaints received by the Patent and Trademark 
        Office involving invention promoters publicly available, 
        together with any response of the invention promoters. The 
        Commissioner of Patents shall notify the invention promoter of 
        a complaint and provide a reasonable opportunity to reply prior 
        to making such complaint publicly available.
            ``(2) Request for complaints.--The Commissioner of Patents 
        may request complaints relating to invention promotion services 
        from any Federal or State agency and include such complaints in 
        the records maintained under paragraph (1), together with any 
        response of the invention promoters.''.
    (b) Conforming Amendment.--The table of sections at the beginning 
of chapter 29 of title 35, United States Code, is amended by adding at 
the end the following new item:

``297. Improper and deceptive invention promotion.''.

SEC. 4103. EFFECTIVE DATE.

    This subtitle and the amendments made by this subtitle shall take 
effect 60 days after the date of the enactment of this Act.

             Subtitle B--Patent and Trademark Fee Fairness

SEC. 4201. SHORT TITLE.

    This subtitle may be cited as the ``Patent and Trademark Fee 
Fairness Act of 1999''.

SEC. 4202. ADJUSTMENT OF PATENT FEES.

    (a) Original Filing Fee.--Section 41(a)(1)(A) of title 35, United 
States Code, relating to the fee for filing an original patent 
application, is amended by striking ``$760'' and inserting ``$690''.
    (b) Reissue Fee.--Section 41(a)(4)(A) of title 35, United States 
Code, relating to the fee for filing for a reissue of a patent, is 
amended by striking ``$760'' and inserting ``$690''.
    (c) National Fee for Certain International Applications.--Section 
41(a)(10) of title 35, United States Code, relating to the national fee 
for certain international applications, is amended by striking ``$760'' 
and inserting ``$690''.
    (d) Maintenance Fees.--Section 41(b)(1) of title 35, United States 
Code, relating to certain maintenance fees, is amended by striking 
``$940'' and inserting ``$830''.

SEC. 4203. ADJUSTMENT OF TRADEMARK FEES.

    Notwithstanding the second sentence of section 31(a) of the 
Trademark Act of 1946 (15 U.S.C. 111(a)), the Under Secretary of 
Commerce for Intellectual Property and Director of the United States 
Patent and Trademark Office is authorized in fiscal year 2000 to adjust 
trademark fees without regard to fluctuations in the Consumer Price 
Index during the preceding 12 months.

SEC. 4204. STUDY ON ALTERNATIVE FEE STRUCTURES.

    The Under Secretary of Commerce for Intellectual Property and 
Director of the United States Patent and Trademark Office shall conduct 
a study of alternative fee structures that could be adopted by the 
United States Patent and Trademark Office to encourage maximum 
participation by the inventor community in the United States. The 
Director shall submit such study to the Committees on the Judiciary of 
the House of Representatives and the Senate not later than 1 year after 
the date of the enactment of this Act.

SEC. 4205. PATENT AND TRADEMARK OFFICE FUNDING.

    Section 42(c) of title 35, United States Code, is amended in the 
second sentence--
            (1) by striking ``Fees available'' and inserting ``All fees 
        available''; and
            (2) by striking ``may'' and inserting ``shall''.

SEC. 4206. EFFECTIVE DATE.

    (a) In General.--Except as provided in subsection (b), the 
amendments made by this subtitle shall take effect on the date of the 
enactment of this Act.
    (b) Section 4202.--The amendments made by section 4202 of this 
subtitle shall take effect 30 days after the date of the enactment of 
this Act.

                   Subtitle C--First Inventor Defense

SEC. 4301. SHORT TITLE.

    This subtitle may be cited as the ``First Inventor Defense Act of 
1999''.

SEC. 4302. DEFENSE TO PATENT INFRINGEMENT BASED ON EARLIER INVENTOR.

    (a) Defense.--Chapter 28 of title 35, United States Code, is 
amended by adding at the end the following new section:
``Sec. 273. Defense to infringement based on earlier inventor
    ``(a) Definitions.--For purposes of this section--
            ``(1) the terms `commercially used' and `commercial use' 
        mean use of a method in the United States, so long as such use 
        is in connection with an internal commercial use or an actual 
        arm's-length sale or other arm's-length commercial transfer of 
        a useful end result, whether or not the subject matter at issue 
        is accessible to or otherwise known to the public, except that 
        the subject matter for which commercial marketing or use is 
        subject to a premarketing regulatory review period during which 
        the safety or efficacy of the subject matter is established, 
        including any period specified in section 156(g), shall be 
        deemed `commercially used' and in `commercial use' during such 
        regulatory review period;
            ``(2) in the case of activities performed by a nonprofit 
        research laboratory, or nonprofit entity such as a university, 
        research center, or hospital, a use for which the public is the 
        intended beneficiary shall be considered to be a use described 
        in paragraph (1), except that the use--
                    ``(A) may be asserted as a defense under this 
                section only for continued use by and in the laboratory 
                or nonprofit entity; and
                    ``(B) may not be asserted as a defense with respect 
                to any subsequent commercialization or use outside such 
                laboratory or nonprofit entity;
            ``(3) the term `method' means a method of doing or 
        conducting business; and
            ``(4) the `effective filing date' of a patent is the 
        earlier of the actual filing date of the application for the 
        patent or the filing date of any earlier United States, 
        foreign, or international application to which the subject 
        matter at issue is entitled under section 119, 120, or 365 of 
        this title.
    ``(b) Defense to Infringement.--
            ``(1) In general.--It shall be a defense to an action for 
        infringement under section 271 of this title with respect to 
        any subject matter that would otherwise infringe one or more 
        claims for a method in the patent being asserted against a 
        person, if such person had, acting in good faith, actually 
        reduced the subject matter to practice at least 1 year before 
        the effective filing date of such patent, and commercially used 
        the subject matter before the effective filing date of such 
        patent.
            ``(2) Exhaustion of right.--The sale or other disposition 
        of a useful end product produced by a patented method, by a 
        person entitled to assert a defense under this section with 
        respect to that useful end result shall exhaust the patent 
        owner's rights under the patent to the extent such rights would 
        have been exhausted had such sale or other disposition been 
        made by the patent owner.
            ``(3) Limitations and qualifications of defense.--The 
        defense to infringement under this section is subject to the 
        following:
                    ``(A) Patent.--A person may not assert the defense 
                under this section unless the invention for which the 
                defense is asserted is for a method.
                    ``(B) Derivation.--A person may not assert the 
                defense under this section if the subject matter on 
                which the defense is based was derived from the 
                patentee or persons in privity with the patentee.
                    ``(C) Not a general license.--The defense asserted 
                by a person under this section is not a general license 
                under all claims of the patent at issue, but extends 
                only to the specific subject matter claimed in the 
                patent with respect to which the person can assert a 
                defense under this chapter, except that the defense 
                shall also extend to variations in the quantity or 
                volume of use of the claimed subject matter, and to 
                improvements in the claimed subject matter that do not 
                infringe additional specifically claimed subject matter 
                of the patent.
            ``(4) Burden of proof.--A person asserting the defense 
        under this section shall have the burden of establishing the 
        defense by clear and convincing evidence.
            ``(5) Abandonment of use.--A person who has abandoned 
        commercial use of subject matter may not rely on activities 
        performed before the date of such abandonment in establishing a 
        defense under this section with respect to actions taken after 
        the date of such abandonment.
            ``(6) Personal defense.--The defense under this section may 
        be asserted only by the person who performed the acts necessary 
        to establish the defense and, except for any transfer to the 
        patent owner, the right to assert the defense shall not be 
        licensed or assigned or transferred to another person except as 
        an ancillary and subordinate part of a good faith assignment or 
        transfer for other reasons of the entire enterprise or line of 
        business to which the defense relates.
            ``(7) Limitation on sites.--A defense under this section, 
        when acquired as part of a good faith assignment or transfer of 
        an entire enterprise or line of business to which the defense 
        relates, may only be asserted for uses at sites where the 
        subject matter that would otherwise infringe one or more of the 
        claims is in use before the later of the effective filing date 
        of the patent or the date of the assignment or transfer of such 
        enterprise or line of business.
            ``(8) Unsuccessful assertion of defense.--If the defense 
        under this section is pleaded by a person who is found to 
        infringe the patent and who subsequently fails to demonstrate a 
        reasonable basis for asserting the defense, the court shall 
        find the case exceptional for the purpose of awarding attorney 
        fees under section 285 of this title.
            ``(9) Invalidity.--A patent shall not be deemed to be 
        invalid under section 102 or 103 of this title solely because a 
        defense is raised or established under this section.''.
    (b) Conforming Amendment.--The table of sections at the beginning 
of chapter 28 of title 35, United States Code, is amended by adding at 
the end the following new item:

``273. Defense to infringement based on earlier inventor.''.

SEC. 4303. EFFECTIVE DATE AND APPLICABILITY.

    This subtitle and the amendments made by this subtitle shall take 
effect on the date of the enactment of this Act, but shall not apply to 
any action for infringement that is pending on such date of enactment 
or with respect to any subject matter for which an adjudication of 
infringement, including a consent judgment, has been made before such 
date of enactment.

                   Subtitle D--Patent Term Guarantee

SEC. 4401. SHORT TITLE.

    This subtitle may be cited as the ``Patent Term Guarantee Act of 
1999''.

SEC. 4402. PATENT TERM GUARANTEE AUTHORITY.

    (a) Adjustment of Patent Term.--Section 154(b) of title 35, United 
States Code, is amended to read as follows:
    ``(b) Adjustment of Patent Term.--
            ``(1) Patent term guarantees.--
                    ``(A) Guarantee of prompt patent and trademark 
                office responses.--Subject to the limitations under 
                paragraph (2), if the issue of an original patent is 
                delayed due to the failure of the Patent and Trademark 
                Office to--
                            ``(i) provide at least one of the 
                        notifications under section 132 of this title 
                        or a notice of allowance under section 151 of 
                        this title not later than 14 months after--
                                    ``(I) the date on which an 
                                application was filed under section 
                                111(a) of this title; or
                                    ``(II) the date on which an 
                                international application fulfilled the 
                                requirements of section 371 of this 
                                title;
                            ``(ii) respond to a reply under section 
                        132, or to an appeal taken under section 134, 
                        within 4 months after the date on which the 
                        reply was filed or the appeal was taken;
                            ``(iii) act on an application within 4 
                        months after the date of a decision by the 
                        Board of Patent Appeals and Interferences under 
                        section 134 or 135 or a decision by a Federal 
                        court under section 141, 145, or 146 in a case 
                        in which allowable claims remain in the 
                        application; or
                            ``(iv) issue a patent within 4 months after 
                        the date on which the issue fee was paid under 
                        section 151 and all outstanding requirements 
                        were satisfied,
                the term of the patent shall be extended 1 day for each 
                day after the end of the period specified in clause 
                (i), (ii), (iii), or (iv), as the case may be, until 
                the action described in such clause is taken.
                    ``(B) Guarantee of no more than 3-year application 
                pendency.--Subject to the limitations under paragraph 
                (2), if the issue of an original patent is delayed due 
                to the failure of the United States Patent and 
                Trademark Office to issue a patent within 3 years after 
                the actual filing date of the application in the United 
                States, not including--
                            ``(i) any time consumed by continued 
                        examination of the application requested by the 
                        applicant under section 132(b);
                            ``(ii) any time consumed by a proceeding 
                        under section 135(a), any time consumed by the 
                        imposition of an order under section 181, or 
                        any time consumed by appellate review by the 
                        Board of Patent Appeals and Interferences or by 
                        a Federal court; or
                            ``(iii) any delay in the processing of the 
                        application by the United States Patent and 
                        Trademark Office requested by the applicant 
                        except as permitted by paragraph (3)(C),
                the term of the patent shall be extended 1 day for each 
                day after the end of that 3-year period until the 
                patent is issued.
                    ``(C) Guarantee or adjustments for delays due to 
                interferences, secrecy orders, and appeals.--Subject to 
                the limitations under paragraph (2), if the issue of an 
                original patent is delayed due to--
                            ``(i) a proceeding under section 135(a);
                            ``(ii) the imposition of an order under 
                        section 181; or
                            ``(iii) appellate review by the Board of 
                        Patent Appeals and Interferences or by a 
                        Federal court in a case in which the patent was 
                        issued under a decision in the review reversing 
                        an adverse determination of patentability,
                the term of the patent shall be extended 1 day for each 
                day of the pendency of the proceeding, order, or 
                review, as the case may be.
            ``(2) Limitations.--
                    ``(A) In general.--To the extent that periods of 
                delay attributable to grounds specified in paragraph 
                (1) overlap, the period of any adjustment granted under 
                this subsection shall not exceed the actual number of 
                days the issuance of the patent was delayed.
                    ``(B) Disclaimed term.--No patent the term of which 
                has been disclaimed beyond a specified date may be 
                adjusted under this section beyond the expiration date 
                specified in the disclaimer.
                    ``(C) Reduction of period of adjustment.--
                            ``(i) The period of adjustment of the term 
                        of a patent under paragraph (1) shall be 
                        reduced by a period equal to the period of time 
                        during which the applicant failed to engage in 
                        reasonable efforts to conclude prosecution of 
                        the application.
                            ``(ii) With respect to adjustments to 
                        patent term made under the authority of 
                        paragraph (1)(B), an applicant shall be deemed 
                        to have failed to engage in reasonable efforts 
                        to conclude processing or examination of an 
                        application for the cumulative total of any 
                        periods of time in excess of 3 months that are 
                        taken to respond to a notice from the Office 
                        making any rejection, objection, argument, or 
                        other request, measuring such 3-month period 
                        from the date the notice was given or mailed to 
                        the applicant.
                            ``(iii) The Director shall prescribe 
                        regulations establishing the circumstances that 
                        constitute a failure of an applicant to engage 
                        in reasonable efforts to conclude processing or 
                        examination of an application.
            ``(3) Procedures for patent term adjustment 
        determination.--
                    ``(A) The Director shall prescribe regulations 
                establishing procedures for the application for and 
                determination of patent term adjustments under this 
                subsection.
                    ``(B) Under the procedures established under 
                subparagraph (A), the Director shall--
                            ``(i) make a determination of the period of 
                        any patent term adjustment under this 
                        subsection, and shall transmit a notice of that 
                        determination with the written notice of 
                        allowance of the application under section 151; 
                        and
                            ``(ii) provide the applicant one 
                        opportunity to request reconsideration of any 
                        patent term adjustment determination made by 
                        the Director.
                    ``(C) The Director shall reinstate all or part of 
                the cumulative period of time of an adjustment under 
                paragraph (2)(C) if the applicant, prior to the 
                issuance of the patent, makes a showing that, in spite 
                of all due care, the applicant was unable to respond 
                within the 3-month period, but in no case shall more 
                than three additional months for each such response 
                beyond the original 3-month period be reinstated.
                    ``(D) The Director shall proceed to grant the 
                patent after completion of the Director's determination 
                of a patent term adjustment under the procedures 
                established under this subsection, notwithstanding any 
                appeal taken by the applicant of such determination.
            ``(4) Appeal of patent term adjustment determination.--
                    ``(A) An applicant dissatisfied with a 
                determination made by the Director under paragraph (3) 
                shall have remedy by a civil action against the 
                Director filed in the United States District Court for 
                the District of Columbia within 180 days after the 
                grant of the patent. Chapter 7 of title 5, United 
                States Code, shall apply to such action. Any final 
                judgment resulting in a change to the period of 
                adjustment of the patent term shall be served on the 
                Director, and the Director shall thereafter alter the 
                term of the patent to reflect such change.
                    ``(B) The determination of a patent term adjustment 
                under this subsection shall not be subject to appeal or 
                challenge by a third party prior to the grant of the 
                patent.''.
    (b) Conforming Amendments.--
            (1) Section 282 of title 35, United States Code, is amended 
        in the fourth paragraph by striking ``156 of this title'' and 
        inserting ``154(b) or 156 of this title''.
            (2) Section 1295(a)(4)(C) of title 28, United States Code, 
        is amended by striking ``145 or 146'' and inserting ``145, 146, 
        or 154(b)''.

SEC. 4403. CONTINUED EXAMINATION OF PATENT APPLICATIONS.

    Section 132 of title 35, United States Code, is amended--
            (1) in the first sentence by striking ``Whenever'' and 
        inserting ``(a) Whenever''; and
            (2) by adding at the end the following:
    ``(b) The Director shall prescribe regulations to provide for the 
continued examination of applications for patent at the request of the 
applicant. The Director may establish appropriate fees for such 
continued examination and shall provide a 50 percent reduction in such 
fees for small entities that qualify for reduced fees under section 
41(h)(1) of this title.''.

SEC. 4404. TECHNICAL CLARIFICATION.

    Section 156(a) of title 35, United States Code, is amended in the 
matter preceding paragraph (1) by inserting ``, which shall include any 
patent term adjustment granted under section 154(b),'' after ``the 
original expiration date of the patent''.

SEC. 4405. EFFECTIVE DATE.

    (a) Amendments Made by Sections 4402 and 4404.--The amendments made 
by sections 4402 and 4404 shall take effect on the date that is 6 
months after the date of the enactment of this Act and, except for a 
design patent application filed under chapter 16 of title 35, United 
States Code, shall apply to any application filed on or after the date 
that is 6 months after the date of the enactment of this Act.
    (b) Amendments Made by Section 4403.--The amendments made by 
section 4403--
            (1) shall take effect on the date that is 6 months after 
        the date of the enactment of this Act, and shall apply to all 
        applications filed under section 111(a) of title 35, United 
        States Code, on or after June 8, 1995, and all applications 
        complying with section 371 of title 35, United States Code, 
        that resulted from international applications filed on or after 
        June 8, 1995; and
            (2) do not apply to applications for design patents under 
        chapter 16 of title 35, United States Code.

   Subtitle E--Domestic Publication of Patent Applications Published 
                                 Abroad

SEC. 4501. SHORT TITLE.

    This subtitle may be cited as the ``Domestic Publication of Foreign 
Filed Patent Applications Act of 1999''.

SEC. 4502. PUBLICATION.

    (a) Publication.--Section 122 of title 35, United States Code, is 
amended to read as follows:
``Sec. 122. Confidential status of applications; publication of patent 
              applications
    ``(a) Confidentiality.--Except as provided in subsection (b), 
applications for patents shall be kept in confidence by the Patent and 
Trademark Office and no information concerning the same given without 
authority of the applicant or owner unless necessary to carry out the 
provisions of an Act of Congress or in such special circumstances as 
may be determined by the Director.
    ``(b) Publication.--
            ``(1) In general.--(A) Subject to paragraph (2), each 
        application for a patent shall be published, in accordance with 
        procedures determined by the Director, promptly after the 
        expiration of a period of 18 months from the earliest filing 
        date for which a benefit is sought under this title. At the 
        request of the applicant, an application may be published 
        earlier than the end of such 18-month period.
            ``(B) No information concerning published patent 
        applications shall be made available to the public except as 
        the Director determines.
            ``(C) Notwithstanding any other provision of law, a 
        determination by the Director to release or not to release 
        information concerning a published patent application shall be 
        final and nonreviewable.
            ``(2) Exceptions.--(A) An application shall not be 
        published if that application is--
                    ``(i) no longer pending;
                    ``(ii) subject to a secrecy order under section 181 
                of this title;
                    ``(iii) a provisional application filed under 
                section 111(b) of this title; or
                    ``(iv) an application for a design patent filed 
                under chapter 16 of this title.
            ``(B)(i) If an applicant makes a request upon filing, 
        certifying that the invention disclosed in the application has 
        not and will not be the subject of an application filed in 
        another country, or under a multilateral international 
        agreement, that requires publication of applications 18 months 
        after filing, the application shall not be published as 
        provided in paragraph (1).
            ``(ii) An applicant may rescind a request made under clause 
        (i) at any time.
            ``(iii) An applicant who has made a request under clause 
        (i) but who subsequently files, in a foreign country or under a 
        multilateral international agreement specified in clause (i), 
        an application directed to the invention disclosed in the 
        application filed in the Patent and Trademark Office, shall 
        notify the Director of such filing not later than 45 days after 
        the date of the filing of such foreign or international 
        application. A failure of the applicant to provide such notice 
        within the prescribed period shall result in the application 
        being regarded as abandoned, unless it is shown to the 
        satisfaction of the Director that the delay in submitting the 
        notice was unintentional.
            ``(iv) If an applicant rescinds a request made under clause 
        (i) or notifies the Director that an application was filed in a 
        foreign country or under a multilateral international agreement 
        specified in clause (i), the application shall be published in 
        accordance with the provisions of paragraph (1) on or as soon 
        as is practical after the date that is specified in clause (i).
            ``(v) If an applicant has filed applications in one or more 
        foreign countries, directly or through a multilateral 
        international agreement, and such foreign filed applications 
        corresponding to an application filed in the Patent and 
        Trademark Office or the description of the invention in such 
        foreign filed applications is less extensive than the 
        application or description of the invention in the application 
        filed in the Patent and Trademark Office, the applicant may 
        submit a redacted copy of the application filed in the Patent 
        and Trademark Office eliminating any part or description of the 
        invention in such application that is not also contained in any 
        of the corresponding applications filed in a foreign country. 
        The Director may only publish the redacted copy of the 
        application unless the redacted copy of the application is not 
        received within 16 months after the earliest effective filing 
        date for which a benefit is sought under this title. The 
        provisions of section 154(d) shall not apply to a claim if the 
        description of the invention published in the redacted 
        application filed under this clause with respect to the claim 
        does not enable a person skilled in the art to make and use the 
        subject matter of the claim.
    ``(c) Protest and Pre-Issuance Opposition.--The Director shall 
establish appropriate procedures to ensure that no protest or other 
form of pre-issuance opposition to the grant of a patent on an 
application may be initiated after publication of the application 
without the express written consent of the applicant.
    ``(d) National Security.--No application for patent shall be 
published under subsection (b)(1) if the publication or disclosure of 
such invention would be detrimental to the national security. The 
Director shall establish appropriate procedures to ensure that such 
applications are promptly identified and the secrecy of such inventions 
is maintained in accordance with chapter 17 of this title.''.
    (b) Study.--
            (1) In general.--The Comptroller General shall conduct a 3-
        year study of the applicants who file only in the United States 
        on or after the effective date of this subtitle and shall 
        provide the results of such study to the Judiciary Committees 
        of the House of Representatives and the Senate.
            (2) Contents.--The study conducted under paragraph (1) 
        shall--
                    (A) consider the number of such applicants in 
                relation to the number of applicants who file in the 
                United States and outside of the United States;
                    (B) examine how many domestic-only filers request 
                at the time of filing not to be published;
                    (C) examine how many such filers rescind that 
                request or later choose to file abroad;
                    (D) examine the status of the entity seeking an 
                application and any correlation that may exist between 
                such status and the publication of patent applications; 
                and
                    (E) examine the abandonment/issuance ratios and 
                length of application pendency before patent issuance 
                or abandonment for published versus unpublished 
                applications.

SEC. 4503. TIME FOR CLAIMING BENEFIT OF EARLIER FILING DATE.

    (a) In a Foreign Country.--Section 119(b) of title 35, United 
States Code, is amended to read as follows:
    ``(b)(1) No application for patent shall be entitled to this right 
of priority unless a claim is filed in the Patent and Trademark Office, 
identifying the foreign application by specifying the application 
number on that foreign application, the intellectual property authority 
or country in or for which the application was filed, and the date of 
filing the application, at such time during the pendency of the 
application as required by the Director.
    ``(2) The Director may consider the failure of the applicant to 
file a timely claim for priority as a waiver of any such claim. The 
Director may establish procedures, including the payment of a 
surcharge, to accept an unintentionally delayed claim under this 
section.
    ``(3) The Director may require a certified copy of the original 
foreign application, specification, and drawings upon which it is 
based, a translation if not in the English language, and such other 
information as the Director considers necessary. Any such certification 
shall be made by the foreign intellectual property authority in which 
the foreign application was filed and show the date of the application 
and of the filing of the specification and other papers.''.
    (b) In the United States.--
            (1) In general.--Section 120 of title 35, United States 
        Code, is amended by adding at the end the following: ``No 
        application shall be entitled to the benefit of an earlier 
        filed application under this section unless an amendment 
        containing the specific reference to the earlier filed 
        application is submitted at such time during the pendency of 
        the application as required by the Director. The Director may 
        consider the failure to submit such an amendment within that 
        time period as a waiver of any benefit under this section. The 
        Director may establish procedures, including the payment of a 
        surcharge, to accept an unintentionally delayed submission of 
        an amendment under this section.''.
            (2) Right of priority.--Section 119(e)(1) of title 35, 
        United States Code, is amended by adding at the end the 
        following: ``No application shall be entitled to the benefit of 
        an earlier filed provisional application under this subsection 
        unless an amendment containing the specific reference to the 
        earlier filed provisional application is submitted at such time 
        during the pendency of the application as required by the 
        Director. The Director may consider the failure to submit such 
        an amendment within that time period as a waiver of any benefit 
        under this subsection. The Director may establish procedures, 
        including the payment of a surcharge, to accept an 
        unintentionally delayed submission of an amendment under this 
        subsection during the pendency of the application.''.

SEC. 4504. PROVISIONAL RIGHTS.

    Section 154 of title 35, United States Code, is amended--
            (1) in the section caption by inserting ``; provisional 
        rights'' after ``patent''; and
            (2) by adding at the end the following new subsection:
    ``(d) Provisional Rights.--
            ``(1) In general.--In addition to other rights provided by 
        this section, a patent shall include the right to obtain a 
        reasonable royalty from any person who, during the period 
        beginning on the date of publication of the application for 
        such patent under section 122(b), or in the case of an 
        international application filed under the treaty defined in 
        section 351(a) designating the United States under Article 
        21(2)(a) of such treaty, the date of publication of the 
        application, and ending on the date the patent is issued--
                    ``(A)(i) makes, uses, offers for sale, or sells in 
                the United States the invention as claimed in the 
                published patent application or imports such an 
                invention into the United States; or
                    ``(ii) if the invention as claimed in the published 
                patent application is a process, uses, offers for sale, 
                or sells in the United States or imports into the 
                United States products made by that process as claimed 
                in the published patent application; and
                    ``(B) had actual notice of the published patent 
                application and, in a case in which the right arising 
                under this paragraph is based upon an international 
                application designating the United States that is 
                published in a language other than English, had a 
                translation of the international application into the 
                English language.
            ``(2) Right based on substantially identical inventions.--
        The right under paragraph (1) to obtain a reasonable royalty 
        shall not be available under this subsection unless the 
        invention as claimed in the patent is substantially identical 
        to the invention as claimed in the published patent 
        application.
            ``(3) Time limitation on obtaining a reasonable royalty.--
        The right under paragraph (1) to obtain a reasonable royalty 
        shall be available only in an action brought not later than 6 
        years after the patent is issued. The right under paragraph (1) 
        to obtain a reasonable royalty shall not be affected by the 
        duration of the period described in paragraph (1).
            ``(4) Requirements for international applications.--
                    ``(A) Effective date.--The right under paragraph 
                (1) to obtain a reasonable royalty based upon the 
                publication under the treaty defined in section 351(a) 
                of an international application designating the United 
                States shall commence on the date on which the Patent 
                and Trademark Office receives a copy of the publication 
                under the treaty of the international application, or, 
                if the publication under the treaty of the 
                international application is in a language other than 
                English, on the date on which the Patent and Trademark 
                Office receives a translation of the international 
                application in the English language.
                    ``(B) Copies.--The Director may require the 
                applicant to provide a copy of the international 
                application and a translation thereof.''.

SEC. 4505. PRIOR ART EFFECT OF PUBLISHED APPLICATIONS.

    Section 102(e) of title 35, United States Code, is amended to read 
as follows:
    ``(e) The invention was described in--
            ``(1) an application for patent, published under section 
        122(b), by another filed in the United States before the 
        invention by the applicant for patent, except that an 
        international application filed under the treaty defined in 
        section 351(a) shall have the effect under this subsection of a 
        national application published under section 122(b) only if the 
        international application designating the United States was 
        published under Article 21(2)(a) of such treaty in the English 
        language; or
            ``(2) a patent granted on an application for patent by 
        another filed in the United States before the invention by the 
        applicant for patent, except that a patent shall not be deemed 
        filed in the United States for the purposes of this subsection 
        based on the filing of an international application filed under 
        the treaty defined in section 351(a); or''.

SEC. 4506. COST RECOVERY FOR PUBLICATION.

    The Under Secretary of Commerce for Intellectual Property and 
Director of the United States Patent and Trademark Office shall recover 
the cost of early publication required by the amendment made by section 
4502 by charging a separate publication fee after notice of allowance 
is given under section 151 of title 35, United States Code.

SEC. 4507. CONFORMING AMENDMENTS.

    The following provisions of title 35, United States Code, are 
amended:
            (1) Section 11 is amended in paragraph 1 of subsection (a) 
        by inserting ``and published applications for patents'' after 
        ``Patents''.
            (2) Section 12 is amended--
                    (A) in the section caption by inserting ``and 
                applications'' after ``patents''; and
                    (B) by inserting ``and published applications for 
                patents'' after ``patents''.
            (3) Section 13 is amended--
                    (A) in the section caption by inserting ``and 
                applications'' after ``patents''; and
                    (B) by inserting ``and published applications for 
                patents'' after ``patents''.
            (4) The items relating to sections 12 and 13 in the table 
        of sections for chapter 1 are each amended by inserting ``and 
        applications'' after ``patents''.
            (5) The item relating to section 122 in the table of 
        sections for chapter 11 is amended by inserting ``; publication 
        of patent applications'' after ``applications''.
            (6) The item relating to section 154 in the table of 
        sections for chapter 14 is amended by inserting ``; provisional 
        rights'' after ``patent''.
            (7) Section 181 is amended--
                    (A) in the first undesignated paragraph--
                            (i) by inserting ``by the publication of an 
                        application or'' after ``disclosure''; and
                            (ii) by inserting ``the publication of the 
                        application or'' after ``withhold'';
                    (B) in the second undesignated paragraph by 
                inserting ``by the publication of an application or'' 
                after ``disclosure of an invention'';
                    (C) in the third undesignated paragraph--
                            (i) by inserting ``by the publication of 
                        the application or'' after ``disclosure of the 
                        invention''; and
                            (ii) by inserting ``the publication of the 
                        application or'' after ``withhold''; and
                    (D) in the fourth undesignated paragraph by 
                inserting ``the publication of an application or'' 
                after ``and'' in the first sentence.
            (8) Section 252 is amended in the first undesignated 
        paragraph by inserting ``substantially'' before ``identical'' 
        each place it appears.
            (9) Section 284 is amended by adding at the end of the 
        second undesignated paragraph the following: ``Increased 
        damages under this paragraph shall not apply to provisional 
        rights under section 154(d) of this title.''.
            (10) Section 374 is amended to read as follows:
``Sec. 374. Publication of international application
    ``The publication under the treaty defined in section 351(a) of 
this title, of an international application designating the United 
States shall confer the same rights and shall have the same effect 
under this title as an application for patent published under section 
122(b), except as provided in sections 102(e) and 154(d) of this 
title.''.
            (11) Section 135(b) is amended--
                    (A) by inserting ``(1)'' after ``(b)''; and
                    (B) by adding at the end the following:
    ``(2) A claim which is the same as, or for the same or 
substantially the same subject matter as, a claim of an application 
published under section 122(b) of this title may be made in an 
application filed after the application is published only if the claim 
is made before 1 year after the date on which the application is 
published.''.

SEC. 4508. EFFECTIVE DATE.

    Sections 4502 through 4507, and the amendments made by such 
sections, shall take effect on the date that is 1 year after the date 
of the enactment of this Act and shall apply to all applications filed 
under section 111 of title 35, United States Code, on or after that 
date, and all applications complying with section 371 of title 35, 
United States Code, that resulted from international applications filed 
on or after that date. The amendments made by sections 4504 and 4505 
shall apply to any such application voluntarily published by the 
applicant under procedures established under this subtitle that is 
pending on the date that is 1 year after the date of the enactment of 
this Act. The amendment made by section 4504 shall also apply to 
international applications designating the United States that are filed 
on or after the date that is 1 year after the date of the enactment of 
this Act.

       Subtitle F--Optional Inter Partes Reexamination Procedure

SEC. 4601. SHORT TITLE.

    This subtitle may be cited as the ``Optional Inter Partes 
Reexamination Procedure Act of 1999''.

SEC. 4602. EX PARTE REEXAMINATION OF PATENTS.

    The chapter heading for chapter 30 of title 35, United States Code, 
is amended by inserting ``EX PARTE'' before ``REEXAMINATION OF 
PATENTS''.

SEC. 4603. DEFINITIONS.

    Section 100 of title 35, United States Code, is amended by adding 
at the end the following new subsection:
    ``(e) The term `third-party requester' means a person requesting ex 
parte reexamination under section 302 or inter partes reexamination 
under section 311 who is not the patent owner.''.

SEC. 4604. OPTIONAL INTER PARTES REEXAMINATION PROCEDURES.

    (a) In General.--Part 3 of title 35, United States Code, is amended 
by adding after chapter 30 the following new chapter:

      ``CHAPTER 31--OPTIONAL INTER PARTES REEXAMINATION PROCEDURES

``Sec.
``311. Request for inter partes reexamination.
``312. Determination of issue by Director.
``313. Inter partes reexamination order by Director.
``314. Conduct of inter partes reexamination proceedings.
``315. Appeal.
``316. Certificate of patentability, unpatentability, and claim 
                            cancellation.
``317. Inter partes reexamination prohibited.
``318. Stay of litigation.

``Sec. 311. Request for inter partes reexamination
    ``(a) In General.--Any person at any time may file a request for 
inter partes reexamination by the Office of a patent on the basis of 
any prior art cited under the provisions of section 301.
    ``(b) Requirements.--The request shall--
            ``(1) be in writing, include the identity of the real party 
        in interest, and be accompanied by payment of an inter partes 
        reexamination fee established by the Director under section 41; 
        and
            ``(2) set forth the pertinency and manner of applying cited 
        prior art to every claim for which reexamination is requested.
            ``(c) Copy.--Unless the requesting person is the owner of 
        the patent, the Director promptly shall send a copy of the 
        request to the owner of record of the patent.
``Sec. 312. Determination of issue by Director
    ``(a) Reexamination.--Not later than 3 months after the filing of a 
request for inter partes reexamination under section 311, the Director 
shall determine whether a substantial new question of patentability 
affecting any claim of the patent concerned is raised by the request, 
with or without consideration of other patents or printed publications. 
On the Director's initiative, and at any time, the Director may 
determine whether a substantial new question of patentability is raised 
by patents and publications.
    ``(b) Record.--A record of the Director's determination under 
subsection (a) shall be placed in the official file of the patent, and 
a copy shall be promptly given or mailed to the owner of record of the 
patent and to the third-party requester, if any.
    ``(c) Final Decision.--A determination by the Director under 
subsection (a) shall be final and non-appealable. Upon a determination 
that no substantial new question of patentability has been raised, the 
Director may refund a portion of the inter partes reexamination fee 
required under section 311.
``Sec. 313. Inter partes reexamination order by Director
    ``If, in a determination made under section 312(a), the Director 
finds that a substantial new question of patentability affecting a 
claim of a patent is raised, the determination shall include an order 
for inter partes reexamination of the patent for resolution of the 
question. The order may be accompanied by the initial action of the 
Patent and Trademark Office on the merits of the inter partes 
reexamination conducted in accordance with section 314.
``Sec. 314. Conduct of inter partes reexamination proceedings
    ``(a) In General.--Except as otherwise provided in this section, 
reexamination shall be conducted according to the procedures 
established for initial examination under the provisions of sections 
132 and 133. In any inter partes reexamination proceeding under this 
chapter, the patent owner shall be permitted to propose any amendment 
to the patent and a new claim or claims, except that no proposed 
amended or new claim enlarging the scope of the claims of the patent 
shall be permitted.
    ``(b) Response.--(1) This subsection shall apply to any inter 
partes reexamination proceeding in which the order for inter partes 
reexamination is based upon a request by a third-party requester.
    ``(2) With the exception of the inter partes reexamination request, 
any document filed by either the patent owner or the third-party 
requester shall be served on the other party. In addition, the third-
party requester shall receive a copy of any communication sent by the 
Office to the patent owner concerning the patent subject to the inter 
partes reexamination proceeding.
    ``(3) Each time that the patent owner files a response to an action 
on the merits from the Patent and Trademark Office, the third-party 
requester shall have one opportunity to file written comments 
addressing issues raised by the action of the Office or the patent 
owner's response thereto, if those written comments are received by the 
Office within 30 days after the date of service of the patent owner's 
response.
    ``(c) Special Dispatch.--Unless otherwise provided by the Director 
for good cause, all inter partes reexamination proceedings under this 
section, including any appeal to the Board of Patent Appeals and 
Interferences, shall be conducted with special dispatch within the 
Office.
``Sec. 315. Appeal
    ``(a) Patent Owner.--The patent owner involved in an inter partes 
reexamination proceeding under this chapter--
            ``(1) may appeal under the provisions of section 134 and 
        may appeal under the provisions of sections 141 through 144, 
        with respect to any decision adverse to the patentability of 
        any original or proposed amended or new claim of the patent; 
        and
            ``(2) may be a party to any appeal taken by a third-party 
        requester under subsection (b).
    ``(b) Third-Party Requester.--A third-party requester may--
            ``(1) appeal under the provisions of section 134 with 
        respect to any final decision favorable to the patentability of 
        any original or proposed amended or new claim of the patent; or
            ``(2) be a party to any appeal taken by the patent owner 
        under the provisions of section 134, subject to subsection (c).
    ``(c) Civil Action.--A third-party requester whose request for an 
inter partes reexamination results in an order under section 313 is 
estopped from asserting at a later time, in any civil action arising in 
whole or in part under section 1338 of title 28, United States Code, 
the invalidity of any claim finally determined to be valid and 
patentable on any ground which the third-party requester raised or 
could have raised during the inter partes reexamination proceedings. 
This subsection does not prevent the assertion of invalidity based on 
newly discovered prior art unavailable to the third-party requester and 
the Patent and Trademark Office at the time of the inter partes 
reexamination proceedings.
``Sec. 316. Certificate of patentability, unpatentability, and claim 
              cancellation
    ``(a) In General.--In an inter partes reexamination proceeding 
under this chapter, when the time for appeal has expired or any appeal 
proceeding has terminated, the Director shall issue and publish a 
certificate canceling any claim of the patent finally determined to be 
unpatentable, confirming any claim of the patent determined to be 
patentable, and incorporating in the patent any proposed amended or new 
claim determined to be patentable.
    ``(b) Amended or New Claim.--Any proposed amended or new claim 
determined to be patentable and incorporated into a patent following an 
inter partes reexamination proceeding shall have the same effect as 
that specified in section 252 of this title for reissued patents on the 
right of any person who made, purchased, or used within the United 
States, or imported into the United States, anything patented by such 
proposed amended or new claim, or who made substantial preparation 
therefor, prior to issuance of a certificate under the provisions of 
subsection (a) of this section.
``Sec. 317. Inter partes reexamination prohibited
    ``(a) Order for Reexamination.--Notwithstanding any provision of 
this chapter, once an order for inter partes reexamination of a patent 
has been issued under section 313, neither the patent owner nor the 
third-party requester, if any, nor privies of either, may file a 
subsequent request for inter partes reexamination of the patent until 
an inter partes reexamination certificate is issued and published under 
section 316, unless authorized by the Director.
    ``(b) Final Decision.--Once a final decision has been entered 
against a party in a civil action arising in whole or in part under 
section 1338 of title 28, United States Code, that the party has not 
sustained its burden of proving the invalidity of any patent claim in 
suit or if a final decision in an inter partes reexamination proceeding 
instituted by a third-party requester is favorable to the patentability 
of any original or proposed amended or new claim of the patent, then 
neither that party nor its privies may thereafter request an inter 
partes reexamination of any such patent claim on the basis of issues 
which that party or its privies raised or could have raised in such 
civil action or inter partes reexamination proceeding, and an inter 
partes reexamination requested by that party or its privies on the 
basis of such issues may not thereafter be maintained by the Office, 
notwithstanding any other provision of this chapter. This subsection 
does not prevent the assertion of invalidity based on newly discovered 
prior art unavailable to the third-party requester and the Patent and 
Trademark Office at the time of the inter partes reexamination 
proceedings.
``Sec. 318. Stay of litigation
    ``Once an order for inter partes reexamination of a patent has been 
issued under section 313, the patent owner may obtain a stay of any 
pending litigation which involves an issue of patentability of any 
claims of the patent which are the subject of the inter partes 
reexamination order, unless the court before which such litigation is 
pending determines that a stay would not serve the interests of 
justice.''.
    (b) Conforming Amendment.--The table of chapters for part III of 
title 25, United States Code, is amended by striking the item relating 
to chapter 30 and inserting the following:

``30. Prior Art Citations to Office and Ex Parte                    301
                            Reexamination of Patents.
``31. Optional Inter Partes Reexamination of Patents........     311''.

SEC. 4605. CONFORMING AMENDMENTS.

    (a) Patent Fees; Patent Search Systems.--Section 41(a)(7) of title 
35, United States Code, is amended to read as follows:
            ``(7) On filing each petition for the revival of an 
        unintentionally abandoned application for a patent, for the 
        unintentionally delayed payment of the fee for issuing each 
        patent, or for an unintentionally delayed response by the 
        patent owner in any reexamination proceeding, $1,210, unless 
        the petition is filed under section 133 or 151 of this title, 
        in which case the fee shall be $110.''.
    (b) Appeal to the Board of Patents Appeals and Interferences.--
Section 134 of title 35, United States Code, is amended to read as 
follows:
``Sec. 134. Appeal to the Board of Patent Appeals and Interferences
    ``(a) Patent Applicant.--An applicant for a patent, any of whose 
claims has been twice rejected, may appeal from the decision of the 
administrative patent judge to the Board of Patent Appeals and 
Interferences, having once paid the fee for such appeal.
    ``(b) Patent Owner.--A patent owner in any reexamination proceeding 
may appeal from the final rejection of any claim by the administrative 
patent judge to the Board of Patent Appeals and Interferences, having 
once paid the fee for such appeal.
    ``(c) Third-Party.--A third-party requester in an inter partes 
proceeding may appeal to the Board of Patent Appeals and Interferences 
from the final decision of the administrative patent judge favorable to 
the patentability of any original or proposed amended or new claim of a 
patent, having once paid the fee for such appeal. The third-party 
requester may not appeal the decision of the Board of Patent Appeals 
and Interferences.''.
    (c) Appeal to Court of Appeals for the Federal Circuit.--Section 
141 of title 35, United States Code, is amended by adding the following 
after the second sentence: ``A patent owner in any reexamination 
proceeding dissatisfied with the final decision in an appeal to the 
Board of Patent Appeals and Interferences under section 134 may appeal 
the decision only to the United States Court of Appeals for the Federal 
Circuit.''.
    (d) Proceedings on Appeal.--Section 143 of title 35, United States 
Code, is amended by amending the third sentence to read as follows: 
``In any reexamination case, the Director shall submit to the court in 
writing the grounds for the decision of the Patent and Trademark 
Office, addressing all the issues involved in the appeal.''.
    (e) Civil Action To Obtain Patent.--Section 145 of title 35, United 
States Code, is amended in the first sentence by inserting ``(a)'' 
after ``section 134''.

SEC. 4606. REPORT TO CONGRESS.

    Not later than 5 years after the date of the enactment of this Act, 
the Under Secretary of Commerce for Intellectual Property and Director 
of the United States Patent and Trademark Office shall submit to the 
Congress a report evaluating whether the inter partes reexamination 
proceedings established under the amendments made by this subtitle are 
inequitable to any of the parties in interest and, if so, the report 
shall contain recommendations for changes to the amendments made by 
this subtitle to remove such inequity.

SEC. 4607. ESTOPPEL EFFECT OF REEXAMINATION.

    Any party who requests an inter partes reexamination under section 
311 of title 35, United States Code, is estopped from challenging at a 
later time, in any civil action, any fact determined during the process 
of such reexamination, except with respect to a fact determination 
later proved to be erroneous based on information unavailable at the 
time of the inter partes reexamination decision. If this section is 
held to be unenforceable, the enforceability of the remainder of this 
subtitle or of this title shall not be denied as a result.

SEC. 4608. EFFECTIVE DATE.

    (a) In General.--Subject to subsection (b), this subtitle and the 
amendments made by this subtitle shall take effect on the date of the 
enactment of this Act and shall apply to any patent that issues from an 
original application filed in the United States on or after that date.
    (b) Section 4605(a).--The amendments made by section 4605(a) shall 
take effect on the date that is 1 year after the date of the enactment 
of this Act.

                Subtitle G--Patent and Trademark Office

SEC. 4701. SHORT TITLE.

    This subtitle may be cited as the ``Patent and Trademark Office 
Efficiency Act''.

          CHAPTER 1--UNITED STATES PATENT AND TRADEMARK OFFICE

SEC. 4711. ESTABLISHMENT OF PATENT AND TRADEMARK OFFICE.

    Section 1 of title 35, United States Code, is amended to read as 
follows:
``Sec. 1. Establishment
    ``(a) Establishment.--The United States Patent and Trademark Office 
is established as an agency of the United States, within the Department 
of Commerce. In carrying out its functions, the United States Patent 
and Trademark Office shall be subject to the policy direction of the 
Secretary of Commerce, but otherwise shall retain responsibility for 
decisions regarding the management and administration of its operations 
and shall exercise independent control of its budget allocations and 
expenditures, personnel decisions and processes, procurements, and 
other administrative and management functions in accordance with this 
title and applicable provisions of law. Those operations designed to 
grant and issue patents and those operations which are designed to 
facilitate the registration of trademarks shall be treated as separate 
operating units within the Office.
    ``(b) Offices.--The United States Patent and Trademark Office shall 
maintain its principal office in the metropolitan Washington, D.C., 
area, for the service of process and papers and for the purpose of 
carrying out its functions. The United States Patent and Trademark 
Office shall be deemed, for purposes of venue in civil actions, to be a 
resident of the district in which its principal office is located, 
except where jurisdiction is otherwise provided by law. The United 
States Patent and Trademark Office may establish satellite offices in 
such other places in the United States as it considers necessary and 
appropriate in the conduct of its business.
    ``(c) Reference.--For purposes of this title, the United States 
Patent and Trademark Office shall also be referred to as the `Office' 
and the `Patent and Trademark Office'.''.

SEC. 4712. POWERS AND DUTIES.

    Section 2 of title 35, United States Code, is amended to read as 
follows:
``Sec. 2. Powers and duties
    ``(a) In General.--The United States Patent and Trademark Office, 
subject to the policy direction of the Secretary of Commerce--
            ``(1) shall be responsible for the granting and issuing of 
        patents and the registration of trademarks; and
            ``(2) shall be responsible for disseminating to the public 
        information with respect to patents and trademarks.
    ``(b) Specific Powers.--The Office--
            ``(1) shall adopt and use a seal of the Office, which shall 
        be judicially noticed and with which letters patent, 
        certificates of trademark registrations, and papers issued by 
        the Office shall be authenticated;
            ``(2) may establish regulations, not inconsistent with law, 
        which--
                    ``(A) shall govern the conduct of proceedings in 
                the Office;
                    ``(B) shall be made in accordance with section 553 
                of title 5, United States Code;
                    ``(C) shall facilitate and expedite the processing 
                of patent applications, particularly those which can be 
                filed, stored, processed, searched, and retrieved 
                electronically, subject to the provisions of section 
                122 relating to the confidential status of 
                applications;
                    ``(D) may govern the recognition and conduct of 
                agents, attorneys, or other persons representing 
                applicants or other parties before the Office, and may 
                require them, before being recognized as 
                representatives of applicants or other persons, to show 
                that they are of good moral character and reputation 
                and are possessed of the necessary qualifications to 
                render to applicants or other persons valuable service, 
                advice, and assistance in the presentation or 
                prosecution of their applications or other business 
                before the Office;
                    ``(E) shall recognize the public interest in 
                continuing to safeguard broad access to the United 
                States patent system through the reduced fee structure 
                for small entities under section 41(h)(1) of this 
                title; and
                    ``(F) provide for the development of a performance-
                based process that includes quantitative and 
                qualitative measures and standards for evaluating cost-
                effectiveness and is consistent with the principles of 
                impartiality and competitiveness;
            ``(3) may acquire, construct, purchase, lease, hold, 
        manage, operate, improve, alter, and renovate any real, 
        personal, or mixed property, or any interest therein, as it 
        considers necessary to carry out its functions;
            ``(4)(A) may make such purchases, contracts for the 
        construction, maintenance, or management and operation of 
        facilities, and contracts for supplies or services, without 
        regard to the provisions of the Federal Property and 
        Administrative Services Act of 1949 (40 U.S.C. 471 et seq.), 
        the Public Buildings Act (40 U.S.C. 601 et seq.), and the 
        Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11301 et 
        seq.); and
            ``(B) may enter into and perform such purchases and 
        contracts for printing services, including the process of 
        composition, platemaking, presswork, silk screen processes, 
        binding, microform, and the products of such processes, as it 
        considers necessary to carry out the functions of the Office, 
        without regard to sections 501 through 517 and 1101 through 
        1123 of title 44, United States Code;
            ``(5) may use, with their consent, services, equipment, 
        personnel, and facilities of other departments, agencies, and 
        instrumentalities of the Federal Government, on a reimbursable 
        basis, and cooperate with such other departments, agencies, and 
        instrumentalities in the establishment and use of services, 
        equipment, and facilities of the Office;
            ``(6) may, when the Director determines that it is 
        practicable, efficient, and cost-effective to do so, use, with 
        the consent of the United States and the agency, 
        instrumentality, Patent and Trademark Office, or international 
        organization concerned, the services, records, facilities, or 
        personnel of any State or local government agency or 
        instrumentality or foreign patent and trademark office or 
        international organization to perform functions on its behalf;
            ``(7) may retain and use all of its revenues and receipts, 
        including revenues from the sale, lease, or disposal of any 
        real, personal, or mixed property, or any interest therein, of 
        the Office;
            ``(8) shall advise the President, through the Secretary of 
        Commerce, on national and certain international intellectual 
        property policy issues;
            ``(9) shall advise Federal departments and agencies on 
        matters of intellectual property policy in the United States 
        and intellectual property protection in other countries;
            ``(10) shall provide guidance, as appropriate, with respect 
        to proposals by agencies to assist foreign governments and 
        international intergovernmental organizations on matters of 
        intellectual property protection;
            ``(11) may conduct programs, studies, or exchanges of items 
        or services regarding domestic and international intellectual 
        property law and the effectiveness of intellectual property 
        protection domestically and throughout the world;
            ``(12)(A) shall advise the Secretary of Commerce on 
        programs and studies relating to intellectual property policy 
        that are conducted, or authorized to be conducted, 
        cooperatively with foreign intellectual property offices and 
        international intergovernmental organizations; and
            ``(B) may conduct programs and studies described in 
        subparagraph (A); and
            ``(13)(A) in coordination with the Department of State, may 
        conduct programs and studies cooperatively with foreign 
        intellectual property offices and international 
        intergovernmental organizations; and
            ``(B) with the concurrence of the Secretary of State, may 
        authorize the transfer of not to exceed $100,000 in any year to 
        the Department of State for the purpose of making special 
        payments to international intergovernmental organizations for 
        studies and programs for advancing international cooperation 
        concerning patents, trademarks, and other matters.
    ``(c) Clarification of Specific Powers.--(1) The special payments 
under subsection (b)(13)(B) shall be in addition to any other payments 
or contributions to international organizations described in subsection 
(b)(13)(B) and shall not be subject to any limitations imposed by law 
on the amounts of such other payments or contributions by the United 
States Government.
    ``(2) Nothing in subsection (b) shall derogate from the duties of 
the Secretary of State or from the duties of the United States Trade 
Representative as set forth in section 141 of the Trade Act of 1974 (19 
U.S.C. 2171).
    ``(3) Nothing in subsection (b) shall derogate from the duties and 
functions of the Register of Copyrights or otherwise alter current 
authorities relating to copyright matters.
    ``(4) In exercising the Director's powers under paragraphs (3) and 
(4)(A) of subsection (b), the Director shall consult with the 
Administrator of General Services.
    ``(5) In exercising the Director's powers and duties under this 
section, the Director shall consult with the Register of Copyrights on 
all copyright and related matters.
    ``(d) Construction.--Nothing in this section shall be construed to 
nullify, void, cancel, or interrupt any pending request-for-proposal 
let or contract issued by the General Services Administration for the 
specific purpose of relocating or leasing space to the United States 
Patent and Trademark Office.''.

SEC. 4713. ORGANIZATION AND MANAGEMENT.

    Section 3 of title 35, United States Code, is amended to read as 
follows:
``Sec. 3. Officers and employees
    ``(a) Under Secretary and Director.--
            ``(1) In general.--The powers and duties of the United 
        States Patent and Trademark Office shall be vested in an Under 
        Secretary of Commerce for Intellectual Property and Director of 
        the United States Patent and Trademark Office (in this title 
        referred to as the `Director'), who shall be a citizen of the 
        United States and who shall be appointed by the President, by 
        and with the advice and consent of the Senate. The Director 
        shall be a person who has a professional background and 
        experience in patent or trademark law.
            ``(2) Duties.--
                    ``(A) In general.--The Director shall be 
                responsible for providing policy direction and 
                management supervision for the Office and for the 
                issuance of patents and the registration of trademarks. 
                The Director shall perform these duties in a fair, 
                impartial, and equitable manner.
                    ``(B) Consulting with the public advisory 
                committees.--The Director shall consult with the Patent 
                Public Advisory Committee established in section 5 on a 
                regular basis on matters relating to the patent 
                operations of the Office, shall consult with the 
                Trademark Public Advisory Committee established in 
                section 5 on a regular basis on matters relating to the 
                trademark operations of the Office, and shall consult 
                with the respective Public Advisory Committee before 
                submitting budgetary proposals to the Office of 
                Management and Budget or changing or proposing to 
                change patent or trademark user fees or patent or 
                trademark regulations which are subject to the 
                requirement to provide notice and opportunity for 
                public comment under section 553 of title 5, United 
                States Code, as the case may be.
            ``(3) Oath.--The Director shall, before taking office, take 
        an oath to discharge faithfully the duties of the Office.
            ``(4) Removal.--The Director may be removed from office by 
        the President. The President shall provide notification of any 
        such removal to both Houses of Congress.
    ``(b) Officers and Employees of the Office.--
            ``(1) Deputy under secretary and deputy director.--The 
        Secretary of Commerce, upon nomination by the Director, shall 
        appoint a Deputy Under Secretary of Commerce for Intellectual 
        Property and Deputy Director of the United States Patent and 
        Trademark Office who shall be vested with the authority to act 
        in the capacity of the Director in the event of the absence or 
        incapacity of the Director. The Deputy Director shall be a 
        citizen of the United States who has a professional background 
        and experience in patent or trademark law.
            ``(2) Commissioners.--
                    ``(A) Appointment and duties.--The Secretary of 
                Commerce shall appoint a Commissioner for Patents and a 
                Commissioner for Trademarks, without regard to chapter 
                33, 51, or 53 of title 5, United States Code. The 
                Commissioner for Patents shall be a citizen of the 
                United States with demonstrated management ability and 
                professional background and experience in patent law 
                and serve for a term of 5 years. The Commissioner for 
                Trademarks shall be a citizen of the United States with 
                demonstrated management ability and professional 
                background and experience in trademark law and serve 
                for a term of 5 years. The Commissioner for Patents and 
                the Commissioner for Trademarks shall serve as the 
                chief operating officers for the operations of the 
                Office relating to patents and trademarks, 
                respectively, and shall be responsible for the 
                management and direction of all aspects of the 
                activities of the Office that affect the administration 
                of patent and trademark operations, respectively. The 
                Secretary may reappoint a Commissioner to subsequent 
                terms of 5 years as long as the performance of the 
                Commissioner as set forth in the performance agreement 
                in subparagraph (B) is satisfactory.
                    ``(B) Salary and performance agreement.--The 
                Commissioners shall be paid an annual rate of basic pay 
                not to exceed the maximum rate of basic pay for the 
                Senior Executive Service established under section 5382 
                of title 5, United States Code, including any 
                applicable locality-based comparability payment that 
                may be authorized under section 5304(h)(2)(C) of title 
                5, United States Code. The compensation of the 
                Commissioners shall be considered, for purposes of 
                section 207(c)(2)(A) of title 18, United States Code, 
                to be the equivalent of that described under clause 
                (ii) of section 207(c)(2)(A) of title 18, United States 
                Code. In addition, the Commissioners may receive a 
                bonus in an amount of up to, but not in excess of, 50 
                percent of the Commissioners' annual rate of basic pay, 
                based upon an evaluation by the Secretary of Commerce, 
                acting through the Director, of the Commissioners' 
                performance as defined in an annual performance 
                agreement between the Commissioners and the Secretary. 
                The annual performance agreements shall incorporate 
                measurable organization and individual goals in key 
                operational areas as delineated in an annual 
                performance plan agreed to by the Commissioners and the 
                Secretary. Payment of a bonus under this subparagraph 
                may be made to the Commissioners only to the extent 
                that such payment does not cause the Commissioners' 
                total aggregate compensation in a calendar year to 
                equal or exceed the amount of the salary of the Vice 
                President under section 104 of title 3, United States 
                Code.
                    ``(C) Removal.--The Commissioners may be removed 
                from office by the Secretary for misconduct or 
                nonsatisfactory performance under the performance 
                agreement described in subparagraph (B), without regard 
                to the provisions of title 5, United States Code. The 
                Secretary shall provide notification of any such 
                removal to both Houses of Congress.
            ``(3) Other officers and employees.--The Director shall--
                    ``(A) appoint such officers, employees (including 
                attorneys), and agents of the Office as the Director 
                considers necessary to carry out the functions of the 
                Office; and
                    ``(B) define the title, authority, and duties of 
                such officers and employees and delegate to them such 
                of the powers vested in the Office as the Director may 
                determine.
        The Office shall not be subject to any administratively or 
        statutorily imposed limitation on positions or personnel, and 
        no positions or personnel of the Office shall be taken into 
        account for purposes of applying any such limitation.
            ``(4) Training of examiners.--The Office shall submit to 
        the Congress a proposal to provide an incentive program to 
        retain as employees patent and trademark examiners of the 
        primary examiner grade or higher who are eligible for 
        retirement, for the sole purpose of training patent and 
        trademark examiners.
            ``(5) National security positions.--The Director, in 
        consultation with the Director of the Office of Personnel 
        Management, shall maintain a program for identifying national 
        security positions and providing for appropriate security 
        clearances, in order to maintain the secrecy of certain 
        inventions, as described in section 181, and to prevent 
        disclosure of sensitive and strategic information in the 
        interest of national security.
    ``(c) Continued Applicability of Title 5, United States Code.--
Officers and employees of the Office shall be subject to the provisions 
of title 5, United States Code, relating to Federal employees.
    ``(d) Adoption of Existing Labor Agreements.--The Office shall 
adopt all labor agreements which are in effect, as of the day before 
the effective date of the Patent and Trademark Office Efficiency Act, 
with respect to such Office (as then in effect).
    ``(e) Carryover of Personnel.--
            ``(1) From pto.--Effective as of the effective date of the 
        Patent and Trademark Office Efficiency Act, all officers and 
        employees of the Patent and Trademark Office on the day before 
        such effective date shall become officers and employees of the 
        Office, without a break in service.
            ``(2) Other personnel.--Any individual who, on the day 
        before the effective date of the Patent and Trademark Office 
        Efficiency Act, is an officer or employee of the Department of 
        Commerce (other than an officer or employee under paragraph 
        (1)) shall be transferred to the Office, as necessary to carry 
        out the purposes of this Act, if--
                    ``(A) such individual serves in a position for 
                which a major function is the performance of work 
                reimbursed by the Patent and Trademark Office, as 
                determined by the Secretary of Commerce;
                    ``(B) such individual serves in a position that 
                performed work in support of the Patent and Trademark 
                Office during at least half of the incumbent's work 
                time, as determined by the Secretary of Commerce; or
                    ``(C) such transfer would be in the interest of the 
                Office, as determined by the Secretary of Commerce in 
                consultation with the Director.
        Any transfer under this paragraph shall be effective as of the 
        same effective date as referred to in paragraph (1), and shall 
        be made without a break in service.
    ``(f) Transition Provisions.--
            ``(1) Interim appointment of director.--On or after the 
        effective date of the Patent and Trademark Office Efficiency 
        Act, the President shall appoint an individual to serve as the 
        Director until the date on which a Director qualifies under 
        subsection (a). The President shall not make more than one such 
        appointment under this subsection.
            ``(2) Continuation in office of certain officers.--(A) The 
        individual serving as the Assistant Commissioner for Patents on 
        the day before the effective date of the Patent and Trademark 
        Office Efficiency Act may serve as the Commissioner for Patents 
        until the date on which a Commissioner for Patents is appointed 
        under subsection (b).
            ``(B) The individual serving as the Assistant Commissioner 
        for Trademarks on the day before the effective date of the 
        Patent and Trademark Office Efficiency Act may serve as the 
        Commissioner for Trademarks until the date on which a 
        Commissioner for Trademarks is appointed under subsection 
        (b).''.

SEC. 4714. PUBLIC ADVISORY COMMITTEES.

    Chapter 1 of part I of title 35, United States Code, is amended by 
inserting after section 4 the following:
``Sec. 5. Patent and Trademark Office Public Advisory Committees
    ``(a) Establishment of Public Advisory Committees.--
            ``(1) Appointment.--The United States Patent and Trademark 
        Office shall have a Patent Public Advisory Committee and a 
        Trademark Public Advisory Committee, each of which shall have 
        nine voting members who shall be appointed by the Secretary of 
        Commerce and serve at the pleasure of the Secretary of 
        Commerce. Members of each Public Advisory Committee shall be 
        appointed for a term of 3 years, except that of the members 
        first appointed, three shall be appointed for a term of 1 year, 
        and three shall be appointed for a term of 2 years. In making 
        appointments to each Committee, the Secretary of Commerce shall 
        consider the risk of loss of competitive advantage in 
        international commerce or other harm to United States companies 
        as a result of such appointments.
            ``(2) Chair.--The Secretary shall designate a chair of each 
        Advisory Committee, whose term as chair shall be for 3 years.
            ``(3) Timing of appointments.--Initial appointments to each 
        Advisory Committee shall be made within 3 months after the 
        effective date of the Patent and Trademark Office Efficiency 
        Act. Vacancies shall be filled within 3 months after they 
        occur.
    ``(b) Basis for Appointments.--Members of each Advisory Committee--
            ``(1) shall be citizens of the United States who shall be 
        chosen so as to represent the interests of diverse users of the 
        United States Patent and Trademark Office with respect to 
        patents, in the case of the Patent Public Advisory Committee, 
        and with respect to trademarks, in the case of the Trademark 
        Public Advisory Committee;
            ``(2) shall include members who represent small and large 
        entity applicants located in the United States in proportion to 
        the number of applications filed by such applicants, but in no 
        case shall members who represent small entity patent 
        applicants, including small business concerns, independent 
        inventors, and nonprofit organizations, constitute less than 25 
        percent of the members of the Patent Public Advisory Committee, 
        and such members shall include at least one independent 
        inventor; and
            ``(3) shall include individuals with substantial background 
        and achievement in finance, management, labor relations, 
        science, technology, and office automation.
In addition to the voting members, each Advisory Committee shall 
include a representative of each labor organization recognized by the 
United States Patent and Trademark Office. Such representatives shall 
be nonvoting members of the Advisory Committee to which they are 
appointed.
    ``(c) Meetings.--Each Advisory Committee shall meet at the call of 
the chair to consider an agenda set by the chair.
    ``(d) Duties.--Each Advisory Committee shall--
            ``(1) review the policies, goals, performance, budget, and 
        user fees of the United States Patent and Trademark Office with 
        respect to patents, in the case of the Patent Public Advisory 
        Committee, and with respect to Trademarks, in the case of the 
        Trademark Public Advisory Committee, and advise the Director on 
        these matters;
            ``(2) within 60 days after the end of each fiscal year--
                    ``(A) prepare an annual report on the matters 
                referred to in paragraph (1);
                    ``(B) transmit the report to the Secretary of 
                Commerce, the President, and the Committees on the 
                Judiciary of the Senate and the House of 
                Representatives; and
                    ``(C) publish the report in the Official Gazette of 
                the United States Patent and Trademark Office.
    ``(e) Compensation.--Each member of each Advisory Committee shall 
be compensated for each day (including travel time) during which such 
member is attending meetings or conferences of that Advisory Committee 
or otherwise engaged in the business of that Advisory Committee, at the 
rate which is the daily equivalent of the annual rate of basic pay in 
effect for level III of the Executive Schedule under section 5314 of 
title 5, United States Code. While away from such member's home or 
regular place of business such member shall be allowed travel expenses, 
including per diem in lieu of subsistence, as authorized by section 
5703 of title 5, United States Code.
    ``(f) Access to Information.--Members of each Advisory Committee 
shall be provided access to records and information in the United 
States Patent and Trademark Office, except for personnel or other 
privileged information and information concerning patent applications 
required to be kept in confidence by section 122.
    ``(g) Applicability of Certain Ethics Laws.--Members of each 
Advisory Committee shall be special Government employees within the 
meaning of section 202 of title 18, United States Code.
    ``(h) Inapplicability of Federal Advisory Committee Act.--The 
Federal Advisory Committee Act (5 U.S.C. App.) shall not apply to each 
Advisory Committee.
    ``(i) Open Meetings.--The meetings of each Advisory Committee shall 
be open to the public, except that each Advisory Committee may by 
majority vote meet in executive session when considering personnel or 
other confidential information.''.

SEC. 4715. CONFORMING AMENDMENTS.

    (a) Duties.--Chapter 1 of title 35, United States Code, is amended 
by striking section 6.
    (b) Regulations for Agents and Attorneys.--Section 31 of title 35, 
United States Code, and the item relating to such section in the table 
of sections for chapter 3 of title 35, United States Code, are 
repealed.
    (c) Suspension or Exclusion From Practice.--Section 32 of title 35, 
United States Code, is amended by striking ``31'' and inserting 
``2(b)(2)(D)''.

SEC. 4716. TRADEMARK TRIAL AND APPEAL BOARD.

    Section 17 of the Act of July 5, 1946 (commonly referred to as the 
``Trademark Act of 1946'') (15 U.S.C. 1067) is amended to read as 
follows:
    ``Sec. 17. (a) In every case of interference, opposition to 
registration, application to register as a lawful concurrent user, or 
application to cancel the registration of a mark, the Director shall 
give notice to all parties and shall direct a Trademark Trial and 
Appeal Board to determine and decide the respective rights of 
registration.
    ``(b) The Trademark Trial and Appeal Board shall include the 
Director, the Commissioner for Patents, the Commissioner for 
Trademarks, and administrative trademark judges who are appointed by 
the Director.''.

SEC. 4717. BOARD OF PATENT APPEALS AND INTERFERENCES.

    Chapter 1 of title 35, United States Code, is amended--
            (1) by striking section 7 and redesignating sections 8 
        through 14 as sections 7 through 13, respectively; and
            (2) by inserting after section 5 the following:
``Sec. 6. Board of Patent Appeals and Interferences
    ``(a) Establishment and Composition.--There shall be in the United 
States Patent and Trademark Office a Board of Patent Appeals and 
Interferences. The Director, the Commissioner for Patents, the 
Commissioner for Trademarks, and the administrative patent judges shall 
constitute the Board. The administrative patent judges shall be persons 
of competent legal knowledge and scientific ability who are appointed 
by the Director.
    ``(b) Duties.--The Board of Patent Appeals and Interferences shall, 
on written appeal of an applicant, review adverse decisions of 
examiners upon applications for patents and shall determine priority 
and patentability of invention in interferences declared under section 
135(a). Each appeal and interference shall be heard by at least three 
members of the Board, who shall be designated by the Director. Only the 
Board of Patent Appeals and Interferences may grant rehearings.''.

SEC. 4718. ANNUAL REPORT OF DIRECTOR.

    Section 13 of title 35, United States Code, as redesignated by 
section 4717 of this subtitle, is amended to read as follows:
``Sec. 13. Annual report to Congress
    ``The Director shall report to the Congress, not later than 180 
days after the end of each fiscal year, the moneys received and 
expended by the Office, the purposes for which the moneys were spent, 
the quality and quantity of the work of the Office, the nature of 
training provided to examiners, the evaluation of the Commissioner of 
Patents and the Commissioner of Trademarks by the Secretary of 
Commerce, the compensation of the Commissioners, and other information 
relating to the Office.''.

SEC. 4719. SUSPENSION OR EXCLUSION FROM PRACTICE.

    Section 32 of title 35, United States Code, is amended by inserting 
before the last sentence the following: ``The Director shall have the 
discretion to designate any attorney who is an officer or employee of 
the United States Patent and Trademark Office to conduct the hearing 
required by this section.''.

SEC. 4720. PAY OF DIRECTOR AND DEPUTY DIRECTOR.

    (a) Pay of Director.--Section 5314 of title 5, United States Code, 
is amended by striking:
            ``Assistant Secretary of Commerce and Commissioner of 
        Patents and Trademarks.''.
and inserting:
            ``Under Secretary of Commerce for Intellectual Property and 
        Director of the United States Patent and Trademark Office.''.
    (b) Pay of Deputy Director.--Section 5315 of title 5, United States 
Code, is amended by adding at the end the following:
            ``Deputy Under Secretary of Commerce for Intellectual 
        Property and Deputy Director of the United States Patent and 
        Trademark Office.''.

            CHAPTER 2--EFFECTIVE DATE; TECHNICAL AMENDMENTS

SEC. 4731. EFFECTIVE DATE.

    This subtitle and the amendments made by this subtitle shall take 
effect 4 months after the date of the enactment of this Act.

SEC. 4732. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Amendments to Title 35, United States Code.--
            (1) The item relating to part I in the table of parts for 
        chapter 35, United States Code, is amended to read as follows:

``I. United States Patent and Trademark Office..............       1''.

            (2) The heading for part I of title 35, United States Code, 
        is amended to read as follows:

         ``PART I--UNITED STATES PATENT AND TRADEMARK OFFICE''.

            (3) The table of chapters for part I of title 35, United 
        States Code, is amended by amending the item relating to 
        chapter 1 to read as follows:

``1. Establishment, Officers and Employees, Functions.......       1''.

            (4) The table of sections for chapter 1 of title 35, United 
        States Code, is amended to read as follows:

     ``CHAPTER 1--ESTABLISHMENT, OFFICERS AND EMPLOYEES, FUNCTIONS

``Sec.
`` 1. Establishment.
`` 2. Powers and duties.
`` 3. Officers and employees.
`` 4. Restrictions on officers and employees as to interest in patents.
`` 5. Patent and Trademark Office Public Advisory Committees.
`` 6. Board of Patent Appeals and Interferences.
`` 7. Library.
`` 8. Classification of patents.
`` 9. Certified copies of records.
``10. Publications.
``11. Exchange of copies of patents and applications with foreign 
                            countries.
``12. Copies of patents and applications for public libraries.
``13. Annual report to Congress.''.

            (5) Section 41(h) of title 35, United States Code, is 
        amended by striking ``Commissioner of Patents and Trademarks'' 
        and inserting ``Director''.
            (6) Section 155 of title 35, United States Code, is amended 
        by striking ``Commissioner of Patents and Trademarks'' and 
        inserting ``Director''.
            (7) Section 155A(c) of title 35, United States Code, is 
        amended by striking ``Commissioner of Patents and Trademarks'' 
        and inserting ``Director''.
            (8) Section 302 of title 35, United States Code, is amended 
        by striking ``Commissioner of Patents'' and inserting 
        ``Director''.
            (9)(A) Section 303 of title 35, United States Code, is 
        amended--
                    (i) in the section heading by striking 
                ``Commissioner'' and inserting ``Director''; and
                    (ii) by striking ``Commissioner's'' and inserting 
                ``Director's''.
            (B) The item relating to section 303 in the table of 
        sections for chapter 30 of title 35, United States Code, is 
        amended by striking ``Commissioner'' and inserting 
        ``Director''.
            (10)(A) Except as provided in subparagraph (B), title 35, 
        United States Code, is amended by striking ``Commissioner'' 
        each place it appears and inserting ``Director''.
            (B) Chapter 17 of title 35, United States Code, is amended 
        by striking ``Commissioner'' each place it appears and 
        inserting ``Commissioner of Patents''.
            (11) Section 157(d) of title 35, United States Code, is 
        amended by striking ``Secretary of Commerce'' and inserting 
        ``Director''.
            (12) Section 202(a) of title 35, United States Code, is 
        amended--
                    (A) by striking ``iv)'' and inserting ``(iv)''; and
                    (B) by striking the second period after 
                ``Department of Energy'' at the end of the first 
                sentence.
    (b) Other Provisions of Law.--
            (1)(A) Section 45 of the Act of July 5, 1946 (commonly 
        referred to as the ``Trademark Act of 1946''; 15 U.S.C. 1127), 
        is amended by striking ``The term `Commissioner' means the 
        Commissioner of Patents and Trademarks.'' and inserting ``The 
        term `Director' means the Under Secretary of Commerce for 
        Intellectual Property and Director of the United States Patent 
        and Trademark Office.''.
            (B) The Act of July 5, 1946 (commonly referred to as the 
        ``Trademark Act of 1946''; 15 U.S.C. 1051 et seq.), except for 
        section 17, as amended by 4716 of this subtitle, is amended by 
        striking ``Commissioner'' each place it appears and inserting 
        ``Director''.
            (C) Sections 8(e) and 9(b) of the Trademark Act of 1946 are 
        each amended by striking ``Commissioner'' and inserting 
        ``Director''.
            (2) Section 500(e) of title 5, United States Code, is 
        amended by striking ``Patent Office'' and inserting ``United 
        States Patent and Trademark Office''.
            (3) Section 5102(c)(23) of title 5, United States Code, is 
        amended to read as follows:
            ``(23) administrative patent judges and designated 
        administrative patent judges in the United States Patent and 
        Trademark Office;''.
            (4) Section 5316 of title 5, United States Code (5 U.S.C. 
        5316) is amended by striking ``Commissioner of Patents, 
        Department of Commerce.'', ``Deputy Commissioner of Patents and 
        Trademarks.'', ``Assistant Commissioner for Patents.'', and 
        ``Assistant Commissioner for Trademarks.''.
            (5) Section 9(p)(1)(B) of the Small Business Act (15 U.S.C. 
        638(p)(1)(B)) is amended to read as follows:
                    ``(B) the Under Secretary of Commerce for 
                Intellectual Property and Director of the United States 
                Patent and Trademark Office; and''.
            (6) Section 12 of the Act of February 14, 1903 (15 U.S.C. 
        1511) is amended--
                    (A) by striking ``(d) Patent and Trademark 
                Office;'' and inserting:
            ``(4) United States Patent and Trademark Office''; and
                    (B) by redesignating subsections (a), (b), (c), 
                (e), (f), and (g) as paragraphs (1), (2), (3), (5), 
                (6), and (7), respectively and indenting the paragraphs 
                as so redesignated 2 ems to the right.
            (7) Section 19 of the Tennessee Valley Authority Act of 
        1933 (16 U.S.C. 831r) is amended--
                    (A) by striking ``Patent Office of the United 
                States'' and inserting ``United States Patent and 
                Trademark Office''; and
                    (B) by striking ``Commissioner of Patents'' and 
                inserting ``Under Secretary of Commerce for 
                Intellectual Property and Director of the United States 
                Patent and Trademark Office''.
            (8) Section 182(b)(2)(A) of the Trade Act of 1974 (19 
        U.S.C. 2242(b)(2)(A)) is amended by striking ``Commissioner of 
        Patents and Trademarks'' and inserting ``Under Secretary of 
        Commerce for Intellectual Property and Director of the United 
        States Patent and Trademark Office''.
            (9) Section 302(b)(2)(D) of the Trade Act of 1974 (19 
        U.S.C. 2412(b)(2)(D)) is amended by striking ``Commissioner of 
        Patents and Trademarks'' and inserting ``Under Secretary of 
        Commerce for Intellectual Property and Director of the United 
        States Patent and Trademark Office''.
            (10) The Act of April 12, 1892 (27 Stat. 395; 20 U.S.C. 91) 
        is amended by striking ``Patent Office'' and inserting ``United 
        States Patent and Trademark Office''.
            (11) Sections 505(m) and 512(o) of the Federal Food, Drug, 
        and Cosmetic Act (21 U.S.C. 355(m) and 360b(o)) are each 
        amended by striking ``Patent and Trademark Office of the 
        Department of Commerce'' and inserting ``United States Patent 
        and Trademark Office''.
            (12) Section 702(d) of the Federal Food, Drug, and Cosmetic 
        Act (21 U.S.C. 372(d)) is amended by striking ``Commissioner of 
        Patents'' and inserting ``Under Secretary of Commerce for 
        Intellectual Property and Director of the United States Patent 
        and Trademark Office'' and by striking ``Commissioner'' and 
        inserting ``Director''.
            (13) Section 105(e) of the Federal Alcohol Administration 
        Act (27 U.S.C. 205(e)) is amended by striking ``United States 
        Patent Office'' and inserting ``United States Patent and 
        Trademark Office''.
            (14) Section 1295(a)(4) of title 28, United States Code, is 
        amended--
                    (A) in subparagraph (A) by inserting ``United 
                States'' before ``Patent and Trademark''; and
                    (B) in subparagraph (B) by striking ``Commissioner 
                of Patents and Trademarks'' and inserting ``Under 
                Secretary of Commerce for Intellectual Property and 
                Director of the United States Patent and Trademark 
                Office''.
            (15) Chapter 115 of title 28, United States Code, is 
        amended--
                    (A) in the item relating to section 1744 in the 
                table of sections by striking ``Patent Office'' and 
                inserting ``United States Patent and Trademark 
                Office'';
                    (B) in section 1744--
                            (i) by striking ``Patent Office'' each 
                        place it appears in the text and section 
                        heading and inserting ``United States Patent 
                        and Trademark Office''; and
                            (ii) by striking ``Commissioner of 
                        Patents'' and inserting ``Under Secretary of 
                        Commerce for Intellectual Property and Director 
                        of the United States Patent and Trademark 
                        Office''; and
                    (C) by striking ``Commissioner'' and inserting 
                ``Director''.
            (16) Section 1745 of title 28, United States Code, is 
        amended by striking ``United States Patent Office'' and 
        inserting ``United States Patent and Trademark Office''.
            (17) Section 1928 of title 28, United States Code, is 
        amended by striking ``Patent Office'' and inserting ``United 
        States Patent and Trademark Office''.
            (18) Section 151 of the Atomic Energy Act of 1954 (42 
        U.S.C. 2181) is amended in subsections c. and d. by striking 
        ``Commissioner of Patents'' and inserting ``Under Secretary of 
        Commerce for Intellectual Property and Director of the United 
        States Patent and Trademark Office''.
            (19) Section 152 of the Atomic Energy Act of 1954 (42 
        U.S.C. 2182) is amended by striking ``Commissioner of Patents'' 
        each place it appears and inserting ``Under Secretary of 
        Commerce for Intellectual Property and Director of the United 
        States Patent and Trademark Office''.
            (20) Section 305 of the National Aeronautics and Space Act 
        of 1958 (42 U.S.C. 2457) is amended--
                    (A) in subsection (c) by striking ``Commissioner of 
                Patents'' and inserting ``Under Secretary of Commerce 
                for Intellectual Property and Director of the United 
                States Patent and Trademark Office (hereafter in this 
                section referred to as the `Director')''; and
                    (B) by striking ``Commissioner'' each subsequent 
                place it appears and inserting ``Director''.
            (21) Section 12(a) of the Solar Heating and Cooling 
        Demonstration Act of 1974 (42 U.S.C. 5510(a)) is amended by 
        striking ``Commissioner of the Patent Office'' and inserting 
        ``Under Secretary of Commerce for Intellectual Property and 
        Director of the United States Patent and Trademark Office''.
            (22) Section 1111 of title 44, United States Code, is 
        amended by striking ``the Commissioner of Patents,''.
            (23) Section 1114 of title 44, United States Code, is 
        amended by striking ``the Commissioner of Patents,''.
            (24) Section 1123 of title 44, United States Code, is 
        amended by striking ``the Patent Office,''.
            (25) Sections 1337 and 1338 of title 44, United States 
        Code, and the items relating to those sections in the table of 
        contents for chapter 13 of such title, are repealed.
            (26) Section 10(i) of the Trading with the enemy Act (50 
        U.S.C. App. 10(i)) is amended by striking ``Commissioner of 
        Patents'' and inserting ``Under Secretary of Commerce for 
        Intellectual Property and Director of the United States Patent 
        and Trademark Office''.

                  CHAPTER 3--MISCELLANEOUS PROVISIONS

SEC. 4741. REFERENCES.

    (a) In General.--Any reference in any other Federal law, Executive 
order, rule, regulation, or delegation of authority, or any document of 
or pertaining to a department or office from which a function is 
transferred by this subtitle--
            (1) to the head of such department or office is deemed to 
        refer to the head of the department or office to which such 
        function is transferred; or
            (2) to such department or office is deemed to refer to the 
        department or office to which such function is transferred.
    (b) Specific References.--Any reference in any other Federal law, 
Executive order, rule, regulation, or delegation of authority, or any 
document of or pertaining to the Patent and Trademark Office--
            (1) to the Commissioner of Patents and Trademarks is deemed 
        to refer to the Under Secretary of Commerce for Intellectual 
        Property and Director of the United States Patent and Trademark 
        Office;
            (2) to the Assistant Commissioner for Patents is deemed to 
        refer to the Commissioner for Patents; or
            (3) to the Assistant Commissioner for Trademarks is deemed 
        to refer to the Commissioner for Trademarks.

SEC. 4742. EXERCISE OF AUTHORITIES.

    Except as otherwise provided by law, a Federal official to whom a 
function is transferred by this subtitle may, for purposes of 
performing the function, exercise all authorities under any other 
provision of law that were available with respect to the performance of 
that function to the official responsible for the performance of the 
function immediately before the effective date of the transfer of the 
function under this subtitle.

SEC. 4743. SAVINGS PROVISIONS.

    (a) Legal Documents.--All orders, determinations, rules, 
regulations, permits, grants, loans, contracts, agreements, 
certificates, licenses, and privileges--
            (1) that have been issued, made, granted, or allowed to 
        become effective by the President, the Secretary of Commerce, 
        any officer or employee of any office transferred by this 
        subtitle, or any other Government official, or by a court of 
        competent jurisdiction, in the performance of any function that 
        is transferred by this subtitle; and
            (2) that are in effect on the effective date of such 
        transfer (or become effective after such date pursuant to their 
        terms as in effect on such effective date), shall continue in 
        effect according to their terms until modified, terminated, 
        superseded, set aside, or revoked in accordance with law by the 
        President, any other authorized official, a court of competent 
        jurisdiction, or operation of law.
    (b) Proceedings.--This subtitle shall not affect any proceedings or 
any application for any benefits, service, license, permit, 
certificate, or financial assistance pending on the effective date of 
this subtitle before an office transferred by this subtitle, but such 
proceedings and applications shall be continued. Orders shall be issued 
in such proceedings, appeals shall be taken therefrom, and payments 
shall be made pursuant to such orders, as if this subtitle had not been 
enacted, and orders issued in any such proceeding shall continue in 
effect until modified, terminated, superseded, or revoked by a duly 
authorized official, by a court of competent jurisdiction, or by 
operation of law. Nothing in this subsection shall be considered to 
prohibit the discontinuance or modification of any such proceeding 
under the same terms and conditions and to the same extent that such 
proceeding could have been discontinued or modified if this subtitle 
had not been enacted.
    (c) Suits.--This subtitle shall not affect suits commenced before 
the effective date of this subtitle, and in all such suits, proceedings 
shall be had, appeals taken, and judgments rendered in the same manner 
and with the same effect as if this subtitle had not been enacted.
    (d) Nonabatement of Actions.--No suit, action, or other proceeding 
commenced by or against the Department of Commerce or the Secretary of 
Commerce, or by or against any individual in the official capacity of 
such individual as an officer or employee of an office transferred by 
this subtitle, shall abate by reason of the enactment of this subtitle.
    (e) Continuance of Suits.--If any Government officer in the 
official capacity of such officer is party to a suit with respect to a 
function of the officer, and under this subtitle such function is 
transferred to any other officer or office, then such suit shall be 
continued with the other officer or the head of such other office, as 
applicable, substituted or added as a party.
    (f) Administrative Procedure and Judicial Review.--Except as 
otherwise provided by this subtitle, any statutory requirements 
relating to notice, hearings, action upon the record, or administrative 
or judicial review that apply to any function transferred by this 
subtitle shall apply to the exercise of such function by the head of 
the Federal agency, and other officers of the agency, to which such 
function is transferred by this subtitle.

SEC. 4744. TRANSFER OF ASSETS.

    Except as otherwise provided in this subtitle, so much of the 
personnel, property, records, and unexpended balances of 
appropriations, allocations, and other funds employed, used, held, 
available, or to be made available in connection with a function 
transferred to an official or agency by this subtitle shall be 
available to the official or the head of that agency, respectively, at 
such time or times as the Director of the Office of Management and 
Budget directs for use in connection with the functions transferred.

SEC. 4745. DELEGATION AND ASSIGNMENT.

    Except as otherwise expressly prohibited by law or otherwise 
provided in this subtitle, an official to whom functions are 
transferred under this subtitle (including the head of any office to 
which functions are transferred under this subtitle) may delegate any 
of the functions so transferred to such officers and employees of the 
office of the official as the official may designate, and may authorize 
successive redelegations of such functions as may be necessary or 
appropriate. No delegation of functions under this section or under any 
other provision of this subtitle shall relieve the official to whom a 
function is transferred under this subtitle of responsibility for the 
administration of the function.

SEC. 4746. AUTHORITY OF DIRECTOR OF THE OFFICE OF MANAGEMENT AND BUDGET 
              WITH RESPECT TO FUNCTIONS TRANSFERRED.

    (a) Determinations.--If necessary, the Director of the Office of 
Management and Budget shall make any determination of the functions 
that are transferred under this subtitle.
    (b) Incidental Transfers.--The Director of the Office of Management 
and Budget, at such time or times as the Director shall provide, may 
make such determinations as may be necessary with regard to the 
functions transferred by this subtitle, and to make such additional 
incidental dispositions of personnel, assets, liabilities, grants, 
contracts, property, records, and unexpended balances of 
appropriations, authorizations, allocations, and other funds held, 
used, arising from, available to, or to be made available in connection 
with such functions, as may be necessary to carry out the provisions of 
this subtitle. The Director shall provide for the termination of the 
affairs of all entities terminated by this subtitle and for such 
further measures and dispositions as may be necessary to effectuate the 
purposes of this subtitle.

SEC. 4747. CERTAIN VESTING OF FUNCTIONS CONSIDERED TRANSFERS.

    For purposes of this subtitle, the vesting of a function in a 
department or office pursuant to reestablishment of an office shall be 
considered to be the transfer of the function.

SEC. 4748. AVAILABILITY OF EXISTING FUNDS.

    Existing appropriations and funds available for the performance of 
functions, programs, and activities terminated pursuant to this 
subtitle shall remain available, for the duration of their period of 
availability, for necessary expenses in connection with the termination 
and resolution of such functions, programs, and activities, subject to 
the submission of a plan to the Committees on Appropriations of the 
House and Senate in accordance with the procedures set forth in section 
605 of the Departments of Commerce, Justice, and State, the Judiciary, 
and Related Agencies Appropriations Act, 1999, as contained in Public 
Law 105-277.

SEC. 4749. DEFINITIONS.

    For purposes of this subtitle--
            (1) the term ``function'' includes any duty, obligation, 
        power, authority, responsibility, right, privilege, activity, 
        or program; and
            (2) the term ``office'' includes any office, 
        administration, agency, bureau, institute, council, unit, 
        organizational entity, or component thereof.

              Subtitle H--Miscellaneous Patent Provisions

SEC. 4801. PROVISIONAL APPLICATIONS.

    (a) Abandonment.--Section 111(b)(5) of title 35, United States 
Code, is amended to read as follows:
            ``(5) Abandonment.--Notwithstanding the absence of a claim, 
        upon timely request and as prescribed by the Director, a 
        provisional application may be treated as an application filed 
        under subsection (a). Subject to section 119(e)(3) of this 
        title, if no such request is made, the provisional application 
        shall be regarded as abandoned 12 months after the filing date 
        of such application and shall not be subject to revival after 
        such 12-month period.''.
    (b) Technical Amendment Relating to Weekends and Holidays.--Section 
119(e) of title 35, United States Code, is amended by adding at the end 
the following:
            ``(3) If the day that is 12 months after the filing date of 
        a provisional application falls on a Saturday, Sunday, or 
        Federal holiday within the District of Columbia, the period of 
        pendency of the provisional application shall be extended to 
        the next succeeding secular or business day.''.
    (c) Elimination of Copendency Requirement.--Section 119(e)(2) of 
title 35, United States Code, is amended by striking ``and the 
provisional application was pending on the filing date of the 
application for patent under section 111(a) or section 363 of this 
title''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act and shall apply to any 
provisional application filed on or after June 8, 1995, except that the 
amendments made by subsections (b) and (c) shall have no effect with 
respect to any patent which is the subject of litigation in an action 
commenced before such date of enactment.

SEC. 4802. INTERNATIONAL APPLICATIONS.

    Section 119 of title 35, United States Code, is amended as follows:
            (1) In subsection (a), insert ``or in a WTO member 
        country,'' after ``or citizens of the United States,''.
            (2) At the end of section 119 add the following new 
        subsections:
    ``(f) Applications for plant breeder's rights filed in a WTO member 
country (or in a foreign UPOV Contracting Party) shall have the same 
effect for the purpose of the right of priority under subsections (a) 
through (c) of this section as applications for patents, subject to the 
same conditions and requirements of this section as apply to 
applications for patents.
    ``(g) As used in this section--
            ``(1) the term `WTO member country' has the same meaning as 
        the term is defined in section 104(b)(2) of this title; and
            ``(2) the term `UPOV Contracting Party' means a member of 
        the International Convention for the Protection of New 
        Varieties of Plants.''.

SEC. 4803. CERTAIN LIMITATIONS ON DAMAGES FOR PATENT INFRINGEMENT NOT 
              APPLICABLE.

    Section 287(c)(4) of title 35, United States Code, is amended by 
striking ``before the date of enactment of this subsection'' and 
inserting ``based on an application the earliest effective filing date 
of which is prior to September 30, 1996''.

SEC. 4804. ELECTRONIC FILING AND PUBLICATIONS.

    (a) Printing of Papers Filed.--Section 22 of title 35, United 
States Code, is amended by striking ``printed or typewritten'' and 
inserting ``printed, typewritten, or on an electronic medium''.
    (b) Publications.--Section 11(a) of title 35, United States Code, 
is amended by amending the matter preceding paragraph 1 to read as 
follows:
    ``(a) The Director may publish in printed, typewritten, or 
electronic form, the following:''.
    (c) Copies of Patents for Public Libraries.--Section 13 of title 
35, United States Code, is amended by striking ``printed copies of 
specifications and drawings of patents'' and inserting ``copies of 
specifications and drawings of patents in printed or electronic form''.
    (d) Maintenance of Collections.--
            (1) Electronic collections.--Section 41(i)(1) of title 35, 
        United States Code, is amended by striking ``paper or 
        microform'' and inserting ``paper, microform, or electronic''.
            (2) Continuation of maintenance.--The Under Secretary of 
        Commerce for Intellectual Property and Director of the United 
        States Patent and Trademark Office shall not, pursuant to the 
        amendment made by paragraph (1), cease to maintain, for use by 
        the public, paper or microform collections of United States 
        patents, foreign patent documents, and United States trademark 
        registrations, except pursuant to notice and opportunity for 
        public comment and except that the Director shall first submit 
        a report to the Committees on the Judiciary of the Senate and 
        the House of Representatives detailing such plan, including a 
        description of the mechanisms in place to ensure the integrity 
        of such collections and the data contained therein, as well as 
        to ensure prompt public access to the most current available 
        information, and certifying that the implementation of such 
        plan will not negatively impact the public.

SEC. 4805. STUDY AND REPORT ON BIOLOGICAL DEPOSITS IN SUPPORT OF 
              BIOTECHNOLOGY PATENTS.

    (a) In General.--Not later than 6 months after the date of the 
enactment of this Act, the Comptroller General of the United States, in 
consultation with the Under Secretary of Commerce for Intellectual 
Property and Director of the United States Patent and Trademark Office, 
shall conduct a study and submit a report to Congress on the potential 
risks to the United States biotechnology industry relating to 
biological deposits in support of biotechnology patents.
    (b) Contents.--The study conducted under this section shall 
include--
            (1) an examination of the risk of export and the risk of 
        transfers to third parties of biological deposits, and the 
        risks posed by the change to 18-month publication requirements 
        made by this subtitle;
            (2) an analysis of comparative legal and regulatory 
        regimes; and
            (3) any related recommendations.
    (c) Consideration of Report.--In drafting regulations affecting 
biological deposits (including any modification of title 37, Code of 
Federal Regulations, section 1.801 et seq.), the United States Patent 
and Trademark Office shall consider the recommendations of the study 
conducted under this section.

SEC. 4806. PRIOR INVENTION.

    Section 102(g) of title 35, United States Code, is amended to read 
as follows:
    ``(g)(1) during the course of an interference conducted under 
section 135 or section 291, another inventor involved therein 
establishes, to the extent permitted in section 104, that before such 
person's invention thereof the invention was made by such other 
inventor and not abandoned, suppressed, or concealed, or (2) before 
such person's invention thereof, the invention was made in this country 
by another inventor who had not abandoned, suppressed, or concealed it. 
In determining priority of invention under this subsection, there shall 
be considered not only the respective dates of conception and reduction 
to practice of the invention, but also the reasonable diligence of one 
who was first to conceive and last to reduce to practice, from a time 
prior to conception by the other.''.

SEC. 4807. PRIOR ART EXCLUSION FOR CERTAIN COMMONLY ASSIGNED PATENTS.

    (a) Prior Art Exclusion.--Section 103(c) of title 35, United States 
Code, is amended by striking ``subsection (f) or (g)'' and inserting 
``one or more of subsections (e), (f), and (g)''.
    (b) Effective Date.--The amendment made by this section shall apply 
to any application for patent filed on or after the date of the 
enactment of this Act.

SEC. 4808. EXCHANGE OF COPIES OF PATENTS WITH FOREIGN COUNTRIES.

    Section 12 of title 35, United States Code, is amended by adding at 
the end the following: ``The Director shall not enter into an agreement 
to provide such copies of specifications and drawings of United States 
patents and applications to a foreign country, other than a NAFTA 
country or a WTO member country, without the express authorization of 
the Secretary of Commerce. For purposes of this section, the terms 
`NAFTA country' and `WTO member country' have the meanings given those 
terms in section 104(b).''.

                   TITLE V--MISCELLANEOUS PROVISIONS

SEC. 5001. COMMISSION ON ONLINE CHILD PROTECTION.

    (a) References.--Wherever in this section an amendment is expressed 
in terms of an amendment to any provision, the reference shall be 
considered to be made to such provision of section 1405 of the Child 
Online Protection Act (47 U.S.C. 231 note).
    (b) Membership.--Subsection (b) is amended--
            (1) by striking paragraph (1) and inserting the following 
        new paragraph:
            ``(1) Industry members.--The Commission shall include 16 
        members who shall consist of representatives of--
                    ``(A) providers of Internet filtering or blocking 
                services or software;
                    ``(B) Internet access services;
                    ``(C) labeling or ratings services;
                    ``(D) Internet portal or search services;
                    ``(E) domain name registration services;
                    ``(F) academic experts; and
                    ``(G) providers that make content available over 
                the Internet.
        Of the members of the Commission by reason of this paragraph, 
        an equal number shall be appointed by the Speaker of the House 
        of Representatives and by the Majority Leader of the Senate. 
        Members of the Commission appointed on or before October 31, 
        1999, shall remain members.''; and
            (2) by adding at the end the following new paragraph:
            ``(3) Prohibition of pay.--Members of the Commission shall 
        not receive any pay by reason of their membership on the 
        Commission.''.
    (c) Extension of Reporting Deadline.--The matter in subsection (d) 
that precedes paragraph (1) is amended by striking ``1 year'' and 
inserting ``2 years''.
    (d) Termination.--Subsection (f) is amended by inserting before the 
period at the end the following: ``or November 30, 2000, whichever 
occurs earlier''.
    (e) First Meeting and Chairperson.--Section 1405 is amended--
            (1) by striking subsection (e);
            (2) by redesignating subsections (f) (as amended by the 
        preceding provisions of this section) and (g) as subsections 
        (l) and (m), respectively;
            (3) by redesignating subsections (c) and (d) (as amended by 
        the preceding provisions of this section) as subsections (e) 
        and (f), respectively; and
            (4) by inserting after subsection (b) the following new 
        subsections:
    ``(c) First Meeting.--The Commission shall hold its first meeting 
not later than March 31, 2000.
    ``(d) Chairperson.--The chairperson of the Commission shall be 
elected by a vote of a majority of the members, which shall take place 
not later than 30 days after the first meeting of the Commission.''.
    (f) Rules of the Commission.--Section 1405 is amended by inserting 
after subsection (f) (as so redesignated by subsection (e)(3) of this 
section) the following new subsection:
    ``(g) Rules of the Commission.--
            ``(1) Quorum.--Nine members of the Commission shall 
        constitute a quorum for conducting the business of the 
        Commission.
            ``(2) Meetings.--Any meetings held by the Commission shall 
        be duly noticed at least 14 days in advance and shall be open 
        to the public.
            ``(3) Opportunities to testify.--The Commission shall 
        provide opportunities for representatives of the general public 
        to testify.
            ``(4) Additional rules.--The Commission may adopt other 
        rules as necessary to carry out this section.''.

SEC. 5002. PRIVACY PROTECTION FOR DONORS TO PUBLIC BROADCASTING 
              ENTITIES.

    (a) Amendment.--Section 396(k) of the Communications Act of 1934 
(47 U.S.C. 396(k)) is amended by adding at the end the following new 
paragraph:
    ``(12) Funds may not be distributed under this subsection to any 
public broadcasting entity that directly or indirectly--
            ``(A) rents contributor or donor names (or other personally 
        identifiable information) to or from, or exchanges such names 
        or information with, any Federal, State, or local candidate, 
        political party, or political committee; or
            ``(B) discloses contributor or donor names, or other 
        personally identifiable information, to any nonaffiliated third 
        party unless--
                    ``(i) such entity clearly and conspicuously 
                discloses to the contributor or donor that such 
                information may be disclosed to such third party;
                    ``(ii) the contributor or donor is given the 
                opportunity, before the time that such information is 
                initially disclosed, to direct that such information 
                not be disclosed to such third party; and
                    ``(iii) the contributor or donor is given an 
                explanation of how the contributor or donor may 
                exercise that nondisclosure option.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to funds distributed on or after 6 months after the 
date of the enactment of this Act.

SEC. 5003. COMPLETION OF BIENNIAL REGULATORY REVIEW.

    Within 180 days after the date of the enactment of this Act, the 
Federal Communications Commission shall complete the first biennial 
review required by section 202(h) of the Telecommunications Act of 1996 
(Public Law 104-104; 110 Stat. 111).

SEC. 5004. PUBLIC BROADCASTING ENTITIES.

    (a) Civil Remittance of Damages.--Section 1203(c)(5)(B) of title 
17, United States Code, is amended to read as follows:
                    ``(B) Nonprofit library, archives, educational 
                institutions, or public broadcasting entities.--
                            ``(i) Definition.--In this subparagraph, 
                        the term `public broadcasting entity' has the 
                        meaning given such term under section 118(g).
                            ``(ii) In general.--In the case of a 
                        nonprofit library, archives, educational 
                        institution, or public broadcasting entity, the 
                        court shall remit damages in any case in which 
                        the library, archives, educational institution, 
                        or public broadcasting entity sustains the 
                        burden of proving, and the court finds, that 
                        the library, archives, educational institution, 
                        or public broadcasting entity was not aware and 
                        had no reason to believe that its acts 
                        constituted a violation.''.
    (b) Criminal Offenses and Penalties.--Section 1204(b) of title 17, 
United States Code, is amended to read as follows:
    ``(b) Limitation for Nonprofit Library, Archives, Educational 
Institution, or Public Broadcasting Entity.--
Subsection (a) shall not apply to a nonprofit library, archives, 
educational institution, or public broadcasting entity (as defined 
under section 118(g).''.

SEC. 5005. TECHNICAL AMENDMENTS RELATING TO VESSEL HULL DESIGN 
              PROTECTION.

    (a) In General.--
            (1) Section 504(a) of the Digital Millennium Copyright Act 
        (Public Law 105-304) is amended to read as follows:
    ``(a) In General.--Not later than November 1, 2003, the Register of 
Copyrights and the Commissioner of Patents and Trademarks shall submit 
to the Committees on the Judiciary of the Senate and the House of 
Representatives a joint report evaluating the effect of the amendments 
made by this title.''.
            (2) Section 505 of the Digital Millennium Copyright Act is 
        amended by striking ``and shall remain in effect'' and all that 
        follows through the end of the section and inserting a period.
            (3) Section 1301(b)(3) of title 17, United States Code, is 
        amended to read as follows:
            ``(3) A `vessel' is a craft--
                    ``(A) that is designed and capable of independently 
                steering a course on or through water through its own 
                means of propulsion; and
                    ``(B) that is designed and capable of carrying and 
                transporting one or more passengers.''.
            (4) Section 1313(c) of title 17, United States Code, is 
        amended by adding at the end the following: ``Costs of the 
        cancellation procedure under this subsection shall be borne by 
        the nonprevailing party or parties, and the Administrator shall 
        have the authority to assess and collect such costs.''.
    (b) Tariff Act of 1930.--Section 337 of the Tariff Act of 1930 (19 
U.S.C. 1337) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (A), by striking ``and 
                        (D)'' and inserting ``(D), and (E)''; and
                            (ii) by adding at the end the following:
                    ``(E) The importation into the United States, the 
                sale for importation, or the sale within the United 
                States after importation by the owner, importer, or 
                consigner, of an article that constitutes infringement 
                of the exclusive rights in a design protected under 
                chapter 13 of title 17, United States Code.''; and
                    (B) in paragraphs (2) and (3), by striking ``or 
                mask work'' and inserting ``mask work, or design''; and
            (2) in subsection (l), by striking ``or mask work'' each 
        place it appears and inserting ``mask work, or design''.

SEC. 5006. INFORMAL RULEMAKING OF COPYRIGHT DETERMINATION.

    Section 1201(a)(1)(C) of title 17, United States Code, is amended 
in the first sentence by striking ``on the record''.

SEC. 5007. SERVICE OF PROCESS FOR SURETY CORPORATIONS.

    Section 9306 of title 31, United States Code, is amended--
            (1) in subsection (a) by striking all beginning with 
        ``designates a person by written power of attorney'' through 
        the end of such subsection and inserting the following: ``has a 
        resident agent for service of process for that district. The 
        resident agent--
            ``(1) may be an official of the State, the District of 
        Columbia, the territory or possession in which the court sits 
        who is authorized or appointed under the law of the State, 
        District, territory or possession to receive service of process 
        on the corporation; or
            ``(2) may be an individual who resides in the jurisdiction 
        of the district court for the district in which a surety bond 
        is to be provided and who is appointed by the corporation as 
        provided in subsection (b)''; and
            (2) in subsection (b) by striking ``The'' and inserting 
        ``If the surety corporation meets the requirement of subsection 
        (a) by appointing an individual under subsection (a)(2), the''.

SEC. 5008. LOW-POWER TELEVISION.

    (a) Short Title.--This section may be cited as the ``Community 
Broadcasters Protection Act of 1999''.
    (b) Findings.--Congress finds the following:
            (1) Since the creation of low-power television licenses by 
        the Federal Communications Commission, a small number of 
        license holders have operated their stations in a manner 
        beneficial to the public good providing broadcasting to their 
        communities that would not otherwise be available.
            (2) These low-power broadcasters have operated their 
        stations in a manner consistent with the programming objectives 
        and hours of operation of full-power broadcasters providing 
        worthwhile services to their respective communities while under 
        severe license limitations compared to their full-power 
        counterparts.
            (3) License limitations, particularly the temporary nature 
        of the license, have blocked many low-power broadcasters from 
        having access to capital, and have severely hampered their 
        ability to continue to provide quality broadcasting, 
        programming, or improvements.
            (4) The passage of the Telecommunications Act of 1996 has 
        added to the uncertainty of the future status of these stations 
        by the lack of specific provisions regarding the permanency of 
        their licenses, or their treatment during the transition to 
        high definition, digital television.
            (5) It is in the public interest to promote diversity in 
        television programming such as that currently provided by low-
        power television stations to foreign-language communities.
    (c) Preservation of Low-Power Community Television Broadcasting.--
Section 336 of the Communications Act of 1934 (47 U.S.C. 336) is 
amended--
            (1) by redesignating subsections (f) and (g) as subsections 
        (g) and (h), respectively; and
            (2) by inserting after subsection (e) the following new 
        subsection:
    ``(f) Preservation of Low-Power Community Television 
Broadcasting.--
            ``(1) Creation of class a licenses.--
                    ``(A) Rulemaking Required.--Within 120 days after 
                the date of the enactment of the Community Broadcasters 
                Protection Act of 1999, the Commission shall prescribe 
                regulations to establish a class A television license 
                to be available to licensees of qualifying low-power 
                television stations. Such regulations shall provide 
                that--
                            ``(i) the license shall be subject to the 
                        same license terms and renewal standards as the 
                        licenses for full-power television stations 
                        except as provided in this subsection; and
                            ``(ii) each such class A licensee shall be 
                        accorded primary status as a television 
                        broadcaster as long as the station continues to 
                        meet the requirements for a qualifying low-
                        power station in paragraph (2).
                    ``(B) Notice to and certification by licensees.--
                Within 30 days after the date of the enactment of the 
                Community Broadcasters Protection Act of 1999, the 
                Commission shall send a notice to the licensees of all 
                low-power televisions licenses that describes the 
                requirements for class A designation. Within 60 days 
                after such date of enactment, licensees intending to 
                seek class A designation shall submit to the Commission 
                a certification of eligibility based on the 
                qualification requirements of this subsection. Absent a 
                material deficiency, the Commission shall grant 
                certification of eligibility to apply for class A 
                status.
                    ``(C) Application for and award of licenses.--
                Consistent with the requirements set forth in paragraph 
                (2)(A) of this subsection, a licensee may submit an 
                application for class A designation under this 
                paragraph within 30 days after final regulations are 
                adopted under subparagraph (A) of this paragraph. 
                Except as provided in paragraphs (6) and (7), the 
                Commission shall, within 30 days after receipt of an 
                application of a licensee of a qualifying low-power 
                television station that is acceptable for filing, award 
                such a class A television station license to such 
                licensee.
                    ``(D) Resolution of technical problems.--The 
                Commission shall act to preserve the service areas of 
                low-power television licensees pending the final 
                resolution of a class A application. If, after granting 
                certification of eligibility for a class A license, 
                technical problems arise requiring an engineering 
                solution to a full-power station's allotted parameters 
                or channel assignment in the digital television Table 
                of Allotments, the Commission shall make such 
                modifications as necessary--
                            ``(i) to ensure replication of the full-
                        power digital television applicant's service 
                        area, as provided for in sections 73.622 and 
                        73.623 of the Commission's regulations (47 CFR 
                        73.622, 73.623); and
                            ``(ii) to permit maximization of a full-
                        power digital television applicant's service 
                        area consistent with such sections 73.622 and 
                        73.623,
                if such applicant has filed an application for 
                maximization or a notice of its intent to seek such 
                maximization by December 31, 1999, and filed a bona 
                fide application for maximization by May 1, 2000. Any 
                such applicant shall comply with all applicable 
                Commission rules regarding the construction of digital 
                television facilities.
                    ``(E) Change applications.--If a station that is 
                awarded a construction permit to maximize or 
                significantly enhance its digital television service 
                area, later files a change application to reduce its 
                digital television service area, the protected contour 
                of that station shall be reduced in accordance with 
                such change modification.
            ``(2) Qualifying low-power television stations.--For 
        purposes of this subsection, a station is a qualifying low-
        power television station if--
                    ``(A)(i) during the 90 days preceding the date of 
                the enactment of the Community Broadcasters Protection 
                Act of 1999--
                            ``(I) such station broadcast a minimum of 
                        18 hours per day;
                            ``(II) such station broadcast an average of 
                        at least 3 hours per week of programming that 
                        was produced within the market area served by 
                        such station, or the market area served by a 
                        group of commonly controlled low-power stations 
                        that carry common local programming produced 
                        within the market area served by such group; 
                        and
                            ``(III) such station was in compliance with 
                        the Commission's requirements applicable to 
                        low-power television stations; and
                    ``(ii) from and after the date of its application 
                for a class A license, the station is in compliance 
                with the Commission's operating rules for full-power 
                television stations; or
                    ``(B) the Commission determines that the public 
                interest, convenience, and necessity would be served by 
                treating the station as a qualifying low-power 
                television station for purposes of this section, or for 
                other reasons determined by the Commission.
            ``(3) Common ownership.--No low-power television station 
        authorized as of the date of the enactment of the Community 
        Broadcasters Protection Act of 1999 shall be disqualified for a 
        class A license based on common ownership with any other medium 
        of mass communication.
            ``(4) Issuance of licenses for advanced television services 
        to television translator stations and qualifying low-power 
        television stations.--The Commission is not required to issue 
        any additional license for advanced television services to the 
        licensee of a class A television station under this subsection, 
        or to any licensee of any television translator station, but 
        shall accept a license application for such services proposing 
        facilities that will not cause interference to the service area 
        of any other broadcast facility applied for, protected, 
        permitted, or authorized on the date of filing of the advanced 
        television application. Such new license or the original 
        license of the applicant shall be forfeited after the end of 
        the digital television service transition period, as determined 
        by the Commission. A licensee of a low-power television station 
        or television translator station may, at the option of 
        licensee, elect to convert to the provision of advanced 
        television services on its analog channel, but shall not be 
        required to convert to digital operation until the end of such 
        transition period.
            ``(5) No preemption of section 337.--Nothing in this 
        subsection preempts or otherwise affects section 337 of this 
        Act.
            ``(6) Interim qualification.--
                    ``(A) Stations operating within certain 
                bandwidth.--The Commission may not grant a class A 
                license to a low-power television station for operation 
                between 698 and 806 megahertz, but the Commission shall 
                provide to low-power television stations assigned to 
                and temporarily operating in that bandwidth the 
                opportunity to meet the qualification requirements for 
                a class A license. If such a qualified applicant for a 
                class A license is assigned a channel within the core 
                spectrum (as such term is defined in MM Docket No. 87-
                286, February 17, 1998), the Commission shall issue a 
                class A license simultaneously with the assignment of 
                such channel.
                    ``(B) Certain channels off-limits.--The Commission 
                may not grant under this subsection a class A license 
                to a low-power television station operating on a 
                channel within the core spectrum that includes any of 
                the 175 additional channels referenced in paragraph 45 
                of its February 23, 1998, Memorandum Opinion and Order 
                on Reconsideration of the Sixth Report and Order (MM 
                Docket No. 87-268). Within 18 months after the date of 
                the enactment of the Community Broadcasters Protection 
                Act of 1999, the Commission shall identify by channel, 
                location, and applicable technical parameters those 175 
                channels.
            ``(7) No interference requirement.--The Commission may not 
        grant a class A license, nor approve a modification of a class 
        A license, unless the applicant or licensee shows that the 
        class A station for which the license or modification is sought 
        will not cause--
                    ``(A) interference within--
                            ``(i) the predicted Grade B contour (as of 
                        the date of the enactment of the Community 
                        Broadcasters Protection Act of 1999, or 
                        November 1, 1999, whichever is later, or as 
                        proposed in a change application filed on or 
                        before such date) of any television station 
                        transmitting in analog format; or
                            ``(ii)(I) the digital television service 
                        areas provided in the DTV Table of Allotments; 
                        (II) the areas protected in the Commission's 
                        digital television regulations (47 CFR 
                        73.622(e) and (f)); (III) the digital 
                        television service areas of stations 
                        subsequently granted by the Commission prior to 
                        the filing of a class A application; and (IV) 
                        stations seeking to maximize power under the 
                        Commission's rules, if such station has 
                        complied with the notification requirements in 
                        paragraph (1)(D);
                    ``(B) interference within the protected contour of 
                any low-power television station or low-power 
                television translator station that--
                            ``(i) was licensed prior to the date on 
                        which the application for a class A license, or 
                        for the modification of such a license, was 
                        filed;
                            ``(ii) was authorized by construction 
                        permit prior to such date; or
                            ``(iii) had a pending application that was 
                        submitted prior to such date; or
                    ``(C) interference within the protected contour of 
                80 miles from the geographic center of the areas listed 
                in section 22.625(b)(1) or 90.303 of the Commission's 
                regulations (47 CFR 22.625(b)(1) and 90.303) for 
                frequencies in--
                            ``(i) the 470-512 megahertz band identified 
                        in 
                        section 22.621 or 90.303 of such regulations; 
                        or
                            ``(ii) the 482-488 megahertz band in New 
                        York.
            ``(8) Priority for displaced low-power stations.--Low-power 
        stations that are displaced by an application filed under this 
        section shall have priority over other low-power stations in 
        the assignment of available channels.''.

                  TITLE VI--SUPERFUND RECYCLING EQUITY

SEC. 6001. SUPERFUND RECYCLING EQUITY.

    (a) Purposes.--The purposes of this section are--
            (1) to promote the reuse and recycling of scrap material in 
        furtherance of the goals of waste minimization and natural 
        resource conservation while protecting human health and the 
        environment;
            (2) to create greater equity in the statutory treatment of 
        recycled versus virgin materials; and
            (3) to remove the disincentives and impediments to 
        recycling created as an unintended consequence of the 1980 
        Superfund liability provisions.
    (b) Clarification of Liability Under CERCLA for Recycling 
Transactions.--
            (1) Clarification.--Title I of the Comprehensive 
        Environmental Response, Compensation, and Liability Act of 1980 
        (42 U.S.C. 9601 et seq.) is amended by adding at the end the 
        following new section:

``SEC. 127. RECYCLING TRANSACTIONS.

    ``(a) Liability Clarification.--
            ``(1) As provided in subsections (b), (c), (d), and (e), a 
        person who arranged for recycling of recyclable material shall 
        not be liable under sections 107(a)(3) and 107(a)(4) with 
        respect to such material.
            ``(2) A determination whether or not any person shall be 
        liable under section 107(a)(3) or section 107(a)(4) for any 
        material that is not a recyclable material as that term is used 
        in subsections (b) and (c), (d), or (e) of this section shall 
        be made, without regard to subsections (b), (c), (d), or (e) of 
        this section.
    ``(b) Recyclable Material Defined.--For purposes of this section, 
the term `recyclable material' means scrap paper, scrap plastic, scrap 
glass, scrap textiles, scrap rubber (other than whole tires), scrap 
metal, or spent lead-acid, spent nickel-cadmium, and other spent 
batteries, as well as minor amounts of material incident to or adhering 
to the scrap material as a result of its normal and customary use prior 
to becoming scrap; except that such term shall not include--
            ``(1) shipping containers of a capacity from 30 liters to 
        3,000 liters, whether intact or not, having any hazardous 
        substance (but not metal bits and pieces or hazardous substance 
        that form an integral part of the container) contained in or 
        adhering thereto; or
            ``(2) any item of material that contained polychlorinated 
        biphenyls at a concentration in excess of 50 parts per million 
        or any new standard promulgated pursuant to applicable Federal 
        laws.
    ``(c) Transactions Involving Scrap Paper, Plastic, Glass, Textiles, 
or Rubber.--Transactions involving scrap paper, scrap plastic, scrap 
glass, scrap textiles, or scrap rubber (other than whole tires) shall 
be deemed to be arranging for recycling if the person who arranged for 
the transaction (by selling recyclable material or otherwise arranging 
for the recycling of recyclable material) can demonstrate by a 
preponderance of the evidence that all of the following criteria were 
met at the time of the transaction:
            ``(1) The recyclable material met a commercial 
        specification grade.
            ``(2) A market existed for the recyclable material.
            ``(3) A substantial portion of the recyclable material was 
        made available for use as feedstock for the manufacture of a 
        new saleable product.
            ``(4) The recyclable material could have been a replacement 
        or substitute for a virgin raw material, or the product to be 
        made from the recyclable material could have been a replacement 
        or substitute for a product made, in whole or in part, from a 
        virgin raw material.
            ``(5) For transactions occurring 90 days or more after the 
        date of enactment of this section, the person exercised 
        reasonable care to determine that the facility where the 
        recyclable material was handled, processed, reclaimed, or 
        otherwise managed by another person (hereinafter in this 
        section referred to as a `consuming facility') was in 
        compliance with substantive (not procedural or administrative) 
        provisions of any Federal, State, or local environmental law or 
        regulation, or compliance order or decree issued pursuant 
        thereto, applicable to the handling, processing, reclamation, 
        storage, or other management activities associated with 
        recyclable material.
            ``(6) For purposes of this subsection, `reasonable care' 
        shall be determined using criteria that include (but are not 
        limited to)--
                    ``(A) the price paid in the recycling transaction;
                    ``(B) the ability of the person to detect the 
                nature of the consuming facility's operations 
                concerning its handling, processing, reclamation, or 
                other management activities associated with recyclable 
                material; and
                    ``(C) the result of inquiries made to the 
                appropriate Federal, State, or local environmental 
                agency (or agencies) regarding the consuming facility's 
                past and current compliance with substantive (not 
                procedural or administrative) provisions of any 
                Federal, State, or local environmental law or 
                regulation, or compliance order or decree issued 
                pursuant thereto, applicable to the handling, 
                processing, reclamation, storage, or other management 
                activities associated with the recyclable material. For 
                the purposes of this paragraph, a requirement to obtain 
                a permit applicable to the handling, processing, 
                reclamation, or other management activity associated 
                with the recyclable materials shall be deemed to be a 
                substantive provision.
    ``(d) Transactions Involving Scrap Metal.--
            ``(1) Transactions involving scrap metal shall be deemed to 
        be arranging for recycling if the person who arranged for the 
        transaction (by selling recyclable material or otherwise 
        arranging for the recycling of recyclable material) can 
        demonstrate by a preponderance of the evidence that at the time 
        of the transaction--
                    ``(A) the person met the criteria set forth in 
                subsection (c) with respect to the scrap metal;
                    ``(B) the person was in compliance with any 
                applicable regulations or standards regarding the 
                storage, transport, management, or other activities 
                associated with the recycling of scrap metal that the 
                Administrator promulgates under the Solid Waste 
                Disposal Act subsequent to the enactment of this 
                section and with regard to transactions occurring after 
                the effective date of such regulations or standards; 
                and
                    ``(C) the person did not melt the scrap metal prior 
                to the transaction.
            ``(2) For purposes of paragraph (1)(C), melting of scrap 
        metal does not include the thermal separation of 2 or more 
        materials due to differences in their melting points (referred 
        to as `sweating').
            ``(3) For purposes of this subsection, the term `scrap 
        metal' means bits and pieces of metal parts (e.g., bars, 
        turnings, rods, sheets, wire) or metal pieces that may be 
        combined together with bolts or soldering (e.g., radiators, 
        scrap automobiles, railroad box cars), which when worn or 
        superfluous can be recycled, except for scrap metals that the 
        Administrator excludes from this definition by regulation.
    ``(e) Transactions Involving Batteries.--Transactions involving 
spent lead-acid batteries, spent nickel-cadmium batteries, or other 
spent batteries shall be deemed to be arranging for recycling if the 
person who arranged for the transaction (by selling recyclable material 
or otherwise arranging for the recycling of recyclable material) can 
demonstrate by a preponderance of the evidence that at the time of the 
transaction--
            ``(1) the person met the criteria set forth in subsection 
        (c) with respect to the spent lead-acid batteries, spent 
        nickel-cadmium batteries, or other spent batteries, but the 
        person did not recover the valuable components of such 
        batteries; and
            ``(2)(A) with respect to transactions involving lead-acid 
        batteries, the person was in compliance with applicable Federal 
        environmental regulations or standards, and any amendments 
        thereto, regarding the storage, transport, management, or other 
        activities associated with the recycling of spent lead-acid 
        batteries;
            ``(B) with respect to transactions involving nickel-cadmium 
        batteries, Federal environmental regulations or standards are 
        in effect regarding the storage, transport, management, or 
        other activities associated with the recycling of spent nickel-
        cadmium batteries, and the person was in compliance with 
        applicable regulations or standards or any amendments thereto; 
        or
            ``(C) with respect to transactions involving other spent 
        batteries, Federal environmental regulations or standards are 
        in effect regarding the storage, transport, management, or 
        other activities associated with the recycling of such 
        batteries, and the person was in compliance with applicable 
        regulations or standards or any amendments thereto.
    ``(f) Exclusions.--
            ``(1) The exemptions set forth in subsections (c), (d), and 
        (e) shall not apply if--
                    ``(A) the person had an objectively reasonable 
                basis to believe at the time of the recycling 
                transaction--
                            ``(i) that the recyclable material would 
                        not be recycled;
                            ``(ii) that the recyclable material would 
                        be burned as fuel, or for energy recovery or 
                        incineration; or
                            ``(iii) for transactions occurring before 
                        90 days after the date of the enactment of this 
                        section, that the consuming facility was not in 
                        compliance with a substantive (not procedural 
                        or administrative) provision of any Federal, 
                        State, or local environmental law or 
                        regulation, or compliance order or decree 
                        issued pursuant thereto, applicable to the 
                        handling, processing, reclamation, or other 
                        management activities associated with the 
                        recyclable material;
                    ``(B) the person had reason to believe that 
                hazardous substances had been added to the recyclable 
                material for purposes other than processing for 
                recycling; or
                    ``(C) the person failed to exercise reasonable care 
                with respect to the management and handling of the 
                recyclable material (including adhering to customary 
                industry practices current at the time of the recycling 
                transaction designed to minimize, through source 
                control, contamination of the recyclable material by 
                hazardous substances).
            ``(2) For purposes of this subsection, an objectively 
        reasonable basis for belief shall be determined using criteria 
        that include (but are not limited to) the size of the person's 
        business, customary industry practices (including customary 
        industry practices current at the time of the recycling 
        transaction designed to minimize, through source control, 
        contamination of the recyclable material by hazardous 
        substances), the price paid in the recycling transaction, and 
        the ability of the person to detect the nature of the consuming 
        facility's operations concerning its handling, processing, 
        reclamation, or other management activities associated with the 
        recyclable material.
            ``(3) For purposes of this subsection, a requirement to 
        obtain a permit applicable to the handling, processing, 
        reclamation, or other management activities associated with 
        recyclable material shall be deemed to be a substantive 
        provision.
    ``(g) Effect on Other Liability.--Nothing in this section shall be 
deemed to affect the liability of a person under paragraph (1) or (2) 
of section 107(a).
    ``(h) Regulations.--The Administrator has the authority, under 
section 115, to promulgate additional regulations concerning this 
section.
    ``(i) Effect on Pending or Concluded Actions.--The exemptions 
provided in this section shall not affect any concluded judicial or 
administrative action or any pending judicial action initiated by the 
United States prior to enactment of this section.
    ``(j) Liability for Attorney's Fees for Certain Actions.--Any 
person who commences an action in contribution against a person who is 
not liable by operation of this section shall be liable to that person 
for all reasonable costs of defending that action, including all 
reasonable attorney's and expert witness fees.
    ``(k) Relationship to Liability Under Other Laws.--Nothing in this 
section shall affect--
            ``(1) liability under any other Federal, State, or local 
        statute or regulation promulgated pursuant to any such statute, 
        including any requirements promulgated by the Administrator 
        under the Solid Waste Disposal Act; or
            ``(2) the ability of the Administrator to promulgate 
        regulations under any other statute, including the Solid Waste 
        Disposal Act.
    ``(l) Limitation on Statutory Construction.--Nothing in this 
section shall be construed to--
            ``(1) affect any defenses or liabilities of any person to 
        whom subsection (a)(1) does not apply; or
            ``(2) create any presumption of liability against any 
        person to whom subsection (a)(1) does not apply.''
            (2) Technical Amendment.--The table of contents for title I 
        of such Act is amended by adding at the end the following item:

    ``Sec. 127. Recycling transactions.''.
                                 <all>